<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>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               JUN-30-1997
<DEBT-HELD-FOR-SALE>                         1,074,764
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                     160,462
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                               1,282,163
<CASH>                                           5,771
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                          52,792
<TOTAL-ASSETS>                               1,556,589
<POLICY-LOSSES>                                377,759
<UNEARNED-PREMIUMS>                            290,924
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                 75,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        44,017
<OTHER-SE>                                     655,347
<TOTAL-LIABILITY-AND-EQUITY>                 1,556,589
<PREMIUMS>                                     490,698
<INVESTMENT-INCOME>                             40,779
<INVESTMENT-GAINS>                                 833
<OTHER-INCOME>                                   2,411
<BENEFITS>                                     323,200
<UNDERWRITING-AMORTIZATION>                    105,280
<UNDERWRITING-OTHER>                            15,968
<INCOME-PRETAX>                                 87,837
<INCOME-TAX>                                    21,126
<INCOME-CONTINUING>                             66,711
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    66,711
<EPS-PRIMARY>                                     2.43
<EPS-DILUTED>                                     2.41
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