<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MEDICAL ASSURANCE, INC. FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               SEP-30-1998
<EXCHANGE-RATE>                                      1
<DEBT-HELD-FOR-SALE>                           648,820
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                      43,169
<MORTGAGE>                                           0
<REAL-ESTATE>                                   11,488
<TOTAL-INVEST>                                 761,982
<CASH>                                          46,342
<RECOVER-REINSURE>                             176,215
<DEFERRED-ACQUISITION>                               0
<TOTAL-ASSETS>                               1,142,984
<POLICY-LOSSES>                                665,111
<UNEARNED-PREMIUMS>                             83,117
<POLICY-OTHER>                                  52,658
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                      0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        21,722     
<OTHER-SE>                                     293,761
<TOTAL-LIABILITY-AND-EQUITY>                 1,142,984
<PREMIUMS>                                     104,019
<INVESTMENT-INCOME>                             29,577
<INVESTMENT-GAINS>                               6,260
<OTHER-INCOME>                                   1,426
<BENEFITS>                                      70,142
<UNDERWRITING-AMORTIZATION>                     11,823
<UNDERWRITING-OTHER>                            13,010
<INCOME-PRETAX>                                 46,307
<INCOME-TAX>                                    11,820
<INCOME-CONTINUING>                             34,487
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    34,487
<EPS-PRIMARY>                                     1.61
<EPS-DILUTED>                                     1.61
<RESERVE-OPEN>                                 464,131
<PROVISION-CURRENT>                            101,142
<PROVISION-PRIOR>                              (31,000)
<PAYMENTS-CURRENT>                              (4,132)
<PAYMENTS-PRIOR>                               (41,168)
<RESERVE-CLOSE>                                488,973
<CUMULATIVE-DEFICIENCY>                        (31,000)