WORCESTER, Mass., Jan. 21 /PRNewswire-FirstCall/ -- Allmerica Financial
Corporation (NYSE: AFC) today announced that the A.M. Best Company upgraded
the financial strength ratings of its property and casualty and life insurance
subsidiaries. The rating upgrades affirm the effectiveness of a successful
restructuring effort launched during the fourth quarter of 2002.
Earlier today, Best upgraded the financial strength ratings assigned to
Allmerica's property and casualty companies, Citizens Insurance Company of
America and The Hanover Insurance Company, to A- (Excellent) from B++ (Very
Good), and its life insurance companies, Allmerica Financial Life Insurance
and Annuity Company, and First Allmerica Life Insurance Company of America, to
B+ (Very Good) from B- (Fair).
In 2002, Best lowered the financial strength ratings of Allmerica's life
insurance companies and consequently reduced the ratings of its property and
casualty companies based on concerns that Citizens and Hanover might need to
make capital contributions to support the life companies.
Since then, Allmerica implemented a broad corporate restructuring plan,
dramatically enhancing the capital position of its operating companies,
including Citizens Insurance Company of America, The Hanover Insurance
Company, Allmerica Financial Life Insurance and Annuity Company and First
Allmerica Financial Life Insurance Company, effectively addressing rating
agency concerns.
"This rating upgrade reflects the confidence A.M. Best has in the overall
financial condition of our companies and the strong market position of our
property and casualty companies," said Frederick H. Eppinger, Jr., President
and Chief Executive Officer of Allmerica Financial Corporation.
"It also better positions us to further our goal to become a world class
company committed to partnering with winning agents to meet their customers'
insurance needs and to profitably grow their business over the long-term,"
Eppinger said. "We are committed to maintaining a financially solid company,
creating even deeper partnerships with our independent agent partners,
building the very best underwriting and product capabilities in our markets,
and providing responsive service. We believe our ratings affirm our ability
to achieve these goals."
Worcester, Massachusetts-based Allmerica Financial Corporation is the
holding company for a group of insurance and financial services companies, led
by Citizens Insurance Company of America and The Hanover Insurance Company.
Howell, Michigan-based Citizens, founded in 1915, and Worcester,
Massachusetts-based Hanover, founded in 1852, are leading regional property
and casualty insurance companies. Citizens and Hanover offer a wide range of
commercial and personal lines products through independent agents located
predominantly in the Northeast, South and Midwest.
CONTACT:
Investors: Media:
Sujata Mutalik Michael F. Buckley
(508) 855-3457 (508) 855-3099
smutalik@allmerica.commibuckley@allmerica.com
SOURCE Allmerica Financial Corporation
-0- 01/21/2004
/CONTACT: Investors, Sujata Mutalik, +1-508-855-3457,
smutalik@allmerica.com, or Media, Michael F. Buckley, +1-508-855-3099,
mibuckley@allmerica.com, both of Allmerica Financial Corporation /
(AFC)
CO: Allmerica Financial Corporation; A.M. Best Company
ST: Massachusetts
IN: FIN INS
SU:
AL-ES
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7012 01/21/200416:11 ESThttp://www.prnewswire.com