WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<PAGE>
 
<ARTICLE>7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MUTUAL RISK
MANAGEMENT LTD.'S FINANCIAL STATEMENTS AS OF MARCH 31, 1998 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000826918
<NAME>  MUTUAL RISK MANAGEMENT LTD.
<MULTIPLIER> 1,000
<PERIOD-TYPE>                                         3 MOS
<FISCAL-YEAR-END>                                     DEC-31-1998
<PERIOD-START>                                        JAN-01-1998
<PERIOD-END>                                          MAR-31-1998
<DEBT-HELD-FOR-SALE>                                  404,088
<DEBT-CARRYING-VALUE>                                       0
<DEBT-MARKET-VALUE>                                         0
<EQUITIES>                                                  0
<MORTGAGE>                                                  0
<REAL-ESTATE>                                               0
<TOTAL-INVEST>                                        404,088
<CASH>                                                 74,546
<RECOVER-REINSURE>                                    697,459
<DEFERRED-ACQUISITION>                                 26,486
<TOTAL-ASSETS>                                      2,290,600
<POLICY-LOSSES>                                       795,539
<UNEARNED-PREMIUMS>                                   198,395
<POLICY-OTHER>                                              0
<POLICY-HOLDER-FUNDS>                                   42,145
<NOTES-PAYABLE>                                       130,386
<PREFERRED--MANDATORY>                                      0
<PREFERRED>                                                 0
<COMMON>                                                  391
<OTHER-SE>                                            276,743
[TOTAL-LIABILITIES-AND-EQUITY]                      2,290,600
<PREMIUMS>                                             28,929
<INVESTMENT-INCOME>                                     7,947
<INVESTMENT-GAINS>                                       (213)
<OTHER-INCOME>                                           (131)
<BENEFITS>                                             21,499
<UNDERWRITING-AMORTIZATION>                             8,096
<UNDERWRITING-OTHER>                                   21,710
<INCOME-PRETAX>                                        16,783
<INCOME-TAX>                                            2,252
<INCOME-CONTINUING>                                    14,531
<DISCONTINUED>                                              0
<EXTRAORDINARY>                                             0
<CHANGES>                                                   0
<NET-INCOME>                                           14,531
<EPS-PRIMARY>                                            0.38
<EPS-DILUTED>                                            0.34
<RESERVE-OPEN>                                              0
<PROVISION-CURRENT>                                         0
<PROVISION-PRIOR>                                           0
<PAYMENTS-CURRENT>                                          0
<PAYMENTS-PRIOR>                                            0
<RESERVE-CLOSE>                                             0
<CUMULATIVE-DEFICIENCY>                                     0

</TABLE>