underwriter definition by Webster's New World
- a person who underwrites, or finances something
- a person who underwrites issues of stocks, bonds, etc.
- an employee of an insurance company who determines the acceptability of risks, the premiums that should be charged, etc.
- an agent who underwrites insurance
underwriter definition by American Heritage Dictionary
underwriter - Business Definition
- An investment banker who acts to guarantee the sale of a new securities issue by purchasing the securities for resale to the public. Also called sponsor. See also agreement among underwriters, investment bank, lead underwriter.
- A company that accepts the risks of others. For example, many insurance companies are underwriters for casualty losses sustained by their clients.
underwriter - Investment & Finance Definition
An investment bank that acts as an intermediary between a company that wants to sell bonds or stocks and the public. Firm-commitment underwriting, which is done only for an underwriter’s best clients, occurs when the underwriter buys the issue and guarantees to sell a certain number of shares to investors. In order to spread the risk of purchasing the issue, the underwriter forms a syndicate, or underwriting group, made up of other investment banks. In insurance, an underwriter assumes the risks for a variety of problems such as car accidents, health problems, or death, in return for receiving premiums.