Guidewire to buy Hyperexponential for up to $2.1 billion

The deal pairs a major property-and-casualty software vendor with a specialist in AI-native underwriting and pricing. Hyperexponential has built a strong position among UK commercial and specialty insurers, and its platform is already used to assess more than $75 billion in annual commercial premiums. Bringing it into Guidewire extends the buyer's reach from core systems into the underwriting decision itself.

Guidewire frames the combination around what it calls agentic underwriting, where AI agents work alongside underwriters and actuaries on risk assessment, pricing and decisions. The company argues insurers can encode their own underwriting know-how into AI to speed up quotes and handle more submissions, while shifting human experts toward the hardest individual risks.

The financial case rests on growth. Guidewire expects the acquisition to add at least 6.5 percentage points to annual recurring revenue growth in the fiscal year ending July 2027, and to lift organic growth by at least 1.5 points a year from fiscal 2028 onward. The transaction is expected to close in the second quarter of fiscal 2027 and will not affect the fiscal 2027 first-quarter outlook issued on September 3, 2026.