Shares of property and casualty insurance software vendor Guidewire Software, Inc. (NYSE:GWRE) increased as the company continued to capture an increasing share of its target market. Guidewire enjoys near-perfect client retention rates, a growing installed base of users, and accelerating adoption of its product offerings. We believe that insurers are in the early stages of replacing the core software systems needed to run their businesses, and Guidewire continues to expand its addressable market through persistent product innovation. In addition, in April, Accenture plc sold a majority stake in Duck Creek, the largest direct Guidewire competitor, and extended its relationship with Guidewire. We believe this will lead to improved pricing and better client win rates for Guidewire.
Baron Asset Fund second quarter shareholder letter.
