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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(Print or Type Responses)

1. Name and Address of Reporting Person * HART JOHN R   2. Issuer Name and Ticker or Trading Symbol PICO HOLDINGS INC /NEW [PICO] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) President and CEO (Last) (First) (Middle) 875 PROSPECT STREET, SUITE 301 3. Date of Earliest Transaction (Month/Day/Year) 09/21/2005 (Street) LA JOLLA, CA 92037-4264 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 COMMON 09/21/2005   M   143,140 A $ 3.49 3,355,685 (1) D   COMMON 09/21/2005   D   143,140 D $ 33.23 3,355,685 (1) D   COMMON 09/21/2005   M   63,283 A $ 4.74 3,355,685 (1) D   COMMON 09/21/2005   D   63,283 D $ 33.23 3,355,685 (1) D   COMMON 09/21/2005   M   175,347 A $ 13.45 3,355,685 (1) D   COMMON 09/21/2005   D   175,347 D $ 33.23 3,355,685 (1) D   COMMON 09/21/2005   M   456,586 A $ 15 3,355,685 (1) D   COMMON 09/21/2005   D   456,586 D $ 33.23 3,355,685 (1) 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

STOCK APPRECIATION RIGHTS

$ 3.49

09/21/2005

M

143,140

07/17/2003

08/08/1988(2)

COMMON

143,140

$ 3.49

0

D

STOCK APPRECIATION RIGHTS

$ 4.74

09/21/2005

M

63,283

07/17/2003

08/08/1988(2)

COMMON

63,283

$ 4.74

0

D

STOCK APPRECIATION RIGHTS

$ 13.45

09/21/2005

M

175,347

07/17/2003

08/08/1988(2)

COMMON

175,347

$ 13.45

0

D

STOCK APPRECIATION RIGHTS

$ 15

09/21/2005

M

456,586

07/17/2003

08/08/1988(2)

COMMON

456,586

$ 15

0

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
HART JOHN R 875 PROSPECT STREET SUITE 301 LA JOLLA, CA 92037-4264	X		President and CEO

Signatures

John R. Hart by James F. Mosier per Power of Attorney dated September 17, 2002.		09/23/2005
**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).
(1)	(1) Of these shares 16,652 are held in a 401k Plan and Mr. Hart's shares voting power over 3,333,333 shares owned by a limited partnership.
(2)	(2) There is no expiration date.

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