UnitedHealth Group Inc. said in a regulatory filing it has entered into an agreement to sell its operations in Brazil to a private investor.
The company said in a form 8-K filing with the U.S. Securities and Exchange Commission that it expects to record a charge of about $7 billion in connection with the deal. That amount will be excluded from adjusted earnings and the majority is non-cash and due to the cumulative impact of foreign currency translation losses, the filing said.
UnitedHealth Group said in an emailed statement the private buyer is José Seripieri Filho, and the deal encompasses its Amil unit, which includes Amil Insurance, Amil Integrated Care, Amil Dental and Americas Hospitals in Brazil.
“We believe this agreement will ensure ongoing success, working with a buyer who has the local knowledge and experience to continue the positive momentum of the business,” the company statement said. “Our focus remains on serving our customers, supporting our employees, and delivering high-quality care to our patients while regulatory authorities review the proposed transaction.”
The transaction is anticipated to close in the first half of 2024 and is subject to regulatory and other closing conditions.
In connection with the action, UnitedHealth’s 2024 net earnings outlook will be impacted by the expected charge and the company said it is confirming the 2024 adjusted earnings outlook discussed at its Nov. 29 investor conference.
UnitedHealth Group Inc. is closely watching regulatory changes in Medicare and Medicaid as it recorded 14% revenue growth in the third quarter, said its chief executive officer in October. Market changes including regulatory issues require agility and adaptability for the group, CEO Andrew Witty said in an October conference call.
Underwriting entities of UnitedHealth Group Inc. have current Best’s Financial Strength Ratings of A+ (Superior) and A (Excellent).