<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM DANIELSON
HOLDING CORPORATION FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1996 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<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>                           162,916
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                         602
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                 168,570
<CASH>                                             294
<RECOVER-REINSURE>                              21,075<F1>
<DEFERRED-ACQUISITION>                           1,031
<TOTAL-ASSETS>                                 210,389
<POLICY-LOSSES>                                124,258
<UNEARNED-PREMIUMS>                              8,772
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                            4,665
<NOTES-PAYABLE>                                      0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                         1,537
<OTHER-SE>                                      64,285<F2>
<TOTAL-LIABILITY-AND-EQUITY>                   210,389
<PREMIUMS>                                       8,968
<INVESTMENT-INCOME>                              2,839
<INVESTMENT-GAINS>                                   0
<OTHER-INCOME>                                   1,418<F3>
<BENEFITS>                                       6,671
<UNDERWRITING-AMORTIZATION>                      1,410
<UNDERWRITING-OTHER>                             4,530
<INCOME-PRETAX>                                    570
<INCOME-TAX>                                        13
<INCOME-CONTINUING>                                570
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       557
<EPS-PRIMARY>                                      .03
<EPS-DILUTED>                                      .03
<RESERVE-OPEN>                                 116,294
<PROVISION-CURRENT>                              6,671
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                               1,529
<PAYMENTS-PRIOR>                                15,276
<RESERVE-CLOSE>                                106,160
<CUMULATIVE-DEFICIENCY>                          3,123
<FN>
<F1>Included in this caption are reinsurance recoverables on unpaid losses of
    18,098 and reinsurance recoverables on paid losses of 2,977.
<F2>Included in stockholders' Equity-Other is treasury stock of 66.
<F3>Included in caption other income is Trust fee income of 1,085.
</FN>