8-K

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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
        

                                    FORM 8-K


                                 CURRENT REPORT

                       Pursuant to Section 13 or 15(d) of
                      The Securities Exchange Act of 1934




                                JANUARY 16, 1996
                                (Date of Report)




                             CAPSURE HOLDINGS CORP.
             (Exact name of Registrant as specified in its charter)




                                     0-3565
                             (Commission File No.)


                 DELAWARE                              34-1010356
        (State or other jurisdiction)      (IRS Employer Identification No.)


TWO NORTH RIVERSIDE PLAZA, CHICAGO, ILLINOIS             60606
 (Address of principal executive offices)              (Zip code)


                                 (312) 879-1900
               (Registrant's telephone number, include area code)

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ITEM 5.  OTHER EVENTS

On January 12, 1996, Capsure Holdings Corp. ("Capsure") announced that its
subsidiary, United Capitol Insurance Company, expects to reduce its loss
reserves by approximately $19 million, which is anticipated to increase
consolidated fourth quarter and full-year net income by $12.4 million, or $0.80
per share.  This reduction in the level of estimated loss reserves follows the
completion of a comprehensive independent actuarial evaluation as of September
30, 1995, previously announced in Capsure's third quarter earnings press
release and Form 10-Q.



ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS

         (c) Exhibits

             (28) Press Release issued by Capsure Holdings Corp., dated January
                  12, 1996.



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                                   SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.





                                 CAPSURE HOLDINGS CORP.




                              By:     /s/ John S. Heneghan
                                      ---------------------------------
                                      John S. Heneghan
                                      Vice President and Controller





Dated:      January 16, 1996



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EX-28

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CONTACT:        Mary Jane Robertson                    FOR IMMEDIATE RELEASE
                (770) 677-0323
                        -or-
                Doreen Lubeck
                (312) 466-3444


                      CAPSURE HOLDINGS EXPECTS TO REDUCE
               UNITED CAPITOL'S LOSS RESERVES BY $19.0 MILLION


CHICAGO, ILLINOIS -- January 12, 1996 -- Capsure Holdings Corp. (NYSE: CSH)     
today announced that it expects to reduce loss reserves at its United Capitol
Insurance Company subsidiary by approximately $19.0 million.

        Capsure expects to announce earnings for the fourth quarter and year
ended December 31, 1995, in mid-February 1996.  The loss reserve reduction is
anticipated to increase Capsure's consolidated fourth quarter and full-year net
income by $12.4 million, or 80 cents per share, and reduce the consolidated
loss and combined ratios by 77 points for the fourth quarter and 19 points for
the full year.

        This estimated reduction follows the completion of a previously
announced comprehensive independent actuarial evaluation of United Capitol's
loss reserves as of September 30, 1995.  

        United Capitol's claims development has been favorable relative to
expectations based on industry experience.  Due to the limited prior operating
experience of the company and the long-tail nature of its business, the company
and its independent actuaries previously relied principally upon industry
development patterns and expected loss ratios in estimating loss reserves. 
Given United Capitol's availability of over eight

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full years of experience and the growing evidence of favorable loss trends
relative to industry indications, management and its independent        
actuaries have concluded that it is now appropriate to place greater reliance
on the company's own development patterns and emerging loss ratios in
estimating loss reserves.  

        "As time passes, more information about claims becomes known and
reserve estimates are adjusted accordingly," said Bruce A. Esselborn, president
of Capsure.  "Because of the nature of United Capitol's business, in particular
the time it takes to settle its unique liability claims, several years were
required before substantial weight could be given to United Capitol's own loss
experience in estimating its loss reserves."

        Capsure Holdings Corp. is an acquisition company involved in specialty
property and casualty insurance through Western Surety Company, Universal
Surety of America and United Capitol Insurance Company.

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