Results of 2006 Operations - Part I
Assets
GSIS’ consolidated total assets as of December 2006 amounted to P411.19 billion, P44.19 billion higher than 2005. The marked improvemnt is drawn from the Social Insurance Fund, which posted an increase of P43.21 billion, or a growth of 13 percent from its 2005 level.
The Social Insurance Fund is the source of the social insurance benefits of GSIS’ 1.3 million members, and thus takes up a majority of its consolidated assets.
The Administered Fund, on the other hand, comprises the General Insurance, Employee Compensation, and Optional Life Insurance Funds. By the end of December 2006, the Administered Funds grew to P33.85 billion from P32.88 billion in 2005, or an increase of 3 percent.
These improvements reflect the continuing efforts of the management in pursuing the System’s reforms that have strengthened the viability of both the Social Insurance and Administered Funds, so that all GSIS members will receive their benefits as and when they fall due.
Income
In a year characterized by the full-scale preparation, leading to the aggressive launching of the GW@PS and the eCard Plus, the GSIS turned-in good financial results in the performance of both the Social Insurance and Administered Funds, which yielded combined revenue ofP84.61 billion in 2006.
As a result, GSIS’ consolidated net operating revenues for 2006 was 3 percent higher at P41.56 billion - largely the result of increased investment yields and gains on valuation of investment properties, among others.
Reserves and Surplus
A hefty P38.36 billion increase in consolidated reserves was recorded in 2006, as it rose by 11 percent to P376.09 billion in 2006 from P337.72 billion in 2005. Surplus, on the other hand, totaled P23.29 billion in 2006.
Expenses
Expenses for members’ claims and benefits, insurance, investments, and administrative and operating expenses totaled P43 billion in 2006.
Life and Retirement Benefits
The GSIS paid a total of P21.39 billion for claims and benefits of 169,570 members in 2006. Retirement and survivorship claims made up 77 percent of the total amount paid, or P16.41 billion, benefiting 60,963 members and their dependents.
Regular and optional life insurance claims paid up in 2006 reached P4.98 billion.
Old-Age Pension
Old-age pension disbursed nationwide amounted to P8.24 billion for the 152,606 old-age pensioners being serviced by the System, with average monthly pension of P5,887.60.
Annual Dividends and Cash Gifts
The GSIS paid out a total of P725 million in regular dividends to active members and P554 million in cash gift to pensioners in 2006.
Cash dividends for optional life insurance amounting to P63.21 million were also distributed to 110,424 active members.
All dividends were credited to the eCard account of regular policy holders, who enjoyed the convenience of getting their dividend through ATMs, eliminating the need for over-the-counter check encashment.
Meanwhile, cash gifts were paid to all old-age, retirement and disability pensioners. The cash gift equivalent to one-month basic monthly pension up to a maximum of P10,000.00.- GSIS Annual Report 2006
Results of 2006 Operations - Part II