WORCESTER, Mass., June 1 /PRNewswire-FirstCall/ -- Allmerica Financial
Corporation (NYSE: AFC) announced today that it currently expects to incur
approximately $13 million in pre-tax catastrophe losses resulting from severe
thunderstorms, hail and tornadoes, principally in Michigan from May 20th
through May 27th, 2004.
This brings total estimated pre-tax catastrophe losses to approximately
$16 million for the quarter to date, or $0.26 per share after taxes. The
anticipated charges will be reflected in the company's second quarter results.
"Citizens and Hanover activated their catastrophe management team and are
responding with prompt claims service to our customers," said Frederick H.
Eppinger, president and chief executive officer of Allmerica Financial
Corporation. "Catastrophe losses of this magnitude are not unusual to our
business, and total catastrophe losses remain in-line with our expectations
for both the quarter and year-to-date."
Allmerica Financial Corporation expects to announce its second quarter
financial results on Monday, July 26.
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 also
available at http://www.allmerica.com under "Investor Relations." These
uncertainties include the possibility of adverse catastrophe experience and
severe weather, adverse loss development and adverse trends in mortality and
morbidity, the difficulty in estimating catastrophe losses, changes in the
stock and financial markets, changes from assumed surrender activities and
assumed stock market returns, adverse selection in underwriting activities and
surrender patterns, investment impairments, heightened competition, adverse
state and federal legislation or regulation, financial ratings actions, and
various other factors, which include the effect of the Company's decision to
close its retail broker-dealer operations as well as the anticipated impact
and cost of the GMDB hedging program. The performance of the hedging program
is dependent on, among other things, the future performance and volatility of
the equity market, the extent to which the performance of the various hedging
instruments correlate with the investment performance of the underlying
annuity sub-accounts, the continued availability of equity index futures and
redemption and mortality patterns in the Company's annuity contracts.
Allmerica Financial Corporation is the holding company for a group of
insurance companies headquartered in Worcester, Massachusetts.
CONTACTS:
Investors:
Sujata Mutalik
(508) 855-3457
smutalik@allmerica.com
Media:
Michael F. Buckley
(508) 855-3099
mibuckley@allmerica.com
SOURCE Allmerica Financial Corporation
-0- 06/01/2004
/CONTACT: Investors: Sujata Mutalik, +1-508-855-3457,
smutalik@allmerica.com, or Media: Michael F. Buckley, +1-508-855-3099,
mibuckley@allmerica.com/
(AFC)
CO: Allmerica Financial Corporation
ST: Massachusetts
IN: INS FIN
SU: SVY
NJ-CP
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3351 06/01/200417:33 EDThttp://www.prnewswire.com