ALFA CORPORATION REPORTS FIRST QUARTER 2001 RESULTS
"Montgomery, Ala." Alfa Corporation (Nasdaq/NM:ALFA) today announced financial results for the three months ended March 31, 2001. Operating income for the quarter was $13,912,372, or $0.35 per diluted share, compared with operating income of $15,787,298, or $0.40 per diluted share for the first quarter of 2000, a decrease of 11.4 percent on a per-share basis.
First quarter 2001 results were reduced by approximately $4.8 million, after tax, or $0.12 per diluted share, due to previously reported storm losses. Net income, which includes net realized investment gains, was $14,333,676, or $0.36 per diluted share for the first quarter of 2001, compared with $16,350,175, or $0.41 per diluted share for the first quarter of 2000, a decrease of 11.8%. Premium revenue for the first quarter of 2001 increased 6.1 percent to $111,904,154.
Alfa's Chairman, President and Chief Executive Officer, Jerry A. Newby, said, "The amount of storm activity in the first three months made this a difficult quarter. We were pleased, however, that despite this level of storm activity, shareholders' equity increased more than $11.2 million for the quarter. In addition, our life insurance operations reported another solid quarter of growth with premiums up 8.0 percent and operating income up 19.3 percent."
Alfa Corporation will host a conference call April 25 at 10:30 a.m. Eastern time. Investors and other interested parties may access the teleconference by calling 800-289-0493, or via links located on the Alfa Insurance web site: www.alfains.com. A 30-day Internet replay of the call will also be available from the web site.
Alfa Corporation is engaged in insurance and financial activities through its subsidiaries. The common stock of Alfa Corporation is traded on the Nasdaq Stock Market's National Market under the symbol ALFA.
Investors are cautioned that statements in this press release which relate to the future are, by their nature, uncertain and dependent upon numerous contingencies - including political, economic, regulatory, climatic, competitive, legal, and technological - any of which could cause actual results and events to differ materially from those indicated in such forward-looking statements. Additional information regarding these and other risk factors and uncertainties may be found in Alfa Corporation's filings with the Securities and Exchange Commission.