<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-31-1995
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               SEP-30-1996
<DEBT-HELD-FOR-SALE>                           846,880
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                     127,592
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                               1,017,444
<CASH>                                           3,103
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                          39,441
<TOTAL-ASSETS>                               1,197,614
<POLICY-LOSSES>                                279,033
<UNEARNED-PREMIUMS>                            201,354
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                 25,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        42,012
<OTHER-SE>                                     569,899
<TOTAL-LIABILITY-AND-EQUITY>                 1,197,614
<PREMIUMS>                                     544,116
<INVESTMENT-INCOME>                             51,220
<INVESTMENT-GAINS>                             (1,000)
<OTHER-INCOME>                                     981
<BENEFITS>                                     363,712
<UNDERWRITING-AMORTIZATION>                    114,741
<UNDERWRITING-OTHER>                            17,189
<INCOME-PRETAX>                                 99,685
<INCOME-TAX>                                    22,197
<INCOME-CONTINUING>                             77,488
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    77,488
<EPS-PRIMARY>                                     2.83
<EPS-DILUTED>                                     2.81
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0