UnitedHealth Group has agreed to sell off its Brazilian health insurance business, Amil, to entrepreneur José Seripieri Filho, according to a filing submitted to the Securities and Exchange Commission on Friday.
The company said it will incur a $7 billion charge as a result of the sale, which is largely "non-cash" and "due to the cumulative impact of foreign currency translation losses." It does not expect the deal to impact its 2024 outlook, according to the filing.
UnitedHealth expects the deal to close in the first half of 2024, pending regulatory approvals.
Seripieri founded Qualicorp, a large insurer in Brazil, and departed the company in 2019, according to a report from Reuters. Amil insures about 5.4 million people in Brazil across medical and dental benefits, according to the article.
The sale was first rumored several weeks ago, and Reuters reports that UnitedHealth has weighed selling Amil for several years.
Sources told the outlet that Seripieri bid 2.5 billion reais, or about $515.2 million, for Amil. Financial terms were not otherwise disclosed.
"We believe this agreement will ensure ongoing success, working with a buyer who has the local knowledge and experience to continue the positive momentum of the business," said UnitedHealth in an emailed statement to Reuters.