Pension fund Government Service Insurance System said Friday net income in the first half of 2023 jumped 20-fold to P61 billion from P3 billion a year earlier, on strong revenues and improvement in the revenue-to operating expense ratio to 2 percent from 5 percent.
GSIS president and general manager Wick Veloso said in a statement administrative and operational expenses grew by 10 percent, largely on higher claims and benefits.
“Although these expenses have grown, the rate of increase was slower… A key factor in keeping expenses under control has been the careful management of operational costs,” Veloso said.
Administrative and operational expenses declined to 2.6 percent from 4.9 percent a year ago in the first half, well below the legal threshold of 12 percent.
Veloso said the fund life of GSIS 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 said.
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 reached P1.2 trillion in the first six months. Global investments also rose 8 percent to P204 billion.
It said that as of end-June 2023, total assets of GSIS stood at P1.6 trillion, up 8 percent from the level in the same period a year ago.
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.