U. S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934 For the quarterly period ended March 31, 2000
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the transition period from to
------------------
Commission File Number: 0-25505 NCRIC Group, Inc.
(Exact name of registrant as specified in its charter)
District of Columbia 52-2134774
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1115 30th Street, NW, Washington, D.C. 20007
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
202-969-1866
(Issuer's telephone number, including area code)
Check whether the registrant (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days. Yes [ X ] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date: As of April 30, 2000, there
were 3,742,855 shares of NCRIC Group, Inc. common stock outstanding.
<PAGE>
Table of Contents
Part I - Financial Information
Item 1. Condensed Consolidated Financial Statements (unaudited)
NCRIC Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets................... 3
Condensed Consolidated Statements of Operations......... 4
Condensed Consolidated Statements of Cash Flows......... 5
Notes to Condensed Consolidated Financial Statements.... 6
Item 2. Management's Discussion and Analysis.......................... 9
Item 3. Quantitative and Qualitative Disclosures About Market Risk..... 12
Part II - Other Information
Item 1. Legal Proceedings.............................................. 13
Item 6. Exhibits and Reports on Form 8-K............................... 13
Signatures .............................................................. 14
2
<PAGE>
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
NCRIC GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT FOR SHARE DATA)
March 31, 2000 December 31, 1999
-------------- -----------------
(unaudited)
<S> <C> <C>
ASSETS
INVESTMENTS:
Securities available for sale, at fair value:
Bonds and U.S.Treasury Notes .......................... $ 89,972 $ 90,937
Preferred stocks ...................................... 5,079 4,155
--------- ---------
Total securities available for sale ............... 95,051 95,092
OTHER ASSETS:
Cash and cash equivalents .................................. 7,026 5,407
Reinsurance recoverable .................................... 25,125 26,627
Goodwill ................................................... 4,863 4,928
Deferred federal income taxes .............................. 2,419 3,298
Other assets ............................................... 9,060 5,595
--------- ---------
TOTAL ASSETS ..................................................... $ 143,544 $ 140,947
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Losses and loss adjustment expenses:
Losses ................................................ $ 53,882 $ 56,462
Loss adjustment expenses .............................. 27,052 27,820
--------- ---------
Total losses and loss adjustment expenses ......... 80,934 84,282
Other liabilities:
Retrospective premiums accrued under
reinsurance treaties .............................. 6,866 7,164
Unearned premiums ..................................... 15,847 8,898
Other liabilities ..................................... 2,862 4,808
--------- ---------
TOTAL LIABILITIES ................................................ 106,509 105,152
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock $0.01 par value - 10,000,000 shares authorized;
3,742,855 shares issued and outstanding ............... 37 37
Additional paid in capital ................................. 9,433 9,433
Unallocated common stock held by the ESOP .................. (964) (993)
Unallocated common stock held by the stock award plan ...... (518) (518)
Accumulated other comprehensive loss ....................... (2,533) (2,866)
Retained earnings .......................................... 31,580 30,702
--------- ---------
TOTAL STOCKHOLDERS' EQUITY ....................................... 37,035 35,795
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ....................... $ 143,544 $ 140,947
========= =========
</TABLE>
See notes to condensed consolidated financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
NCRIC GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED (IN THOUSANDS EXCEPT PER SHARE DATA)
Three Months Ended March 31,
2000 1999
<S> <C> <C>
REVENUES:
Net premiums earned ............................... $3,629 $3,605
Net investment income ............................. 1,594 1,418
Net realized investment gains ..................... -- 52
Practice management and related income ............ 1,375 1,243
Other income ...................................... 102 91
-------- --------
Total revenues ........................... 6,700 6,409
-------- --------
EXPENSES:
Losses and loss adjustment expenses ............... 2,989 3,564
Underwriting expenses ............................. 940 927
Practice management expenses ...................... 1,214 1,116
Other ............................................. 286 473
-------- --------
Total expenses ........................... 5,429 6,080
-------- --------
INCOME BEFORE INCOME TAXES .............................. 1,271 329
INCOME TAX PROVISION .................................... 393 30
-------- --------
NET INCOME .............................................. $ 878 $ 299
======== ========
Net income per common share:
Basic ................................................... $ 0.25 $ 0.14
Diluted ................................................. $ 0.25 $ 0.14
</TABLE>
See notes to condensed consolidated financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
NCRIC GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED (IN THOUSANDS)
Three Months Ended March 31,
2000 1999
-------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ................................................ $ 878 $ 299
Adjustments to reconcile net income
to net cash flows from operating activities:
Net realized investment gains .................... -- (52)
Amortization and depreciation .................... 155 119
Deferred federal income taxes .................... 707 (170)
Changes in assets and liabilities:
Reinsurance recoverable ................... 1,501 (833)
Other assets .............................. (3,396) (2,206)
Losses and loss adjustment expenses ....... (3,348) 3,006
Retrospective premiums accrued under
reinsurance treaties ................. (298) 1,121
Unearned premiums ......................... 6,949 8,735
Other liabilities ......................... (1,918) 124
-------- --------
Net cash flows from operating activities ............. 1,230 10,143
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments .................................. (7,415) (12,713)
Sales, maturities and redemptions of investments .......... 7,962 8,076
Investment in purchased business .......................... -- (5,238)
Purchases of property and equipment ....................... (158) (37)
-------- --------
Net cash flows from (provided by) investing activities 389 (9,912)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt .............................. -- 2,200
-------- --------
NET CHANGE IN CASH AND CASH EQUIVALENTS ......................... 1,619 2,431
-------- --------
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD ....................................... 5,407 6,083
-------- --------
CASH AND CASH EQUIVALENTS,
END OF PERIOD ............................................. $ 7,026 $ 8,514
======== ========
SUPPLEMENTARY INFORMATION:
Interest paid ............................................. $ -- $ 45
======== ========
</TABLE>
See notes to condensed consolidated financial statements.
5
<PAGE>
NCRIC GROUP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements - unaudited
1. Basis of Preparation
The accompanying unaudited condensed consolidated financial statements were
prepared in accordance with instructions to Form 10-Q and therefore do not
include all disclosures necessary for a complete presentation under
generally accepted accounting principles. In the opinion of management, all
adjustments, consisting of normal recurring adjustments, considered
necessary for a fair presentation have been included.
Operating results for the three-month period ended March 31, 2000 are not
necessarily indicative of the results that may be expected for the year
ending December 31, 2000. These condensed consolidated financial statements
and notes should be read in conjunction with the financial statements and
notes included in the audited consolidated financial statements of NCRIC
Group, Inc. (NCRIC Group) for the year ended December 31, 1999, which were
filed with the Securities and Exchange Commission on Form 10-KSB.
2. Reportable Segment Information
NCRIC Group has two reportable segments: Insurance and practice management
services. The insurance segment provides medical professional liability and
other insurance. The practice management services segment provides medical
practice management services primarily to private practicing physicians.
NCRIC Group evaluates performance based on profit or loss from operations
before income taxes. The reportable segments are strategic business units
that offer different products and services and therefore are managed
separately.
Selected financial data is presented below for each business segment at and
for the three-month periods ended March 31 (in thousands):
At or For the Three Months
Ended March 31,
---------------
2000 1999
---- ----
Insurance
Revenues from external customers ............. $ 3,713 $ 3,696
Net investment income ........................ 1,571 1,475
Depreciation and amortization ................ 58 35
Segment profit before taxes .................. 1,265 607
Segment assets ............................... 137,537 142,446
Segment liabilities ......................... 106,221 115,395
Expenditures for segment assets .............. 144 21
Practice Management Services
Revenues from external customers ............. $ 1,393 $ 1,243
Net investment income ........................ 16 3
Depreciation and amortization ................ 97 84
Segment profit (loss) before taxes ........... 187 (111)
Segment assets ............................... 6,481 6,680
Segment liabilities ......................... 1,044 963
Expenditures for segment assets .............. 14 16
6
<PAGE>
At or For the Three Months
Ended March 31,
--------------------------
2000 1999
---- ----
Total
Revenues from external customers ............. $ 5,106 $ 4,939
Net investment income ........................ 1,587 1,478
Depreciation and amortization ................ 155 119
Segment profit before taxes .................. 1,452 496
Segment assets .............................. 144,018 149,126
Segment liabilities ......................... 107,265 116,358
Expenditures for segment assets .............. 158 37
The following are reconciliations of reportable segment revenues, net
investment income, assets, liabilities, and profit to the Company's
consolidated totals (in thousands) :
<TABLE>
<CAPTION>
At or For the Three Months
Ended March 31,
--------------------------
2000 1999
---------- ---------
<S> <C> <C>
Total
Revenues from external customers:
Total revenues for reportable segments .......... $ 5,106 $ 4,939
Elimination of intersegment revenues ............ -- --
--------- ---------
Consolidated total .............................. $ 5,106 $ 4,939
========= =========
Net Investment Income:
Total investment income for reportable segments . $ 1,587 $ 1,478
Other unallocated amounts ....................... 7 (60)
--------- ---------
Consolidated total .............................. $ 1,594 $ 1,418
========= =========
Assets:
Total assets for reportable segments ............ $ 144,018 $ 149,126
Elimination of intersegment receivables ......... (915) (1,695)
Other unallocated amounts ....................... 441 1,055
--------- ---------
Consolidated total .............................. $ 143,544 $ 148,486
========= =========
Liabilities:
Total liabilities for reportable segments ....... $ 107,265 $ 116,358
Elimination of intersegment payables ............ (915) (368)
Other liabilities ............................... 159 2,785
--------- ---------
Consolidated total .............................. $ 106,509 $ 118,775
========= =========
Profit before taxes:
Total profit for reportable segments ............ $ 1,452 $ 496
Other expenses .................................. (181) (107)
Elimination of intersegment interest income ..... -- (60)
--------- ---------
Consolidated total .............................. $ 1,271 $ 329
========= =========
</TABLE>
7
<PAGE>
3. Earnings per Share
The following table sets forth the computation of basic and diluted
earnings per share (in thousands except per share data):
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
------------------------------------
2000 1999
----- ----
<S> <C> <C>
Net income ....................................... $ 878 $ 299
====== ======
Weighted average common
shares outstanding - basic ............... 3,529 2,220
Dilutive effect of stock options ................. 9 --
------ ------
Weighted average common
shares outstanding - diluted ............. 3,538 2,220
====== ======
Net income per common share:
Basic ............................................ $ 0.25 $ 0.14
------ ------
Diluted .......................................... $ 0.25 $ 0.14
------ ------
</TABLE>
Earnings per share is calculated by dividing the net income by the weighted
average shares outstanding for the period. For the period from January 1,
1999 through March 31, 1999, the calculation of weighted average shares
outstanding includes 2,220,000 shares. Had the calculation been made using
3,520,855 as the weighted average outstanding shares for the period ending
March 31, 1999, that is as if the stock offered in the July 1999 initial
public offering had been outstanding on January 1, 1999, basic earnings per
share would have been $0.08 for the quarter ended March 31, 1999.
8
<PAGE>
Item 2. Management's Discussion and Analysis of Results of Operations and
Financial Condition
The following analysis of the consolidated results of operations and
financial condition of NCRIC Group should be read in conjunction with the
condensed consolidated financial statements and related notes included in this
Form 10-Q . References to "NCRIC" mean NCRIC Group and its subsidiaries,
including their predecessors.
General
The financial statements and data presented in the Form 10-Q have been
prepared in accordance with generally accepted accounting principles, GAAP,
unless otherwise noted. GAAP differs from statutory accounting practices used by
regulatory authorities in their oversight responsibilities of insurance
companies.
Consolidated net income -
Three months ended March 31, 2000 compared to three months ended March 31, 1999
Net income of $878,000 for the three months ended March 31, 2000 increased
$579,000 from $299,000 for the three months ended March 31, 1999. The primary
contributors to the increased earnings were an improvement in net underwriting
results and in practice management results. Underwriting results benefitted
approximately $200,000 from the new reinsurance program effective January 1,
2000. Additionally, earnings for the current quarter were not impacted by
litigation legal fees relating to the litigation brought by the NCRIC Physicians
Organization and settled in 1999, as were results during the 1999 period.
Comprehensive income was $1.2 million for the three months ended March 31,
2000 compared to a loss of $1.3 million for the three months ended March 31,
1999. The increase in comprehensive income resulted from increased net income
and from a decline in unrealized investment losses, net of deferred income
taxes.
Net premiums earned
Gross premiums written of $11.8 million for the three months ended March
31, 2000 decreased by $3.1 million from $14.9 million for the three months ended
March 31, 1999. Starting in the fourth quarter of 1997 and continuing through
1999, NCRIC began to stagger policy renewal dates. Premiums written were lower
by approximately $3.2 million for the three months ended March 31, 2000 due to
the staggering of premium writing dates in 1999. There is a one-time effect when
policy renewals are staggered. While premiums written in the period of the new
renewal date increase and premiums written in the subsequent period
corresponding to the original renewal date decrease, the staggering has no net
effect on premiums written from period to period. In addition, the staggering of
renewal dates does not affect earned premiums.
9
<PAGE>
Net premiums earned increased by $24,000 to $3.6 million for the three
months ended March 31, 2000, essentially unchanged from the corresponding 1999
quarter. The increase is primarily attributable to the reduction in reinsurance
ceded premium resulting from the new reinsurance program effective for 2000,
partially offset by reductions in earned premium from changes in policies in
force.
Net investment income
Net investment income increased by $176,000 for the three months ended
March 31, 2000 compared to the first quarter of 1999 due to an increase in
yields partially offset by a decrease in invested funds. The average effective
yield was approximately 6.23% for the three months ended March 31, 2000 and
5.38% for the three months ended March 31, 1999. The tax equivalent yield was
approximately 6.58% for the first quarter of 2000 and 5.96% for the first
quarter of 1999. The increase in investment yields reflects the market increase
in interest rates in 2000 compared to 1999.
Practice management and related revenue
Practice management and related revenue of $1.4 million for the three
months ended March 31, 2000 and $1.2 million for the three months ended March
31, 1999 consisted of fees generated by NCRIC MSO through HealthCare Consulting
and Employee Benefits Services. These fees through March 31, 2000 are for
practice management services (43%), accounting services (28%), tax and personal
financial planning (10%), retirement plan accounting and administration (14%),
and other services (5%).
Loss and loss adjustment expenses and combined ratio results
The expense for incurred losses and LAE net of reinsurance is summarized
as follows:
Three Months Ended March 31,
2000 1999
------- -------
(in thousands)
Incurred loss and LAE related to:
Current year - losses .................... $ 3,786 $ 4,450
Prior years - development ................ (797) (886)
------- -------
Total incurred for the period ..................... $ 2,989 $ 3,564
======= =======
Following is a summary of the ratios of losses and underwriting expenses
compared to net premiums:
Three Months Ended March 31,
2000 1999
------- -------
GAAP Underwriting ratios:
Loss and LAE ratio 82.4% 98.9%
Underwriting expense ratio 25.9% 25.7%
Combined ratio after renewal credits 108.3% 124.6%
Total incurred loss and LAE expense of $ 3.0 million for the first quarter
of 2000 decreased by $575,000 from the $3.6 million incurred for the first
quarter of 1999.
The number of claims reported in the first quarter of 2000 were lower than
in the first quarter of 1999. NCRIC experienced favorable development on
estimated losses for prior years' claims in the first quarters of 2000 and 1999.
The loss development related to prior years' claims was $797,000 in the first
quarter of 2000 and $886,000 in the first quarter of 1999. Prior year
development results from the re-estimation and settlement of individual losses
not covered by reinsurance, which generally are losses under $500,000.
10
<PAGE>
The GAAP combined ratio before renewal credits decreased to 108.3% for the
three months ended March 31, 2000 from 124.6% for the three months ended March
31, 1999.
Expenses
Underwriting expenses increased $13,000, to $940,000 for the three months
ended March 31, 2000 from $927,000 for the three months ended March 31, 1999.
Practice management and related expenses of $1.2 million for the three
months ended March 31, 2000 and $1.1 million for the three months ended March
31, 1999 consisted primarily of salaries and benefits, other general office
expenses and goodwill amortization.
Other expenses include amounts for subsidiary and holding company
operations which are not directly related to the issuance of medical
professional liability insurance or practice management and related operations.
Other expenses decreased $187,000 to $286,000 for the three months ended March
31, 2000 from $473,000 for the three months ended March 31, 1999. The primary
component of the decrease was legal expenses incurred in 1999 in connection with
litigation brought by NCRIC Physicians Organization.
Federal income taxes
The effective tax rate for NCRIC is lower than the federal statutory rate
principally due to nontaxable investment income.
Three Months Ended March 31,
----------------------------
2000 1999
---- ----
Federal income tax at statutory rates ............... 34% 34%
Tax exempt income ................................... (3) (25)
Dividends received .................................. (1) (6)
Goodwill amortization ............................... 1 5
Other, net .......................................... -- 1
--- ---
Federal income tax at effective rates ............... 31% 9%
=== ===
Financial condition, liquidity and capital resources
Liquidity. The primary sources of liquidity are insurance premiums, net
investment income, practice management and financial services fees, recoveries
from reinsurers and proceeds from the maturity or sale of invested assets. Funds
are used to pay claims, LAE, operating expenses, reinsurance premiums and taxes,
and to purchase investments.
NCRIC had cash provided by operating activities of $1.2 million for the
three months ended March 31, 2000 and $10.1 million for the three months ended
March 31, 1999. The decreased cash flow in 2000 compared to 1999 resulted
primarily from higher payments of losses and LAE. Additionally, due to the
staggering of policy renewals away from the previous January 1 renewal date,
premiums received in the first quarter of 2000 were lower than in the first
quarter of 1999. Because of the long-term nature of both the payments of claims
and the settlement of swing-rated reinsurance premiums due to the reinsurers,
cash from operations for a medical professional liability insurer like NCRIC can
vary substantially from year to year.
Financial condition and capital resources. Cash flow from operations has
primarily been invested in investment grade, fixed maturity securities. As of
March 31, 2000, the carrying value of the securities portfolio was $95.1
million, unchanged from December 31, 1999. The portfolio was invested as
follows:
11
<PAGE>
At March 31, At December 31,
2000 1999
---- ----
U.S. Government and agencies ..................... 14% 15%
Asset-backed and mortgage-backed securities ...... 41 40
Tax-exempt securities ............................ 13 14
Corporate bonds and preferred stocks ............. 32 31
Over 67% of the portfolio was invested in US Government/agency securities
or had a rating of AAA or AA. For regulatory purposes, 90% of the securities
portfolio was rated "Class 1" for all periods presented, which is the highest
quality rated group as classified by the NAIC.
NCRIC has no corporate debt. The $2.5 million line of credit available as
of March 31, 2000 is restricted to working capital for claims settlements. The
line of credit is unsecured and renewable annually. NCRIC has not drawn down on
this facility. As of March 31, 2000, NCRIC had entered into a contract to
purchase new policy administration system software; future payments under the
contract are required as services are completed by the vendor and total
$434,000. NCRIC had no other material commitments for capital expenditures.
Effects of inflation
The primary effect of inflation on NCRIC is in estimating reserves for
unpaid losses and LAE for medical professional liability claims in which there
is a long period between reporting and settlement. The rate of inflation for
malpractice claim settlements can substantially exceed the general rate of
inflation. The actual effect of inflation on NCRIC's results cannot be
conclusively known until claims are ultimately settled. Based on actual results
to date, NCRIC believes that losses and LAE reserve levels and NCRIC's
ratemaking process adequately incorporate the effects of inflation.
Forward-Looking Information
A number of statements made by NCRIC in this document are forward-looking
statements which involve known and unknown risks and uncertainties which may
cause NCRIC's actual results to be materially different from historical results
or from the results expressed or implied by the forward-looking statements.
These risks and uncertainties include:
o general economic conditions including changes in interest rates and the
performance of financial markets;
o NCRIC, Inc.'s concentration in a single line of business primarily in the
District of Columbia;
o the impact of managed healthcare;
o uncertainties inherent in the estimate of loss and loss adjustment expense
reserves and reinsurance;
o price competition;
o regulatory changes;
o ratings assigned by A.M. Best;
o the availability of bank financing and reinsurance;
o NCRIC, A Mutual Holding Company's structure; and
o uncertainties associated with NCRIC Group's acquisition strategy.
<PAGE>
Other factors not currently anticipated by management may also materially and
adversely affect NCRIC's results of operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Interest rate changes expose NCRIC to market risk on its investment
portfolio. This market risk is the potential for financial losses due to the
decrease in the value or price of an asset resulting from broad movements in
prices, such as interest rates. In general, the market value of NCRIC's fixed
maturity portfolio increases or decreases in an inverse relationship with
12
<PAGE>
fluctuation in interest rates. In addition, NCRIC's net investment income
increases or decreases in a direct relationship with interest rate changes on
monies reinvested from maturing securities and investments of positive cash flow
from operating activities.
NCRIC has classified its investments, which are fixed-income securities, as
available for sale and reports them at fair value, with unrealized gains and
losses excluded from net income and reported, net of deferred taxes, as a
component of stockholders' equity. During periods of rising interest rates, as
recently experienced, the fair value of NCRIC's investment portfolio will
generally decline resulting in decreases in NCRIC's stockholders' equity.
Conversely, during periods of falling interest rates, the fair value of NCRIC's
investment portfolio will generally increase resulting in increases in NCRIC's
stockholders' equity.
NCRIC's investment portfolio of fixed maturity securities consists
primarily of intermediate-term, investment- grade securities. NCRIC's investment
policy provides that all security purchases be limited to rated securities or
unrated securities approved by management on the recommendation of NCRIC's
investment advisor.
The following table contains the investment quality distribution of NCRIC,
Inc.'s fixed maturity investments at March 31, 2000 and December 31, 1999.
At March 31, At December 31,
Type/Ratings of Investment 2000 1999
- -------------------------- ---- ----
Treasury/Agency....................... 32% 28%
AAA................................... 34 40
AA.................................... 6 7
A..................................... 23 21
BBB................................... 5 4
During the three months ended March 31, 2000, NCRIC experienced a reduction
in the net unrealized loss on investments to an unrealized loss, net of tax, of
$2.5 million at March 31, 2000 from an unrealized loss, net of tax, of $2.9
million at December 31, 1999.
PART II OTHER INFORMATION
Item 1. Legal proceedings.
See the Form 10-KSB for the fiscal year ended December 31, 1999 for
information on pending litigation.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
27................................... Financial Data Schedule
(b) Reports on Form 8-K
NCRIC Group, Inc. did not file any reports on Form 8-K during the quarter
ended March 31, 2000.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
NCRIC Group, Inc.
May 9, 2000 /s/ R. Ray Pate, Jr.
--------------------
R. Ray Pate, Jr.,
President & Chief Executive Officer
(Duly Authorized Officer)
May 9, 2000 /s/ Rebecca B. Crunk
--------------------
Rebecca B. Crunk,
Sr. Vice President & Chief Financial
Officer (Principal Financial Officer)
14
<TABLE> <S> <C>
<ARTICLE> 7
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<DEBT-HELD-FOR-SALE> 95,051
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 0
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 95,051
<CASH> 7,026
<RECOVER-REINSURE> 0
<DEFERRED-ACQUISITION> 0
<TOTAL-ASSETS> 143,544
<POLICY-LOSSES> 80,934
<UNEARNED-PREMIUMS> 15,847
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 0
0
0
<COMMON> 37
<OTHER-SE> 36,998
<TOTAL-LIABILITY-AND-EQUITY> 143,544
3,629
<INVESTMENT-INCOME> 1,594
<INVESTMENT-GAINS> 0
<OTHER-INCOME> 102
<BENEFITS> 2,989
<UNDERWRITING-AMORTIZATION> 0
<UNDERWRITING-OTHER> 940
<INCOME-PRETAX> 1,271
<INCOME-TAX> 393
<INCOME-CONTINUING> 878
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 878
<EPS-BASIC> 0.25
<EPS-DILUTED> 0.25
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
