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                                                                      EXHIBIT 23





                        CONSENT OF INDEPENDENT AUDITORS

We consent to the incorporation by reference in the Registration Statement
(Form S-8 No. 333-04887) pertaining to the American States Financial
Corporation Employees' Savings and Profit-Sharing Plan, the Registration
Statement (Form S-8 No. 333-04689) pertaining to the American States Financial
Corporation Stock Option Incentive Plan and in the related prospectuses of our
report dated January 28, 1997, with respect to the consolidated financial
statements and schedules of American States Financial Corporation and
subsidiaries included in the Annual Report (Form 10K) for the year ended
December 31, 1996.



                                                     ERNST & YOUNG

February 24, 1997