Montgomery, Alabama (February 23, 2007) -- Alfa Corp. today announced financial results for the year ended Dec. 31, 2006. Operating income for the year was $103,676,787, or $1.28 per diluted share, compared with operating income of $95,100,686, or $1.18 per diluted share for 2005, an increase of 8.3 percent on a per share basis. Net income, which includes net realized investment gains, was $105,888,237, or $1.30 per diluted share for 2006 compared with $99,033,753 or $1.23 per diluted share in 2005, a per share increase of 6.3 percent. Premiums and policy charges for 2006 increased 8.5 percent to $687,086,400.

Operating income for the fourth quarter of 2006 was $32,321,887, or $0.40 per diluted share, compared with fourth quarter 2005 operating income of $22,704,120, or $0.28 per diluted share. After net realized investment gains, net income for the fourth quarter of 2006 was $33,004,673, or $0.41 per diluted share, compared with $23,805,346, or $0.29 per diluted share, in the prior-year period. Premiums and policy charges for the final three months of 2006 increased 7.0 percent to $174,285,046.

Alfa's Chairman, President and Chief Executive Officer, Jerry A. Newby, said, "Despite the extreme competitiveness in today's insurance marketplace, Alfa Corporation has once again produced record earnings for our shareholders. Building on ten consecutive years of positive underwriting performance, this year's results were outstanding. Alfa Corporation's ten-year average combined ratio is 91.3 percent, and we ended 2006 at 90.8 percent. This consistent performance translates into greater value for our shareholders.

"We are very proud of our many accomplishments during the year, including continued advances in technology and further expansion of our geographical presence. Our new "Let's Talk About Tomorrow" marketing campaign continues to increase awareness of our brand and reinforces the message that Alfa offers a full line of products designed to protect our customers' futures.

"Alfa has the reputation for being one of the nation's most financially stable and reliable providers of insurance, and as we begin a new year, our team is excited about the growth opportunities we see for all of our companies. We intend to be proactive in managing our company in order to enhance that reputation. Our emphasis in 2007 will be very similar to prior years: we will continue to develop our team, build sound relationships, aggressively manage expenses, and improve our service, all of which will help us achieve our goal of solid financial performance."

A 30-day Internet replay of the earnings presentation conference call is available online in the Invest In Alfa section of this Web site.

Alfa Corp. is engaged in insurance and financial activities through its subsidiaries. The common stock of Alfa Corp. is traded on the NASDAQ Global Select Market under the symbol ALFA.

The associated investor supplement package for the fourth quarter ended Dec. 31, 2006, may be found by clicking on the web cast link in the Invest In Alfa section and is also available at: http://www.irinfo.com/alfa/4q06fsx.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.