<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM STATE AUTO
FINANCIAL CORPORATION'S QUARTERLY REPORTED ON FORM 10-Q FOR THE INTERIM PERIOD
ENDED SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               SEP-30-1997
<DEBT-HELD-FOR-SALE>                       407,015,000
<DEBT-CARRYING-VALUE>                       81,256,000
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                  24,776,000
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                             513,048,000
<CASH>                                      31,478,000
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                      21,789,000
<TOTAL-ASSETS>                             622,907,000
<POLICY-LOSSES>                            208,850,000
<UNEARNED-PREMIUMS>                        125,272,000
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                      0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                   103,947,000
<OTHER-SE>                                 177,003,000
<TOTAL-LIABILITY-AND-EQUITY>               622,907,000
<PREMIUMS>                                 238,748,000
<INVESTMENT-INCOME>                         23,118,000
<INVESTMENT-GAINS>                           2,091,000
<OTHER-INCOME>                               5,542,000
<BENEFITS>                                 157,363,000
<UNDERWRITING-AMORTIZATION>                          0
<UNDERWRITING-OTHER>                        71,374,000
<INCOME-PRETAX>                             39,056,000
<INCOME-TAX>                                10,758,000
<INCOME-CONTINUING>                         28,298,000
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                28,298,000
<EPS-PRIMARY>                                     0.68
<EPS-DILUTED>                                     0.67
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0