<ARTICLE>                                           7
<LEGEND>
  THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 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>                   6-MOS
<FISCAL-YEAR-END>                              DEC-31-1998
<PERIOD-START>                                 JAN-01-1998
<PERIOD-END>                                   JUN-30-1998
<EXCHANGE-RATE>                                1
<DEBT-HELD-FOR-SALE>                           117,846
<DEBT-CARRYING-VALUE>                          0
<DEBT-MARKET-VALUE>                            0
<EQUITIES>                                     17,859
<MORTGAGE>                                     0
<REAL-ESTATE>                                  0
<TOTAL-INVEST>                                 136,805
<CASH>                                         45
<RECOVER-REINSURE>                             28,128 <F1>
<DEFERRED-ACQUISITION>                         2,128
<TOTAL-ASSETS>                                 183,690
<POLICY-LOSSES>                                99,374
<UNEARNED-PREMIUMS>                            12,890
<POLICY-OTHER>                                 0
<POLICY-HOLDER-FUNDS>                          267
<NOTES-PAYABLE>                                0
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       1,559
<OTHER-SE>                                     60,886<F2>
<TOTAL-LIABILITY-AND-EQUITY>                   183,690
<PREMIUMS>                                     27,587
<INVESTMENT-INCOME>                            4,274
<INVESTMENT-GAINS>                             124
<OTHER-INCOME>                                 421
<BENEFITS>                                     19,555
<UNDERWRITING-AMORTIZATION>                    4,774
<UNDERWRITING-OTHER>                           6,707
<INCOME-PRETAX>                                1,167
<INCOME-TAX>                                   53
<INCOME-CONTINUING>                            1,114
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   1,114
<EPS-PRIMARY>                                  0.07<F3>
<EPS-DILUTED>                                  0.07<F4>
<RESERVE-OPEN>                                 85,762
<PROVISION-CURRENT>                            19,555
<PROVISION-PRIOR>                              0
<PAYMENTS-CURRENT>                             5,264
<PAYMENTS-PRIOR>                               19,770
<RESERVE-CLOSE>                                80,283
<CUMULATIVE-DEFICIENCY>                        (940)
<FN>
<F1>  INCLUDES  REINSURANCE  RECOVERABLES  ON UNPAID  LOSSES OF 19,090  AND
REINSURANCE RECOVERABLES ON PAID LOSSES OF 9,038.
<F2> INCLUDES TREASURY STOCK OF 66.
<F3> REPRESENTS EARNINGS PER SHARE-BASIC.
<F4> REPRESENTS EARNINGS PER SHARE-DILUTED.
</FN>