Vitarich Corp., a listed poultry company, has sealed a P400-million settlement with AXA Philippines Life and General Insurance Corporation, ending a 15-year legal battle over insurance claims tied to damages from Typhoon Ondoy in 2009.
Vitarich told the Philippine Stock Exchange that the two parties entered into a compromise agreement to resolve civil case, originally filed against Charter Ping An Insurance Corp., now AXA Philippines. The case covered losses the poultry producer sustained during the historic flooding that battered Luzon.
The Regional Trial Court of Malolos City, Branch 15, ruled on May 31, 2023 that AXA was liable to pay Vitarich P247.62 million. The insurer appealed the decision to the Court of Appeals but later opted to settle the case to avoid a prolonged legal process. Without admitting liability, AXA agreed to a higher settlement amount of P400 million.
The compromise agreement was accepted by Vitarich President and Chief Executive Officer Ricardo Manuel M. Sarmiento, who was authorized by the company’s board of directors to finalize the deal. The settlement, which contains standard provisions, takes effect on December 19, 2025.
Vitarich said the payout is expected to have a material impact on its liquidity and capital resources, providing a significant boost to the company’s financial position. The settlement adds balance sheet strength as the company continues to navigate operating challenges and pursue recovery and growth initiatives.
The deal brings long-awaited closure to a dispute that has dragged on for more than a decade, highlighting both the lasting financial impact of extreme weather events and the costs of drawn-out litigation.
For Vitarich, the agreement not only ends a lingering legal overhang but also delivers fresh capital, turning a long-standing claim into a tangible financial win.
