GSIS bares P46.42-billion net income in 2008

MANILA, Philippines – The Government Service Insurance System (GSIS), the state-owned pension fund for government employees, reported yesterday that its income from loans and investments went up by 30.39 percent to P46.42 billion in 2008 from P35.6 billion recorded in 2007, GSIS data showed.

The state pension fund attributed the increase to the prudent investment strategies last year.

Earnings from investments alone grew by 94.20 percent to P28.57 billion last year from the P14.71 billion recorded in 2007.

It likewise improved its income from loans, which stood at P14.18 billion last year, GSIS said.

Investment income contributes significantly to GSIS’ coffers, enabling the state-run pension fund to maintain a healthy actuarial life.

The state-owned pension fund also reported that the net assets of its Social Insurance Fund (SIF), a pool of fund held in trust for social insurance benefits, grew by around 9.46 percent to P442.02 billion last year, from the P403.78 billion in 2007.

GSIS’ net assets will answer for the future claims and benefits of its combined 1.4 million members and pensioners.

GSIS president and general manager Winston Garcia said the pension fund would continue to be prudent on its investments this year, but would keep a diversification strategy that would allow the pension fund to tap other attractive markets.

He said that the agency would continue to invest locally but would remain prudent with its investment decisions.

“We will continue to defy economic challenges and improve our services to our stakeholders,” Garcia added.

The GSIS is the top earning government enterprise to date. It also ranks as the second government enterprise with the biggest asset base.

Its net income jumped 21.35 percent to P50 billion in 2008 from P41.2 billion in 2007.

GSIS attributed its robust earnings to improved member contributions, hefty foreign exchange gains, and the sale of its entire shares in electricity giant Manila Electric Company to food and beverage giant San Miguel Corp.