BBH Select Mid Cap ETF on Guidewire Software, Inc.

BBH believes Guidewire's recent share-price weakness reflects timing issues rather than deterioration in underlying demand. The company remains the leading provider of core systems to property and casualty insurers, its pipeline is healthy, and fully ramped annual recurring revenue continues to grow faster than reported ARR. BBH argues that modern core systems are prerequisites for insurers adopting AI, potentially making AI a migration catalyst rather than a disruption threat. With Guidewire winning more than 80% of competitive requests for proposals while only about 25% of industry premiums run on its systems, the fund sees a long runway for cloud migration and growth.