Ethos Technologies Conference Call Summary Company Overview - **Company**: Ethos Technologies (NasdaqGS:LIFE) - **Industry**: Life Insurance - **Core Mission**: To transform the buying, selling, and risk management of life insurance through a multi-sided platform serving consumers, agents, and carriers [1][2] Key Points Business Model and Operations - Ethos compresses the traditional 6-8 week life insurance application process into a 10-minute online purchase, eliminating medical exams and extensive paperwork [2] - The platform accelerates agents' working capital cycles by paying them the next day after a policy sale, allowing for reinvestment into prospecting activities [3] - Ethos manages end-to-end operations for carrier partners, including application, underwriting, policy issuance, and long-term administration, while maintaining target underwriting profitability margins [4] Underwriting and Technology - Ethos has automated 95% of its applications, with over 90% of applicants receiving risk-adjusted offers [11] - The company utilizes a proprietary automated underwriting engine that processes around 250,000 data points per applicant, allowing for near-perfect health information assessment [12] - Ethos employs a sophisticated knowledge graph and over 1 million rules to make pricing decisions, ensuring a precise underwriting process [13] Market Position and Growth Potential - The U.S. life insurance market is valued at approximately $140 billion annually, with Ethos currently holding a low single-digit percentage of new policies sold [54] - The life insurance industry is highly fragmented, with the largest carrier holding only about 9% market share, indicating significant growth potential for Ethos [54] - Ethos aims to broaden its product portfolio beyond life insurance to include annuities and supplementary health products, enhancing its market presence [55] Competitive Advantage - Ethos differentiates itself by being a fully digital platform, which allows for efficient data processing and underwriting compared to traditional carriers that rely on legacy systems [23] - The company has achieved 98% gross margins due to its automated operations and effective use of machine learning and AI [49][50] - Ethos is well-positioned to adapt to changes in consumer behavior driven by advancements in AI and machine learning, potentially reducing sales and marketing costs [51] Agent and Consumer Engagement - Ethos launched its agent business to provide transformative value, with 15,000 agents using the platform in the last year, up from 10,000 the previous year [31] - The company focuses on recruiting new agencies and improving agent productivity through technology enhancements and new product offerings [32] - Ethos aims to simplify the life insurance buying process for consumers, making it more accessible and less cumbersome, thus attracting new customers to the market [63] Future Outlook - Ethos is committed to becoming the largest issuer of life insurance globally, leveraging its unique model and technology to capture a larger market share [5] - The company believes that its differentiated distribution and customer experience will drive growth, as life insurance is often viewed as an emotional purchase rather than a purely price-driven commodity [55] Additional Insights - Ethos has a Net Promoter Score (NPS) over 70, indicating strong customer satisfaction compared to other industries [56] - The company recognizes the potential for incremental market growth by attracting consumers who previously viewed life insurance as cumbersome or unnecessary [65]

Core Insights - Ethos reported a strong financial performance for Q4 2025, achieving a 65% year-over-year revenue growth, with total revenue reaching $110.1 million [2][6] - The company activated its 500,000th policy, highlighting its commitment to democratizing access to life insurance [2][6] - Ethos expects continued growth, projecting a full-year revenue of $387.6 million for 2025, representing a 52% increase year-over-year [5][6] Financial Highlights for Q4 2025 - Revenue grew to $110.1 million, a 65% increase compared to Q4 2024 [6] - Direct Channel Revenue increased by 93% year-over-year to $74.2 million [6] - Third-Party Channel Revenue rose by 27% year-over-year to $35.9 million [6] - Net Income for Q4 was $24.6 million, reflecting a 22% margin [6] - Adjusted EBITDA for Q4 was $25.8 million, representing a 23% margin [6] - Gross Profit reached $108.0 million, with a gross profit margin of 98% [6] - Contribution Profit was $47.2 million, yielding a contribution profit margin of 43% [6] - Net Income per Share (diluted) improved by 163% year-over-year to $0.42 [6] Full Fiscal Year 2025 Financial Highlights - Total revenue for the fiscal year was $387.6 million, a 52% increase year-over-year [5][6] - Direct Channel Revenue for the year grew by 40% to $242.5 million [6] - Third-Party Channel Revenue increased by 79% to $145.1 million [6] - Net Income for the year was $71.2 million, with an 18% margin [6] - Adjusted EBITDA for the year was $89.0 million, maintaining a 23% margin [6] - Gross Profit for the year was $380.9 million, with a gross profit margin of 98% [6] - Contribution Profit for the year was $162.0 million, yielding a contribution profit margin of 42% [6] - Net Income per Share (diluted) improved by 44% year-over-year to $1.22 [6] Recent Business Highlights - Ethos activated 54,714 new policies in Q4, marking a 42% growth [6] - The company ended 2025 with over 15,000 agents selling on its platform [6] - Two new products were launched in Q4: Accumulation Indexed Universal Life and Cancer Insurance [6] - Ethos expanded its carrier network, ending the quarter with six carriers [6] Financial Outlook - For Q1 2026, Ethos anticipates revenue between $144.0 million and $146.0 million, representing a 53% increase year-over-year at the midpoint [7][13] - The company projects Adjusted EBITDA for Q1 2026 to be between $30.0 million and $32.0 million [7][13] - For the full fiscal year 2026, Ethos expects total revenue between $510.0 million and $514.0 million, indicating a 32% increase year-over-year at the midpoint [7][13]

Fourth Quarter 2025 Earnings Call February 25, 2026 © Ethos Life | Confidential Important Notice and Disclaimers Forward-Looking Statements This presentation and accompanying oral presentation includes express and implied forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on Ethos Technologies Inc.'s ("Ethos" or the "Company") management's beliefs and assumptions and on information currently available to management. All statements other tha ...

Core Insights - Aflac Incorporated (AFL) has partnered with Ethos to modernize insurance distribution by offering supplemental health products through a fully digital platform, starting with cancer insurance [1][9] Group 1: Partnership and Product Offering - The collaboration combines Aflac's expertise in supplemental health insurance with Ethos' tech-driven distribution model, allowing customers to access cancer coverage easily [2] - Aflac's cancer insurance policies provide cash benefits directly to policyholders, which can be used for both medical and non-medical expenses, and include preventive screening benefits [3][9] Group 2: Strategic Implications - This partnership opens a new digital channel for Aflac to reach customers who prefer fast, low-friction insurance purchases, aligning with Aflac's "One Digital Aflac" initiative aimed at enhancing customer experiences and operational efficiency [4] - The collaboration positions Aflac to accelerate product innovation and improve cross-selling opportunities in both life and supplemental health markets, potentially leading to steady premium growth and a stronger competitive edge [5] Group 3: Stock Performance - Over the past year, Aflac's shares have increased by 7.5%, slightly below the industry's growth of 7.8% [6]

Financial Performance - Aflac Incorporated reported revenues of $18.9 billion[9], net earnings of $5.4 billion[9], and adjusted earnings of $4.1 billion[9] as of December 31, 2024[8] - The company's adjusted leverage stood at 19.7%[9] as of December 31, 2024[8] - Aflac Japan's pretax adjusted earnings increased to ¥527.675 billion[39] in 2024[39], with a pretax profit margin of 36.0%[39] - Aflac U.S. reported pretax adjusted earnings of $1.419 billion[56] in 2024[56], with a pretax profit margin of 21.1%[56] Investment Portfolio - Aflac's investment portfolio has $103 billion in assets under management (AUM)[62], with 84.7% allocated to fixed maturity securities[62] - The average rating of the fixed maturities portfolio is A-[62] - The net book value of the transitional real estate (TRE) portfolio is $4.7 billion with a book yield of 8.14%[63], while the commercial mortgage loan (CML) portfolio has a net book value of $1.5 billion with a book yield of 3.44%[63] - The middle market loan portfolio has a net book value of $4.3 billion and a book yield of 10.03%[77] Capital Management - Aflac Japan's Estimated Solvency Ratio (ESRe) is >270%[70] - The Combined Risk-Based Capital (RBC) Ratio for Aflac U.S. is 677%[70]