<ARTICLE> 7 <LEGEND> THIS FINANCIAL SCHEDULE CONTAINS SUMMARY FINANACIAL INFORMATION EXTRACTED FROM GUARANTY NATIONAL CORPORATION'S FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-1-1997 <PERIOD-END> MAR-31-1997 <DEBT-HELD-FOR-SALE> 417,287 <DEBT-CARRYING-VALUE> 73,029 <DEBT-MARKET-VALUE> 73,015 <EQUITIES> 94,950 <MORTGAGE> 0 <REAL-ESTATE> 0 <TOTAL-INVEST> 490,316 <CASH> 3,068 <RECOVER-REINSURE> 85,564 <DEFERRED-ACQUISITION> 45,558 <TOTAL-ASSETS> 928,186 <POLICY-LOSSES> 361,533 <UNEARNED-PREMIUMS> 162,037 <POLICY-OTHER> 0 <POLICY-HOLDER-FUNDS> 0 <NOTES-PAYABLE> 101,500 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 136,247 <OTHER-SE> 102,868 <TOTAL-LIABILITY-AND-EQUITY> 928,186 <PREMIUMS> 128,675 <INVESTMENT-INCOME> 10,745 <INVESTMENT-GAINS> 1,412 <OTHER-INCOME> 0 <BENEFITS> 88,862 <UNDERWRITING-AMORTIZATION> 35,970 <UNDERWRITING-OTHER> 2,580 <INCOME-PRETAX> 11,420 <INCOME-TAX> 3,002 <INCOME-CONTINUING> 8,418 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 8,418 <EPS-PRIMARY> 0.56 <EPS-DILUTED> 0.56 <RESERVE-OPEN> 284,681 <PROVISION-CURRENT> 88,389 <PROVISION-PRIOR> 473 <PAYMENTS-CURRENT> 26,910 <PAYMENTS-PRIOR> 62,891 <RESERVE-CLOSE> 283,742 <CUMULATIVE-DEFICIENCY> 473