Insurance companies’ slow embrace

Credit derivatives

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Massimo Sala, chief financial officer at Monte Paschi Vita Group, the life insurance arm of Gruppo Monte dei Paschi di Siena, in Rome, is reluctant to use credit derivatives or structured credit products for his firm’s retail products. “We did not feel comfortable passing leveraged exposure to the credit market on to the retail market in this financial environment,” Sala says. So far, his firm has only used such a tool in its retail products once – a credit-linked note (CLN) on a