<ARTICLE>                                           7
<LEGEND>
     THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM
     10Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 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>                   6-MOS
<FISCAL-YEAR-END>                              DEC-31-1999
<PERIOD-START>                                 JAN-01-1999
<PERIOD-END>                                   JUN-30-1999
<EXCHANGE-RATE>                                1
<DEBT-HELD-FOR-SALE>                           110,752
<DEBT-CARRYING-VALUE>                          0
<DEBT-MARKET-VALUE>                            0
<EQUITIES>                                     18,519
<MORTGAGE>                                     0
<REAL-ESTATE>                                  0
<TOTAL-INVEST>                                 133,767
<CASH>                                         54
<RECOVER-REINSURE>                             23,285 <F1>
<DEFERRED-ACQUISITION>                         2,612
<TOTAL-ASSETS>                                 177,052
<POLICY-LOSSES>                                90,987
<UNEARNED-PREMIUMS>                            15,010
<POLICY-OTHER>                                 0
<POLICY-HOLDER-FUNDS>                          189
<NOTES-PAYABLE>                                0
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       1559
<OTHER-SE>                                     60,438 <F2>
<TOTAL-LIABILITY-AND-EQUITY>                   177,052
<PREMIUMS>                                     24,843
<INVESTMENT-INCOME>                            3,783
<INVESTMENT-GAINS>                             (154)
<OTHER-INCOME>                                 425
<BENEFITS>                                     16,903
<UNDERWRITING-AMORTIZATION>                    4,641
<UNDERWRITING-OTHER>                           6,604
<INCOME-PRETAX>                                389
<INCOME-TAX>                                   23
<INCOME-CONTINUING>                            366
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   366
<EPS-BASIC>                                  0.02 <F3>
<EPS-DILUTED>                                  0.02 <F4>
<RESERVE-OPEN>                                 77,466
<PROVISION-CURRENT>                            16,903
<PROVISION-PRIOR>                              0
<PAYMENTS-CURRENT>                             6,722
<PAYMENTS-PRIOR>                               17,079
<RESERVE-CLOSE>                                70,568
<CUMULATIVE-DEFICIENCY>                        0
<FN>
<F1> INCLUDES REINSURANCE RECOVERABLES ON UNPAID LOSSES OF 20,419
     AND REINSURANCE RECOVERABLES ON PAID LOSSES OF 2,866.
<F2> INCLUDES TREASURY STOCK OF 66.
<F3> REPRESENTS EARNINGS PER SHARE-BASIC.
<F4> REPRESENTS EARNINGS PER SHARE-DILUTED.
</FN>