Underwritten

The term 'underwritten' primarily describes a financial guarantee or commitment, typically involving an insurance policy or a securities offering. It signifies assuming a financial risk in exchange for a premium or fee. More broadly, it can imply support, endorsement, or backing of a concept, initiative, or project. The underwriter assesses risk, determines terms, and agrees to cover potential losses. For securities, underwriters purchase the entire offering or a portion and then resell it to investors. In an insurance context, Underwritten policies specify the conditions under which the insurer will pay claims. The word suggests a firm assurance, providing essential support, and mitigating potential financial consequences. It highlights the importance of careful evaluation and management of risk.

Underwritten meaning with examples

• The new insurance policy for the business was fully Underwritten by a reputable firm, ensuring coverage against fire, theft, and other potential liabilities, a critical step for their financial security. This process allows them to operate safely.
• The success of the tech startup's initial public offering hinged on the lead underwriter, a major investment bank that guaranteed the sale of the shares to the public. Their expertise was crucial.
• The foundation's grant proposal was successfully Underwritten by a generous donor, providing the necessary funds for the community outreach program. They received substantial backing.
• Due to the high risk involved in developing the new technology, its success was contingent on having the right resources and an Underwritten financing deal for research and development.
• As the project's financial backbone, the bond issuance was Underwritten by a syndicate of banks, meaning these institutions guaranteed the repayment of debt to the investors.