ALFA CORPORATION COMMENTS ON STORM LOSSES
The Alfa Insurance Group and Alfa Corporation (Nasdaq/NM:ALFA) today commented on the effects of Hurricane Ivan. Alfa's Chairman, President and Chief Executive Officer, Jerry A. Newby, said, "Hurricane Ivan had a significant impact on certain counties in Alabama and created a large number of claims for our companies. Our strong surplus position, coupled with a substantial catastrophe reinsurance program, puts us in one of the strongest financial positions of any company in our industry. In addition to Alfa's financial strength, we take great pride in our customer service. Alfa has relocated additional adjusters from our operations in five states to focus on the areas hardest hit by Hurricane Ivan. This group of dedicated Alfa employees has spent long hours working away from their homes to handle the volume of claims created by the storm. Our primary focus is to serve our policyholders as soon as possible."
This storm created claims that are estimated to be in a range of $270 million to $325 million for the Alfa Group. The impact of these claims on Alfa Corporation's third quarter earnings, after reinsurance, taxes and reinsurance reinstatement premiums, is estimated to be approximately $0.01 per diluted share. This Alfa Corporation estimate is based on the assumption that the ultimate storm loss for the Alfa Group will remain below the upper claims estimate of $325 million.
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.