EXHIBIT 23.2
 
                        CONSENT OF INDEPENDENT AUDITORS
 
   
    We consent to the reference to our firm under the captions "Experts,"
"Summary Historical Financial Information" and "Selected Financial Information",
and to the use of our reports dated February 12, 1997, except for Note 10, as to
which the date is          , 1997, in the Registration Statement (Form S-1 No.
333-14693) and related Prospectus of ARM Financial Group, Inc. dated          ,
1997.
    
 
Louisville, Kentucky
 
   
         , 1997
    
 
   
    The foregoing consent is in the form that will be signed upon completion of
the recapitalization described in Note 10 to the consolidated financial
statements.
    
 
   
                                           /s/ ERNST & YOUNG LLP
    
 
   
Louisville, Kentucky
    
 
   
March 25, 1997