U. S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                    FORM 10-Q

          Quarterly Report Under Section 13 or 15(d) of the Securities
                              Exchange Act of 1934

                 For the quarterly period ended March 31, 2001

                         Commission File Number: 0-25505

                                NCRIC Group, Inc.
                               -------------------

      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 May 1, 2001,  there
were 3,714,455 shares of NCRIC Group, Inc. common stock outstanding.


<PAGE>


Table of Contents

PART I.    Financial Information                                          Page

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...   14

PART II.   Other Information

Item 1.    Legal Proceedings............................................   15
Item 6.    Exhibits and Reports on Form 8-K.............................   16


<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, 2001   December 31, 2000
                                                                                 (unaudited)
<S>                                                                                <C>             <C>
ASSETS

INVESTMENTS:
       Securities available for sale, at fair value:
            Bonds and U.S. Treasury Notes                                          $  90,035       $  91,482
            Equity securities                                                          6,836           6,563
                                                                                   ---------       ---------
                  Total securities available for sale                                 96,871          98,045

OTHER ASSETS:
       Cash and cash equivalents                                                      12,182           3,972
       Reinsurance recoverable                                                        27,274          27,549
       Goodwill, net                                                                   6,133           6,218
       Deferred income taxes                                                           2,065           1,918
       Other assets                                                                   10,419           8,162
                                                                                   ---------       ---------

TOTAL ASSETS                                                                       $ 154,944       $ 145,864
                                                                                   =========       =========

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES:
       Losses and loss adjustment expenses:
            Losses                                                                 $  54,771       $  55,785
            Loss adjustment expenses                                                  24,888          25,349
                                                                                   ---------       ---------
                  Total losses and loss adjustment expenses                           79,659          81,134
       Other liabilities:
            Retrospective premiums accrued under
                  reinsurance treaties                                                 3,604           5,478
            Unearned premiums                                                         19,382          11,472
            Bank debt                                                                  1,000              --
            Other liabilities                                                          7,889           6,331
                                                                                   ---------       ---------
TOTAL LIABILITIES                                                                    111,534         104,415
                                                                                   ---------       ---------

STOCKHOLDERS' EQUITY:
       Common stock $0.01 par value - 10,000,000 shares authorized; 3,725,355
            shares issued and outstanding (net of 17,500
            treasury shares)                                                              37              37
       Additional paid in capital                                                      9,465           9,455
       Unallocated common stock held by the ESOP                                        (863)           (889)
       Common stock held by the stock award plan                                        (442)           (476)
       Accumulated other comprehensive income (loss)                                     217            (744)
       Retained earnings                                                              35,127          34,197
       Treasury stock, at cost                                                          (131)           (131)
                                                                                   ---------       ---------

TOTAL STOCKHOLDERS' EQUITY                                                            43,410          41,449
                                                                                   ---------       ---------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                         $ 154,944       $ 145,864
                                                                                   =========       =========
</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,
                                                          2001              2000
<S>                                                      <C>               <C>
REVENUES:
       Net premiums earned                               $4,812            $3,629
       Net investment income                              1,558             1,594
       Net realized investment gains                         95                --
       Practice management and related income             1,538             1,375
       Other income                                         144               102
                                                         ------            ------

                  Total revenues                          8,147             6,700
                                                         ------            ------

EXPENSES:
       Losses and loss adjustment expenses                3,839             2,989
       Underwriting expenses                              1,269               940
       Practice management expenses                       1,339             1,214
       Other expenses                                       328               286
                                                         ------            ------

                  Total expenses                          6,775             5,429
                                                         ------            ------

INCOME BEFORE INCOME TAXES                                1,372             1,271

INCOME TAX PROVISION                                        442               393
                                                         ------            ------

NET INCOME                                               $  930            $  878
                                                         ======            ======

OTHER COMPREHENSIVE INCOME GAIN                             961            $  333
                                                         ------            ------

COMPREHENSIVE INCOME                                     $1,891            $1,211
                                                         ======            ======

Net income per common share:

Basic                                                    $ 0.26            $ 0.25
Diluted                                                  $ 0.26            $ 0.25

See notes to condensed consolidated financial statements.

</TABLE>

                                        4

<PAGE>

<TABLE>
<CAPTION>


NCRIC GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED (IN THOUSANDS)
------------------------------------------------------------------------------------------------------------

                                                                           Three Months Ended March 31,
                                                                            2001                 2000

CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                       <C>                  <C>
       Net income                                                         $    930             $    878
       Adjustments to reconcile net income
            to net cash flows from operating activities:
                  Net realized investment gains                                (95)                  --
                  Amortization and depreciation                                181                  155
                  Deferred income taxes                                       (642)                 707
                  Stock released for coverage of benefit plans                  70                   --
                  Changes in assets and liabilities:
                          Reinsurance recoverable                              275                1,501
                          Other assets                                      (2,233)              (3,396)
                          Losses and loss adjustment expenses               (1,475)              (3,348)
                          Retrospective premiums accrued under
                               reinsurance treaties                         (1,874)                (298)
                          Unearned premiums                                  7,911                6,949
                          Other liabilities                                    (87)              (1,918)
                                                                          --------             --------

            Net cash flows provided by operating activities                  2,961                1,230
                                                                          --------             --------

CASH FLOWS FROM INVESTING ACTIVITIES:
       Purchases of investments                                             (3,939)              (7,415)
       Sales, maturities and redemptions of investments                      9,858                7,962
       Investment in purchased business                                     (1,550)                  --
       Purchases of property and equipment                                    (120)                (158)
                                                                          --------             --------

            Net cash flows provided by investing activities                  4,249                  389
                                                                          --------             --------

CASH FLOWS FROM FINANCING ACTIVITIES:
       Proceeds from long-term debt                                          1,000                   --
                                                                          --------             --------

NET CHANGE IN CASH AND CASH EQUIVALENTS                                      8,210                1,619
                                                                          --------             --------

CASH AND CASH EQUIVALENTS,
       BEGINNING OF PERIOD                                                   3,972                5,407
                                                                          --------             --------

CASH AND CASH EQUIVALENTS,
       END OF PERIOD                                                      $ 12,182             $  7,026
                                                                          ========             ========

SUPPLEMENTARY INFORMATION:
       Cash paid for income taxes                                         $    100             $     --
                                                                          ========             ========

See notes to condensed consolidated financial statements

</TABLE>

                                        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
     accounting  principles  generally accepted in the United States of America.
     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, 2001 are not
     necessarily  indicative  of the results  that may be expected  for the year
     ending December 31, 2001. 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, 2000, which were
     filed with the Securities and Exchange Commission on Form 10-K.

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 or
     for the three-month periods ended March 31, 2001 and 2000 (in thousands):


                                              At or For the Three Months
                                                   Ended March 31,
                                             ---------------------------
                                               2001                2000
     Insurance                               -------             -------

     Revenues from external customers        $ 4,938             $ 3,713
     Net investment income                     1,541               1,571
     Depreciation and amortization                55                  58
     Segment profit before taxes               1,407               1,265
     Segment assets                          147,223             137,537
     Segment liabilities                     109,870             106,221
     Expenditures for segment assets              67                 144

                                       6
<PAGE>


                                              At or For the Three Months
                                                    Ended March 31,
                                             ---------------------------
                                               2001                2000
     Practice Management Services            -------             -------

     Revenues from external customers        $ 1,558             $ 1,393
     Net investment income                        19                  16
     Depreciation and amortization               126                  97
     Segment profit before taxes                 230                `187
     Segment assets                            8,239               6,481
     Segment liabilities                       2,769               1,044
     Expenditures for segment assets              53                  14

     Total

     Revenues from external customers        $ 6,496             $ 5,106
     Net investment income                     1,560               1,587
     Depreciation and amortization               181                 155
     Segment profit before taxes               1,637               1,452
     Segment assets                          155,462             144,018
     Segment liabilities                     112,639             107,265
     Expenditures for segment assets             120                 158

     The following are reconciliations of reportable segment revenues, net
     investment income, assets, liabilities, and profit before taxes to NCRIC
     Group's Company's consolidated totals (in thousands):

                                                    At or For the Three Months
                                                          Ended March 31,
                                                      ----------------------
                                                        2001          2000
                                                      ---------    ---------
Revenues:
 Total revenues for reportable segments               $   6,496    $   5,106
 Elimination of intersegment revenues                        (2)        --
                                                      ---------    ---------
 Consolidated total                                   $   6,494    $   5,106
                                                      =========    =========
Net investment income:
 Total investment income for reportable segments      $   1,560    $   1,587
 Elimination of intersegment income                          (2)        --
 Other unallocated amounts                                   --            7
                                                      ---------    ---------

 Consolidated total                                   $   1,558    $   1,594
                                                      =========    =========

Profit before taxes:
 Total profit for reportable segments                 $   1,637    $   1,452
 Other unallocated amounts                                 (265)        (181)
                                                      ---------    ---------
 Consolidated total                                   $   1,372    $   1,271
                                                      =========    =========

Assets:
 Total assets for reportable segments                 $ 155,462    $ 144,018
 Elimination of intersegment receivables                 (1,213)        (915)
 Elimination of affiliate receivables                       295         --
 Other unallocated amounts                                  400          441
                                                      ---------    ---------
 Consolidated total                                   $ 154,944    $ 143,544
                                                      =========    =========

                                       7
<PAGE>

                                                    At or For the Three Months
                                                          Ended March 31,
                                                     ------------------------
                                                       2001           2000
                                                     ---------      ---------

Liabilities:
  Total liabilities for reportable segments          $ 112,639      $ 107,265
  Elimination of intersegment payables                  (1,213)          (915)
  Other liabilities                                        108            159
                                                     ---------      ---------

  Consolidated total                                 $ 111,534      $ 106,509
                                                     =========      =========

3.   Earnings per Share

     The  following  table  sets  forth the  computation  of basic  and  diluted
     earnings per share (in thousands except per share data):

                                                For the Three Months Ended
                                                        March 31,
                                                --------------------------
                                                   2001          2000
                                                  ------        ------

Net income                                        $  930        $  878
                                                  ======        ======

Weighted average common
         shares outstanding - basic                3,526         3,529
Dilutive effect of stock options
         and awards                                   88             9
                                                  ------        ------

Weighted average common
         shares outstanding - diluted              3,614         3,538
                                                  ======        ======

Net income per common share:

Basic                                             $ 0.26        $ 0.25
                                                  ======        ======

Diluted                                           $ 0.26        $ 0.25
                                                  ======        ======

4.   Outstanding Bank Debt

     During March 2001,  NCRIC MSO, Inc.  borrowed $1 million from SunTrust Bank
     to  finance a portion  of the $1.55  million  contingent  purchase  payment
     related  to the  1999  acquisition  of  HealthCare  Consulting,  Inc.,  HCI
     Ventures,  LLC, and the assets of Employee Benefits Services, Inc. The term
     of the loan is 5 years at a floating rate of LIBOR plus 175 basis points.

5.   Treasury Stock

     On April 17, 2001, NCRIC Group repurchased  10,900 shares of its stock at a
     price of $8.75 per share.  The  repurchased  shares of Common Stock will be
     recorded  as  Treasury  Stock  which will be  reported  as a  reduction  of
     Stockholders' Equity.

                                       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  accounting  principles  generally  accepted in the
United  States of America,  GAAP,  unless  otherwise  noted.  GAAP  differs from
statutory accounting practices used by regulatory authorities in their oversight
responsibilities of insurance companies.

     In April,  NCRIC  announced its formation of American  Captive  Corporation
(ACC), a wholly owned subsidiary and the first captive  insurance  company to be
licensed in the District of Columbia under the Captive Insurance Act of 2000. As
a captive insurance company,  ACC was established to provide an alternative risk
financing  vehicle for affinity groups.  The captive program will be marketed to
organizations and groups wishing to finance and manage their own risk.

Consolidated net income

Three months ended March 31, 2001 compared to three months ended March 31, 2000

     Net income of $930,000 for the three months ended March 31, 2001  increased
6% from  $878,000  for the three months  ended March 31,  2000.  Both  operating
segments  contributed  to the  improved  results  with the  Practice  Management
Services  Segment up 23% and the  Insurance  Segment up 11%. The 2001  Insurance
Segment results include $95,000 (pre-tax) from net realized investment gains.

Net premiums earned

     Net premiums earned  increased by 33% to $4.8 million from $3.6 million for
the three  months ended March 31, 2001 and 2000,  respectively.  The increase is
primarily  reflective  of the increase in policies in force as the result of new
business  written  combined  with the increase in premium rates  effective  with
policy  anniversary  dates in 2001.  Additionally,  net premiums  earned through
March 31, 2001,  includes an increase of $182,000  over March 31,  2000,  due to
higher loss  experience in the  retrospective  programs.  Under these  programs,
additional  premiums  are  either  earned or  returned  based on a group's  loss
experience.

                                       9
<PAGE>

     Gross  premiums  written of $14.8  million for the three months ended March
31, 2001 increased by $3.7 million from $11.1 million for the three months ended
March 31, 2000, due to net new business  written  combined with the premium rate
increase  and some  changes in policy  effective  dates to January 1. The mix of
business  produced  directly by NCRIC versus by agents has changed between years
as shown on the following chart of new gross written premium.  The proportion of
business  produced by NCRIC's  independent  agency force has increased to 87% of
total new business written in the first quarter of 2001 from 51% during the same
period in 2000.

                                     Three Months Ended
                                          March 31,
                             ----------------------------------
                                 2001                   2000
                             ------------           -----------
          Direct             $    345,000           $   480,000
          Agent                 2,391,000               498,000

     While  insurance  in force  continues  to follow  the  historic  pattern of
insuring risks concentrated in the District of Columbia,  there has been notable
growth in net  earned  premium  in  Virginia,  largely as the result of sales by
agents and to clients of the Practice Management Services Segment. For the three
months  ended  March  31,  2001,  net  earned  premiums  from  Virginia  totaled
approximately  $874,000, an increase of $553,000 over the total of approximately
$321,000 for the three months ended March 31, 2000.

     During  2000,  it was  determined  that one of  NCRIC's  hospital-sponsored
retrospective  programs  would not be renewed.  Under this type of risk  sharing
program,  physicians are underwritten directly by NCRIC and pay lower individual
premiums than if not part of the risk-sharing  program. At the end of the policy
year  covered by the  premium,  a review of the actual  loss  experience  of the
physician group is completed. Should the group's loss experience be unfavorable,
NCRIC will require additional  premium payments from the sponsoring  hospital to
offset the unfavorable losses.

     Based on the actual  accumulated loss experience of the terminated  program
through  September 1, 2000, NCRIC billed the hospital sponsor $1.3 million under
terms of the contract based on actual loss  experience  through the  termination
date.  Additionally,  based on the  continuing  development  of loss  experience
through  the first  quarter of 2001,  $398,000 of net  premiums  earned has been
accrued related to additional amounts due to NCRIC from the hospital sponsor.

     Because the original 2000 bill was not paid when due, NCRIC initiated legal
proceedings  to collect.  NCRIC will use all means legally  available to collect
the amount it is due.  Although NCRIC  believes that it will prevail,  since the
premium  amount  is  disputed,   an  allowance  for  uncollectibility  has  been
established and is included in underwriting expense. The ultimate outcome cannot
be determined at this time.

Net investment income

     Net investment income decreased by $36,000 for the three months ended March
31,  2001  compared  to the first  quarter of 2000 due to a  decrease  in yields
partially offset by an increase in invested funds.  The average  effective yield
was approximately  5.93% for the three months ended March 31, 2001 and 6.25% for
the  three  months  ended  March  31,  2000.  The  tax   equivalent   yield  was
approximately  6.39%  for the  first  quarter  of 2001 and  6.58%  for the first
quarter of 2000. The decrease in investment  yields reflects the market decrease
in interest rates in 2001 compared to 2000.

                                       10
<PAGE>

Practice management and related revenue

     Revenue for practice  management and related  services is comprised of fees
for the services shown in the following chart.

                                                 Three Months Ended March 31,
                                                 ----------------------------
                                                  2001                   2000
                                                 -----                  -----

         Practice management                       42%                    43%
         Accounting                                28%                    28%
         Tax & personal financial planning         10%                    10%
         Retirement plan accounting & admin        13%                    14%
         Other                                      7%                     5%
                                                 -----                  -----
           Total                                  100%                   100%
                                                 =====                  =====

     Practice  management  and  related  revenue of $1.5  million  for the three
months  ended March 31, 2001 is up from $1.4  million for the three months ended
March 31,  2000.  The  increase  results  from both  recurring  fee business and
one-time consulting assignments.

Loss and loss adjustment expenses and combined ratio results

     While NCRIC  continues to experience  pressure from the rise in severity of
losses,  it continues to take a cautious approach in establishing and evaluating
reserves.  The  expense  for  incurred  losses  and  LAE net of  reinsurance  is
summarized as follows:

                                          Three months Ended March 31,
                                        -------------------------------
                                           2001                  2000
                                        ---------              --------
                                                (in thousands)
Incurred loss and LAE related to:
         Current year - losses          $  5,031               $  3,786
         Prior years - development        (1,192)                  (797)
                                        --------               --------
Total incurred for the period           $  3,839               $  2,989
                                        ========               ========

Following  is a  summary  of the  ratios  of losses  and  underwriting  expenses
compared to net premiums:

                                                  Three months Ended March 31,
                                                  ----------------------------
                                                    2001                2000
                                                  --------            --------

         Loss and LAE ratio                         79.8%               82.4%
         Underwriting expense ratio                 26.4%               25.9%
         Combined ratio                            106.2%              108.3%


                                       11
<PAGE>

     Total  incurred  loss and LAE expense of $3.8 million for the first quarter
of 2001  increased  by $850,000  from the $3.0  million  incurred  for the first
quarter of 2000.  The  increase in current  year losses to $5.0  million for the
first  quarter of 2001  reflects the  increase in the level of exposure  through
increased  insurance  in  force.  NCRIC  experienced  favorable  development  on
estimated  losses  for prior  years'  claims in both 2001 and 2000.  Prior  year
development  results from the  re-estimation and settlement of individual losses
not covered by reinsurance, which generally are losses under $500,000.

     The  combined  ratio of 106.2% for the three months ended March 31, 2001 is
down from the level for the previous  year's first  quarter as the result of the
increase  in net earned  premiums.  The  increase  in the  underwriting  expense
component  of  the  ratio  results  from  the  addition  to  the  allowance  for
uncollectible premiums receivable,  largely offset by the increase in net earned
premium.

Expenses

     Underwriting expenses increased $329,000 to $1,269,000 for the three months
ended March 31, 2001 from  $940,000  for the three  months ended March 31, 2000.
The increase in expenses  primarily stems from (1) the increase in new business,
particularly agent produced business, through increases in commissions and other
underwriting  costs,  and (2) an increase  in the  allowance  for  uncollectible
premiums.  The mix of business produced by NCRIC's  independent agency force has
increased  to 87% of new  business  written for the three months ended March 31,
2001 from 51% for the three months ended March 31, 2000.

     Practice  management  and related  expenses  of $1.3  million for the three
months  ended March 31, 2001 and $1.2  million for the three  months ended March
31, 2000  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  operations.  Other
expenses  of $328,000  for the three  months  ended  March 31,  2001  compare to
$286,000 for the three months ended March 31, 2000. Other expenses for the first
quarter  of 2001  include  $13,000  of  start-up  expenses  for the new  captive
insurance company subsidiary.

Federal income taxes

     The effective tax rate for NCRIC at 32% is lower than the federal statutory
rate principally due to nontaxable investment income.

                                       12
<PAGE>

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.

     For the three  months  ended  March 31,  2001,  NCRIC had cash  provided by
operations of $3.0 million compared to $1.2 million for the corresponding period
of 2000.  The  increased  level of positive  cash flow in 2001  compared to 2000
resulted  primarily  from  increased  premiums  combined  with a steady level of
payments of losses and LAE. 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 and
the proceeds of maturing  investments have primarily been invested in government
and  tax-exempt  securities.  As of March 31, 2001,  the  carrying  value of the
securities portfolio was $96.9 million, a decrease of $1.2 million from December
31, 2000. The portfolio was invested as follows:

                                             At March 31,     At December 31,
                                                2001               2000
                                                ----               ----
U. S. Government and agencies.............        9%                14%
Asset and mortgage-backed securities......       30                 32
Tax-exempt securities.....................       18                 16
Corporate bonds and equity securities.....       43                 38

     Over 73% of the portfolio was invested in U.S. Government/agency securities
or had a rating of AAA or AA. For  regulatory  purposes,  89% of the  securities
portfolio  was rated "Class 1" for all periods  presented,  which is the highest
quality rated group as classified by the NAIC.

     The $2.5 million line of credit available as of March 31, 2001 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.
NCRIC has no other material commitments for capital expenditures. Under terms of
the purchase agreement between NCRIC and the previous owners of HealthCare
Consulting, Inc., HCI Ventures, LLC, and Employee Benefits Services, Inc.,
contingency payments totaling $3.1 million could be paid in cash if the acquired
companies achieve earnings targets in 2000, 2001, and 2002. During 2000, the
earnings target was met and NCRIC paid the prior owners $1.55 million on March
30, 2001. During March, 2001, SunTrust Bank approved a loan to NCRIC in the
amount of $1,000,000 at an annual rate equal to LIBOR plus one and three-quarter
percent to finance the 2001 contingency payment.

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.

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<PAGE>

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    uncertainties associated with expanding business in new market areas,
          including uncertainties associated with claims adjudication
          experience;
     o    regulatory changes;
     o    ratings assigned by A.M. Best;
     o    the availability of bank financing and reinsurance;
     o    the mutual insurance holding company structure; and
     o    uncertainties associated with NCRIC Group's acquisition strategy.

     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

     NCRIC's investment portfolio is exposed to various market risks, including
interest rate and equity price risk. 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. At March 31, 2001, fixed maturity securities comprise
93% of total investments at market value. U.S. government and agencies and
tax-exempt bonds represent 29% of the fixed maturity securities. Equity
securities, consisting primarily of preferred stock, account for the remainder
of the investment portfolio. NCRIC has classified its investments as available
for sale.

     Because of the high percentage of fixed maturity securities, interest rate
risk represents the highest exposure NCRIC has on its investment portfolio. In
general, the market value of NCRIC's fixed maturity portfolio increases or
decreases in an inverse relationship with fluctuation in interest rates. During
periods of rising interest rates, 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. 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.

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<PAGE>

     Interest rates have decreased during the first three months of 2001,
resulting in an increase in the value of treasury bonds and improving the
carrying value of NCRIC's fixed maturity portfolio. At March 31, 2001, NCRIC's
fixed maturities were valued at $328,000 above amortized cost. At December 31,
2000, the value of the portfolio was $1.1 million below amortized cost.

     Generally, the longer the duration of the security, the more sensitive the
asset is to market interest rate fluctuations. To control the adverse effects of
the changes in interest rates, NCRIC's investment portfolio of fixed maturity
securities consists primarily of intermediate-term, investment-grade securities.
NCRIC's investment policy also provides that all security purchases be limited
to rated securities or unrated securities approved by management on the
recommendation of NCRIC's investment advisor. Approximately 61% of the portfolio
is Treasury or Agency related or rated AAA, the highest rating for a security.

     During the three months ended March 31, 2001, there was a change in the
allocation of NCRIC's portfolio increasing the percentage of tax-exempt and
corporate bonds to 59% of the total fixed maturity securities compared to 51% at
December 31, 2000. This has the potential to increase the market risk as less of
the portfolio is backed by the U.S. Government. Management of NCRIC, along with
NCRIC's external investment managers, seeks to maximize after-tax yields while
minimizing portfolio credit risk. The decision to reallocate the portfolio as
funds became available was based on this goal.


PART II  OTHER INFORMATION

Item 1. Legal proceedings.

     See the  Form  10-K  for the  fiscal  year  ended  December  31,  2000  for
information on pending litigation.

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<PAGE>

Item 6. Exhibits and Reports on Form 8-K.

     (a)  Exhibits

          3.2    Amended Bylaws of NCRIC Group, Inc.
          10.17  Amendment to Employment Agreement between NCRIC Group, Inc.
                 and R. Ray Pate, Jr.
          10.18  Amendment to Employment Agreement between NCRIC Group, Inc.
                 and Rebecca B. Crunk

     (b)  Reports on Form 8-K

          NCRIC  Group,  Inc.  did not file any  reports  on Form 8-K during the
          quarter ended March 31, 2001.

                                   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, 2001                             /s/    R. Ray Pate,  Jr.
                         -----------------------------------------------------
                         R. Ray Pate, Jr., President & Chief Executive Officer
                                        (Duly Authorized Officer)

May 9, 2001                            /s/     Rebecca  B. Crunk
                         ------------------------------------------------------
                                 Rebecca B. Crunk, Sr. Vice President &
                                         Chief Financial Officer
                                      (Principal Financial Officer)


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