<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