underwrite
UK: ˌʌndəˈraɪt | US: ˌʌndərˈraɪt
vt. 1. To sign and accept liability under (an insurance policy), thereby guaranteeing payment in case of loss.
vt. 2. To agree to buy unsold shares, bonds, etc., ensuring the success of a financial offering.
vt. 3. (Archaic) To write below or at the end of a document.
The word "underwrite" originated in the late 14th century, combining "under" (from Old English under, meaning "beneath") and "write" (from Old English wrītan, meaning "to score, inscribe"). Initially, it referred to physically writing one's name beneath a document to assume responsibility (e.g., insurance policies). By the 17th century, it evolved into its modern financial sense, where underwriters guarantee financial risks by "signing" their commitment metaphorically.
The bank agreed to underwrite the company’s new bond issue.
Insurers underwrite policies based on calculated risks.
In medieval times, merchants would underwrite contracts with their signatures.
The venture capital firm declined to underwrite the startup’s expansion.
Shakespeare’s plays often mention scribes who underwrite legal deeds.