<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, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED> 
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-31-1997
<PERIOD-END>                               MAR-31-1997
<DEBT-HELD-FOR-SALE>                       296,482,000
<DEBT-CARRYING-VALUE>                       88,573,000
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                           0
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                             385,055,000
<CASH>                                      14,213,000
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                      16,583,000
<TOTAL-ASSETS>                             458,705,000
<POLICY-LOSSES>                            166,445,000
<UNEARNED-PREMIUMS>                         94,864,000
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                      0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                    90,759,000
<OTHER-SE>                                 100,046,000
<TOTAL-LIABILITY-AND-EQUITY>               458,705,000
<PREMIUMS>                                  62,251,000
<INVESTMENT-INCOME>                          6,236,000
<INVESTMENT-GAINS>                             238,000
<OTHER-INCOME>                               2,207,000
<BENEFITS>                                  41,940,000
<UNDERWRITING-AMORTIZATION>                          0
<UNDERWRITING-OTHER>                        18,175,000
<INCOME-PRETAX>                             10,345,000
<INCOME-TAX>                                 2,814,000
<INCOME-CONTINUING>                          7,531,000
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 7,531,000
<EPS-PRIMARY>                                     0.42
<EPS-DILUTED>                                     0.41
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0