<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM THE BALANCE SHEET
AND STATEMENT OF INCOME OF ARM FINANCIAL GROUP, INC.'S ,FORM 10-Q FOR THE
NINE MONTHS ENDED SEPTEMBER 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000

                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-START>                             JAN-01-1999
<PERIOD-END>                               SEP-30-1999
<DEBT-HELD-FOR-SALE>                         1,678,654
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                      21,514
<MORTGAGE>                                      12,372
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                               1,354,176
<CASH>                                         324,478
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                         162,023
<TOTAL-ASSETS>                               5,022,463
<POLICY-LOSSES>                              2,360,511
<UNEARNED-PREMIUMS>                                  0
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                 62,222
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                     75,000
<COMMON>                                           238
<OTHER-SE>                                   (136,348)
<TOTAL-LIABILITY-AND-EQUITY>                 5,022,463
<PREMIUMS>                                           0
<INVESTMENT-INCOME>                            178,423
<INVESTMENT-GAINS>                            (28,428)
<OTHER-INCOME>                                  20,621
<BENEFITS>                                     128,045
<UNDERWRITING-AMORTIZATION>                     16,796
<UNDERWRITING-OTHER>                            31,739
<INCOME-PRETAX>                               (22,956)
<INCOME-TAX>                                    31,356
<INCOME-CONTINUING>                           (54,312)
<DISCONTINUED>                               (193,013)
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 (247,325)
<EPS-BASIC>                                    (10.51)
<EPS-DILUTED>                                  (10.51)
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0