UnitedHealth Group Inc (NYSE:UNH, ETR:UNH) shares fell over 10% in premarket trading after the health insurance giant withdrew its guidance for the current year and announced the departure of its chief executive officer.
Stephen J. Hemsley, former CEO who led the company from 2006-2017, has taken the CEO role as well as remaining chairman of the board, effective immediately.
This followed Andrew Witty’s decision to step down for what United said were personal reasons. Witty will become a senior adviser to Hemsley.
“We are grateful for Andrew’s stewardship of UnitedHealth Group, especially during some of the most challenging times any company has ever faced,” Hemsley said.
Hemsley said UnitedHealth has "tremendous opportunities to grow" and return to its long-term growth objective of 13-16%.
The company said it has suspended its 2025 outlook, citing further acceleration in care activity and higher-than-expected medical costs for Medicare Advantage beneficiaries new to UnitedHealthcare.
United, which said it expects to return to growth in 2026, had last month trimmed its full-year profit guidance and reported lower earnings than expected for the first quarter, following a rise in care activity in its Medicare Advantage business, especially in physician and outpatient services, exceeding already high levels seen last year.
The firm said at the time that it expected adjusted EPS in the range of $26 to $26.50 per share, down from its earlier forecast of $29.50 to $30.