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Allmerica Reports Lower Net Income

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NU Online News Service, Oct. 29, 5:06 p.m. – Allmerica Financial Corp., Worcester, Mass., is reporting $31 million in net income for the third quarter on $852 million in revenue, compared with $62 million in net income on $816 million in revenue for the third quarter of 2000.

The company sells annuities, variable universal life insurance and universal life insurance as well as property-casualty insurance.

Stock market turmoil hurt the performance of the financial services business.

The units that make up the business, Allmerica Financial Services and Allmerica Asset Management, brought in $40 million in net operating income for the quarter on $242 million in operating revenue, down from $63 million in net operating income on $258 million in operating revenue.

“In spite of the equity markets’ weakness, our strategy for this business remains unchanged,” John O’Brien, president of Allmerica, said in a statement accompanying the latest earnings release. “We are continuing to invest for the future by expanding our distribution capability, enhancing our technology base, and introducing new products.”