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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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