<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM STATE AUTO
FINANCIAL CORPORATION'S AUDITED FINANCIAL STATEMENTS ON FORM 10-K FOR THE YEAR
ENDED DECEMBER 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED> 
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               DEC-31-1996
<DEBT-HELD-FOR-SALE>                       392,469,000
<DEBT-CARRYING-VALUE>                       90,251,000
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                  16,556,000
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                             499,277,000
<CASH>                                      15,845,000
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                      20,033,000
<TOTAL-ASSETS>                             586,327,000
<POLICY-LOSSES>                            211,611,000
<UNEARNED-PREMIUMS>                        118,548,000
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                      0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                   103,520,000
<OTHER-SE>                                 144,099,000
<TOTAL-LIABILITY-AND-EQUITY>               586,327,000
<PREMIUMS>                                 304,472,000
<INVESTMENT-INCOME>                         29,863,000
<INVESTMENT-GAINS>                           2,788,000
<OTHER-INCOME>                               7,974,000
<BENEFITS>                                 220,034,000
<UNDERWRITING-AMORTIZATION>                 73,688,000
<UNDERWRITING-OTHER>                        12,315,000
<INCOME-PRETAX>                             34,792,000
<INCOME-TAX>                                 8,385,000
<INCOME-CONTINUING>                         26,407,000
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                26,407,000
<EPS-PRIMARY>                                     0.64
<EPS-DILUTED>                                     0.63
<RESERVE-OPEN>                             206,327,000
<PROVISION-CURRENT>                        246,886,000
<PROVISION-PRIOR>                         (26,852,000)
<PAYMENTS-CURRENT>                         148,095,000
<PAYMENTS-PRIOR>                            78,786,000
<RESERVE-CLOSE>                            226,881,000
<CUMULATIVE-DEFICIENCY>                   (26,852,000)