UnitedHealth (UNH) is set to exit its last South American business, Banmedica, by selling it for $1 billion to Brazilian private equity group Patria Investments. According to sources, the agreement was signed on Saturday, and a formal announcement is expected on Monday, December 1. The sale of Banmedica marks the private health insurer’s complete exit from South America, as part of its strategic refocus on North American operations.
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Banmedica operates in Colombia and Chile, serving over 1.7 million health insurance plan members and owning seven hospitals and 47 medical centers as of June 2025. The decision to exit Latin American markets came after UNH recorded an $8.3 billion charge in 2024, $7.1 billion from Brazil and $1.2 billion from Banmedica, due to sales declines and foreign currency impacts. Year-to-date, UNH stock has declined 33.7%.
UNH’s Turnaround Efforts Take Shape
UnitedHealth is working to win back investor and customer confidence amid numerous challenges, including the December 2024 murder of former CEO Brian Thompson, rising medical costs, and a federal inquiry. Stephen Hemsley was reinstated as CEO in May 2025; he previously led the company from 2006 to 2017.
Hemsley has launched a strategic turnaround at UnitedHealth, with some initiatives showing progress. UNH lifted its full year Fiscal 2025 forecast during its Q3FY25 earnings announcement. The insurer aims to resume growth in 2026 and strengthen its trajectory through 2027. UnitedHealth began divesting its South American units in 2022 due to currency risks and regulatory challenges, starting with exits from Brazil and Peru.
Is UNH Stock a Buy, Hold, or Sell?
Analysts remain optimistic about UnitedHealth’s long-term outlook. On TipRanks, UNH stock has a Strong Buy consensus rating based on 17 Buys, three Holds, and one Sell rating. The average UnitedHealth price target of $393.95 implies 19.5% upside potential from current levels.
