<PAGE>
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE,
SAVINGS AND SIMILAR PLANS PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 for the plan year ended December 31, 1997
or
[_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] for the
transition period from ________ to ____________
Commission File Number: 0-15196
THE CENTRIS GROUP, INC. EMPLOYEES' SAVINGS PLAN
650 Town Center Drive, Suite 1600
Costa Mesa, California 92626
(Full title of the Plan and the address of the Plan)
THE CENTRIS GROUP, INC.
650 Town Center Drive, Suite 1600
Costa Mesa, California 92626
(Name of issuer of the securities held pursuant to the Plan and address of its
principal executive offices)
This document consists of 17 pages, the first of which is this cover page.
An Index may be found on page 4 of this report.
================================================================================
<PAGE>
REQUIRED INFORMATION
Financial Statements
- --------------------
1. Not Applicable
2. Not Applicable
3. Not Applicable
4. Pursuant to the requirements of Section 15(d) of the Securities Exchange
Act, The Centris Group, Inc. Employees' Savings Plan (the "Plan") hereby
files with the Commission the following audited financial statements and
schedules:
. Independent Auditors' Report dated June 19, 1998
. Statements of Net Assets Available for Plan Benefits
with fund information as of December 31, 1997 and 1996
. Statements of Changes in Net Assets Available For Plan
Benefits with fund information for the years ended
December 31, 1997 and 1996
. Notes to Financial Statements
. Schedules to Financial Statements
Schedule 1 Line 27a - Schedule of Assets Held for Investment Purposes as
of December 31, 1997 (also see Note 4 of Notes to Financial
Statements)
Schedule 2 Line 27d - Schedule of Transactions or Series of Transactions
in Excess of 5% of Plan Assets as of the Beginning of the
Plan Year for the year ended December 31, 1997
Since the Plan is subject to the Employee Retirement Income Security Act of
1974 ("ERISA"), the financial statements and schedules included in this Form
11-K for the fiscal year ended December 31, 1997 have been prepared in
accordance with the financial reporting requirements of ERISA.
Exhibits
- --------
23.1 Consent of KPMG Peat Marwick LLP
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the members
of the Plan's Administrative Committee have duly caused this annual report to be
signed on its behalf by the undersigned, thereunto duly authorized.
THE CENTRIS GROUP, INC.
EMPLOYEES' SAVINGS PLAN
Date: June 22, 1998 By: /s/ CHARLES CAPORALE
------------------------------------
CHARLES CAPORALE
Chairman of Administrative Committee
Date: June 22, 1998 By: /s/ PATRICIA BOISSERANC
------------------------------------
PATRICIA BOISSERANC
Member of Administrative Committee
Date: June 22, 1998 By: /s/ LORRAINE G. SCHAEFER
-------------------------------------
LORRAINE G. SCHAEFER
Member of Administrative Committee
3
<PAGE>
THE CENTRIS GROUP, INC.
EMPLOYEES' SAVINGS PLAN
Index
-----
<TABLE>
<CAPTION>
Financial Statements Page
- -------------------- ----
<S> <C>
Independent Auditors' Report dated June 19, 1998 5
Statements of Net Assets Available for Plan Benefits with Fund
Information as of December 31, 1997 and 1996 6
Statements of Changes in Net Assets Available for Plan Benefits with
Fund Information for the years ended December 31, 1997 and 1996 8
Notes to Financial Statements 10
Schedules
- ---------
Line 27a -- Schedule of Assets Held for Investment Purposes
as of December 31, 1997 15
Line 27d -- Schedule of Reportable Transactions for the year
ended December 31, 1997 16
Exhibit
- -------
Consent of KPMG Peat Marwick LLP dated June 19, 1998
</TABLE>
4
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors
The Centris Group, Inc.:
We have audited the accompanying statements of net assets available for plan
benefits with fund information of The Centris Group, Inc. Employees' Savings
Plan (the Plan) as of December 31, 1997 and 1996 and the related statements of
changes in net assets available for plan benefits with fund information for the
years then ended. These financial statements are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan as
of December 31, 1997 and 1996 and the changes in net assets available for plan
benefits for the years then ended in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of The
Centris Group, Inc. Employees' Savings Plan are presented for the purpose of
additional analysis and are not a required part of the basic financial
statements but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. These supplemental schedules are the
responsibility of the Plan's management. The fund information in the statements
of net assets available for plan benefits with fund information and the
statements of changes in net assets available for plan benefits with fund
information is presented for purposes of additional analysis rather than to
present the net assets available for plan benefits and changes in net assets
available for plan benefits of each fund. The supplemental schedules and fund
information have been subjected to the auditing procedures applied in the audits
of the basic financial statements and, in our opinion, are fairly stated, in all
material respects, in relation to the basic financial statements taken as a
whole.
/s/ KPMG Peat Marwick LLP
June 19, 1998
5
<PAGE>
THE CENTRIS GROUP, INC.
EMPLOYEES' SAVINGS PLAN
Statement of Net Assets Available for Plan Benefits with Fund Information
December 31, 1997
<TABLE>
<CAPTION>
Putnam Putnam
Asset Putnam Putnam Asset Putnam
Allocation - International New Allocation - Diversified
Growth Growth Opportunities Conservative Income
Assets Portfolio Fund Fund Portfolio Trust
------------ ------------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C>
Investments, at fair value:
Putnam Asset Allocation - Growth Portfolio $780,149 -- -- -- --
Putnam International Growth Fund -- 437,313 -- -- --
Putnam New Opportunities Fund -- -- 1,007,125 -- --
Putnam Asset Allocation - Conservative
Portfolio -- -- -- 62,347 --
Putnam Diversified Income Trust -- -- -- -- 464,468
The Centris Group, Inc. Common Stock -- -- -- -- --
Putnam Voyager Fund -- -- -- -- --
Participant Loan Fund -- -- -- -- --
-------- ------- --------- ------ -------
780,149 437,313 1,007,125 62,347 464,468
-------- ------- --------- ------ -------
Investments, at contract value - Putnam
Stable Value Fund -- -- -- -- --
-------- ------- --------- ------ -------
-- -- -- -- --
-------- ------- --------- ------ -------
Total investments 780,149 437,313 1,007,125 62,347 464,468
-------- ------- --------- ------ -------
Receivables:
Employer's contributions -- -- -- -- --
Participants' contributions -- -- -- -- --
-------- ------- --------- ------ -------
Total receivables -- -- -- -- --
-------- ------- --------- ------ -------
Total assets 780,149 437,313 1,007,125 62,347 464,468
Liabilities:
Accounts payable -- -- -- -- --
-------- ------- --------- ------ -------
Net assets available for plan benefits $780,149 437,313 1,007,125 62,347 464,468
======== ======= ========= ====== =======
<CAPTION>
The Centris Putnam Putnam Participant
Group, Inc. Voyager Stable Loan
Assets Common Stock Fund Value Fund Fund Total
------------ ------- ---------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Investments, at fair value:
Putnam Asset Allocation - Growth Portfolio -- -- -- -- 780,149
Putnam International Growth Fund -- -- -- -- 437,313
Putnam New Opportunities Fund -- -- -- -- 1,007,125
Putnam Asset Allocation - Conservative -- -- -- -- 62,347
Portfolio
Putnam Diversified Income Trust -- -- -- -- 464,468
The Centris Group, Inc. Common Stock 1,241,004 -- -- -- 1,241,004
Putnam Voyager Fund -- 880,840 -- -- 880,840
Participant Loan Fund -- -- -- 244,624 244,624
--------- ------- --------- ------- ---------
1,241,004 880,840 -- 244,624 5,117,870
--------- ------- --------- ------- ---------
Investments, at contract value - Putnam
Stable Value Fund -- -- 1,144,054 -- 1,144,054
--------- ------- --------- ------- ---------
-- -- 1,144,054 -- 1,144,054
--------- ------- --------- ------- ---------
Total investments 1,241,004 880,840 1,144,054 244,624 6,261,924
--------- ------- --------- ------- ---------
Receivables:
Employer's contributions -- -- -- -- --
Participants' contributions -- -- -- -- --
--------- ------- --------- ------- ---------
Total receivables -- -- -- -- --
--------- ------- --------- ------- ---------
Total assets 1,241,004 880,840 1,144,054 244,624 6,261,924
Liabilities:
Accounts payable -- -- -- -- --
--------- ------- --------- ------- ---------
Net assets available for plan benefits 1,241,004 880,840 1,144,054 244,624 6,261,924
========= ======= ========= ======= =========
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
THE CENTRIS GROUP, INC.
EMPLOYEES' SAVINGS PLAN
Statement of Net Assets Available for Plan Benefits with Fund Information
December 31, 1996
<TABLE>
<CAPTION>
New England
Mutual Life
The Centris Guaranteed Putnam
Group, Inc. Investment Participant Transfer
Common Stock Contract Loan Fund Account Total
-------------- ----------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value:
The Centris Group, Inc. Common Stock $ 1,323,085 -- -- -- 1,323,085
Participant notes receivable -- -- 212,699 -- 212,699
Putnam transfer account -- -- -- 3,040,958 3,040,958
-------------- ----------- ----------- ---------- -----------
1,323,085 -- 212,699 3,040,958 4,576,742
-------------- ----------- ----------- ---------- -----------
Investments, at contract value:
Guaranteed Investment Contract - New England -- -- -- -- --
Mutual Life Insurance Co. Group Annuity -- -- -- -- --
Policy 5001, latest maturity March 10, 1997 -- 171,249 -- -- 171,249
-------------- ----------- ----------- ---------- -----------
-- 171,249 -- -- 171,249
-------------- ----------- ----------- ---------- -----------
Total investments 1,323,085 171,249 212,699 3,040,958 4,747,991
-------------- ----------- ----------- ---------- -----------
Receivables:
Employer's contribution -- -- -- -- --
Participants' contributions -- -- -- -- --
-------------- ----------- ----------- ---------- -----------
Total receivables -- -- -- -- --
-------------- ----------- ----------- ---------- -----------
Total assets 1,323,085 171,249 212,699 3,040,958 4,747,991
Liabilities:
Accounts payable -- -- -- -- --
-------------- ----------- ----------- ---------- -----------
Net assets available for plan benefits $ 1,323,085 171,249 212,699 3,040,958 4,747,991
============== =========== =========== ========== ===========
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
THE CENTRIS GROUP, INC.
EMPLOYEES' SAVINGS PLAN
Statement of Changes in Net Assets Available for Plan
Benefits with Fund Information
Year ended December 31, 1997
<TABLE>
<CAPTION>
New England Putnam Putnam
Mutual Life Asset Putnam Putnam Asset
Guaranteed Putnam Allocation-- International New Allocation--
Investment Transfer Growth Growth Opportunities Conservative
Contract Account Portfolio Fund Fund Portfolio
------------ ------------ ----------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Interest $ -- -- -- -- -- --
Dividends - mutual funds -- -- 55,719 23,439 21,285 3,482
Dividends - common stock -- -- -- -- -- --
Net appreciation (depreciation) of fair
value of investments -- -- 63,620 38,099 156,652 (438)
----------- ----------- ----------- ------------- ------------- -------------
-- -- 119,339 61,538 177,937 3,044
----------- ----------- ----------- ------------- ------------- -------------
Contributions:
Employer - Company match -- -- 62,123 29,563 87,958 8,626
Employees -- -- 91,661 39,493 161,394 31,626
----------- ----------- ----------- ------------- ------------- -------------
-- -- 153,784 69,056 249,352 40,252
----------- ----------- ----------- ------------- ------------- -------------
Interfund transfers (171,249) -- (32,175) 12,363 4,037 19,634
Transfer from Dreyfus -- (3,040,958) 598,219 308,505 599,264 --
----------- ----------- ----------- ------------- ------------- -------------
Total additions (deletions) (171,249) (3,040,958) 839,167 451,462 1,030,590 62,930
----------- ----------- ----------- ------------- ------------- -------------
Deductions from net assets attributed to:
Benefits paid to participants -- -- (59,010) (14,148) (23,460) (583)
Loan fees -- -- (8) (1) (5) --
----------- ----------- ----------- ------------- ------------- -------------
Total deductions -- -- (59,018) (14,149) (23,465) (583)
----------- ----------- ----------- ------------- ------------- -------------
Net increase (decrease) (171,249) (3,040,958) 780,149 437,313 1,007,125 62,347
Net assets available for plan benefits:
Beginning of year 171,249 3,040,958 -- -- -- --
----------- ----------- ----------- ------------- ------------- -------------
End of year $ -- -- 780,149 437,313 1,007,125 62,347
=========== =========== =========== ============= ============= =============
<CAPTION>
Putnam
Diversified The Centris Putnam Putnam
Income Group, Inc. Voyager Stable Participant
Trust Common Stock Fund Value Fund Loan Fund Total
----------- ------------ ----------- ------------- ------------- -------------
Additions to net assets attributed to:
Investment income:
Interest -- -- -- 62,805 16,939 79,744
Dividends - mutual funds 28,436 -- 52,284 -- -- 184,645
Dividends - common stock -- 15,099 -- -- -- 15,099
Net appreciation (depreciation) of fair
value of investments 6,250 176,049 109,725 -- -- 549,957
----------- ----------- ----------- ------------- ------------ -------------
34,686 191,148 162,009 62,805 16,939 829,445
----------- ----------- ----------- ------------- ------------ -------------
Contributions:
Employer - Company match 34,570 50,130 92,124 49,911 -- 415,005
Employees 44,167 70,902 147,082 91,690 -- 678,015
----------- ----------- ----------- ------------- ------------ -------------
78,737 121,032 239,206 141,601 -- 1,093,020
----------- ----------- ----------- ------------- ------------ -------------
Interfund transfers (19,276) (159,726) 105,931 212,120 28,341 --
Transfer from Dreyfus 378,420 -- 403,327 753,223 -- --
----------- ----------- ----------- ------------- ------------ -------------
Total additions (deletions) 472,567 152,454 910,473 1,169,749 45,280 1,922,465
----------- ----------- ----------- ------------- ------------ -------------
Deductions from net assets attributed to:
Benefits paid to participants (8,099) (234,528) (29,632) (25,687) (13,355) (408,502)
Loan fees -- (7) (1) (8) -- (30)
----------- ----------- ----------- ------------- ------------ -------------
Total deductions (8,099) (234,535) (29,633) (25,695) (13,355) (408,532)
----------- ----------- ----------- ------------- ------------ -------------
Net increase (decrease) 464,468 (82,081) 880,840 1,144,054 31,925 1,513,933
Net assets available for plan benefits:
Beginning of year -- 1,323,085 -- -- 212,699 4,747,991
----------- ----------- ----------- ------------- ------------ -------------
End of year 464,468 1,241,004 880,840 1,144,054 244,624 6,261,924
=========== =========== =========== ============= ============ =============
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
THE CENTRIS GROUP, INC.
EMPLOYEES' SAVINGS PLAN
Statement of Changes in Net Assets Available for Plan
Benefits with Fund Information
Year ended December 31, 1996
<TABLE>
<CAPTION>
Dreyfus Dreyfus The Centris
Growth and International Dreyfus Dreyfus Group, Inc.
Income Equity Dreyfus New Fund A Bonds Common
Fund, Inc. Fund, Inc. Leaders Fund Inc. Plus, Inc. Stock
------------ -------------- ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Interest $ -- -- -- -- -- --
Dividends - mutual funds 85,980 16,049 41,330 40,781 21,101 --
Dividends - common stock -- -- -- -- -- 21,468
Net appreciation (depreciation) of fair
value of investments (17,986) 5,992 36,260 4,616 (9,438) (217,014)
----------- ----------- ----------- ------------- ------------- -------------
67,994 22,041 77,590 45,397 11,663 (195,546)
----------- ----------- ----------- ------------- ------------- -------------
Contributions:
Employer - Company match 59,763 35,495 55,960 36,042 47,371 56,613
Employees 89,879 51,708 83,393 50,493 65,883 76,567
----------- ----------- ----------- ------------- ------------- -------------
149,642 87,203 139,353 86,535 113,254 133,180
----------- ----------- ----------- ------------- ------------- -------------
Interfund transfers 29,620 (13,734) 41,874 48,474 5,930 (164,476)
----------- ----------- ----------- ------------- ------------- -------------
Total additions 247,256 95,510 258,817 180,406 130,847 (226,842)
----------- ----------- ----------- ------------- ------------- -------------
Deductions from net assets attributed to:
Benefits paid to participants (82,329) (48,556) (40,106) (32,222) (27,395) (388,181)
Loan fees (556) (304) (452) (226) (434) 534
----------- ----------- ----------- ------------- ------------- -------------
Total deductions (82,885) (48,860) (40,558) (32,448) (27,829) (387,647)
----------- ----------- ----------- ------------- ------------- -------------
Net increase (decrease) 164,371 46,650 218,259 147,958 103,018 (614,489)
Net assets available for plan benefits:
Beginning of year 433,848 261,855 381,005 255,369 275,402 1,937,574
----------- ----------- ----------- ------------- ------------- -------------
End of year, before transfer to Putnam 598,219 308,505 599,264 403,327 378,420 1,323,085
Transfer to Putnam on December 31, 1996 (598,219) (308,505) (599,264) (403,327) (378,420) --
----------- ----------- ----------- ------------- ------------- -------------
End of year $ -- -- -- -- -- 1,323,085
=========== =========== =========== ============= ============= =============
<CAPTION>
New England
Mutual Life Dreyfus
Guaranteed Stable Putnam
Investment Value Participant Transfer
Contract Fund Loan Fund Account Total
----------- ----------- ----------- ------------- -------------
Additions to net assets attributed to:
Investment income:
Interest 8,926 38,712 18,028 -- 65,666
Dividends - mutual funds -- -- -- -- 205,241
Dividends - common stock -- -- -- -- 21,468
Net appreciation (depreciation) of fair
value of investments -- -- -- -- (197,570)
----------- ---------- --------- ------------- ------------
8,926 38,712 18,028 -- 94,805
----------- ---------- --------- ------------- ------------
Contributions:
Employer - Company match -- 54,559 -- -- 345,803
Employees -- 92,365 -- -- 510,288
----------- ---------- --------- ------------- ------------
-- 146,924 -- -- 856,091
----------- ---------- --------- ------------- ------------
Interfund transfers (122,370) 168,004 6,678 -- --
----------- ---------- --------- ------------- ------------
Total additions (113,444) 353,640 24,706 -- 950,896
----------- ---------- --------- ------------- ------------
Deductions from net assets attributed to:
Benefits paid to participants (22,778) (79,760) (13,507) -- (734,834)
Loan fees (102) (531) -- -- (2,071)
----------- ---------- --------- ------------- ------------
Total deductions (22,880) (80,291) (13,507) -- (736,905)
----------- ---------- --------- ------------- ------------
Net increase (decrease) (136,324) 273,349 11,199 -- 213,991
Net assets available for plan benefits:
Beginning of year 307,573 479,874 201,500 -- 4,534,000
----------- ---------- --------- ------------- ------------
End of year, before transfer to Putnam 171,249 753,223 212,699 -- 4,747,991
Transfer to Putnam on December 31, 1996 -- (753,223) -- 3,040,958 --
----------- ---------- --------- ------------- ------------
End of year $ 171,249 -- 212,699 3,040,958 4,747,991
=========== ========== ========= ============= ============
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
THE CENTRIS GROUP, INC.
EMPLOYEES' SAVINGS PLAN
Notes to Financial Statements
December 31, 1997 and 1996
(1) Description of Plan
General
The Centris Group, Inc. Employees' Savings Plan (the Plan) is a defined
contribution, contributory 401(k) plan sponsored by The Centris Group, Inc.
(the Company), which became effective January 1, 1989 and was amended as of
December 31, 1997. From January 1, 1994 to December 31, 1996, the
administrative functions for the Plan were performed by Dreyfus Group
Retirement Plans, whose affiliate, Dreyfus Trust Company, acted as Trustee
of the Plan. As of January 1, 1997, Putnam Fiduciary Trust Company replaced
The Dreyfus Trust Company as Trustee of the Plan and also assumed the
administrative functions. On December 31, 1996, all plan investments in
Dreyfus funds were liquidated and transferred to funds managed by Putnam
Investments. Since plan inception, three employees of the Company have
functioned as the Plan's administrative committee.
In 1997, all employees were eligible to participate in the Plan on the
first day of the calendar quarter following completion of one year of
service as an employee with the Company and attainment of age 21. On
December 31, 1997, the time of service requirement to participate in the
Plan was changed from one year of service to three months of service. After
becoming eligible, employees may participate until retirement, disability
or termination from the Company. The Plan is subject to certain provisions
of the Employee Retirement Income Security Act of 1974 (ERISA); however,
benefits under the Plan are not eligible for plan termination insurance
provided by the Pension Benefit Guaranty Corporation under Title IV of
ERISA. Participants should refer to the Plan Document for a more complete
description of the Plan.
Trust Fund
The Trustee exercises discretionary authority in transactions involving
purchases and sales within the various funds.
Contributions and Forfeitures
Participants in the Plan are permitted to invest contributions in one or a
combination of seven funds, in addition to The Centris Group, Inc. Common
Stock fund. Participants can contribute up to 15% of their annual
compensation on a pre-tax basis, subject to Federal limitations, which were
$9,500 in 1997 and 1996. The Company matches 100% of participant
contributions, to a maximum of 6% of annual compensation. Participants
select the fund in which matching contributions are invested.
Forfeitures are used to reduce the actual matching contribution of the
Company and amounted to $40,717 and $59,674 in 1997 and 1996, respectively.
10
<PAGE>
THE CENTRIS GROUP, INC.
EMPLOYEES' SAVINGS PLAN
Notes to Financial Statements, Continued
Participant Accounts
Each participant's account is credited with the participant's contribution
and an allocation of the Company's matching contribution and Plan earnings.
Earnings are allocated to participants based upon the proportion of the
participant's account balance to the total account balance for each fund
within the Plan. The benefit to which a participant is entitled is the
benefit that can be provided from the participant's account.
Vesting
Employee contributions to the Plan and earnings thereon are fully vested
when contributed or earned. Employer contributions to the participants'
accounts vest ratably over a five-year period after two years of service.
Payment of Benefits
On termination of service due to death, disability or retirement, a
participant or beneficiary may elect to receive either a lump-sum amount
equal to 100% of the value of the participant's interest in his or her
account, or annual installments over a period not to exceed the life
expectancy of the participant or designated beneficiary. If the value of the
participant's interest in his or her account at the date of termination is
not over $3,500, and was never over $3,500 at the date of any prior
distribution, a single lump-sum payment is made.
Participant Loans Receivable
Participants may borrow from a minimum of $1,000 up to a maximum of the
lesser of $50,000 reduced by the highest unpaid loan balance during the
preceding 12 months, or 50% of their vested account balance. Loan
transactions are treated as a transfer to (from) the investment fund from
(to) the Participant Loan Fund. Loan terms range from 1 to a maximum of 5
years and are payable in full in the event of termination. The loans are
secured by the balance in the participant's account and bear interest at a
rate commensurate with local prevailing rates as determined quarterly by the
Plan administrators. Interest rates on existing loans range from 9.25% to
10.0%. Principal and interest are paid ratably through payroll deductions.
(2) Summary of Significant Accounting Policies
The financial statements of the Plan are prepared under the accrual method
of accounting.
The Plan's investments are stated at the estimated fair market value except
for insurance company investment contracts, which are stated at contract
value. The estimated fair value of these investments is determined from
quoted market prices. Participant loans are stated at their outstanding
principle balance, which approximates fair value.
Purchases and sales of securities are recorded on a trade-date basis.
Realized gains and losses from security transactions are reported under the
average-cost method. Interest income is recorded on the accrual basis.
Dividends are recorded on the ex-dividend date. Benefits are recorded when
paid.
11
<PAGE>
THE CENTRIS GROUP, INC.
EMPLOYEES' SAVINGS PLAN
Notes to Financial Statements, Continued
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements, and the reported amounts of revenue and expenses
during the reporting period. Actual results could differ from those
estimates.
(3) Plan Termination
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of Plan
termination, the amounts allocable to the accounts of all participants
become 100% vested and nonforfeitable, without regard to the years of
service of the participants.
(4) Plan Investments
Descriptions of the investment funds currently available under the Plan,
including The Centris Group, Inc. Common Stock, are as follows:
. Putnam Asset Allocation - Growth Portfolio - This fund seeks capital
appreciation by allocating its investments between equity and fixed
income class securities.
. Putnam International Growth Fund - This fund seeks capital appreciation
by investing primarily in equity securities of companies located in a
country other than the United States.
. Putnam New Opportunities Fund - This fund seeks capital appreciation by
investing principally in common stocks of companies in sectors of the
economy which the fund's investment manager believes possess above-
average, long-term growth potential.
. Putnam Asset Allocation - Conservative Portfolio - This fund seeks total
return consistent with preservation of capital by allocating its
investments between fixed income and equity class securities.
. Putnam Diversified Income Trust - This fund seeks high current income
consistent with preservation of capital by allocating investments among
three sectors of the fixed income securities markets: U.S. Government,
High Yield and International.
. The Centris Group, Inc. Common Stock - This fund is comprised of shares
of common stock of The Centris Group, Inc. and money market instruments.
The objective of this fund is long-term capital growth .
. Putnam Voyager Fund - This fund seeks capital appreciation by investing
primarily in common stocks of companies that the fund's investment
manager believes have potential for capital appreciation which is
significantly greater than that of the market averages.
. Putnam Stable Value Fund - This fund seeks to preserve principal and
achieve high current income through a diversified portfolio of high-
quality investment contracts.
All interest and dividends received from each investment fund are
automatically reinvested in their respective investment fund.
12
<PAGE>
THE CENTRIS GROUP, INC.
EMPLOYEES' SAVINGS PLAN
Notes to Financial Statements, Continued
At December 31, 1997, all funds, with the exception of the Putnam Asset
Allocation Conservative Portfolio and the Participant Loan Fund, had
investment balances that represented greater than 5% of net assets available
for Plan benefits. At December 31, 1996, The Centris Group, Inc. Common
Stock represented greater than 5% of net assets available for plan benefits.
The Putnam Transfer Account represented cash in transit to the Putnam
Fiduciary Trust Company at December 31, 1996.
The number of employees participating in the respective funds at December 31,
1997 and 1996 were as follows:
<TABLE>
<CAPTION>
1997:
<S> <C>
Putnam Asset Allocation - Growth Portfolio 93
Putnam International Growth Fund 60
Putnam New Opportunities Fund 120
Putnam Asset Allocation - Conservative Portfolio 16
Putnam Diversified Income Trust 55
The Centris Group, Inc. Common Stock 46
Participant Loan Fund 39
Putnam Voyager Fund 113
Putnam Stable Value Fund 82
=====
1996:
Dreyfus Growth and Income Fund 86
Dreyfus International Equity Fund 60
Dreyfus New Leaders Fund 73
The Dreyfus Fund, Inc. 56
Dreyfus A Bond Plus 59
The Centris Group, Inc. Common Stock 61
Participant Loan Fund 35
Guaranteed Investment Contract 89
Dreyfus Stable Value Fund 62
=====
</TABLE>
(5) Commitments and Reconciliation to Form 5500
Net assets available for Plan benefits include $419,970 and $331,357 at
December 31, 1997 and 1996, respectively, allocated to the accounts of
persons who are no longer employees of the Company but have not yet
received distribution of their account balances. These persons participate
in the earnings of the Plan but not in contributions. Such amounts are
shown as liabilities of the Plan in Form 5500, Annual Return/Report of
Employee Benefit Plan, filed with the Department of Labor.
13
<PAGE>
THE CENTRIS GROUP, INC.
EMPLOYEES' SAVINGS PLAN
Notes to Financial Statements, Continued
(6) Federal Income Taxes
The Plan qualifies under the provisions of Sections 401(a) and 401(k) of
the Internal Revenue Code and is exempt from Federal income taxes under
provisions of Section 501(a) of the Internal Revenue Code. The Plan is a
standardized prototype plan that can rely on the prototype's favorable
determination letter from the Internal Revenue Service, and the Company
believes that the Plan continues to qualify and operate as designed.
(7) Administration Costs
Administration costs of the Plan were approximately $3,711 and $10,815 for
the years ended December 31, 1997 and 1996, respectively, and were paid
directly by the Company.
14
<PAGE>
Schedule 1
THE CENTRIS GROUP, INC.
EMPLOYEE SAVINGS PLAN
Line 27a - Schedule of Assets Held for Investment Purposes
December 31, 1997
<TABLE>
<CAPTION>
Number of shares,
units or Current
Description of investments principal amount Cost value
- ------------------------------------------------------ ------------------- ----------- ------------
<S> <C> <C> <C>
* Putnam Asset Allocation - Growth Portfolio
Annual effective return of 18.43% in 1997 63,272 $ 723,912 780,149
* Putnam International Growth Fund
Annual effective return of 17.78% in 1997 26,234 404,483 437,313
* Putnam New Opportunities Fund
Annual effective return of 22.52% in 1997 20,701 858,469 1,007,125
* Putnam Asset Allocation - Conservative Portfolio
Annual effective return of 11.81% in 1997 6,253 62,662 62,347
* Putnam Diversified Income Trust
Annual effective return of 8.14% in 1997 36,921 457,396 464,468
* The Centris Group, Inc. Common Stock, effective
return: 14.97% in 1997, consisting of: The Centris
Group, Inc. common stock 55,619 851,953 1,241,004
* Putnam Voyager Fund
Annual effective return of 25.98% in 1997 46,238 777,765 880,840
* Putnam Stable Value Fund
Annual effective return of 5.9% in 1997 1,144,054 1,144,054 1,144,054
* Participant Loan Fund
Loans outstanding at year-end, interest rate ranging
from 9.25% to 10.00% -- -- 244,624
=================== ========== ------------
Total investments $6,261,924
============
</TABLE>
* Party in interest.
See accompanying independent auditors' report
15
<PAGE>
Schedule 2
THE CENTRIS GROUP, INC.
EMPLOYEES' SAVINGS PLAN
Line 27d - Schedule of Reportable Transactions
Year ended December 31, 1997
<TABLE>
<CAPTION>
Expenses Current value
Description incurred of asset on
Indentity of Description (number) of Purchase Selling with transaction Net gain
party involved of asset transactions price price transaction Cost date (loss)
- ------------------ ------------------- --------------- ----------- ------- ----------- ------- ------------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
* Putnam Invest- Putnam Asset Purchases (46) $ 851,900 -- -- 851,900 851,900 --
ments Retirement Allocation - Growth Sales (43) -- 135,342 -- 127,989 135,342 7,353
Plans Portfolio
* Putnam Invest- Putnam Inter- Purchases (38) 459,627 -- -- 459,627 459,627 --
ments Retirement national Growth Sales (30) -- 60,396 -- 55,144 60,396 5,252
Plans Fund
* Putnam Invest- Putnam New Purchases (46) 958,953 -- -- 958,953 958,953 --
ments Retirement Opportunities Sales (42) -- 108,445 -- 100,482 108,445 7,963
Plans Fund
* Putnam Invest- Putnam Diversified Purchases (46) 507,474 -- -- 507,474 507,474 --
ments Retirement Income Trust Sales (21) -- 49,235 -- 50,077 49,235 (842)
Plans
* The Centris The Centris Group, Purchases (41) 169,372 -- -- 169,372 169,372 --
Group, Inc. Inc. Common Stock Sales (37) -- 427,461 -- 299,625 427,461 127,836
* Putnam Invest- Putnam Voyager Purchases (45) 840,865 -- -- 840,865 840,865 --
ments Retirement Fund Sales (34) -- 69,725 -- 63,099 69,725 6,626
Plans
* Putnam Invest- Putnam Stable Purchases (82) 1,249,032 -- -- 1,249,032 1,249,032 --
ments Retirement Value Fund Sales (26) -- 101,441 -- 101,441 101,441 --
Plans =========== ======= ========== ========= ============= =======
</TABLE>
* Party in interest.
See accompanying independent auditors' report.
16
<PAGE>
EXHIBIT 23.1
The Board of Directors
The Centris Group, Inc.:
We consent to incorporation by reference in the registration statement (No. 33-
46841) on Form S-8 of The Centris Group, Inc. of our report dated May 14, 1998,
relating to the statements of net assets available for plan benefits with fund
information of The Centris Group, Inc. Employees' Savings Plan as of December
31, 1997 and 1996, the related statements of changes in net assets available for
plan benefits with fund information for the years then ended and related
schedules for the year ended December 31, 1997, which report appears in the
December 31, 1997 Annual Report on Form 11-K of The Centris Group, Inc.
Employees' Savings Plan.
/s/ KPMG Peat Marwick LLP
Los Angeles, California
June 19, 1998
