GSIS net income climbs 21% to P135.7 billion in 2024

THE GOVERNMENT Service Insurance System’s (GSIS) net income from operations climbed by 21% to P135.7 billion in 2024 from P112.1 billion in 2023.

“Total income increased to P326.86 billion, a 10.29% rise year on year, fueled by strong returns on investments and insurance operations,” GSIS said in a statement on Monday.

Gains from its investments included P13.27 billion from foreign exchange, P11.24 billion from global private equity investments through external fund managers, and P3.09 billion from local equity investments, it said.

“We maintain a prudent investment strategy, allocating 70% of our portfolio to government securities and other fixed-income instruments. The remaining 30% is strategically placed in higher-yielding investments, including equities, real estate, and other vehicles, all managed within our strict risk parameters,” GSIS President and General Manager Jose Arnulfo A. Veloso said.

“This balanced approach ensures both stability and growth, supporting our fund life, which extends until 2058.”

It added that its insurance business showed “significant strength” last year, with gross premiums written reaching P10.6 billion, above its P8.5-billion target.

“The organization maintains its position as the largest state insurer, boasting a net worth of P62 billion,” GSIS said.

It also disbursed P179.92 billion in claims and benefit payments.

Meanwhile, administrative expenses went down to P8.92 billion in 2024 from P10.14 billion a year prior. “This improved the administrative cost ratio from 3.7% to 3%, even as GSIS successfully filled 91% of its authorized positions,” GSIS said.

The state-run pension fund’s assets expanded by 9.23% to P1.83 trillion at end-2024. Its financial assets went up by P101.6 billion, while cash and cash equivalents rose by P30.54 billion, it said.

Total loans to GSIS members grew to P370.65 billion in 2024, with a 98.6% loan collection efficiency as of the third quarter.

It disbursed P315 billion in loans to 1.5 million members through its Multi-Purpose Loan (MPL) Flex and Lite programs.

“Beyond the numbers, these programs represent our commitment to provide support at critical moments. Whether it is helping fund a child’s education, addressing urgent medical needs, or ensuring financial stability during challenging times, these loans make a real difference,” Mr. Veloso said.

Meanwhile, it also extended P2.84 billion in assistance via its housing initiatives like the Lease with Option to Buy program.

“The GSIS remained strongly committed to improve lives in 2024… With prudent financial management and strategic investments, the GSIS remains in a strong position to fulfill its mandate, securing the future of its members while strengthening its role in the national economy,” the state pension fund for government workers added. — A.M.C. Sy