<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