<ARTICLE>                                           7
<LEGEND>
     THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ALLIED
     GROUP, INC.'S SEPTEMBER 30, 1996 FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY
     BY SUCH FINANCIAL STATMENTS
</LEGEND>
<CIK>                           0000774624
<NAME>                          ALLIED GROUP, INC.                        
<MULTIPLIER>                                   1,000
<CURRENCY>                      U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>               DEC-31-1996
<PERIOD-START>                  JAN-01-1996
<PERIOD-END>                    SEP-30-1996
<EXCHANGE-RATE>                                      1
<DEBT-HELD-FOR-SALE>                           764,157
<DEBT-CARRYING-VALUE>                          753,259
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                      16,315
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                 790,579
<CASH>                                           1,551
<RECOVER-REINSURE>                              18,066
<DEFERRED-ACQUISITION>                          46,523
<TOTAL-ASSETS>                               1,046,184
<POLICY-LOSSES>                                355,307
<UNEARNED-PREMIUMS>                            219,746
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                 36,157
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                     37,812
<COMMON>                                        13,553
<OTHER-SE>                                     301,115
<TOTAL-LIABILITY-AND-EQUITY>                 1,046,184
<PREMIUMS>                                     364,229
<INVESTMENT-INCOME>                             36,608
<INVESTMENT-GAINS>                                  65
<OTHER-INCOME>                                  39,737
<BENEFITS>                                     265,317
<UNDERWRITING-AMORTIZATION>                     79,888
<UNDERWRITING-OTHER>                            14,226
<INCOME-PRETAX>                                 50,606
<INCOME-TAX>                                    14,651
<INCOME-CONTINUING>                             35,955
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    35,955
<EPS-PRIMARY>                                    2.570
<EPS-DILUTED>                                    2.410
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0