<ARTICLE>                     7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET OF RISK CAPITAL HOLDINGS, INC. AND ITS SUBSIDIARY AT
DECEMBER 31, 1998, AND THE RELATED STATEMENT OF INCOME, AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER>                                   1,000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                        DEC-31-1998
<PERIOD-START>                           JAN-01-1998
<PERIOD-END>                             DEC-31-1998
<DEBT-HELD-FOR-SALE>                         174,540
<DEBT-CARRYING-VALUE>                              0
<DEBT-MARKET-VALUE>                                0
<EQUITIES>                                   291,769
<MORTGAGE>                                         0
<REAL-ESTATE>                                      0
<TOTAL-INVEST>                               575,118
<CASH>                                        12,037
<RECOVER-REINSURE>                            31,087
<DEFERRED-ACQUISITION>                        23,515
<TOTAL-ASSETS>                               757,830
<POLICY-LOSSES>                              216,657
<UNEARNED-PREMIUMS>                          102,775
<POLICY-OTHER>                                     0
<POLICY-HOLDER-FUNDS>                              0
<NOTES-PAYABLE>                                    0
<PREFERRED-MANDATORY>                              0
<PREFERRED>                                        0
<COMMON>                                         171
<OTHER-SE>                                   397,831
<TOTAL-LIABILITY-AND-EQUITY>                 757,830
<PREMIUMS>                                   206,194
<INVESTMENT-INCOME>                           15,687
<INVESTMENT-GAINS>                            25,252
<OTHER-INCOME>                                     0
<BENEFITS>                                   176,125
<UNDERWRITING-AMORTIZATION>                   50,537
<UNDERWRITING-OTHER>                          16,009
<INCOME-PRETAX>                                4,462
<INCOME-TAX>                                     235
<INCOME-CONTINUING>                            3,091<F1>
<DISCONTINUED>                                     0
<EXTRAORDINARY>                                    0
<CHANGES>                                          0
<NET-INCOME>                                   3,091<F1>
<EPS-PRIMARY>                                    .18<F1>
<EPS-DILUTED>                                    .17<F1>
<RESERVE-OPEN>                                70,768
<PROVISION-CURRENT>                          178,957
<PROVISION-PRIOR>                             (2,832)
<PAYMENTS-CURRENT>                            41,910
<PAYMENTS-PRIOR>                              18,794
<RESERVE-CLOSE>                              186,189<F2>
<CUMULATIVE-DEFICIENCY>                       (2,832)
<FN>
<F1>  Includes equity in net loss of investees of $1,136. Net income excludes
      Other Comprehensive income (loss) which the Company adopted 1st Qtr 1998
      in a one financial statement approach. Comprehensive loss was $4,375 or
      $.26 per share Basic and Diluted.
<F2>  Loss reserves net of reinsurance.
</FN>