<ARTICLE> 7 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN STATES FINANCIAL CORPORATION AND SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH CONSOLIDATED FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-START> JAN-01-1996 <PERIOD-END> DEC-31-1996 <DEBT-HELD-FOR-SALE> 0 <DEBT-CARRYING-VALUE> 3,763,880 <DEBT-MARKET-VALUE> 3,763,880 <EQUITIES> 435,137 <MORTGAGE> 32,293 <REAL-ESTATE> 0 <TOTAL-INVEST> 4,342,572 <CASH> 13,610 <RECOVER-REINSURE> 179,445 <DEFERRED-ACQUISITION> 202,233 <TOTAL-ASSETS> 5,541,083 <POLICY-LOSSES> 2,868,348 <UNEARNED-PREMIUMS> 711,955 <POLICY-OTHER> 0 <POLICY-HOLDER-FUNDS> 0 <NOTES-PAYABLE> 299,511 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 304,493 <OTHER-SE> 1,031,546 <TOTAL-LIABILITY-AND-EQUITY> 5,541,083 <PREMIUMS> 1,674,122 <INVESTMENT-INCOME> 274,314 <INVESTMENT-GAINS> 35,538 <OTHER-INCOME> 0 <BENEFITS> 1,248,879 <UNDERWRITING-AMORTIZATION> 338,012 <UNDERWRITING-OTHER> 201,401 <INCOME-PRETAX> 195,682 <INCOME-TAX> 25,976 <INCOME-CONTINUING> 169,706 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 169,706 <EPS-PRIMARY> 3.03 <EPS-DILUTED> 3.03 <RESERVE-OPEN> 2,294,458 <PROVISION-CURRENT> 1,245,580 <PROVISION-PRIOR> (45,705) <PAYMENTS-CURRENT> 653,977 <PAYMENTS-PRIOR> 578,664 <RESERVE-CLOSE> 2,261,692 <CUMULATIVE-DEFICIENCY> 45,705