<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