<ARTICLE>                     7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FINANCIAL
SECURITY ASSURANCE HOLDINGS LTD. AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER>                  1,000
       
                             
<PERIOD-TYPE>                               9-MOS
<FISCAL-YEAR-END>                     DEC-31-1996
<PERIOD-START>                        JAN-01-1996
<PERIOD-END>                          SEP-30-1996
<DEBT-HELD-FOR-SALE>                    1,164,053
<DEBT-CARRYING-VALUE>                           0
<DEBT-MARKET-VALUE>                             0  
<EQUITIES>                                  7,801
<MORTGAGE>                                      0
<REAL-ESTATE>                                   0
<TOTAL-INVEST>                          1,171,854
<CASH>                                      7,394
<RECOVER-REINSURE>                         36,350
<DEFERRED-ACQUISITION>                    139,083
<TOTAL-ASSETS>                          1,548,397
<POLICY-LOSSES>                            81,452
<UNEARNED-PREMIUMS>                       505,955
<POLICY-OTHER>                                  0
<POLICY-HOLDER-FUNDS>                           0
<NOTES-PAYABLE>                            30,000
<PREFERRED-MANDATORY>                           0
<PREFERRED>                                   700
<COMMON>                                  695,441
<OTHER-SE>                                 82,395
<TOTAL-LIABILITY-AND-EQUITY>            1,548,397
<PREMIUMS>                                 64,121
<INVESTMENT-INCOME>                        48,135
<INVESTMENT-GAINS>                         (1,826)
<OTHER-INCOME>                                224
<BENEFITS>                                  4,637
<UNDERWRITING-AMORTIZATION>                18,081
<UNDERWRITING-OTHER>                       13,543
<INCOME-PRETAX>                            74,393
<INCOME-TAX>                               18,891
<INCOME-CONTINUING>                        55,502
<DISCONTINUED>                                  0 
<EXTRAORDINARY>                                 0 
<CHANGES>                                       0
<NET-INCOME>                               55,502
<EPS-PRIMARY>                                1.80
<EPS-DILUTED>                                1.79
<RESERVE-OPEN>                            111,759
<PROVISION-CURRENT>                         6,584
<PROVISION-PRIOR>                               0
<PAYMENTS-CURRENT>                              0
<PAYMENTS-PRIOR>                           36,891
<RESERVE-CLOSE>                            81,452
<CUMULATIVE-DEFICIENCY>                         0