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                                                                    EXHIBIT 23.1
 
                        CONSENT OF INDEPENDENT AUDITORS
 
   
     We consent to the reference to our firm under the caption "Experts" and to
the use of our reports dated January 31, 1996 (except for Note 1, as to which
the date is May 16, 1996 and Note 16, as to which the date is February 14,
1996), with respect to the consolidated financial statements and schedules of
American States Financial Corporation included in the Registration Statement on
Form S-1 and related Prospectus of American States Financial Corporation for the
registration of 10,000,000 shares of its common stock.
    
 
Indianapolis, Indiana
   
May 17, 1996
    
 
   
                                          ERNST & YOUNG LLP
    
 
   
                                          /s/ ERNST & YOUNG LLP