<ARTICLE>                                           7
<LEGEND>
     THIS SCHEDULE  CONTAINS SUMMARY FINANCIAL  INFORMATION  EXTRACTED FROM FORM
10-Q FOR THE  QUARTERLY  PERIOD  ENDED  MARCH 31, 1998 AND IS  QUALIFIED  IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK>                         0000225648
<NAME>                        DANIELSON HOLDING CORPORATION
<MULTIPLIER>                                   1,000
<CURRENCY>                                     U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                              DEC-31-1998
<PERIOD-START>                                 JAN-01-1998
<PERIOD-END>                                   MAR-31-1998
<EXCHANGE-RATE>                                1
<DEBT-HELD-FOR-SALE>                           128,527
<DEBT-CARRYING-VALUE>                          0
<DEBT-MARKET-VALUE>                            0
<EQUITIES>                                     13,594
<MORTGAGE>                                     0
<REAL-ESTATE>                                  0
<TOTAL-INVEST>                                 145,797
<CASH>                                         9,117
<RECOVER-REINSURE>                             29,908<F1>
<DEFERRED-ACQUISITION>                         1,953
<TOTAL-ASSETS>                                 202,595
<POLICY-LOSSES>                                104,764
<UNEARNED-PREMIUMS>                            12,110
<POLICY-OTHER>                                 0
<POLICY-HOLDER-FUNDS>                          273
<NOTES-PAYABLE>                                0
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       1,559
<OTHER-SE>                                     63,211<F2>
<TOTAL-LIABILITY-AND-EQUITY>                   202,595
<PREMIUMS>                                     14,015
<INVESTMENT-INCOME>                            2,339
<INVESTMENT-GAINS>                             37
<OTHER-INCOME>                                 178
<BENEFITS>                                     9,933
<UNDERWRITING-AMORTIZATION>                    2,397
<UNDERWRITING-OTHER>                           3,277
<INCOME-PRETAX>                                850
<INCOME-TAX>                                   43
<INCOME-CONTINUING>                            807
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   807
<EPS-PRIMARY>                                  0.05<F3>
<EPS-DILUTED>                                  0.05<F4>
<RESERVE-OPEN>                                 85,762
<PROVISION-CURRENT>                            9,933
<PROVISION-PRIOR>                              0
<PAYMENTS-CURRENT>                             1,841
<PAYMENTS-PRIOR>                               9,284
<RESERVE-CLOSE>                                84,570
<CUMULATIVE-DEFICIENCY>                        (940)
<FN>
     <F1>  INCLUDES  REINSURANCE  RECOVERABLES  ON UNPAID  LOSSES OF 20,193  AND
REINSURANCE RECOVERABLES ON PAID LOSSES OF 9,715.
     <F2> INCLUDES TREASURY STOCK OF 66.
     <F3> REPRESENTS EARNINGS PER SHARE-BASIC
     <F4> REPRESENTS EARNINGS PER SHARE-DILUTED
</FN>