Berkshire Hathaway disclosed a $1.57bn investment in UnitedHealth Group after acquiring 5.03mn shares, according to filings with the SEC.
The move followed UnitedHealth’s second-quarter earnings report, which showed net income of $3.57bn, down from $4.42bn a year earlier. Rising medical costs and higher utilization weighed heavily on results.
The company warned that medical expenses could run $6.5bn above initial projections for full-year 2025. Its medical care ratio climbed 430 basis points to 89.4, reflecting higher costs and reduced Medicare funding.
UnitedHealth shares spiked after the Berkshire filing became public. Market watchers described the purchase as unexpected given the healthcare giant’s current challenges.
Berkshire reported net underwriting income of $1.99bn in the second quarter, down from $2.26bn last year.
Losses tied to California wildfires are expected to reduce first-half results by about $850mn.
UnitedHealth now ranks as Berkshire’s 18th-largest holding, positioned just behind Amazon and Constellation Brands.
UnitedHealth, listed on the NYSE under UNH, runs businesses spanning health insurance, pharmacy benefits, consulting, and analytics through its UnitedHealthCare, OptumRx, OptumInsight, and OptumHealth divisions.
