Definition

1. Noun:
   • A financial institution that sells insurance: An organization, typically a bank or insurance company, that assumes financial risk by selling insurance policies to individuals or businesses.
   • An agent who sells insurance: A person whose job is to sell insurance policies to clients.
   • A banker who deals chiefly in underwriting new securities: A financial professional or institution that guarantees to purchase a certain amount of a new stock or bond issue, assuming the risk of selling it to the public.

Usage and Examples

• Noun (Financial Institution):

  • The large bank acted as the underwriter for the corporate insurance policy.
  • We need to find a reputable underwriter for our fleet of vehicles.

• Noun (Insurance Agent):

  • She has been a successful insurance underwriter for over twenty years.
  • The underwriter assessed the risk before approving my life insurance application.

• Noun (Securities Banker):

  • The investment bank served as the lead underwriter for the company's initial public offering (IPO).
  • Several underwriters formed a syndicate to manage the bond issue.

Advanced Usage

• "To act as an underwriter for": To serve as the guarantor or risk-taker for a financial product.

  • The firm agreed to act as an underwriter for the municipal bond.

• "Lead underwriter": The primary financial institution managing and guaranteeing a new securities issue.

  • Goldman Sachs was the lead underwriter for the stock sale.

Variants and Related Words

• Underwrite (verb): To sign and accept liability under (an insurance policy), thus guaranteeing payment in case loss or damage occurs. More broadly, to agree to finance or support something.

  • The bank agreed to underwrite the new business venture.

• Underwriting (noun): The process performed by an underwriter.

  • The underwriting process for the loan was completed quickly.

Synonyms

• Insurer: A company or person that provides insurance.
• Guarantor: A person or organization that provides a guarantee.
• Backer: A person, institution, or country that supports something, especially financially.

Related Phrases

• "Syndicate of underwriters": A group of investment banks that jointly underwrite a large security issuance.
  • A syndicate of underwriters was formed to share the risk of the massive IPO.

Noun

1. a financial institution that sells insurance
2. an agent who sells insurance
3. a banker who deals chiefly in underwriting new securities