Definition

1. Verb:
   • To guarantee financial support for something, especially by agreeing to cover potential losses: This is the primary meaning, often used in finance and insurance. It involves assuming risk or responsibility.
   • To sign one's name at the end of a document: An older, more literal meaning referring to writing underneath something, such as an agreement or policy.

Usage and Examples

• Verb:
  • The investment bank agreed to underwrite the company's initial public offering. (The bank guaranteed to purchase any unsold shares.)
  • This policy underwrites the shipment against all risks at sea. (The insurance policy provides coverage for the shipment.)
  • Several insurers underwrote the massive construction project. (They collectively assumed the financial risk.)

Advanced Usage and Nuances

• Underwriting Process: In finance, to "underwrite" a stock or bond issue means to evaluate the risk and commit to buying the securities from the issuer to resell them to the public.
  • The firm's role is to underwrite municipal bonds.
• Figurative Use: It can mean to support or endorse something implicitly.
  • The success of the event was underwritten by months of careful planning. (The planning provided a foundation for success.)

Variants and Related Words

• Underwriter (noun): A person or company that underwrites insurance policies or securities issues.
  • The underwriter assessed the risk before approving the loan.
• Underwriting (noun): The process or profession of evaluating and assuming risk.
  • The underwriting of the deal took several weeks.

Synonyms

• Guarantee: To provide a formal assurance.
• Subsidize: To support financially.
• Sponsor: To provide funds for an event or activity.
• Insure: To cover with an insurance policy.

Related Phrases and Phrasal Verbs

(Note: "Underwrite" does not commonly form phrasal verbs. Its usage is typically straightforward.) - To underwrite a risk: To assume a specific financial risk. - Few companies are willing to underwrite that level of risk.

Related Idioms

(Note: There are no common idioms centered solely on the word "underwrite." Its use is primarily technical and literal.)

Verb

1. protect by insurance
   • The insurance won't cover this
2. guarantee financial support of
   • The opera tour was subvented by a bank