After a 13-month break from the index-linked retail market, Poste Vita has launched Alba, a seven-year insurance product linked to the DJEurostoxx50.
The product offers three fixed coupons of 4%, 4.5% and 5% on the first, fourth and sixth product anniversaries and 18% participation in the European index performance at maturity.
A source from the insurance company told SRP the sales target is more than €500m.
Poste Vita's previous index-linked product, DoppioStacco, was launched in July 2008 and struck in November. It was linked to a basket of indices comprising the DJEurostoxx50, Nikkei225 and S&P500.
In January this year, Poste Vita came under the spotlight for offering investors in failing index-linked products the opportunity to swap into a fixed income bond that pays initial capital plus a 5% coupon at a new maturity date in 2015, rather than in 2012 when the products were due to mature.
At the end of June, a set of rules published by insurance regulator Isvap, the Istituto per la Vigilanza sulle Assicurazioni Private e di Interesse Collettivo, tightened conditions for insurance companies issuing index-linked contracts. The stricter rules cover underlyings, price transparency and information available to investors and have to be adhered to by the end of the year.
This product is open now and closes 30 November.
This product appears in Recent Additions (Italy).