UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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
ALLMERICA FINANCIAL CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 1-13754 04-3263626
(State or other (Commission File (I.R.S. Employer I.D.
jurisdic- Number) Number)
tion of Incorporation)
440 Lincoln Street, Worcester, Massachusetts 01653
(Address of Principal Executive Offices)
(Zip Code)
(508) 855-1000
(Registrant's Telephone Number including area code)
Page 1 of 5 pages
Exhibit Index on page 4
Item 5. Other Events.
On June 10, 1998, Allmerica Financial Corporation announced that the
second quarter results will be impacted by an estimated $25.3 million in pre-
tax catastrophe losses as a result of electrical, rain and wind storms that
struck Michigan and the Northeast during the final days of May. The charge is
expected to result in a reduction of second quarter earnings per share for
Allmerica Financial Corporation of approximately twenty eight 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, expects $25.3 million charge in
second quarter for June catastrophe losses.
page 2
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.
ALLMERICA FINANCIAL
CORPORATION
By: /s/ Edward J. Parry III,
Edward J. Parry III
Vice President, Chief Financial
Officer, and Treasurer
Date: June 10, 1998
page 3
Exhibit Index
Exhibit 99 Press Release dated June 10, 1998, announcing Allmerica
Financial Corporation expects $25.3 million charge in second
quarter for June catastrophe losses.
page 4
EXHIBIT 99
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.
AF-19
6/98
CONTACTS: Investors: Media:
Jean Peters Michael F. Buckley
(508) 855-3599 (508) 855-3099
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