Vitarich, AXA end insurance dispute with P400-M settlement
LISTED poultry integrator Vitarich Corp. (VITA) secured P400 million from AXA Philippines Life and General Insurance Co. (AXA Philippines) to end a long-running insurance dispute over damages from Typhoon Ondoy in 2009.
In a stock exchange disclosure on Monday, Vitarich said the Dec. 19 settlement is expected to have a material impact on its liquidity and capital resources.
In May 2023, Malolos City Regional Trial Court Branch 15 ruled AXA liable to pay the company P247.62 million in the case. AXA appealed to the Court of Appeals but settled for P400 million — nearly double the court-awarded amount — without admitting fault, in order to avoid prolonged litigation.
“The settlement will provide the company an estimated additional P196 million in net income and P267 million in net cash flow,” the company said.
Vitarich reported a P114.43-million third-quarter net loss for 2025, reversing last year’s P120.56-million net income, mainly due to falling chicken prices that hurt biological asset valuations and limited day-old chick availability in the first half.
The company’s President and Chief Executive Officer, Ricardo Manuel M. Sarmiento, accepted the settlement after board authorization, with standard provisions included.
Vitarich shares rose by 1.85% or 1 centavo to close at 55 centavos apiece on Monday. — Alexandria Grace C. Magno
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