UnitedHealth Looks Beyond These Borders
Dec 21st 2012 7:17PM
Updated Dec 21st 2012 7:22PM
When President Obama was re-elected, shares of UnitedHealth Group (NYSE:UNH) and other life insurers fell immediately. Is Obamacare a death knell for health insurers, or is the market missing out on some of the opportunities the law presents? Of course, one way to offset any negative impact from the law is to grow in areas where it doesn't apply. In our brand-new premium report on UnitedHealth, which homes in on UnitedHealth's prospects in a post-Obamacare world, we highlight one way the company is looking to grow beyond borders. Read on for a free sample.
In October 2012, UnitedHealth announced the acquisition of Brazil's largest health-care organization, Amil Participacoes S.A. This move opens up a significant new opportunity for growth beyond U.S. borders.
Brazil represents the largest market for private health care in the Western Hemisphere outside of the U.S. The market penetration for managed care in the country currently stands near 25%, much lower than the 80% penetration in the U.S. Better yet, per-capita GDP in Brazil has grown at an average rate in excess of 19% for nearly 10 years, making health care more affordable for an increasing percentage of the population.
Amil brings several assets to UnitedHealth. The company owns hospitals and clinics, along with several outpatient facilities and emergency care centers. Amil also boasts the largest care network in Brazil with 44,000 doctors, 12,000 ancillary service facilities, almost 11,000 outpatient clinics, and 3,300 hospitals.
UnitedHealth estimates annual revenue for Amil around $5 billion this year. While that amounts to only a small fraction of the company's U.S. revenue, Amil's year-on-year growth in the double-digits, combined with a large untapped Brazilian market bode well for UnitedHealth's prospects below the equator.
We hope you enjoyed this short excerpt from our premium report on UnitedHealth. In the full version, we run through the key opportunities and threats facing the company, provide reasons to both buy and sell the stock, and include a full year of analyst updates to keep you covered as key news develops. Don't miss out -- simply click here now to claim your copy today.
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