3. If a property/casualty insurance company has risk-based assets as indicated in the table below, how much equity must it have?

Risk category	Description	Risk adjusted charge (millions)
R0	Property-casualty affiliates	2.5
R1	Assets -fixed income	35
R2	Assets - equity	25
R3	Credit risk on receivables	5
R4	Underwriting risk loss and LAE reserves with growth surcharge	50
R5	Underwriting risk written premiums with growth surcharge	35
R6	Catastrophe hurricane	5
R7	Catastrophe - earthquake	7.5