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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


FORM 8-K

Current Report
Pursuant to
Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 31, 1998


CITIZENS CORPORATION
(Exact name of Registrant as specified in its charter)

Delaware
(State or other
jurisdic-
tion of
Incorporation)
1-11714

(Commission File
Number)

04-3178765

(I.R.S. Employer
I.D. Number)


440 Lincoln Street, Worcester, Massachusetts 01653
(Address of Principal Executive Offices)

(Zip Code)

(508) 855-1000
(Registrant's Telephone Number including area code)

Page 1 of 5 pages
Exhibit Index on page 4

Item 5. Other Events.

On July 31, 1998, Citizens Corporation announced that the third quarter results will be impacted by an estimated $6.8 million in pre- tax catastrophe losses as a result of electrical, rain and wind storms that struck the Detroit, Michigan metropolitan area on July 22, 1998. A copy of the press release is attached as Exhibit 99 and is incorporated by reference herein.

Item 7. Financial Statements and Exhibits.

Exhibit 99 Press Release dated July 31, 1998, announcing Citizens Corporation expects $6.8 million charge in third quarter for July catastrophe losses.

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CITIZENS

CORPORATION

                                   By: /s/  Edward J. Parry  III
                                      --------------------------
                                      Edward J. Parry III
                                      Vice President, Chief Financial
Officer, and Treasurer


Date:  July 31, 1998

Exhibit Index

Exhibit 99 Press Release dated July 31 1998, announcing Citizens Corporation expects $6.8 million charge in third quarter for July catastrophe losses.

EXHIBIT 99

CITIZENS CORPORATION, ALLMERICA FINANCIAL
EXPECT THIRD QUARTER STORM CHARGES

WORCESTER, Mass., July 31, 1998 - Citizens Corporation (NYSE: CZC) announced today that it expects to incur approximately $6.8 million in pretax catastrophe losses in the third quarter as a result of electrical, rain and wind storms that struck the metropolitan Detroit, Michigan and Northern Illinois areas on July 22. Allmerica Financial Corporation (NYSE: AFC), which owns 82 percent of Citizens, expects to incur $5.6 million in pretax catastrophe losses form the event.

This expected charge at Citizens compares to $9.1 million of catastrophe losses reported in the third quarter of 1997, during which Citizens also incurred unusually high storm-related losses.

Citizens Corporation is the holding company for Citizens Insurance Company of America, a leading underwriter of personal and commercial property and casualty insurance in the Midwest. Citizens is a subsidiary of Allmerica Financial Corporation (NYSE: AFC), the holding company for a diversified group of insurance and financial services companies based in Worcester, Mass.

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7/31/98

Contacts: Investors:                         Media:
         Jean Peters                    Mike Buckley
         (508)855-3599                  (508)855-3099