GSIS 2017 net profit rises 69% on investment gains

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THE Government Service Insurance System headquarters in Pasay, Philippines. Photo taken on May 28, 2012. — BW FILE PHOTO

THE Government Service Insurance System (GSIS) said net profit rose 69% in 2017 due to the performance of its financial investments.

In a statement issued Friday, the state pension fund said its net profit was P94.7 billion in 2017 after earnings from financial assets from financial assets nearly doubled to P59.1 billion.

The gains were realized chiefly from the change in valuation of traded stocks worth P37.3 billion, reversing the P516.2-million decline in value recorded in 2016.

Income from insurance rose to P107.2 billion, up 10%, supported by contributions of its members.

GSIS had 1.71 million members at the end of 2017.

Revenue from loans amounted to P24.6 billion, up 5% from a year earlier.

The pension fund for government employees paid out nearly P94 billion in social insurance claims and benefits, up 8%.

Monthly old-age pension payouts rose P5.21 billion, with GSIS paid 309,308 pensioners at an average of P11,863.86 a month, more than the 298,456 pensioners in 2016 averaging P11,445.75.

Payouts associated with survivorship benefits amounted to P382.8 million in 2017, involving 92,055 members an an average monthly payment of P3,491.10. The 2017 total was down from the 128,497 members in 2016 averaging P3,393.33 monthly.

GSIS processed more life insurance claims worth P377.3 million covering 92,055 members in 2017, as well as retirement claims worth P910.9 million for 37,871 retirees last year.

GSIS assets total P1.1 trillion in 2017, up 9%.

GSIS President and General Manager Jesus Clint O. Aranas said that the focus of the pension fund is to “plug financial leakages to guard the returns and manage our expenses to generate savings.”

“We are also diversifying our investments to improve the returns of our portfolio. It is never good to put all our eggs in one basket,” Mr. Aranas was quoted as saying in the statement.

Earlier this month, GSIS said it is evaluating external fund managers applying to manage $800 million worth of its investments.

It is also committing $300 million to a fund vehicle to finance private infrastructure projects in Asia. — Karl Angelo N. Vidal