Latest news with #Banmedica
Yahoo
14 hours ago
- Business
- Yahoo
UnitedHealth Eyes $1 Billion Sale of Latin American Unit
UnitedHealth (NYSE:UNH) is weighing bids to sell its loss-making Latin America arm as it grapples with rising costs and leadership turmoil. Under review are four nonbinding offers for its Banmedica subsidiaryoperating in Colombia and Chilewith UnitedHealth targeting roughly $1 billion for the carve-out. Bidders include private equity firms Acon Investments and Patria Investments, nonprofit Christus Health and Peru's Auna. The sale push dates back to 2022 after Banmedica posted over $8 billion in losses, and now carries added urgency amid a 40% UNH stock drop this year. Warning! GuruFocus has detected 4 Warning Sign with UNH. This divestiture follows a turbulent stretch: CEO Andrew Witty's abrupt May departure, suspension of 2025 guidance due to surging medical costs, and news of a DOJ probe into Medicare Advantage that sent shares down 18% in a single day. New CEO Steve Hemsley has pledged to rebuild trust and refocus on core U.S. operations. UnitedHealth expects binding proposals by next month, aiming to funnel sale proceeds toward shoring up its domestic business and easing capital pressures. Why It Matters: Exiting Latin America would remove a division that's hemorrhaged cash, allowing UnitedHealth to prioritize its sizable U.S. footprint amid regulatory scrutiny and cost headwinds. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15 hours ago
- Business
- Yahoo
UnitedHealth Eyes $1 Billion Sale of Latin American Unit
UnitedHealth (NYSE:UNH) is weighing bids to sell its loss-making Latin America arm as it grapples with rising costs and leadership turmoil. Under review are four nonbinding offers for its Banmedica subsidiaryoperating in Colombia and Chilewith UnitedHealth targeting roughly $1 billion for the carve-out. Bidders include private equity firms Acon Investments and Patria Investments, nonprofit Christus Health and Peru's Auna. The sale push dates back to 2022 after Banmedica posted over $8 billion in losses, and now carries added urgency amid a 40% UNH stock drop this year. Warning! GuruFocus has detected 4 Warning Sign with UNH. This divestiture follows a turbulent stretch: CEO Andrew Witty's abrupt May departure, suspension of 2025 guidance due to surging medical costs, and news of a DOJ probe into Medicare Advantage that sent shares down 18% in a single day. New CEO Steve Hemsley has pledged to rebuild trust and refocus on core U.S. operations. UnitedHealth expects binding proposals by next month, aiming to funnel sale proceeds toward shoring up its domestic business and easing capital pressures. Why It Matters: Exiting Latin America would remove a division that's hemorrhaged cash, allowing UnitedHealth to prioritize its sizable U.S. footprint amid regulatory scrutiny and cost headwinds. This article first appeared on GuruFocus.
Yahoo
15 hours ago
- Business
- Yahoo
UnitedHealth Group considers bids to divest Latin American unit
US health insurer UnitedHealth Group is considering multiple bids to offload its operations in Latin America, reported Reuters, citing sources. The insurer has been attempting to divest its Latin American assets since 2022, following losses exceeding $8bn in the region, the report said. The news agency further noted that the urgency to sell its subsidiary Banmedica, which operates in Colombia and Chile, has intensified in recent months due to financial pressures on multiple fronts. The company has already exited its operations in Brazil and Peru and is now focusing on securing a deal for its Colombian and Chilean operations. Currently, UnitedHealth has received four non-binding bids for Banmedica, estimated at around $1bn. The bidding entities are Acon Investments, Patria Investments, Christus Health and Auna from Lima. Auna is reportedly in discussions with a financial partner to strengthen its bid. UnitedHealth acquired Banmedica in 2018, with then-CEO David Wichmann expressing a long-term vision for growth in South America. However, the insurer decided to withdraw from the region three years later due to losses, particularly from its Brazilian operation, Amil. Despite Banmedica being profitable, with earnings before interest, taxes, depreciation and amortisation (EBITDA) of more than $200m, it is deemed too small for UnitedHealth's interests. Brazilian investment bank BTG Pactual is said to be advising UnitedHealth on the sale process. UnitedHealth expects to set a deadline for binding proposals for Banmedica by July, as it seeks to streamline its operations and focus on more profitable markets. The company bounced back to profitability in the first quarter of 2025, with net earnings of $6.4bn, compared with a net loss of $1.2bn in the same period a year ago. Stephen Hemsley took over the role of group CEO from Andrew Witty in May. "UnitedHealth Group considers bids to divest Latin American unit " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
a day ago
- Business
- Yahoo
UnitedHealth Group received multiple bids for Latin American operations
-- UnitedHealth Group (NYSE:UNH) is considering several offers for its Latin American operations, according to a Reuters report on Monday. The move comes as the largest U.S. health insurer faces challenges that include the departure of its CEO and an alleged criminal accounting investigation. The insurer has been attempting to leave Latin America since 2022, with the sale of its Banmedica subsidiary becoming more urgent in recent months due to increasing pressures on multiple fronts, the report said. So far, UnitedHealth has reportedly received four preliminary bids for Banmedica, which operates in Colombia and Chile, with an estimated value of about $1 billion. In May, UnitedHealth's shares dropped 25.5%, and the year-to-date decline stands at 40%. The company withdrew from Brazil in 2023 and from Peru in March 2025. It aims to secure around $1 billion for Banmedica's operations in Colombia and Chile. The company anticipates setting a deadline for final proposals as early as July. The bids reportedly include offers from Washington, D.C.-based private equity firm Acon Investments, Sao Paulo-based private equity firm Patria Investments, Texas non-profit health organization Christus Health, and Lima-based healthcare and insurance provider Auna. The report mentioned that Auna is currently in discussions with a financial partner. Related articles UnitedHealth Group received multiple bids for Latin American operations Tesla shares slip after double downgrade amid Trump feud fallout What are the three big things in markets now? RBC weighs in
Time of India
a day ago
- Business
- Time of India
UnitedHealth eyes $1 billion deal to exit Latin America as insurer refocuses on US, sources say
New York: UnitedHealth Group is weighing multiple bids for its Latin American operations, according to two people with direct knowledge of the matter, as the insurer buckles down after a series of unprecedented missteps that include the ouster of its CEO and a reported criminal accounting probe. The largest U.S. health insurer has been trying to exit Latin America since 2022, but the sale of Banmedica has taken on increasing urgency in recent months as the insurer took hits on multiple fronts, according to one of the people. New CEO Steve Hemsley told shareholders last week that he was determined to earn back their trust after an earnings miss and a Wall Street Journal report that the company was under criminal investigation for alleged Medicare fraud. UnitedHealth has said it was not notified by the Department of Justice and that it stands by the integrity of its operations. Hemsley replaced Andrew Witty just a few months after the murder of the executive Brian Thompson, the CEO of UnitedHealthcare, in New York in December while on his way to a meeting with investors. Witty had been UnitedHealth Group CEO since 2021. The company has four non-binding bids for its Banmedica subsidiary, which operates in Colombia and Chile, for about $1 billion, according to both people, who asked not to be identified because the talks are private. UnitedHealth's shares tumbled 25.5% in May alone and year-to-date are down 40%. UnitedHealth left Brazil in 2023 and Peru in March. It's aiming to get around $1 billion for Banmedica's operations in Colombia and Chile, the people said. The two people said the company expects to set a deadline for binding proposals as soon as July. UnitedHealth received bids from Washington, D.C.-based private equity firm Acon Investments; Sao Paulo-based private equity firm Patria Investments; Texas non-profit health firm Christus Health; and Lima-based healthcare and insurance provider Auna, the people said. Auna is in talks with a financial partner, one of the sources added. Banmedica's annual earnings before income taxes, depreciation and amortization, or EBITDA, are more than $200 million a year. Patria, UnitedHealth Group and Christus Health declined to comment. Acon and Auna did not respond to requests for comment. FAILED EXPANSION PLANS UnitedHealth bought Banmedica in 2018, with CEO David Wichmann saying he was "establishing a foundation for growth in South America for the next decades." At the time, UnitedHealth paid around 12 times Banmedica's EBITDA, according to one of the people. Three years later, the insurer decided to leave Latin America as it grappled with losses in its largest operation in the region, Brazil's Amil, which had been acquired a decade earlier. It divested from its Brazilian operations in late 2023. Banmedica is currently profitable, but is considered too small by UnitedHealth. It serves over 2.1 million consumers through its health insurance programs and has around 4 million patient visits annually across its network of 13 hospitals and 143 medical centers. UnitedHealth booked an $8.3 billion loss last year related to the sale of its South American operations - $7.1 billion stemming from the Brazil exit and $1.2 billion from Banmedica. "These losses relate to our strategic exit of South American markets and include significant losses related to foreign currency translation effects," the company said in a February filing. Brazilian investment bank BTG Pactual is advising UnitedHealth on the sale.
