<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM THE BALANCE SHEET AND
STATEMENT OF INCOME OF ARM FINANCIAL GROUP, INC.'S FORM 10-Q FOR THE SIX MONTHS
ENDED JUNE 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000

                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-START>                             JAN-01-1999
<PERIOD-END>                               JUN-30-1999
<DEBT-HELD-FOR-SALE>                         6,264,509
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                      37,213
<MORTGAGE>                                      13,395
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                               5,870,723
<CASH>                                         393,786
<RECOVER-REINSURE>                                   0
<DEFERRED-ACQUISITION>                         158,089
<TOTAL-ASSETS>                              10,371,076
<POLICY-LOSSES>                              7,032,054
<UNEARNED-PREMIUMS>                                  0
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                 38,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                     75,000
<COMMON>                                           238
<OTHER-SE>                                      32,778
<TOTAL-LIABILITY-AND-EQUITY>                10,371,076
<PREMIUMS>                                           0
<INVESTMENT-INCOME>                            278,162
<INVESTMENT-GAINS>                           (181,148)
<OTHER-INCOME>                                  13,890
<BENEFITS>                                     216,116
<UNDERWRITING-AMORTIZATION>                      9,180
<UNDERWRITING-OTHER>                            22,484
<INCOME-PRETAX>                              (139,080)
<INCOME-TAX>                                    20,399
<INCOME-CONTINUING>                          (159,479)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 (159,479)
<EPS-BASIC>                                     (6.78)
<EPS-DILUTED>                                   (6.78)
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0