UnitedHealth's headquarters in Minnetonka, Minnesota. Photo: Mike Bradley/Bloomberg
UnitedHealth Group has reached an agreement to sell its last remaining South American business, several sources reported. Patria Investments, a Brazilian private equity group, will purchase Banmedica for $1 billion. The company, which operates in Chile and Colombia, covers 1.7 million health insurance plan members and manages a network of seven hospitals and 47 medical centers.
The transaction completes UnitedHealth’s efforts since 2022 to exit is South American ventures. It purchased Banmedica in Chile in 2018 for $2.8 billion as part of a global expansion plan. Although former CEO David Wichmann at the time described the deal as a foundation for decades of growth, financial challenges led the company to reverse course.
UnitedHealth previously sold its businesses in Brazil and Peru. It recorded an $8.3 billion loss last year related to the sale of its South American operations, $7.1 billion resulting from the Brazil exit and $1.2 billion from Banmedica. The Banmedica sale had been under discussion for almost as year as UnitedHealth weighed valuation expectations and regulatory considerations across multiple jurisdictions. In June, it reportedly had four nonbinding bids for Banmedica and was looking to sell it for about $1 billion.
Patria Investments encompasses six product lines, including private equity, infrastructure, credit, public equities, real estate and global private markets solutions, according to the company website. It seeks to provide global and Latin American investors with investment products that allow for portfolio diversification and consistent returns.
The sale comes as CEO Stephen Hemsley focuses on turning the company around financially after several setbacks, including an unexpected surge in health care costs and a federal probe. UnitedHealth recently revised its annual profit forecast for 2025, raising its outlook to reflect net earnings of at least $14.90 per share and adjusted net earnings of at least $16.25 per share. Third-quarter results reflect the continued execution of its performance agenda, refocus on its mission and culture, and return to sustained growth, the company said.
“We remain focused on strengthening performance and positioning for durable and accelerating growth in 2026 and beyond,” Hemsley said, “and our results this quarter reflect solid execution toward that goal.”
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