GSIS net income up 70% to P113 billion in 2023

The Government Service Insurance System reported a 70% increase in its net income for the past year amid a significant growth in its equity holdings and fixed income portfolio during the period.

The GSIS said its net income rose to P113.3 billion from P66.4 billion in 2022, while its total comprehensive income jumped to P143.4 billion from P3.6 billion as its revenues increased by 33% to P311.3 billion from P234.9 billion.

GSIS said its equity holdings saw a P8.2-billion mark to market growth in 2023 versus the P37.4-million loss in 2022, while its accumulation of 3.6 billion shares in Metro Pacific Investments Corp. (MPIC) resulted in a one-time gain of P13.6 billion.

It also added a $300-million investment in the Global Infrastructure Partners Emerging Markets Fund during the period, which it said reflected its focus on leverage opportunities in the private equity market.

In terms of loans, GSIS said its multipurpose loan segment saw a growth to P209.6 billion from P157.7 billion the previous year, as the agency launched its MPL Flex retail loan, along with revisiting the granting of corporate loans and project finance transactions.

The GSIS also reported a record-high P9.8 billion in gross premiums written for its non-life insurance business in the past year, marking a 44% increase from P6.8 billion in 2022. Its net worth stood at P51.26 billion.

Other comprehensive income, excluding the remeasurement on insurance and contract reserves, increased to P30 billion. This marks a P93-billion increase, which includes P57 billion from mark-to-market gains on the back of high-interest rate peso-denominated fixed income products.

“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 and real estate,” President and General Manager Jose Arnulfo “Wick” Veloso said in an emailed statement.

“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,” he added.

Under its charter, the GSIS is mandated to ensure that its members are insured against the occurrence of certain contingencies in exchange for their monthly premium contributions. They are entitled to benefits such as life insurance, separation or retirement benefits, and disability benefits.

It is also the administrator of the General Insurance Fund, providing insurance coverage to government assets and properties that have government-insurable interests. — DVM, GMA Integrated News