I’m certainly not claiming the actual probability is 10^-40 , only using this as an example consistent with an upper limit, which probability would imply life has not arisen a second time in the observable universe. Actually this is way overkill — as you say, even if the probability is as high as 10^-25, life on Earth is still probably the only instance in observable universe. The point is that we have no idea what this all important parameter is.