UNH UnitedHealth Group Inc

By Anna Wilde Mathews 

UnitedHealth Group Inc. said its current president, David S. Wichmann, will next month succeed Stephen J. Hemsley as chief executive, a widely expected transition at the top of the nation's largest health insurer.

Mr. Wichmann, 54 years old, will take over the CEO job on Sept. 1, and Mr. Hemsley, 65, who has held the title since 2006, will become executive chairman. UnitedHealth Group's current board chairman, Richard Burke, will then take the title of lead independent director.

Mr. Wichmann, who previously served as chief financial officer of UnitedHealth Group as well as president of UnitedHealthcare, its insurance operation, is seen as likely to continue the direction of his predecessor, who transformed the company by building up UnitedHealth's rapidly growing Optum health-services arm and expanding its core insurance business.

Analysts have long eyed Mr. Wichmann as the likely CEO-in-waiting, particularly after he assumed the president title in 2014.

"This is the right time for this transition to take place, as the company is performing strongly and has a positive outlook for the foreseeable future, and Dave Wichmann is the right choice to succeed as CEO for that future," Mr. Hemsley said in a statement.

Also in a statement, Mr. Burke said the succession was "the culmination of almost four years of discussion, careful planning, leadership development and execution," noting that Mr. Wichmann was among Mr. Hemsley's first hires at UnitedHealth and "has been preparing for the CEO role for many years."

He also said that Mr. Hemsley will still "have substantial responsibilities, and be fully engaged in the company's ongoing affairs and long-term direction."

Mr. Wichmann will run a health-care behemoth that this year expected to hit $200 billion in revenue. Its health-insurance unit covers 49.5 million people, diversified across government and employer plans. Optum's businesses stretch from pharmacy-benefit management to health-data analysis to a burgeoning national footprint in doctor practices.

UnitedHealth also has a growing overseas business, including a big health insurance and hospital operation in Brazil.

Write to Anna Wilde Mathews at anna.mathews@wsj.com

(END) Dow Jones Newswires

August 16, 2017 08:31 ET (12:31 GMT)

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