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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
Current Report
Pursuant to
Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): June 10, 1998
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CITIZENS CORPORATION
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(Exact name of Registrant as specified in its charter)
Delaware 1-11714 04-3178765
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(State or other (Commission File (I.R.S. Employer
jurisdic- Number) I.D. Number)
tion of
Incorporation)
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440 Lincoln Street, Worcester, Massachusetts 01653
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(Address of Principal Executive Offices)
(Zip Code)
(508) 855-1000
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(Registrant's Telephone Number including area code)
Page 1 of 5 pages
Exhibit Index on page 4
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Item 5. Other Events.
On June 10, 1998, Citizens Corporation announced that the second
quarter results will be impacted by an estimated $22.5 million in pre-
tax catastrophe losses as a result of electrical, rain and wind storms
that struck Michigan during the final days of May. The charge is
expected to result in a reduction of second quarter earnings per share
for Citizens Corporation of approximately fifty one cents. A copy of
the press release is attached as Exhibit 99 and is incorporated by
reference herein.
Item 7. Financial Statements and Exhibits.
Exhibit 99 Press Release dated June 10, 1998, announcing
Allmerica Financial Corporation, Citizens Corporation expects $25.3
million charge in second quarter for June catastrophe losses.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act
of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
CITIZENS
CORPORATION
By: /s/ Edward J. Parry III ,
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Edward J. Parry III
Vice President, Chief Financial
Officer,and Treasurer
Date: June 10, 1998
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Exhibit Index
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Exhibit 99 Press Release dated June 10, 1998, announcing Allmerica
Financial Corporation, Citizens Corporation expects $25.3 million
charge in second quarter for June catastrophe losses.
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EXHIBIT 99
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ALLMERICA FINANCIAL, CITIZENS CORPORATION
EXPECT SECOND QUARTER STORM CHARGES
WORCESTER, Mass., June 10, 1998 - Allmerica Financial Corporation
(NYSE: AFC) today announced that it expects to incur approximately
$25.3 million in pretax catastrophe losses, which includes $22.5
million expected storm losses from its subsidiary, citizens
Corporation (NYSE: CZC), as a result of electrical, rain and wind
storms that struck Michigan and the Northeast during the final days of
May. The anticipated charges will be reflected in the companies'
second quarter results.
The losses are expected to reduce the second quarter earnings per
share by approximately $0.28 cents at Allmerica and approximately
$0.51 cents at Citizens.
"Allmerica and Citizens have responded with prompt claim service to
our customers in Michigan and the Northeast," said Robert P. Restrepo,
Jr., president of Allmerica Property & Casualty Companies, Inc. and
head of risk management operations at the companies. "The Michigan
storms resulted in the biggest catastrophe losses in Citizens'
history. Agents and employees have been doing everything possible to
help policyholders recovery."
Restrepo said Allmerica and Citizens deployed to Michigan a
catastrophe management team of adjusters and claim support
representatives from their offices throughout the country to expedite
the claim process and help policyholders to make necessary
accommodations and repairs.
"In response to heavy claim volume during the days immediately
following the storms, the combination of our local claim support and
the emergency management team enabled us to respond to nearly 82.5
percent of policyholders within a single day of their call," said
James R. McAuliffe, president of Citizens Insurance Company of
America. "To date, we have closed about 40 percent of claims
reported, and we are continuing efforts to resolve the remaining open
claims as quickly as possible."
Allmerica Financial is a diversified group of insurance and financial
services companies headquartered in Worcester, Mass. Allmerica owns
approximately 80 percent of the stock in Citizens Corporation, a
holding company for Citizens Insurance Company of America, a leading
underwriter of personal and commercial property and casualty insurance
in the Midwest.
-30-
AF-19
6/98
CONTACTS: Investors: Media:
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Jean Peters Michael F. Buckley
(508) 855-3599 (508) 855-3099
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