UnitedHealth Group sells Brazil business: financial expert analyzes impact
UnitedHealth Group, the largest health insurance company in the United States, is selling its Brazil business to a private investor. The deal will add around $7 billion to net income and the sale is expected to close in the first half of 2024. The share rose slightly in pre-market US trading. According to a report from www.finanzen.net, the high charges do not change the outlook for the adjusted earnings expected in 2024 published in November, as they are considered special effects and are excluded. To a large extent, the sum of around 6.3 billion euros is non-cash and is caused by exchange rate effects, it said. The buyer's name covered...

UnitedHealth Group sells Brazil business: financial expert analyzes impact
However, the high burdens do not change the outlook for the adjusted earnings expected for 2024 published in November, as they are considered special effects and are excluded. To a large extent, the sum of around 6.3 billion euros is non-cash and is caused by exchange rate effects, it said. The company did not reveal the name of the buyer in its announcement, but reports in Brazilian media last week named Brazilian entrepreneur Jose Seripieri Filho as a potential buyer. In addition to him, according to an earlier Bloomberg report, another private businessman from Brazil and the investment company Bain Capital are said to have made an offer to the insurer.
UnitedHealth shares ultimately gained 0.36 percent to $526.78 in NYSE trading on Friday.
UnitedHealth Group's decision to sell its Brazil business could have several market, consumer and industry impacts. On the one hand, the sale could lead to the company focusing more on its core business in the USA, which could have a long-term positive impact on US healthcare and insurance offerings there. Additionally, the sale could lead other health insurance companies to consider similar strategies, which could lead to consolidation in the industry. This could in turn have an impact on competition and the prices of insurance services. In terms of share prices, the sale of the Brazil business could cause short-term fluctuations, but in the long term it could strengthen the company's financial position, which could have a positive impact on long-term share value.
Read the source article at www.finanzen.net