Shares of UnitedHealth Group (UNH) fell by a record 22%, marking the worst performance since 1998.
UnitedHealth Group is the largest health insurance company in the U.S. with a market capitalization of over $400 billion.
Reasons for the collapse:
• Rising healthcare costs: In the first quarter of 2025, the company faced an unexpected increase in the use of medical services among participants in the Medicare Advantage program, which exceeded expectations by twofold.
• Decrease in profit forecast: As a result, UnitedHealth lowered its forecast for adjusted profit for 2025 to $26–$26.50 per share, significantly below the previous forecast of $29.50–$30.
The decline in UnitedHealth shares caused a 1.3% drop in the Dow Jones Industrial Average since the company is a component of it.