Alfa Corporation Reports Record 2004 Results.

MONTGOMERY, Ala. -- Alfa Corporation (Nasdaq/NM:ALFA) today announced record financial results for the year ended December 31, 2004. Operating income for the year was a record $84,863,334, or $1.05 per diluted share, compared with operating income of $74,397,596, or $0.93 per diluted share for 2003, an increase of 13.9% on a per share basis. Net income, which includes net realized investment gains, was a record $89,444,959, or $1.11 per diluted share for 2004, compared with $78,468,948, or $0.98 per diluted share in 2003, a per share increase of 13.8%. Premiums and policy charges for 2004 increased 6.9% to $561,356,040.

Operating income for the fourth quarter of 2004 was $21,479,250, or $0.27 per diluted share, compared with fourth quarter 2003 operating income of $20,418,133, or $0.25 per diluted share. After net realized investment gains, net income for the fourth quarter of 2004 was $22,681,694, or $0.28 per diluted share, compared with $21,780,443, or $0.27 per diluted share, in the prior-year period. Premium revenue for the final three months of 2004 increased 6.0% to $141,935,932.

Alfa's Chairman, President and Chief Executive Officer, Jerry A. Newby, said, "We are very pleased with our 2004 results. Once again we have produced a record year, with a 14% increase in net income. Even though the storms in 2004 created a great deal of extra work for our entire organization, our team did not lose focus. We have excelled in servicing our policyholders and, at the same time, delivered outstanding financial results. As I look forward, I am excited about the addition of Alfa Vision, our new nonstandard automobile company, which will add insurance production in nine new states. We expect this new company, together with the addition of Alfa Virginia Mutual to our inter-company pooling agreement, will substantially increase Alfa's geographic reach and enhance our growth potential in the coming years."

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 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 Stock Market's National Market under the symbol ALFA.

For unaudited quarterly financial statements for the fourth quarter and year ended December 31, 2004 and 2003, along with additional information, click here: http://www.irinfo.com/alfa/4q04fs.pdf.

ALFA CORPORATION
                         Financial Highlights

                                      Year Ended December 31,
                              ---------------------------------------
                                  2004            2003        Change
                              ------------    ------------   --------
Premiums and Policy Charges   $561,356,040    $525,229,034      6.9%
Net Investment Income           89,354,899      83,091,632      7.5%
Other Income                     2,608,097       4,351,873    (40.7%)
                              ------------    ------------   --------
Total Revenues                 653,319,036     612,672,539      6.6%
Total Expenses                 539,738,243     512,339,341      5.3%
                              ------------    ------------   --------
Income Before Provision
  for Income Taxes             113,580,793     100,333,198     13.2%
Provision for Income Taxes      28,717,459      25,935,602     10.7%
                              ------------    ------------   --------
Operating Income(a)             84,863,334      74,397,596     14.1%
Realized Investment Gains,
   Net of Tax                    4,581,625       4,071,352     12.5%
                              ------------    ------------   --------
Net Income                    $ 89,444,959    $ 78,468,948     14.0%
                              ============    ============   ========

Operating Income Per Share(a)
  Basic                       $       1.06    $       0.93     13.8%
  Diluted                     $       1.05    $       0.93     13.9%

Net Income Per Share
  Basic                       $       1.12    $       0.98     13.7%
  Diluted                     $       1.11    $       0.98     13.8%

Average Number of Shares
  Outstanding
    Basic                       79,984,651      79,808,669
    Diluted                     80,489,502      80,390,001


                                  Three Months Ended December 31,
                              ---------------------------------------
                                  2004            2003        Change
                              ------------    ------------   --------
Premiums and Policy Charges   $141,935,932    $133,858,864      6.0%
Net Investment Income           22,470,548      19,633,970     14.4%
Other Income                       444,838         880,684    (49.5%)
                              ------------    ------------   --------
Total Revenues                 164,851,318     154,373,518      6.8%
Total Expenses                 137,645,678     128,010,708      7.5%
                              ------------    ------------   --------
Income Before Provision
  for Income Taxes              27,205,640      26,362,810      3.2%
Provision for Income Taxes       5,726,390       5,944,677     (3.7%)
                              ------------    ------------   --------
Operating Income(a)             21,479,250      20,418,133      5.2%
Realized Investment Gains,
   Net of Tax                    1,202,444       1,362,310    (11.7%)
                              ------------    ------------   --------
Net Income                    $ 22,681,694    $ 21,780,443      4.1%
                              ============    ============   ========

Operating Income Per Share(a)
  Basic                       $       0.27    $       0.25      5.8%
  Diluted                     $       0.27    $       0.25      5.8%

Net Income Per Share
  Basic                       $       0.28    $       0.27      4.7%
  Diluted                     $       0.28    $       0.27      4.7%

Average Number of Shares
  Outstanding
    Basic                       79,829,520      80,293,809
    Diluted                     80,356,539      80,827,936

(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.