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GSIS posts Php84B Net Income in first 11 mos of 2017, up 52%

Date Posted: January 17, 2018
State pension fund Government Service Insurance System (GSIS) posted a net income of Php84.15 billion from January to November 2017, representing a 52.52% growth, over the Php55.17 billion registered for the same period last year.

GSIS’s total assets rose 8% for the first 11 months of 2017 keeping it well above the Php1 trillion mark at Php1.09 trillion. The growth was driven by Income from Financial Assets which doubled to Php52.12 billion on the back of the robust performance of financial markets.

Revenues earned from Insurance also grew 11.20% beefed up by increased social insurance contributions as the number of contributing members rose to 1,707,795 as of November 2017.

On expenditures, GSIS paid more than Php85 billion in social insurance claims and benefits in the first 11 months last year, representing a 13% increase compared to the Php75.1 billion in the same period the prior year.

In particular, from higher disbursements for monthly old age pension of Php7.5 billion covering 316,323 pensioners; survivorship amounting to Php338.17 million for 132,449 pensioners; and life insurance and retirement claims of Php616.2 million and Php980.2 million, respectively.

In sum, social insurance contributions still exceeded claims and benefits by Php 7.84 billion.

Income generated from Loans slightly went up 3.8% to reach Php22.49 billion. Active loan accounts as of November 2017 climbed to 1.2 million 1,190,845 from last year’s 720,342.

As of November 30, 2017, the pension fund’s assets are 62% invested in financial assets, 24% in loans to GSIS members, 6% in investment properties, 4% in cash, and 4% in property, equipment and other assets.

President and General Manager Jesus Clint Aranas said that “as always, the key challenge for GSIS is to sustain the growth in our funds through investment returns, so we can provide for the benefits of our members and pensioners, as and when they fall due.”

“While this is becoming more difficult in the current environment of low interest rates in global and domestic fixed income markets, I assure our stakeholders that GSIS is well-equipped to meet this challenge given our sound investment policy and capable investment team.”