SoftBank and Sequoia Capital-backed online life insurance company Ethos launches IPO plan

The life insurance company Ethos Technologies (Nasdaq ticker symbol: LIFE), which allows customers to purchase insurance immediately online without providing health checkups and blood tests, plans to launch its initial public offering (IPO) in late January. The company aims for a valuation of approximately $1.2 billion, with an offering price of $18 per share on the Nasdaq exchange.

Ethos IPO Background, Scale, and Valuation

Ethos initially filed for listing at the end of 2025, but due to the U.S. government shutdown affecting regulatory operations, the listing schedule was postponed to 2026. Benefiting from strong financial performance last year and rising geopolitical risks, investors have shifted funds toward industries less affected by political factors. Wall Street analysts are generally optimistic about insurance stocks, which has also brought significant market attention to Ethos’ IPO. The offering plans to sell 5.1 million new shares, along with 5.4 million shares held by existing shareholders GV (a venture capital firm under Alphabet) and General Catalyst, totaling approximately 10.5 million shares. Goldman Sachs and J.P. Morgan are the lead underwriters for this offering.

Behind Ethos are well-known venture capital firms including SoftBank, Redpoint Capital, and Accel. The IPO includes the issuance of 5,127,696 Class A common shares by Ethos, along with 5,398,619 Class A common shares sold by some existing shareholders. The share price range is set between $18 and $20. Ethos estimates that after listing, it could raise up to approximately $210.5 million. Based on the upper end of the pricing range, the post-IPO market capitalization could reach between $1.26 billion and $1.3 billion.

Ethos Shows Steady Operational Performance but Valuation Has Significantly Fallen from Peak

Financial data shows that as of September 30, 2025, Ethos achieved a net profit of $46.6 million and revenue of $277.5 million for the first nine months, outperforming the same period last year, which saw a net profit of $39.3 million and revenue of $188.4 million. However, the company previously received a $100 million investment from Japan’s SoftBank Group in 2021, with a valuation of up to $2.7 billion at that time, which has significantly shrunk compared to the current IPO target valuation. (Source: Reuters)

Analysts: Investors Are Shifting Toward Industries Less Affected by Trump’s Policies

Some market analysts believe that investors are turning toward industries less impacted by U.S. President Trump’s trade policies and geopolitical tensions. The IPO momentum for insurance stocks on Wall Street has noticeably increased, with forecasts indicating that the number of insurance companies going public in 2025 will hit a 20-year high, continuing into 2026.

Government Shutdown Delays Listing Schedule, Plans Pushed to 2026

Originally, Ethos filed for listing at the end of 2025 with plans to complete the IPO that year. However, last year’s longest-ever U.S. government shutdown caused multiple stock offerings to be delayed, and Ethos’ listing schedule was consequently postponed to 2026.

Purely Market Observation, Not Investment Advice.

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