ALFA CORPORATION REPORTS RECORD 2004 RESULTS
Montgomery, Alabama (February 9, 2005) -- Alfa Corporation (Nasdaq/NM:ALFA) today announced record financial results for the year ended December 31, 2004. Operating income for the year was a record $84,863,334, or $1.05 per diluted share, compared with operating income of $74,397,596, or $0.93 per diluted share for 2003, an increase of 13.9% on a per share basis. Net income, which includes net realized investment gains, was a record $89,444,959, or $1.11 per diluted share for 2004, compared with $78,468,948, or $0.98 per diluted share in 2003, a per share increase of 13.8%. Premiums and policy charges for 2004 increased 6.9% to $561,356,040.
Operating income for the fourth quarter of 2004 was $21,479,250, or $0.27 per diluted share, compared with fourth quarter 2003 operating income of $20,418,133, or $0.25 per diluted share. After net realized investment gains, net income for the fourth quarter of 2004 was $22,681,694, or $0.28 per diluted share, compared with $21,780,443, or $0.27 per diluted share, in the prior-year period. Premium revenue for the final three months of 2004 increased 6.0% to $141,935,932.
Alfa's Chairman, President and Chief Executive Officer, Jerry A. Newby, said, "We are very pleased with our 2004 results. Once again we have produced a record year, with a 14% increase in net income. Even though the storms in 2004 created a great deal of extra work for our entire organization, our team did not lose focus. We have excelled in servicing our policyholders and, at the same time, delivered outstanding financial results. As I look forward, I am excited about the addition of Alfa Vision, our new nonstandard automobile company, which will add insurance production in nine new states. We expect this new company, together with the addition of Alfa Virginia Mutual to our inter-company pooling agreement, will substantially increase Alfa's geographic reach and enhance our growth potential in the coming years."
Alfa Corporation will host a conference call today at 10:30 a.m. Eastern time. Investors and other interested parties may access the teleconference by calling 1-800-289-0518, or via links located on Alfa's web site: www.alfains.com. A 30-day Internet play of the call will also be available from Alfa's 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.
For unaudited quarterly financial statements for the fourth quarter and year ended December 31, 2004 and 2003, along with additional information, click here.
Click here for a table of Alfa Corporation Financial Highlights