<ARTICLE> 7
<CIK> 0000912558
<NAME> GRYPHON HOLDINGS INC.
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               MAR-31-1996
<DEBT-HELD-FOR-SALE>                            260188
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                           0
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                  260725
<CASH>                                           30000
<RECOVER-REINSURE>                               20676
<DEFERRED-ACQUISITION>                           12201
<TOTAL-ASSETS>                                  521241
<POLICY-LOSSES>                                 301927
<UNEARNED-PREMIUMS>                              60412
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                  25500
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            81
<OTHER-SE>                                       91315
<TOTAL-LIABILITY-AND-EQUITY>                    521241
<PREMIUMS>                                       21951
<INVESTMENT-INCOME>                               4159
<INVESTMENT-GAINS>                                 802
<OTHER-INCOME>                                     270
<BENEFITS>                                       12853
<UNDERWRITING-AMORTIZATION>                       9234
<UNDERWRITING-OTHER>                                 0
<INCOME-PRETAX>                                   4658
<INCOME-TAX>                                      1153
<INCOME-CONTINUING>                               3505
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                      3505
<EPS-PRIMARY>                                      .53
<EPS-DILUTED>                                      .53
<RESERVE-OPEN>                                  155911
<PROVISION-CURRENT>                              12834
<PROVISION-PRIOR>                                   64
<PAYMENTS-CURRENT>                                3392
<PAYMENTS-PRIOR>                                  6235
<RESERVE-CLOSE>                                 159182
<CUMULATIVE-DEFICIENCY>                            648