<ARTICLE> 7 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS CONTAINED IN THE FORM 10-Q FOR THE FISCAL QUARTER ENDED SEPTEMBER 30, 1997 FOR AETNA LIFE INSURANCE AND ANNUITY COMPANY AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <CIK> 0000785986 <NAME> Aetna Life Insurance and Annuity Company <MULTIPLIER> 1,000,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> SEP-30-1997 <DEBT-HELD-FOR-SALE> 13,257 <DEBT-CARRYING-VALUE> 0 <DEBT-MARKET-VALUE> 0 <EQUITIES> 222 <MORTGAGE> 13 <REAL-ESTATE> 0 <TOTAL-INVEST> 14,058 <CASH> 614 <RECOVER-REINSURE> 9 <DEFERRED-ACQUISITION> 1,621 <TOTAL-ASSETS> 38,522 <POLICY-LOSSES> 3,758 <UNEARNED-PREMIUMS> 1 <POLICY-OTHER> 27 <POLICY-HOLDER-FUNDS> 11,075 <NOTES-PAYABLE> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 3 <OTHER-SE> 1,783 <TOTAL-LIABILITY-AND-EQUITY> 38,522 <PREMIUMS> 200 <INVESTMENT-INCOME> 805 <INVESTMENT-GAINS> 18 <OTHER-INCOME> 29 <BENEFITS> 853 <UNDERWRITING-AMORTIZATION> 0 <UNDERWRITING-OTHER> 0 <INCOME-PRETAX> 209 <INCOME-TAX> 64 <INCOME-CONTINUING> 145 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 145 <EPS-PRIMARY> 0 <EPS-DILUTED> 0 <RESERVE-OPEN> 0 <PROVISION-CURRENT> 0 <PROVISION-PRIOR> 0 <PAYMENTS-CURRENT> 0 <PAYMENTS-PRIOR> 0 <RESERVE-CLOSE> 0 <CUMULATIVE-DEFICIENCY> 0