MINNEAPOLIS, MN – In a surprising move, UnitedHealth Group (NYSE: UNH) announced Tuesday the immediate departure of Chief Executive Officer Andrew Witty, who cited personal reasons for his decision. The nation’s largest health insurer simultaneously revealed the return of former CEO Stephen Hemsley to the top leadership role and the suspension of its 2025 financial outlook, sending the company’s stock into a steep decline and impacting the wider health insurance market.

• Sudden Departure: UnitedHealth Group CEO Andrew Witty unexpectedly steps down, citing personal reasons, effective immediately after serving since February 2021.
• Hemsley Returns: Former CEO Stephen Hemsley, currently Chairman, is reappointed as Chief Executive Officer to navigate the transition and address recent performance challenges.
• Stock Plummets: News of the leadership change and a suspended financial outlook triggers a significant nearly 18% drop in UnitedHealth Group’s stock price, impacting other health insurers as well.

UnitedHealthCare CEO Andrew Witty Steps Down

“The company stated that Witty is leaving for “personal reasons,” though no further details were provided”

In a surprising turn of events, Andrew Witty has decided to step down from his position as Chief Executive Officer of UnitedHealth Group, the largest health insurer in the United States. The announcement came on Tuesday, May 13, 2025, and the decision is effective immediately. The company stated that Witty is leaving for “personal reasons,” though no further details were provided. Witty, who took the helm in February 2021, will remain with the company for a period as a senior advisor to ensure a smooth transition.

Stephen Hemsley Returns as CEO

“Hemsley’s return is seen by some analysts as a move to bring stability during a turbulent period for the company”

UnitedHealth Group has swiftly appointed Stephen Hemsley as the new Chief Executive Officer. Hemsley is not new to the role, having previously served as CEO of the company from 2006 to 2017. He has been the Chairman of the Board since 2017 and will retain this position in addition to his CEO responsibilities. Hemsley’s return is seen by some analysts as a move to bring stability during a turbulent period for the company. On a conference call, Hemsley acknowledged recent performance setbacks and expressed his commitment to addressing the challenges facing the organization.

Significant Stock Price Drop and Broader Market Reaction

The announcement of Witty’s departure and the simultaneous suspension of the company’s 2025 financial outlook sent UnitedHealth Group’s stock price plummeting. Shares closed down nearly 18% on Tuesday, reaching levels not seen in approximately four years. This significant drop reflects investor concern over the leadership change and the uncertainty surrounding the company’s financial performance in the near term, particularly regarding higher-than-anticipated medical costs within its Medicare Advantage plans. The negative sentiment surrounding UnitedHealth also appeared to impact other major health insurance companies, with shares of Elevance Health, Humana, and Cigna all experiencing notable declines on the same day.

Performance Under Witty’s Leadership and Current Climate

Andrew Witty’s tenure as CEO, which began in 2021, saw significant growth in UnitedHealth Group’s revenue, which increased from $257.1 billion to over $400 billion annually. The company’s stock also experienced substantial gains during much of his leadership. However, the past few months have been challenging for UnitedHealth. The company recently missed its quarterly earnings targets, citing higher medical service utilization. Furthermore, the December 2024 killing of a UnitedHealthcare executive, while not directly related to financial operations, brought increased scrutiny and negative public sentiment towards the health insurance industry. The current economic climate, marked by persistent inflation in healthcare costs, and ongoing political debates about healthcare affordability and access, likely add further complexity to the challenges the company and its new CEO face. The suspension of the 2025 financial outlook underscores the immediate impact of these factors on UnitedHealth’s performance.