Insurance platform company Ethos Technologies Inc. saw its shares close down more than 11% on its first day of trading after the company made its debut on the Nasdaq this morning.

The company priced its initial public offering at $19 per share and raised roughly $200 million from the sale of 10.5 million shares on a valuation of $1.2 billion. The shares, trading under the ticker symbol “LIFE,” closed regular trading at $16.85.

Founded in 2016, Ethos integrates third-party data sources and predictive models that use data, analytics and automation to assess risk and match customers with appropriate life insurance products. The company partners with insurers instead of taking on all underwriting risk itself and instead focuses on customer experience, pricing transparency and operational efficiency.

Ethos also offers additional coverage options and tools designed to help customers understand their insurance requirements over time. The company’s platform is built to support cross-selling and long-term customer relationships rather than onetime transactions.

Ethos pitches itself as part of a broader shift toward digital-first financial services that applies modern software practices to a sector that has historically lagged in user experience.

Coming into its IPO, Ethos had raised $408 million over eight rounds. Investors included General Catalyst Group Management, Sequoia Capital Operations, Accel Partners LP, GV Management Co., Glade Brook Capital Partners and Hollywood actors Will Smith and Robert Downey Jr.

Ethos’ listing comes after a multiyear lull in U.S. public offerings, with demand for new offerings more recently strengthening. The insurance sector in particular has attracted attention for its steady revenue base, as opposed to the typical tech listing.

Though insurance companies might make appealing IPOs, that doesn’t always equate to strong support on debut. The selloff of Ethos shares suggests a degree of caution among public-market investors, even in a relatively favorable IPO environment. It also may suggest that there is still healthy skepticism around growth expectations and valuations.

Image: Ethos