<ARTICLE> 7 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED FINANCIAL STATEMENTS CONTAINED IN THE FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 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> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <EXCHANGE-RATE> 1 <DEBT-HELD-FOR-SALE> 12,067 <DEBT-CARRYING-VALUE> 0 <DEBT-MARKET-VALUE> 0 <EQUITIES> 305 <MORTGAGE> 13 <REAL-ESTATE> 0 <TOTAL-INVEST> 12,725 <CASH> 608 <RECOVER-REINSURE> 2,960 <DEFERRED-ACQUISITION> 864 <TOTAL-ASSETS> 47,279 <POLICY-LOSSES> 3,815 <UNEARNED-PREMIUMS> 1 <POLICY-OTHER> 19 <POLICY-HOLDER-FUNDS> 11,305 <NOTES-PAYABLE> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 3 <OTHER-SE> 1,355 <TOTAL-LIABILITY-AND-EQUITY> 47,279 <PREMIUMS> 79 <INVESTMENT-INCOME> 878 <INVESTMENT-GAINS> 10 <OTHER-INCOME> 30 <BENEFITS> 714 <UNDERWRITING-AMORTIZATION> 107 <UNDERWRITING-OTHER> 0 <INCOME-PRETAX> 187 <INCOME-TAX> 47 <INCOME-CONTINUING> 140 <DISCONTINUED> 121 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 260 <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