Alfa Corporation Reports First Quarter 2005 Results.

MONTGOMERY, Ala. -- Alfa Corporation (NASDAQ/NM: ALFA) today announced financial results for the three months ended March 31, 2005. Operating income for the quarter was $20,844,146, or $0.26 per diluted share, compared with operating income of $24,529,610, or $0.30 per diluted share, for the first quarter of 2004, a decrease of 15.1% on a per share basis. Net income, which includes net realized investment gains and losses, was $21,570,344, or $0.27 per diluted share, for the first quarter of 2005 compared with $25,476,887, or $0.32 per diluted share, for the first quarter of 2004, a decrease of 15.4%. Premiums and policy charges for the first quarter of 2005 increased 11.2% to $154,778,156.

As previously announced, Alfa's results for the first quarter of 2005 were affected by losses from a series of thunderstorms that struck Alabama and Mississippi. These thunderstorms produced wind and hail, which caused damage to both automobiles and homes, generating claims of more than $20 million for the Alfa Group. The impact of these claims on Alfa Corporation's first quarter earnings, after reinsurance and taxes, was $0.09 per diluted share. There were no such storm losses in the year-earlier period when Alfa reported record operating income.

Alfa's Chairman, President and Chief Executive Officer, Jerry A. Newby, said, "We have had a very successful quarter despite the substantial impact from a series of spring storms that occurred in both February and March. Offsetting some of the negative impact of the storm activity was an outstanding core loss ratio of 57%. In addition, our top-line growth increased nicely as a result of the inclusion of Alfa Virginia Mutual in our inter-company pooling agreement and the acquisition of Alfa Vision Insurance Group, the most recent addition to the Alfa Family. These are two great management teams, and we believe these companies will continue to make positive contributions to our financial results. Even considering the impact of the latest rounds of storms, we think we've laid a solid foundation for the remainder of 2005."

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 1-800-946-0782, or via links located on Alfa's web site: www.alfains.com. A 30-day Internet replay 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 Stock Market's National Market under the symbol ALFA.

For unaudited quarterly financial statements for the first quarter ended March 31, 2005, along with additional information, click here: http://www.irinfo.com/alfa/1q05fsm.pdf.

ALFA CORPORATION
                         Financial Highlights
                              (Unaudited)

                                     Three Months Ended
                                          March 31,
                                 --------------------------
                                     2005          2004        Change
                                 ------------  ------------   --------
Premiums and Policy Charges      $154,778,156  $139,180,803    11.21%
Net Investment Income              22,975,156    21,901,161     4.90%
Other Income                          877,326       916,767    (4.30%)
                                 ------------  ------------   --------
Total Revenues                    178,630,638   161,998,731    10.27%
Total Expenses                    151,298,562   127,594,854    18.58%
                                 ------------  ------------   --------
Income Before Provision for
  Income Taxes                     27,332,076    34,403,877   (20.56%)
Provision for Income Taxes          6,487,930     9,874,267   (34.29%)
                                 ------------  ------------   --------
Operating Income(a)                20,844,146    24,529,610   (15.02%)
Realized Investment Gains,
  Net of Tax                          726,198       947,277   (23.34%)
                                 ------------  ------------   --------
Net Income                       $ 21,570,344  $ 25,476,887   (15.33%)
                                 ============  ============   ========

Operating Income Per Share(a)
   Basic                         $       0.26  $       0.31   (15.10%)
   Diluted                       $       0.26  $       0.30   (15.05%)
                                 ============  ============   ========
Net Income Per Share
   Basic                         $       0.27  $       0.32   (15.41%)
   Diluted                       $       0.27  $       0.32   (15.36%)
                                 ============  ============   ========

Average Number of Shares
  Outstanding
    Basic                          80,165,952    80,097,071
    Diluted                        80,680,958    80,652,201
                                 ============  ============

   (a) Management believes that operating income and operating income
       per share, non-GAAP financial measures, serve as meaningful
       tools for assessing the profitability of the Company's ongoing
       operations. Operating income is defined by the Company as net
       income excluding realized investment gains and losses, net of
       applicable taxes. Operating income per share represents
       operating income divided by the weighted average shares
       outstanding for the reporting period. Management uses
       operating income and operating income per share as measures of
       the Company's ongoing profitability since they eliminate the
       effect of securities market volatility from earnings.

       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.