Managed care insurers have faced a turbulent few months, with several major players experiencing steep market capitalization losses amid earnings uncertainty and looming policy shifts.

UnitedHealth Leads The Downturn Amidst Guidance Withdrawal And CEO Resignation

UnitedHealth Group Inc. (NYSE:UNH) led the downturn with a staggering 40.9% drop in market cap in the second quarter and a 39.6% decline year over year, triggered largely by its decision to withdraw 2025 earnings guidance.

UnitedHealth’s CEO, Andrew Witty, resigned for personal reasons, and the previous CEO, Stephen Hemsley, succeeded him. The company also withdrew 2025 guidance.

Also Read: UnitedHealth Board Reelects Directors, Hikes Dividend As CEO Pledges Review Of Medicare Practices

Despite the significant drop, UnitedHealth retained its top spot as the largest U.S. insurer, with a market cap of $283 billion, well ahead of second-ranked The Progressive Corp. (NYSE:PGR), which stood at $156.44 billion.

Managed Care Suffers While Property And Casualty Gains

An analysis by S&P Global of the 20 largest U.S. insurers by market capitalization highlighted a sharp divide between segments.

Among the eight companies that saw market cap declines of more than 5%, half were managed care firms. In contrast, five of the six insurers with gains were property and casualty providers, reflecting stronger investor confidence in that sector.

Ripple Effect: Other Health Insurers Follow Suit

Other health insurers followed UnitedHealth’s downward trajectory. Centene Corp. (NYSE:CNC) saw its market cap drop 10.3% in the second quarter, while Elevance Health Inc. (NYSE:ELV) declined 10.8%. Humana Inc. (NYSE:HUM) and The Cigna Group (NYSE:CI) posted more modest losses of 7.6% and 1%, respectively.

Third-Quarter Woes Intensify With Policy Uncertainty

The pressure has extended into the third quarter. Last week, Centene also withdrew its 2025 guidance, sending the market into shock. The result was a 40.37% stock plunge in a single day. The fallout also affected peers, with UnitedHealth and Elevance falling 5.7% and 11.5%, respectively.

Investor sentiment was further rattled by President Donald Trump’s proposed One Big Beautiful Bill Act, which appears close to congressional approval.

The S&P report added that the legislation could significantly impact Medicaid access, a key business area for managed care insurers like UnitedHealth and Centene that administer the program through government funding. The policy risk triggered another selloff in the first week of the third quarter.

Broader Insurance Industry Shows Resilience

Still, the broader insurance industry has shown resilience. At the end of the second quarter, the S&P 500 insurance index climbed 19.55% year over year, surpassing the S&P 500’s 15.16% gain during the same period.

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