UnitedHealth Group, the largest health insurer in the USA, has announced plans to sell its Brazil business to a private investor. According to a filing with the US Securities and Exchange Commission (SEC), this transaction will impact the company's net income by seven billion dollars. The sale is expected to be completed in the first half of 2024.

In pre-market trading on the New York Stock Exchange, the stock rose slightly. However, the upcoming burdens have no impact on the outlook, which was released in November for the adjusted earnings in 2024. These are considered as exceptional effects and are excluded. According to company statements, it is mostly a non-cash amount of around 6.3 billion euros, resulting from exchange rate differences.

UnitedHealth Group did not disclose the name of the buyer in their statement. However, according to Brazilian media reports, the company has already agreed to sell to Brazilian businessman Jose Seripieri Filho last week.

Previously, Bloomberg also reported that another Brazilian businessman and the investment company Bain Capital have made an offer to the insurer. The stock of UnitedHealth temporarily rose 0.34 percent to $526.71 in trading on the NYSE.

The sale of the Brazil business is part of UnitedHealth's strategy to divest from non-core business areas. The company has recently also sold its subsidiaries in Argentina and Chile. In the first nine months of the current fiscal year, UnitedHealth has generated a total revenue of $112.5 billion, an increase of 14 percent compared to the previous year period.

The insurer emphasizes that the sale will not have any impact on the existing offers in Brazil, and that customers will continue to receive the usual quality and services. The sale of the business is part of UnitedHealth's efforts to focus on its core health insurance business in the USA and improve efficiency.

The UnitedHealth Group is one of the largest and most profitable health insurers in the world and dominates the market in the USA. However, the sale of its Brazil business shows that the company is reconsidering its strategy and is not hesitant to divest itself from unprofitable business segments. Investors will be eagerly awaiting how this move will impact UnitedHealth's future performance.