<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-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               DEC-31-1997
<DEBT-HELD-FOR-SALE>                       420,994,000
<DEBT-CARRYING-VALUE>                       79,300,000
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                  26,069,000
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                             526,363,000
<CASH>                                      30,931,000
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                      22,440,000
<TOTAL-ASSETS>                             638,823,000
<POLICY-LOSSES>                            206,250,000
<UNEARNED-PREMIUMS>                        125,033,000
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                      0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                   104,572,000
<OTHER-SE>                                 192,686,000
<TOTAL-LIABILITY-AND-EQUITY>               638,823,000
<PREMIUMS>                                 320,050,000
<INVESTMENT-INCOME>                         31,107,000
<INVESTMENT-GAINS>                           3,043,000
<OTHER-INCOME>                               8,776,000
<BENEFITS>                                 208,234,000
<UNDERWRITING-AMORTIZATION>                 76,842,000
<UNDERWRITING-OTHER>                        17,509,000
<INCOME-PRETAX>                             56,658,000
<INCOME-TAX>                                15,640,000
<INCOME-CONTINUING>                         40,998,000
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                40,998,000
<EPS-PRIMARY>                                     0.99
<EPS-DILUTED>                                     0.97
<RESERVE-OPEN>                             199,480,000
<PROVISION-CURRENT>                        225,666,000
<PROVISION-PRIOR>                         (17,432,000)
<PAYMENTS-CURRENT>                         134,890,000
<PAYMENTS-PRIOR>                            78,669,000
<RESERVE-CLOSE>                            194,155,000
<CUMULATIVE-DEFICIENCY>                    (17,432,000)