1
                                                                   Exhibit 23.2


     We consent to the reference to our firm under the captions "Experts" and
"Selected Historical Consolidated Financial Data and Other Data" and to the use
of our report dated February 10, 1998, in Amendment No. 2 to the Registration
Statement (Form S-3 No. 333-49805) and related Prospectus of ARM Financial
Group, Inc.

     We also consent to the incorporation by reference therein of our reports
dated February 10, 1998 with respect to the consolidated financial statements
and financial statement schedules of ARM Financial Group, Inc. included in the
Annual Report (Form 10-K) for 1997 filed with the Securities and Exchange
Commission.


                                                 /s/ Ernst & Young LLP



Louisville, Kentucky
May 5, 1998