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underwriter

nounC1Rare in speech; mostly a word you read · #14,304 of 15,258leans written

Other forms: underwriters

An underwriter is somebody who accepts a risk in return for a premium. A Lloyd's underwriter.

The name comes from writing your name under the details of a risk you agreed to cover. An underwriter decides what a policy costs and whether it is offered at all.

Definitions of underwriter

  1. 1noununderwriterSomebody who accepts a risk in return for a premium.C1

    “The underwriter refused the whole class of business that year.”

underwriter is a person.

Where it comes from

From underwrite + -er.

Etymology from Wiktionary, CC BY-SA

Practise this word

underwriter in the wild

  • Most companies undertake an IPO with the assistance of an investment banking firm acting in the capacity of an underwriter.

    Initial public offering

  • The person or institution that agrees to sell a minimum number of securities of the company for commission is called the underwriter.

    Underwriting

  • The provision allows the underwriter to purchase up to 15% in additional company shares at the offering share price.

    Greenshoe

  • The term is derived from the name of the first company, Green Shoe Manufacturing (now called Stride Rite), to permit underwriters to use this practice in an IPO.

    Greenshoe

  • The underwriter acts as principal rather than agent and thus actually "goes long" in the security.

    Bought deal

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From Wikipedia, CC BY-SA 4.0. These sentences were written by other people about their own subjects; they are here to show the word at work, not as anybody’s opinion.