THE GOVERNMENT Service Insurance System (GSIS) saw its net income surge by 70% in 2023 amid higher revenues.
GSIS’ net profit stood at P113.3 billion last year, up from P66.4 billion in the previous year, while its comprehensive income grew by almost 40 times or 3,903% to P143.4 billion from P3.6 billion, it said in a statement on Monday.
The higher net earnings came amid a 33% increase in its revenues to P311.3 billion from P234.9 billion.
“GSIS remains to be strong as we continue to search for yield to boost its generation of revenue. To this end we have increased focus on alternative investment including PE (private equity) and real estate,” GSIS President and General Manager Jose Arnulfo A. Veloso said.
“We continue to push and do our best to boost long-term profitability of the GSIS and support the overall economy. We strive to establish a diversified portfolio by securing new investment opportunities. Our risk profile has remained balanced with our fixed income having extended its average tenor to 7.8 years while maintaining average yield at 7.3% in a climate of declining rates,” he added.
The state-run pension fund saw a mark-to-market gain of P8.2 billion in 2023 versus the P37.4-billion loss in 2022 amid steady interest rates.
“Additionally, management’s strategic move in accumulating 3.6 billion MPIC (Metro Pacific Investments Corp.) shares resulted in a one-time gain of P13.6 billion,” GSIS said.
GSIS also invested $300 million in the Global Infrastructure Partners Emerging Markets Fund this year.
Meanwhile, its multipurpose loans (MPL) rose by 51.9% year on year to P209.6 billion from P157.7 billion following the launch of MPL Flex.
“The GSIS also revisited the granting of corporate loans and project finance transactions,” it added.
Meanwhile, gross premiums written rose by 44% to a record P9.8 billion. GSIS is the largest nonlife insurer in the country with a net worth of P51.26 billion.
Social insurance premiums increased by 17% to P177 billion. GSIS paid P166 billion in pension and other benefits last year, up from P157 billion in 2022.
Other comprehensive income grew by 148%.
“Of the P93-billion increase in other comprehensive income, P57 billion or 62% is attributed to the mark-to-market gains of the GSIS’ holdings of peso-denominated Treasury bonds. This is driven by the investment of GSIS in high-interest rate peso fixed-income products amid favorable market conditions,” it said.
“Now, the GSIS has been strategic in its purchases of government bonds, ensuring that the weighted average coupon rate of its government portfolio remains at 7.294% by end of the year.”
GSIS’ total assets increased by 11% to P1.7 trillion. — AMCS