<ARTICLE> 7 <LEGEND> This schedule contains summary financial information extracted from the condensed consolidated financial statements contained in the Form 10-Q for the nine months ended September 30, 1998 for the Aetna Life Insurance and Annuity Company and is qualified in its entirety by reference to such financial statements. </LEGEND> <CIK> 0000837010 <NAME> Aetna Life Insurance and Annuity Company <MULTIPLIER> 1,000,000 <CURRENCY> U.S. Dollars <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> SEP-30-1998 <EXCHANGE-RATE> 1 <DEBT-HELD-FOR-SALE> 12,208 <DEBT-CARRYING-VALUE> 0 <DEBT-MARKET-VALUE> 0 <EQUITIES> 192 <MORTGAGE> 13 <REAL-ESTATE> 0 <TOTAL-INVEST> 12,957 <CASH> 2,212 <RECOVER-REINSURE> 26 <DEFERRED-ACQUISITION> 1,734 <TOTAL-ASSETS> 42,886 <POLICY-LOSSES> 3,767 <UNEARNED-PREMIUMS> 1 <POLICY-OTHER> 34 <POLICY-HOLDER-FUNDS> 11,230 <NOTES-PAYABLE> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 3 <OTHER-SE> 1,985 <TOTAL-LIABILITY-AND-EQUITY> 42,886 <PREMIUMS> 55 <INVESTMENT-INCOME> 645 <INVESTMENT-GAINS> 9 <OTHER-INCOME> 22 <BENEFITS> 530 <UNDERWRITING-AMORTIZATION> 0 <UNDERWRITING-OTHER> 0 <INCOME-PRETAX> 139 <INCOME-TAX> 38 <INCOME-CONTINUING> 101 <DISCONTINUED> 62 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 163 <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