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October 20, 2005   Email to Friend 

ALFA CORPORATION REPORTS THIRD QUARTER RESULTS
Steve Rutledge
(334) 613-4500
October 20, 2005

MONTGOMERY, Ala.-- Alfa Corporation (Nasdaq/NM:ALFA) today announced financial results for the third quarter and nine months ended September 30, 2005.

Operating income for the third quarter was $24,219,493, or $0.30 per diluted share, compared with operating income of $19,542,970, or $0.24 per diluted share, for the third quarter of 2004, an increase of 23.5% on a per share basis.

Net income, which includes net realized investment gains, was $25,102,904, or $0.31 per diluted share, for the third quarter of 2005, compared with net income of $20,720,248, or $0.26 per diluted share, for the same period in 2004, a per share increase of 20.7%. Premiums and policy charges increased 15.0% to $160,887,004 for the third quarter of 2005.

For the nine months ended September 30, 2005, operating income was $72,396,566 compared with operating income of $63,384,085 for the first nine months of 2004. On a per share basis, operating income increased 14.1% to $0.90 per diluted share for the nine-month period in 2005 compared with $0.79 per diluted share for the same period in 2004. Net income, which includes net realized investment gains, was $75,228,407, or $0.93 per diluted share, for the first nine months of 2005, compared with net income of $66,763,266, or $0.83 per diluted share, for the same period in 2004, a per share increase of 12.5%. Premiums and policy charges increased 13.0% to $470,163,960 for the first nine months of 2005.

Commenting on the results, Alfa's Chairman, President and Chief Executive Officer, Jerry A. Newby, said, "I am pleased with the results of another solid quarter. Our operating performance was driven by the property and casualty combined ratio, as well as the premium growth in our life company. This was accomplished at the same time our employees and policyholders were dealing with the impact of another large storm in the Gulf Coast region.

"In the aftermath of Hurricane Katrina, Alfa employees showed their concern for the many families affected by this immense storm by donating their resources and their time volunteering in many of the recovery efforts. In addition, our companies have responded to the tremendous devastation in western Alabama and in Mississippi by contributing to relief efforts and by moving as quickly as possible to service our policyholders. Our dedicated claims, marketing and operations staffs have settled claims extremely fast and efficiently so that our policyholders could begin to rebuild. I am proud of our employees, who have volunteered and contributed so much to the many agencies helping with disaster relief. "As we approach year-end," Newby added, "we are excited about the roll-out of our new property-casualty policy administrative system that now is in operation in Mississippi. This is going to make doing business with Alfa easier then ever before. Our goal with this improvement, as always, is to be the best provider of personal line products to families -- wherever we do business."

Alfa Corporation will host a conference call today at 10:30 am. Eastern time. Investors and other interested parties may access the teleconference by calling 800-289-0518, or via links located on Alfa's web site: www.alfains.com. A 30-day Internet replay 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.

The associated investor supplement package for the third quarter and nine months ended September 30, 2005, may be found by clicking on the web cast link in the "Invest in Alfa" section of Alfa's web site and is also available at: http://www.irinfo.com/alfa/3q05fsx.pdf.

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 Corp.'s filings with the Securities and Exchange Commission.


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