<ARTICLE> 7 <LEGEND> THIS FINANCIAL SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM GUARANTY NATIONAL CORPORATION'S FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> SEP-30-1997 <DEBT-HELD-FOR-SALE> 426,259 <DEBT-CARRYING-VALUE> 74,262 <DEBT-MARKET-VALUE> 75,814 <EQUITIES> 123,550 <MORTGAGE> 0 <REAL-ESTATE> 0 <TOTAL-INVEST> 744,062 <CASH> 2,849 <RECOVER-REINSURE> 90,326 <DEFERRED-ACQUISITION> 48,538 <TOTAL-ASSETS> 1,019,415 <POLICY-LOSSES> 376,212 <UNEARNED-PREMIUMS> 172,771 <POLICY-OTHER> 0 <POLICY-HOLDER-FUNDS> 0 <NOTES-PAYABLE> 101,125 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 137,686 <OTHER-SE> 140,964 <TOTAL-LIABILITY-AND-EQUITY> 1,019,415 <PREMIUMS> 403,354 <INVESTMENT-INCOME> 31,698 <INVESTMENT-GAINS> 8,376 <OTHER-INCOME> 0 <BENEFITS> 280,916 <UNDERWRITING-AMORTIZATION> 105,871 <UNDERWRITING-OTHER> 9,230 <INCOME-PRETAX> 41,405 <INCOME-TAX> 11,385 <INCOME-CONTINUING> 30,020 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 30,020 <EPS-PRIMARY> 1.98 <EPS-DILUTED> 1.98 <RESERVE-OPEN> 284,681 <PROVISION-CURRENT> 278,106 <PROVISION-PRIOR> 2,810 <PAYMENTS-CURRENT> 132,581 <PAYMENTS-PRIOR> 141,487 <RESERVE-CLOSE> 291,529 <CUMULATIVE-DEFICIENCY> 2,810