Overview

• UnitedHealth sold stakes in business units to Warburg Pincus and KKR late last year, generating $3.3 billion in profits to preserve its 60-quarter earnings-beat streak.
• The transactions included repurchase obligations that require the insurer to buy back assets at higher prices, prompting questions over earnings engineering.
• The company excluded a $7.1 billion loss from its Brazil exit when reporting adjusted operating income and earnings per share.
• UnitedHealth’s stock has tumbled nearly 45% year-to-date as medical care ratios climbed and full-year profit guidance was suspended.
• A Justice Department criminal investigation into Medicare Advantage coding practices heightens regulatory risk ahead of the July 29 second-quarter results.