Allmerica Reports Lower Second Quarter Net Income

By Staff Writer

July 31, 2001 at 08:00 PM

Share & Print

NU Online News Service, July 31, 2:14 p.m. – Allmerica Financial Corp., Worcester, Mass., is reporting $13 million in net income for the second quarter on $863 million in revenue, compared with $48 million in net income on $828 million in revenue for the second quarter of 2000.

Operating income from continuing operations, which excludes $67 million in losses on investments sold during the quarter, fell 21%, to $59 million.

Allmerica sells asset accumulation products and property-casualty insurance. The asset accumulation unit earned $47 million in the second quarter on $246 million in revenue, compared with $60 million in operating income on $248 million in revenue for the second quarter of 2000.

Shrinkage in average variable annuity asset levels cost the company some fee income, the company says. Variable product separate account assets ended the quarter at $16.1 billion, down 9.6% from the asset total for June 30, 2000.

But sales of new individual variable annuities actually increased, to $809 million, from $805 million, Allmerica says.

Although Allmerica continued to suffer from the effects of the recent stock market slump in the second quarter, the market looked much better in the second quarter than it did during the first quarter, the company says.

NOT FOR REPRINT