Alfa Corporation Reports 2006 Results.MONTGOMERY Montgomery, city, United States Montgomery, city (1990 pop. 187,106), state capital and seat of Montgomery co., E central Ala., near the head of navigation on the Alabama River just below the confluence of the Coosa and Tallapoosa rivers, and in the rich , Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. . -- Alfa Al´fa n. 1. A plant (Macrochloa tenacissima) of North Africa; also, its fiber, used in paper making. Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ALFA) today announced financial results for the year ended December December: see month. 31, 2006. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the year was $103,676,787, or $1.28 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, compared with operating income of $95,100,686, or $1.18 per diluted share for 2005, an increase of 8.3% 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%. Premiums and policy charges for 2006 increased 8.5% 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% 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 Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. performance, this year's results were outstanding. Alfa Corporation's ten-year average combined ratio is 91.3%, and we ended 2006 at 90.8%. 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." Alfa Corporation will host a conference call today at 10:30 a.m. Eastern time. Investors and other interested parties may access the teleconference by calling 1-800-289-0518, or via links located on Alfa's web site: www.alfains.com. A 30-day Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the play 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 Global Select Market under the symbol ALFA. The associated investor supplement package for the fourth quarter ended December 31, 2006, 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/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 Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. - 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. [TABLE OMITTED] [TABLE OMITTED] |
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