Home Home Investors  >  News  >  News details

News details

View all news

Allmerica Financial Corporation Announces Second Quarter Charge


WORCESTER, Mass., June 3 /PRNewswire-FirstCall/ -- Allmerica Financial Corporation (NYSE: AFC) announced today that it will record a pre-tax charge of approximately $23 million in the second quarter of 2003 resulting from a recent adverse arbitration decision related to an insurance pool in which its subsidiary, The Hanover Insurance Company ("Hanover"), was formerly a participant.

Allmerica said the arbitration decision relates to a single large property and casualty insurance business interruption claim loss caused by a fire which occurred in 1995. The charge represents Hanover's share of the claim, net of previously recorded reserves and payments. Hanover was a 4.864 percent participant in the pool with more than thirty other companies, but has not been a participant in the pool since 1995.

Robert P. Restrepo, Jr., President of Allmerica's Property and Casualty Companies, stated, "We are disappointed and surprised by the arbitration decision, as are many other pool participants. Nonetheless, we look forward to resolving this dispute and putting this outstanding claim behind us."

Certain statements in this release may be considered to be forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Use of the words "believes," "anticipates," "expects" and similar expressions is intended to identify forward-looking statements. The Company cautions investors that any such forward-looking statements are not guarantees of future performance, and actual results could differ materially. Investors are directed to consider the risks and uncertainties in our business that may affect future performance and that are discussed in readily available documents, including the Company's annual report and other documents filed by Allmerica with the Securities and Exchange Commission and which are available at http://www.allmerica.com/ under "Financial News." These uncertainties include the possibility of adverse catastrophe experience and severe weather, adverse loss development and adverse trends in mortality and morbidity, changes in the stock and financial markets, changes from assumed surrender activities and assumed stock market returns, adverse selection in surrender patterns, investment impairments, heightened competition, adverse state and federal legislation or regulation, financial ratings actions, and various other factors, including the effect of the Company's restructuring actions.

Allmerica Financial Corporation is the holding company for a diversified group of insurance and financial services companies headquartered in Worcester, Massachusetts.

SOURCE  Allmerica Financial Corporation
    -0-                             06/03/2003
    /CONTACT: Investors: Henry P. St. Cyr, +1-508-855-2959,
hstcyr@allmerica.com, or Media: Michael F. Buckley, +1-508-855-3099,
mibuckley@allmerica.com, both of Allmerica/
    /Web site:  http://www.allmerica.com/

CO:  Allmerica Financial Corporation; The Hanover Insurance Company
ST:  Massachusetts

-- NETU043 --
5009 06/03/200316:25 EDThttp://www.prnewswire.com

Multimedia Files:

View all news