Private health insurer Medibank Private no longer has any investments in tobacco companies.
The private health insurer says had shifted $170 million of investments in international shares to a new tobacco-free investment fund launched by State Street Global Advisors.
Medibank's policy of excluding investments in tobacco companies has now been implemented across its entire $2.4 billion investment portfolio.
International equities was the last remaining area where the policy had to be applied.
The tobacco-free fund excludes more than 10 companies linked to either tobacco or controversial weapons.
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"This decision is just good business sense," Medibank chief executive Craig Drummond said in a statement on Monday.
"Our mission for better health has to carry all the way through our business - from our employees and customers through to investments."
Cancer Council Australia says tobacco smoking is the largest preventable cause of cancer in Australia.
