THE Government Service Insurance System (GSIS) on Thursday said its first-quarter (Q1) net income expanded by 170 percent to P43.6 billion from P16.1 billion a year earlier, driven by strong investment gains and higher insurance contributions.
The state-run pension fund has also hit 33.3 percent of its full-year net income target of P130.91 billion.
The fund’s financial position strengthened during the quarter, even as it increased payments to members and retirees.
“The increase was driven by growth in social insurance contributions, with collections rising on the strength of a growing member base and higher agency remittances,” GSIS President and General Manager Wick Veloso said.
Total income jumped 43.83 percent to P95.8 billion in the January-to-March period from P66.6 billion in the same quarter last year.
Income from insurance operations reached P56.6 billion in Q1, up 9.16 percent from the same period in 2025.
Meanwhile, investment income from financial assets climbed sharply to P27.6 billion from just P1.2 billion a year earlier, supported by gains in equity valuations and favorable foreign exchange movements.
The strong investment performance helped offset higher claims and benefit payments during the quarter.
Total claims and benefits paid to members, pensioners and beneficiaries amounted to P49.5 billion, 4.73 percent higher than the P47.3 billion in the same period last year.
This was due to higher pension disbursements after the average monthly old-age pension rose to P18,874.58 in 2026 from the previous P17,809.10.
Total expenses increased modestly by 3.30 percent to P52.1 billion from P50.5 billion a year earlier, with claims and benefits accounting for 95 percent of overall expenditures.
Administrative expenses covering personnel services and operating costs totaled P2.44 billion, or 4.7 percent of total expenses, and well below the 12-percent ceiling mandated under its charter.
“Administrative costs at 4.7 percent means more than 95 centavos of every peso in expenses went directly to members. That is where it should go,” Veloso said.
Loan operations also contributed significantly to earnings, generating P10.7 billion during the quarter.
Loan disbursements expanded across its Ginhawa loan facilities, including the newly launched Ginhawa Solar Energy Loan program. The solar energy lending facility, which opened applications on March 25 following the declaration of a national energy emergency under Executive Order 110, generated P890 million in applications in its first week of operations.
Total assets stood at P2.0 trillion as of Q1, higher than the P1.96 trillion at the end of 2025.
Asset expansion keeps it on track to exceed its P2.1-trillion target by year-end, GSIS said.
NIÑA MYKA PAULINE ARCEO
