UnitedHealth Exits South America With Banmedica Sale

UnitedHealth Group Incorporated (NYSE:UNH) is included among the 12 Best Dogs of the Dow to Invest in.

In a latest development, UnitedHealth Group Incorporated (NYSE:UNH) has agreed to sell Banmedica, its last remaining business in South America, to Brazilian private equity firm Patria Investments. The deal is valued at $1 billion.

This has been a long time coming. UnitedHealth Group Incorporated (NYSE:UNH) has been working its way out of Latin America since 2022. It already sold operations in Brazil and Peru. Banmedica, which operates in Colombia and Chile, was the final piece. Talks around this sale have been going on for close to a year.

As of June, Banmedica served about 1.7 million health insurance members. It also ran seven hospitals and 47 medical centers, after exiting Peru earlier. The exit clears another hurdle for CEO Stephen Hemsley, who has been focused on getting the business back on track.

In October, UnitedHealth raised its annual profit forecast and said it expects growth to return in 2026, with momentum building in 2027. The retreat hasn’t been cheap. Last year, the company booked an $8.3 billion loss tied to its South American exits. About $7.1 billion came from Brazil, with another $1.2 billion linked to Banmedica.

UnitedHealth Group Incorporated (NYSE:UNH) is an American company that operates mainly through two units, UnitedHealthcare and Optum, covering insurance, care delivery, data, and health services at scale.

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