FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * Ross Kyle   2. Issuer Name and Ticker or Trading Symbol SIGNATURE GROUP HOLDINGS INC [SGGH] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Executive Vice President (Last) (First) (Middle) 15303 VENTURA BLVD., SUITE 1600 3. Date of Earliest Transaction (Month/Day/Year) 08/08/2011 (Street) SHERMAN OAKS, CA 91403 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Restricted Common Stock 08/02/2011   A   416,667 A $ 0.56 416,667 D

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Nonqualified Stock Options

$ 0.572

08/08/2011

A

405,000

02/08/2012

08/08/2021

Signature Group Holdings, Inc. Common Shares

405,000

$ 0

1,620,000

D

Nonqualified Stock Options

$ 0.572

08/08/2011

A

405,000

02/08/2013

08/08/2021

Signature Group Holdings, Inc. Common Shares

405,000

$ 0

1,620,000

D

Nonqualified Stock Options

$ 0.572

08/08/2011

A

405,000

02/08/2014

08/08/2021

Signature Group Holdings, Inc. Common Shares

405,000

$ 0

1,620,000

D

Nonqualified Stock Options

$ 0.572

08/08/2011

A

405,000

07/01/2015

08/08/2021

Signature Group Holdings, Inc. Common Shares

405,000

$ 0

1,620,000

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
Ross Kyle 15303 VENTURA BLVD. SUITE 1600 SHERMAN OAKS, CA 91403	X		Executive Vice President

Signatures

Kyle Ross		08/08/2011
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Remarks: On August 2, 2011, pursuant to his Employment Agreement and subject to the terms of his Restricted Stock Award Agreement ("the RSA") Mr. Ross was granted 416,667 restricted shares of Signature Group Holdings, Inc. ("the Company") common stock which shall vest on December 31, 2013. On August 8, 2011, pursuant to his Employment Agreement and subject to the terms of his Non-Qualfied Stock Option Agreement (the Option Agreement"), Mr. Ross was granted options to purchase 1,620,000 shares of Signature Group Holdings, Inc. ("the Company") common stock at the average of the closing prices of the Company's common stock for the 3 business-day period ending on the business day immediately before the award date, subject to adjustment pursuant to the terms of the Company's 2006 Performance Incentive Plan. The options shall vest as follows: (i) 25% on the 6 month anniversary of the award date; (ii) 25% on the 18 month anniversary of the award date; (iii) 25% on the 30 month anniversary of the award date; and (iv) 25% on July 1, 2015, with this final tranche subject to the Company's common stock achieving certain trading prices as of such date. See the Company's Form 8-K/A filed on August 4, 2011 for further details.

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