ALLMERICA FINANCIAL CORPORATION
                   ANNOUNCES HURRICANE CHARLEY LOSS ESTIMATE

WORCESTER,  Mass., August 25, 2004 - Allmerica Financial Corporation (NYSE: AFC)
announced  estimated  pre-tax  catastrophe  losses of approximately  $30 million
related to Hurricane Charley.

This brings total estimated  pre-tax  catastrophe  losses to  approximately  $32
million for the quarter to date, or $0.52 per share after taxes. The anticipated
charges  will  be  reflected  in the  company's  third  quarter  results.  Total
estimated pre-tax catastrophe losses for the year to date are at $68 million.

The company estimates that approximately 70% of the hurricane losses were in its
commercial lines business, with the balance coming from personal lines.

"Hurricane Charley caused tremendous personal loss for thousands of individuals,
families and business  owners," said Frederick H. Eppinger,  president and chief
executive  officer of  Allmerica  Financial  Corporation.  "We are  committed to
serving our agents and  policyholders in this time of great need, and delivering
the value we promised through our insurance  products.  We responded  quickly to
the needs of our  policyholders.  Our claims  adjusters were on site immediately
after the storm.  In addition we  established a catastrophe  response  center in
Worcester. Our people are focused on doing everything they can to help customers
recover as much as quickly as possible."

Allmerica  Financial  Corporation  is scheduled  to announce  its third  quarter
financial results on Monday, October 25.

Certain statements in this release, including the Company's estimates of pre-tax
catastrophe  losses,  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 www.allmerica.com under "Investor Relations".

These uncertainties include the difficulty in estimating  catastrophe losses, as
well as 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 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.


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



CONTACTS:               Investors:                      Media:
                        Sujata Mutalik                  Michael F. Buckley
                        (508) 855-3457                  (508) 855-3099
                        smutalik@allmerica.com          mibuckley@allmerica.com



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