EUR 850.00 For Business Accounts Only

Morningstar | GWRE Updated Forecasts and Estimates from 16 Nov 2018

Guidewire Software creates solutions for property and casualty, or P&C, insurers, which we believe have historically updated their outdated IT systems at a glacial pace. As insurers look to shore up operational efficiency, data integrity, and policyholder engagement, Guidewire has prospered as its modern software systems have started to replace P&C insurers’ clunky, decades-old mainframes. We think this value proposition, coupled with the subpar returns for P&C insurers since the financial crisis, has served as a catalyst for Guidewire’s growth. Today, Guidewire has emerged as the global leader in replacing these legacy systems with its InsuranceSuite application, which manages claims, billings, and the entire policy life cycle.We believe Guidewire’s applications result in meaningful cost savings by increasing underwriting and billing efficiency, shortening the claims cycle, and limiting claims leakage, which yields diminished operating costs for the customer. Due to the lengthy implementation process (anywhere from 12 to 36 months), many customers see Guidewire as a long-term strategic partner, giving us confidence in durable switching costs.Guidewire has 350 total customers and models its pricing on the amount of premiums tied to licensed applications. Its products are scalable to the largest insurance organizations in the world, and its suite is deployable either on-premises or in the cloud by way of partnerships with major public cloud vendors such as Amazon Web Services. Guidewire’s customers write $0.5 trillion in direct written premiums annually, and the firm has relationships with more than 25 of the roughly 70 global Tier 1 insurers, yielding a strong revenue base. Newer data, analytics, and digital offerings are expected to provide ample upsell opportunities, notably DataHub and Guidewire Live.Guidewire’s growing presence at the top of the market, the expanding number of customers using its nascent cloud platform, international expansion (particularly in Europe), and upsell opportunities give us confidence that the firm still has a runway for growth. Guidewire’s offerings in the P&C niche are largely unparalleled.