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Wednesday, February 21, 2024

UnitedHealth to book $7 billion charge following deal to sell Brazil operations

UnitedHealth to book  billion charge following deal to sell Brazil operations


UnitedHealth Group Inc.
A H,
+0.40%

revealed Friday that it would record a charge of about $7 billion as it agreed to sell its Brazil operations to a private investor. The health insurer said the charges were the result of cumulative losses related to currency conversion. UnitedHealth shares edged up 0.6% in light premarket trading. The company said 2024 net income would be impacted by the charge, but its outlook for adjusted earnings per share remains unchanged at $27.50 to $28. The company said the fee will be recognized upon closing of the agreement to sell its Brazilian operations, which is expected to occur in the first half of 2024. The stock has fallen 1% since the start of the year, while that the Health Care Select Sector SPDR ETF
XLV,
+0.26%

rose 0.3% and the Dow Jones Industrial Average
DJIA,
+0.14%

gained 13.8%.



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