ALBERTA MUNICIPAL INSURANCE EXCHANGE

Notes to the Financial Statements

Year ended December 31, 2022, with comparative information for 2021

7. Financial risk management (continued):

Credit risk (continued):

As at December 31, 2022 and 2021, the carrying values of investments and accounts receivable are neither past due nor impaired.

Liquidity risk management:

Liquidity is the risk that the Exchange cannot meet its obligations as they become due. Liquidity risk arises from the general business activities and in the course of managing the assets and liabilities of the Exchange. The liquidity requirements of the Exchange’s business are met primarily by cash generated from operations, asset maturities and income and other returns received on investments. Cash provided from these sources is used for claim payments and operating expenses. To meet these cash requirements, the Exchange has policies to limit and monitor its exposure to individual issuers. The Exchange also holds a portion of invested assets in liquid marketable investments. All current investment holdings of the Exchange are immediately redeemable.

At December 31, 2022, the Exchange has $8,679,141 (December 31, 2021 - $8,271,446) of cash and cash equivalents which includes $9,147,485 (December 31, 2021 - $7,389,493) of short-term investments. The cash equivalents are included in investments as they are managed as a component of the Exchange’s investment portfolio, and consist of treasury bills with an original maturity date of one year or less.

The following table (in $000s) shows details of the expected maturity profile of the Exchange’s obligations with respect to its financial liabilities and estimated cash flows of recognized claims liabilities. The table includes both interest and principal cash flows.