<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>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             DEC-31-1995
<PERIOD-END>                               JUN-30-1996
<DEBT-HELD-FOR-SALE>                           124,152
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                           0
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                 124,152
<CASH>                                             452
<RECOVER-REINSURE>                               1,475
<DEFERRED-ACQUISITION>                           2,539
<TOTAL-ASSETS>                                 165,208
<POLICY-LOSSES>                                101,223
<UNEARNED-PREMIUMS>                             20,448
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                      0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           622
<OTHER-SE>                                      37,293
<TOTAL-LIABILITY-AND-EQUITY>                   165,208
<PREMIUMS>                                      25,616
<INVESTMENT-INCOME>                              4,378
<INVESTMENT-GAINS>                                 139
<OTHER-INCOME>                                      79
<BENEFITS>                                      20,858
<UNDERWRITING-AMORTIZATION>                      8,427
<UNDERWRITING-OTHER>                             1,783
<INCOME-PRETAX>                                (1,165)
<INCOME-TAX>                                     4,390
<INCOME-CONTINUING>                            (5,555)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (5,555)
<EPS-PRIMARY>                                    (.91)
<EPS-DILUTED>                                    (.91)
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0