Allmerica Financial Highlights
Allmerica Financial conducts business in four operating segments. Property and Casualty operations consist of three operating segments: Personal Lines, Commercial Lines, and Other Property and Casualty. The Personal Lines segment markets automobile, homeowners and ancillary coverages to individuals and families on a regional basis through The Hanover Insurance Company and Citizens Insurance Company of America. The Commercial Lines segment offers a suite of products targeted at the small to mid-size business markets, which include commercial multiple peril, commercial automobile, workers’ compensation and other commercial coverages. The Other Property and Casualty segment includes a block of run-off voluntary pools business in which we have not actively participated since 1995; AMGRO, Inc., a premium financing business; Opus Investment Management, Inc., which provides investment management services to institutions, pension funds, and other organizations; and earnings on holding company assets. The Life Companies, our fourth operating segment, includes the results of our run-off business of life and annuity products and guaranteed investment products.
Net Income (Loss)
Total Revenues
Adjusted Book Value Per Share(3) (as of December 31)
Financial Highlights
| Years Ended
December 31 (In millions, except per share information and ratios) |
2004 | 2003 | 2002 |
|---|---|---|---|
| Income Statement | |||
| Premiums | $2,289 | $2,282 | $2,320 |
| Fees and other income | 379 | 502 | 569 |
| Net investment income | 414 | 456 | 590 |
| Net realized investment gains (losses) | 29 | 24 | (162) |
| Total revenues | 3,111 | 3,264 | 3,317 |
| Net segment income (loss)(1) | 141 | 92 | (275) |
| Net income (loss) | 125 | 87 | (306) |
Statutory combined ratio, including policyholder dividends |
100.9% | 104.0% | 103.1% |
| Per Share (Diluted) (2) | |||
| Net income (loss) | 2.34 | 1.63 | (5.79) |
| Book value | 43.91 | 41.89 | 39.12 |
| Adjusted book value(3) | 43.85 | 41.59 | 39.83 |
| Market value(4) | 32.83 | 30.77 | 10.10 |
| Shares Outstanding | |||
| Weighted average shares outstanding for the full year(2) | 53.7 | 53.2 | 52.9 |
| Shares outstanding at December 31 | 53.2 | 53.0 | 52.9 |
| Balance Sheet | |||
| Total investments | 8,266 | 8,186 | 8,807 |
| Separate account assets | 10,455 | 11,835 | 12,343 |
| Total assets | 23,719 | 25,510 | 26,627 |
| Total liabilities | 21,379 | 23,290 | 24,255 |
| Minority interest | – | – | 300 |
| Shareholders' equity | 2,340 | 2,220 | 2,072 |
(1) Represents after-tax income or loss of the Company’s four operating segments: Personal Lines, Commercial Lines, Other Property and Casualty and Life Companies. In accordance with Statement of Financial Accounting Standards No.131, the separate financial information of each segment is presented consistent with the manner in which results are regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Net segment income excludes realized gains and losses, restructuring charges and other items, the details of which are included on page 23 in the attached Annual Report on Form 10-K.
(2) Weighted average shares outstanding and per share data for the year ended December 31, 2002 represents basic loss per share due to antidilution.
(3) Excludes accumulated other comprehensive income.
(4) Closing price on NYSE on last day of trading in each year.
