Vitarich Corp. said Monday it signed a P400-million compromise agreement with AXA Philippines Life and General Insurance Corp to settle a long-running dispute stemming from damages incurred during Typhoon Ondoy in 2009.
The settlement is expected to boost the capital resources of the poultry and feeds producer by providing some P196 million in additional net income and about P267 million in net cash flow. The agreement took effect on Dec. 19, 2025.
Vitarich said in a disclosure to the stock exchange the deal concludes a legal battle that has been pending for more than 10 years. The case, originally filed against Charter Ping An Insurance Corp. before it became part of AXA Philippines, reached a milestone on May 31, 2023, when a regional trial court in Malolos City ruled the insurer was liable for P247.62 million in damages.
AXA Philippines appealed that decision to the Court of Appeals. However, the insurer opted to settle for the P400-million sum to avoid a prolonged legal process without admitting fault or liability.
Vitarich president and chief executive Ricardo Manuel Sarmiento approved the agreement after receiving authorization from the board of directors. The settlement contains customary provisions typical of such legal resolutions.
Vitarich is a major agricultural company owned by the Sarmiento family. AXA Philippines is a joint venture between the France-based AXA Group and GT Capital Holdings Inc. led by the Ty family.
