Up in smoke: health insurers hold billions in tobacco stocks
Source: Southernstudies.org Author: Desiree Evans A recent study published in the New England Journal of Medicine found that major U.S., Canadian and British life and health insurance companies are investing billions of dollars in tobacco company stock. Researchers first revealed that health and life insurance companies had major investments in tobacco companies in 1995 in an article in the British medical journal Lancet. More than 10 years later, insurance companies are still deeply invested in "big" tobacco, despite the national calls upon them to divest. "Despite calls upon the insurance industry to get out of the tobacco business by physicians and others, insurers continue to put their profits above people's health," said Wesley Boyd, the new report's lead author and a faculty member of Harvard Medical School. "It's clear their top priority is making money, not safe-guarding people's well-being." The report found that seven health and life-insurance companies in both the United States and overseas have nearly $4.5 billion invested in companies whose affiliates produce cigarettes, cigars and chewing tobacco. "Although investing in tobacco while selling life or health insurance may seem self-defeating, insurance firms have figured out ways to profit from both," Boyd said. "Insurers exclude smokers from coverage or, more commonly, charge them higher premiums. Insurers profit -- and smokers lose -- twice over." The study highlights New Jersey-based Prudential Financial Inc., which sells life insurance and long-term disability coverage. With total tobacco holdings of $264.3 million, Prudential Financial is a major investor in three tobacco firms, including America's biggest cigarette [...]