<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 SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               SEP-30-1998
<DEBT-HELD-FOR-SALE>                       485,132,000
<DEBT-CARRYING-VALUE>                       60,985,000
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                  31,205,000
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                             577,322,000
<CASH>                                      27,554,000
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                      24,600,000
<TOTAL-ASSETS>                             701,381,000
<POLICY-LOSSES>                            224,515,000
<UNEARNED-PREMIUMS>                        137,607,000
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                      0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                   104,834,000
<OTHER-SE>                                 221,128,000
<TOTAL-LIABILITY-AND-EQUITY>               701,381,000
<PREMIUMS>                                 267,122,000
<INVESTMENT-INCOME>                         24,488,000
<INVESTMENT-GAINS>                           2,165,000
<OTHER-INCOME>                               5,945,000
<BENEFITS>                                 184,930,000
<UNDERWRITING-AMORTIZATION>                          0
<UNDERWRITING-OTHER>                        79,477,000
<INCOME-PRETAX>                             32,638,000
<INCOME-TAX>                                 7,775,000
<INCOME-CONTINUING>                         24,863,000
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                24,863,000
<EPS-PRIMARY>                                     0.59
<EPS-DILUTED>                                     0.58
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0