<ARTICLE> 7 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS FILED HEREWITH AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> DEC-31-1998 <DEBT-HELD-FOR-SALE> 566 <DEBT-CARRYING-VALUE> 0 <DEBT-MARKET-VALUE> 0 <EQUITIES> 437 <MORTGAGE> 11 <REAL-ESTATE> 0 <TOTAL-INVEST> 1014 <CASH> 81 <F1> <RECOVER-REINSURE> 630 <DEFERRED-ACQUISITION> 47 <TOTAL-ASSETS> 2144 <POLICY-LOSSES> 550 <UNEARNED-PREMIUMS> 478 <POLICY-OTHER> 0 <POLICY-HOLDER-FUNDS> 0 <NOTES-PAYABLE> 46 <PREFERRED-MANDATORY> 409 <F2> <PREFERRED> 0 <COMMON> 10 <OTHER-SE> 409 <TOTAL-LIABILITY-AND-EQUITY> 2144 <PREMIUMS> 396 <INVESTMENT-INCOME> 64 <INVESTMENT-GAINS> 25 <OTHER-INCOME> 130 <F3> <BENEFITS> 175 <UNDERWRITING-AMORTIZATION> 66 <UNDERWRITING-OTHER> 201 <F4> <INCOME-PRETAX> 156 <INCOME-TAX> 51 <INCOME-CONTINUING> 104 <DISCONTINUED> 30 <F5> <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 134 <EPS-PRIMARY> 4.59<F6><F7> <EPS-DILUTED> 4.21<F6><F8> <RESERVE-OPEN> 277 <PROVISION-CURRENT> 565 <PROVISION-PRIOR> 47 <PAYMENTS-CURRENT> 141 <PAYMENTS-PRIOR> 197 <RESERVE-CLOSE> 550 <CUMULATIVE-DEFICIENCY> 0 <FN> <F1>Cash includes short-term investments. <F2>Company obligated mandatorily redeemable capital securities and convertible capital securities classified at mezzanine level on Consolidated Statements of Financial Position. <F3>Includes gain on sale of IRI. <F4>Includes engineering services, underwriting and inspection and interest expense. <F5>Net gain on discontinued operations of Radian, after tax. <F6>Reflects the impact of three-for-two stock split approved by the Board of Directors on April 21, 1998 for net income. <F7>Per SFAS No. 128 "Earnings per Share", this item represents EPS-Basic. <F8>Per SFAS No. 128 "Earnings per Share", this item represents EPS-Assuming Dilution. </FN>