<PAGE>


                                    FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

(Mark One)
[ X ]  QUARTERLY REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE
       SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 1997
                                       or
[   ]  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: 001-12099

                             The Centris Group, Inc.
                             -----------------------
             (Exact name of Registrant as specified in its charter)

           DELAWARE                                          33-0097221
  (State or other jurisdiction of                         (I.R.S. Employer
  incorporation or organization)                        Identification Number)

             650 Town Center Drive, Suite 1600, Costa Mesa, CA 92626
             -------------------------------------------------------
               (Address of principal executive offices) (Zip code)

                                 (714) 549-1600
                                 --------------
              (Registrant's telephone number, including area code)

                                 NOT APPLICABLE
                                 --------------
(Former name, former address and former fiscal year, if changed since last
 report.)

Indicate by check mark 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  preceding 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
   -------                                      ------
Number of shares outstanding of each class of the Registrant's Common Stock as
of November 7, 1997:
Common Stock, par value $.01 per share:   6,027,148
Common Stock Purchase Rights:             6,027,148




                                       1
<PAGE>


                                      INDEX


Part I     FINANCIAL INFORMATION

       Item 1.  FINANCIAL INFORMATION
                     Unaudited Condensed Consolidated Financial Statements:

                Balance Sheets at September 30, 1997 and
                     December 31, 1996........................................3

                Income Statements for the Quarters  and Nine Months Ended
                     September 30, 1997 and 1996..............................4

                Statements of Cash Flows for the Nine Months Ended
                     September 30, 1997 and 1996..............................5

                Notes to Condensed Consolidated Financial Statements..........6

       Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF
                OPERATIONS....................................................7

Part II    OTHER INFORMATION


       Item 6.  EXHIBITS and REPORTS ON FORM 8-K.............................14

SIGNATURES...................................................................16



                                       2
<PAGE>


                          PART I FINANCIAL INFORMATION

Item 1.   FINANCIAL INFORMATION
               Unaudited Condensed Consolidated Financial Statements:

                             The Centris Group, Inc.
                      Condensed Consolidated Balance Sheets
                             (Dollars in Thousands)

<TABLE>
ASSETS
<CAPTION>

                                                               September 30, 1997             December 31, 1996
                                                               ------------------             -----------------
                                                                  (Unaudited)
   <S>                                                               <C>                           <C>
   Investments, at market (amortized cost
   $205,580 at September 30,1997, $185,472
   at December 31,1996)                                              $211,996                      $194,352
   Cash and invested cash                                              11,827                        11,132
   Restricted cash and short term investments                          27,721                        23,771
   Accrued investment income                                            2,552                         2,653
   Receivables:
        Reinsurance losses and reserves                                26,446                        23,975
        Premiums                                                       18,309                        16,841
   Prepaid reinsurance premiums                                         8,054                         6,495
   Deferred policy acquisition costs                                    4,697                         3,644
   Other assets                                                        11,820                         5,880
                                                                     --------                      --------

     Total assets                                                    $323,422                      $288,743
                                                                     ========                      ========

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities
  Insurance liabilities:
     Amounts due insurance companies                                $  32,757                     $  27,148
     Losses and loss adjustment expenses                              112,626                        94,669
     Unearned premiums                                                 31,099                        22,936
  Note payable                                                         33,125                        35,000
  Accounts payable and accrued expenses                                 2,297                         6,626
                                                                    ---------                     ---------

     Total liabilities                                                211,904                       186,379

Stockholders' Equity                                                  111,518                       102,364
                                                                    ---------                     ---------

     Total liabilities and stockholders' equity                      $323,422                      $288,743
                                                                     ========                      ========
</TABLE>

See accompanying notes to condensed consolidated financial statements.



                                       3
<PAGE>



                             The Centris Group, Inc.
                    Condensed Consolidated Income Statements

                  (Dollars in Thousands, except per share data)

<TABLE>
<CAPTION>
                                                                 Quarter Ended              Nine Months Ended
                                                                 September 30                 September 30
                                                                 ------------                 ------------

                                                            1997             1996          1997            1996
                                                            ----             ----          ----            ----
                                                        (unaudited)                    (unaudited)
    <S>                                                 <C>              <C>           <C>           <C>
    Revenues:
       Premiums earned                                  $ 38,733         $ 31,047      $116,119      $   89,906
       Commissions and fees                                7,728            6,578        23,910          19,472
       Net investment income                               2,711            2,570         8,114           7,538
       Realized investment gains                           9,767              330        10,022           1,056
                                                        --------         --------      --------      ----------

         Total revenues                                   58,939           40,525       158,165         117,972
                                                        --------         --------      --------      ----------

    Operating Expenses:

       Losses and loss adjustment expenses
         incurred                                         36,698           21,953        92,220          63,647

       Policy acquisition expenses                        10,962            9,111        33,954          26,803
       General and administrative expenses                 4,819            3,755        13,720          10,679
       Interest                                              615              615         1,843           1,994
                                                       ---------        ---------      --------       ---------
         Total operating expenses                         53,094           35,434       141,737         103,123
                                                       ---------        ---------      --------       ---------

    Income before income taxes                             5,845            5,091        16,428          14,849

         Income tax expense                                1,819            1,382         4,994           3,747
                                                       ---------        ---------      --------       ---------

    Net income                                         $   4,026        $   3,709      $ 11,434       $  11,102
                                                       =========        =========      ========       =========

    Net income per common and common
    equivalent share                                   $     .66        $     .62      $   1.88       $    1.86
                                                       =========        =========      ========       =========

    Weighted average number of common and common
    equivalent shares outstanding during period            6,136            5,987         6,098           5,970
                                                       =========        =========      ========       =========


</TABLE>

   See accompanying notes to condensed consolidated financial statements.


                                       4
<PAGE>


                             The Centris Group, Inc.
                 Condensed Consolidated Statements of Cash Flows
                             (Dollars in Thousands)
<TABLE>
<CAPTION>

                                                           Nine Months Ended September 30,
                                                                1997                 1996
                                                                ----                 ----
                                                             (unaudited)
<S>                                                        <C>                   <C>
Cash provided by operating activities                      $   13,792            $   24,240
                                                           ----------            ----------

Cash flows from investing activities:

    Purchases of fixed maturity investments                   (44,927)              (31,268)
    Purchases of equity securities                            (13,976)               (4,420)
    Proceeds from sales of investment securities               48,990                20,549
    Net purchases of short term
    investments                                                   197                (4,665)
    Purchases of property and equipment                          (916)               (1,603)
                                                           -----------           -----------

Cash used in investing activities                             (10,632)              (21,407)
                                                           -----------           -----------

Cash flows from financing activities:
    Payment on note payable                                    (1,875)                   --
    Dividends paid                                             (1,076)               (1,055)
    Exercise of stock options                                     486                 1,320
                                                           -----------           -----------

Cash (used in) provided by financing activities                (2,465)                  265
                                                           -----------           -----------

Net (decrease) increase in cash and invested cash                 695                 3,098

Cash and invested cash at beginning of period                  11,132                 8,165
                                                           -----------           -----------

Cash and invested cash at end of period                     $  11,827             $  11,263
                                                            =========             =========

Supplemental disclosure of cash flow information:

Interest paid                                               $   1,747             $   1,904
                                                            =========             =========

Income taxes paid, net                                      $   4,001             $   2,770
                                                            =========             =========

</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       5
<PAGE>


                             The Centris Group, Inc.
              Notes to Condensed Consolidated Financial Statements

1.    General

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally  accepted  accounting  principles and with
the  instructions  to Form 10-Q.  Accordingly,  they do not  include  all of the
information and footnotes required by generally accepted  accounting  principles
for complete financial statements. In the opinion of management, all adjustments
(consisting only of normal recurring accruals)  considered  necessary for a fair
presentation  have been included.  The results of operations for the nine months
ended  September 30, 1997, are not necessarily indicative  of the results to be
expected for the full year. For further  information,  refer to the consolidated
financial  statements and footnotes thereto for the year ended December 31, 1996
included in the 1996 Annual Report to Stockholders  of The Centris Group,  Inc.,
formerly known as US Facilities Corporation, (the "Company").

2.    Other

SFAS No. 128, "Earnings per Share" and SFAS No. 129,  "Disclosure of Information
about  Capital  Structure"  will be  adopted by the  Company  for the year ended
December 31, 1997.  Adoption of these  pronouncements  is not expected to have a
material  effect on the financial  statements or the related  disclosures of the
Company.

3.    Acquisitions

Effective  as of January 1, 1997, the Company  acquired  the medical  stop loss
business of Global Excess Re, Inc.  Effective as of August 1, 1997,  the Company
acquired  Interra  Reinsurance  Group which  focuses on niche and  special  risk
accident and health insurance products and reinsurance products and services. On
September 30, 1997, the  Company's  wholly-owned  subsidiary  USF RE  INSURANCE
COMPANY  acquired the  operations  of  Allmerica  Re from The Hanover  Insurance
Company.  Each of  these  transactions  were  accounted  for as  purchases.  The
purchase  transactions  were not  material to the  financial  statements  of the
Company.   The  results  of  operations  of  each  entity  since  the  effective
acquisition  dates  are  included  in the  accompanying  condensed  consolidated
financial statements.


                                       6
<PAGE>


Item 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          CONDITION AND RESULTS OF OPERATIONS

Results Of Operations
---------------------

Consolidated  revenues  of  The  Centris  Group,  Inc.,  formerly  known  as  US
Facilities  Corporation,  (the  "Company")  increased 45% to $58,939,000 for the
third  quarter  ended  September  30,  1997 from  $40,525,000  in the 1996 third
quarter,  and  increased 34% to  $158,165,000  for the first nine months of 1997
from  $117,972,000 for the 1996 nine month period.  Increases in premiums earned
and  commission  and fee  income in the 1997  periods  as  compared  to the 1996
periods were primarily attributable to growth in the property/casualty  segment,
additional  medical stop-loss  business resulting from the acquisition of Global
Excess Re in January 1997, and increased production of provider excess coverage.
Increases in net investment income in the 1997 periods result from higher levels
of invested  assets.  To lessen its  exposure to stock  market  volatility,  the
Company  realized  $9,610,000 in pre-tax gains from its equity  portfolio during
the quarter.

Consolidated net income increased 8% to $4,026,000 for the third quarter of 1997
from  $3,709,000 in the third quarter of 1996, and was $11,434,000 for the first
nine months of 1997 as compared to  $11,102,000  in the 1996 nine month  period.
Net income for the 1997  periods as compared to the 1996  periods  reflects  the
changes in  revenues  noted  above,  an increase  in medical  lines  reserves of
$8,000,000  resulting  from  additional  development  on medical lines  business
written  during the second half of 1996 and the first half of 1997 and increases
in income tax expenses.  General and administrative  expenses remained below 10%
of revenues  in all periods  presented  as the  Company  continued  its focus on
productivity and expense control.

Income  taxes as a  percentage  of pre-tax  income  fluctuate  depending  on the
proportion of tax exempt investment  income to total pre-tax income,  the effect
of other  permanent  differences  and the  proportion of total income subject to
state income taxes.

Insurance and reinsurance  companies  establish reserves for losses incurred but
not yet paid in order to match such losses with the related premiums earned. The
process of  establishing  loss reserves is subject to  uncertainties  that are a
normal,  recurring  aspect of the insurance  business  which requires the use of
informed  judgments and  estimates.  Loss and loss  adjustment  expense  reserve
development  is reviewed on a regular basis,  incorporating  analysis of current
trends,  market  changes  in the  Company's  business  segments  and  historical
experience  to  analyze  the  Company's  actuarial  assumptions.  As  additional
experience and other data becomes available,  the Company's  actuarial estimates
may be revised. Such revisions may impact earnings.  Policy acquisition expenses
vary on the basis of market conditions and mix of business.


The  statutory  combined  ratio is the  traditional  indicator of the  potential
underwriting  profitability  of  an  insurance  company's  business.   Statutory


                                       7
<PAGE>


combined  ratios are  presented in  conformity  with rating  agency and industry
association  presentations  which include  insurance  company net management fee
revenues in calculating  such ratios.  The Company's  statutory  combined ratios
were 106.4 and 97.9 for the nine month  periods  ended  September  30,  1997 and
1996, respectively.

Acquisitions
------------

During the third  quarter of 1997,  the  Company  acquired  INTERRA  Reinsurance
Group,  an  Indianapolis  based  company which focuses on niche and special risk
accident and health insurance products and reinsurance products and services. It
is anticipated that INTERRA will bring fee income and underwriting opportunities
for the  Company's  risk  assumption  businesses  in one of the fastest  growing
sectors  of the  reinsurance  industry  --  international  accident  and  health
reinsurance. INTERRA will serve as an accident and health reinsurance manager on
behalf of the Company's  wholly-owned  subsidiary USF RE INSURANCE COMPANY ("USF
RE"), as well as provide risk management  services across the entire enterprise.
There has been an  accelerating  demand for private  healthcare  throughout  the
world as nationalized healthcare systems can no longer afford to provide quality
care for their growing populations. INTERRA's track record in providing accident
and health related products and services to clients in Europe, South America and
South Africa will  accelerate  the Company's  ability to implement its strategic
initiative in this dynamic  industry  sector.  INTERRA  managed in excess of $35
million of premium and  generated in excess of $2 million of fee and  commission
revenue in 1996.

In late September, 1997, USF RE acquired the operations of Allmerica Re from The
Hanover Insurance Company, a subsidiary of the Allmerica Financial  Corporation.
The addition of an east coast USF RE treaty branch office  through the Allmerica
Re acquisition will enhance the growth and development of the  property/casualty
treaty  reinsurance  business.  The  acquisition  also  brings  to  the  Company
underwriting  expertise in marine and  international  reinsurance  which will be
areas  of  future  growth  for USF  RE.  This  acquisition  is  expected  to add
approximately $24 million of premium in 1998 as the existing business is renewed
in USF RE, and will give USF RE an  immediate  presence  in the  eastern  United
States.

The Company continues to actively pursue accretive acquisition  opportunities in
complementary business lines.


                                       8
<PAGE>


Business Segments
-----------------

The Company conducts business in two segments:


Medical lines which includes  medical  stop-loss and provider  excess  coverages
underwritten by the Company's  subsidiary,  USBenefits Insurance Services,  Inc.
("USBenefits") on behalf of The Continental  Insurance Company  ("Continental"),
one of the  CNA  Insurance  Companies,  as well  as  reinsurance  of 50% of such
business  by the  Company's  USF RE  INSURANCE  COMPANY  ("USF RE")  subsidiary.
USBenefits is the managing  general  underwriter and marketing  organization for
medical lines coverages issued by Continental.  Medical stop-loss  coverage is a
form of insurance  that  protects  employers  that  self-insure  their  employee
healthcare  plans  by  limiting  their  exposure  from  the  risk  of  loss to a
pre-established  amount.  Provider  excess  coverage  limits the financial risks
healthcare  providers  face from medical plans that prepay the  providers  fixed
sums per plan  participant  (capitated  fees) or  provide  specified  rates  for
services.  USBenefits also markets other employee  benefits  related products on
behalf of several national life insurance companies.  Medical lines products are
marketed through a network of unaffiliated third party administrators, insurance
agents,  brokers and  consultants  ("Producers").  Producers have  non-exclusive
arrangements  with  USBenefits  that enable them to submit requests for coverage
quotations.

Property/Casualty  reinsurance and insurance underwriting is conducted by USF RE
and  its  wholly-owned  subsidiary,   USF  Insurance  Company  ("USFIC").  These
subsidiaries  both carry an A (Excellent)  rating from A.M. Best Company and USF
RE is  assigned  a claims  paying  ability  rating of Aq by  Standard  & Poor's.
Insurance companies purchase reinsurance in order to control and manage the risk
they  accept  when  they  issue  policies.  USF RE  assumes,  primarily  through
reinsurance intermediaries, facultative and treaty reinsurance from unaffiliated
insurance  companies.  Facultative is reinsurance of an individual  risk;  while
reinsurance  treaties  cover  risks  written or assumed by another  insurer in a
particular  class or classes  of  business.  USF RE  concentrates  its  casualty
writings in general liability, commercial auto liability and products liability.
It also  provides  a broad  range  of  coverages  for  most  types  of  property
exposures. USFIC writes surplus lines insurance on commercial  property/casualty
risks which are marketed through independent excess and surplus lines brokers.

The tables set forth below present  pre-tax  operating  information  by business
segment  and  holding  company  operations  (including  realized  gains) for the
quarters and nine month periods ended September 30, 1997 and 1996, respectively.


                                       9
<PAGE>



Medical lines
-------------

(Dollars in Thousands)
<TABLE>
<CAPTION>
                                                    Quarter Ended                  Nine Months Ended
                                                    September 30                      September 30
                                                    ------------                      ------------

                                             1997       1996     %Change        1997       1996   %Change
                                             ----       ----     -------        ----       ----   -------
       <S>                                 <C>        <C>          <C>       <C>        <C>         <C>
       Revenues:

           Premiums earned                 $ 24,076  $ 21,215      13%       $ 74,646   $ 61,422    22%
           Commissions and fees               7,728     6,578      17%         23,910     19,472    23% 
           Investment income                    900       856       5%          2,651      2,453     8%
                                           --------  --------                --------   --------

           Total revenues                    32,704    28,649      14%        101,207     83,347    21%
                                           --------  --------                --------   ---------

       Expenses:

           Losses and loss adjustment        25,372    15,116      68%         61,482     42,511    45%
           Policy acquisition                 8,075     7,132      13%         25,644     20,851    23%
           General and  administrative        3,443     2,493      38%         10,036      7,277    38%
                                           --------  --------                --------   --------
           Total expenses                    36,890    24,741      49%         97,162     70,639    38%
                                           --------  --------                --------   --------

       Income before income taxes          $ (4,186)  $ 3,908      --        $  4,045   $ 12,708   -68%
                                           =========  =======               =========   ========
</TABLE>


Increases  in revenues  for the 1997  periods are due to growth in the  provider
excess line and  additional  medical stop loss business from the  acquisition of
Global Excess Re in January 1997. As a result,  medical lines segment production
increased  in the 1997  periods over the 1996  periods,  generating  the changes
noted above in premiums earned and commissions and fees revenues.

The change in medical lines pre-tax income  reflects third quarter  additions of
$8 million to medical  lines  reserves.  The  Company  continually  reviews  its
reserves as new  information  becomes  known and claim trends  become more fully
developed.  The Company's  third quarter  reserve  review  indicated  additional
development on medical lines business written during the second half of 1996 and
the first half of 1997. In addition,  continuing competitive industry conditions
resulted in less improvement in premium rate levels than expected.  This factor,
combined with the first half increases in the severity and frequency of specific
and aggregate claims, resulted in the increase in medical lines reserves.

During the third  quarter,  the  Company  implemented  a variety of pricing  and
underwriting  actions to support the underwriting  profitability of this line of
business.  The principal  component of these actions is to obtain rate increases
in line with claims  experience.  Since  healthcare  costs vary depending on the
size and  nature  of the claim  and the  geographic  region,  the  Company  also
reviewed  its  geographic  distribution  which  resulted  in rating  actions  in
specific  regions of the country  where  appropriate.  In addition,  the Company
reviewed its producer network and reduced the amount of business written through



                                       10
<PAGE>



producers whose books of business have been less  profitable.  These actions may
result in a lower case count, but higher premiums per case, and are not expected
to materially  affect overall total premium  production.  The Company expects to
continue  reserving  prudently  in  recognition  that  the  market  will  remain
competitive  and expects  that these  actions  will  enhance the  stability  and
long-term profitability of the medical lines business.

Policy acquisition expenses vary due to the level of production activity, mix of
business and market conditions. Increases in general and administrative expenses
in the 1997 periods  primarily result from expenses related to the operations of
the January acquisition of Global Excess Re.

Property/Casualty
-----------------

(Dollars in Thousands)
<TABLE>
<CAPTION>

                                                   Quarter Ended                    Nine Months Ended
                                                   September 30                       September 30
                                                   -------------                      ------------

                                           1997       1996       % Change      1997      1996      % Change
                                           ----       ----       --------      ----      ----      --------
       <S>                               <C>        <C>              <C>     <C>       <C>            <C>
       Revenues:
           Premiums earned               $ 14,657   $  9,832         49%     $ 41,473  $ 28,484       46%
           Investment income                1,801      1,700          6%        5,427     5,039        8%
                                         --------   --------                 --------  --------

           Total revenues                  16,458     11,532         43%       46,900    33,523       40%
                                         --------   --------                 --------  --------

       Expenses:

           Losses and loss adjustment      11,326      6,837         66%       30,738    21,136       45%
           Policy acquisition               2,887      1,979         46%        8,310     5,952       40%
           General and administrative       1,111      1,057          5%        2,922     2,779        5%
                                         --------   --------                 --------   -------

           Total expenses                  15,324      9,873         55%       41,970    29,867       41%
                                         --------   --------                 --------   -------

       Income before income taxes         $ 1,134    $ 1,659        -32%      $ 4,930   $ 3,656       35%
                                          =======    =======                  =======   =======
</TABLE>

Revenue growth in property/casualty lines in the 1997 periods as compared to the
1996  periods  was the result of the treaty  reinsurance  operations'  continued
expansion and increased  marketing  efforts.  Facultative  property and casualty
lines  also  grew,  but at a  slower  rate  due to an  increasingly  competitive
marketplace.  Increases in premium  earned from  facultative  reinsurance  lines
reflects a focus on low layer excess accounts and program business.

The increase in policy  acquisition  expenses in the 1997 periods as compared to
1996 results from the continued growth of the  property/casualty  business lines
and changes in the mix of business.


                                       11
<PAGE>


Differences in pre-tax income between the quarters  primarily  reflect increases
in treaty  writings  which carry a higher  formula  loss ratio than  facultative
business.


Holding Company
---------------

(Dollars in Thousands)
<TABLE>
<CAPTION>
                                                    Quarter Ended                    Nine Months Ended
                                                     September 30                      September 30
                                                     ------------                      ------------

                                             1997       1996     % Change       1997       1996       %Change
                                             ----       ----     --------       ----       ----       -------
       <S>                                <C>         <C>          <C>      <C>          <C>            <C>
       Revenues:
           Investment income              $    10     $   14       -29%     $     36     $   46         -22%
           Realized gains                   9,767        330        --        10,022      1,056          --
                                          -------     ------                --------     ------

           Total revenues                   9,777        344        --        10,058      1,102          --
                                          -------     ------                --------     ------

       Expenses:

           General and administrative         265        205        29%          762        623          22%
           Interest                           615        615        --         1,843      1,994          -8%
                                          -------     ------                --------     ------
                                             
           Total expenses                     880        820         7%        2,605      2,617          --
                                          -------     ------                --------     ------
                                             
       Gain (loss) before income taxes    $ 8,897     $ (476)       --       $ 7,453    $(1,515)         --
                                          =======     =======                =======    ========
</TABLE>

Increases   in  general   and   administrative   expenses   result  from  higher
infrastructure  costs in the 1997 periods to support the growth of the Company's
business  lines.  Declines in interest  expenses in the 1997  nine-month  period
result  from  quarterly  reductions  in the  outstanding  balance  of bank debt,
principal  payments  on which  commenced  March 31,  1997,  and  changes  in the
variable interest rate charged on the outstanding balance.

Inflation
---------

Inflation can negatively impact insurance and reinsurance  operations by causing
higher claims  settlements  than may have originally  been estimated,  while not
necessarily  allowing an immediate  increase in premiums to a level necessary to
maintain  profit  margins.  Historically,  the  Company  has  made  no  explicit
provisions for inflation,  but trends are considered  when setting  underwriting
terms and claim  reserves.  Such reserves are subjected to a continual  internal
and external  review process to assess their adequacy and are adjusted as deemed
appropriate.  Overall economic trends also affect interest rates,  which in turn
affect  investment  income  and the  market  value of the  Company's  investment
portfolio.



                                       12
<PAGE>


Liquidity and Capital Resources
-------------------------------

The Company  utilizes cash from operations and maturing  investments to meet its
insurance  obligations  to  policyholders  and  claimants,  as  well  as to meet
operating  costs.  Primary  sources  of cash  from  operations  include  premium
collections,  investment  income and commissions and fees. The principal uses of
cash from operations are for premium payments to insurance  companies,  payments
of claims under USF RE's and USFIC's reinsurance and insurance  contracts,  debt
reduction,  and  operating  expenses  such as salaries,  commissions,  taxes and
general  overhead.  The Credit  Agreement  with the  Company's  lender  contains
certain covenants,  restrictions and dividend payment limitations with which the
Company was in compliance at September 30, 1997.

The Company  anticipates that it will continue to generate  sufficient cash flow
from  operations to cover its short-term  (1-18 months) and long-term (18 months
to 3 years) liquidity needs.  While the Company currently has no immediate plans
for significant capital outlays,  from time to time it contemplates  acquisition
opportunities that complement its business operations.

The   Company's   investment   portfolio   reflects  a  current   allocation  of
approximately 94% in fixed-income investments, both taxable and tax preferenced,
and 6% in equities,  with an "AA" average  fixed income  portfolio  rating.  The
portfolio  is not exposed to real estate  investments,  derivatives,  high yield
bonds,  private placements or mortgage loans. All such securities are carried at
quoted market values at the latest balance sheet date.

Forward Looking Statements
--------------------------

Some of the statements included within  Management's  Discussion and Analysis of
Financial  Condition and Results of Operations  and the  Consolidated  Financial
Statements and related Notes may be considered to be forward looking  statements
(as that term is  defined in the  Private  Securities  Litigation  Reform Act of
1995),  and which are subject to certain  risks and  uncertainties.  Among those
factors  which could cause the actual  results to differ  materially  from those
suggested by such statements are:  catastrophe losses in the Company's insurance
lines or a  material  aggregation  of  losses;  changes  in federal or state law
affecting  an  employer's  ability  to  self-insure;  availability  of  adequate
retrocessional  insurance  coverage  at  appropriate  prices;  a downturn in the
general economy;  uncertain acceptance of the Company's products; the effects of
competitive  market  pressures  within the  medical  lines or  property/casualty
marketplaces;  the effect of changes required by generally  accepted  accounting
practices or statutory accounting practices; and other risks which are described
from time to time in the  Company's  filings  with the  Securities  and Exchange
Commission.



                                       13
<PAGE>



                            PART II OTHER INFORMATION


Item 6.           EXHIBITS and REPORTS ON FORM 8-K.

     (a)  The following is a list of exhibits required to be filed as part of
          this Form 10-Q by Item 601 of Regulation S-K:

          3.1, 4.1         Restated   Certificate  of   Incorporation,   as
                           amended,  as presently  in effect.  Filed as Exhibits
                           3.1 and 3.1.1 to the Company's Form S-1  Registration
                           Statement  declared  effective by the  Securities and
                           Exchange   Commission   on  October   31,  1986  (the
                           "Registration Statement"), and incorporated herein by
                           this reference; as Exhibit 3 to the Company's Current
                           Report  on  Form  8-K  dated   May  24,   1990,   and
                           incorporated herein by this reference; and as Exhibit
                           3(i) to the  Company's  Current  Report  on Form  8-K
                           dated May 14, 1997, and  incorporated  herein by this
                           reference.

          3.2, 4.2         Bylaws of the Company,  as amended,  as presently
                           in effect.  Filed under the Company's  former name as
                           Exhibit 4.2 to the Company's Quarterly Report on Form
                           10-Q for the quarter ended  September  30, 1994,  and
                           incorporated herein by this reference.

               4.3         Common Stock  Certificate of The Centris Group, Inc.
                           Filed as Exhibit 4.3 to the Company's Quarterly 
                           Report on Form 10-Q for the quarter ended June 30,
                           1997, and incorporated herein by this reference.

               4.4         Rights Agreement. Filed as Exhibit 2 to the Company's
                           Current Report on Form 8-K dated May 24, 1990, and
                           incorporated herein by this reference.

               4.5         First Amendment to Rights Agreement.  Filed as 
                           Exhibit 1 to the Company's Current Report on Form 8-K
                           dated January 16, 1992, and incorporated herein by
                           this reference.

               4.6         Second Amendment to Rights Agreement.  Filed as
                           Exhibit 10.1 to the Company's Current Report on Form
                           8-K dated April 29, 1994, and incorporated herein by
                           this reference.

               4.7         Third Amendment to Rights Agreement.  Filed as
                           Exhibit 4 to the Company's Current Report on Form
                           8-K dated September 28, 1995, and incorporated herein
                           by this reference.



                                       14
<PAGE>


               4.8         Fourth  Amendment to Rights Agreement.  Filed as
                           Exhibit 1 to the Company's Current Report on Form
                           8-K dated July 23, 1997, and incorporated herein by
                           this reference.

               10.1*       Agreement of Employment between the Company and Mark
                           A. Carney effective as of September 6, 1997.

               10.2*       Severance  Agreement dated September 7, 1997 between
                           the Company and Mark A. Carney.

               10.3*       Severance Agreement dated July 23, 1997 between the
                           Company and Charles M. Caporale.

               11*         The Centris Group, Inc. and Subsidiaries Computation
                           of Earnings Per Share.

               15*         Independent Auditors' Review Report regarding 
                           unaudited interim financial information.

               27*         Financial Data Schedules

     (b)       During the third quarter of 1997 the Company filed with the
               Securities and  Exchange  Commission  a Current  Report on Form
               8-K dated July 23, 1997, reporting  that effective as of July 23,
               1997, the Company and American Stock Transfer & Trust  Company,
               as Rights Agent, adopted a Fourth Amendment to the Rights
               Agreement adopted by the Company on May 24, 1990,  and as
               subsequently amended.  For a detailed description of the
               foregoing Fourth Amendment reference is made to aforenoted Form
               8-K.


*    Describes exhibits filed with this Quarterly Report on Form 10-Q.



                                       15
<PAGE>




                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

The Centris Group, Inc.



Date:  November 12, 1997                 By: /S/DAVID L. CARGILE
                                            --------------------
                                            DAVID L. CARGILE
                                            Chairman of the Board, President and
                                            Chief Executive Officer



Date:  November 12, 1997                 By: /S/CHARLES M. CAPORALE
                                             ----------------------
                                             CHARLES M. CAPORALE
                                             Senior Vice President, Chief
                                             Financial Officer and Treasurer
                                             (Principal Financial and Accounting
                                             Officer)



                                       16
<PAGE>