PASAY CITY -- The Government Service Insurance System (GSIS) reported a net income of P61 billion for the first half of the year, a 20-fold increase from the P3 billion in the same period the previous year.
The marked growth in profitability from January to June 2023 was driven by strong revenues and an improvement in the revenue-to operating expense ratio at 2% from the 5% ratio last year.
Administrative and operational expenses grew by 10%, largely due to the increase in claims and benefits.
"Although these expenses have grown, the rate of increase was slower," GSIS President and General Manager Wick Veloso noted. "A key factor in keeping expenses under control has been the careful management of operational costs."
In the first half of the year, administrative and operational expenses were recorded at 2.6%, down from 4.9% in the same period last year, well below the legal threshold of 12%.
Veloso also announced that the fund life of the pension fund was now at 2058 or 35 years, which was achieved through enhanced data analytics and sustained investment returns.
“A lengthier actuarial life allows us to meet our obligation of providing timely benefits to our members and pensioners. As a financial institution, we focus on growing our members' contributions through strategic investment opportunities,” Veloso explained.
GSIS is showcasing its commitment to the nation's growth story by investing in vital sectors such as real estate, infrastructure, food, energy and mining. Total investment in the domestic sectors has reached Php1.2 trillion for the first half of the year. Global investments also rose 8% to P204 billion.
As of end-June 2023, the total assets of the GSIS stood at P1.6 trillion, posting an 8% increase from last year.
Veloso outlined the GSIS’s future strategies, highlighting an investment approach focused on the 4Ps- Pabahay (housing), Power (energy), Pagkain (food), and Pagamot (healthcare).
"These sectors are at the heart of the government’s socio-economic agenda, and investing in them is an investment in the Filipino people," Veloso said. (GSIS)
