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Insurance Companies Hold Billions in Tobacco Stocks 

More than a decade after Harvard researchers first revealed that life and health insurance companies were major investors in tobacco stocks – prompting calls upon them to divest – the insurance industry has yet to kick the habit.

A new article on insurance company holdings, published in today's New England Journal of Medicine, shows that U.S., Canadian and U.K.-based insurance firms hold at least $4.4 billion of investments in companies whose subsidiaries manufacture cigarettes, cigars, chewing tobacco and related products. . . .

“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 Dr. J. Wesley Boyd, the lead author of the article. “It's clear their top priority is making money, not safeguarding people's well-being.”

To illustrate their point, Boyd and his colleagues point to Newark, N.J.-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 Reynolds American, whose subsidiary R.J. Reynolds manufactures Camel and Pall Mall cigarettes, and Philip Morris, maker of the popular Marlboro brand.

Sun Life Financial Inc., based in Toronto, sells life, health, disability and long-term care insurance. It also owns slightly over $1 billion in stock in two tobacco companies, including $890 million in Philip Morris.

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