Guidewire Software Predicted to Capture 30-50% of P&C Insurance Industry Market Share

Guidewire Software (GWRE) is a cloud-based platform for property and casualty insurance companies. Baron Funds, an investment management company, believes GWRE will capture 30-50% of the $15 billion to $30 billion total addressable market, generating margins above 40%. The company's cloud transition is substantially complete, with insurers upgrading to the cloud at an accelerated rate. GWRE's subscription gross margin has expanded by approximately 280 bps in its most recently reported quarter.