<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM STATE AUTO
FINANCIAL CORPORATION'S AUDITED FINANCIAL STATEMENTS ON FORM 10K FOR THE YEAR
ENDED DECEMBER 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-31-1997
<PERIOD-END>                               DEC-31-1997
<DEBT-HELD-FOR-SALE>                       320,299,000
<DEBT-CARRYING-VALUE>                       79,300,000
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                   4,580,000
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                             404,179,000
<CASH>                                      23,918,000
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                      17,689,000
<TOTAL-ASSETS>                             493,151,000
<POLICY-LOSSES>                            162,446,000
<UNEARNED-PREMIUMS>                         99,445,000
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                      0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                    91,709,000
<OTHER-SE>                                 133,770,000
<TOTAL-LIABILITY-AND-EQUITY>               493,151,000
<PREMIUMS>                                 254,682,000
<INVESTMENT-INCOME>                         25,078,000
<INVESTMENT-GAINS>                             543,000
<OTHER-INCOME>                               8,705,000
<BENEFITS>                                 165,790,000
<UNDERWRITING-AMORTIZATION>                 60,544,000
<UNDERWRITING-OTHER>                        13,669,000
<INCOME-PRETAX>                             47,084,000
<INCOME-TAX>                                13,125,000
<INCOME-CONTINUING>                         33,959,000
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                33,959,000
<EPS-PRIMARY>                                     1.86
<EPS-DILUTED>                                     1.82
<RESERVE-OPEN>                             156,184,000
<PROVISION-CURRENT>                        179,295,000
<PROVISION-PRIOR>                         (13,505,000)
<PAYMENTS-CURRENT>                         107,537,000
<PAYMENTS-PRIOR>                            61,862,000
<RESERVE-CLOSE>                            152,575,000
<CUMULATIVE-DEFICIENCY>                   (13,505,000)