EXHIBIT 23.2
                              
     CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
                              
We consent to incorporation by reference in the Post
Effective Amendment No. 1 to the Registration Statement
(Form S-8 No. 33- 83630) pertaining to the 1993 Stock Option
Plan and Restricted Stock Plan of Gryphon Holdings Inc. of
our report dated February 21, 1995, with respect to the
consolidated financial statements and schedules of Gryphon
Holdings Inc. included in its Annual Report (Form 10-K) for
the year ended December 31, 1996, filed with the Securities
and Exchange Commission.


                                   ERNST & YOUNG LLP
New York, New York
February 18, 1998