Alfa Corporation Reports Third Quarter 2007 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 three and nine months ended September September: see month. 30, 2007. 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 quarter was $24,977,250, or $0.31 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 $26,871,178, or $0.33 per diluted share, for the third quarter of 2006, a per share decrease of 7.6%. Net income, which includes net realized investment gains, was $25,119,350, or $0.31 per diluted share, for the third quarter of 2007, compared with $27,237,673, or $0.34 per diluted share in 2006, a per share decrease of 8.3%. Premiums and policy charges increased 3.7% to $179,386,267 for the third quarter of 2007. For the nine months ended September 30, 2007, operating income was $73,320,225 compared with operating income of $71,354,899 for the first nine months of 2006. On a per share basis, operating income increased 2.2% to $0.90 per diluted share for the nine-month period in 2007 compared with $0.88 per diluted share for the same period in 2006. After net realized investment gains, net income was $74,729,635, or $0.92 per diluted share, for the first nine months of 2007, compared with net income of $72,883,563, or $0.90 per diluted share, for the same period in 2006, a per share increase of 2.0%. Premiums and policy charges increased 4.7% to $536,949,278 for the first nine months of 2007. During the third quarter of 2007, Alfa Corporation recorded a non-recurring loss resulting from its 41% ownership in MidCountry Financial Corporation. Alfa Corporation accounts for this investment using the equity method. The loss at MidCountry resulted from loans originated and serviced by an independent mortgage lender headquartered in Florida. MidCountry Financial posted a loss in its mortgage portfolio primarily on loans originated by this mortgage lender, which also defrauded MidCountry Financial by misappropriating large principal payments on construction loans being serviced. The impact on Alfa Corporation of these combined non-recurring losses for the third quarter of 2007 was approximately $3,150,000 after-tax, or $0.04 per diluted share. Alfa Corporation will host a conference call on Wednesday, October 24, at 10:30 a.m. Eastern time. Investors and other interested parties may access the teleconference by calling 1-800-218-0713 (access code 11097382), 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 third quarter ended September 30, 2007, 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/ALFA3q07tmi.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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