<ARTICLE>                                           7
<LEGEND>
     THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 
QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETLY BY 
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK>                          0000225648
<NAME>                         DANIELSON HOLDING CORPORATION
<MULTIPLIER>                                   1000
<CURRENCY>                                     U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                              DEC-31-1997
<PERIOD-START>                                 JAN-01-1997
<PERIOD-END>                                   SEP-30-1997
<EXCHANGE-RATE>                                1
<DEBT-HELD-FOR-SALE>                           138,467
<DEBT-CARRYING-VALUE>                          0
<DEBT-MARKET-VALUE>                            0
<EQUITIES>                                     802
<MORTGAGE>                                     0
<REAL-ESTATE>                                  0
<TOTAL-INVEST>                                 142,672
<CASH>                                         1,576
<RECOVER-REINSURE>                             28,835 <F1>
<DEFERRED-ACQUISITION>                         1,726
<TOTAL-ASSETS>                                 188,772
<POLICY-LOSSES>                                107,680
<UNEARNED-PREMIUMS>                            11,306
<POLICY-OTHER>                                 0
<POLICY-HOLDER-FUNDS>                          199
<NOTES-PAYABLE>                                0
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       1,559
<OTHER-SE>                                     60,691 <F2>
<TOTAL-LIABILITY-AND-EQUITY>                   188,772
<PREMIUMS>                                     38,269
<INVESTMENT-INCOME>                            7,417
<INVESTMENT-GAINS>                             2,173
<OTHER-INCOME>                                 526
<BENEFITS>                                     27,165
<UNDERWRITING-AMORTIZATION>                    7,001
<UNDERWRITING-OTHER>                           9,921
<INCOME-PRETAX>                                3,555
<INCOME-TAX>                                   34
<INCOME-CONTINUING>                            3,521
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   3,521
<EPS-PRIMARY>                                  0.23 <F3>
<EPS-DILUTED>                                  0.22 <F4>
<RESERVE-OPEN>                                 97,105
<PROVISION-CURRENT>                            27,165
<PROVISION-PRIOR>                              0
<PAYMENTS-CURRENT>                             9,483
<PAYMENTS-PRIOR>                               27,287
<RESERVE-CLOSE>                                87,500
<CUMULATIVE-DEFICIENCY>                        (10,120)
<FN>
<F1> INCLUDES REINSURANCE RECOVERABLES ON UNPAID LOSSES OF 20,179 AND 
REINSURANCE RECOVERABLES ON PAID LOSSES OF 8,656.
<F2> INCLUDES TREASURY STOCK OF 66.
<F3> REPRESENTS EARNINGS PER SHARE-BASIC.
<F4> REPRESENTS EARNING PER SHARE-DILUTED.
</FN>