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<SEC-DOCUMENT>0000000000-06-008560.txt : 20060921
<SEC-HEADER>0000000000-06-008560.hdr.sgml : 20060921
<ACCEPTANCE-DATETIME>20060217114740
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000000000-06-008560
CONFORMED SUBMISSION TYPE:	UPLOAD
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20060217

FILED FOR:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VESTA INSURANCE GROUP INC
		CENTRAL INDEX KEY:			0000911576
		STANDARD INDUSTRIAL CLASSIFICATION:	FIRE, MARINE & CASUALTY INSURANCE [6331]
		IRS NUMBER:				631097283
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		UPLOAD

	BUSINESS ADDRESS:	
		STREET 1:		3760 RIVER RUN DR
		CITY:			BIRMINGHAM
		STATE:			AL
		ZIP:			35243
		BUSINESS PHONE:		2059707000

	MAIL ADDRESS:	
		STREET 1:		3760 RIVER RUN DRIVE
		CITY:			BIRMINGHAM
		STATE:			AL
		ZIP:			35243
</SEC-HEADER>
<DOCUMENT>
<TYPE>LETTER
<SEQUENCE>1
<FILENAME>filename1.txt
<TEXT>

      September 26, 2005

By Facsimile and U.S. Mail

Steven Wolosky, Esq.
Olshan Grundman Frome Rosenzweig & Wolosky LLP
Park Avenue Tower
65 East 55th Street
New York, New York 10022

	Re:	Vesta Insurance Group, Inc.
		Preliminary Proxy Statement on Schedule 14A
      Filed by Newcastle Partners, L.P., Newcastle Capital
Management, L.P.,
      	Newcastle Capital Group, L.L.C., Mark E. Schwarz, James
C.
      	Epstein, Mark J. Morrison and Steven J. Pully

Dear Mr. Wolosky:

	We have the following comments on the above-referenced
filing:

General
Proposal No. 1 - Election of Directors
1. We note your response to comment 7; however we are unable to
locate the amended Schedule 13D referenced in your response.
Please
advise.

Proposal No. 2 - Reimbursement of Proxy Solicitation Expenses of
Newcastle Partners
2. We note the highlighted sentence at the bottom of page 12.
Please
revise the disclosure here and throughout the document to
highlight
the fact that the outcome of the vote on this proposal is not
binding
on the board.

Legal Proceedings, page 19
3. In light of the fact that the Vesta board has set the date for
the
annual meeting, please revise the second paragraph of this section
accordingly.
4. Please provide support for your statements regarding the
anticipated outcome of the Florida actions.  Please provide us
copies
of all complaints, answers and other material pleadings in these
actions.
      *  *  *

      Please respond to these comments by promptly amending the
filing and submitting a response letter filed via EDGAR under the
label "CORRESP."  If you do not agree with a comment, please tell
us
why in your response.  Please note that Rule 14a-6(h) requires you
to
filed revised preliminary proxy materials that are marked to show
changes.  Direct any questions to me at (202) 551-3262.  You may
also
contact me by facsimile at (202) 772-9203.


      Sincerely,


      Abby Adams
Special Counsel
      Office of Mergers and Acquisitions
??

??

??

??

Steven Wolosky, Esq.
September 26, 2005
Page 1


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-0303

         DIVISION OF
CORPORATION FINANCE


</TEXT>
</DOCUMENT>
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