Significant Accounting Policies

6 Months Ended

Jun. 30, 2025

Accounting Standards Update and Change in Accounting Principle [Abstract]

Significant Accounting Policies

Significant Accounting Policies

Recent accounting and reporting developments

Accounting standards and laws and regulations effective in 2025 or early adopted, and relevant to our financial statements.

One Big Beautiful Bill Act

On July, 4, 2025, the One Big Beautiful Bill Act (the “OBBB Act”) was signed into law. Among other items, and most relevant to MGIC, the OBBB Act reinstates and makes permanent 100% bonus depreciation, restores the immediate expensing for domestic research and experimentation costs, and repeals many clean energy tax credits. We do not expect the OBBB Act will have a material impact to our consolidated financial statements.

Prospective accounting and reporting developments

Relevant new amendments to accounting standards, which are not yet effective or adopted.

Improvements to Income Tax Disclosures: ASU 2023-09

In December 2023, the FASB issued ASU 2023-09 to enhance the transparency and decision usefulness of income tax disclosures. This guidance for income tax disclosures requires consistent categories and greater disaggregations of information in the rate reconciliation and disclosure of income taxes paid by jurisdiction. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis with the option to apply the standard retrospectively. We have evaluated the impacts the adoption of this guidance will have on our consolidated financial statements and determined that it will not have a material impact.

Disaggregation of Income Statement Expenses: ASU 2024-03

In November 2024, the FASB issued ASU 2024-03 requiring additional disclosure of the nature of expenses included in the income statement. The new standard requires disclosures about specific expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027, as clarified by ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. We are currently evaluating the impacts the adoption of this guidance will have on our disclosures, but do not expect it to have a material impact.