<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> YEAR <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-START> JAN-01-1996 <PERIOD-END> DEC-31-1996 <DEBT-HELD-FOR-SALE> 954,108 <DEBT-CARRYING-VALUE> 0 <DEBT-MARKET-VALUE> 0 <EQUITIES> 148,112 <MORTGAGE> 0 <REAL-ESTATE> 0 <TOTAL-INVEST> 1,168,287 <CASH> 3,605 <RECOVER-REINSURE> 0 <DEFERRED-ACQUISITION> 46,783 <TOTAL-ASSETS> 1,419,927 <POLICY-LOSSES> 336,685 <UNEARNED-PREMIUMS> 260,878 <POLICY-OTHER> 0 <POLICY-HOLDER-FUNDS> 0 <NOTES-PAYABLE> 75,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 42,644 <OTHER-SE> 598,578 <TOTAL-LIABILITY-AND-EQUITY> 1,419,927 <PREMIUMS> 754,724 <INVESTMENT-INCOME> 70,180 <INVESTMENT-GAINS> (3,173) <OTHER-INCOME> 3,233 <BENEFITS> 501,858 <UNDERWRITING-AMORTIZATION> 160,019 <UNDERWRITING-OTHER> 24,493 <INCOME-PRETAX> 136,590 <INCOME-TAX> 30,826 <INCOME-CONTINUING> 105,764 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 105,764 <EPS-PRIMARY> 3.86 <EPS-DILUTED> 3.84 <RESERVE-OPEN> 250,990 <PROVISION-CURRENT> 529,957 <PROVISION-PRIOR> (3,868) <PAYMENTS-CURRENT> 298,099 <PAYMENTS-PRIOR> 167,226 <RESERVE-CLOSE> 311,754 <CUMULATIVE-DEFICIENCY> 3,868