EXHIBIT 2
ALLMERICA FINANCIAL CORPORATION,
ALLMERICA PROPERTY & CASUALTY COMPANIES, INC.
ANNOUNCE DEFINITIVE MERGER AGREEMENT

Worcester, Mass., February 19, 1997 -- Allmerica Financial Corporation
(NYSE:AFC) and Allmerica Property & Casualty Companies, Inc. (NYSE:APY)
announced the signing of a definitive merger agreement in which Allmerica
Financial will acquire the 40.5% of Allmerica P&C, or 24.2 million
shares, that it is does not already own, for approximately $800 million, or
$33.00 per share.

"Allmerica P&C is vital to our success, and remains central to our core strategy
of offering clients a range of financial security and insurance protection
products," said John F. O'Brien, chief executive officer at Allmerica Financial
Corporation. "This combination allows Allmerica Financial to allocate capital
more flexibly among operations, and will enable us to further focus attention on
enhancing long-term shareholder value."

Under the terms of the transaction, shareholders of Allmerica P&C will have the
right to receive $17.60 in cash and 0.40 shares of Allmerica Financial common
stock in exchange for each share of Allmerica P&C. However, if Allmerica
Financial's 10-day average closing stock price prior to the consummation of the
merger falls below $36.00 per share or increases above $41.00 per share, the
cash component of the merger consideration will be adjusted so that the value
received by Allmerica P&C shareholders in the exchange is no less than $32.00
per share and no greater than $34.00 per share. Additionally, in lieu of
receiving the specified combination of cash and stock, shareholders of Allmerica
P&C may elect to receive consideration either entirely in the form of cash or
entirely in common shares of Allmerica Financial. However, these elections will
be limited by aggregate amounts of Allmerica Financial common stock and cash
issuable in the merger. An aggregate of approximately 9.67 million shares of
Allmerica Financial common stock will be issued to Allmerica P&C shareholders in
the merger transaction.

Consummation of the merger is subject to customary terms and conditions,
including review by insurance regulators and the Securities and Exchange
Commission, and is expected to be completed by the third quarter of 1997.

Allmerica Financial Corporation, headquartered in Worcester, Mass., is the
holding company for a diversified group of insurance and financial services
companies with total assets of $19 billion. Allmerica Financial markets
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 network.


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