Index Methodologies, LLC, is a wholly-owned subsidiary of Alpha Artists, LLC, a boutique innovator in the constructing and licensing of custom proprietary investment indexes for utilization in the U.S. annuity and life insurance industries. The management team comes from diverse financial services backgrounds with significant experience in the U.S. life insurance market place. Our core competencies include product development, finance, distribution and management.
Alpha Artists, LLC, a Delaware company, was formed in 2010 for the purpose of capitalizing on opportunities in the insurance industry identified by the company's partners while they were involved in other specialty finance businesses. The company performed early product development work on a groundbreaking fixed index annuity concept and worked with skilled distribution and an innovative U.S. life insurer to bring the concept to market. Alpha Artists licensed the first custom proprietary investment index to be embedded into a fixed index annuity in the U.S. life insurance industry. Fixed annuity policyholders were able to earn investment credits linked to the index which were uncapped by design in their potential - a feature never before accomplished. Product development began in 2009 and the annuity was launched nationwide in April 2012 and now exceeds $7 billion in inception sales. It was the leading fixed index annuity in terms of sales in four of the initial five quarters since its launch. Alpha Artists helped revolutionize the fixed index annuity industry with its licensing of this initial custom alternate index.
The company enjoys an exclusive right to distribute Enhanced Alpha Management, LP's investment indexes in the U.S. life insurance industry. Enhanced Alpha Management ("EAM") is a pioneer in the U.S. investment index business and led by Wall Street legend, Victor Sperandeo. Sperandeo, known as "Trader Vic," is a founder of EAM and serves as its Chief Executive Officer and Chief Investment Officer.
Index Methodologies, LLC is a wholly-owned subsidiary of Alpha Artists formed in 2013 for the purpose of designing, developing, licensing and operating their own brand of custom proprietary indexes. Index Methodologies originates and licenses indexes solely to the U.S. life insurance industry for inclusion in their annuity and life insurance products. The Lenwood Volatility Control Index (LVCI) is the first index created by Index Methodologies. Several other indexes are in pipeline development and the company is in discussions with various parties regarding licensing opportunities.
Annuities continue to be a retirement product strongly supported by American consumers. The U.S. life insurance industry recorded over $222.1 billion in annuity sales in 2016, a decrease of over 6% prior year results according to the LIMRA Secure Retirement Institute (SRI). The institute provides comprehensive, unbiased research and education about all aspects within the retirement industry to improve retirement readiness and promote retirement security.
Fixed index annuities continue to be a popular annuity choice by consumers as this type of annuity had nearly $60.9 billion in 2016 industry sales, a 12% year-over-year increase according to the LIMRA SRI. One of the features propelling fixed index annuity sales of recent has been the addition of alternate index choices available to annuity purchasers whereby policyholders can now take advantage of exposures to different asset classes and strategies never before available in this particular annuity market. Many of those indexes feature "uncapped" performance return features, meaning that the upside return potential is not limited inside of the annuity policy like some index choices. Index Methodologies, along with its parent company, Alpha Artists, has been at the forefront of this initiative to bring annuity buyers further choices.