HEALTHIER FUND. Government Service Insurance System (GSIS) president and general manager Jose Arnulfo "Wick" Veloso reports on Friday (Aug. 18, 2023) the State pension fund's financial highlights for the first half of 2023. In his report, Veloso announced that the GSIS earned a net income of PHP61 billion, a 20-fold increase from the same period last year which was only at PHP3 billion. (PNA photo by Wilnard Bacelonia)
MANILA – The Government Service Insurance System (GSIS) reported on Friday a net income of PHP61 billion for the first half of the year, a 20-fold increase from the PHP3 billion in the same period the previous year.
GSIS president and general manager Jose Arnulfo "Wick" Veloso said 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 percent from the 5 percent ratio last year.
"Our first half performance shows enhanced revenue generation and operational efficiencies, marked by growth in key business areas, including General Insurance, Real Estate, and Investments," Veloso told reporters.
While expenses have grown to 10 percent, Veloso said the rate of increase was slower.
"Administrative and operational expenses were recorded at 2.6 percent, down from 4.9 percent in the same period last year, well below the legal threshold of 12 percent," he said.
The total assets of GSIS stood at PHP1.6 trillion as of June 30, an 8 percent increase from last year.
Investments in the domestic sector also increased PHP1.2 trillion while global investments grew by 8 percent or PHP204 billion.
Veloso also attributed the development to the operational efficiencies of the GSIS general insurance, digitalization rate, and expanded payment platforms.
Through enhanced data analytics and sustained investment returns, GSIS also successfully extended its fund life by another five years or until 2058.
“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.
One of the State pension fund's focus in the coming years, Veloso said, will be maximizing real estate value through the Pambansang Pabahay Program and joint ventures on select big-ticket assets.
Revenue generation will also be aligned by investing in "promising," growth-oriented sectors that are in sync with national development as well as empowering its employees and members by providing enhanced loan products and medical insurance.
Veloso said GSIS is committed to invest in sectors integral to the government's socio-economic agenda namely, housing, energy, food, and healthcare.
As of July 31, GSIS recorded 2 million members and 586,791 pensioners who are being served through 42 branch offices, 15 extension offices, and 131 service desks with a total of 14,469 agency authorized officers and 12,397 electronic remittance file handlers.
There are also 933 GSIS kiosks throughout the country and its mobile app GSIS Touch now has 855,668 users. (PNA)
