Smith Barney Citigroup Small & Mid-Cap Conference May 6, 2004 Allmerica Financial Corporation Ed Parry Executive Vice President Chief Financial Officer

Allmerica Financial Corporation Forward Looking Statement Certain statements in this presentation may contain, “forward looking statements” as defined in the Private Securities Litigation Reform Act of Use of the words “believes”, “anticipates”, “expects” and similar expressions is intended to identify forward looking statements. In particular, this presentation may include forward looking statements with respect to earnings growth, return on equity, anticipated price increases in our P&C business, growth, expense management and improved underwriting. 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. These uncertainties include the possibility of adverse catastrophe experience and severe weather, adverse loss development and adverse trends in mortality and morbidity, changes in the stock and financial markets, changes from assumed surrender activities and assumed stock market returns, adverse selection in underwriting activities and surrender patterns, investment impairments, heightened competition, adverse state and federal legislation or regulation, financial ratings actions, and various other factors, which include the effect of the Company’s decision to close its retail broker-dealer operations as well as the anticipated impact and cost of the GMDB hedging program. The performance of the hedging program is dependent on, among other things, the future performance and volatility of the equity market, the extent to which the performance of the various hedging instruments correlate with the investment performance of the underlying annuity sub-accounts, the continued availability of equity index futures and redemption and mortality patterns in the Company’s annuity contracts. The discussion in this presentation includes financial measures that are not derived from generally accepted accounting principles, or GAAP. Information regarding these non-GAAP financial measures is available in the Investor Relations section of the Allmerica website at

Who We Are Fortune 500: Market Capitalization of $1.9B Regional Property and Casualty Company 30 th Largest Property and Casualty Insurer Over $2 billion in Written Premium Partnerships with 1,850 Local Agencies in 25 States – Northeast and Michigan Focus Hanover & Citizens Brand Names Over 150 Years in the Business A.M. Best Rating of A- [Excellent] Life Companies Closed Block of Business Consisting Primarily of Variable Annuities $14B in Assets $120 Million in Annual Operating Cash Flow A.M. Best “Secure” Rating of B+ [Very Good]

Who We Are in Numbers 2003 Revenue2003 Pre-tax Segment Income* 2003 Net Income: $87m EPS: $1.63 * Excludes Corporate Debt 24% 76% 7% 93%

Who We Are in Numbers Life and P&C Equity $2.8B Debt (0.5B) Total GAAP Equity $2.3B 43% 57% 3/31/04 Life Company RBC = 420% $1,555 $1,312 $1,218 GAAP EquityStatutory Surplus $1,619

Allmerica Financial Corporation 2003 Property and Casualty Business Mix 68% Personal Lines - Short-tail Liabilities 32% Commercial Lines - Predominately “Main Street” Small Commercial < $10k $10k < $25k $25k-$50k $50k-$100k > $100k 22% 13% 9% 10% 46% Commercial Lines by Size 81% in Policies < $50K 2/3 of Accounts < $75K $2.2B Total Net Written Premium

Personal Lines 2004 Priorities Agency Partnerships Product & Underwriting Responsive Service Delivery Identify and Grow with Key Agents Aggressively Manage Underperforming Agents Accelerate Deployment of POS Introduce Pre-Fill Achieve Adequate Pricing Levels Continue Implementation of Rate Tiering Shift Geographic Mix of Business Improve MA Auto Results Margin Improvement Drive Earnings Growth

Commercial Lines 2004 Priorities Improve Renewal Retention Enhance New Business Mix Tiered Pricing Strategies Agency Partnerships Product & Underwriting Responsive Service Delivery Lock in Strategic Partnerships with Winning Commercial Lines Agencies Refine small commercial operating model Build the Foundation for Earnings Growth in 2005

Life Companies 2004 Priorities Maintain Expense Margins Retain Profitable Customers Manage GMDB Risk Through Hedging Create Strategies to Utilize Excess Capital Maximize Long Term Cash Flow Maximize Long Term Value Manage Volatility

Allmerica Financial Corporation Financial Performance Segment Income up 40% Solid P&C Earnings Life Earnings Better than Expected First Quarter Highlights After Tax Segment Earnings ($ in millions)

Property & Casualty Financial Performance Personal Lines: Rate Increases Lower Frequency of Losses Commercial Lines: Lower Favorable Development Premium Growth Increased Retention First Quarter Highlights ($ in millions) Pre-tax Segment Earnings

Net Operating Cash Flow Q Life Companies Financial Performance Lower Operating Expenses Favorable Equity Market Strong Positive Cash Flow $2 Q $5 ($ in millions) $42 $32 $39 $32 Q Q $40 Pre-tax Segment Earnings

Cash Flow Statutory Surplus Cash Flow Statutory Surplus GAAP Earnings GAAP Book Value Return on Equity GAAP Earnings GAAP Book Value Return on Equity AFC Performance Metrics P&C Life

2004 Financial Summary Focus on the Basics Personal Lines Margin Improvement Drives Earnings Growth Commercial Lines Building the Foundation for Growth Life Companies Maximize Cash Flow & Maintain Strong Surplus Improve ROE Improve ROE Great Start Towards Becoming a World Class P&C Company Great Start Towards Becoming a World Class P&C Company

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