Re-underwriting is the repeat of an underwriting analysis on a position already held, triggered by new evidence such as a ruling or a schedule change rather than by a calendar. It replaces a stale estimate with one that reflects what is now known.
Underwriting at origination answers the day-zero question. Once the matter starts surviving, that answer loses information. Re-underwriting re-estimates outcome and duration conditional on the matter still being open and on the events that have occurred.
The prior underwriting is not discarded. Each version is kept, so a funder can see how its view moved and whether the movement was justified by the evidence.
Re-underwriting is not a new investment decision. It is a refresh of the measurement that supports decisions already made and those still to come, such as reserve, sale or further advance.
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