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4. If a life insurance company has risk-based assets as indicated in the table below, how much equity must it have? Risk category Description Risk
4. If a life 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) | |
C0 | Asset risk affiliates | 4.25 | |
C1 |
|
| |
| C1cs | Asset risk Common stock | 7.50 |
| C!o | Asset risk Other investments | 3.50 |
C2 | Insurance risk | 9.00 | |
C3 |
|
| |
| C3a | Credit risk | 4.75 |
| C3b | Interest rate risk | 6.35 |
| C3c | Market risk | 3.60 |
C4 |
|
| |
| C4a | Business risk | 4.00 |
| C4b | Administrative risk | 1.25 |
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