<ARTICLE>                                           7
<LEGEND>
          THIS SCHEDULE  CONTAINS SUMMARY FINANCIAL  INFORMATION  EXTRACTED FROM
          ALLEGHANY  CORPORATION AND SUBSIDIARIES  CONSOLIDATED BALANCE SHEET AT
          SEPTEMBER 30, 1997 AND THE CONSOLIDATED  STATEMENT OF EARNINGS FOR THE
          9 MONTHS THEN ENDED AND IS  QUALIFIED  IN ITS ENTIRETY BY REFERENCE TO
          SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER>                                   1000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                              DEC-31-1997
<PERIOD-START>                                 JAN-01-1997
<PERIOD-END>                                   SEP-30-1997
<DEBT-HELD-FOR-SALE>                           2,128,729
<DEBT-CARRYING-VALUE>                                  0
<DEBT-MARKET-VALUE>                                    0
<EQUITIES>                                       873,741
<MORTGAGE>                                             0
<REAL-ESTATE>                                          0
<TOTAL-INVEST>                                 3,002,470
<CASH>                                           249,363
<RECOVER-REINSURE>                               395,301
<DEFERRED-ACQUISITION>                                 0
<TOTAL-ASSETS>                                 4,899,975
<POLICY-LOSSES>                                1,715,704
<UNEARNED-PREMIUMS>                                    0
<POLICY-OTHER>                                         0
<POLICY-HOLDER-FUNDS>                                  0
<NOTES-PAYABLE>                                  469,595
<PREFERRED-MANDATORY>                                  0
<PREFERRED>                                            0
<COMMON>                                               0
<OTHER-SE>                                     1,539,651
<TOTAL-LIABILITY-AND-EQUITY>                   4,899,975
<PREMIUMS>                                     1,318,424
<INVESTMENT-INCOME>                              158,301
<INVESTMENT-GAINS>                                  (925)
<OTHER-INCOME>                                   153,357
<BENEFITS>                                       273,162
<UNDERWRITING-AMORTIZATION>                            0
<UNDERWRITING-OTHER>                                   0
<INCOME-PRETAX>                                  111,889
<INCOME-TAX>                                      35,030
<INCOME-CONTINUING>                               76,859
<DISCONTINUED>                                         0
<EXTRAORDINARY>                                        0
<CHANGES>                                              0
<NET-INCOME>                                      76,859
<EPS-PRIMARY>                                      10.57
<EPS-DILUTED>                                      10.57
<RESERVE-OPEN>                                         0
<PROVISION-CURRENT>                                    0 
<PROVISION-PRIOR>                                      0
<PAYMENTS-CURRENT>                                     0
<PAYMENTS-PRIOR>                                       0
<RESERVE-CLOSE>                                        0
<CUMULATIVE-DEFICIENCY>                                0