UnitedHealth agrees to sell South American business to private equity firm Patria for $1 billion, sources say

By Tatiana Bautzer

NEW YORK, Nov 30 (Reuters) - UnitedHealth Group UNH.N has agreed to sell its last South American business Banmedica to Brazilian private equity group Patria Investments PAX.O for $1 billion, two sources with knowledge of the matter said on Sunday.

The final agreement was signed on Saturday and an announcement is expected on Monday, the sources added, asking for anonymity to disclose private talks.

UnitedHealth has been trying to exit Latin America since 2022 and had previously sold its businesses in Brazil and Peru.

The sale of Banmedica, which currently operates in Colombia and Chile, has been under discussion for almost a year.

Patria and UnitedHealth did not immediately reply to requests for comment on Sunday. Banmedica had 1.7 million health insurance plan members, seven hospitals and 47 medical centers as of June, after its divestment from Peru.

The exit from the region reduces one more distraction from the turnaround efforts led by CEO Stephen Hemsley. UnitedHealth raised its annual profit forecast in October and said it aims for a return to growth in 2026 that should accelerate in 2027.

Hemsley returned as CEO in May after leading the company from 2006 to 2017 and has been working to regain investor and consumer trust after a difficult period for UnitedHealth that included the murder of a top executive, an unexpected surge in medical costs and a federal probe.

He was brought in as a part of a management shakeup after the company's first earnings miss in over a decade in April.

UnitedHealth booked an $8.3 billion loss last year related to the sale of its South American operations, $7.1 billion stemming from the Brazil exit and $1.2 billion from Banmedica.

(Reporting by Tatiana Bautzer; Editing by Chris Reese)

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