<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET AND THE CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS OF ARM FINANCIAL GROUP, INC.'S FORM 10-Q FOR THE PERIOD ENDED AND THE
THREE MONTHS ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               MAR-31-1997
<DEBT-HELD-FOR-SALE>                         3,191,109
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                      22,160
<MORTGAGE>                                      28,963
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                               3,365,529
<CASH>                                         133,471
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                          64,747
<TOTAL-ASSETS>                               4,943,221
<POLICY-LOSSES>                              3,499,471
<UNEARNED-PREMIUMS>                                  0
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                 38,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                     50,000
<COMMON>                                             0
<OTHER-SE>                                     107,974
<TOTAL-LIABILITY-AND-EQUITY>                 4,943,221
<PREMIUMS>                                           0
<INVESTMENT-INCOME>                             69,700
<INVESTMENT-GAINS>                               2,231
<OTHER-INCOME>                                   5,520
<BENEFITS>                                      51,325
<UNDERWRITING-AMORTIZATION>                      2,175
<UNDERWRITING-OTHER>                             8,794
<INCOME-PRETAX>                                 10,424
<INCOME-TAX>                                     2,814
<INCOME-CONTINUING>                              7,610
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     7,610
<EPS-PRIMARY>                                   258.99
<EPS-DILUTED>                                   258.99
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0