UnitedHealth Seeks Buyers for Banmedica Amid $8.3B Latin America Exit Loss

UnitedHealth Group (NYSE: UNH) is evaluating multiple bids for its Latin American unit, Banmedica, as it accelerates its exit from the region following major setbacks—including CEO turnover, an earnings miss, and a reported criminal probe. The U.S.’s largest health insurer has been trying to divest its Latin American assets since 2022, after racking up over $8 billion in losses, most of it tied to its Brazil operation.

The urgency to sell Banmedica, which operates in Colombia and Chile, has grown since Steve Hemsley replaced Andrew Witty as CEO in May. Witty stepped down amid mounting scrutiny, and following the December 2024 murder of Brian Thompson, head of UnitedHealth’s insurance unit. The company denies receiving any formal notice of a Department of Justice investigation and maintains confidence in its operations.

Banmedica has attracted four non-binding offers totaling around $1 billion, from Acon Investments (U.S.), Patria Investments (Brazil), Christus Health (U.S.), and Auna (Peru). Auna is reportedly in talks with a financial backer. UnitedHealth aims to finalize binding bids by July, according to insiders.

Despite current profitability—Banmedica reportedly generates over $200 million in annual EBITDA—UnitedHealth views the unit as too small. The company first acquired Banmedica in 2018, envisioning long-term growth across South America. However, its regional strategy unraveled, with major exits from Brazil in 2023 and Peru in early 2025. Banmedica’s footprint has since shrunk to 1.7 million insurance members, 7 hospitals, and 47 clinics—down from 2.1 million members and 143 centers.

UnitedHealth recorded an $8.3 billion loss tied to its South American exit, driven by currency translation losses and asset sales. Brazilian bank BTG Pactual is advising on the Banmedica transaction. UnitedHealth’s shares have dropped 40% year-to-date.