UnitedHealth in talks to buy Chilean insurer Banmedica

UnitedHealth Group, the largest health insurer in the U.S., is considering acquiring Banmedica, an insurer based in Chile, for an undisclosed amount.

The deal was first reported by Reuters, which said Banmedica told its local regulators on Friday it had signed a non-binding agreement to sell all of its shares to United. The price of the takeover bid would reportedly be $3.47 per share. The insurer operates in Chile, Colombia and Peru and is one of the largest private insurers in those countries. In 2016 it recorded a net income of $57.7 million with revenue of more than $1.4 billion, according to the Wall Street Journal.

UnitedHealth confirmed it is in talks with the company, calling the discussions “non-binding exploratory talks to combine with Banmédica, based on its high regard for Banmédica’s organization and management team” in a statement to HealthExec.

"There are specific terms under discussion but no formal agreement at this time, and no guarantee this process will end with an agreement to combine," the company said in its statement.