<ARTICLE>                                           7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q
FOR THE PERIOD ENDED JUNE 30, 1997 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-31-1997
<PERIOD-START>                                 JAN-01-1997
<PERIOD-END>                                   JUN-30-1997
<EXCHANGE-RATE>                                1
<DEBT-HELD-FOR-SALE>                           140,040
<DEBT-CARRYING-VALUE>                          0
<DEBT-MARKET-VALUE>                            0
<EQUITIES>                                     629
<MORTGAGE>                                     0
<REAL-ESTATE>                                  0
<TOTAL-INVEST>                                 142,667
<CASH>                                         1,964
<RECOVER-REINSURE>                             29,517<F1>
<DEFERRED-ACQUISITION>                         1,749
<TOTAL-ASSETS>                                 191,076
<POLICY-LOSSES>                                111,014
<UNEARNED-PREMIUMS>                            11,735
<POLICY-OTHER>                                 0
<POLICY-HOLDER-FUNDS>                          256
<NOTES-PAYABLE>                                0
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       1,559
<OTHER-SE>                                     58,368<F2>
<TOTAL-LIABILITY-AND-EQUITY>                   191,076
<PREMIUMS>                                     23,528
<INVESTMENT-INCOME>                            4,989
<INVESTMENT-GAINS>                             2,206
<OTHER-INCOME>                                 305
<BENEFITS>                                     17,080
<UNDERWRITING-AMORTIZATION>                    4,337
<UNDERWRITING-OTHER>                           6,617
<INCOME-PRETAX>                                2,979
<INCOME-TAX>                                   19
<INCOME-CONTINUING>                            2,960
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   2,960
<EPS-PRIMARY>                                  0.19<F3>
<EPS-DILUTED>                                  0.18<F4>
<RESERVE-OPEN>                                 97,105
<PROVISION-CURRENT>                          17,080
<PROVISION-PRIOR>                              0
<PAYMENTS-CURRENT>                             4,671
<PAYMENTS-PRIOR>                               19,026
<RESERVE-CLOSE>                                90,488
<CUMULATIVE-DEFICIENCY>                        (10,120)
<FN>
<F1> INCLUDES REINSURANCE RECOVERABLES ON UNPAID LOSSES OF 20,526 AND 
REINSURANCE RECOVERABLES OF PAID LOSSES OF 8,991
<F2> INCLUDES TREASURY STOCK 66.
<F3> REPRESENTS EARNINGS PER SHARE-BASIC.
<F4> REPRESENTS EARNINGS PER SHARE-DILUTED.
</FN>