<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MERCURY
GENERAL CORPORATION AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED> 
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               SEP-30-1997
<DEBT-HELD-FOR-SALE>                         1,143,160
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                     176,427
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                               1,379,694
<CASH>                                           4,771
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                          56,475
<TOTAL-ASSETS>                               1,660,030
<POLICY-LOSSES>                                393,327
<UNEARNED-PREMIUMS>                            311,468
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                 75,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        46,092
<OTHER-SE>                                     700,106
<TOTAL-LIABILITY-AND-EQUITY>                 1,660,030
<PREMIUMS>                                     757,910
<INVESTMENT-INCOME>                             63,004
<INVESTMENT-GAINS>                               3,108
<OTHER-INCOME>                                   3,356
<BENEFITS>                                     489,677
<UNDERWRITING-AMORTIZATION>                    164,655
<UNDERWRITING-OTHER>                            26,307
<INCOME-PRETAX>                                143,035
<INCOME-TAX>                                    35,570
<INCOME-CONTINUING>                            107,465
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   107,465
<EPS-PRIMARY>                                     1.96
<EPS-DILUTED>                                     1.94
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0