<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> <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <DEBT-HELD-FOR-SALE> 1,324,908 <DEBT-CARRYING-VALUE> 0 <DEBT-MARKET-VALUE> 0 <EQUITIES> 219,745 <MORTGAGE> 0 <REAL-ESTATE> 0 <TOTAL-INVEST> 1,590,645 <CASH> 1,887 <RECOVER-REINSURE> 0 <DEFERRED-ACQUISITION> 61,947 <TOTAL-ASSETS> 1,877,025 <POLICY-LOSSES> 405,976 <UNEARNED-PREMIUMS> 327,129 <POLICY-OTHER> 0 <POLICY-HOLDER-FUNDS> 0 <NOTES-PAYABLE> 78,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 48,830 <OTHER-SE> 868,545 <TOTAL-LIABILITY-AND-EQUITY> 1,877,025 <PREMIUMS> 1,121,584 <INVESTMENT-INCOME> 96,169 <INVESTMENT-GAINS> (1,340) <OTHER-INCOME> 5,710 <BENEFITS> 684,468 <UNDERWRITING-AMORTIZATION> 252,592 <UNDERWRITING-OTHER> 44,941 <INCOME-PRETAX> 235,280 <INCOME-TAX> 57,754 <INCOME-CONTINUING> 177,526 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 177,526 <EPS-PRIMARY> 3.23 <EPS-DILUTED> 3.21 <RESERVE-OPEN> 386,270 <PROVISION-CURRENT> 693,877 <PROVISION-PRIOR> (9,409) <PAYMENTS-CURRENT> 437,612 <PAYMENTS-PRIOR> 247,310 <RESERVE-CLOSE> 385,816 <CUMULATIVE-DEFICIENCY> 9,409