<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>
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               DEC-31-1998
<DEBT-HELD-FOR-SALE>                       481,844,000
<DEBT-CARRYING-VALUE>                       55,926,000
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                  42,196,000
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                             579,966,000
<CASH>                                      32,605,000
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                      24,799,000
<TOTAL-ASSETS>                             709,778,000
<POLICY-LOSSES>                            218,701,000
<UNEARNED-PREMIUMS>                        135,088,000
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                      0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                   105,100,000
<OTHER-SE>                                 235,724,000
<TOTAL-LIABILITY-AND-EQUITY>               709,778,000
<PREMIUMS>                                 356,210,000
<INVESTMENT-INCOME>                         32,506,000
<INVESTMENT-GAINS>                           2,925,000
<OTHER-INCOME>                              10,418,000
<BENEFITS>                                 242,294,000
<UNDERWRITING-AMORTIZATION>                 85,214,000
<UNDERWRITING-OTHER>                        19,010,000
<INCOME-PRETAX>                             49,605,000
<INCOME-TAX>                                12,108,000
<INCOME-CONTINUING>                         37,497,000
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                37,497,000
<EPS-PRIMARY>                                     0.89
<EPS-DILUTED>                                     0.87
<RESERVE-OPEN>                             194,155,000
<PROVISION-CURRENT>                        255,885,000
<PROVISION-PRIOR>                         (13,591,000)
<PAYMENTS-CURRENT>                         144,744,000
<PAYMENTS-PRIOR>                            86,671,000
<RESERVE-CLOSE>                            205,034,000
<CUMULATIVE-DEFICIENCY>                    (13,591,000)