According to Reuters, UnitedHealth has received four preliminary bids for Banmedica and could set a deadline for binding offers as early as July.

UnitedHealth Group (UNH) is reportedly evaluating several non-binding offers for its Banmedica subsidiary in Latin America as the U.S. health insurance giant continues its retreat from the region.

UnitedHealth’s stock edged 0.8% higher in morning trade on Monday. 

According to a report by Reuters, the company has received four preliminary bids for Banmedica, which operates in Chile and Colombia, valued at roughly $1 billion. A deadline for binding proposals could be set as early as July.

Interested parties reportedly include Washington, D.C.-based private equity firm Acon Investments, Brazilian asset manager Patria Investments, Texas-based nonprofit Christus Health, and Peru’s Auna, a healthcare and insurance provider. 

Reuters added that Auna is reportedly in talks with a financial partner to support its offer.

UnitedHealth acquired Banmedica in 2018 under the leadership of then-CEO David Wichmann, who described the deal as laying a long-term growth foundation in South America. 

However, UnitedHealth began reconsidering its Latin America strategy in 2022 amid mounting losses at its Brazilian unit, Amil, which it exited in late 2023.

Although Banmedica remains profitable, sources told Reuters it is no longer seen as a strategic fit for UnitedHealth, which posted an $8.3 billion loss last year tied to its South American operations – $7.1 billion from Brazil and $1.2 billion from Banmedica – largely due to currency translation losses.

The latest divestment efforts come as UnitedHealth faces pressure on multiple fronts, including an earnings shortfall and the abrupt resignation of CEO Andrew Witty. Meanwhile, a Wall Street Journal report stated that the company is under a criminal investigation for alleged Medicare fraud. 

New CEO Steve Hemsley told shareholders last week that he is committed to restoring trust and stabilizing the business.

UnitedHealth’s stock has fallen nearly 40% this year.

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