NU Online News Service, Feb. 4, 11:10 a.m. – Allmerica Financial Corp., Worcester , Mass., is reporting $15 million in net income for the fourth quarter of 2002 on $917 million in revenue, up from a net loss of $71 million on $818 million in revenue for the fourth quarter of 2001.

Net results for the latest quarter include $46 million in investment losses and a $67 million gain from paying off some debts early.

Allmerica sells financial services and asset management services along with property-casualty insurance.

Financial services: A $700,000 operating loss for the latest quarter on $231 million in revenue, compared with $22 million in operating income on $197 million in revenue. Because of ratings downgrades late in the third quarter, individual annuity surrenders increased to $1.2 billion in the fourth quarter, from $427 million in the third quarter. That helped boost operating income by increasing revenue from surrender fees, but amortization of deferred policy acquisition costs was also up, Allmerica says.

Asset management: $8.5 million in operating income on $262 million in revenue, up from $4.2 million in operating income on $230 million in revenue. Favorable movements in interest rates and currency exchange rates helped asset management earnings, Allmerica says.