Not that I'm surpriesd...but guess in what stock insurance companies invest the most? Fast food and tobacco. Isnt' that perfect?
"In their 2009 paper on tobacco, Boyd and his colleagues suggested that insurance companies profit twice over by investing in tobacco stocks, since they can charge higher premiums to smokers and also profit if the stock rises. A similar dynamic may be at work with fast food, according to Boyd.
"They can charge you more for life insurance if you have these negative health outcomes that people have as a result of eating fast food," he says.
Not only they charge you more for that.."preexisting condition" but when the stockl rises, and you bet that in US will always rise. they make money off that too. And then they nnegate your coverage..Isn't that perfect? Study: Insurance companies hold billions in fast food stock - CNN.com
I just read this article as well, it's not surprising, but honestly I used to work for NM, and even if they hold 420 mil in stock in fast food, that's a tiny amount. I was working with life insurance policies that were for that much. There isn't a conspiracy here unfortunately. NM owns stock in probably everything, iirc, they have the most cash available out of any company in the country.
I know...and it makes sense too...if they are good stocks why not? My point it that the system is geared for disaster...like a school investing in something that it is known to harm the kids....say cigarette dispensers in the halls...or army buyng stock in the enemy's ammunitions...or insurance against its own soldiers....there's something wrong with it.
it could be that they didn't even know they owned stock in those companies until the news broke. usually fund managers buy products that are made up of hundreds or thousands of different stocks, this is for diversity because it breaks up the risks.
Exxon tries to limit the tax pain with the help of 20 wholly owned subsidiaries domiciled in the Bahamas, Bermuda and the Cayman Islands that (legally) shelter the cash flow from operations in the likes of Angola, Azerbaijan and Abu Dhabi. No wonder that of $15 billion in income taxes last year, Exxon paid none of it to Uncle Sam, and has tens of billions in earnings permanently reinvested overseas