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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001209191-11-001393.txt : 20110104
<SEC-HEADER>0001209191-11-001393.hdr.sgml : 20110104
<ACCEPTANCE-DATETIME>20110104202721
ACCESSION NUMBER:		0001209191-11-001393
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20110103
FILED AS OF DATE:		20110104
DATE AS OF CHANGE:		20110104

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			BLITZER MICHAEL
		CENTRAL INDEX KEY:			0001458423

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08007
		FILM NUMBER:		11508640

	MAIL ADDRESS:	
		STREET 1:		1270 BROADWAY, SUITE 1009
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10001

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SIGNATURE GROUP HOLDINGS INC
		CENTRAL INDEX KEY:			0000038984
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				952815260
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		175 N. RIVERVIEW DRIVE
		CITY:			ANAHEIM
		STATE:			CA
		ZIP:			92808
		BUSINESS PHONE:		714.283.6500

	MAIL ADDRESS:	
		STREET 1:		175 N. RIVERVIEW DRIVE
		CITY:			ANAHEIM
		STATE:			CA
		ZIP:			92808

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FREMONT GENERAL CORP
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>c10581_4x0.xml
<DESCRIPTION>MAIN DOCUMENT DESCRIPTION
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2011-01-03</periodOfReport>

    <issuer>
        <issuerCik>0000038984</issuerCik>
        <issuerName>SIGNATURE GROUP HOLDINGS INC</issuerName>
        <issuerTradingSymbol>SGGH.PK</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001458423</rptOwnerCik>
            <rptOwnerName>BLITZER MICHAEL</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>11 EAST 44TH STREET</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 704</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10017</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>760000</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>Kingstown Capital Partners, LLC</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
                <footnoteId id="F2"/>
            </securityTitle>
            <transactionDate>
                <value>2011-01-03</value>
                <footnoteId id="F2"/>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>102739</value>
                    <footnoteId id="F2"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0.73</value>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>147920</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">Michael Blitzer is a Managing Partner of Kingstown Capital Partners, LLC, the general partner of Kingstown Partners Master Fund, Ltd, which beneficially owns 3,800,000 shares of the issuer.  Michael Blitzer is deemed to have beneficial ownership of the shares via his general partner's 20% profit allocation.</footnote>
        <footnote id="F2">On October 27, 2010, the Board of Directors of Signature Group Holdings, Inc. approved a compensation package for each of it's independent (non-management) Directors which includes annual compensation of $75,000 of restricted stock.  The restricted stock shall vest at the end of each year of the grant, subject to immediate vesting in the event of a change of control.  On January 3, 2011 restricted shares were issued in the amount of $75,000 to each independent Director for their director services for 2011.  The number of shares was based on the closing price at December 31, 2010, which was .73.  Accordingly, 102,739 restricted shares were issued to Mr. Blitzer on January 3, 2011 ($75,000/.73) and are scheduled to vest on December 31, 2011.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Michael Blitzer</signatureName>
        <signatureDate>2011-01-04</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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