create your ellipse (circle) type your text. switch to the pick tool and fit your text to the path. (assuming you know how to apply as default) Next double click the text (while still active on path). this should select the text only. now you can drag the text away from the path. drag it below the lineso that it is inside the circle as your wanting.
or
create your ellipse. copy and paste the ellipse. reduce the size and fit your text to path. resize until your happy with the size and placement of the text inside the original ellipse. remove the outline and there you go