Exhibit 99.1

                         ALLMERICA FINANCIAL CORPORATION
                ANNOUNCES ESTIMATED LOSSES FROM HURRICANE KATRINA

WORCESTER, Mass., October 18, 2005 - Allmerica Financial Corporation (NYSE: AFC)
announced today that its estimated after-tax loss from Hurricane Katrina will be
approximately  $140  million,  or $2.62 per share.  The  after-tax  loss of $140
million is net of reinsurance and includes the cost of reinsurance reinstatement
premiums,  loss  adjustment  expense,  as well as an estimate for the  Louisiana
Citizens Fair Plan assessment.

Allmerica  estimates  its gross  direct loss and loss  adjustment  expense  from
Hurricane  Katrina to be $485  million,  with  approximately  two-thirds  of the
losses  sustained in its commercial  lines business and one-third  attributed to
its personal lines business.

Allmerica's loss estimate for Hurricane  Katrina was developed using an analysis
of the  claims  reported  to date and  estimated  values  of  properties  in the
affected  areas.  Wind-speed  data,  flood  maps  and  information  provided  by
on-the-ground  staff and independent  adjusters were used to project anticipated
claims  and damage  projections.  Anticipated  costs for demand  surge were also
included  in  the  estimate.   However,  estimating  losses  following  a  major
catastrophe is an inherently uncertain process,  which is made more difficult by
the  unprecedented  nature of this event.  Factors that add to the complexity in
this event include the legal and regulatory uncertainty, difficulty in accessing
portions of the affected  areas,  the complexity of factors  contributing to the
losses, delays in claim reporting,  the exacerbating  circumstances of Hurricane
Rita and a slower pace of recovery resulting from the extent of damage sustained
in the affected areas. As a result, there can be no assurance that the company's
ultimate costs  associated with this event will not be  substantially  different
from these estimates.

"The damage and devastation caused by Hurricane Katrina has placed unprecedented
demands on our industry and our  company,"  said Fred  Eppinger,  President  and
Chief Executive Officer of Allmerica Financial  Corporation.  " At Hanover,  our
people have  worked  tirelessly  in  response,  taking  reports,  assessing  and
settling claims,  and at times, just listening and providing  comfort.  They are
committed to do what it takes to serve our agents and their customers."

Allmerica's  third quarter  results also will be impacted by Hurricane Rita. The
company estimates its losses from Hurricane Rita to be approximately $30 million
on a pre-tax basis and $19.5 million after taxes, or $0.37 per share.

Eligible losses resulting from Hurricanes Katrina and Rita,  together with other
catastrophe  losses  incurred to date, puts the company's  eligible  catastrophe
losses at the maximum  retention level such that losses from other  catastrophic
events occurring in 2005 will be subject to its aggregate  reinsurance  program.
Under this  program,  the company is  protected  against  multiple  catastrophes
within a 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 the $80  million  retention,  individual  events  are capped at $30
million. The company retains 10% of the risk on the $50 million coverage.

With the payment of the reinstatement premium, the company will also continue to
maintain a property  catastrophe  occurrence  treaty which serves to protect the
company from other  significant  aggregate  losses arising in 2005 from a single
event, as in Hurricane Katrina. The catastrophe  occurrence treaty provides $365
million of reinsurance  coverage in excess of $45 million of losses. The company
retains approximately 15% of the risk on the $365 million coverage.

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Allmerica Financial  Corporation expects to announce its third quarter financial
results  on  Tuesday,  October  25,  2005  with a  conference  call to follow on
Wednesday, October 26, 2005.

The company's  estimate of gross and net losses from Hurricanes Katrina and Rita
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 Allmerica  with the  Securities and
Exchange  Commission  and which are also  available at  www.allmerica.com  under
"Investor Relations".

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
                      smutalik@allmerica.com             mibuckley@allmerica.com


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