By Arasu Kannagi Basil and Manya Saini
Jan 29 (Reuters) - Ethos Technologies clinched a valuation of $1.2 billion in its Nasdaq debut on Thursday, as insurance firms continue to find receptive investors in a strengthening IPO market.
The U.S. IPO market has staged a broad recovery in recent months, with companies across the technology, healthcare and financial sectors rushing to list as strong investor risk appetite, record-high equity markets and pent-up demand revive deal activity.
Meanwhile, investor
interest in the broader life insurance sector has also grown, supported by steady recurring revenue, durable consumer demand and pricing power that tends to hold up even in economic slowdowns.
Ethos, which is backed by venture capital firms Accel and Sequoia, has said its platform and underwriting engine streamline the buying, selling and risk management of life insurance.
The firm said in its IPO prospectus that it has activated more than 500,000 policies since its inception.
"We deliver a 10 minute purchase process online, instead of the multi-week journey, we allow agents to sell many more policies than they otherwise would," Ethos CEO Peter Colis told Reuters in an interview, adding that for carriers, it transforms the risk management process.
"It's like buying a plane ticket online. You just buy it and you're done."
Colis said that while the company remains extremely excited about opportunities in the life insurance market, over time it will look to broaden its product portfolio into adjacent markets such as annuities and other supplementary health products.
Insurance IPOs on Wall Street hit a 20-year high in 2025, and analysts have said the strong revenue growth and the industry's "tariff-proof" nature will continue to lure investors this year.
Ethos and some existing investors raised about $200 million after pricing shares at the midpoint of its targeted range in the offering.
The stock opened unchanged at its IPO price of $19 per share, before edging lower.
(Reporting by Manya Saini and and Arasu Kannagi Basil in Bengaluru; Editing by Tasim Zahid and Alan Barona)
