<ARTICLE>                                           7
<LEGEND>
     THIS SCHEDULE CONTAINS SUMMARY FINANACIAL INFORMATION EXTRACTED FROM FORM
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000 AND IS QUALIFIED IN ITS ENTIRETLY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK>                           0000225648
<NAME>                          DANIELSON HOLDING CORPORATION
<MULTIPLIER>                                   1000
<CURRENCY>                                     U.S. DOLLARS

                                            
<PERIOD-TYPE>                                  9-MOS
<FISCAL-YEAR-END>                              DEC-31-2000
<PERIOD-START>                                 JAN-01-2000
<PERIOD-END>                                   SEP-30-2000
<EXCHANGE-RATE>                                1
<DEBT-HELD-FOR-SALE>                           123,841
<DEBT-CARRYING-VALUE>                          0
<DEBT-MARKET-VALUE>                            0
<EQUITIES>                                     23,049
<MORTGAGE>                                     0
<REAL-ESTATE>                                  0
<TOTAL-INVEST>                                 149,422
<CASH>                                         2,794
<RECOVER-REINSURE>                             18,180 <F1>
<DEFERRED-ACQUISITION>                         3,512
<TOTAL-ASSETS>                                 199,401
<POLICY-LOSSES>                                86,807
<UNEARNED-PREMIUMS>                            21,692
<POLICY-OTHER>                                 0
<POLICY-HOLDER-FUNDS>                          732
<NOTES-PAYABLE>                                0
<PREFERRED-MANDATORY>                          1,849
<PREFERRED>                                    0
<COMMON>                                       0
<OTHER-SE>                                     81,908 <F2>
<TOTAL-LIABILITY-AND-EQUITY>                   199,401
<PREMIUMS>                                     48,140
<INVESTMENT-INCOME>                            6,528
<INVESTMENT-GAINS>                             5,741
<OTHER-INCOME>                                 791
<BENEFITS>                                     36,428
<UNDERWRITING-AMORTIZATION>                    8,824
<UNDERWRITING-OTHER>                           9,643
<INCOME-PRETAX>                                6,170
<INCOME-TAX>                                   144
<INCOME-CONTINUING>                            6,026
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   6,026
<EPS-BASIC>                                    .33 <F3>
<EPS-DILUTED>                                  .32 <F4>
<RESERVE-OPEN>                                 79,306
<PROVISION-CURRENT>                            35,895
<PROVISION-PRIOR>                              (467)
<PAYMENTS-CURRENT>                             17,315
<PAYMENTS-PRIOR>                               25,917
<RESERVE-CLOSE>                                71,502
<CUMULATIVE-DEFICIENCY>                        (2,491)
<FN>
<F1> INCLUDES REINSURANCE RECOVERABLES ON UNPAID LOSSES OF 14,305 AND
     REINSURANCE RECOVERABLES ON PAID LOSSES OF 3,875.
<F2> INCLUDES TREASURY STOCK OF (66).
<F3> REPRESENTS EARNINGS PER SHARE-BASIC.
<F4> REPRESENTS EARNINGS PERSHARE-DILUTED.
</FN>