<ARTICLE> 7
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AND CONSOLIDATED STATEMENTS OF OPERATIONS OF CITATION INSURANCE GROUP AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               MAR-31-1996
<DEBT-HELD-FOR-SALE>                           127,887
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                           0
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                 127,887
<CASH>                                           2,478
<RECOVER-REINSURE>                               1,555
<DEFERRED-ACQUISITION>                           4,208
<TOTAL-ASSETS>                                 176,634
<POLICY-LOSSES>                                104,019
<UNEARNED-PREMIUMS>                             17,570
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                      0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           622
<OTHER-SE>                                      44,271
<TOTAL-LIABILITY-AND-EQUITY>                   176,634
<PREMIUMS>                                      12,900
<INVESTMENT-INCOME>                              2,212
<INVESTMENT-GAINS>                                   0
<OTHER-INCOME>                                      40
<BENEFITS>                                      10,343
<UNDERWRITING-AMORTIZATION>                      3,260
<UNDERWRITING-OTHER>                               979
<INCOME-PRETAX>                                    436
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                                436
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       436
<EPS-PRIMARY>                                      .07
<EPS-DILUTED>                                      .07
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0