<ARTICLE>                                           7
<LEGEND>
     THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM
     FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1999 AND IS QUALIFIED IN ITS
     ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK>                         0000225648
<NAME>                        DANIELSON HOLDING CORPORATION
<MULTIPLIER>                                   1000
<CURRENCY>                                     U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                              DEC-31-1999
<PERIOD-START>                                 JAN-01-1999
<PERIOD-END>                                   MAR-31-1999
<EXCHANGE-RATE>                                1
<DEBT-HELD-FOR-SALE>                           116,081
<DEBT-CARRYING-VALUE>                          0
<DEBT-MARKET-VALUE>                            0
<EQUITIES>                                     16,104
<MORTGAGE>                                     0
<REAL-ESTATE>                                  0
<TOTAL-INVEST>                                 137,558
<CASH>                                         20
<RECOVER-REINSURE>                             21,448 <F1>
<DEFERRED-ACQUISITION>                         2,520
<TOTAL-ASSETS>                                 178,600
<POLICY-LOSSES>                                92,607
<UNEARNED-PREMIUMS>                            14,351
<POLICY-OTHER>                                 0
<POLICY-HOLDER-FUNDS>                          231
<NOTES-PAYABLE>                                0
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       1,559
<OTHER-SE>                                     59,826 <F2>
<TOTAL-LIABILITY-AND-EQUITY>                   178,600
<PREMIUMS>                                     12,494
<INVESTMENT-INCOME>                            1,906
<INVESTMENT-GAINS>                             0
<OTHER-INCOME>                                 185
<BENEFITS>                                     8,472
<UNDERWRITING-AMORTIZATION>                    2,317
<UNDERWRITING-OTHER>                           3,402
<INCOME-PRETAX>                                115
<INCOME-TAX>                                   14
<INCOME-CONTINUING>                            101
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   101
<EPS-PRIMARY>                                  .01 <F3>
<EPS-DILUTED>                                  .01 <F4>
<RESERVE-OPEN>                                 77,466
<PROVISION-CURRENT>                            8,472
<PROVISION-PRIOR>                              0
<PAYMENTS-CURRENT>                             2,042
<PAYMENTS-PRIOR>                               10,049
<RESERVE-CLOSE>                                73,847
<CUMULATIVE-DEFICIENCY>                        0
<FN>
<F1> INCLUDES REINSURANCE RECOVERABLES ON UNPAID LOSSES OF 2,689 AND REINSURANCE
     RECOVERABLES ON PAID LOSSES OF 18,759.
<F2> INCLUDES TREASURY STOCK OF 66.
<F3> REPRESENTS EARNING PER SHARE-BASIC.
<F4> REPRESENTS EARNINGS PER SHARE-DILUTED.
</FN>