NCRIC Group, Inc. Reports First Quarter 2005 Results

NCRIC Group, Inc. (Nasdaq:NCRI):
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SUMMARY

NCRIC Group, Inc. announces net income of $636,000 or $0.10 per
diluted share for the first quarter of 2005. An investor call to
discuss the results will take place on Tuesday, May 10, 2005 at 9:00
a.m. The call access number is [phone] or [phone].
Questions regarding the first quarter results may be submitted via
e-mail to [e-mail] at any time before or during the
investor call. Only questions related to the first quarter results
will be answered on the call, as time permits (see the "Investor
Conference Call" section of this press release for more information).
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   NCRIC Group, Inc. (NCRIC)(Nasdaq National Market:NCRI) today
announced operating results for its first quarter ended March 31,
2005. For the quarter, net income was $636,000 or $0.10 per diluted
share, compared to $522,000 or $.08 per diluted share for the same
period in 2004. The results reflect higher revenue partially offset by
an increase in expenses.
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Unaudited Consolidated Financial Summary
(in thousands, except per share data)

                                                  Three months ended
                                                       March 31,
                                                    2005       2004
                                                 ---------   ---------
Gross premiums written                           $ 34,354    $ 34,253
                                                 =========   =========
Net premiums earned                              $ 17,843    $ 16,150
Net investment income                               1,915       1,670
Net realized investment gains                         302         333
Practice management                                 1,176       1,224
Other income                                          178         237
                                                 ---------   ---------
        Total revenues                             21,414      19,614

Losses and LAE incurred                            14,446      13,075
Underwriting expenses                               3,201       3,533
Practice management expenses                        1,345       1,234
Interest expense on trust preferred securities        254         202
Other expenses                                      1,134         952
                                                 ---------   ---------
        Total expenses                             20,380      18,996

Income before income taxes                          1,034         618

Income tax provision                                  398          96
                                                 ---------   ---------
Net income                                       $    636    $    522
                                                 =========   =========
Net income per common share:
       Basic                                     $   0.10    $   0.08
       Diluted                                   $   0.10    $   0.08



Unaudited Balance Sheet Highlights
(in thousands, except per share data)
                                              March 31,   December 31,
                                                2005         2004
                                             ----------- -------------
Total investments                             $ 214,760    $  202,307
Total assets                                    301,965       292,899
Liabilities for losses and LAE                  155,947       153,242
Accumulated other comprehensive gain (loss)        (166)        2,109
Total stockholders' equity                       70,602        72,015
Book value per share                          $   10.22    $    10.45
Tangible book value per share(1)              $    9.16    $     9.39


(1) Tangible book value consists of total stockholders' equity reduced
    by goodwill.
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   Commentary

   --  Gross premium written is flat due to a reduction in policies
        in force offset by new business written and the rise in
        premium rates. The following table provides gross premium
        written by jurisdiction (in thousands):
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                                    Three Months Ended March 31,
                               ---------------------------------------
                                     2005                  2004
                               -----------------     -----------------
District of Columbia           $  16,914     49%     $  16,290     48%
Virginia                           7,208     21%         7,820     23%
Maryland                           6,733     20%         6,342     18%
Delaware                           1,916      5%         1,466      4%
West Virginia                      1,583      5%         2,335      7%
                               ---------- ------     ---------- ------
Total                          $  34,354    100%     $  34,253    100%
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   --  Earned premium increased 10%, primarily due to rate increases
        on policies written over the past 12 months.

   --  Loss and loss adjustment expenses incurred do not include any
        development for prior year losses.

   --  The combined ratio improved by 3.9% primarily as a result of
        lower litigation expenses related to the Columbia Hospital for
        Women premium collection litigation.
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                                          Three Months Ended March 31,
                                            2005              2004
                                          ----------       -----------
Loss and LAE ratio                             81.0%             81.0%
Underwriting expense ratio                     17.9%             21.8%
                                          ----------       -----------
Combined ratio                                 98.9%            102.8%
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   --  Cash flow from operations was $9.8 million for the quarter
        ended March 31, 2005 compared to $15.5 million for the same
        period in 2004. The decreased cash flow was primarily due to
        higher payments on claims.

   --  There has been no change in the status of the premium
        collection litigation. Post-trial motions filed in March and
        April, 2004 continue to await a ruling by the trial court
        judge.

   --  The following table provides a comparison of "normalized"
        earnings per share by removing the impact of litigation costs,
        realized gains, and merger expenses:
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                                          Three Months Ended March 31,
                                          ----------------------------
                                            2005               2004
                                          ----------         ---------
Reported diluted earnings per share           $0.10             $0.08
     Add back CHW litigation costs             0.01              0.09
     Eliminate realized gains                 -0.03             -0.03
     Add back merger costs                     0.09              0.00
                                          ----------         ---------
"Normalized" diluted earnings per share       $0.17             $0.14
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   Outlook

   Our outlook for 2005 earnings has been reduced to take into
consideration the anticipated loss of business resulting from the
downgrade of the A.M. Best rating from "A-" (Excellent) with a stable
outlook to "B++" (Very Good) under review with negative implications.
Our earnings guidance for 2005, excluding any impact from
merger-related expenses, is $0.73 per share.

   Proposed Merger

   On February 28, 2005, we announced an agreement to merge NCRIC
Group, Inc. into ProAssurance Corporation. As previously announced, we
anticipate that the transaction will close in the third quarter of
this year. There will be a Special Meeting for shareholders to vote on
the transaction at a date that has yet to be determined. We have filed
a proxy statement for the Special Meeting under the cover of a
ProAssurance S-4 Registration Statement. This material is not yet
effective. Shareholders of NCRIC are urged to read the registration
statement and the proxy statement/prospectus when they become
available and any other relevant documents filed with the Securities
and Exchange Commission ("SEC"), as well as any amendments or
supplements to these documents, as they will contain important
information. You will be able to obtain a free copy of the proxy
statement/prospectus, as well as other filings containing information
about NCRIC and ProAssurance, at the SEC's Internet site
(http://www.sec.gov). Copies of the proxy statement/prospectus and the
SEC filings that will be incorporated by reference in the proxy
statement/prospectus can be obtained, without charge, by directing a
request to Eric R. Anderson, senior vice president, corporate
communications and investor relations, NCRIC Group, Inc., 1115 30th
Street, N.W., Washington, D.C. 20007, tel: [phone] or to Frank
B. O'Neil, senior vice president, corporate communications and
investor relations, ProAssurance Corporation, 100 Brookwood Place,
Birmingham, Alabama 35209.
   NCRIC Group, Inc. and its respective directors and executive
officers, may be deemed to be participants in the solicitation of
proxies from the stockholders of NCRIC in connection with the merger.
Information about the directors and executive officers of NCRIC and
their ownership of NCRIC common stock is set forth in the proxy
statement, dated April 26, 2005, for NCRIC's 2005 annual meeting of
stockholders, as filed with the SEC.

   Investor Conference Call

   An investor conference call will be held on Tuesday, May 10, 2005
at 9:00 AM ET to review the first quarter 2005 results. Investors and
analysts may access the conference call by dialing [phone] or
[phone]. The conference call will also be webcast in a
listen-only format on Streetevents.com and through the Investors
section of NCRIC's corporate website at www.ncric.com.
   NCRIC's proxy material for the Special Meeting of shareholders
(filed under cover of a ProAssurance S-4 Registration Statement) to
vote on the proposed merger with ProAssurance has not yet been
declared effective by the SEC. Therefore, pursuant to SEC regulations,
we are not in a position to discuss the merits or details of the
proposed merger during this call. To help assure compliance with this
restriction, only questions regarding the first quarter results will
be accepted and all questions must be submitted via e-mail at
[e-mail]. Questions may be submitted at any time
before or during the call and will be answered as time permits.
   A telephone replay will be available through May 17, 2005 at (888)
203-1112 or [phone], using access code 6067654. The webcast
will be archived and replays will be available for 12 months at
ncric.com.

   About NCRIC Group, Inc.

   NCRIC Group, Inc. (NCRIC) is a healthcare financial services
organization that assists individual physicians and groups of
physicians in managing their practices by providing medical
professional liability insurance, practice management and financial
services, and employee benefits plan design and pension
administration. In addition to its headquarters in Washington, D.C.,
NCRIC has offices in Wilmington, Delaware; Greensboro, North Carolina;
Richmond and Lynchburg, Virginia; and Charleston, West Virginia. NCRIC
provides services to more than 4,600 physician clients.

   Caution Regarding Forward-Looking Statements

   This news release contains historical information as well as
forward-looking statements that are based upon our estimates and
anticipation of future events that are subject to certain risks and
uncertainties that could cause actual results to vary materially from
the expected results described in the forward-looking statements. The
words "anticipate," "believe," "estimate," "expect," "hopeful,"
"intend," "may," "optimistic," "preliminary," "project," "should,"
"will," and similar expressions are intended to identify these
forward-looking statements. There are numerous important factors that
could cause our actual results to differ materially from those in the
forward-looking statements. Thus, sentences and phrases that we use to
convey our view of future events and trends are expressly designated
as forward-looking statements as are sections of this news release
clearly identified as giving our outlook on future business. The
principal risk factors that may cause actual results to differ
materially from those expressed in the forward-looking statements are
described in various documents we file with the Securities and
Exchange Commission, including Form 10K for the year ended December
31, 2004 and Form 10Q for the most recent quarter. These
forward-looking statements are subject to significant risks,
assumptions and uncertainties, including, among other things, the
following important factors that could affect the actual outcome of
future events:

   --  general economic conditions, either nationally or in our
        market area, that are worse than expected;

   --  regulatory and legislative actions or decisions that adversely
        affect our business plans or operations;

   --  price competition;

   --  inflation and changes in the interest rate environment the
        performance of financial markets and/or changes in the
        securities markets that adversely affect the fair value of our
        investments or operations;

   --  changes in laws or government regulations affecting medical
        professional liability insurance and practice management and
        financial services;

   --  changes to our ratings assigned by A.M. Best;

   --  the effect of managed healthcare;

   --  uncertainties inherent in the estimate of loss and loss
        adjustment expense reserves and reinsurance and changes in the
        availability, cost, quality, or collectibility of reinsurance;

   --  significantly increased competition among insurance providers
        and related pricing weaknesses in some markets;

   --  changes in accounting policies and practices, as may be
        adopted by our regulatory agencies and the Financial
        Accounting Standards Board;

   --  changes in our organization, compensation and benefit plans;
        and

   --  management may be focused on the merger instead of pursuing
        other opportunities that could be beneficial to the company.

   We wish to caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made, and
wish to advise readers that the factors listed above could affect our
financial performance and could cause actual results for future
periods to differ materially from any opinions or statements expressed
with respect to future periods in any current statements. We do not
undertake and specifically decline any obligation to publicly release
the result of any revisions that may be made to any forward-looking
statements to reflect events or circumstances after the date of such
statements or to reflect the occurrence of anticipated or
unanticipated events.