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




                                 MARCH 4, 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 February 29, 1996, Capsure Holdings Corp. ("Capsure") announced that it has
signed a definitive agreement to sell United Capitol Holding Company and its
subsidiaries, United Capitol Insurance Company, United Capitol Managers, Inc.,
and Fischer Underwriting Group, Incorporated, to a subsidiary of Frontier
Insurance Group, Inc.  Net cash proceeds to Capsure will be approximately $75
million, which includes release of United Capitol's excess capital on or before
closing.  The agreement is subject to several conditions, including approval by
insurance regulatory authorities.



ITEM 7.         FINANCIAL STATEMENTS AND EXHIBITS

                (c)     Exhibits

                        (28) Press Release issued by Capsure Holdings Corp., 
                             dated February 29, 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:      March 4, 1996












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EX-28

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                                                                      EXHIBIT 28


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


                            CAPSURE HOLDINGS TO SELL
                      UNITED CAPITOL TO FRONTIER INSURANCE

CHICAGO, ILLINOIS --  February 29, 1996 -- Capsure Holdings Corp. (NYSE: CSH)
today announced that it has signed a definitive agreement to sell United
Capitol Holding Company and its subsidiaries, United Capitol Insurance Company,
United Capitol Managers, Inc. and Fischer Underwriting Group, Incorporated, to
a subsidiary of Frontier Insurance Group, Inc. (NYSE: FTR).  Net cash proceeds
to Capsure will be approximately $75 million, which includes release of United
Capitol's excess capital on or before closing.  The agreement is subject to
several conditions including approval by insurance regulatory authorities.

            The transaction is expected to close in the second quarter of 1996.

            United Capitol writes commercial general liability, property, and
small contract surety business principally in the excess and surplus lines
market.  Frontier Insurance Group is a national underwriter of specialty
insurance products.

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

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