Fast Food Insurance

A new study (found here) highlights the extent to which life and health insurance companies are invested in the fast food industry. Even as the recent health care bill increases, by mandates the number of people covered by private health care U.S., Canadian and European-based insurance firms own nearly $2 billion in fast food stocks. The study points out that fast food can be consumed responsibly but that consumption is linked to obesity, cardiovascular disease and some childhood health issues.

These are for profit companies so what would you expect? It’s sort of a life insurance profitability hedge fund perhaps.

The researchers, affiliated with Physicians for a National Health Program say this highlights the conflicts that may exist between maximizing profit and the expanding public health role of private health insurers. They state: “If insurers are to play a greater part in the health care delivery system they ought to be held to a higher standard of corporate responsibility."

U.S.-based Northwestern Mutual and Massachusetts Mutual Life Insurance Company both offer life insurance as well as disability and long-term care insurance. Northwestern Mutual owns $422.2 million of fast-food stock, with $318.1 million of McDonald's. Mass Mutual owns $366.5 million of fast-food stock, including $267.2 in McDonald's.

New Jersey-based Prudential Financial Inc. sells life insurance and long-term disability coverage. With total fast-food holdings of $355.5 million, Prudential Financial owns $197.2 of stock in McDonald's and also has significant stakes in Burger King, Jack-in-the-Box, and Yum! Brands (owner of Pizza Hut, KFC and Taco Bell) stock.