Exhibit 23.1

                       CONSENT OF INDEPENDENT AUDITORS


We consent to the incorporation by reference in the Registration Statements 
on Form S-8 (Securities and Exchange Commission Registration Numbers 
333-36769, 333-59321, and 333-61775) of our reports dated February 9, 1999, 
with respect to the consolidated financial statements and schedules of ARM 
Financial Group, Inc. included in the Annual Report (Form 10-K) for the year 
ended December 31, 1998.



                                      /s/ Ernst & Young LLP

Louisville, Kentucky
March 16, 1999