Latest news with #Banmedica
Time of India
2 hours 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.
Yahoo
8 hours ago
- Business
- Yahoo
UnitedHealth (UNH) Eyes $1 Billion Exit From Latin America Amid Crisis Fallout
UnitedHealth Group (UNH, Financials) is pursuing a $1 billion divestiture of its Latin American unit Banmedica as the U.S.-based insurer retreats from international markets and works to stabilize its leadership and operations, sources told Reuters. Warning! GuruFocus has detected 4 Warning Sign with UNH. The company has received four non-binding bids for Banmedica, which operates in Chile and Colombia. Interested parties include Acon Investments, Christus Health, Patria Investments (PAX, Financials), and Auna. Binding offers are expected in July. The move follows a series of blows to UnitedHealth, including a surprise CEO ouster, a reported criminal probe into Medicare billing practices, and the December 2024 murder of UnitedHealthcare CEO Brian Thompson. Shares are down 40% year to date, including a 25.5% drop in May alone. Banmedica, acquired in 2018, remains profitable with more than $200 million in annual EBITDA and over 2.1 million policyholders. However, it is seen as non-core amid UnitedHealth's renewed U.S.-centric strategy. The group exited Brazil last year and Peru in March, incurring $8.3 billion in charges. The divestiture is being managed by BTG Pactual. UnitedHealth declined to comment. 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
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Business Standard
12 hours ago
- Business
- Business Standard
UnitedHealth may sell Latin America arm for $1bn to refocus on US: Report
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 US 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 per cent in May alone, and year-to-date are down 40 per cent. 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: Acon Investments (Washington, D.C.-based private equity firm) Patria Investments (São Paulo-based private equity firm) Christus Health (Texas non-profit health firm) Auna (Lima-based healthcare and insurance provider, in talks with a financial partner) Banmedica's annual earnings before income taxes, depreciation and amortisation (EBITDA) is more than $200 million a year. Patria and Christus Health declined to comment. UnitedHealth, Acon, and Auna did not respond to requests for comment. UnitedHealth bought Banmedica in 2018, with then-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 handles around 4 million patient visits annually across its network of 13 hospitals and 143 medical centres. 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.
Reuters
16 hours ago
- Business
- Reuters
Exclusive: UnitedHealth eyes $1 billion deal to exit Latin America as insurer refocuses on US, sources say
NEW YORK, June 9 (Reuters) - UnitedHealth Group (UNH.N), opens new tab 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 as CEO, who had been in the post for only a matter of months following the murder of his predecessor, Brian Thompson, in New York in December while on his way to a meeting with investors. 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 (PAX.O), opens new tab; Texas non-profit health firm Christus Health; and Lima-based healthcare and insurance provider Auna (GZ4.F), opens new tab, 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, is more than $200 million a year. Patria and Christus Health declined to comment. UnitedHealth, Acon and Auna did not respond to requests for comment. UnitedHealth bought Banmedica in 2018, opens new tab, with CEO David Scott 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 ( opens new tab is advising UnitedHealth on the sale.
Yahoo
16 hours ago
- Business
- Yahoo
Exclusive-UnitedHealth eyes $1 billion deal to exit Latin America as insurer refocuses on US, sources say
By Tatiana Bautzer and Sabrina Valle NEW YORK (Reuters) -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 as CEO, who had been in the post for only a matter of months following the murder of his predecessor, Brian Thompson, in New York in December while on his way to a meeting with investors. 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, is more than $200 million a year. Patria and Christus Health declined to comment. UnitedHealth, Acon and Auna did not respond to requests for comment. FAILED EXPANSION PLANS UnitedHealth bought Banmedica in 2018, with CEO David Scott 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.
