<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET AND THE CONDENSED CONSOLIDATED STATEMENT
OF INCOME AT ARM FINANCIAL GROUP, INC'S FORM 10-Q FOR THE QUARTER ENDED JUNE
30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               JUN-30-1998
<DEBT-HELD-FOR-SALE>                         5,605,965
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                      30,423
<MORTGAGE>                                      15,460
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                               5,777,490
<CASH>                                         210,598
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                         107,593
<TOTAL-ASSETS>                               9,025,809
<POLICY-LOSSES>                              5,418,223
<UNEARNED-PREMIUMS>                                  0
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                 38,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                     50,000
<COMMON>                                           235
<OTHER-SE>                                     250,250
<TOTAL-LIABILITY-AND-EQUITY>                 9,025,809
<PREMIUMS>                                           0
<INVESTMENT-INCOME>                            219,569
<INVESTMENT-GAINS>                               6,951
<OTHER-INCOME>                                  10,072
<BENEFITS>                                     174,337
<UNDERWRITING-AMORTIZATION>                      5,909
<UNDERWRITING-OTHER>                            17,834
<INCOME-PRETAX>                                 32,583
<INCOME-TAX>                                     9,707
<INCOME-CONTINUING>                             22,876
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    22,876
<EPS-PRIMARY>                                     0.88
<EPS-DILUTED>                                     0.84
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0