8-K

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): October 25, 2005

ALLMERICA FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-13754	04-3263626
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

440 Lincoln Street, Worcester, Massachusetts 01653

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (508) 855-1000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

The following information is being furnished under Item 2.02 – Results of Operations and Financial Condition. Such information, including the exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section.

On October 25, 2005, Allmerica Financial Corporation issued a press release announcing its financial results for the quarter ended September 30, 2005. The release is furnished as Exhibit 99.1 hereto. Additionally, on October 25, 2005, the Company made available on its website financial information contained in its Statistical Supplement for the period ended September 30, 2005. The supplement is furnished as Exhibit 99.2 hereto.

Item 9.01 Financial Statements and Exhibits.

(a) Not applicable.

(b) Not applicable.

(c) Exhibits.

The following exhibits are furnished herewith.

Exhibit 99.1	Press Release, dated October 25, 2005, announcing the Company’s financial results for the quarter ended September 30, 2005.
Exhibit 99.2	Allmerica Financial Corporation Statistical Supplement for the period ended September 30, 2005.

2

SIGNATURES

Pursuant to the requirements of the Securities 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
	(Registrant)
Date: October 25, 2005	By:	/s/    EDWARD J. PARRY III
		Edward J. Parry III
		Chief Financial Officer,
		Executive Vice President,
		Principal Accounting Officer and Director

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Exhibit Index

Exhibit 99.1	Press Release, dated October 25, 2005, announcing the Company’s financial results for the quarter ended September 30, 2005.
Exhibit 99.2	Allmerica Financial Corporation Statistical Supplement for the period ended September 30, 2005.

4

EX-99.1

Exhibit 99.1

ALLMERICA FINANCIAL CORPORATION REPORTS THIRD QUARTER RESULTS:

NET LOSS OF $10.51 PER SHARE COMPARED TO NET INCOME OF $0.33 PER SHARE LAST YEAR

AFTER-TAX SEGMENT LOSS OF $2.04 PER SHARE COMPARED TO AFTER-TAX SEGMENT INCOME OF $0.38 PER SHARE LAST YEAR

WORCESTER, Mass., October 25, 2005—Allmerica Financial Corporation (NYSE: AFC) today reported a third quarter net loss of $562.4 million, or $10.51 per share, compared to net income of $17.7 million, or $0.33 per share, in the third quarter of last year. The net loss in the current quarter is attributed to the $474.6 million net loss on the previously announced sale of the variable life and annuity business and the $140 million net catastrophe loss related to Hurricane Katrina.

Total segment loss after taxes was $109.0 million, or $2.04 per share, in the third quarter, compared to total segment income after taxes of $20.1 million, or $0.38 per share, in the third quarter of last year. The total Property and Casualty pre-tax segment loss was $127.7 million in the third quarter of 2005, compared to pre-tax segment income of $36.7 million in the third quarter of 2004. The Life Companies segment, which for reporting purposes now includes only the business that will be retained after the sale of the variable life insurance and annuity business to The Goldman Sachs Group, Inc., reported a pre-tax segment loss of $0.9 million in the third quarter of 2005, compared to a pre-tax segment loss of $2.1 million in the third quarter last year. Segment income after taxes is presented consistent with the manner in which management evaluates operating results.

“Our reported results in the quarter were materially affected by two unusual events: the sale of our variable life insurance and annuity business and the catastrophe losses associated with Hurricane Katrina. These events masked strong core results in our Property and Casualty business this quarter, which were up 20% over the third quarter of last year,” said Frederick H. Eppinger, president and chief executive officer of Allmerica Financial Corporation. “A.M. Best’s quick reaffirmation of our rating is evidence that we have built the financial strength to protect our customers even in the worst of times. I am proud of our response to Hurricane Katrina; we have been working hard to help our agent partners and our customers rebuild their lives in the aftermath of Hurricane Katrina.”

Segment Results

The company conducts its business in four operating segments. Property and Casualty operations consist of three operating segments: Personal Lines, Commercial Lines, and Other Property and Casualty. The Personal Lines segment markets automobile, homeowners and ancillary coverages to individuals and families. The Commercial Lines segment offers a suite of products targeted at the small to mid-size business markets, which include commercial multiple peril, commercial automobile, workers’ compensation and other commercial coverages. The Other Property and Casualty segment includes a block of run-off voluntary pools business in which we have not actively participated since 1995; AMGRO, Inc., a premium financing business; Opus Investment Management, Inc., which provides investment management services to institutions, pension funds and other organizations; and earnings on holding company assets. The Life Companies, our fourth operating segment, include the retained business of First Allmerica Financial Life Insurance Company (FAFLIC), reflecting the expected sale of the variable life insurance and annuity business of Allmerica Financial Life Insurance and Annuity Company (AFLIAC). The retained business of FAFLIC primarily includes various blocks of traditional life insurance businesses and guaranteed investment contracts, both of which are in run-off. The financial impact of the expected sale transaction and of the business to be sold is reflected in Discontinued Operations and is not included in Segment Results.

The following table shows segment (loss) income after taxes. It is presented in a manner consistent with the way management evaluates results and is set forth in accordance with Statement of Financial Accounting Standards No. 131, “Disclosures About Segments of an Enterprise and Related Information.” Segment (loss) income after taxes excludes the items listed in the table at the end of this document.

	Quarter ended September 30 (In millions)
	2005			2004
Property and Casualty:
Personal Lines (1)	$	(27.8	)	$	42.1
Commercial Lines (2)		(101.0	)		(7.1	)
Other Property and Casualty		1.1			1.7
Total Property and Casualty		(127.7	)		36.7
Life Companies		(0.9	)		(2.1	)
Interest expense on corporate debt		(10.0	)		(10.0	)
Total pre-tax segment (loss) income		(138.6	)		24.6
Federal income tax benefit (expense)		29.6			(4.5	)
Total segment (loss) income after taxes (3)	$	(109.0	)	$	20.1

⁽¹⁾ Personal Lines- includes the pre-tax net impact of catastrophes of $101.7 million and $24.0 million for the third quarter of 2005 and 2004, respectively. (See the table at the end of this document.)

2

(2) Commercial Lines- includes the pre-tax net impact of catastrophes of $143.8 million and $37.7 million for the third quarter of 2005 and 2004, respectively. (See the table at the end of this document.)

(3) See reconciliation from segment (loss) income to net (loss) income at the end of this document.

Property and Casualty

Property and Casualty segment loss was $127.7 million in the third quarter of 2005, compared to segment income of $36.7 million in the third quarter of 2004. Segment earnings were lower in the quarter due to the net impact of catastrophes relating primarily to Hurricane Katrina. Excluding the pre-tax net impact of catastrophe losses, Property and Casualty segment income was $117.8 million, compared to $98.4 million in the prior-year quarter. The increase was primarily due to favorable development of prior-year reserves.

The company estimates its gross direct loss and loss adjustment expense from Hurricane Katrina to be $485 million and its gross direct losses from Hurricane Rita to be $30 million. However, in light of the difficulty of estimating losses for these events, there can be no assurance that the company’s ultimate costs associated with these events will not be substantially different from these estimates. In the current quarter, the estimated pre-tax net impact of catastrophes was $245.5 million. This amount is net of reinsurance and includes the cost of reinsurance reinstatement premiums, loss adjustment expenses for Hurricane Katrina, and an estimate for the Louisiana Citizens Fair Plan assessment. The pre-tax net impact of catastrophes in the prior year’s quarter was $61.7 million.

Property and Casualty highlights:

• Net premiums written were $542.0 million in the third quarter of 2005. Excluding the effect of reinsurance reinstatement premiums of $27.0 million in the current quarter, net premiums written were $569.0 million, compared to $581.6 million in the third quarter of 2004.

• Net premiums earned were $519.7 million in the third quarter of 2005. Excluding the effect of reinsurance reinstatement premiums of $27.0 million in the current quarter, net premiums earned were $546.7 million, compared to $563.7 million in the third quarter of 2004.

• New business net premiums written were $82.1 million in the third quarter of 2005, representing an increase of 30.1% compared to $63.1 million in the third quarter of 2004.

• Favorable development of prior-year reserves was $23.4 million in the third quarter of 2005, compared to $1.5 million in the third quarter of 2004.

3

The following table summarizes the components of the GAAP combined ratio for the Property and Casualty segment:

	Quarter ended September 30
	2005		Adjusted 2005 (1)		2004
Personal Lines losses (excluding catastrophes)	53.1	%	50.4	%	53.0	%
Personal Lines catastrophe-related losses	24.8	%	23.6	%	6.3	%
Total Personal Lines losses	77.9	%	74.0	%	59.3	%
Commercial Lines losses (excluding catastrophes)	49.3	%	47.0	%	46.9	%
Commercial Lines catastrophe-related losses	70.4	%	67.1	%	20.6	%
Commercial Lines losses	119.7	%	114.1	%	67.5	%
Total Property and Casualty Losses	93.4	%	88.7	%	62.1	%
Loss adjustment expenses	10.1	%	9.6	%	9.7	%
Hurricane Katrina-related loss adjustment expenses	0.7	%	0.7	%	—
Policy acquisition and other underwriting expenses	31.6	%	30.1	%	31.2	%
Combined Ratio	135.8	%	129.1	%	103.0	%

⁽¹⁾ The Adjusted 2005 ratios have been adjusted to exclude the impact of the reinsurance reinstatement premiums.

Personal Lines

Personal Lines segment loss was $27.8 million in the current quarter compared to segment income of $42.1 million in the prior year. The Personal Lines pre-tax net impact of catastrophes was $101.7 million in the current quarter. The pre-tax net impact of catastrophes in the prior year’s quarter was $24.0 million. Excluding the net impact of catastrophes, Personal Lines segment income for the current quarter was $73.9 million, compared to $66.1 million in the third quarter of last year. This $7.8 million improvement is primarily due to the favorable development of prior-year reserves. Also impacting results was a decrease in earned premium offset by lower expenses.

Favorable development of prior-year reserves was $13.4 million in the third quarter of 2005, compared to $7.0 million in the same quarter last year. The favorable development in both periods was primarily in the personal auto line.

Personal Lines highlights:

• Net premiums written were $353.5 million in the third quarter of 2005. Excluding the effect of reinsurance reinstatement premiums of $17.6 million in the current quarter, net premiums written were $371.1 million, compared to $394.6 million in the third quarter of 2004.

4

• Net premiums earned were $331.4 million in the third quarter of 2005. Excluding the effect of reinsurance reinstatement premiums of $17.6 million in the current quarter, net premiums earned were $349.0, compared to $380.5 million in the third quarter of 2004.

• New business direct premiums written were $40.3 million in the third quarter of 2005, representing an increase of 50.4% compared to $26.8 million in the third quarter of 2004.

• The Personal Lines GAAP combined ratio was 117.1% for the third quarter of 2005. Excluding the effect of reinsurance reinstatement premiums of $17.6 million in the current quarter, the combined ratio was 111.3%, versus 95.9% in the same period last year.

• Pre-tax net impact of catastrophes was $101.7 million, or 30.0 points of the combined ratio, for the third quarter of 2005 compared to $24.0 million, or 6.3 points of the combined ratio, for the third quarter of 2004.

• Favorable development of prior-year reserves was $13.4 million in the current quarter, compared to $7.0 million in the third quarter of 2004.

Commercial Lines

Commercial Lines segment loss was $101.0 million in the quarter, compared to a loss of $7.1 million in the third quarter of 2004. The Commercial Lines pre-tax net impact of catastrophes, was $143.8 million in the current quarter. The pre-tax net impact of catastrophes in the prior-year quarter was $37.7 million. Excluding this pre-tax net impact of catastrophes, Commercial Lines segment income for the quarter was $42.8 million, compared to $30.6 million in the prior-year quarter. This $12.2 million increase in segment income was due primarily to favorable development of prior-year reserves.

Favorable development of prior-year reserves was $11.2 million in the third quarter of 2005, compared to unfavorable development of $4.3 million in the same quarter last year. The favorable development in the current quarter was across all lines other than the workers’ compensation line. The unfavorable development in the prior-year quarter was primarily in the workers’ compensation line.

Commercial Lines highlights:

• Net premiums written were $188.5 million in the third quarter of 2005. Excluding the effect of reinsurance reinstatement premiums of $9.4 million in the current quarter, net premiums written were $197.9 million, compared to $187.0 million in the third quarter of 2004.

• Net premiums earned were $188.3 million in the third quarter of 2005. Excluding the effect of reinsurance reinstatement premiums of $9.4 million in the current quarter, net premiums earned were $197.7 million, compared to $183.2 million in the third quarter of 2004.

5

• New business net premiums written were $41.8 million in the third quarter of 2005, representing an increase of 15.2% compared to $36.3 million in the third quarter of 2004.

• The Commercial Lines GAAP combined ratio was 167.8% in the third quarter of 2005. Excluding the effect of reinsurance reinstatement premiums of $9.4 million in the current quarter, the combined ratio was 159.9%, compared to 117.5% in the same period last year.

• Pre-tax net impact of catastrophes was $143.8 million, or 76.0 points of the combined ratio, in the third quarter versus $37.7 million, or 20.6 points of the combined ratio, in the third quarter of 2004.

• Favorable development of prior year reserves was $11.2 million in the current quarter, compared to unfavorable development of $4.3 million in the third quarter of 2004.

Other Property and Casualty 

Other Property and Casualty segment income was $1.1 million in the quarter, compared to $1.7 million in the prior year. Other Property and Casualty includes our run-off voluntary pools, premium financing and investment management operations.

Life Companies

Continuing Operations:

The continuing operations of the Life Companies now include the FAFLIC retained business, reflecting the expected sale of the variable life insurance and annuity business of AFLIAC. The retained business primarily includes various blocks of traditional life insurance and guaranteed investment contract businesses, both of which are in run-off.

The Life Companies continuing operations reported a segment loss of $0.9 million in the third quarter of 2005, compared to a loss of $2.1 million in the third quarter of 2004, primarily attributable to lower expenses.

Projected Proceeds From the Variable Life Insurance and Annuity Transaction:

Total projected proceeds in connection with the variable life insurance and annuity transaction are currently projected to be approximately $340 million, approximately $30 million of which are expected to be deferred and paid over a three year period. This compares to our original projection of $385 million in total proceeds, with approximately $70 million expected to be deferred. The $45 million decrease in projected proceeds is driven by a $60 million decrease in the projected statutory adjusted capital of AFLIAC at the close of the transaction. This decrease was primarily from lower expected utilization of Net Operating Loss tax carryforwards resulting from lower than expected Property and Casualty earnings following the recent hurricane losses. This decrease is partially offset by $15 million in additional cash expected to be available to the Holding Company from certain non-insurance subsidiaries related to the variable business. The projected proceeds also include $40 million of proposed dividends from FAFLIC after the close of the transaction.

6

The actual purchase price will be determined at closing, and is subject to changes in equity market levels, implied equity market volatility, interest rates and surrender activity. Additionally, the purchase price will be adjusted based on the actual surplus level of Allmerica Financial Life Insurance and Annuity Company (AFLIAC), the life insurance affiliate being sold, at closing. The company implemented a hedge program that is intended to substantially protect the purchase price from movements in interest rates, equity market levels and implied equity market volatility through closing.

Discontinued Operations:

Loss on Disposal of Variable Life Insurance and Annuity Business:

Net income in the current quarter includes $474.6 million, or $8.87 per share, loss on the disposal of the variable life insurance and annuity business, which is reported in results from discontinued operations. This loss is composed of projected purchase price proceeds of approximately $285 million (total proceeds of $340 million less dividends of $40 million from FAFLIC and $15 million from certain other non-insurance subsidiaries) less estimated GAAP equity of $734.6 million and estimated closing costs of $25 million.

Income on Discontinued Variable Life Operations:

The results of operations of the variable life insurance and annuity business being sold have been reclassified from Life Companies segment income and reported as discontinued operations. In the current quarter, income on discontinued variable life operations was $17.6 million, net of taxes, compared to a loss of $0.1 million in the prior-year quarter. This improvement reflects the favorable equity market performance during the quarter.

Investment Results

Net investment income was $79.4 million for the third quarter of 2005, compared to $82.2 million in the same period of 2004. Third quarter net investment income decreased primarily due to lower invested assets in the Life Companies, resulting from maturities of long-term funding agreements. This was partially offset by increased average invested assets in the Property and Casualty segment due to increased cash flows.

Third quarter 2005 pre-tax net realized investment gains were $1.9 million, compared to losses of $5.3 million in the same period of 2004. In the current quarter, pre-tax net realized investment gains of $6.7 million from sales of investments were partially offset by $4.8 million of capital losses resulting from impairments on certain fixed maturity securities. In the third quarter of 2004, pre-tax net realized investment losses of $12.8 million, primarily from derivative transactions and impairments on certain fixed maturity securities, were partially offset by $7.5 million of realized gains resulting from sales of investments.

Balance Sheet

Shareholders’ equity was $1.9 billion, or $34.81 per share at September 30, 2005, compared to $2.3 billion, or $43.91 per share at December 31, 2004. Excluding accumulated other comprehensive income, book value was $35.47 per share at the close of the third quarter, compared to $43.85 per share at December 31, 2004. The decreases in shareholders’ equity and book value reflect the net loss in the current quarter on the sale of the variable life insurance and annuity business that we announced in August, and the catastrophe losses related primarily to Hurricanes Katrina and Rita.

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Earnings Conference Call

Allmerica Financial Corporation will host a conference call to discuss the company’s third quarter results on Wednesday, October 26th at 10:00 a.m. Eastern time. Similar to last quarter, a PowerPoint slide presentation will accompany our prepared remarks and has been posted on our website. Interested investors and others can listen to the call and access the presentation through Allmerica’s web site, located at www.allmerica.com. Web-cast participants should go to the web site at least 15 minutes early to register, download the new presentation, and install any necessary audio software. A re-broadcast of the conference call will be available on this web site two hours after the call.

Statistical Supplement

Allmerica Financial Corporation’s third quarter Earnings Press Release and Statistical Supplement are also available in the Investor Relations section at www.allmerica.com.

Forward-Looking Statements

Certain statements in this release or in the above referenced conference call 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” , “projections”, “outlook”, “should” 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 possibility of adverse catastrophe experience (including terrorism) and severe weather, the uncertainties in estimating property and casualty losses, the ability to increase or maintain certain property and casualty insurance rates, the impact of new product introductions (such as the multi-variate private passenger auto product), adverse loss development and adverse trends in mortality and morbidity, change in the current favorable frequency and loss trends generally being experienced industry-wide, changes in the stock and financial markets, the ability to improve renewal rates and increase new property and casualty policy counts, changes from assumed surrender activities and assumed stock market returns, adverse selection in underwriting activities and surrender patterns, investment impairments, heightened competition (including rate pressure), adverse and evolving state and federal legislation or regulation, adverse regulatory actions, particularly relating to the on-going investigations being conducted by the SEC, financial ratings actions, and various other factors.

In addition to the above, the losses recorded relating to Hurricanes Katrina and Rita are estimates only and therefore forward-looking statements. Estimating losses following a major catastrophe is an inherently uncertain process, which is made more difficult by the unprecedented nature of Hurricane Katrina. Factors that add to the complexity in this event include the legal and regulatory uncertainty, difficulty in accessing portions of the affected areas, the complexity of factors contributing to the losses, delays in claims reporting, the exacerbating circumstances of Hurricane Rita and a slower pace of recovery resulting from the extent of damage sustained in the affected areas. As a result, there can be no assurance that the company’s ultimate costs associated with this event will not be substantially different from these estimates.

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Finally, the projected proceeds from the variable life insurance and annuity transaction, and as a result, the estimated loss on disposal of this business which is included in discontinued operations, are forward-looking statements. Certain factors could cause actual results to differ materially from those anticipated, including: (1) the successful consummation of the transactions with Goldman Sachs in a timely manner; (2) the various conditions to the consummation of such transactions being satisfied or waived without the imposition of material burdens or expenses; (3) the required regulatory approvals of the transactions being obtained in a timely manner without the imposition of any material restrictions or burdens, and regulatory approval for dividend requests from FAFLIC; (4) the uncertainties as to the gross or net proceeds to be received by AFC, including the uncertainty as to the effects of the various purchase price adjustments and expenses incurred by AFC; (5) the shareholder approval of the AIT Fund reorganization; (6) the uncertainties of the purchase price hedge to effectively hedge the purchase price as currently estimated and at a cost consistent with expectations; (7) the impact of policyholder surrenders on the purchase price adjustment, which are not hedged; (8) the impact of contingent liabilities, including litigation and regulatory matters, assumed by the holding company in connection with the transaction; and (9) the statutory results of operations of the Life Companies segment until close, which will impact the statutory surplus of AFLIAC and consequently the ultimate purchase price.

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

Contact Information

Investors:	Media:
Sujata Mutalik	Michael F. Buckley
E-mail: smutalik@allmerica.com	E-mail: mibuckley@allmerica.com
1-508-855-3457	1-508-855-3099

9

ALLMERICA FINANCIAL CORPORATION

(In millions, except per share data)

	Quarter ended September 30
	2005			2004
Net (loss) income	$	(562.4	)	$	17.7
Net (loss) income per share (1)	$	(10.51	)	$	0.33
Weighted average shares		53.5			53.6

The following is a reconciliation from segment income (loss) to net income (loss)⁽²⁾ :

PER SHARE DATA (DILUTED) (1)	Quarter ended September 30
	2005						2004
	$			Per Share			$			Per Share
Property and Casualty
Personal Lines	$	(27.8	)		—		$	42.1			—
Commercial Lines		(101.0	)		—			(7.1	)		—
Other Property and Casualty		1.1			—			1.7			—
Total Property and Casualty		(127.7	)		—			36.7			—
Life Companies		(0.9	)		—			(2.1	)		—
Interest expense on corporate debt		(10.0	)		—			(10.0	)		—
Total segment (loss) income		(138.6	)	$	(2.59	)		24.6		$	0.46
Federal income tax benefit (expense) on segment income		29.6			0.55			(4.5	)		(0.08	)
Total segment (loss) income after federal income taxes		(109.0	)		(2.04	)		20.1			0.38
Net realized investment gains (losses), net of taxes and amortization		3.7			0.07			(4.1	)		(0.08	)
Gain on derivatives, net of taxes		0.1			—			0.1			—
Gains from retirement of funding agreements and trust instruments supported by funding obligations, net of taxes		—			—			1.9			0.03
Restructuring costs, net of taxes		(0.2	)		—			(0.2	)		—
(Loss) income from continuing operations		(105.4	)		(1.97	)		17.8			0.33
Income (loss) on discontinued variable life operations, net of taxes		17.6			0.33			(0.1	)		—
Loss on disposal of variable life insurance and annuity business, net of taxes		(474.6	)		(8.87	)		—			—
Net (loss) income	$	(562.4	)	$	(10.51	)	$	17.7		$	0.33

⁽¹) Per share data for the quarter ended September 30, 2005 represents basic loss per share due to antidilution. Basic net income per share was $0.33 for the quarter ended September 30, 2004.

⁽²⁾ In accordance with Statement of Financial Accounting Standards No. 131, Disclosure about Segments of an Enterprise and Related Information, the separate financial information of each segment is presented consistent with the way results are regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Management evaluates the results of the aforementioned segments on a pre-tax basis. Segment (loss) income is determined by adjusting net (loss) income for net realized investment gains and losses including net gains or losses on certain derivative instruments, because fluctuations in these gains and losses are determined by interest rates, financial markets and the timing of sales. Also, segment (loss) income excludes net gains and losses on disposals of businesses, discontinued operations, restructuring costs, extraordinary items, the cumulative effect of accounting changes and certain other items.

10

The pre-tax net impact of catastrophes includes losses and Hurricane Katrina-related loss adjustment expenses, net of reinsurance, as well as reinsurance reinstatement premiums, are as follows by segment:

	Quarter ended September 30, 2005
Pre-tax Impact of Catastrophes	Personal Lines		Commercial Lines		Total Property and Casualty
Net losses	$	82.3	$	132.6	$	214.9
Hurricane Katrina-related net loss adjustment expenses		1.8		1.8		3.6
Reinsurance reinstatement premiums		17.6		9.4		27.0
Net impact of catastrophes	$	101.7	$	143.8	$	245.5
	Quarter ended September 30, 2004
	Personal Lines		Commercial Lines		Total Property and Casualty
Net losses	$	24.0	$	37.7	$	61.7
Hurricane Katrina-related net loss adjustment expenses		—		—		—
Reinsurance reinstatement premiums		—		—		—
Net impact of catastrophes	$	24.0	$	37.7	$	61.7

Net (loss) income includes the following items (net of taxes) by segment:

	Quarter ended September 30, 2005
	Personal Lines			Commercial Lines			Other Property and Casualty		Life Companies			Total
Net realized investment (losses) gains, net of taxes and amortization	$	(0.4	)	$	(0.7	)	$	0.4	$	4.4		$	3.7
Gain on derivative instruments, net of taxes		—			—			—		0.1			0.1
Restructuring costs, net of taxes		—			—			—		(0.2	)		(0.2	)
Income on discontinued variable life insurance and annuity operations, net of taxes		—			—			—		17.6			17.6
Loss on disposal of variable life insurance and annuity business, net of taxes		—			—			—		(474.6	)		(474.6	)
	Quarter ended September 30, 2004
	Personal Lines			Commercial Lines			Other Property and Casualty		Life Companies			Total
Net realized investment gains (losses) net of taxes and amortization	$	0.6		$	0.1			—	$	(4.8	)	$	(4.1	)
Gain on derivative instruments, net of taxes		—			—			—		0.1			0.1
Gain from retirement of funding agreements and trust instruments supported by funding obligations, net of taxes		—			—			—		1.9			1.9
Restructuring costs, net of taxes		—			—			—		(0.2	)		(0.2	)
Loss on discontinued variable life insurance and annuity operations, net of taxes		—			—			—		(0.1	)		(0.1	)

All figures reported are unaudited.

11

EX-99.2

EXHIBIT 99.2

ALLMERICA FINANCIAL CORPORATION

STATISTICAL SUPPLEMENT

TABLE OF CONTENTS

Financial Highlights	1-3
Consolidated Financial Statements
Income Statements	4-5
Balance Sheets	6
Property and Casualty
Condensed Income Statements	7
Property and Casualty Consolidated Balance Sheets	8
GAAP Underwriting Results	9-14
Life Companies
Condensed Income Statements	15
Life Companies Consolidated Balance Sheets	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
Property and Casualty Statutory Ratios	23-26
Historical Financial Highlights	27
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)	2005			2004			% Change		2005			2004			% Change
SEGMENT (LOSS) INCOME
Property and Casualty
Personal Lines	$	(27.8	)	$	42.1		N/M		$	68.8		$	88.7		(22.4	)
Commercial Lines		(101.0	)		(7.1	)	N/M			(49.5	)		32.0		N/M
Other		1.1			1.7		(35.3	)		4.9			3.7		32.4
Total Property and Casualty		(127.7	)		36.7		N/M			24.2			124.4		(80.5	)
Life Companies		(0.9	)		(2.1	)	(57.1	)		(17.7	)		(13.6	)	30.1
Interest expense on corporate debt		(10.0	)		(10.0	)	—			(29.9	)		(29.9	)	—
Total segment (loss) income		(138.6	)		24.6		N/M			(23.4	)		80.9		N/M
Federal income tax benefit (expense) on segment income		29.6			(4.5	)	N/M			0.3			(14.0	)	N/M
Total segment (loss) income after taxes	$	(109.0	)	$	20.1		N/M		$	(23.1	)	$	66.9		N/M
RECONCILIATION FROM SEGMENT (LOSS) INCOME TO NET (LOSS) INCOME
Total segment (loss) income after taxes	$	(109.0	)	$	20.1		N/M		$	(23.1	)	$	66.9		N/M
Change in prior years tax reserves		—			—		N/M			2.3			—		N/M
Federal income tax settlement		—			—		N/M			—			30.3		N/M
Net realized investment gains (losses), net of taxes and amortization		3.7			(4.1	)	N/M			13.9			8.3		67.5
Gains (losses) on derivative instruments, net of taxes		0.1			0.1		—			(0.2	)		0.3		N/M
Gains (losses) from retirement of funding agreements and trust instruments supported by funding obligations, net of taxes		—			1.9		N/M			—			(0.2	)	N/M
Restructuring costs, net of taxes		(0.2	)		(0.2	)	—			(0.8	)		(3.8	)	(78.9	)
(Loss) income from continuing operations		(105.4	)		17.8		N/M			(7.9	)		101.8		N/M
Income (loss) from discontinued variable life and annuity business, net of taxes		17.6			(0.1	)	N/M			38.6			17.6		N/M
Loss on disposal of variable life and annuity business, net of taxes		(474.6	)		—		N/M			(474.6	)		—		N/M
(Loss) income before cumulative effect of accounting change		(562.4	)		17.7		N/M			(443.9	)		119.4		N/M
Cumulative effect of change in accounting principle, net of taxes		—			—		N/M			—			(57.2	)	N/M
Net (loss) income	$	(562.4	)	$	17.7		N/M		$	(443.9	)	$	62.2		N/M

1

ALLMERICA FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS

	Quarter ended September 30							Nine Months ended September 30
	2005			2004			% Change	2005			2004			% Change
PER SHARE DATA (DILUTED)
Total segment (loss) income	$	(2.59	)	$	0.46		N/M	$	(0.44	)	$	1.51		N/M
Federal income tax benefit (expense) on segment income		0.55			(0.08	)	N/M		0.01			(0.26	)	N/M
Total segment (loss) income after taxes		(2.04	)		0.38		N/M		(0.43	)		1.25		N/M
Change in prior years tax reserves		—			—		N/M		0.04			—		N/M
Federal income tax settlement		—			—		N/M		—			0.56		N/M
Net realized investment gains (losses), net of taxes and amortization		0.07			(0.08	)	N/M		0.26			0.15		73.3
Gains from retirement of funding agreements and trust instruments supported by funding obligations, net of taxes		—			0.03		N/M		—			—		N/M
Restructuring costs, net of taxes		—			—		N/M		(0.02	)		(0.07	)	(71.4	)
(Loss) income from continuing operations		(1.97	)		0.33		N/M		(0.15	)		1.89		N/M
Income (loss) from discontinued variable life and annuity business, net of taxes		0.33			—		—		0.72			0.33		N/M
Loss on disposal of variable life and annuity business, net of taxes		(8.87	)		—		N/M		(8.88	)		—		N/M
(Loss) income before cumulative effect of accounting change		(10.51	)		0.33		N/M		(8.31	)		2.22		N/M
Cumulative effect of change in accounting principle, net of taxes		—			—		N/M		—			(1.06	)	N/M
Net (loss) income	$	(10.51	)	$	0.33		N/M	$	(8.31	)	$	1.16		N/M

2

ALLMERICA FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS

(In millions, except per share data)	September 30 2005			December 31 2004			% Change
BALANCE SHEET
Shareholders’ equity
The Hanover Insurance Company (consolidated)	$	1,648.0		$	1,680.2		(1.9	)
Allmerica Financial Life Insurance and Annuity Company (consolidated)		686.2			1,112.1		(38.3	)
AFC Holding Company and other		(466.5	)		(452.8	)	3.0
Total shareholders’ equity	$	1,867.7		$	2,339.5		(20.2	)
Total adjusted statutory capital
The Hanover Insurance Company (consolidated)	$	1,112.9		$	1,098.8		1.3
Allmerica Financial Life Insurance and Annuity Company (consolidated)	$	577.3		$	581.9		(0.8	)
First Allmerica Financial Life Insurance Company	$	199.0		$	207.7		(4.2	)
The Hanover Insurance Company (consolidated) premium to surplus ratio		1.9:1			2.0:1		N/M
Allmerica Financial Life Insurance and Annuity Company (consolidated) estimated risk based capital ratio		549	%		472	%	77.0
First Allmerica Financial Life Insurance Company estimated risk based capital ratio		398	%		339	%	59.0
Book value per share
The Hanover Insurance Company (consolidated)	$	30.70		$	31.53		(2.6	)
Allmerica Financial Life Insurance and Annuity Company (consolidated)		12.78			20.87		(38.8	)
AFC Holding Company and other		(8.67	)		(8.49	)	2.1
Total book value per share	$	34.81		$	43.91		(20.7	)
Book value per share, excluding accumulated other comprehensive income	$	35.47		$	43.85		(19.1	)
Shares outstanding (1)		53.7			53.2
Stock price	$	41.14		$	32.83		25.3
Price/book value per share		1.2	x		0.7x		0.5	x
Debt/equity		27.2	%		21.7	%	5.5	pts
Debt/total capital		21.4	%		17.9	%	3.5	pts

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

3

ALLMERICA FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENTS

	Quarter ended September 30								Nine Months ended September 30
(In millions, except per share data)	2005			2004			% Change		2005			2004			% Change
REVENUES
Premiums	$	525.7		$	569.9		(7.8	)	$	1,650.3		$	1,718.7		(4.0	)
Fees and other income		22.2			18.9		17.5			60.8			62.4		(2.6	)
Net investment income		79.4			82.2		(3.4	)		238.0			251.2		(5.3	)
Net realized investment gains (losses)		1.9			(5.3	)	N/M			18.1			12.7		42.5
Total revenues		629.2			665.7		(5.5	)		1,967.2			2,045.0		(3.8	)
BENEFITS, LOSSES AND EXPENSES
Policy benefits, claims, losses and loss adjustment expenses		566.9			424.0		33.7			1,340.9			1,267.7		5.8
Policy acquisition expenses		116.5			120.5		(3.3	)		347.9			358.8		(3.0	)
(Gains) losses from retirement of funding agreements and trust instruments supported by funding obligations		—			(2.9	)	N/M			—			0.3		N/M
Losses (gains) on derivative instruments		1.4			(0.9	)	N/M			1.6			0.4		N/M
Restructuring costs		0.4			0.3		33.3			1.3			5.8		(77.6	)
Other operating expenses		84.7			102.8		(17.6	)		287.6			324.3		(11.3	)
Total benefits, losses and expenses		769.9			643.8		19.6			1,979.3			1,957.3		1.1
(Loss) income from continuing operations before federal income taxes		(140.7	)		21.9		N/M			(12.1	)		87.7		N/M
Federal income tax (benefit) expense		(35.3	)		4.1		N/M			(4.2	)		(14.1	)	(70.2	)
(Loss) income from continuing operations		(105.4	)		17.8		N/M			(7.9	)		101.8		N/M
Income (loss) from discontinued variable life and annuity business, net of taxes		17.6			(0.1	)	N/M			38.6			17.6		N/M
Loss on disposal of variable life and annuity business, net of taxes		(474.6	)		—		N/M			(474.6	)		—		N/M
(Loss) income before cumulative effect of change in accounting principle		(562.4	)		17.7		N/M			(443.9	)		119.4		N/M
Cumulative effect of change in accounting principle		—			—		—			—			(57.2	)	N/M
Net (loss) income	$	(562.4	)	$	17.7		N/M		$	(443.9	)	$	62.2		N/M

4

ALLMERICA FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENTS

	Quarter ended September 30						Nine Months ended September 30
	2005			2004		% Change	2005			2004			% Change
PER SHARE DATA (DILUTED)
(Loss) income from continuing operations	$	(1.97	)	$	0.33	N/M	$	(0.15	)	$	1.89		N/M
Income from discontinued variable life and annuity business		0.33			—	N/M		0.72			0.33		N/M
Loss on disposal of variable life and annuity business		(8.87	)		—	N/M		(8.88	)		—		N/M
(Loss) income before cumulative effect of change in accounting principle		(10.51	)		0.33	N/M		(8.31	)		2.22		N/M
Cumulative effect of change in accounting principle		—			—	N/M		—			(1.06	)	N/M
Net (loss) income (1)	$	(10.51	)	$	0.33	N/M	$	(8.31	)	$	1.16		N/M
Weighted average shares outstanding (2)		53.5			53.6			53.4			53.7

(1) Per share data for the quarter and nine months ended September 30, 2005 represents basic loss per share due to antidilution. Basic net income per share was $0.33 for the quarter ended September 30, 2004 and $1.17 for the nine months ended September 30, 2004.

(2) Weighted average shares outstanding for the quarter and nine months ended September 30, 2005 represents basic shares outstanding due to antidilution.

5

ALLMERICA FINANCIAL CORPORATION

CONSOLIDATED BALANCE SHEETS

(In millions, except per share data)	September 30 2005			December 31 2004			% Change
ASSETS
Investments:
Fixed maturities, at fair value (amortized cost of $7,028.4 and $7,553.4)	$	7,120.5		$	7,822.2		(9.0	)
Equity securities, at fair value (cost of $13.0 and $13.7)		17.5			17.0		2.9
Mortgage loans		102.2			114.8		(11.0	)
Policy loans		251.2			256.4		(2.0	)
Other long-term investments		43.6			55.3		(21.2	)
Total investments		7,535.0			8,265.7		(8.8	)
Cash and cash equivalents		561.2			486.5		15.4
Accrued investment income		100.1			118.2		(15.3	)
Premiums, accounts and notes receivable, net		503.1			485.4		3.6
Reinsurance receivable on paid and unpaid losses, benefits and unearned premiums		2,254.0			2,026.4		11.2
Deferred policy acquisition costs		250.7			905.5		(72.3	)
Deferred federal income taxes		453.8			415.1		9.3
Goodwill		128.2			128.2		—
Other assets		475.1			433.2		9.7
Separate account assets		9,385.9			10,455.0		(10.2	)
Total assets	$	21,647.1		$	23,719.2		(8.7	)
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Policy liabilities and accruals:
Future policy benefits	$	3,208.3		$	3,462.3		(7.3	)
Outstanding claims, losses and loss adjustment expenses		3,675.3			3,179.0		15.6
Unearned premiums		1,058.8			1,029.8		2.8
Contractholder deposit funds and other policy liabilities		330.8			379.5		(12.8	)
Total policy liabilities and accruals		8,273.2			8,050.6		2.8
Expenses and taxes payable		1,188.4			1,152.8		3.1
Reinsurance premiums payable		115.4			86.5		33.4
Trust instruments supported by funding obligations		307.7			1,126.0		(72.7	)
Long-term debt		508.8			508.8		—
Separate account liabilities		9,385.9			10,455.0		(10.2	)
Total liabilities		19,779.4			21,379.7		(7.5	)
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 60.5 and 60.4 million shares		0.6			0.6		—
Additional paid-in capital		1,784.3			1,782.1		—
Accumulated other comprehensive (loss) income		(35.4	)		3.0		N/M
Retained earnings		486.2			943.4		(48.5	)
Treasury stock at cost (6.8 and 7.2 million shares)		(368.0	)		(389.6	)	(5.5	)
Total shareholders’ equity		1,867.7			2,339.5		(20.2	)
Total liabilities and shareholders’ equity	$	21,647.1		$	23,719.2		(8.7	)

6

PROPERTY & CASUALTY

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

CONDENSED INCOME STATEMENTS

	Quarter ended September 30								Nine Months ended September 30
(In millions)	2005			2004			% Change		2005			2004			% Change
REVENUES
Net premiums written	$	542.0		$	581.6		(6.8	)	$	1,647.9		$	1,723.0		(4.4	)
Change in unearned premiums, net of prepaid reinsurance premiums		(22.3	)		(17.9	)	24.6			(28.2	)		(36.8	)	(23.4	)
Net premiums earned		519.7			563.7		(7.8	)		1,619.7			1,686.2		(3.9	)
Net investment income		52.2			48.0		8.8			154.4			146.0		5.8
Other income		14.0			13.0		7.7			39.1			39.4		(0.8	)
Total segment revenue		585.9			624.7		(6.2	)		1,813.2			1,871.6		(3.1	)
LOSSES AND OPERATING EXPENSES
Policy benefits, claims, losses and loss adjustment expenses		541.3			404.4		33.9			1,256.5			1,188.6		5.7
Policy acquisition expenses		115.1			118.5		(2.9	)		342.7			353.1		(2.9	)
Other operating expenses		57.2			65.1		(12.1	)		189.8			205.5		(7.6	)
Total losses and operating expenses		713.6			588.0		21.4			1,789.0			1,747.2		2.4
Segment (loss) income before federal income taxes	$	(127.7	)	$	36.7		N/M		$	24.2		$	124.4		(80.5	)

7

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

CONSOLIDATED BALANCE SHEETS (1)

(In millions, except per share data)	September 30 2005		December 31 2004		% Change
ASSETS
Investments:
Fixed maturities, at fair value (amortized cost of $3,769.3 and $3,677.5)	$	3,811.6	$	3,792.0	0.5
Equity securities, at fair value (cost of $0.3 and $1.0)		2.1		2.1	—
Mortgage loans		45.6		51.3	(11.1	)
Other long-term investments		0.3		0.6	(50.0	)
Total investments		3,859.6		3,846.0	0.4
Cash and cash equivalents		264.3		190.4	38.8
Accrued investment income		50.0		50.1	(0.2	)
Premiums, accounts, and notes receivable, net		500.0		481.2	3.9
Reinsurance receivable on paid and unpaid losses, benefits and unearned premiums		1,299.5		1,039.8	25.0
Deferred policy acquisition costs		211.0		211.4	(0.2	)
Deferred federal income tax asset		238.9		206.8	15.5
Goodwill		121.4		121.4	—
Other assets		199.8		174.2	14.7
Total assets	$	6,744.5	$	6,321.3	6.7
LIABILITIES AND SHAREHOLDER’S EQUITY
LIABILITIES
Policy liabilities and accruals:
Outstanding claims, losses and loss adjustment expenses	$	3,564.4	$	3,068.6	16.2
Unearned premiums		1,055.7		1,026.5	2.8
Contractholder deposit funds and other policy liabilities		4.9		4.8	2.1
Total policy liabilities and accruals		4,625.0		4,099.9	12.8
Expenses and taxes payable		368.0		467.0	(21.2	)
Reinsurance premiums payable		103.5		74.2	39.5
Total liabilities		5,096.5		4,641.1	9.8
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		1.6		48.0	(96.7	)
Retained earnings		1,472.2		1,458.0	1.0
Total shareholder’s equity		1,648.0		1,680.2	(1.9	)
Total liabilities and shareholder’s equity	$	6,744.5	$	6,321.3	6.7

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

8

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

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

	Quarter ended September 30, 2005
	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	$	241.2		$	102.3		$	10.0	$	353.5		$	28.1		$	49.3		$	72.3		$	38.8		$	188.5		$	—		$	542.0
Net premiums earned	$	235.0		$	87.5		$	8.9	$	331.4		$	30.9		$	48.4		$	77.2		$	31.8		$	188.3		$	—		$	519.7
Policy benefits, claims, losses excluding prior year reserve development and catastrophe losses		145.2			41.6			3.3		190.1			24.1			25.5			37.9			14.2			101.7			—			291.8
Prior year reserve development (favorable) unfavorable		(11.3	)		(3.0	)		0.9		(13.4	)		(2.0	)		(2.3	)		(3.6	)		(3.3	)		(11.2	)		1.2			(23.4	)
Pre-tax catastrophe losses		3.8			77.8			0.7		82.3			—			—			128.8			3.8			132.6			—			214.9
Loss adjustment expenses excluding prior year reserve development		25.0			9.4			0.4		34.8			4.7			4.1			11.7			2.4			22.9			0.2			57.9
Policy acquisition expenses and other underwriting expenses										94.6															69.8			—			164.4
Policyholders’ dividends										—															0.1			—			0.1
GAAP underwriting loss										(57.0	)														(127.6	)		(1.4	)		(186.0	)
Net investment income										25.6															25.3			1.3			52.2
Other income										4.8															3.2			6.0			14.0
Other operating expenses										(1.2	)														(1.9	)		(4.8	)		(7.9	)
Segment (loss) income before federal income taxes									$	(27.8	)													$	(101.0	)	$	1.1		$	(127.7	)
	Quarter ended September 30, 2004
	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	$	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			18.9			35.2			5.5			81.5			—			289.0
Prior year reserve development (favorable) unfavorable		(4.8	)		(2.3	)		0.1		(7.0	)		4.4			1.8			(4.8	)		2.9			4.3			1.2			(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		23.9			9.9			0.3		34.1			4.6			3.5			11.8			1.7			21.6			—			55.7
Policy acquisition expenses and other underwriting expenses										106.1															70.6			(0.1	)		176.6
Policyholders’ dividends										—															(0.5	)		—			(0.5	)
GAAP underwriting profit (loss)										15.8															(32.0	)		(1.1	)		(17.3	)
Net investment income										23.7															23.8			0.5			48.0
Other income										4.0															3.1			5.9			13.0
Other operating expenses										(1.4	)														(2.0	)		(3.6	)		(7.0	)
Segment income (loss) before federal income taxes									$	42.1														$	(7.1	)	$	1.7		$	36.7

9

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

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

	Nine Months ended September 30, 2005
	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	$	719.0		$	288.6		$	29.4		$	1,037.0		$	96.9		$	151.9		$	251.0		$	110.9		$	610.7		$	0.2		$	1,647.9
Net premiums earned	$	722.9		$	293.5		$	28.8		$	1,045.2		$	95.6		$	143.0		$	245.4		$	90.3		$	574.3		$	0.2		$	1,619.7
Policy benefits, claims, losses excluding prior year reserve development and catastrophe losses		464.4			132.9			10.0			607.3			74.2			74.3			118.2			35.3			302.0			—			909.3
Prior year reserve development (favorable) unfavorable		(24.6	)		(7.8	)		(0.1	)		(32.5	)		(0.2	)		(2.7	)		(15.1	)		(4.9	)		(22.9	)		2.4			(53.0	)
Pre-tax catastrophe losses		4.5			87.7			1.3			93.5			—			0.2			135.3			5.2			140.7			—			234.2
Loss adjustment expenses excluding prior year reserve development		76.1			21.8			1.1			99.0			14.9			12.3			32.3			6.6			66.1			0.3			165.4
Policy acquisition expenses and other underwriting expenses											293.3															215.5			(0.5	)		508.3
Policyholders’ dividends											—															0.6			—			0.6
GAAP underwriting loss											(15.4	)														(127.7	)		(2.0	)		(145.1	)
Net investment income											75.7															74.8			3.9			154.4
Other income											12.4															9.4			17.3			39.1
Other operating expenses											(3.9	)														(6.0	)		(14.3	)		(24.2	)
Segment income (loss) before federal income taxes										$	68.8														$	(49.5	)	$	4.9		$	24.2
	Nine Months ended September 30, 2004
	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	$	802.2		$	312.0		$	31.7		$	1,145.9		$	99.0		$	145.0		$	256.1		$	76.8		$	576.9		$	0.2		$	1,723.0
Net premiums earned	$	808.0		$	304.8		$	32.0		$	1,144.8		$	94.4		$	134.7		$	242.2		$	69.9		$	541.2		$	0.2		$	1,686.2
Policy benefits, claims, losses excluding prior year reserve development and catastrophe losses		525.0			137.4			17.7			680.1			66.1			67.6			111.1			21.8			266.6			—			946.7
Prior year reserve development (favorable) unfavorable		(10.4	)		(4.9	)		(0.7	)		(16.0	)		6.4			(4.6	)		(18.8	)		9.8			(7.2	)		3.0			(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		74.5			23.7			1.6			99.8			14.3			10.7			34.5			4.5			64.0			0.4			164.2
Policy acquisition expenses and other underwriting expenses											321.4															213.7			(0.2	)		534.9
Policyholders’ dividends											—															—			—			—
GAAP underwriting profit (loss)											9.0															(43.3	)		(3.0	)		(37.3	)
Net investment income											72.0															72.4			1.6			146.0
Other income											11.6															9.4			18.4			39.4
Other operating expenses											(3.9	)														(6.5	)		(13.3	)		(23.7	)
Segment (loss) income before federal income taxes										$	88.7														$	32.0		$	3.7		$	124.4

10

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

GAAP UNDERWRITING RATIOS

	Quarter ended September 30, 2005
	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	56.6	%	44.3	%	48.3	%	53.1	%	77.0	%	48.1	%	45.6	%	33.3	%	49.3	%	N/M	52.0	%
Catastrophe losses	1.6	%	88.9	%	7.9	%	24.8	%	—		—		166.8	%	11.9	%	70.4	%	N/M	41.4	%
Loss adjustment expenses	11.1	%	10.5	%	3.4	%	10.7	%	9.7	%	8.3	%	14.0	%	8.5	%	10.9	%	N/M	10.8	%
Policy acquisition and other underwriting expenses							28.5	%									37.1	%	N/M	31.6	%
Policyholders’ dividends							—										0.1	%	N/M	—
Combined							117.1	%									167.8	%	N/M	135.8	%
Policies in force	(9.3	)%	(6.8	)%	(5.6	)%	(7.9	)%	(2.8	)%	(1.5	)%	(2.7	)%	2.5	%	(0.7	)%	—	(7.1	)%
Retention (1)	79.6	%	82.1	%	N/M		81.0	%	71.6	%	79.0	%	79.1	%	N/M		78.4	%
	Quarter ended September 30, 2004
	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	59.0	%	37.7	%	51.0	%	53.0	%	85.4	%	46.2	%	38.3	%	26.7	%	46.9	%	N/M	51.2	%
Catastrophe losses	0.4	%	21.5	%	6.7	%	6.3	%	—		0.2	%	44.1	%	4.7	%	20.6	%	N/M	10.9	%
Loss adjustment expenses	8.9	%	8.7	%	2.9	%	8.7	%	12.3	%	6.8	%	12.7	%	16.8	%	11.7	%	N/M	9.7	%
Policy acquisition and other underwriting expenses							27.9	%									38.5	%	N/M	31.3	%
Policyholders’ dividends							—										(0.2	)%	N/M	(0.1	)%
Combined							95.9	%									117.5	%	N/M	103.0	%
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	%

(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

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

GAAP UNDERWRITING RATIOS EXCLUDING REINSTATEMENT PREMIUM

	Quarter ended September 30, 2005
	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	55.9	%	38.3	%	43.0	%	50.4	%	77.0	%	47.8	%	41.7	%	31.5	%	47.0	%	N/M	49.4	%
Catastrophe losses	1.6	%	76.8	%	7.0	%	23.6	%	—		—		152.6	%	11.3	%	67.1	%	N/M	39.3	%
Loss adjustment expenses	10.9	%	9.1	%	3.0	%	10.2	%	9.7	%	8.2	%	12.8	%	8.0	%	10.4	%	N/M	10.3	%
Policy acquisition and other underwriting expenses							27.1	%									35.3	%	N/M	30.1	%
Policyholders’ dividends							—										0.1	%	N/M	—
Combined							111.3	%									159.9	%	N/M	129.1	%
Policies in force	(9.3	)%	(6.8	)%	(5.6	)%	(7.9	)%	(2.8	)%	(1.5	)%	(2.7	)%	2.5	%	(0.7	)%	—	(7.1	)%
Retention (1)	79.6	%	82.1	%	N/M		81.0	%	71.6	%	79.0	%	79.1	%	N/M		78.4	%
	Quarter ended September 30, 2004
	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	59.0	%	37.7	%	51.0	%	53.0	%	85.4	%	46.2	%	38.3	%	26.7	%	46.9	%	N/M	51.2	%
Catastrophe losses	0.4	%	21.5	%	6.7	%	6.3	%	—		0.2	%	44.1	%	4.7	%	20.6	%	N/M	10.9	%
Loss adjustment expenses	8.9	%	8.7	%	2.9	%	8.7	%	12.3	%	6.8	%	12.7	%	16.8	%	11.7	%	N/M	9.7	%
Policy acquisition and other underwriting expenses							27.9	%									38.5	%	N/M	31.3	%
Policyholders’ dividends							—										(0.2	)%	N/M	(0.1	)%
Combined							95.9	%									117.5	%	N/M	103.0	%
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	%

(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.

12

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

GAAP UNDERWRITING RATIOS

	Nine Months ended September 30, 2005
	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	60.7	%	43.1	%	35.1	%	55.1	%	82.0	%	50.1	%	43.9	%	33.1	%	50.1	%	N/M	53.4	%
Catastrophe losses	0.6	%	29.9	%	4.5	%	8.9	%	—		0.1	%	55.1	%	5.8	%	24.5	%	N/M	14.5	%
Loss adjustment expenses	10.7	%	7.0	%	3.1	%	9.4	%	11.0	%	8.5	%	11.3	%	7.9	%	10.0	%	N/M	9.6	%
Policy acquisition and other underwriting expenses							28.1	%									37.5	%	N/M	31.4	%
Policyholders’ dividends							—										0.1	%	N/M	—
Combined							101.5	%									122.2	%	N/M	108.9	%
Policies in force	(9.3	)%	(6.8	)%	(5.6	)%	(7.9	)%	(2.8	)%	(1.5	)%	(2.7	)%	2.5	%	(0.7	)%	—	(7.1	)%
Retention (1)	79.6	%	82.1	%	N/M		81.0	%	76.4	%	80.8	%	80.9	%	N/M		80.6	%
	Nine Months ended September 30, 2004
	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	63.7	%	44.2	%	53.1	%	58.2	%	79.6	%	48.3	%	40.6	%	44.5	%	49.8	%	N/M	55.7	%
Catastrophe losses	0.2	%	15.5	%	4.4	%	4.4	%	—		0.1	%	19.2	%	0.9	%	8.8	%	N/M	5.8	%
Loss adjustment expenses	9.2	%	7.0	%	5.0	%	8.5	%	12.4	%	6.4	%	11.8	%	7.2	%	9.9	%	N/M	9.0	%
Policy acquisition and other underwriting expenses							28.1	%									39.5	%	N/M	31.7	%
Policyholders’ dividends							—										—		N/M	—
Combined							99.2	%									108.0	%	N/M	102.2	%
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	%

(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.

13

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

GAAP UNDERWRITING RATIOS EXCLUDING REINSTATEMENT PREMIUM

	Nine Months ended September 30, 2005
	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	60.5	%	41.2	%	33.8	%	54.1	%	82.0	%	50.0	%	42.6	%	32.4	%	49.3	%	N/M	52.6	%
Catastrophe losses	0.6	%	28.5	%	4.3	%	8.8	%	—		0.1	%	53.6	%	5.6	%	24.1	%	N/M	14.2	%
Loss adjustment expenses	10.6	%	6.6	%	3.0	%	9.3	%	11.0	%	8.5	%	11.0	%	7.7	%	9.9	%	N/M	9.5	%
Policy acquisition and other underwriting expenses							27.6	%									36.9	%	N/M	30.9	%
Policyholders’ dividends							—										0.1	%	N/M	—
Combined							99.8	%									120.3	%	N/M	107.2	%
Policies in force	(9.3	)%	(6.8	)%	(5.6	)%	(7.9	)%	(2.8	)%	(1.5	)%	(2.7	)%	2.5	%	(0.7	)%	—	(7.1	)%
Retention (1)	79.6	%	82.1	%	N/M		81.0	%	76.4	%	80.8	%	80.9	%	N/M		80.6	%
	Nine Months ended September 30, 2004
	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	63.7	%	44.2	%	53.1	%	58.2	%	79.6	%	48.3	%	40.6	%	44.5	%	49.8	%	N/M	55.7	%
Catastrophe losses	0.2	%	15.5	%	4.4	%	4.4	%	—		0.1	%	19.2	%	0.9	%	8.8	%	N/M	5.8	%
Loss adjustment expenses	9.2	%	7.0	%	5.0	%	8.5	%	12.4	%	6.4	%	11.8	%	7.2	%	9.9	%	N/M	9.0	%
Policy acquisition and other underwriting expenses							28.1	%									39.5	%	N/M	31.7	%
Policyholders’ dividends							—										—		N/M	—
Combined							99.2	%									108.0	%	N/M	102.2	%
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	%

(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.

14

LIFE COMPANIES

ALLMERICA FINANCIAL CORPORATION

LIFE COMPANIES

CONDENSED INCOME STATEMENTS (1)

	Quarter ended September 30								Nine Months ended September 30
(In millions)	2005			2004			% Change		2005			2004			% Change
REVENUES
Premiums	$	6.0		$	6.2		(3.2	)	$	30.6		$	32.5		(5.8	)
Fees and other income		8.8			9.1		(3.3	)		27.3			29.9		(8.7	)
Net investment income		27.1			34.1		(20.5	)		83.4			105.0		(20.6	)
Total segment revenue		41.9			49.4		(15.2	)		141.3			167.4		(15.6	)
POLICY BENEFITS, CLAIMS AND OPERATING EXPENSES
Policy benefits, claims and losses		21.8			19.4		12.4			79.2			78.8		0.5
Policy acquisition expenses		1.5			2.0		(25.0	)		5.2			5.7		(8.8	)
Other operating expenses		19.5			30.1		(35.2	)		74.6			96.5		(22.7	)
Total policy benefits, claims and operating expenses		42.8			51.5		(16.9	)		159.0			181.0		(12.2	)
Segment loss before federal income taxes	$	(0.9	)	$	(2.1	)	(57.1	)	$	(17.7	)	$	(13.6	)	30.1

(1) As a result of the pending sale of the variable life and annuity business, segment results have been restated to reflect the variable life and annuity business as a discontinued operation. Segment income now includes results from our traditional life business, our group retirement business and our GIC business. Prior to the sale, the Life Companies segment included the results of the variable life and annuity business as well.

15

ALLMERICA FINANCIAL CORPORATION

LIFE COMPANIES

CONSOLIDATED BALANCE SHEETS (1)

(In millions, except per share data)	September 30 2005			December 31 2004			% Change
ASSETS
Investments:
Fixed maturities, at fair value (amortized cost of $3,150.4 and $3,826.6)	$	3,198.3		$	3,976.1		(19.6	)
Equity securities, at fair value (cost of $3.4)		6.1			5.6		8.9
Mortgage loans		57.0			64.1		(11.1	)
Policy loans		251.2			256.4		(2.0	)
Other long-term investments		43.2			54.7		(21.0	)
Total investments		3,555.8			4,356.9		(18.4	)
Cash and cash equivalents		287.9			280.9		2.5
Accrued investment income		49.0			67.4		(27.3	)
Premiums, accounts, and notes receivable, net		3.1			4.2		(26.2	)
Reinsurance receivable on paid and unpaid losses, benefits and unearned premiums		954.5			986.6		(3.3	)
Deferred policy acquisition costs (2)		39.7			694.1		(94.3	)
Deferred federal income tax asset (2)		212.9			207.9		2.4
Other assets (2)		207.8			248.5		(16.4	)
Separate account assets		9,385.9			10,455.0		(10.2	)
Total assets	$	14,696.6		$	17,301.5		(15.1	)
LIABILITIES AND SHAREHOLDER’S EQUITY
LIABILITIES
Policy liabilities and accruals:
Future policy benefits (2)	$	3,208.3		$	3,462.3		(7.3	)
Outstanding claims, losses and loss adjustment expenses		110.9			110.4		0.5
Unearned premiums		3.1			3.3		(6.1	)
Contractholder deposit funds and other policy liabilities		325.9			374.7		(13.0	)
Total policy liabilities and accruals		3,648.2			3,950.7		(7.7	)
Expenses and taxes payable		656.7			645.4		1.8
Reinsurance premiums payable		11.9			12.3		(3.3	)
Trust instruments supported by funding obligations		307.7			1,126.0		(72.7	)
Separate account liabilities		9,385.9			10,455.0		(10.2	)
Total liabilities		14,010.4			16,189.4		(13.5	)
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		1,000.0			1,000.0		—
Accumulated other comprehensive loss		(11.1	)		(21.1	)	(47.4	)
Retained (deficit) earnings (2)		(305.2	)		130.7		N/M
Total shareholder’s equity (2)		686.2			1,112.1		(38.3	)
Total liabilities and shareholder’s equity	$	14,696.6		$	17,301.5		(15.1	)

(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) As a result of the pending sale of the variable life and annuity business, 2005 balances and results include changes in actuarial assumptions related to deferred acquisition costs, deferred sales inducements, and in guaranteed minimum death benefits as well as the effect of the sale on deferred federal income taxes. Changes in these items resulted in a net loss of approximately $470 million. At the closing, we anticipate a further reduction in Life Companies shareholder’s equity for an amount approximating the net proceeds of the sale.

16

ALLMERICA FINANCIAL CORPORATION

LIFE COMPANIES

SELECTED FINANCIAL INFORMATION - VARIABLE ANNUITIES

	Quarter ended September 30								Nine Months ended September 30
(In millions)	2005			2004			% Change		2005			2004			% Change
SEPARATE ACCOUNT INDIVIDUAL ANNUITIES
Balance at beginning of period	$	8,358.8		$	9,579.6		(12.7	)	$	9,315.1		$	10,545.8			(11.7	)
Direct premiums and deposits		5.0			8.7		(42.5	)		19.0			43.0			(55.8	)
Redemptions		(405.2	)		(425.0	)	(4.7	)		(1,263.3	)		(1,468.0	)		(13.9	)
Market appreciation (depreciation)		324.5			(145.2	)	N/M			245.9			50.8			N/M
Transfers and other (1)		(1.8	)		(44.7	)	(96.0	)		(35.4	)		(198.2	)		(82.1	)
Balance at end of period	$	8,281.3		$	8,973.4		(7.7	)	$	8,281.3		$	8,973.4			(7.7	)
									Quarter ended
									September 30 2005			June 30 2005			September 30 2004
VARIABLE INDIVIDUAL ANNUITIES (2)
Redemptions									$	464.8		$	450.8		$	491.7
Redemption rates (3)										20	%		19	%		19	%
									September 30 2005			December 31 2004			% Change
VARIABLE INDIVIDUAL ANNUITIES
Account values									$	9,324.0		$	10,460.5			(10.9	)
Net amount at risk									$	1,750.3		$	1,937.9			(9.7	)
Deferred acquisition cost asset and capitalized sales inducements (4)									$	26.1		$	557.0			(95.3	)
Value of surrender charges (inforce block)									$	289.3		$	360.8			(19.8	)

(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 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.

(4) The decrease in deferred acquisition costs and capitalized sales inducements resulted from the pending sale of the variable life and annuity business.

17

ALLMERICA FINANCIAL CORPORATION

LIFE COMPANIES

FUTURE POLICY BENEFITS AND ACCOUNT BALANCES

(In millions)	September 30 2005		December 31 2004		% Change
GENERAL ACCOUNT RESERVES
Insurance
Traditional life	$	777.6	$	821.2	(5.3	)
Universal life (1)		560.4		579.8	(3.3	)
Variable universal life (2)		242.5		242.9	(0.2	)
Individual health (3)		258.0		257.9	—
Total insurance		1,838.5		1,901.8	(3.3	)
Annuities
Individual annuities		1,180.5		1,378.0	(14.3	)
Group annuities		403.2		428.7	(5.9	)
Total annuities		1,583.7		1,806.7	(12.3	)
Guaranteed investment contracts
Contractholder deposit funds and other policy liabilities		29.8		30.0	(0.7	)
Total general account reserves	$	3,452.0	$	3,738.5	(7.7	)
Trust instruments supported by funding obligations	$	307.7	$	1,126.0	(72.7	)
SEPARATE ACCOUNT LIABILITIES
Variable universal life	$	978.1	$	1,025.3	(4.6	)
Variable individual annuities		8,281.3		9,315.1	(11.1	)
Total individual		9,259.4		10,340.4	(10.5	)
Group variable universal life		26.2		28.3	(7.4	)
Group annuities		100.3		86.3	16.2
Total group		126.5		114.6	10.4
Total separate account liabilities	$	9,385.9	$	10,455.0	(10.2	)

(1) Universal life reserves include reinsured balances of $560.4 and $579.4 million at September 30, 2005 and December 31, 2004, respectively.

(2) Variable universal life reserves include group variable universal life reserves of $12.3 and $11.1 million at September 30, 2005 and December 31, 2004, respectively.

(3) Individual health reserves include reinsured balances of $257.9 and $257.3 million at September 30, 2005 and December 31, 2004, respectively.

18

INVESTMENTS

ALLMERICA FINANCIAL CORPORATION

NET INVESTMENT INCOME

	Nine Months ended September 30, 2005
(In millions, except yields)	Property and Casualty (1)			Yield		Life Companies (2)			Yield		Total			Yield
Fixed maturities	$	155.2		5.54	%	$	82.5		5.66	%	$	237.7		5.58	%
Equity securities		0.7		—			—		—			0.7		—
Mortgages (3)		3.3		9.04	%		4.1		9.32	%		7.4		9.20	%
All other		(1.3	)	—			0.7		—			(0.6	)	—
Investment expenses		(3.3	)	—			(3.9	)	—			(7.2	)	—
Total	$	154.6		5.36	%	$	83.4		4.93	%	$	238.0		5.20	%
	Nine Months ended September 30, 2004
	Property and Casualty (1)			Yield		Life Companies (2)			Yield		Total			Yield
Fixed maturities	$	148.5		5.70	%	$	106.5		5.92	%	$	255.0		5.79	%
Equity securities		1.5		—			—		—			1.5		—
Mortgages (3)		3.2		8.18	%		6.1		7.86	%		9.3		7.97	%
All other		(3.9	)	—			(3.3	)	—			(7.2	)	—
Investment expenses		(3.1	)	—			(4.3	)	—			(7.4	)	—
Total	$	146.2		5.42	%	$	105.0		4.85	%	$	251.2		5.17	%

(1) Includes purchase accounting adjustments of $2.4 for the quarters ended September 30, 2005 and 2004. Also includes corporate eliminations of $0.4 million for the quarters ended September 30, 2005 and 2004.

(2) Excludes discontinued operations of $60.9 million and $63.9 million for the nine months ended September 30, 2005 and 2004, respectively.

(3) Excluding mortgage prepayment fees totalling $0.8 million, mortgage yields are 7.94%, 8.18% and 8.05% for Property and Casualty, Life Companies and in Total, respectively, for the nine months ended September 30, 2005. There were no mortgage prepayment fees for the nine months ended September 30, 2004.

19

ALLMERICA FINANCIAL CORPORATION

COMPONENTS OF NET REALIZED INVESTMENT GAINS (LOSSES)

	Quarter ended September 30
	2005									2004
	Net Realized Gains (Losses)									Net Realized Gains (Losses)
(In millions)	Property and Casualty (1)			Life Companies (2)			Total			Property and Casualty (1)			Life Companies (2)			Total
Net gains on securities transactions	$	3.4		$	3.3		$	6.7		$	3.5		$	4.0		$	7.5
Other than temporary impairments		(3.9	)		(0.9	)		(4.8	)		(1.2	)		(2.3	)		(3.5	)
Other		—			—			—			(0.7	)		(8.6	)		(9.3	)
Net realized investment (losses) gains	$	(0.5	)	$	2.4		$	1.9		$	1.6		$	(6.9	)	$	(5.3	)
	Nine Months ended September 30
	2005									2004
	Net Realized Gains (Losses)									Net Realized Gains (Losses)
	Property and Casualty (1)			Life Companies (2)			Total			Property and Casualty (1)			Life Companies (2)			Total
Net gains on securities transactions	$	6.6		$	19.1		$	25.7		$	19.3		$	9.2		$	28.5
Other than temporary impairments		(6.9	)		(1.4	)		(8.3	)		(1.9	)		(3.9	)		(5.8	)
Other		(0.7	)		1.4			0.7			(0.7	)		(9.3	)		(10.0	)
Net realized investment (losses) gains	$	(1.0	)	$	19.1		$	18.1		$	16.7		$	(4.0	)	$	12.7

(1) Includes corporate eliminations of $0.1 million and $0.2 million for the quarters ended September 30, 2005 and 2004, respectively and corporate eliminations of $0.8 million and $4.2 million for the nine months ended September 30, 2005 and 2004, respectively.

(2) Excludes discontinued operations of $(1.9) million and $0.9 million for the quarters ended September 30, 2005 and 2004, respectively and discontinued operations of $6.1 million and $5.6 million for the nine months ended September 30, 2005 and 2004, respectively.

20

ALLMERICA FINANCIAL CORPORATION

AGING OF GROSS UNREALIZED LOSSES ON SECURITIES AVAILABLE FOR SALE

	September 30, 2005
	Gross Unrealized Losses						Fair Value
(In millions)	Property and Casualty		Life Companies		Total		Property and Casualty		Life Companies		Total
INVESTMENT GRADE FIXED MATURITIES:
0 - 6 months	$	12.0	$	11.0	$	23.0	$	1,088.6	$	877.8	$	1,966.4
7 - 12 months		6.0		4.5		10.5		257.6		191.7		449.3
Greater than 12 months		11.1		11.2		22.3		273.6		237.4		511.0
Total investment grade fixed maturities		29.1		26.7		55.8		1,619.8		1,306.9		2,926.7
BELOW INVESTMENT GRADE FIXED MATURITIES:
0 - 6 months		3.4		1.1		4.5		91.8		23.3		115.1
7 - 12 months		1.7		0.4		2.1		38.5		6.9		45.4
Greater than 12 months		—		—		—		—		—		—
Total below investment grade fixed maturities		5.1		1.5		6.6		130.3		30.2		160.5
Equity securities		—		—		—		—		—		—
Total fixed maturities and equity securities	$	34.2	$	28.2	$	62.4	$	1,750.1	$	1,337.1	$	3,087.2
	December 31, 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	$	1.9	$	2.3	$	4.2	$	285.4	$	367.3	$	652.7
7 - 12 months		3.0		3.1		6.1		156.5		175.5		332.0
Greater than 12 months		8.1		7.4		15.5		229.4		196.0		425.4
Total investment grade fixed maturities		13.0		12.8		25.8		671.3		738.8		1,410.1
BELOW INVESTMENT GRADE FIXED MATURITIES:
0 - 6 months		0.3		0.1		0.4		31.6		5.3		36.9
7 - 12 months		1.4		0.5		1.9		16.9		3.4		20.3
Greater than 12 months		—		—		—		—		1.0		1.0
Total below investment grade fixed maturities		1.7		0.6		2.3		48.5		9.7		58.2
Equity securities		0.1		—		0.1		0.7		—		0.7
Total fixed maturities and equity securities	$	14.8	$	13.4	$	28.2	$	720.5	$	748.5	$	1,469.0

21

ALLMERICA FINANCIAL CORPORATION

CREDIT QUALITY OF FIXED MATURITIES

(In millions)	September 30, 2005
		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	$	2,735.0	$	2,063.5	$	4,798.5	$	2,767.6	$	2,079.5	$	4,847.1
2	Baa		885.0		925.9		1,810.9		892.1		948.4		1,840.5
3	Ba		109.8		102.3		212.1		108.3		104.6		212.9
4	B		97.5		42.2		139.7		97.8		43.2		141.0
5	Caa and lower		48.3		13.2		61.5		53.2		19.6		72.8
6	In or near default		2.4		3.3		5.7		3.2		3.0		6.2
Total fixed maturities		$	3,878.0	$	3,150.4	$	7,028.4	$	3,922.2	$	3,198.3	$	7,120.5
	December 31, 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	$	2,601.9	$	2,374.4	$	4,976.3	$	2,676.9	$	2,436.9	$	5,113.8
2	Baa		908.8		1,258.7		2,167.5		937.3		1,320.3		2,257.6
3	Ba		89.5		130.6		220.1		94.8		138.9		233.7
4	B		92.2		40.6		132.8		96.7		45.9		142.6
5	Caa and lower		31.1		13.7		44.8		36.7		19.6		56.3
6	In or near default		3.3		8.6		11.9		3.7		14.5		18.2
Total fixed maturities		$	3,726.8	$	3,826.6	$	7,553.4	$	3,846.1	$	3,976.1	$	7,822.2

22

PROPERTY & CASUALTY

STATUTORY RATIOS

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

STATUTORY UNDERWRITING RATIOS

	Quarter ended September 30, 2005
	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	56.6	%	44.2	%	47.7	%	53.1	%	76.7	%	47.9	%	45.4	%	33.6	%	49.2	%	N/M	51.9	%
Catastrophe losses	1.6	%	88.9	%	8.0	%	24.8	%	—		0.2	%	166.6	%	11.9	%	70.4	%	N/M	41.4	%
Loss adjustment expenses	11.1	%	10.6	%	3.4	%	10.7	%	9.7	%	8.1	%	14.0	%	8.5	%	10.8	%	N/M	10.8	%
Policy acquisition and other underwriting expenses							27.1	%									37.6	%	N/M	30.7	%
Policyholders’ dividends							—										0.1	%	N/M	—
Combined							115.7	%									168.1	%	N/M	134.8	%
	Quarter ended September 30, 2004
	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	59.0	%	37.7	%	51.0	%	53.0	%	85.8	%	46.2	%	38.3	%	30.2	%	47.4	%	N/M	51.4	%
Catastrophe losses	0.4	%	21.5	%	6.7	%	6.3	%	N/M		0.2	%	44.1	%	4.7	%	20.6	%	N/M	10.9	%
Loss adjustment expenses	8.9	%	8.6	%	2.9	%	8.7	%	12.0	%	7.0	%	12.7	%	16.4	%	11.6	%	N/M	9.7	%
Policy acquisition and other underwriting expenses							27.8	%									37.7	%	N/M	31.0	%
Policyholders’ dividends							—										(0.3	)%	N/M	(0.1	)%
Combined							95.8	%									117.0	%	N/M	102.9	%

23

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

GAAP UNDERWRITING RATIOS EXCLUDING REINSTATEMENT PREMIUM

	Quarter ended September 30, 2005
	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	56.0	%	38.2	%	42.4	%	50.4	%	76.7	%	47.6	%	41.5	%	31.8	%	46.9	%	N/M	49.4	%
Catastrophe losses	1.6	%	76.8	%	7.1	%	23.6	%	—		0.2	%	152.4	%	11.3	%	67.1	%	N/M	39.3	%
Loss adjustment expenses	10.9	%	9.2	%	3.0	%	10.2	%	9.7	%	8.0	%	12.8	%	8.0	%	10.3	%	N/M	10.3	%
Policy acquisition and other underwriting expenses							25.8	%									35.8	%	N/M	29.3	%
Policyholders’ dividends							—										0.1	%	N/M	—
Combined							110.0	%									160.2	%	N/M	128.3	%
	Quarter ended September 30, 2004
	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	59.0	%	37.7	%	51.0	%	53.0	%	85.8	%	46.2	%	38.3	%	30.2	%	47.4	%	N/M	51.4	%
Catastrophe losses	0.4	%	21.5	%	6.7	%	6.3	%	N/M		0.2	%	44.1	%	4.7	%	20.6	%	N/M	10.9	%
Loss adjustment expenses	8.9	%	8.6	%	2.9	%	8.7	%	12.0	%	7.0	%	12.7	%	16.4	%	11.6	%	N/M	9.7	%
Policy acquisition and other underwriting expenses							27.8	%									37.7	%	N/M	31.0	%
Policyholders’ dividends							—										(0.3	)%	N/M	(0.1	)%
Combined							95.8	%									117.0	%	N/M	102.9	%

24

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

STATUTORY UNDERWRITING RATIOS

	Nine Months ended September 30, 2005
	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	60.7	%	43.1	%	35.4	%	55.1	%	82.1	%	50.1	%	43.9	%	33.3	%	50.1	%	N/M	53.4	%
Catastrophe losses	0.6	%	29.8	%	4.2	%	8.9	%	N/M		0.2	%	55.1	%	5.6	%	24.5	%	N/M	14.5	%
Loss adjustment expenses	10.7	%	7.0	%	3.1	%	9.5	%	11.0	%	8.5	%	11.2	%	7.9	%	10.0	%	N/M	9.7	%
Policy acquisition and other underwriting expenses							27.6	%									36.4	%	N/M	30.9	%
Policyholders’ dividends							—										0.1	%	N/M	—
Combined							101.1	%									121.1	%	N/M	108.5	%
	Nine Months ended September 30, 2004
	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	63.7	%	44.2	%	53.1	%	58.2	%	79.2	%	48.3	%	40.6	%	45.6	%	49.9	%	N/M	55.7	%
Catastrophe losses	0.2	%	15.5	%	4.4	%	4.4	%	N/M		0.1	%	19.2	%	0.9	%	8.7	%	N/M	5.8	%
Loss adjustment expenses	9.3	%	7.0	%	5.0	%	8.5	%	12.2	%	6.4	%	11.8	%	7.0	%	9.9	%	N/M	9.0	%
Policy acquisition and other underwriting expenses							27.9	%									37.3	%	N/M	31.1	%
Policyholders’ dividends							—										—		N/M	—
Combined							99.0	%									105.8	%	N/M	101.6	%

25

ALLMERICA FINANCIAL CORPORATION

PROPERTY AND CASUALTY

GAAP UNDERWRITING RATIOS EXCLUDING REINSTATEMENT PREMIUM

	Nine Months ended September 30, 2005
	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	60.5	%	41.2	%	34.1	%	54.1	%	82.1	%	50.0	%	42.6	%	32.6	%	49.3	%	N/M	52.6	%
Catastrophe losses	0.6	%	28.5	%	4.0	%	8.8	%	N/M		0.2	%	53.5	%	5.5	%	24.1	%	N/M	14.2	%
Loss adjustment expenses	10.7	%	6.7	%	3.0	%	9.3	%	11.0	%	8.4	%	10.9	%	7.7	%	9.8	%	N/M	9.5	%
Policy acquisition and other underwriting expenses							27.1	%									35.8	%	N/M	30.4	%
Policyholders’ dividends							—										0.1	%	N/M	—
Combined							99.3	%									119.1	%	N/M	106.7	%
	Nine Months ended September 30, 2004
	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	63.7	%	44.2	%	53.1	%	58.2	%	79.2	%	48.3	%	40.6	%	45.6	%	49.9	%	N/M	55.7	%
Catastrophe losses	0.2	%	15.5	%	4.4	%	4.4	%	N/M		0.1	%	19.2	%	0.9	%	8.7	%	N/M	5.8	%
Loss adjustment expenses	9.3	%	7.0	%	5.0	%	8.5	%	12.2	%	6.4	%	11.8	%	7.0	%	9.9	%	N/M	9.0	%
Policy acquisition and other underwriting expenses							27.9	%									37.3	%	N/M	31.1	%
Policyholders’ dividends							—										—		N/M	—
Combined							99.0	%									105.8	%	N/M	101.6	%

26

Historical Highlights

ALLMERICA FINANCIAL CORPORATION

HISTORICAL FINANCIAL HIGHLIGHTS

(In millions, except per share data)	Q3 05			Q2 05			Q1 05			2004			Q4 04			Q3 04			Q2 04			Q1 04
SEGMENT INCOME (1)
Property and Casualty
Personal Lines	$	(27.8	)	$	57.4		$	39.2		$	134.6		$	45.9		$	42.1		$	35.8		$	10.8
Commercial Lines		(101.0	)		31.0			20.5			58.0			26.0			(7.1	)		12.6			26.5
Other Property and Casualty		1.1			1.7			2.1			5.4			1.7			1.7			0.7			1.3
Total Property and Casualty		(127.7	)		90.1			61.8			198.0			73.6			36.7			49.1			38.6
Life Companies		(0.9	)		(7.5	)		(9.3	)		(22.3	)		(8.7	)		(2.1	)		(6.9	)		(4.6	)
Interest expense on corporate debt		(10.0	)		(9.9	)		(10.0	)		(39.9	)		(10.0	)		(10.0	)		(9.9	)		(10.0	)
Total segment (loss) income before federal income taxes	$	(138.6	)	$	72.7		$	42.5		$	135.8		$	54.9		$	24.6		$	32.3		$	24.0
Federal income tax benefit (expense) on segment income		29.6			(19.5	)		(9.8	)		(26.6	)		(12.6	)		(4.5	)		(6.3	)		(3.2	)
Total segment (loss) income after federal income taxes	$	(109.0	)	$	53.2		$	32.7		$	109.2		$	42.3		$	20.1		$	26.0		$	20.8
Change in prior years tax reserves		—			2.3			—			—			—			—			—			—
Federal income tax settlement		—			—			—			30.4			0.1			—			0.2			30.1
Net realized investment gains (losses), net of amortization and taxes		3.7			2.0			8.2			10.5			2.2			(4.1	)		4.3			8.1
(Losses) gains from retirement of funding agreements and trust instruments supported by funding obligations, net of taxes		—			—			—			(0.1	)		0.1			1.9			—			(2.1	)
Gains (losses) on derivative instruments, net of taxes		0.1			(0.2	)		(0.1	)		0.8			0.5			0.1			0.2			—
Restructuring costs, net of taxes		(0.2	)		(0.2	)		(0.4	)		(5.5	)		(1.7	)		(0.2	)		(1.5	)		(2.1	)
(Loss) income from continuing operations		(105.4	)		57.1			40.4			145.3			43.5			17.8			29.2			54.8
Income (loss) from discontinued variable life and annuity business, net of taxes		17.6			14.9			6.1			37.2			19.6			(0.1	)		3.2			14.5
Loss on disposal of variable life and annuity business, net of taxes		(474.6	)		—			—			—			—			—			—			—
(Loss) income before cumulative effect of accounting change		(562.4	)		72.0			46.5			182.5			63.1			17.7			32.4			69.3
Cumulative effect of change in accounting principle, net of taxes		—			—			—			(57.2	)		—			—			—			(57.2	)
NET (LOSS) INCOME	$	(562.4	)	$	72.0		$	46.5		$	125.3		$	63.1		$	17.7		$	32.4		$	12.1
PER SHARE DATA (DILUTED)
(LOSS) INCOME FROM CONTINUING OPERATIONS	$	(1.97	)	$	1.06		$	0.75		$	2.71		$	0.81		$	0.33		$	0.54		$	1.02
(LOSS) INCOME DISCONTINUED OPERATIONS NET OF TAXES	$	(8.54	)	$	0.28		$	0.11		$	0.69		$	0.37		$	—		$	0.06		$	0.27
NET (LOSS) INCOME	$	(10.51	)	$	1.34		$	0.86		$	2.34		$	1.18		$	0.33		$	0.60		$	0.23
WEIGHTED AVERAGE SHARES OUTSTANDING (DILUTED) (2)		53.5			53.9			53.8			53.7			53.7			53.6			53.7			53.7
BALANCE SHEET
Total investments	$	7,535.0		$	7,678.4		$	7,663.9					$	8,265.7		$	8,253.1		$	8,091.3		$	8,239.5
Separate account assets	$	9,385.9		$	9,444.6		$	9,726.0					$	10,455.0		$	10,086.0		$	10,740.3		$	11,304.9
Total assets	$	21,647.1		$	21,846.6		$	22,167.8					$	23,719.2		$	23,448.9		$	24,030.5		$	24,763.9
Total shareholders’ equity	$	1,867.7		$	2,490.5		$	2,325.2					$	2,339.5		$	2,294.2		$	2,207.2		$	2,289.3
Book value per share	$	34.81		$	46.60		$	43.53					$	43.91		$	43.09		$	41.48		$	43.04
Book value per share, excluding accumulated other comprehensive income	$	35.47		$	46.01		$	44.67					$	43.85		$	42.69		$	42.36		$	41.77

(1) Represents income or loss of the Company’s operating segments: Personal Lines, Commercial Lines, Other Property and Casualty, Life Companies and interest expense on 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) Weighted average shares outstanding for the quarter ending September 30, 2005 represents basic shares outstanding due to antidilution.

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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:

	2005
	Price Range
Quarter Ended	High		Low		Dividends Per Share
March 31	$	36.50	$	30.27	—
June 30	$	37.29	$	32.85	—
September 30	$	42.11	$	37.13	—
December 31
	2004
	Price Range
Quarter Ended	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	$	33.00	$	25.45	—

INDUSTRY RATINGS AS OF OCTOBER 25, 2005

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 Senior Debt	bbb-	BB	Ba1
Allmerica Financial Corporation Capital Securities	bb	B	Ba2
Allmerica Financial Corporation Short Term Debt	—	—	NP
First Allmerica Financial Life
Insurance Company Short Term
Insurance Financial Strength Rating	—	—	NP

TRANSFER AGENT

Computershare Limited

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

Debra Casey, CPA

Director, Investor Relations

(508) 855-6658

dcasey@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

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