UnitedHealth: Antitrust Investigation Reported on Combined Insurance and Caregiving Assets

Regulators are investigating narrow-moat UnitedHealth on antitrust concerns, according to media reports. Specifically, regulators appear concerned about the combination of UnitedHealth's insurance and caregiving assets. Given the uncertainty surrounding this investigation, we are not changing our $520 fair value estimate on UnitedHealth currently, but investors should know that this investigation may have significant ramifications for UnitedHealth and even the broad industry, if regulators find wrongdoing.