<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM XEROX CORPORATION'S DECEMBER 31, 1994, FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1994
<PERIOD-END>                               DEC-31-1994
<DEBT-HELD-FOR-SALE>                             7,214
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                         168
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                   8,384
<CASH>                                              21
<RECOVER-REINSURE>                               3,116
<DEFERRED-ACQUISITION>                             197
<TOTAL-ASSETS>                                  14,519
<POLICY-LOSSES>                                  8,862
<UNEARNED-PREMIUMS>                              1,033
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                    425
<PREMIUMS>                                       2,312
<INVESTMENT-INCOME>                                423
<INVESTMENT-GAINS>                                  12
<OTHER-INCOME>                                      14
<BENEFITS>                                       1,769
<UNDERWRITING-AMORTIZATION>                        471
<UNDERWRITING-OTHER>                               306
<INCOME-PRETAX>                                   (44)
<INCOME-TAX>                                      (44)
<INCOME-CONTINUING>                                  0
<RESERVE-OPEN>                                   9,684
<PROVISION-CURRENT>                              1,748
<PROVISION-PRIOR>                                   11
<PAYMENTS-CURRENT>                                 486
<PAYMENTS-PRIOR>                                 1,541
<RESERVE-CLOSE>                                  8,862
<CUMULATIVE-DEFICIENCY>                            (8)