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Citizens and Hanover's New 'Connections Auto' Off to Strong Start in First Wave Launch States

Market Responds to Total Account Solution, Greater Reach, Quick and Easy Policy Issuance

WORCESTER, Mass., July 14 -- The Citizens and Hanover Insurance Companies' new Connections Auto, a state-of the-art, multi- variate auto product with greater customer segmentation capabilities, is off to a strong start in its initial launch states. Connections Auto provides Citizens and Hanover's independent agent partners with substantially greater market reach, competitive pricing and a quick, easy-to-use point-of-sale solution.

"Market response has been very strong since we launched Connections Auto in our first wave states," said Marita Zuraitis, president of the Citizens and Hanover property and casualty companies. "Initial feedback from independent agents is that it is delivering the broad market reach, competitive rates and ease of doing business that they are looking for. They are also experiencing first-hand our ability to provide a broad range of competitive personal lines products that offer a total account solution -- including auto, homeowners and umbrella coverage. As a result, we have seen a significant increase in quoting and issuing activity in our first-wave states."

Connections Auto is now available to Citizens and Hanover agents in Illinois, Tennessee and Maine, and two other phases of the rollout are planned for this year; one in New York, Virginia and Indiana in August, and the other in Michigan and Florida this autumn. The rollout will continue in 2006.

"Insurance agents want business partners who can help them grow and prosper in the face of intense competition and continuing agency consolidation," said Zuraitis. "They want to work with companies that offer a broad portfolio of competitive products, so they can provide a total account solution for their customers. They also want to work with companies that leverage technology to make their agents' work easier, and that provide responsive service. Citizens and Hanover, and our new Connections Auto product, deliver."

Zuraitis adds, "Our agent partners now have broad market reach, competitive pricing and quick, easy-to-use point-of-sale technology that rivals any other carrier in the industry. They also have access to strong, local management teams and our first-call resolution service team."

With Connections Auto, Citizens and Hanover agents can quote and issue new business for 95 percent of the market, accommodating a broad spectrum of customers for all phases of their customers' lives. Risks are tiered by objective and verifiable criteria.

The product is fully supported by a streamlined, single platform point-of- sale application, making it easier and faster to use.

"Information obtained from customer applications is evaluated in real time," Zuraitis said. "Risks are quoted quickly and accurately, with tremendous differentiation based on each driver's individual characteristics and other factors, and new business policies are issued in a straight-through issuance process. Consequently, our agents can sell more business, more

quickly, often with the same company that provides their customers with homeowners, boat and umbrella coverage."

Citizens and Hanover have introduced new auto insurance discounts in combination with Connections Auto, including a discount for policies paid in full on the first installment, and a homeowner's discount, even if the homeowner's policy is with another carrier or the insured is not living in the insured residence.

About Citizens & Hanover

The Citizens and Hanover Insurance Companies are ranked among the 35 largest property and casualty insurers in the country and are members of Allmerica Financial Corporation . Worcester, Massachusetts-based The Hanover Insurance Company, founded in 1852, and Howell, Michigan-based Citizens Insurance Company of America, founded in 1915, offer a range of property and casualty insurance coverage to individuals, families and businesses through a wide network of independent agents.

  Contact Information:

   Investors:                         Media:
   Sujata Mutalik                     Michael F. Buckley
   E-mail: smutalik@allmerica.com     E-mail: mibuckley@allmerica.com
   Phone: (508) 855-3457              Phone: (508) 855-3099