8-K

                       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



Date of Report (Date of earliest event reported):  March 7, 1996



                      Amwest Insurance Group, Inc.
                (Exact name of Registrant as specified in its charter)



         Delaware                1-9580                 95-2672141
(State or other jurisdiction   (Commission         (IRS Employer
 of incorporation)              File number)       Identification No.)



6320 Canoga Avenue, Suite 300, Woodland Hills, California    91367
             (Address of principal executive offices)           (Zip Code)



Registrant's telephone number, including area code   (818)704-1111





                 This document contains a total of 4 pages. The
                         exhibit index begins on Page 3.







                                Page 1 of 4 Pages


                  ITEM 5.  Other Events.

     On March 7, 1996, the Registrant announced an agreement to purchase 100% of
the stock of Southern California Service, Inc. from Highlands Insurance Group.

                  A copy of the press  release  dated March 7, 1996,  announcing
the above is attached hereto as Exhibit 99-1.

                  ITEM 7.  Financial Statements and Exhibits

                  The following is furnished as an Exhibit to this report:

                  99-1  Press Release of Registrant dated March 7, 1996.





                                   SIGNATURES

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


                                        AMWEST INSURANCE GROUP, INC.



         Dated: March 12, 1996          By:/s/ STEVEN R. KAY
                                           -----------------
                                           Steven R. Kay
                                           Senior Vice President 
                                           Chief Financial Officer















                            Page 2 of 4 Pages


                                INDEX OF EXHIBITS


Exhibit                                                 Sequentially
Number                   Description                 Numbered Page (*)

99-1           Press Release of Registrant dated             4
                           March 7, 1996.


































                  (*)  This  information  appears  only in the  manually  signed
original of this Current Report on Form 8-K.






                                Page 3 of 4 Pages

EX-99.1

           Amwest To Acquire Southern California Bonding Service, Inc.

Woodland Hills, CA - Thursday,  March 7, 1996 - Amwest Surety Insurance Company,
the nation's largest  underwriter of specialty surety bonds,  today announced an
agreement to purchase 100% of the stock of Southern  California Bonding Service,
Inc. from Highlands Insurance Group.

Southern California Bonding Service, Inc. is one of the largest producers of 
probate and civil litigation bonds in California. With offices in Los Angeles,
Garden Grove, San Diego and San Jose, Southern California Bonding Service, Inc.
provides a variety of court and fiduciary bonds to the California legal
community, including probate, fiduciary and attachment bonds, preliminary 
injunction bonds and other court-related obligations. During 1995, Southern 
California Bonding Service, Inc. wrote over $6.0 million in premiums.

"The addition of Southern California Bonding Service, Inc. to Amwest enables us
to provide a complete line of coverages for the California legal community in
all court matters," said Richard Savage, Chairman and Co-Chief Executive Officer
of Amwest. "Southern California Bonding Service, Inc. has provided professional
service for several decades. And together, we will bethe surety of choice for
probate attorneys and conservators throughout California."

"We are  delighted  with the change in  ownership,"  said James  "Bubba"  Lloyd,
General  Manager of Southern  California  Bonding  Service,  Inc.  All of us are
excited about being part of one of the largest surety insurance companies in the
nation. The combination of our experience and the resources of Amwest will allow
us to  profitably  increase  our  volume  and  provide  better  service  to  the
California legal community."

Amwest Surety Insurance Company is a subsidiary of Amwest Insurance Group, Inc.,
which reported 1995 written  premiums of $70,000,000 and assets of $148,000,000.
Amwest  provides a wide range of surety bonds,  including  contract  performance
bonds for the construction  industry,  commercial  surety bonds, and bail bonds.
Amwest is also the leading writer of court bonds in the state of California.

The Company operates through 30 branch offices nationwide and is licensed in all
states, the District of Columbia,  Puerto Rico, Guam and American Samoa. Founded
in 1970,  Amwest is publicly traded on the American Stock Exchange (AMEX,  AMW),
is Treasury-listed and rated "A" (Excellent) by A.M. Best Company.

                                     # # # #

For Information, contact: Mr. Jeffrey Shonka, Vice President 818-592-3300