EXHIBIT 2
                                                                                
ALLMERICA FINANCIAL CORPORATION
OFFERS $29.00 PER SHARE FOR
ALLMERICA PROPERTY & CASUALTY COMPANIES, INC.

WORCESTER, Mass., December 17, 1996 -- Allmerica Financial Corporation (NYSE:
AFC) today announced that it has made a proposal to acquire the 24.2 million
shares of Allmerica Property & Casualty Companies, Inc. (NYSE: APY) that it does
not already own for cash and stock consideraton valued at approximately $700
million.  Under the proposed terms of the merger transaction, shareholders of
Allmerica P&C would receive $16.59 in cash and 0.385 shares of Allmerica
Financial common stock in exchange for each share of Allmerica P&C.
Alternatively, shareholders of Allmerica P&C may choose all cash or all stock as
consideration, subject to limitations on aggregate amounts of stock and cash
available to be issued in the transaction.  The value of the proposed merger
consideration is $29.00 per share, based on the 30-day average closing price for
Allmerica Financial common stock.

Allmerica Financial currently owns approximately 35.5 million shares of the
common stock of Allmerica P&C, or 59.5 percent of the outstanding shares of the
company.  On December 16, 1996, the closing price of Allmerica P&C's common
stock was $28.50 per share.

A special committee of the independent directors of Allmerica P&C has been
appointed to evaluate the proposal.  Consummation of the proposed transaction is
dependent upon the negotiation of a definitive agreement.

Allmerica Financial, headquartered in Worcester, Mass., is the holding company
for a diversified group of insurance and financial services companies with total
assets of $19 billion.  The Allmerica Financial companies market insurance and
retirement savings products, as well as group benefit programs, to individual
and institutional clients.  Through Allmerica P&C, Allmerica Financial offers
property and casualty insurance products nationally through an independent agent
distribution.

Allmerica P&C is among the top 30 property and casualty insurers in the United
States, based on net written premium.  Allmerica P&C is regionally-focused in
the Northeast and Michigan, and operates through two primary subsidiaries, The
Hanover Insurance Company, and Citizens Corporation (NYSE: CZC).

CONTACTS

Investors                               Media
- ---------                               -----
Jean Peters                             Michael F. Buckley
Vice President, Investor Relations      Director, Public Information
(508) 855-3599                          (508) 855-3099

AF-46
12/17/96