AXA Philippines has resolved a long-running insurance dispute with Vitarich Corp. through a P400 million compromise agreement arising from Typhoon Ondoy losses in 2009.
According to Manila Standard’s report, Vitarich said it signed the settlement agreement with AXA Philippines, effective Dec. 19. The case originated as a claim against Charter Ping An Insurance Corp., which was later absorbed into AXA Philippines. The dispute reached a significant stage on May 31, 2023, when the regional trial court in Malolos City ruled that the insurer was liable for P247.62 million in damages related to the Ondoy incident. AXA Philippines appealed the decision to the Court of Appeals but later chose to conclude the matter through a negotiated compromise. According to Vitarich, AXA Philippines agreed to settle for P400 million “to avoid a prolonged legal process.” The agreement provides that AXA Philippines does not admit fault or liability and includes standard provisions commonly seen in compromise settlements.
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The settlement was approved by Vitarich president and chief executive Ricardo Manuel Sarmiento after authorisation from the company’s board of directors. Vitarich is controlled by the Sarmiento family, while AXA Philippines operates as a joint venture between France-based AXA Group and GT Capital Holdings Inc., the Ty family’s conglomerate. For insurers and reinsurers in Asia, the case adds to experience on catastrophe-related commercial claims in the region, particularly regarding court processes, appeals, and the use of late-stage settlements to close long-outstanding exposures.
Vitarich said the settlement is expected to affect both earnings and cash flow. The company disclosed that the agreement is projected to add about P196 million to net income and generate approximately P267 million in net cash flow. The resolution comes after the company reported its 2024 results. For that year, Vitarich posted revenues of ₱12.539 billion, net income of ₱216.6 million, and earnings per share of ₱0.071. Revenues were slightly higher than the previous year’s level, with the foods segment reflecting increased exposure to modern trade channels and institutional customers, as well as a recovery in chicken prices. The feeds segment remained constrained as the hog population continued to be affected by African Swine Fever.
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Vitarich reported that gross profit increased 66.2% to ₱1.504 billion in 2024, while cost of goods sold declined 4.8% to ₱11 billion amid roughly 10% lower raw material prices. Operating profit rose to ₱397.8 million, with administrative and selling expenses higher due to expansion of distribution channels and e-commerce initiatives. The company said all business segments were profitable during the year.
The Philippine settlement takes place as AXA reports higher revenues and a higher capital ratio at group level, figures that may be relevant to counterparties and cedants in Asian markets. For the first nine months of 2025, AXA said gross written premiums and other revenues increased 7% to 89.4 billion euros. Property and casualty premiums rose 5% to 46.2 billion euros, while life and health premiums were up 9% to 42.3 billion euros. The group’s Solvency II ratio stood at 222%, 2 percentage points higher than at the end of the first half of 2025. “This performance reflects consistent execution of our organic growth strategy across all business lines and geographies,” said group chief financial officer Alban de Mailly Nesle.
de Mailly Nesle said property and casualty revenue growth was distributed across AXA XL’s large and specialty risks, small and medium-sized risks in France and Europe, and personal lines. Commercial lines revenues increased 4%, supported by higher volumes and continued price increases in small and medium-sized commercial business, while personal lines revenues grew 7%, supported by an increase in customer numbers. In life and health, AXA reported 9% premium growth, with life premiums up 11% driven by protection and savings products and resulting in positive net flows. Health revenues rose 5%, which AXA linked to pricing measures.
The Typhoon Ondoy case, which arose from a 2009 loss event and was resolved only in late 2025, shows how commercial property and business interruption disputes in the region can remain open for extended periods. This has implications for reserving practices, legal cost management, and client communication for carriers writing agribusiness and commercial lines in Southeast Asia.
