THE Government Service Insurance System (GSIS) reported a net income of Php80 billion for the first 10 months of the year, representing an increase of 117% from the Php37 billion in the same period the previous year.
The improved profitability stemmed from strong revenues mainly in income from financial assets, which surged to Php29 billion, or a 344% increase year on year.
In addition, income from investment property climbed by 142% to Php8 billion from the revaluation gains of approximately 12,000 accounts appraised as of October this year.
Income derived from general insurance activities expanded by 7%, amounting to Php6.2 billion as a result of an active marketing drive. Social insurance premiums grew by 8% to Php10 billion arising from increased membership and salary adjustments.
“We have maintained prudence in our expenses, which totaled Php8.2 billion, marking an 8% reduction compared to the budget set for October 2023,” Veloso pointed out.
“In fact, during the first 10 months of 2023, the pension fund’s expense loading was at 3.4%, way below the 12% Charter limit.”
As of end-October 2023, the total assets of the GSIS stood at Php1.6 trillion, posting a 4.4% increase from last year.
The GSIS has also extended its fund life to 35 years (until 2058), an increase of five years from the last assessment in 2021.
“A longer fund life enables us to fulfill our responsibility of delivering benefits to our members and retirees on time. As a financial institution, our primary focus is to increase the contributions of our members by seizing strategic investment opportunities,” President and General Manager Wick Veloso said.
The GSIS continues to align its investments with the country’s “growth story” focusing on critical sectors like real estate, infrastructure, food, energy, and mining. By the end of the first nine months of the year, the total investment in these domestic sectors amounted to Php1.3 trillion, representing an 11% growth. Global investments witnessed a 5% increase at Php185 billion.
According to Veloso, the “GSIS remains committed to support the four key sectors known as the ‘4Ps’: Pabahay (housing), Power (energy), Pagkain (food), and Pagamot (healthcare).
“These sectors are fundamental to the government’s socio-economic agenda. Investing in them equates to a direct investment in the welfare and future of our nation and the Filipino.” |-BNN
