<TABLE> <S> <C>

<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CNA SURETY
CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND RELATED NOTES
AND SCHEDULES THERETO INCLUDED IN THIS ANNUAL REPORT ON FORM 10-K AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. CNA SURETY
WAS FORMED ON SEPTEMBER 30, 1997 AS PART OF THE MERGER OF CAPSURE HOLDINGS CORP.
AND ITS SUBSIDIARIES (WESTERN SURETY COMPANY AND UNIVERSAL SURETY OF AMERICA)
AND THE SURETY BUSINESS OF CNA FINANCIAL CORPORATION.
</LEGEND>
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             SEP-30-1997
<PERIOD-END>                               DEC-31-1997
<DEBT-HELD-FOR-SALE>                           266,301
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                           0
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                 419,537
<CASH>                                             130
<RECOVER-REINSURE>                              55,151
<DEFERRED-ACQUISITION>                          64,144
<TOTAL-ASSETS>                                 727,180
<POLICY-LOSSES>                                130,381
<UNEARNED-PREMIUMS>                            173,836
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                118,000
<PREFERRED-MANDATORY>                              433
<PREFERRED>                                          0
<COMMON>                                             0
<OTHER-SE>                                     256,299
<TOTAL-LIABILITY-AND-EQUITY>                   727,180
<PREMIUMS>                                      65,433
<INVESTMENT-INCOME>                              5,766
<INVESTMENT-GAINS>                                  85
<OTHER-INCOME>                                       0
<BENEFITS>                                      12,134
<UNDERWRITING-AMORTIZATION>                     25,881
<UNDERWRITING-OTHER>                            12,332
<INCOME-PRETAX>                                 17,659
<INCOME-TAX>                                     6,663
<INCOME-CONTINUING>                             10,996
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    10,996
<EPS-PRIMARY>                                      .25
<EPS-DILUTED>                                      .25
<RESERVE-OPEN>                                 115,008
<PROVISION-CURRENT>                             12,781
<PROVISION-PRIOR>                                (647)
<PAYMENTS-CURRENT>                               4,256
<PAYMENTS-PRIOR>                                   161
<RESERVE-CLOSE>                                122,725
<CUMULATIVE-DEFICIENCY>                         40,886
        

</TABLE>