UnitedHealth Group is in talks to sell its Latin American operations for $1 billion as the company shifts its focus back to the U.S. market. Sources say the health insurance giant has been working to exit the region since 2022, with the sale of Banmedica, one of its major assets, being a key part of the plan. UnitedHealth’s decision to divest from Latin America comes amid a challenging period for the company.
Its shares have dropped by 40% this year, contributing to a broader crisis affecting the firm. The insurer’s expansion efforts in the region have faced significant obstacles, prompting the current strategy to sell off these assets. According to sources, UnitedHealth has received four non-binding bids for Banmedica, which operates in Chile and Colombia.
The interested parties include Acon Investments, Christus Health, Patria Investments, and Auna.
UnitedHealth plans to sell Banmedica
Binding offers are expected to be submitted in July.
The potential sale follows a tumultuous time for UnitedHealth, which has been marked by the abrupt removal of its CEO, reports of a criminal investigation into Medicare billing practices, and the tragic murder of UnitedHealthcare CEO Brian Thompson in December 2024. These events have taken a toll on the company’s financial performance, with shares falling 25.5% in May alone. Despite the challenges, Banmedica remains a profitable entity, generating over $200 million in annual EBITDA and serving more than 2.1 million policyholders.
However, UnitedHealth now considers it non-core to its renewed focus on the U.S. market. The company has already exited Brazil last year and Peru in March, incurring $8.3 billion in charges. BTG Pactual is managing the divestiture process, while UnitedHealth has declined to comment on the matter.
The potential $1 billion deal would mark a significant step in the insurer’s efforts to refocus its operations and stabilize its leadership and financial position.