Ethos Technologies (LIFE) investor relations material

Business model and industry transformation

• Enables a 10-minute online life insurance purchase, streamlining a process that traditionally takes weeks and removing legacy barriers for consumers and agents.

• Platform supports both direct-to-consumer (D2C) and independent agent channels, driving rapid agent onboarding and productivity.

• Non-risk-bearing model allows for scalable growth without balance sheet constraints, leveraging carrier partners’ surplus capital.

• Focuses on both expanding wallet share with existing carrier partners and adding new partners for redundancy and market access.

• Aims to consolidate more market share than any individual carrier by offering a differentiated client and agent experience.

Technology and underwriting differentiation

• Built a fully native technology platform, vertically integrating underwriting, policy administration, payments, and agent systems.

• Automated underwriting engine processes structured and unstructured medical data instantly, enabling accurate pricing decisions.

• Developed a proprietary information graph and pricing logic, allowing for precise risk assessment even for complex cases.

• Holds one of the largest automated underwriting data moats, enabling granular risk pricing and improved profitability for partners.

• Regularly updates pricing and underwriting rules based on human underwriter feedback and claims data, ensuring actuarial maturity.

Growth strategies and unit economics

• D2C channel growth driven by continuous improvements in underwriting, conversion rates, marketing, and client retention.

• Third-party agent channel growth focuses on increasing agent numbers and policies sold per agent, supported by a resilient fraud prevention system.

• Both channels are managed to achieve variable cash positivity by month two of a policy’s life cycle.

• Investments in brand building and top-of-funnel marketing have unlocked significant new demand at target economic efficiency.

• Maintains discipline in capital allocation, prioritizing organic growth, selective M&A, and opportunistic share repurchases.