b. A property and casualty insurance company has risk-based assets as indicated in the table below. Calculate the companys RBC and explain what it means.

Risk category	Risk adjusted amount (millions)
Asset risk - affiliates	5.20
Asset risk- equity	12.50
Asset risk - fixed income	76.50
Credit risk - reinsurance and other receivables	12.30
Underwriting risk - written premiums and growth surcharges	173.00
Underwriting risk - written premiums and growth surcharges	8.45
Catastrophe - hurricane	4.50
Catastrophe - earthquake	6.80