<ARTICLE> 7 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MERCURY GENERAL CORP. AND IS QUALIFIED IN ITS ENTIRETY BY REFERENE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> DEC-31-1997 <DEBT-HELD-FOR-SALE> 1,214,986 <DEBT-CARRYING-VALUE> 0 <DEBT-MARKET-VALUE> 0 <EQUITIES> 173,522 <MORTGAGE> 0 <REAL-ESTATE> 0 <TOTAL-INVEST> 1,448,248 <CASH> 3,011 <RECOVER-REINSURE> 0 <DEFERRED-ACQUISITION> 57,264 <TOTAL-ASSETS> 1,725,532 <POLICY-LOSSES> 409,061 <UNEARNED-PREMIUMS> 309,376 <POLICY-OTHER> 0 <POLICY-HOLDER-FUNDS> 0 <NOTES-PAYABLE> 75,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 47,412 <OTHER-SE> 752,180 <TOTAL-LIABILITY-AND-EQUITY> 1,725,532 <PREMIUMS> 1,031,280 <INVESTMENT-INCOME> 86,812 <INVESTMENT-GAINS> 4,973 <OTHER-INCOME> 4,881 <BENEFITS> 654,729 <UNDERWRITING-AMORTIZATION> 224,883 <UNDERWRITING-OTHER> 33,579 <INCOME-PRETAX> 209,779 <INCOME-TAX> 53,473 <INCOME-CONTINUING> 156,306 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 156,306 <EPS-PRIMARY> 2.84 <EPS-DILUTED> 2.82 <RESERVE-OPEN> 311,754 <PROVISION-CURRENT> 641,911 <PROVISION-PRIOR> 12,818 <PAYMENTS-CURRENT> 373,823 <PAYMENTS-PRIOR> 206,390 <RESERVE-CLOSE> 386,270 <CUMULATIVE-DEFICIENCY> (12,818)