Exhibit 1

ALLMERICA FINANCIAL CORPORATION COMPLETES $300 MILLION
OFFERING OF TRUST-ORIGINATED CAPITAL SECURITIES

WORCESTER, Mass., February 3, 1997 - Allmerica Financial Corporation (NYSE:AFC)
announced the sale of $300 million of Capital Securities issued by AFC Capital
Trust I, a newly-created subsidiary business trust of Allmerica Financial. Each
Capital Security will pay cumulative cash distributions at an annual rate of
8.207 percent of the stated $1,000 liquidation amount per security, payable 
semi-annually commencing August 15, 1997. The Capital Securities are guaranteed
by Allmerica Financial.

Proceeds from the offering of approximately $296.3 million, after commissions
and other associated costs, are intended to fund a portion of Allmerica
Financial's proposed acquisition of the 24.2 million, publicly-held shares of
its 59.5%-held subsidiary, Allmerica Property & Casualty Companies, Inc.
(NYSE:APY).  No agreement on the proposed acquisition has been reached. In the
event the proposed acquisition does not occur, the proceeds will be used for
working capital and other corporate purposes.

The Capital Securities were sold in a private placement to qualified
institutional buyers, and have not been registered under the Securities Act of
1993, as amended, and may not be offered or sold in the United States absent
registration under, or an applicable exemption from the registration
requirements of the Securities Act and applicable state securities laws. The
issue was managed by Merrill Lynch & Co., and Morgan Stanley & Co.

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.

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