UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 5
ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
( ) Check box if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue. See Instructions 1(b).
( ) Form 3 Holdings Reported
( ) Form 4 Transactions Reported
1. Name and Address of Reporting Person
Hurst, Robert J.
c/o Goldman, Sachs & Co.
85 Broad Street
New York, NY 10004
2. Issuer Name and Ticker or Trading Symbol
USF & G Corporation
FG
3. IRS or Social Security Number of Reporting Person (Voluntary)
4. Statement for Month/Year
12/31/1997
5. If Amendment, Date of Original (Month/Year)
6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
(X) Director ( ) 10% Owner ( ) Officer (give title below) ( ) Other
(specify below)
7. Individual or Joint/Group Reporting (Check Applicable Line)
(X) Form filed by One Reporting Person
( ) Form filed by More than One Reporting Person
<TABLE>
<CAPTION>
___________________________________________________________________________________________________________________________________
Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned |
___________________________________________________________________________________________________________________________________|
1. Title of Security |2. |3. |4.Securities Acquired (A) |5.Amount of |6.Dir |7.Nature of Indirect |
|Transaction| or Disposed of (D) | Securities |ect | Beneficial Ownership |
|Date |Code| | Beneficially |(D)or | |
| | | | A/| | Owned at |Indir | |
| | | Amount | D | Price | End of Year |ect(I)| |
___________________________________________________________________________________________________________________________________|
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Common Stock | | | | | |6,000 |D | |
- -----------------------------------------------------------------------------------------------------------------------------------|
___________________________________________________________________________________________________________________________________|
<CAPTION>
___________________________________________________________________________________________________________________________________
Table II -- Derivative Securitites Acquired, Disposed of, or Beneficially Owned |
___________________________________________________________________________________________________________________________________|
1.Title of Derivative |2.Con |3. |4. |5.Number of De |6.Date Exer|7.Title and Amount |8.Price|9.Number |10.|11.Nature of|
Security |version |Transaction rivative Secu |cisable and| of Underlying |of Deri|of Deriva |Dir|Indirect |
|or Exer |Date |Code| rities Acqui |Expiration | Securities |vative |tive |ect|Beneficial |
|cise Pr | | | red(A) or Dis |Date(Month/| |Secu |Securities |(D)|Ownership |
|ice of | | | posed of(D) |Day/Year) | |rity |Benefi |or | |
|Deriva | | | |Date |Expir| | |ficially |Ind| |
|tive | | | | A/|Exer-|ation| Title and Number | |Owned at |ire| |
|Secu | | | | D |cisa-|Date | of Shares | |End of |ct | |
|rity | | | Amount | |ble | | | |Year |(I)| |
___________________________________________________________________________________________________________________________________|
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Phantom Stock Units |1-for-1 |7/31/|A |50 |A |01 |01 |Common Stock|50 |$24.66 | |D | |
| |97 | | | | | | | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
Phantom Stock Units |1-for-1 |9/23/|A |35 |A |01 |01 |Common Stock|35 |$23.19 | |D | |
| |97 | | | | | | | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
Phantom Stock Units |1-for-1 |9/24/|A |44 |A |01 |01 |Common Stock|44 |$23.19 | |D | |
| |97 | | | | | | | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
Phantom Stock Units |1-for-1 |10/31|A |63 |A |01 |01 |Common Stock|63 |$19.84 | |D | |
| |/97 | | | | | | | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
Phantom Stock Units |1-for-1 |10/28|A |53 |A |01 |01 |Common Stock|53 |$18.97 | |D | |
| |/97 | | | | | | | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
Phantom Stock Units |1-for-1 |10/31|A |51 |A |01 |01 |Common Stock|51 |$19.85 | |D | |
| |/97 | | | | | | | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
Phantom Stock Units |1-for-1 |12/2/|A |40 |A |01 |01 |Common Stock|40 |$20.31 | |D | |
| |97 | | | | | | | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
Phantom Stock Units |1-for-1 |12/3/|A |49 |A |01 |01 |Common Stock|49 |$20.47 | |D | |
| |97 | | | | | | | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
Phantom Stock Units |1-for-1 |12/12|A |46 |A |01 |01 |Common Stock|46 |$21.85 |18,439 |D | |
| |/97 | | | | | | | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
Options (right to buy) |$22.50 | | | | |02 |3/14/|Common Stock|3,000 | |3,000 |D | |
| | | | | | |07 | | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
___________________________________________________________________________________________________________________________________|
</TABLE>
Explanation of Responses:
01: Award of Phantom Stock Units under the 1993 Stock Plan for Non-Employee
Directors in transaction exempt
under Rule 16b-3. Exercise and expiration occur upon retirement from the Board
of Directors.
02: The option is exercisable as follows: 33.33% of the shares may be
acquired on 3/13/98, an additional 33.33%
on 3/13/99, and the remaining 33.33% on
3/13/00.
SIGNATURE OF REPORTING PERSON
By: s/ Hans L. Reich Attorney-in-fact
DATE
February 12, 1998
