UnitedHealth selling Brazil insurance, hospital business to private investor 

UnitedHealth Group will sell its health insurance and hospital operations in Brazil to a private investor for an undisclosed amount, the company said in regulatory documents filed Dec. 29.

The deal is expected to close in the first half of 2024, subject to regulatory approvals. UnitedHealth said it expects to record a $7 billion charge as a result of the deal, which will be excluded from its adjusted earnings. The majority of the charge is non-cash and due to the cumulative impact of foreign currency translation losses. In addition, the company’s 2024 net earnings outlook will be impacted by the expected charge, but it reaffirmed its 2024 adjusted earnings outlook.

UnitedHealth purchased the unit, called Amil Participacoes SA, in 2012 for $4.9 billion, according to Bloomberg. The company has been trying to offload its Brazilian assets since 2022 due to growing losses in individual health plans.  

Amil includes more than 5 million health and dental plan members, along with a network of hospitals and clinics that employ more than 20,000 people.

UnitedHealth's operations outside of the U.S. have not been a focus of the company's presentations to investors for years. Its international businesses represented less than 3% of its total revenue in 2022.

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