Dive Brief:
- UnitedHealth Group has entered into a deal to sell its operations in Brazil to a private investor, according to a notice filed with the Securities and Exchange Commission last week.
- When the deal closes — expected in the first half of the year, pending regulatory clearance — UnitedHealth will record a charge of around $7 billion, the health insurance giant said in the filing.
- José Seripieri Filho, founder and former CEO of health insurance company Qualicorp, will buy Amil, which operates hospitals and manges health benefits in Brazil, a UnitedHealth spokesperson told Healthcare Dive.
Dive Insight:
UnitedHealth purchased most of the Amil business, which includes Amil Insurance, Amil Integrated Care, Amil Dental and Americas Hospitals in Brazil, more than a decade ago.
The healthcare behemoth, which operates the largest insurer in the U.S. as well as a major pharmacy benefit manager and a growing care delivery unit, had previously struggled to divest the Brazilian business, according to a Reuters report.
The company didn’t disclose the deal price. A Reuters report, a citing source familiar, said the bid was around $515.2 million.
“We believe this agreement will ensure ongoing success, working with a buyer who has the local knowledge and experience to continue the positive momentum of the business,” a UnitedHealth spokesperson said in a statement.
The $7 billion charge stems from foreign currency translation losses and won’t affect the company’s adjusted earnings outlook, UnitedHealth reported in the regulatory filing. During its investor day in November, the insurer said it expects adjusted profit of $27.50 to $28 a share in 2024.
UnitedHealth will report fourth quarter and full year financial results on Jan. 12.
