Allmerica Financial has outperformed consensus analyst estimates of performance for the second quarter of 2003, which were 3 cents a share, according to an earnings calendar issued by UBS. The company reported earnings of 45 cents a share, a marked increase over last year, when it had losses of $1.05 per share.

"We are pleased with our second quarter results and the further improvements in the capital position of our life insurance companies," said CFO Edward J. Parry III.

The company also reported an increase in risk based capital (RBC) to 344% from 266% at the end of last quarter and 244% at the end of 2002. The increase is largely due to improvements in equity performance.

Write-offs of deferred acquisition costs (DACs) from variable annuity sales have plagued the company and played a role in its decision to terminate sales of annuity and life insurance products. This quarter, the company wrote off another $141.9 million in DACs but still managed to report $18.4 million in income. Last year, this segment reported DACs of $137.1 million and a loss of $113.8 million.

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