Alfa Corporation Comments On Storm Losses From Hurricane Ivan.MONTGOMERY, Ala. -- The Alfa Insurance Group and Alfa Corporation (Nasdaq/NM:ALFA) today commented on the effects of Hurricane Ivan This article is about the Atlantic hurricane of 2004. For other storms of the same name, see Tropical Storm Ivan (disambiguation). Hurricane Ivan was the strongest hurricane of the 2004 Atlantic hurricane season. . Alfa's Chairman, President and Chief Executive Officer, Jerry A. Newby, said, "Hurricane Ivan had a significant impact on certain counties in Alabama The U.S. state of Alabama is comprised of sixty-seven counties. The oldest and newest counties in Alabama are Washington County (created June 4, 1800) and Houston County (created February 9, 1903), respectively. and created a large number of claims for our companies. Our strong surplus position, coupled with a substantial catastrophe reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. program, puts us in one of the strongest financial positions of any company in our industry. In addition to Alfa's financial strength, we take great pride in our customer service. Alfa has relocated additional adjusters from our operations in five states to focus on the areas hardest hit by Hurricane Ivan. This group of dedicated Alfa employees has spent long hours working away from their homes to handle the volume of claims created by the storm. Our primary focus is to serve our policyholders as soon as possible." This storm created claims that are estimated to be in a range of $270 million to $325 million for the Alfa Group Alfa Group Consortium is one of Russia's largest privately owned financial-industrial conglomerates, with interests in oil and gas, commodities trading, commercial and investment banking (Alfa Bank), insurance, retail trade and telecommunications. . The impact of these claims on Alfa Corporation's third quarter earnings, after reinsurance, taxes and reinsurance reinstatement Reinstatement The restoration of an insurance policy after it has lapsed for nonpayment of premiums. premiums, is estimated to be approximately $0.01 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. This Alfa Corporation estimate is based on the assumption that the ultimate storm loss for the Alfa Group will remain below the upper claims estimate of $325 million. 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. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Additional information regarding these and other risk factors and uncertainties may be found in Alfa Corporation's filings with the Securities and Exchange Commission. |
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