<ARTICLE> 7 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM STATE AUTO FINANCIAL CORPORATION'S QUARTERLY REPORT ON FORM 10-Q FOR THE INTERIM PERIOD ENDED MARCH 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> MAR-31-1998 <DEBT-HELD-FOR-SALE> 355,875,000 <DEBT-CARRYING-VALUE> 76,336,000 <DEBT-MARKET-VALUE> 0 <EQUITIES> 5,251,000 <MORTGAGE> 0 <REAL-ESTATE> 0 <TOTAL-INVEST> 437,462,000 <CASH> 19,185,000 <RECOVER-REINSURE> 0 <DEFERRED-ACQUISITION> 19,075,000 <TOTAL-ASSETS> 529,595,000 <POLICY-LOSSES> 178,803,000 <UNEARNED-PREMIUMS> 107,222,000 <POLICY-OTHER> 0 <POLICY-HOLDER-FUNDS> 0 <NOTES-PAYABLE> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 91,753,000 <OTHER-SE> 142,730,000 <TOTAL-LIABILITY-AND-EQUITY> 529,595,000 <PREMIUMS> 70,933,000 <INVESTMENT-INCOME> 6,528,000 <INVESTMENT-GAINS> 290,000 <OTHER-INCOME> 2,331,000 <BENEFITS> 45,132,000 <UNDERWRITING-AMORTIZATION> 0 <UNDERWRITING-OTHER> 20,821,000 <INCOME-PRETAX> 13,477,000 <INCOME-TAX> 3,714,000 <INCOME-CONTINUING> 9,763,000 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 3,714,000 <EPS-PRIMARY> 0.53 <EPS-DILUTED> 0.52 <RESERVE-OPEN> 0 <PROVISION-CURRENT> 0 <PROVISION-PRIOR> 0 <PAYMENTS-CURRENT> 0 <PAYMENTS-PRIOR> 0 <RESERVE-CLOSE> 0 <CUMULATIVE-DEFICIENCY> 0