underwriter
UK: ˈʌndəraɪtə | US: ˈʌndərraɪtər
n. a person or company that assesses and assumes the risk of insuring someone or something
n. (finance) a party that guarantees the sale of securities by purchasing unsold shares
n. (historical) one who signed their name at the bottom of a document to attest to its validity
The term "underwriter" originated in the 17th century from marine insurance practices. Insurers would literally write their names under the terms of a policy to signify their financial liability. The morpheme "under" reflects the positional act of signing beneath the document, while "write" denotes the act of recording the agreement. Over time, the term expanded to include financial risk assessment in banking and securities.
The underwriter approved the loan after reviewing the applicant's credit history.
Marine underwriters assess the risks of insuring ships and cargo.
The investment bank acted as the underwriter for the company's IPO.
Underwriters must balance risk and profitability when pricing insurance policies.
In the 18th century, Lloyd's Coffee House became famous for its underwriters specializing in maritime insurance.