ALFA CORPORATION REPORTS RECORD 2005 RESULTS
MONTGOMERY, Ala., Feb. 15 -- Alfa Corporation (Nasdaq/NM:ALFA) today announced record financial results for the year ended December 31, 2005. Operating income for the year was a record $95,100,686, or $1.18 per diluted share, compared with operating income of $84,863,334, or $1.05 per diluted share for 2004, an increase of 11.8 percent on a per share basis.
Included in 2005 results is the recognition of a deferred tax asset and subsequent charge to net income for the change in this deferred tax asset, arising from the creation of Alfa Benefits Corporation in 1999. The impact to income for this correction is $1,595,506 or $0.02 per share. Excluding this nonrecurring item operating income was $96,696,192 or $1.20 per diluted share for 2005. Net income, which includes net realized investment gains, was a record $99,033,753, or $1.23 per diluted share for 2005, compared with $89,444,959, or $1.11 per diluted share in 2004, a per share increase of 10.4 percent. Premiums and policy charges for 2005 increased 13.7% to $633,072,049.
Operating income for the fourth quarter of 2005 was $22,704,120, or $0.28 per diluted share, compared with fourth quarter 2004 operating income of $21,479,250, or $0.27 per diluted share. After net realized investment gains, net income for the fourth quarter of 2005 was $23,805,346, or $0.29 per diluted share, compared with $22,681,694, or $0.28 per diluted share, in the prior-year period. Premium revenue for the final three months of 2005 increased 15.7 percent to $162,908,090.
Alfa's Chairman, President and Chief Executive Officer, Jerry A. Newby, said, "In a year of significant challenges for the insurance industry, we are very pleased with our company's accomplishments in 2005. Our employees once again rose to the highest levels of performance when, for a second time in as many years, they were faced with the overwhelming task of servicing tens of thousands of Alfa customers whose lives were forever changed by a single force of nature.
"Their efforts helped generate strong financial performance, producing another year of record earnings. Also, the addition of our two newest companies, Alfa Vision Insurance and Alfa Virginia Mutual, to our inter-company pooling arrangement had a significant positive impact on our top line growth. We are proud of the many successes we achieved during the year, including advances in technology, new product offerings and geographical expansion," Newby said.
"As the new year unfolds, we are excited about what the future holds for our companies. Our emphasis in 2006 will remain on developing our people, building sound relationships, improving our service, and producing solid financial performance," he added.
Alfa Corporation hosted a conference call about the earnings, which will be available for 30 days on Alfa's website, www.alfains.com.
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 fourth quarter ended December 31, 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/4q05fsx.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 Corporation's filings with the Securities and Exchange Commission.
Click here for more detailed financial reports