AFC Allied Capital Corporation

WORCESTER, Mass., Nov. 30 /PRNewswire-FirstCall/ -- Allmerica Financial Corporation (NYSE:AFC), whose name and NYSE ticker symbol will change to "The Hanover Insurance Group, Inc." and "THG," respectively, effective December 1, 2005, announced estimated gross pre-tax catastrophe losses of approximately $5 million related to Hurricane Wilma. (Logo: http://www.newscom.com/cgi-bin/prnh/20051031/NEM023LOGO ) The company expects to cede all Hurricane Wilma losses to reinsurers, subject to a 10 percent co-participation, since year-to-date catastrophe losses eligible for reinsurance have exceeded the retention limit in the company's property catastrophe aggregate reinsurance treaty. This reduces the company's pre-tax estimated loss impact from Hurricane Wilma to approximately $0.5 million, net of reinsurance. The company's property catastrophe aggregate reinsurance treaty protects against multiple catastrophes within the 2005 calendar year. The treaty provides $50 million of reinsurance coverage in excess of cumulative losses in the year of approximately $80 million. For purposes of determining the $80 million retention, individual events are capped at $30 million. The company retains 10% of the risk on the $50 million coverage. Allmerica Financial Corporation expects to announce its fourth quarter financial results on Monday, January 30, 2006 with a conference call to follow on Tuesday, January 31, 2006. Certain statements in this release, including the company's estimates of pre-tax catastrophe losses, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The company cautions investors that any such forward-looking statements are estimates which involve significant judgment and actual results could differ materially. Investors should consider the risks and uncertainties in our business that may affect such estimates and future performance, including the difficulties in arriving at such estimates noted above and that are otherwise discussed in readily available documents, including the company's annual report and other documents filed by the company with the Securities and Exchange Commission and which are also available at http://www.allmerica.com/ under "Investor Relations" (or http://www.hanover.com/ under "investors"). Allmerica Financial Corporation is the holding company for a group of insurance companies headquartered in Worcester, Massachusetts. CONTACTS: Investors: Media: Sujata Mutalik Michael F. Buckley (508) 855-3457 (508) 855-3099 http://www.newscom.com/cgi-bin/prnh/20051031/NEM023LOGO http://photoarchive.ap.org/ DATASOURCE: Allmerica Financial Corporation CONTACT: Investors: Sujata Mutalik, +1-508-855-3457, , or Media: Michael F. Buckley, +1-508-855-3099, Web Site: http://www.allmerica.com/ http://www.hanover.com/

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