UnitedHealth promotes Andrew Witty to CEO, effective immediately
A change of leadership at the company ranked number one in the world's 25 largest insurers.
UnitedHealth Group announced that Andrew Witty has been appointed CEO, effective immediately. Witty, who has led its Optum division will succeed Dave Wichmann, who the company says is retiring. Wichmann will stay on for a transition through March 2021.
In reporting the appointment of Witty, Bloomberg News said it was a surprise to analysts who follow UnitedHealth, quoting one who thought Wichmann’s tenure was “cut short.”
Dirk McMahon, who most recently led the insurance division, will become president and chief operating officer.
Witty, who was knighted by the English government for his services to the U.K. economy, was named an Honorary Citizen by Singapore for his contributions to the country’s growth and development. In 2020, he took an unpaid leave of absence to serve as a Global Envoy for the World Health Organization’s COVID-19 efforts.
Prior to heading the Optum unit, Witty held various positions of leadership in industry and academe, including CEO of GlaxoSmithKline, as well as a chancellor of the University of Nottingham.
Stephen J. Hemsley, chairman of the UnitedHealth Group Board of Directors, said about Witty, “As we have come to know firsthand during his time at UnitedHealth Group, Andrew Witty combines an extraordinary breadth and depth of health care experience, sophisticated strategic thinking and outstanding leadership development skills, making him uniquely well-positioned to help the company take the next steps on its steady path to grow and deliver for its shareholders and the customers and people we are privileged to serve.”
Hemsley also lauded outgoing CEO Dave Wichmann’s contribution to the company: “As CEO, Dave helped build an unmatched set of distinctive capabilities, market positions and capacities that will continue to contribute to a high-performing and more equitable health system for everyone.”
Witty, Chief Financial Officer John Rex, and Dirk McMahon, as the new president and chief operating officer, will constitute the company’s Chief Executive Office.
McMahon has served as CEO of UnitedHealthcare since June 2019. Prior to this role, McMahon was president and chief operating officer for Optum.
“I am eager to partner with John and Dirk and our 330,000 colleagues throughout the company to advance the health of those we serve,” said Witty.
UnitedHealth Group’s fourth quarter earnings report in January showed broad-based revenue growth across its businesses Its full year 2020 revenues of $257.1 billion grew $15.0 billion or 6.2% year-over-year.
And its full year 2020 earnings from operations grew $2.7 billion or 13.8% year-over-year to $22.4 billion, with both UnitedHealthcare and Optum contributing to the expansion.
It has held the top spot in AM Best’s ranking of the world’s 25 largest insurance companies for a sixth straight year, as of January 2021.
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