Alfa Corporation Reports First Quarter 2006 Results.

MONTGOMERY, Ala. -- Alfa Corporation (Nasdaq/NM:ALFA) today announced financial results for the three months ended March 31, 2006. Operating income for the quarter was $20,055,079, or $0.25 per diluted share, compared with operating income of $20,844,146, or $0.26 per diluted share for the first quarter of 2005, a decrease of 4.3% on a per share basis. Net income, which includes net realized investment gains, was $20,137,442, or $0.25 per diluted share, for the first quarter of 2006, compared with $21,570,344, or $0.27 per diluted share in 2005, a per share decrease of 7.2%. Premiums and policy charges for the first quarter of 2006 increased 10.3% to $168,994,463.

As previously announced, Alfa's results for the first quarter of 2006 were affected by losses from a series of thunderstorms that struck Alabama. These thunderstorms produced wind and hail, which caused damage to both automobiles and homes, generating claims of more than $15.2 million for the Alfa Group. The impact of these claims on Alfa Corporation's first quarter earnings, after reinsurance and taxes, was $0.08 per diluted share compared with storm losses of $0.09 per diluted share in the first quarter of 2005 from the same of type weather-related events.

In addition, Alfa Corporation adopted the requirements of FASB Statement No. 123R, Accounting For Stock-Based Payments, in the first quarter using a modified version of the prospective application. This Statement focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions. Under the prospective method, share-based compensation of $1,190,000, or $0.01 per diluted share, was recognized in the first quarter of 2006. Prior to adoption, share-based compensation was recognized when options were exercised.

Alfa's Chairman, President and Chief Executive Officer, Jerry A. Newby, said, "We had solid performance in the first quarter despite challenges resulting from thunderstorms that occurred in January and March. These losses were somewhat offset by an outstanding core loss ratio of 55.6%. We continue to experience good top-line growth as a result of strong increases in premium from Alfa Vision Insurance together with steady growth in our core states. We believe these results have laid a good foundation for the remainder of 2006."

Alfa Corporation will host a conference call on Wednesday, April 26, at 10:30 a.m. Eastern time. Investors and other interested parties may access the teleconference by calling 1-800-289-0730 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 using the same link.

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.

The associated investor supplement package for the first quarter ended March 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/1q06fss.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.

ALFA CORPORATION
              CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                              (UNAUDITED)

                         Three Months Ended
                             March 31,                     Statistics
                    -------------------------            -------------
                         2006         2005     % Change   2006   2005
                    ------------  -----------  --------  ------ ------
Revenues
 Premiums-Property
  and Casualty
  Insurance          147,415,932  132,781,029    11.02
 Premiums-Life
  Insurance           11,745,853   11,090,951     5.90
 Policy Charges-
  Life Insurance       9,832,678    9,329,426     5.39
 Net Investment
  Income              23,975,664   22,980,327     4.33
 Other Income          7,369,745    7,089,077     3.96
                     -----------  -----------   ------
  Total Revenues     200,339,872  183,270,810     9.31
                     -----------  -----------   ------
Benefits and Expenses
 Benefits &
  Settlement
  Expenses           118,819,689  111,728,580     6.35   59.31   60.96
Dividends to
  Policyholders        1,115,000    1,077,474     3.48    0.56    0.59
Amortization of
 Deferred Policy
 Acquisition Costs    30,724,622   25,836,126    18.92   15.34   14.10
Other Operating
 Expenses             22,037,491   17,296,554    27.41   11.00    9.44
                     -----------  -----------   ------   -----   -----
  Total Expenses     172,696,802  155,938,734    10.75   86.20   85.09
                     -----------  -----------   ------   -----   -----
Income Before
 Provision for
 Income Taxes         27,643,070   27,332,076     1.14   13.80   14.91
Provision For
 Income Taxes          7,587,991    6,487,930    16.96   27.45   23.74
                     -----------  -----------   ------
Operating Income      20,055,079   20,844,146    (3.79)

Realized Investment
 Gains, Net of Tax        82,363      726,198   (88.66)
                     -----------  -----------   ------
  Net Income          20,137,442   21,570,344    (6.64)
                     ===========  ===========   ======
Operating Income
 Per Share-Basic            0.25         0.26    (3.95)
                     ===========  ===========   ======
Operating Income
 Per Share-Diluted          0.25         0.26    (4.31)
                     ===========  ===========   ======
Net Income Per
 Share-Basic                0.25         0.27    (6.80)
                     ===========  ===========   ======
Net Income Per
 Share-Diluted              0.25         0.27    (7.15)
                     ===========  ===========   ======
Dividends Per Share       0.1000       0.0875    14.29
                     ===========  ===========   ======
Average Shares
  Outstanding-Basic   80,301,335   80,165,952     0.17
                     ===========  ===========   ======
Average Shares
  Outstanding-
  Diluted             81,122,521   80,680,958     0.55
                     ===========  ===========   ======

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.

                              ALFA CORPORATION
                   CONSOLIDATED CONDENSED BALANCE SHEETS

                             (Unaudited)
                              March 31,       December 31,
                                2006             2005 (1)     % Change
                          ---------------    ---------------  --------
Assets
 Investments:
  Fixed Maturities Held
   for Investment, at
   amortized cost (fair
   value $87,369
   in 2006 and $93,578
   in 2005)               $        83,152    $        88,330    -5.86%
  Fixed Maturities
   Available for Sale,
   at fair value
   (amortized cost
   $1,437,847,139
   in 2006 and
   $1,394,823,078
   in 2005)                 1,439,962,345      1,419,708,095     1.43%
  Equity Securities
   Available for Sale,
   at fair value (cost
   $99,985,591 in 2006
   and $96,668,040 in 2005)   113,497,378        107,020,104     6.05%
  Policy Loans                 63,473,011         62,101,204     2.21%
  Collateral Loans            127,461,200        124,667,449     2.24%
  Commercial Leases             2,048,221          2,515,084   -18.56%
  Other Long-Term
   Investments                 86,042,756         61,961,072    38.87%
  Other Long-Term
   Investments
   in Affiliates              136,552,712        138,457,224    -1.38%
  Short-Term Investments       85,150,745         84,861,880     0.34%
                          ---------------    ---------------    ------
   Total Investments        2,054,271,520      2,001,380,442     2.64%

Cash                           24,412,505         37,228,639   -34.43%
Accrued Investment
  Income                       16,942,006         16,858,408     0.50%
Accounts Receivable            85,195,001         72,622,465    17.31%
Reinsurance Balances
  Receivable                    5,623,630          6,648,204   -15.41%
Deferred Policy
  Acquisition Costs           215,449,330        204,253,919     5.48%
Goodwill                       13,924,306         13,924,306     0.00%
Other Intangible Assets
 (net of accumulated
 amortization of
 $854,250 in 2006 and
 $683,400 in 2005)              8,253,750          8,424,600    -2.03%
Other Assets                   23,132,176         20,478,836    12.96%
                          ---------------    ---------------    ------
   Total Assets           $ 2,447,204,224    $ 2,381,819,819     2.75%
                          ===============    ===============     =====

Liabilities and Stockholders' Equity
 Policy Liabilities and
  Accruals-Property and
  Casualty Insurance      $   164,818,022    $   159,639,886     3.24%
 Policy Liabilities and
  Accruals-Life Insurance
  Interest-Sensitive
  Products                    627,494,720        600,994,074     4.41%
 Policy Liabilities and
  Accruals-Life Insurance
  Other Products              197,547,240        197,140,294     0.21%

 Unearned Premiums            240,469,395        220,456,047     9.08%
 Dividends to
  Policyholders                11,576,381         11,662,085    -0.73%
 Premium Deposit and
  Retirement Deposit
  Funds                         5,395,129          5,741,071    -6.03%
 Deferred Income Taxes         24,589,027         29,118,958   -15.56%
 Other Liabilities             98,647,834         74,147,175    33.04%
 Due to Affiliates             16,949,199         22,249,975   -23.82%
 Commercial Paper             205,174,150        213,790,443    -4.03%
 Notes Payable                 70,000,000         70,000,000     0.00%
 Notes Payable to
  Affiliates                   23,688,417         20,887,635    13.41%
                          ---------------    ---------------    ------
    Total Liabilities       1,686,349,514      1,625,827,643     3.72%
                          ---------------    ---------------    ------
Commitments and
  Contingencies
Stockholders' Equity:
 Preferred Stock, $1 par
  value                               --                 --      0.00%
 Shares authorized:
  1,000,000
  Issued: None
 Common Stock, $1 par
  value                        83,783,024         83,783,024     0.00%
  Shares authorized:
    110,000,000
  Issued: 83,783,024
  Outstanding:
   80,325,651 in
   2006 and 80,284,018
   in 2005
 Capital in Excess of
  Par Value                    24,128,855         21,171,462    13.97%
 Accumulated Other
  Comprehensive Income (unrealized gains on securities available for
  sale, net of tax of $11,561,438 in 2006 and $22,105,684 in 2005;
  unrealized gains (losses) on interest rate swap contract, net of tax
  of $200,823 in 2006 and ($11,265) in 2005; unrealized (losses) on
  other long-term investments, net of tax of ($617,351) in 2006 and
  ($394,560) in 2005)          11,144,910         21,699,859   -48.64%

 Retained Earnings            679,641,843        667,535,056     1.81%
 Treasury Stock, at cost
  (shares, 3,457,373 in
  2006 and 3,499,006 in
  2005)                       (37,843,922)       (38,197,225)   -0.92%
                          ---------------    ---------------    ------
 Total Stockholders'
  Equity                      760,854,710        755,992,176     0.64%
                          ---------------    ---------------    ------
 Total Liabilities and
  Stockholders' Equity    $ 2,447,204,224    $ 2,381,819,819     2.75%
                          ===============    ===============     =====
Book Value per share      $          9.47    $          9.42
                          ===============    ===============

(1) Derived from audited financial statements