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                                                                    EXHIBIT 23.2


   
We consent to the reference to our firm under the caption "Experts" and to the
use of our report dated February 10, 1998, in Amendment No. 2 to the
Registration Statement (Form S-3 No. 333-53967) and related Prospectus of ARM
Financial Group, Inc. dated  June 17, 1998.                      
    

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
June 16, 1998