UnitedHealth Group’s parent company led the broader decline in health insurance stocks, with losses attributed to industry-wide focus and backlash over claims processing. Shares of UnitedHealth fell 5% on Friday, extending its weekly loss to 10%. This is the company’s worst week since March 2020 and fifth-steepest weekly loss this decade.
The US’ most valuable health insurance provider saw its market value decline by $55 billion this week alone. Other health insurance players, including Anthem Blue Cross Blue Shield parent Elevance Health, Cigna, Centene, and Humana, also suffered losses. Centene hit its lowest share price since 2020, while Elevance’s share price dropped to its lowest since 2021.
Analysts point to the industry-wide focus on claims processing as a potential reason for the decline. Morningstar analyst Julie Utterback described the event surrounding UnitedHealth’s CEO Brian Thompson’s murder as “anti-insurer sentiment.” She suggested that if the industry doesn’t adjust how it handles coverage decisions, they may face increased regulation and public backlash.
Thompson’s killer allegedly used bullets with inscribed words referencing a 2010 book about insurance claims. The company’s loss was unexpected, considering Thompson’s guidance for 2025 was in line with Wall Street expectations. UnitedHealth remains the largest health insurance provider by market capitalization, with a market cap of over $510 billion.
Source: https://www.forbes.com/sites/dereksaul/2024/12/06/health-insurance-stocks-led-by-unitedhealth-suffer-steep-drops-following-brian-thompsons-killing