Montgomery, Alabama (May 2, 2007) -- Alfa Corp. today announced financial results for the three months ended March 31, 2007. Operating income for the quarter was $13,514,159, or $0.17 per diluted share, compared with operating income of $20,055,079, or $0.25 per diluted share, for the first quarter of 2006, a decrease of 33.0 percent on a per share basis. Net income, which includes net realized investment gains, was $14,328,820, or $0.18 per diluted share for the first quarter of 2007, compared with $20,137,442, or $0.25 per diluted share in 2006, a per share decrease of 29.2 percent. Premiums and policy charges for the first quarter of 2007 increased 5.3 percent to $178,006,383.

Alfa's results for the first quarter of 2007 were affected by losses from the tornado in Enterprise, Ala., as well as other storms throughout the state in February and March. The impact of these claims on Alfa Corp.'s first quarter earnings, after reinsurance and taxes, was $0.11 per diluted share compared with $0.08 per diluted share in the first quarter of 2006 from the same type of weather-related events. In addition, costs associated with the acquisition of Virginia Mutual and the related commutation of the inter-company quota share, together with the adoption of Statement of Position (SOP) 05-1, Accounting for Deferred Acquisition Costs In Connection With Modifications or Exchanges of Insurance Contracts, added approximately $1.7 million, after-tax, of additional expense in the first quarter of 2007, resulting in an additional earnings decline of $0.02 per diluted share during the quarter.

Alfa's Chairman, President and Chief Executive Officer, Jerry A. Newby, said, "Storm losses had a significant impact on our first quarter results. When such dramatic events occur, our first thoughts are with our policyholders and taking care of them in their time of need. I am proud of the way our claims personnel responded as we dealt with storm damage across the state of Alabama. Despite this level of storm activity, stockholders' equity increased $9.5 million for the quarter. We continue to experience sound top-line growth, and our core loss ratio remains outstanding at 57.8 percent."

Alfa Corp. will host a conference call on Wednesday, May 2, at 10:30 a.m. Eastern time. Investors and other interested parties may access the teleconference by calling 1-800-240-2430 or via links located here on Alfa's web site in the Invest In Alfa section. A 30-day Internet replay of the call will also be available there.

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

The associated investor supplement package for the first quarter ended March 31, 2007, 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/ALFA1Q07FS1.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.