<ARTICLE> 7 <CIK> 0000792013 <NAME> HARLEYSVILLE GROUP INC. <MULTIPLIER> 1,000 <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> JUN-30-1998 <DEBT-HELD-FOR-SALE> 704,483 <DEBT-CARRYING-VALUE> 640,636 <DEBT-MARKET-VALUE> 672,537 <EQUITIES> 151,238 <MORTGAGE> 0 <REAL-ESTATE> 0 <TOTAL-INVEST> 1,516,081 <CASH> 18,926 <RECOVER-REINSURE> 4,718 <DEFERRED-ACQUISITION> 77,863 <TOTAL-ASSETS> 1,900,871 <POLICY-LOSSES> 905,231 <UNEARNED-PREMIUMS> 317,187 <POLICY-OTHER> 0 <POLICY-HOLDER-FUNDS> 0 <NOTES-PAYABLE> 97,140 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 29,003 <OTHER-SE> 457,824 <TOTAL-LIABILITY-AND-EQUITY> 1,900,871 <PREMIUMS> 328,466 <INVESTMENT-INCOME> 42,578 <INVESTMENT-GAINS> 7,350 <OTHER-INCOME> 6,133 <BENEFITS> 230,716 <UNDERWRITING-AMORTIZATION> 83,145 <UNDERWRITING-OTHER> 32,175 <INCOME-PRETAX> 38,491 <INCOME-TAX> 8,037 <INCOME-CONTINUING> 30,454 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 30,454 <EPS-PRIMARY> 1.05 <EPS-DILUTED> 1.03 <RESERVE-OPEN> 793,563 <PROVISION-CURRENT> 0 <PROVISION-PRIOR> 0 <PAYMENTS-CURRENT> 0 <PAYMENTS-PRIOR> 0 <RESERVE-CLOSE> 819,866 <CUMULATIVE-DEFICIENCY> 0