<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET AND CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS OF CITATION INSURANCE GROUP AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               SEP-30-1996
<DEBT-HELD-FOR-SALE>                           120,215
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                           0
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                 120,215
<CASH>                                             480
<RECOVER-REINSURE>                               1,452
<DEFERRED-ACQUISITION>                           2,487
<TOTAL-ASSETS>                                 158,342
<POLICY-LOSSES>                                100,294
<UNEARNED-PREMIUMS>                             19,498
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                      0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           622
<OTHER-SE>                                      34,641
<TOTAL-LIABILITY-AND-EQUITY>                   158,342
<PREMIUMS>                                      38,002
<INVESTMENT-INCOME>                              6,510
<INVESTMENT-GAINS>                                 173
<OTHER-INCOME>                                     110
<BENEFITS>                                      32,810
<UNDERWRITING-AMORTIZATION>                     10,995
<UNDERWRITING-OTHER>                             3,164
<INCOME-PRETAX>                                 (2,825)
<INCOME-TAX>                                     5,390
<INCOME-CONTINUING>                             (8,215)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    (8,215)
<EPS-PRIMARY>                                    (1.35)
<EPS-DILUTED>                                    (1.35)
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0