Study: Insurance companies hold billions in fast food stock

[BridgeTheGap]

The fast-food industry has long been under fire for selling high-fat, high-calorie meals that have been linked to weight gain and diabetes, but the financial health of the industry continues to attract investors -- including some of the leading insurance companies in the U.S., a new study reports.

According to Harvard Medical School researchers, 11 large companies that offer life, disability, or health insurance owned about $1.9 billion in stock in the five largest fast-food companies as of June 2009.

The fast-food companies included McDonald's, Burger King, and Yum! Brands (the parent company of KFC and Taco Bell). Companies from both North America and Europe were among the insurers, including the U.S.-based Massachusetts Mutual, Northwestern Mutual, and Prudential Financial.

The researchers say insurance companies should sell their fast-food stock or use their influence as shareholders to make fast food healthier, by pressuring big restaurant chains to cut portion sizes or improve nutrition, for instance.

There's a "potential disconnect" between the mission of insurance companies and the often-unhealthy food churned out by companies like McDonald's, they write.

http://www.cnn.com/2010/HEALTH/04/15/insurance.fast.food.stock/index.html

[HereSince1628]

1. Well, it's not about health, it's about profits

And if the insurance companies didn't invest in these things, they'd likely be hauled into court for improper handling of their investments...afterall it's that part that makes money for their investors.

It's one of the built in perversions/ironies of Capitalism.

[global1]

2. Potential Disconnect - Ya Think!!!!!.....nt

[LetsgoWings13]

3. that's what you get with the free market

[Festivito]

4. They make a percentage on medical costs. They like high prices and chronic diseases.

Fast food
-> diabetes/heart disease
-> chronic care over many years
-> Lots of money for hospitals/pharmaceuticals
-> lots of money for insurers
-> Invest in:
fast food.

[BridgeTheGap]

5. Sure sounds like a racket to me. n.t