France's Axa to pull out of the tobacco industry

French insurance company Axa says it will sell its 184 million euros of shares in tobacco companies and tobacco industry bond holdings that are valued at almost 1.6bn euros. The announcement coincides with the annual World Health Assembly in Geneva, where World Health Organisation (WHO) member nations meet to discuss global public health policy.

Axa is pulling out of tobacco Kim Kyung-Hoon

The WHO estimates that eight million people a year will die of smoking-related diseases by 2030, mostly in developing countries.

Axa deputy chief executive Thomas Buberl said that although the decision would cost the company money, it would generate savings by resulting in fewer claims for tobacco-related diseases.

"With this divestment from tobacco, we are doing our share to support the efforts of governments around the world," Buberl said in a statement. "This decision has a cost for us, but the case for divestment is clear: the human cost of tobacco is tragic; its economic cost is huge."

Tobacco represents just 0.6 percent of corporate bond holdings of the Axa Group, which manages assets worth 1.36 trillion euros.