Exhibit 99.2

ALLMERICA FINANCIAL CORPORATION

STATISTICAL SUPPLEMENT

TABLE OF CONTENTS

Financial Highlights	1-2
Consolidated Financial Statements
Income Statements	3
Balance Sheets	4
Property and Casualty
Condensed Income Statements	5
Property and Casualty Consolidated Balance Sheets	6
Statutory Underwriting Results	7-11
Life Companies
Condensed Income Statements	12
Life Companies Consolidated Balance Sheets	13
Segment Income by Product Line	14-15
Segment Income Excluding Certain Non-Cash Items	16
Selected Financial Information-Variable Annuities	17
Future Policy Benefits and Account Balances	18
Investments
Net Investment Income	19
Net Realized Investment Gains (Losses)	20
Unrealized Losses	21
Credit Quality of Fixed Maturities	22
Historical Financial Highlights	23-24
Other Information	Inside back cover
Corporate Information
Market and Dividend Information
Industry Ratings

ALLMERICA FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS

	Quarter ended September 30								Nine Months ended September 30
(In millions, except per share data)	2004			2003			% Change		2004			2003			% Change
SEGMENT INCOME
Property and Casualty
Personal Lines	$	42.1		$	11.5		N/M		$	88.7		$	9.0		N/M
Commercial Lines		(7.1	)		18.1		N/M			32.0			92.7		(65.5	)
Other		1.7			2.6		(34.6	)		3.7			(18.0	)	N/M
Total Property and Casualty		36.7			32.2		14.0			124.4			83.7		48.6
Life Companies		(8.7	)		(8.1	)	7.4			(5.2	)		3.0		N/M
Interest expense on corporate debt		(10.0	)		(10.0	)	—			(29.9	)		(29.9	)	—
Total segment income		18.0			14.1		27.7			89.3			56.8		57.2
Federal income tax benefit (expense) on segment income		1.6			5.6		(71.4	)		(7.4	)		5.3		N/M
Total segment income after taxes	$	19.6		$	19.7		(0.5	)	$	81.9		$	62.1		31.9
RECONCILIATION FROM SEGMENT INCOME TO NET INCOME
Total segment income after taxes	$	19.6		$	19.7		(0.5	)	$	81.9		$	62.1		31.9
Federal income tax settlement		—			—		—			30.3			—		N/M
Net realized investment (losses) gains, net of taxes and amortization		(3.7	)		(8.2	)	(54.9	)		10.9			6.4		70.3
Gains on derivative instruments, net of taxes		0.1			0.3		(66.7	)		0.3			0.9		(66.7	)
Gains (losses) from retirement of funding agreements and trust instruments supported by funding obligations, net of taxes		1.9			0.4		N/M			(0.2	)		3.7		N/M
Restructuring costs, net of taxes		(0.2	)		(0.8	)	(75.0	)		(3.8	)		(3.8	)	—
Income from sale of universal life business, net of taxes		—			—		—			—			3.6		N/M
Income before effect of accounting change		17.7			11.4		55.3			119.4			72.9		63.8
Cumulative effect of change in accounting principle, net of taxes		—			—		—			(57.2	)		—		N/M
Net income	$	17.7		$	11.4		55.3		$	62.2		$	72.9		(14.7	)
PER SHARE DATA (DILUTED)
Total segment income	$	0.34		$	0.26		30.8		$	1.67		$	1.07		56.1
Federal income taxes on segment income		0.03			0.11		(72.7	)		(0.14	)		0.10		N/M
Total segment income after taxes		0.37			0.37		—			1.53			1.17		30.8
Federal income tax settlement		—			—		—			0.56			—		N/M
Net realized investment (losses) gains, net of taxes and amortization		(0.07	)		(0.16	)	(56.3	)		0.20			0.12		66.7
Gains on derivative instruments, net of taxes		—			0.01		N/M			—			0.02		N/M
Gains (losses) from retirement of funding agreements and trust instruments supported by funding obligations, net of taxes		0.03			0.01		N/M			—			0.07		N/M
Restructuring costs, net of taxes		—			(0.02	)	N/M			(0.07	)		(0.07	)	—
Income from sale of universal life business, net of taxes		—			—		—			—			0.06		N/M
Income before effect of accounting change		0.33			0.21		57.1			2.22			1.37		62.0
Cumulative effect of change in accounting principle, net of taxes		—			—		—			(1.06	)		—		N/M
Net income	$	0.33		$	0.21		57.1		$	1.16		$	1.37		(15.3	)

1

ALLMERICA FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS

(In millions, except per share data)	September 30 2004			December 31 2003			% Change
BALANCE SHEET
Shareholders’ equity
The Hanover Insurance Company (consolidated)	$	1,633.9		$	1,545.6		5.7
Allmerica Financial Life Insurance and Annuity Company (consolidated)		1,190.2			1,194.9		(0.4	)
AFC Holding Company and other		(529.9	)		(520.3	)	1.8
Total shareholders’ equity	$	2,294.2		$	2,220.2		3.3
Total adjusted statutory capital
The Hanover Insurance Company (consolidated)	$	1,076.2		$	1,001.6		7.4
Allmerica Financial Life Insurance and Annuity Company (consolidated)	$	610.7		$	553.4		10.4
First Allmerica Financial Life Insurance Company	$	198.7		$	176.6		12.5
The Hanover Insurance Company (consolidated) premium to surplus ratio		2.1:1			2.2:1		N/M
Allmerica Financial Life Insurance and Annuity Company (consolidated) estimated risk based capital ratio		465	%		365	%	100.0
Book value per share
The Hanover Insurance Company (consolidated)	$	30.69		$	29.16		5.2
Allmerica Financial Life Insurance and Annuity Company (consolidated)		22.36			22.55		(0.8	)
AFC Holding Company and other		(9.96	)		(9.82	)	1.4
Total book value per share	$	43.09		$	41.89		2.9
Book value per share, excluding accumulated other comprehensive income	$	42.69		$	41.59		2.6
Shares outstanding (1)		53.2			53.0
Stock price	$	26.88		$	30.77		(12.6	)
Price/book value per share		0.6 x			0.7 x		(0.1	) x
Debt/equity		22.2	%		22.5	%	(0.3	) pts
Debt/total capital		18.2	%		18.4	%	(0.2	) pts

(1) Shares outstanding do not include common stock equivalents.

2

ALLMERICA FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENTS

	Quarter ended September 30								Nine Months ended September 30
(In millions, except per share data)	2004			2003			% Change		2004			2003			% Change
REVENUES
Premiums	$	569.9		$	568.2		0.3		$	1,718.7		$	1,711.8		0.4
Universal life and investment product policy fees		67.2			75.8		(11.3	)		214.6			242.7		(11.6	)
Net investment income		104.2			110.5		(5.7	)		315.1			346.6		(9.1	)
Net realized investment (losses) gains		(4.4	)		(8.0	)	(45.0	)		18.3			18.4		(0.5	)
Other income		22.7			42.7		(46.8	)		73.3			143.4		(48.9	)
Total revenues		759.6			789.2		(3.8	)		2,340.0			2,462.9		(5.0	)
BENEFITS, LOSSES AND EXPENSES
Policy benefits, claims, losses and loss adjustment expenses		473.6			473.5		—			1,389.1			1,457.8		(4.7	)
Policy acquisition expenses		158.4			146.8		7.9			458.1			460.3		(0.5	)
(Gains) losses from retirement of funding agreements and trust instruments supported by funding obligations		(2.9	)		(0.7	)	N/M			0.3			(5.7	)	N/M
Income from sale of universal life business		—			—		—			—			(5.5	)	N/M
(Gains) losses on derivative instruments		(0.9	)		1.1		N/M			0.4			1.6		(75.0	)
Restructuring costs		0.3			1.2		(75.0	)		5.8			5.8		—
Other operating expenses		115.2			163.4		(29.5	)		386.6			477.5		(19.0	)
Total benefits, losses and expenses		743.7			785.3		(5.3	)		2,240.3			2,391.8		(6.3	)
Income before federal income taxes		15.9			3.9		N/M			99.7			71.1		40.2
Federal income tax benefit		(1.8	)		(7.5	)	(76.0	)		(19.7	)		(1.8	)	N/M
Income before cumulative effect of change in accounting principle		17.7			11.4		55.3			119.4			72.9		63.8
Cumulative effect of change in accounting principle		—			—		—			(57.2	)		—		N/M
Net income	$	17.7		$	11.4		55.3		$	62.2		$	72.9		(14.7	)
PER SHARE DATA (DILUTED)
Income before cumulative effect of change in accounting principle	$	0.33		$	0.21		57.1		$	2.22		$	1.37		62.0
Cumulative effect of change in accounting principle		—			—		—			(1.06	)		—		N/M
Net income (1)	$	0.33		$	0.21		57.1		$	1.16		$	1.37		(15.3	)
Weighted average shares outstanding		53.6			53.3					53.7			53.1

(1) Basic net income per share was $0.33 and $0.22 for the quarters ended September 30, 2004 and 2003, respectively and $1.17 and $1.38 for the nine months ended September 30, 2004 and 2003, respectively.

3

ALLMERICA FINANCIAL CORPORATION

CONSOLIDATED BALANCE SHEETS

(In millions, except per share data)	September 30, 2004			December 31, 2003			% Change
ASSETS
Investments:
Fixed maturities, at fair value (amortized cost of $7,511.2 and $7,346.3)	$	7,788.7		$	7,646.5		1.9
Equity securities, at fair value (cost of $13.7 and $9.1)		15.9			15.3		3.9
Mortgage loans		127.5			175.1		(27.2	)
Policy loans		258.2			268.0		(3.7	)
Other long-term investments		62.8			80.7		(22.2	)
Total investments		8,253.1			8,185.6		0.8
Cash and cash equivalents		217.6			380.5		(42.8	)
Accrued investment income		119.0			126.5		(5.9	)
Premiums, accounts and notes receivable, net		498.1			480.9		3.6
Reinsurance receivable on paid and unpaid losses, benefits and unearned premiums		2,033.7			2,111.2		(3.7	)
Deferred policy acquistion costs		926.1			1,115.5		(17.0	)
Deferred federal income taxes		410.3			381.0		7.7
Goodwill		128.2			128.2		—
Other assets		434.9			367.7		18.3
Separate account assets		10,086.0			11,835.4		(14.8	)
Total assets	$	23,107.0		$	25,112.5		(8.0	)
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Policy liabilities and accruals:
Future policy benefits	$	3,561.3		$	3,556.8		0.1
Outstanding claims, losses and loss adjustment expenses		3,196.4			3,124.9		2.3
Unearned premiums		1,083.0			1,032.5		4.9
Contractholder deposit funds and other policy liabilities		377.2			683.7		(44.8	)
Total policy liabilities and accruals		8,217.9			8,397.9		(2.1	)
Expenses and taxes payable		844.4			822.7		2.6
Reinsurance premiums payable		107.6			136.5		(21.2	)
Trust instruments supported by funding obligations		1,048.1			1,200.3		(12.7	)
Long-term debt		508.8			499.5		1.9
Separate account liabilities		10,086.0			11,835.4		(14.8	)
Total liabilities		20,812.8			22,892.3		(9.1	)
SHAREHOLDERS’ EQUITY
Preferred stock, par value $.01 per share; authorized 20.0 million shares; issued none		—			—		—
Common stock, par value $.01 per share; authorized 300.0 million shares; issued 60.4 million shares		0.6			0.6		—
Additional paid-in capital		1,782.0			1,775.6		(0.4	)
Accumulated other comprehensive income		21.8			16.1		35.4
Retained earnings		882.1			833.1		5.9
Treasury stock at cost (7.2 and 7.4 million shares)		(392.3	)		(405.2	)	(3.2	)
Total shareholders’ equity		2,294.2			2,220.2		3.3
Total liabilities and shareholders’ equity	$	23,107.0		$	25,112.5		(8.0	)

4

PROPERTY & CASUALTY

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

CONDENSED INCOME STATEMENTS

	Quarter ended September 30								Nine Months ended September 30
(In millions)	2004			2003			% Change		2004			2003			% Change
REVENUES
Net premiums written	$	581.6		$	588.7		(1.2	)	$	1,723.0		$	1,710.2		0.7
Change in unearned premiums, net of prepaid reinsurance premiums		(17.9	)		(27.5	)	(34.9	)		(36.8	)		(33.0	)	11.5
Net premiums earned		563.7			561.2		0.4			1,686.2			1,677.2		0.5
Net investment income		48.0			45.3		6.0			146.0			138.2		5.6
Other income		13.0			12.9		0.8			39.4			42.5		(7.3	)
Total segment revenue		624.7			619.4		0.9			1,871.6			1,857.9		0.7
LOSSES AND OPERATING EXPENSES
Policy benefits, claims, losses and loss adjustment expenses (1)		404.4			411.3		(1.7	)		1,188.6			1,251.7		(5.0	)
Policy acquisition expenses		118.5			113.7		4.2			353.1			338.6		4.3
Other operating expenses		65.1			62.2		4.7			205.5			183.9		11.7
Total losses and operating expenses		588.0			587.2		0.1			1,747.2			1,774.2		(1.5	)
Segment income before federal income taxes	$	36.7		$	32.2		14.0		$	124.4		$	83.7		48.6

(1) Policy benefits, claims, losses and loss adjustment expenses for the nine months ended September 30, 2003 include a $21.9 million charge resulting from an adverse arbitration decision in the second quarter of 2003 related to an insurance pool in which one of Allmerica Financial Corporation's subsidiaries, The Hanover Insurance Company, was formerly a participant.

5

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

CONSOLIDATED BALANCE SHEETS (1)

(In millions, except per share data)	September 30 2004		December 31 2003		% Change
ASSETS
Investments:
Fixed maturities, at fair value (amortized cost of $3,649.1 and $3,383.9)	$	3,760.4	$	3,506.2	7.3
Equity securities, at fair value (cost of $0.9 and $2.9)		2.1		5.1	(58.8	)
Mortgage loans		51.9		53.8	(3.5	)
Other long-term investments		0.6		0.7	(14.3	)
Total investments		3,815.0		3,565.8	7.0
Cash and cash equivalents		100.8		113.0	(10.8	)
Accrued investment income		52.5		49.4	6.3
Premiums, accounts, and notes receivable, net		497.4		477.2	4.2
Reinsurance receivable on paid and unpaid losses, benefits and unearned premiums		1,033.5		1,070.4	(3.4	)
Deferred policy acquistion costs		221.7		220.9	0.4
Deferred federal income tax asset		181.6		160.8	12.9
Goodwill		121.4		121.4	—
Other assets		187.3		198.7	(5.7	)
Total assets	$	6,211.2	$	5,977.6	3.9
LIABILITIES AND SHAREHOLDER’S EQUITY
LIABILITIES
Policy liabilities and accruals:
Outstanding claims, losses and loss adjustment expenses	$	3,083.3	$	3,018.9	2.1
Unearned premiums		1,079.6		1,029.0	4.9
Contractholder deposit funds and other policy liabilities		8.0		8.2	(2.4	)
Total policy liabilities and accruals		4,170.9		4,056.1	2.8
Expenses and taxes payable		309.8		251.5	23.2
Reinsurance premiums payable		96.6		124.4	(22.3	)
Total liabilities		4,577.3		4,432.0	3.3
SHAREHOLDER’S EQUITY
Common stock, par value $1.00 per share; authorized 20.9 million shares; issued 5.0 million shares		5.0		5.0	—
Additional paid-in capital		169.2		169.2	—
Accumulated other comprehensive income		52.1		60.0	(13.2	)
Retained earnings		1,407.6		1,311.4	7.3
Total shareholder’s equity		1,633.9		1,545.6	5.7
Total liabilities and shareholder’s equity	$	6,211.2	$	5,977.6	3.9

(1) Property and Casualty Companies includes The Hanover Insurance Company and Citizens Insurance Company of America, and their subsidiaries.

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ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

STATUTORY UNDERWRITING PROFIT (LOSS) RECONCILED TO SEGMENT INCOME (LOSS)

	Quarter ended September 30, 2004												Quarter ended September 30, 2003												% Change
(In millions)	Personal Lines			Commercial Lines			Other Property and Casualty			Total			Personal Lines			Commercial Lines			Other Property and Casualty			Total			Personal Lines		Commercial Lines		Other Property and Casualty		Total
Underwriting profit (loss), excluding prior year reserve development and catastrophes	$	29.2		$	10.5		$	(1.3	)	$	38.4		$	(0.9	)	$	11.5		$	(0.2	)	$	10.4		N/M		(8.7	)	N/M		N/M
Prior year reserve development (favorable) unfavorable		(7.0	)		5.5			—			(1.5	)		6.2			9.1			—			15.3		N/M		(39.6	)	—		N/M
Pre-tax catastrophe losses		24.0			37.7			—			61.7			12.5			4.4			—			16.9		92.0		N/M		—		N/M
Statutory underwriting profit (loss)		12.2			(32.7	)		(1.3	)		(21.8	)		(19.6	)		(2.0	)		(0.2	)		(21.8	)	N/M		N/M		N/M		—
Net investment income		23.7			23.8			0.5			48.0			22.3			22.6			0.4			45.3		6.3		5.3		25.0		6.0
Fee income		—			—			6.1			6.1			—			—			6.7			6.7		—		—		(9.0	)	(9.0	)
Other statutory to GAAP adjustments		6.2			1.8			(3.6	)		4.4			8.8			(2.5	)		(4.3	)		2.0		(29.5	)	N/M		(16.3	)	N/M
Segment income (loss) before federal income taxes	$	42.1		$	(7.1	)	$	1.7		$	36.7		$	11.5		$	18.1		$	2.6		$	32.2		N/M		N/M		(34.6	)	14.0

	Nine Months ended September 30, 2004												Nine Months ended September 30, 2003												% Change
	Personal Lines			Commercial Lines			Other Property and Casualty			Total			Personal Lines			Commercial Lines			Other Property and Casualty			Total			Personal Lines		Commercial Lines		Other Property and Casualty		Total
Underwriting profit (loss), excluding prior year reserve development and catastrophes	$	44.4		$	(2.2	)	$	(3.4	)	$	38.8		$	(25.0	)	$	16.6		$	(1.8	)	$	(10.2	)	N/M		N/M		88.9		N/M
Prior year reserve development (favorable) unfavorable		(16.0	)		(4.2	)		—			(20.2	)		18.9			(25.8	)		23.0			16.1		N/M		(83.7	)	N/M		N/M
Pre-tax catastrophe losses		50.5			47.4			—			97.9			31.0			18.3			—			49.3		62.9		N/M		—		98.6
Statutory underwriting profit (loss)		9.9			(45.4	)		(3.4	)		(38.9	)		(74.9	)		24.1			(24.8	)		(75.6	)	N/M		N/M		(86.3	)	(48.5	)
Net investment income		72.0			72.4			1.6			146.0			67.9			68.8			1.5			138.2		6.0		5.2		6.7		5.6
Fee income		—			—			18.8			18.8			—			—			19.8			19.8		—		—		(5.1	)	(5.1	)
Other statutory to GAAP adjustments		6.8			5.0			(13.3	)		(1.5	)		16.0			(0.2	)		(14.5	)		1.3		(57.5	)	N/M		(8.3	)	N/M
Segment income (loss) before federal income taxes	$	88.7		$	32.0		$	3.7		$	124.4		$	9.0		$	92.7		$	(18.0	)	$	83.7		N/M		(65.5	)	N/M		48.6

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ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

STATUTORY UNDERWRITING RESULTS

	Quarter ended September 30, 2004
	Personal Lines											Commercial Lines
(In millions)	Personal Automobile			Homeowners			Other Personal Lines		Total Personal Lines			Workers’ Compensation		Commercial Automobile			Commercial Multiple Peril			Other Commercial Lines		Total Commercial Lines			Other Property and Casualty			Total Property and Casualty
Net premiums written	$	263.7		$	119.9		$	11.0	$	394.6		$	30.4	$	47.1		$	83.2		$	26.3	$	187.0		$	—		$	581.6
Net premiums earned	$	267.1		$	103.0		$	10.4	$	380.5		$	31.6	$	45.7		$	82.7		$	23.2	$	183.2		$	—		$	563.7
Policy benefits, claims, losses excluding prior year reserve development and catastrophe losses		162.1			40.2			5.2		207.5			21.9		18.8			35.2			5.3		81.2			1.2			289.9
Prior year reserve development (favorable) unfavorable		(4.8	)		(2.3	)		0.1		(7.0	)		4.5		1.9			(4.8	)		3.9		5.5			—			(1.5	)
Pre-tax catastrophe losses		1.2			22.1			0.7		24.0			—		0.1			36.5			1.1		37.7			—			61.7
Loss adjustment expenses excluding prior year reserve development		24.0			9.8			0.3		34.1			4.5		3.6			11.8			1.6		21.5			—			55.6
Policy acquisition and other underwriting expenses										109.7													70.5			0.1			180.3
Policyholders’ dividends										—													(0.5	)		—			(0.5	)
Statutory underwriting profit (loss)									$	12.2												$	(32.7	)	$	(1.3	)	$	(21.8	)
	Quarter ended September 30, 2003
	Personal Lines											Commercial Lines
	Personal Automobile			Homeowners			Other Personal Lines		Total Personal Lines			Workers’ Compensation		Commercial Automobile			Commercial Multiple Peril			Other Commercial Lines		Total Commercial Lines			Other Property and Casualty			Total Property and Casualty
Net premiums written	$	285.7		$	116.7		$	12.2	$	414.6		$	29.0	$	44.0		$	79.5		$	22.3	$	174.8		$	—		$	589.4
Net premiums earned	$	277.8		$	95.8		$	11.1	$	384.7		$	31.1	$	45.1		$	79.5		$	21.3	$	177.0		$	—		$	561.7
Policy benefits, claims, losses excluding prior year reserve development and catastrophe losses		189.8			45.7			5.3		240.8			20.4		21.4			39.6			4.6		86.0			1.1			327.9
Prior year reserve development unfavorable (favorable)		4.2			2.0			—		6.2			6.3		(2.2	)		(3.1	)		8.1		9.1			—			15.3
Pre-tax catastrophe losses		0.7			11.6			0.2		12.5			—		—			4.0			0.4		4.4			—			16.9
Loss adjustment expenses excluding prior year reserve development		26.5			7.1			0.4		34.0			1.9		2.7			10.7			2.5		17.8			(0.9	)		50.9
Policy acquisition and other underwriting expenses										110.8													60.9			—			171.7
Policyholders’ dividends										—													0.8			—			0.8
Statutory underwriting (loss) profit									$	(19.6	)											$	(2.0	)	$	(0.2	)	$	(21.8	)

8

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

STATUTORY UNDERWRITING RESULTS

	Nine Months ended September 30, 2004
	Personal Lines												Commercial Lines
(In millions)	Personal Automobile			Homeowners			Other Personal Lines			Total Personal Lines			Workers’ Compensation		Commercial Automobile			Commercial Multiple Peril			Other Commercial Lines			Total Commercial Lines			Other Property and Casualty			Total Property and Casualty
Net premiums written	$	802.2		$	312.0		$	31.7		$	1,145.9		$	99.6	$	145.0		$	256.1		$	76.8		$	577.5		$	0.2		$	1,723.6
Net premiums earned	$	808.0		$	304.8		$	32.0		$	1,144.8		$	95.0	$	134.7		$	242.2		$	69.9		$	541.8		$	0.2		$	1,686.8
Policy benefits, claims, losses excluding prior year reserve development and catastrophe losses		525.0			137.4			17.7			680.1			66.1		67.5			111.1			19.8			264.5			3.0			947.6
Prior year reserve development (favorable) unfavorable		(10.4	)		(4.9	)		(0.7	)		(16.0	)		6.5		(4.5	)		(18.8	)		12.6			(4.2	)		—			(20.2	)
Pre-tax catastrophe losses		1.9			47.2			1.4			50.5			—		0.2			46.6			0.6			47.4			—			97.9
Loss adjustment expenses excluding prior year reserve development		74.8			23.7			1.6			100.1			14.2		10.7			34.5			4.4			63.8			0.4			164.3
Policy acquisition and other underwriting expenses											320.2														215.6			0.2			536.0
Policyholders' dividends											—														0.1			—			0.1
Statutory underwriting profit (loss)										$	9.9													$	(45.4	)	$	(3.4	)	$	(38.9	)
	Nine Months ended September 30, 2003
	Personal Lines												Commercial Lines
	Personal Automobile			Homeowners			Other Personal Lines			Total Personal Lines			Workers’ Compensation		Commercial Automobile			Commercial Multiple Peril			Other Commercial Lines			Total Commercial Lines			Other Property and Casualty			Total Property and Casualty
Net premiums written	$	841.8		$	295.1		$	33.0		$	1,169.9		$	98.1	$	133.0		$	241.8		$	67.5		$	540.4		$	0.3		$	1,710.6
Net premiums earned	$	823.1		$	278.4		$	32.9		$	1,134.4		$	99.8	$	137.9		$	235.3		$	69.7		$	542.7		$	0.3		$	1,677.4
Policy benefits, claims, losses excluding prior year reserve development and catastrophe losses		584.6			143.3			11.7			739.6			67.2		72.5			121.0			22.0			282.7			2.2			1,024.5
Prior year reserve development unfavorable (favorable)		15.8			3.1			—			18.9			4.7		(5.9	)		(24.3	)		(0.3	)		(25.8	)		23.0			16.1
Pre-tax catastrophe losses		1.9			28.5			0.6			31.0			—		0.3			15.9			2.1			18.3			—			49.3
Loss adjustment expenses excluding prior year reserve development		80.3			22.5			0.9			103.7			10.2		8.0			32.3			5.7			56.2			(0.3	)		159.6
Policy acquisition and other underwriting expenses											316.1														184.8			0.2			501.1
Policyholders’ dividends											—														2.4			—			2.4
Statutory underwriting (loss) profit										$	(74.9	)												$	24.1		$	(24.8	)	$	(75.6	)

9

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

STATUTORY UNDERWRITING RATIOS

	Quarter ended September 30, 2004
	Personal Lines								Commercial Lines
(In millions)	Personal Automobile		Homeowners		Other Personal Lines		Total Personal Lines		Workers’ Compensation		Commercial Automobile		Commercial Multiple Peril		Other Commercial Lines		Total Commercial Lines		Other Property and Casualty	Total Property and Casualty
Losses, excluding catastrophe losses	59.0	%	37.7	%	51.0	%	53.0	%	85.8	%	46.2	%	38.3	%	30.2	%	47.4	%	—	51.4	%
Catastrophe losses	0.4	%	21.5	%	6.7	%	6.3	%	—		0.2	%	44.1	%	4.7	%	20.6	%	—	10.9	%
Loss adjustment expenses	8.9	%	8.6	%	2.9	%	8.7	%	12.0	%	7.0	%	12.7	%	16.4	%	11.6	%	—	9.7	%
Policy acquisition and other underwriting expenses							27.8	%									37.7	%	—	31.0	%
Policyholders’ dividends							—										(0.3	)%	—	(0.1	)%
Combined							95.8	%									117.0	%	—	102.9	%
Policies in force	(10.0	)%	(6.5	)%	(6.4	)%	(8.2	)%	(0.5	)%	(1.8	)%	(1.3	)%	(2.3	)%	(1.7	)%	—	(7.5	)%
Retention (1)	78.7	%	81.3	%	N/M		80.1	%	72.5	%	77.5	%	80.7	%	N/M		77.6	%
	Quarter ended September 30, 2003
	Personal Lines								Commercial Lines
	Personal Automobile		Homeowners		Other Personal Lines		Total Personal Lines		Workers’ Compensation		Commercial Automobile		Commercial Multiple Peril		Other Commercial Lines		Total Commercial Lines		Other Property and Casualty	Total Property and Casualty
Losses, excluding catastrophe losses	70.1	%	51.0	%	47.7	%	64.7	%	83.6	%	42.8	%	51.2	%	67.3	%	56.7	%	—	62.4	%
Catastrophe losses	0.3	%	12.1	%	1.8	%	3.2	%	—		—		5.0	%	1.9	%	2.5	%	—	3.0	%
Loss adjustment expenses	9.3	%	6.2	%	3.6	%	8.3	%	8.4	%	5.8	%	8.2	%	4.2	%	7.2	%	—	7.8	%
Policy acquisition and other underwriting expenses							26.7	%									34.8	%	—	29.1	%
Policyholders’ dividends							—										0.4	%	—	0.1	%
Combined							102.9	%									101.6	%	—	102.4	%
Policies in force	(5.2	)%	(1.9	)%	(5.5	)%	(3.8	)%	(5.6	)%	(10.6	)%	(4.4	)%	(20.6	)%	(11.7	)%	—	(4.8	)%
Retention (1)	80.2	%	82.5	%	N/M		81.4	%	64.8	%	74.2	%	74.1	%	N/M		72.2	%

(1) The retention rate for personal lines is a twelve month rolling average calculation based on policies in force; the retention rate for commercial lines is based on direct voluntary written premiums, based on processed policies in the current period versus the same period in the prior year. Additionally, the retention rates have been adjusted to exclude the effect of our strategic termination of specialty commercial programs which resulted from an extensive review during the fourth quarter of 2001.

10

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

STATUTORY UNDERWRITING RATIOS

	Nine Months ended September 30, 2004
	Personal Lines								Commercial Lines
(In millions)	Personal Automobile		Homeowners		Other Personal Lines		Total Personal Lines		Workers’ Compensation		Commercial Automobile		Commercial Multiple Peril		Other Commercial Lines		Total Commercial Lines		Other Property and Casualty	Total Property and Casualty
Losses, excluding catastrophe losses	63.7	%	44.2	%	53.1	%	58.2	%	79.2	%	48.3	%	40.6	%	45.6	%	49.9	%	—	55.7	%
Catastrophe losses	0.2	%	15.5	%	4.4	%	4.4	%	N/M		0.1	%	19.2	%	0.9	%	8.7	%	—	5.8	%
Loss adjustment expenses	9.3	%	7.0	%	5.0	%	8.5	%	12.2	%	6.4	%	11.8	%	7.0	%	9.9	%	—	9.0	%
Policy acquisition and other underwriting expenses							27.9	%									37.3	%	—	31.1	%
Policyholders’ dividends							—										—		—	—
Combined							99.0	%									105.8	%	—	101.6	%
Policies in force	(10.0	)%	(6.5	)%	(6.4	)%	(8.2	)%	(0.5	)%	(1.8	)%	(1.3	)%	(2.3	)%	(1.7	)%	—	(7.5	)%
Retention (1)	78.7	%	81.3	%	N/M		80.1	%	75.0	%	78.3	%	78.8	%	N/M		77.9	%
	Nine Months ended September 30, 2003
	Personal Lines								Commercial Lines
	Personal Automobile		Homeowners		Other Personal Lines		Total Personal Lines		Workers’ Compensation		Commercial Automobile		Commercial Multiple Peril		Other Commercial Lines		Total Commercial Lines		Other Property and Casualty	Total Property and Casualty
Losses, excluding catastrophe losses	73.1	%	53.9	%	35.6	%	67.3	%	74.8	%	49.6	%	46.8	%	33.9	%	51.0	%	—	63.5	%
Catastrophe losses	0.2	%	10.2	%	1.8	%	2.7	%	N/M		0.2	%	6.8	%	3.0	%	3.4	%	—	2.9	%
Loss adjustment expenses	9.6	%	6.8	%	2.7	%	8.7	%	7.4	%	4.5	%	8.0	%	5.5	%	6.7	%	—	8.1	%
Policy acquisition and other underwriting expenses							27.0	%									34.2	%	—	29.3	%
Policyholders’ dividends							N/M										0.4	%	—	0.1	%
Combined							105.7	%									95.7	%	—	103.9	%
Policies in force	(5.2	)%	(1.9	)%	(5.5	)%	(3.8	)%	(5.6	)%	(10.6	)%	(4.4	)%	(20.6	)%	(11.7	)%	—	(4.8	)%
Retention (1)	80.2	%	82.5	%	N/M		81.4	%	67.7	%	72.7	%	75.0	%	N/M		72.9	%

(1) The retention rate for personal lines is a twelve month rolling average calculation based on policies in force; the retention rate for commercial lines is based on direct voluntary written premiums, based on processed policies in the current period versus the same period in the prior year. Additionally, the retention rates have been adjusted to exclude the effect of our strategic termination of specialty commercial programs which resulted from an extensive review during the fourth quarter of 2001.

11

LIFE COMPANIES

ALLMERICA FINANCIAL CORPORATION

LIFE COMPANIES

CONDENSED INCOME STATEMENTS

	Quarter ended September 30								Nine Months ended September 30
(In millions)	2004			2003			% Change		2004			2003		% Change
REVENUES
Premiums	$	6.2		$	7.0		(11.4	)	$	32.5		$	34.6	(6.1	)
Fees:
Fees from surrenders		11.1			13.3		(16.5	)		37.2			54.3	(31.5	)
Other proprietary product fees		56.1			62.5		(10.2	)		177.4			188.4	(5.8	)
Net investment income		56.1			65.4		(14.2	)		168.9			209.1	(19.2	)
Brokerage and investment management income (1)		5.1			24.0		(78.8	)		17.7			86.6	(79.6	)
Other income		7.8			7.1		9.9			23.1			19.8	16.7
Total segment revenue		142.4			179.3		(20.6	)		456.8			592.8	(22.9	)
POLICY BENEFITS, CLAIMS AND OPERATING EXPENSES
Policy benefits, claims and losses		69.0			62.1		11.1			200.2			201.7	(0.7	)
Policy acquisition expenses		39.6			31.0		27.7			103.0			115.2	(10.6	)
Brokerage and investment management variable expenses (1)		2.3			14.4		(84.0	)		8.9			56.2	(84.2	)
Other operating expenses		40.2			79.9		(49.7	)		149.9			216.7	(30.8	)
Total policy benefits, claims and operating expenses		151.1			187.4		(19.4	)		462.0			589.8	(21.7	)
Segment (loss) income before federal income taxes	$	(8.7	)	$	(8.1	)	7.4		$	(5.2	)	$	3.0	N/M

(1) Brokerage and investment management income for 2004 primarily reflect fees earned from the management of assets for proprietary products. Brokerage and investment management income for 2003 primarily reflect fees earned from the distribution of non-proprietary insurance products. Variable expenses for 2004 consist primarily of subadvisory fees while these expenses primarily reflect commissions in 2003. The Company no longer sells non-proprietary products through its brokerage sales force.

12

ALLMERICA FINANCIAL CORPORATION

LIFE COMPANIES

CONSOLIDATED BALANCE SHEETS (1)

(In millions, except per share data)	September 30 2004		December 31 2003			% Change
ASSETS
Investments:
Fixed maturities, at fair value (amortized cost of $3,813.2 and $3,912.6)	$	3,973.8	$	4,080.1		(2.6	)
Equity securities, at fair value (cost of $3.5 and $6.2)		4.6		10.3		(55.3	)
Mortgage loans		76.1		122.3		(37.8	)
Policy loans		258.2		268.0		(3.7	)
Other long-term investments		62.2		80.0		(22.3	)
Total investments		4,374.9		4,560.7		(4.1	)
Cash and cash equivalents		97.7		242.8		(59.8	)
Accrued investment income		66.0		76.2		(13.4	)
Premiums, accounts, and notes receivable, net		0.7		3.8		(81.6	)
Reinsurance receivable on paid and unpaid losses, benefits and unearned premiums		1,000.2		1,042.9		(4.1	)
Deferred policy acquisition costs (2)		704.4		894.6		(21.3	)
Deferred federal income tax asset		238.3		223.8		6.5
Goodwill		6.8		6.8		—
Other assets (2)		229.6		150.6		52.5
Separate account assets		10,086.0		11,835.4		(14.8	)
Total assets	$	16,804.6	$	19,037.6		(11.7	)
LIABILITIES AND SHAREHOLDER’S EQUITY
LIABILITIES
Policy liabilities and accruals:
Future policy benefits	$	3,561.3	$	3,556.8		0.1
Outstanding claims, losses and loss adjustment expenses		113.1		105.2		7.5
Unearned premiums		3.4		3.5		(2.86	)
Contract holder deposit funds and other policy liabilities		369.2		675.5		(45.3	)
Total policy liabilities and accruals		4,047.0		4,341.0		(6.8	)
Expenses and taxes payable		422.3		453.9		(7.0	)
Reinsurance premiums payable		11.0		12.1		(9.1	)
Trust instruments supported by funding obligations		1,048.1		1,200.3		(12.7	)
Separate account liabilities		10,086.0		11,835.4		(14.8	)
Total liabilities		15,614.4		17,842.7		(12.5	)
SHAREHOLDER’S EQUITY
Common stock, par value $1,000 per share; authorized 10,000 shares; issued 2,526 shares		2.5		2.5		—
Additional paid-in capital		1,075.0		1,075.0		—
Accumulated other comprehensive income (loss)		9.9		(23.5	)	N/M
Retained earnings		102.8		140.9		(27.0	)
Total shareholder’s equity		1,190.2		1,194.9		(0.4	)
Total liabilities and shareholder’s equity	$	16,804.6	$	19,037.6		(11.7	)

(1) The Life Companies include Allmerica Financial Life Insurance and Annuity Company and First Allmerica Financial Life Insurance Company, and their subsidiaries. First Allmerica Financial Life Insurance Company includes assets related to our discontinued operations (Group Life & Health).

(2) Other assets at September 30, 2004 include a reclassification of $82.5 million from deferred policy acquisition costs as a result of the implementation of SOP 03-1 at January 1, 2004.

13

ALLMERICA FINANCIAL CORPORATION

LIFE COMPANIES

SEGMENT INCOME BY PRODUCT LINE

	Quarter ended September 30, 2004										Quarter ended September 30, 2003
(In millions)	Variable Annuities			Variable Universal Life		Other (3)		Total			Variable Annuities		Variable Universal Life		Other (3)		Total
REVENUES
Premiums	$	—		$	—	$	6.2	$	6.2		$	—	$	—	$	7.0	$	7.0
Fees:
Fees from surrenders		8.6			2.5		—		11.1			10.4		2.9		—		13.3
Other proprietary product fees		35.6			20.4		0.1		56.1			39.4		22.7		0.4		62.5
Net investment income		17.9			4.4		33.8		56.1			14.1		3.8		47.5		65.4
Brokerage and investment management income (1)		4.0			0.9		0.2		5.1			3.2		1.0		19.8		24.0
Other income		2.9			0.7		4.2		7.8			2.5		0.4		4.2		7.1
Total segment revenue		69.0			28.9		44.5		142.4			69.6		30.8		78.9		179.3
POLICY BENEFITS, CLAIMS AND OPERATING EXPENSES
Policy benefits, claims and losses		36.5			12.6		19.9		69.0			24.7		11.6		25.8		62.1
Policy acquisition expenses		33.4			5.7		0.5		39.6			27.0		3.1		0.9		31.0
Variable operating expenses		7.1			1.0		12.0		20.1			6.9		1.7		26.4		35.0
Gain on hedge derivatives (2)		(5.9	)		—		—		(5.9	)		—		—		—		—
		71.1			19.3		32.4		122.8			58.6		16.4		53.1		128.1
Segment (loss) income before other operating expenses	$	(2.1	)	$	9.6	$	12.1		19.6		$	11.0	$	14.4	$	25.8		51.2
Other operating expenses									28.3									59.3
Segment loss before federal income taxes								$	(8.7	)							$	(8.1	)

(1) Brokerage and investment management income for 2004 primarily reflect fees earned from the management of assets for proprietary products. Brokerage and investment management income for 2003 primarily reflect fees earned from the distribution of non-proprietary insurance products. Variable expenses for 2004 consist primarily of subadvisory fees while these expenses primarily reflect commissions in 2003. The Company no longer sells non-proprietary products through its brokerage sales force.

(2) Gain on hedge derivatives relates to the economic hedging program implemented in the fourth quarter of 2003 involving exchange traded futures contracts used to hedge against increased GMDB claims that could arise from declines in the equity market below levels at December 3, 2003.

(3) Other includes results from guaranteed investment contracts, closed block, universal life, traditional life, yearly renewable term life, individual health, other insurance and group retirement products, and our broker/dealer, VeraVest Investments, Inc.

14

ALLMERICA FINANCIAL CORPORATION

LIFE COMPANIES

SEGMENT INCOME BY PRODUCT LINE

	Nine Months ended September 30, 2004									Nine Months ended September 30, 2003
(In millions)	Variable Annuities		Variable Universal Life		Other (3)		Total			Variable Annuities		Variable Universal Life		Other (3)		Total
REVENUES
Premiums	$	—	$	—	$	32.5	$	32.5		$	—	$	—	$	34.6	$	34.6
Fees:
Fees from surrenders		28.4		8.8		—		37.2			43.9		10.4		—		54.3
Other proprietary product fees		113.8		62.7		0.9		177.4			116.7		69.7		2.0		188.4
Net investment income		51.9		13.4		103.6		168.9			45.9		11.3		151.9		209.1
Brokerage and investment management income (1)		13.0		2.8		1.9		17.7			13.4		3.0		70.2		86.6
Other income		8.9		2.0		12.2		23.1			6.8		3.5		9.5		19.8
Total segment revenue		216.0		89.7		151.1		456.8			226.7		97.9		268.2		592.8
POLICY BENEFITS, CLAIMS AND OPERATING EXPENSES
Policy benefits, claims and losses		94.4		34.4		71.4		200.2			77.9		30.6		93.2		201.7
Policy acquisition expenses		82.4		19.2		1.4		103.0			99.0		14.8		1.4		115.2
Variable operating expenses		23.0		4.0		39.3		66.3			23.4		4.4		89.0		116.8
Loss on hedge derivatives (2)		5.4		—		—		5.4			—		—		—		—
		205.2		57.6		112.1		374.9			200.3		49.8		183.6		433.7
Segment income before other
operating expenses	$	10.8	$	32.1	$	39.0		81.9		$	26.4	$	48.1	$	84.6		159.1
Other operating expenses								87.1									156.1
Segment (loss) income before federal income taxes							$	(5.2	)							$	3.0

(1) Brokerage and investment management income for 2004 primarily reflect fees earned from the management of assets for proprietary products. Brokerage and investment management income for 2003 primarily reflect fees earned from the distribution of non-proprietary insurance products. Variable expenses for 2004 consist primarily of subadvisory fees while these expenses primarily reflect commissions in 2003. The Company no longer sells non-proprietary products through its brokerage sales force.

(2) Loss on hedge derivatives relates to the economic hedging program implemented in the fourth quarter of 2003 involving exchange traded futures contracts used to hedge against increased GMDB claims that could arise from declines in the equity market below levels at December 3, 2003.

(3) Other includes results from guaranteed investment contracts, closed block, universal life, traditional life, yearly renewable term life, individual health, other insurance and group retirement products, and our broker/dealer, VeraVest Investments, Inc.

15

ALLMERICA FINANCIAL CORPORATION

LIFE COMPANIES

SEGMENT INCOME EXCLUDING CERTAIN NON-CASH ITEMS

	Quarter ended
(In millions)	September 30, 2004			June 30, 2004			September 30, 2003
Segment loss before federal income taxes	$	(8.7	)	$	(6.3	)	$	(8.1	)
Deferred acquisition cost operating amortization and amortization of sales inducements, net		44.6			33.6			28.1
Property, plant and equipment, net		0.6			0.9			0.2
Statement of Position 98-1 amortization, net		1.1			1.1			1.1
VeraVest asset impairment		—			—			11.1
Change in guaranteed minimum death benefit reserves		0.3			(2.4	)		(9.4	)
Total segment income excluding certain non-cash items	$	37.9		$	26.9		$	23.0
				Nine Months ended
				September 30, 2004			September 30, 2003
Segment (loss) income before federal income taxes				$	(5.2	)	$	3.0
Deferred acquisition cost operating amortization and amortization of sales inducements, net					116.2			107.3
Property, plant and equipment, net					2.4			1.6
Statement of Position 98-1 amortization, net					3.4			3.0
VeraVest asset impairment					—			11.1
Change in guaranteed minimum death benefit reserves					(11.7	)		(49.2	)
Total segment income excluding certain non-cash items				$	105.1		$	76.8

16

ALLMERICA FINANCIAL CORPORATION

LIFE COMPANIES

SELECTED FINANCIAL INFORMATION - VARIABLE ANNUITIES

	Quarter ended September 30								Nine Months ended September 30
(In millions)	2004			2003			% Change		2004			2003			% Change
SEPARATE ACCOUNT INDIVIDUAL ANNUITIES
Balance at beginning of period	$	9,579.6		$	10,196.6		(6.1	)	$	10,545.8		$	10,611.9			(0.6	)
Direct premiums and deposits		8.7			27.9		(68.8	)		43.0			82.9			(48.1	)
Redemptions		(425.0	)		(425.7	)	(0.2	)		(1,468.0	)		(1,695.4	)		(13.4	)
Market (depreciation) appreciation		(145.2	)		258.3		N/M			50.8			1,042.1			(95.1	)
Transfers and other (1)		(44.7	)		(22.2	)	N/M			(198.2	)		(6.6	)		N/M
Balance at end of period	$	8,973.4		$	10,034.9		(10.6	)	$	8,973.4		$	10,034.9			(10.6	)
									Quarter ended
									September 30, 2004			June 30, 2004			September 30, 2003
VARIABLE INDIVIDUAL ANNUITIES (2)
Redemptions									$	491.7		$	555.9		$	493.6
Redemption rates (3)										19	%		20	%		17	%
									September 30 2004			December 31 2003			% Change
VARIABLE INDIVIDUAL ANNUITIES
Account values									$	10,172.6		$	11,742.6			(13.4	)
Net amount at risk									$	2,489.8		$	2,551.2			(2.4	)
Deferred acquisition cost asset and capitalized sales inducements									$	564.3		$	660.2			(14.5	)
Value of surrender charges (inforce block)									$	363.1		$	458.3			(20.8	)

(1) Reserves for individual annuities at September 30, 2004 include a reclassification of $107.1 million to general account liabilities as a result of the implementation of SOP 03-1 on January 1, 2004.

(2) Includes both full policy and partial policy surrenders, withdrawals and death benefits (to the extent equal to account value).

(3) Redemption rates are annualized based on the average account value in the quarter.

17

ALLMERICA FINANCIAL CORPORATION

LIFE COMPANIES

FUTURE POLICY BENEFITS AND ACCOUNT BALANCES

(In millions)	September 30 2004		December 31 2003		% Change
GENERAL ACCOUNT RESERVES
Insurance
Traditional life	$	823.6	$	845.8	(2.6	)
Universal life (1)		595.9		633.0	(5.9	)
Variable universal life (2)		245.2		249.8	(1.8	)
Individual health (3)		262.5		260.3	0.8
Total insurance		1,927.2		1,988.9	(3.1	)
Annuities
Individual annuities (4)		1,449.7		1,363.1	6.4
Group annuities		430.3		572.5	(24.8	)
Total annuities		1,880.0		1,935.6	(2.9	)
Guaranteed investment contracts
Contractholder deposit funds and other policy liabilities		29.4		207.5	(85.8	)
Total general account reserves	$	3,836.6	$	4,132.0	(7.1	)
Trust instruments supported by funding obligations	$	1,048.1	$	1,200.3	(12.7	)
SEPARATE ACCOUNT LIABILITIES
Variable universal life	$	966.0	$	1,053.2	(8.3	)
Variable individual annuities (4)		8,973.4		10,545.8	(14.9	)
Total individual		9,939.4		11,599.0	(14.3	)
Group variable universal life		51.4		127.0	(59.5	)
Group annuities		95.2		109.4	(13.0	)
Total group		146.6		236.4	(38.0	)
Total separate account liabilities	$	10,086.0	$	11,835.4	(14.8	)

(1) Universal life reserves include reinsured balances of $594.1 and $631.7 million at September 30, 2004 and December 31, 2003, respectively.

(2) Variable universal life reserves include group variable universal life reserves of $11.1 and $13.2 million September 30, 2004 and December 31, 2003, respectively.

(3) Individual health reserves include reinsured balances of $261.8 and $258.9 million at September 30, 2004 and December 31, 2003, respectively.

(4) Reserves for individual annuities at September 30, 2004 include a reclassification of $107.1 million from separate account liabilities as a result of the implementation of SOP 03-1 on January 1, 2004.

18

INVESTMENTS

ALLMERICA FINANCIAL CORPORATION

NET INVESTMENT INCOME

	Nine Months ended September 30, 2004
(In millions, except yields)	Property and Casualty (1)			Yield		Life Companies			Yield		Total			Yield
Fixed maturities	$	148.5		5.70	%	$	164.3		5.90	%	$	312.8		5.80	%
Equity securities		1.5		N/M			—		—			1.5		N/M
Mortgages		3.2		8.18	%		6.1		7.86	%		9.3		7.97	%
All other		(3.9	)	—			3.6		—			(0.3	)	—
Investment expenses		(3.1	)	—			(5.1	)	—			(8.2	)	—
Total	$	146.2		5.42	%	$	168.9		5.35	%	$	315.1		5.38	%
	Nine Months ended September 30, 2003
	Property and Casualty (1)			Yield		Life Companies			Yield		Total			Yield
Fixed maturities	$	141.9		6.07	%	$	179.2		6.06	%	$	321.1		6.06	%
Equity securities		0.5		5.22	%		0.5		3.23	%		1.0		4.03	%
Mortgages		5.1		8.60	%		9.6		8.05	%		14.7		8.23	%
All other		(7.1	)	—			23.8		—			16.7		—
Investment expenses		(2.9	)	—			(4.0	)	—			(6.9	)	—
Total	$	137.5		5.57	%	$	209.1		5.99	%	$	346.6		5.82	%

(1) Includes purchase accounting adjustments of $2.4 million and $2.5 million for the nine months ended September 30, 2004 and 2003, respectively. Also includes corporate eliminations of $0.4 million and $0.7 million for the nine months ended September 30, 2004 and 2003, respectively.

19

ALLMERICA FINANCIAL CORPORATION

COMPONENTS OF NET REALIZED INVESTMENT GAINS (LOSSES)

	Quarter ended September 30
	2004									2003
	Net Realized Gains (Losses)									Net Realized Gains (Losses)
(In millions)	Property and Casualty			Life Companies			Total			Property and Casualty			Life Companies			Total
Net gains on securities transactions	$	3.5		$	4.1		$	7.6		$	3.2		$	2.0		$	5.2
Other than temporary impairments		(1.2	)		(2.5	)		(3.7	)		(8.1	)		(5.1	)		(13.2	)
Other		(0.7	)		(7.6	)		(8.3	)		(0.3	)		0.3			—
Net realized investment gains (losses)	$	1.6		$	(6.0	)	$	(4.4	)	$	(5.2	)	$	(2.8	)	$	(8.0	)
	Nine Months ended September 30
	2004									2003
	Net Realized Gains (Losses)									Net Realized Gains (Losses)
	Property and Casualty			Life Companies			Total			Property and Casualty			Life Companies			Total
Net gains on securities transactions	$	19.3		$	14.1		$	33.4		$	18.0		$	59.0		$	77.0
Other than temporary impairments		(1.9	)		(4.2	)		(6.1	)		(15.8	)		(40.4	)		(56.2	)
Other		(0.7	)		(8.3	)		(9.0	)		0.6			(3.0	)		(2.4	)
Net realized investment gains	$	16.7		$	1.6		$	18.3		$	2.8		$	15.6		$	18.4

20

ALLMERICA FINANCIAL CORPORATION

AGING OF GROSS UNREALIZED LOSSES ON SECURITIES AVAILABLE FOR SALE

(In millions)	September 30, 2004
	Gross Unrealized Losses						Fair Value
	Property and Casualty		Life Companies		Total		Property and Casualty		Life Companies		Total
INVESTMENT GRADE FIXED MATURITIES:
0 - 6 months	$	3.0	$	2.4	$	5.4	$	314.0	$	310.7	$	624.7
7 - 12 months		2.3		2.4		4.7		83.8		77.2		161.0
Greater than 12 months		9.0		6.6		15.6		214.9		167.0		381.9
Total investment grade fixed maturities		14.3		11.4		25.7		612.7		554.9		1,167.6
BELOW INVESTMENT GRADE FIXED MATURITIES:
0 - 6 months		2.8		1.3		4.1		38.4		15.4		53.8
7 - 12 months		1.5		0.3		1.8		11.9		2.0		13.9
Greater than 12 months		—		3.8		3.8		—		3.5		3.5
Total below investment grade fixed maturities		4.3		5.4		9.7		50.3		20.9		71.2
Equity securities		0.1		0.1		0.2		0.2		1.2		1.4
Total fixed maturities and equity securities	$	18.7	$	16.9	$	35.6	$	663.2	$	577.0	$	1,240.2
	December 31, 2003
	Gross Unrealized Losses						Fair Value
	Property and Casualty		Life Companies		Total		Property and Casualty		Life Companies		Total
INVESTMENT GRADE FIXED MATURITIES:
0 - 6 months	$	11.0	$	6.8	$	17.8	$	565.2	$	458.3	$	1,023.5
7 - 12 months		4.9		10.8		15.7		92.7		239.0		331.7
Greater than 12 months		1.2		3.7		4.9		21.8		74.5		96.3
Total investment grade fixed maturities		17.1		21.3		38.4		679.7		771.8		1,451.5
BELOW INVESTMENT GRADE FIXED MATURITIES:
0 - 6 months		0.5		0.7		1.2		18.1		20.4		38.5
7 - 12 months		—		2.5		2.5		—		8.2		8.2
Greater than 12 months		0.5		5.2		5.7		8.1		29.0		37.1
Total below investment grade fixed maturities		1.0		8.4		9.4		26.2		57.6		83.8
Equity securities		—		0.1		0.1		0.5		1.3		1.8
Total fixed maturities and equity securities	$	18.1	$	29.8	$	47.9	$	706.4	$	830.7	$	1,537.1

21

ALLMERICA FINANCIAL CORPORATION

CREDIT QUALITY OF FIXED MATURITIES

(In millions)		September 30, 2004
		Amortized Cost						Fair Value
NAIC Designation	Rating Agency Equivalent Designation	Property and Casualty		Life Companies		Total		Property and Casualty		Life Companies		Total
1	Aaa/Aa/A	$	2,563.7	$	2,323.4	$	4,887.1	$	2,644.3	$	2,397.9	$	5,042.2
2	Baa		918.7		1,291.8		2,210.5		945.1		1,358.4		2,303.5
3	Ba		102.2		126.8		229.0		106.6		136.0		242.6
4	B		80.8		48.7		129.5		83.6		51.2		134.8
5	Caa and lower		29.3		12.6		41.9		31.7		17.5		49.2
6	In or near default		3.3		9.9		13.2		3.6		12.8		16.4
Total fixed maturities		$	3,698.0	$	3,813.2	$	7,511.2	$	3,814.9	$	3,973.8	$	7,788.7
		December 31, 2003
		Amortized Cost						Fair Value
NAIC Designation	Rating Agency Equivalent Designation	Property and Casualty		Life Companies		Total		Property and Casualty		Life Companies		Total
1	Aaa/Aa/A	$	2,360.7	$	2,341.9	$	4,702.6	$	2,442.5	$	2,417.4	$	4,859.9
2	Baa		874.8		1,346.9		2,221.7		902.5		1,427.3		2,329.8
3	Ba		91.0		134.4		225.4		97.0		138.8		235.8
4	B		75.9		64.5		140.4		83.9		65.9		149.8
5	Caa and lower		25.9		14.3		40.2		34.6		19.4		54.0
6	In or near default		5.4		10.6		16.0		5.9		11.3		17.2
Total fixed maturities		$	3,433.7	$	3,912.6	$	7,346.3	$	3,566.4	$	4,080.1	$	7,646.5

22

ALLMERICA FINANCIAL CORPORATION

HISTORICAL FINANCIAL HIGHLIGHTS

(In millions, except per share data)	Q3 04			Q2 04			Q1 04			2003			Q4 03			Q3 03			Q2 03			Q1 03
SEGMENT INCOME (1)
Property and Casualty
Personal Lines	$	42.1		$	35.8		$	10.8		$	34.3		$	25.3		$	11.5		$	0.2		$	(2.7	)
Commercial Lines		(7.1	)		12.6			26.5			98.7			6.0			18.1			35.2			39.4
Other		1.7			0.7			1.3			(15.5	)		2.5			2.6			(22.1	)		1.5
Total Property and Casualty		36.7			49.1			38.6			117.5			33.8			32.2			13.3			38.2
Life Companies		(8.7	)		(6.3	)		9.8			8.7			5.7			(8.1	)		13.5			(2.4	)
Interest expense on corporate debt		(10.0	)		(9.9	)		(10.0	)		(39.9	)		(10.0	)		(10.0	)		(9.9	)		(10.0	)
Total segment income before federal income taxes	$	18.0		$	32.9		$	38.4		$	86.3		$	29.5		$	14.1		$	16.9		$	25.8
Federal income tax benefit (expense) on segment income		1.6			(3.8	)		(5.2	)		6.1			0.8			5.6			1.8			(2.1	)
Total segment income after federal income taxes		19.6			29.1			33.2			92.4			30.3			19.7			18.7			23.7
Federal income tax settlement		—			0.2			30.1			—			—			—			—			—
Net realized investment (losses) gains, net of amortization and taxes		(3.7	)		4.4			10.2			10.4			4.0			(8.2	)		6.6			8.0
Gains (losses) from retirement of funding agreements and trust instruments supported by funding obligations, net of taxes		1.9			—			(2.1	)		3.7			—			0.4			0.3			3.0
Income from sale of universal life business, net of taxes		—			—			—			3.6			—			—			—			3.6
Gains (losses) on derivative instruments, net of taxes		0.1			0.2			—			(4.5	)		(5.4	)		0.3			(0.4	)		1.0
Restructuring costs, net of taxes		(0.2	)		(1.5	)		(2.1	)		(18.7	)		(14.9	)		(0.8	)		(0.8	)		(2.2	)
Income before cumulative effect of accounting change		17.7			32.4			69.3			86.9			14.0			11.4			24.4			37.1
Cumulative effect of change in accounting principle, net of taxes		—			—			(57.2	)		—			—			—			—			—
NET INCOME	$	17.7		$	32.4		$	12.1		$	86.9		$	14.0		$	11.4		$	24.4		$	37.1
PER SHARE DATA (DILUTED)
NET INCOME	$	0.33		$	0.60		$	0.23		$	1.63		$	0.26		$	0.21		$	0.46		$	0.70
WEIGHTED AVERAGE SHARES OUTSTANDING (DILUTED)		53.6			53.7			53.7			53.2			53.5			53.3			53.0			53.0
BALANCE SHEET
Total investments	$	8,253.1		$	8,091.3		$	8,239.5					$	8,185.6		$	8,279.5		$	8,219.0		$	8,172.2
Separate account assets	$	10,086.0		$	10,740.3		$	11,304.9					$	11,835.4		$	11,546.0		$	11,719.0		$	11,016.2
Total assets	$	23,107.0		$	23,664.2		$	24,380.4					$	25,112.5		$	25,008.0		$	25,173.2		$	24,372.8
Total shareholders’ equity	$	2,294.2		$	2,207.2		$	2,289.3					$	2,220.2		$	2,196.6		$	2,225.6		$	2,115.9
Book value per share	$	43.09		$	41.48		$	43.04					$	41.89		$	41.42		$	41.96		$	39.86
Book value per share, excluding accumulated other comprehensive income	$	42.69		$	42.36		$	41.77					$	41.59		$	41.30		$	41.07		$	40.59

(1) Represents income or loss of the Company’s operating segments: Personal Lines, Commercial Lines, Other Property and Casualty, Life Companies and Corporate Debt. In accordance with Statement of Financial Accounting Standards No.131, the separate financial information of each segment is presented consistent with the manner in which results are regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

23

ALLMERICA FINANCIAL CORPORATION

HISTORICAL FINANCIAL HIGHLIGHTS

(In millions, except per share data)	2002			Q4 02			Q3 02			Q2 02			Q1 02
SEGMENT INCOME (LOSS) (1)
Property and Casualty
Personal Lines	$	40.2		$	(6.7	)	$	13.3		$	24.3		$	9.3
Commercial Lines		124.2			40.7			37.2			21.1			25.2
Other		5.8			(3.7	)		3.9			4.4			1.2
Total Property and Casualty		170.2			30.3			54.4			49.8			35.7
Life Companies		(634.7	)		2.2			(544.1	)		(118.3	)		25.5
Interest expense on corporate debt		(39.9	)		(10.0	)		(10.0	)		(9.9	)		(10.0	)
Total segment (loss) income before federal income taxes	$	(504.4	)	$	22.5		$	(499.7	)	$	(78.4	)	$	51.2
Federal income tax benefit (expense) on segment (loss) income		229.0			(0.6	)		184.7			50.7			(5.8	)
Total segment (loss) income after federal income taxes		(275.4	)		21.9			(315.0	)		(27.7	)		45.4
Net realized investment (losses) gains, net of amortization and taxes		(89.4	)		(45.8	)		(0.7	)		(38.5	)		(4.4	)
Gains from retirement of funding agreements and trust instruments supported by funding obligations, net of taxes		66.7			66.7			—			—			—
Loss from sale of universal life business, net of taxes		(20.3	)		(20.3	)		—			—			—
Gains on derivative instruments, net of taxes		26.2			6.5			—			9.1			10.6
Restructuring costs, net of taxes		(9.6	)		(9.6	)		—			—			—
Other items, net of taxes		(0.6	)		(4.5	)		2.3			1.6			—
(Loss) income before cumulative effect of accounting change		(302.4	)		14.9			(313.4	)		(55.5	)		51.6
Cumulative effect of change in accounting principle, net of taxes		(3.7	)		—			—			—			(3.7	)
NET (LOSS) INCOME	$	(306.1	)	$	14.9		$	(313.4	)	$	(55.5	)	$	47.9
PER SHARE DATA (DILUTED)
NET (LOSS) INCOME	$	(5.79	)	$	0.28		$	(5.93	)	$	(1.05	)	$	0.90
WEIGHTED AVERAGE SHARES OUTSTANDING (DILUTED) (2)		52.9			52.9			52.9			52.9			53.1
BALANCE SHEET
Total investments				$	8,806.8		$	9,816.0		$	9,844.9		$	9,977.2
Separate account assets				$	12,343.4		$	12,152.9		$	14,054.3		$	15,085.9
Total assets				$	26,578.9		$	27,528.6		$	29,157.3		$	30,292.2
Total shareholders’ equity				$	2,072.2		$	2,105.4		$	2,391.7		$	2,384.8
Book value per share				$	39.12		$	39.69		$	45.07		$	44.98
Book value per share, excluding accumulated other comprehensive income				$	39.83		$	39.47		$	45.32		$	46.32

(1) Represents income or loss of the Company’s operating segments: Personal Lines, Commercial Lines, Other Property and Casualty, Life Companies and Corporate Debt. In accordance with Statement of Financial Accounting Standards No.131, the separate financial information of each segment is presented consistent with the manner in which results are regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

(2) Excludes 0.2 million shares for the year ended December 31, 2002, 0.1 million shares for the quarter ended September 30, 2002 and 0.4 million shares for the quarter ended June 30, 2002 due to antidilution.

24

CORPORATE OFFICES AND

PRINCIPAL SUBSIDIARIES

Allmerica Financial

440 Lincoln Street

Worcester, MA 01653

The Hanover Insurance Company

440 Lincoln Street

Worcester, MA 01653

Citizens Insurance Company of America

645 West Grand River

Howell, MI 48843

MARKET AND DIVIDEND INFORMATION

The following information shows trading activity for the Company for the periods indicated:

Quarter Ended	2004
	Price Range
	High		Low		Dividends Per Share
March 31	$	38.25	$	30.84	—
June 30	$	36.10	$	30.71	—
September 30	$	34.61	$	26.05	—
December 31
Quarter Ended	2003
	Price Range
	High		Low		Dividends Per Share
March 31	$	16.43	$	9.84	—
June 30	$	18.53	$	13.75	—
September 30	$	24.90	$	17.74	—
December 31	$	31.29	$	24.65	—

INDUSTRY RATINGS AS OF OCTOBER 25, 2004

Financial Strength Ratings	A.M. Best	Standard & Poor’s	Moody’s
Property and Casualty Insurance Companies:
The Hanover Insurance Company	A-	BBB+	Baa1
Citizens Insurance Company of America	A-	BBB+	—
Life Insurance Companies:
Allmerica Financial Life Insurance and Annuity Company	B+	BB	Ba1
First Allmerica Financial Life Insurance Company	B+	BB	Ba1
Debt Ratings	A.M. Best	Standard & Poor’s	Moody’s
Allmerica Financial Corporation	bb+	BB	Ba1
Senior Debt
Allmerica Financial Corporation	bb-	B	Ba2
Capital Securities
Allmerica Financial Corporation	AMB-3	—	NP
Short Term Debt
First Allmerica Financial Life Insurance Company Short Term Insurance Financial Strength Rating	—	—	NP

TRANSFER AGENT

EquiServe, LP

PO Box 43076

Providence, RI 02940-3076

1-800-317-4454

COMMON STOCK

Common stock of Allmerica Financial Corporation is traded on the New York Stock Exchange under the symbol “AFC”.

INQUIRIES

Sujata Mutalik

Vice President, Investor Relations

(508) 855-3457

smutalik@Allmerica.com

William J. Steglitz, CPA

Director, Investor Relations

(508) 855-3883

wsteglitz@Allmerica.com

INVESTOR INFORMATION LINE

Dial 1-800-407-5222 to receive additional printed information, fax-on-demand services or other prerecorded messages.

Please visit our internet site at http:// www.Allmerica.com