Best Effort Underwriting is a securities underwriting process where the underwriter agrees to sell as much of the issue as possible without guaranteeing the sale of the entire issue.
A detailed explanation of best-efforts offering, where underwriters sell as many shares as they can without guaranteeing the sale of all the shares.
A comprehensive guide to understanding binders in insurance, their historical context, types, key events, detailed explanations, and more.
Comprehensive article exploring the concepts of capacity and limit in insurance, their differences, types, significance, examples, and related terms.
A comprehensive overview of claims expenses, including their definition, components, and implications for insurers.
An in-depth look at the role of co-managers in financial markets, focusing on their participation in the issuance of eurobonds, and their significance in the underwriting syndicate.
A comprehensive guide on Competitive Bought Deals, including historical context, types, key events, detailed explanations, importance, and applicability in the financial markets.
A comprehensive guide to Divided Account agreements in underwriting, detailing its historical context, types, importance, applicability, and more.
In finance, an Eastern Account is an underwriting agreement wherein all participating underwriters share collective responsibility for the total issuance.
Entry Age, also known as Issue Age, indicates the age at which an individual's insurance coverage commences.
The Expected Mortality Rate is the average mortality rate anticipated based on demographic and underwriting data. It is a critical metric used in actuarial science, life insurance, public health, and epidemiology.
A comprehensive guide to Firm Commitment Offering, its historical context, types, key events, detailed explanations, mathematical models, importance, applicability, examples, related terms, and much more.
Firm Commitment Underwriting is a method in the financial markets where investment bankers purchase the entire securities offering directly from the issuer, assuming full financial risk in the process.
The Insurance Cycle, sometimes referred to as the underwriting cycle, denotes the recurring phases of soft and hard markets within the insurance sector. It affects pricing, availability, and insurer profitability.
Investment Banks are financial institutions that provide services such as underwriting and asset management to institutional clients.
The term 'Issue Age' refers to the age at which an individual initially purchases an insurance policy. Understanding the impact of issue age on insurance pricing, coverage, and policy terms is crucial for consumers and professionals alike.
A comprehensive guide to the role of a Lead Manager in financial transactions, including historical context, key events, mathematical models, and examples.
Detailed examination of the lead underwriter's role, responsibilities, examples, historical context, related terms, and frequently asked questions.
Lloyd’s is a renowned insurance market located in the City of London, known for its unique structure and vast influence in global insurance and reinsurance markets.
Loan origination is the comprehensive process involved in the creation of a new loan. It encompasses various stages including application, processing, underwriting, and approval.
A Loss Run Report is a vital document used in the insurance industry to record and assess previous insurance claims, providing a comprehensive understanding of an entity’s claim history and retained risks.
A managing agent is an entity that manages a syndicate, responsible for its daily operations including underwriting, claims handling, and administration.
Morgan Stanley is known for providing capital markets services, including underwriting and trading, alongside investment banking.
Funds set aside to cover claims from policies that are still in force but not yet expired.
A comprehensive look at the primary insurer, which is the insurance company that initially writes the policy and retains a portion of the risk.
Renewable Term Insurance is a type of life insurance policy that allows the policyholder to renew coverage without undergoing medical underwriting. Ideal for those seeking flexibility and continued coverage.
A comprehensive look at Revolving Underwriting Facilities, their historical context, types, key events, detailed explanations, and much more.
Schedule Rating combines experience rating with physical characteristics and operational practices to determine insurance premiums. This method evaluates overall risks by taking into account both historical claim data and specific company attributes, providing a comprehensive understanding for premium calculation.
Understand the concept of Standard Risk, its significance in the field of insurance, and how it impacts underwriting and premiums.
Standby underwriting is a financial guarantee where underwriters commit to purchase any remaining shares not subscribed by shareholders during a new issue.
A comprehensive look at Straightforward Bought Deals, where one investment bank buys the entire issuance. Includes historical context, types, key events, explanations, and more.
Substandard Risk refers to a threat with a higher-than-average probability of loss, often resulting in higher premium rates or modified coverage terms.
An exploration into under-subscription, its historical context, types, key events, mathematical models, importance, applicability, examples, related terms, and more.
An in-depth look into the role of an Underwriter in various fields such as insurance, finance, and investment. This article covers historical context, types, key responsibilities, mathematical models, and more.
A comprehensive overview of underwriting in the financial sector, detailing its historical context, types, key events, and significance.
Detailed exploration of underwriting commissions, their historical context, types, key events, models, importance, and applicability.
An in-depth exploration of underwriting fees, their historical context, types, significance, and impact on financial transactions.
A comprehensive exploration of underwriting groups in finance, including historical context, types, key events, detailed explanations, and much more.
An underwriting loss occurs when an insurance company's claims paid exceed the premiums it has collected. This scenario, while common, is indicative of the financial health of the insurer.
The term 'Underwriting Profit' refers to the profit derived when an insurance company's premiums collected exceed the claims paid out. This concept is pivotal in evaluating an insurer's operational and financial performance.
A comprehensive guide to understanding underwriting syndicates, their historical context, types, key events, models, importance, and more.
Detailed explanation of the process where the investing public absorbs a new issue of stock once sold by the issue's underwriters.
A detailed explanation of 'Book' in various financial and accounting contexts, including its significance in underwriting, securities, and record-keeping.
Experience Rating in insurance involves adjusting premiums based on past loss experience to project future claims and ensure profitability.
Comprehensive explanation of 'Floating an Issue', covering underwriting, issuance process, historical context, and related terminology in finance.
A comprehensive exploration of insurability, the circumstances under which an insurance company can issue life or health insurance to an applicant based on the company's standards.
Detailed definition and roles of Investment Bankers, including their functions as underwriters or agents, historical context, and comparisons with related roles.
A comprehensive overview of medical examinations, often required for life and/or health insurance applicants to determine their eligibility and risk classification.
Misstatement of Age involves the falsification of birth date by an applicant for a life or health insurance policy. If discovered, the insurance coverage will be adjusted to reflect the correct age according to the premiums paid in.
Mortgage Out refers to obtaining financing that exceeds the cost of constructing a project. Developers achieve this by securing a permanent loan commitment based on a high percentage of the completed project's value, although opportunities have declined due to stricter underwriting criteria.
An in-depth look at the practice of piggybacking credit scores, its implications, legality, and impact on credit scoring.
In the insurance industry, a preferred risk refers to an insured or an applicant with a lower expectation of incurring a loss compared to the standard applicant. This often results in reduced premium rates, such as non-smokers in life insurance due to longer life expectancy.
The Preliminary Prospectus, also known as the red herring, is the first document released by an underwriter of a new issue to prospective investors, detailing financial aspects of the issue subject to change before the final prospectus.
An in-depth look at Rated Policies in life insurance where applicants are charged higher premiums due to unique risk factors like medical history, occupation, or hobbies.
Tombstone Advertisement in the context of investment banking involves placing offers in newspapers, providing essential details about public offerings of securities, and listing underwriting group members. Its name is derived from its appearance.
Detailed exploration of the term 'underwrite', encompassing its definitions in insurance and investments, types, historical context, and related concepts.
Detailed explanation of underwriting spread, including factors influencing it and its importance in primary distribution of securities.
Unique impairment in underwriting refers to specific risk factors that differentiate an applicant from the standard risk pool, potentially influencing premium rates and coverage terms.
A comprehensive exploration of the term 'Writer', which refers to individuals or entities involved in the selling of options contracts or the underwriting of insurance policies.
Book Building is a dynamic process employed by underwriters to ascertain the best price for an Initial Public Offering (IPO). This detailed guide covers the mechanisms, types, special considerations, examples, historical context, and practical applications of Book Building.
A comprehensive guide on the role of a book runner in investment banking, including their responsibilities, how they compare to other underwriters, and their significance in the issuance of new equity, debt, or securities instruments.
A detailed examination of experience rating in insurance, including definitions, applications, calculations, and its impact on premiums and risk assessment.
A comprehensive overview of a greensheet in financial markets, detailing its definition, purpose, key functions, and significance in the context of new issues and initial public offerings (IPOs).
A comprehensive overview of the Greenshoe option, its purpose, mechanism, and impact on initial public offerings (IPOs) and financial markets.
An in-depth look at gross spread, its definition, how it works, and detailed examples to illustrate its application in underwriting.
Explore the comprehensive insight into an Indication of Interest (IOI), its functionality in the underwriting process, and an illustrative example to understand its role better.
A comprehensive look into the profession of insurance underwriting, detailing their roles, responsibilities, and key functions in risk evaluation and pricing.
An in-depth guide to understanding the Loss Ratio in the insurance industry, including how it's calculated, different types, and its significance in evaluating an insurer's performance.
An in-depth look at occurrence policies, detailing their definition, operation, benefits, and drawbacks.
An in-depth look at the offering price of publicly issued securities, detailing its definition, underlying mechanisms, and practical applications in financial markets.
An in-depth exploration of Overallotment in the securities market, including its definition, purpose, examples, and its impact on market dynamics.
Detailed explanation of the roles, responsibilities, and different types of underwriters in finance. Learn how underwriters assess and assume risk, and their significance in various financial sectors.
A comprehensive guide covering the definition of underwriting, the various types, how they work, and their role in finance and insurance.
A comprehensive guide to understanding underwriting agreements, including their meaning, types, applications, and key considerations in the context of new securities offerings.
A comprehensive guide to understanding underwriting capacity, its operational mechanics, and its critical importance in the insurance sector.
An in-depth exploration of the underwriting cycle, detailing its definition, functioning, management, and importance in the insurance industry.
A detailed look into underwriting expenses, including their components, functionality, and significance in the financial sector.
A comprehensive guide to understanding underwriting fees in insurance, including definitions, practical examples, and key insights.
Underwriting risk refers to the potential for loss that arises from the underwriting process in both insurance and securities, significantly impacting the profitability of companies.
An in-depth exploration of underwriting spread, including definitions, methods, examples, and its importance in public offerings.
Comprehensive guide to Underwriting Standards including definitions, detailed overviews, real-world examples, and essential guidelines.
An in-depth exploration of undivided accounts in underwriting, detailing their definition, operational mechanics, historical context, examples, and implications in financial markets.
An in-depth look at Western Accounts, detailing their definition, how they work, and illustrative examples in the context of underwriting agreements among specific parties.
