<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF CII FINANCIAL, INC. AND
SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               MAR-31-1996
<DEBT-HELD-FOR-SALE>                       148,121,000
<DEBT-CARRYING-VALUE>                       60,503,000
<DEBT-MARKET-VALUE>                         60,453,000
<EQUITIES>                                   4,432,000
<MORTGAGE>                                   5,161,000
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                             218,746,000
<CASH>                                      29,376,000
<RECOVER-REINSURE>                             348,000
<DEFERRED-ACQUISITION>                       2,375,000
<TOTAL-ASSETS>                             300,439,000
<POLICY-LOSSES>                            181,413,000
<UNEARNED-PREMIUMS>                             12,046
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                             56,800,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                     3,604,000
<OTHER-SE>                                  34,917,000
<TOTAL-LIABILITY-AND-EQUITY>               300,439,000
<PREMIUMS>                                  27,613,000
<INVESTMENT-INCOME>                          3,998,000
<INVESTMENT-GAINS>                           1,243,000
<OTHER-INCOME>                                       0
<BENEFITS>                                  19,508,000
<UNDERWRITING-AMORTIZATION>                  6,093,000
<UNDERWRITING-OTHER>                         3,290,000
<INCOME-PRETAX>                              2,898,000
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                          2,898,000
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 2,898,000
<EPS-PRIMARY>                                29,980.00
<EPS-DILUTED>                                29,980.00
<RESERVE-OPEN>                             154,647,000
<PROVISION-CURRENT>                         23,500,000
<PROVISION-PRIOR>                          (3,991,000)
<PAYMENTS-CURRENT>                           2,153,000
<PAYMENTS-PRIOR>                            15,179,000
<RESERVE-CLOSE>                            156,824,000
<CUMULATIVE-DEFICIENCY>                      3,991,000