<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET AND THE CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS OF ARM FINANCIAL GROUP INC.'S FORM 10-Q FOR THE
PERIOD ENDED AND THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               SEP-30-1997
<DEBT-HELD-FOR-SALE>                         3,899,938
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                      40,478
<MORTGAGE>                                      16,666
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                               4,081,024
<CASH>                                         186,898
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                          81,391
<TOTAL-ASSETS>                               6,231,042
<POLICY-LOSSES>                              4,024,820
<UNEARNED-PREMIUMS>                                  0
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                 38,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                     50,000
<COMMON>                                           232
<OTHER-SE>                                     251,292
<TOTAL-LIABILITY-AND-EQUITY>                 6,231,042
<PREMIUMS>                                           0
<INVESTMENT-INCOME>                            235,270
<INVESTMENT-GAINS>                               3,027
<OTHER-INCOME>                                  17,528
<BENEFITS>                                     175,331
<UNDERWRITING-AMORTIZATION>                      7,680
<UNDERWRITING-OTHER>                            26,975
<INCOME-PRETAX>                                 26,580
<INCOME-TAX>                                     9,734
<INCOME-CONTINUING>                             16,846
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    16,846
<EPS-PRIMARY>                                     0.66
<EPS-DILUTED>                                     0.66
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0