EXHIBIT 99.1

LOGO   NEWS RELEASE

2108 East South Boulevard

   Montgomery, Alabama 36116   Telephone 334-288-3900

 

CONTACT:    Stephen G. Rutledge    RELEASE DATE: April 21, 2004
     Senior Vice President, CFO     
     and Chief Investment Officer     
     (334) 288-3900     

 

ALFA CORPORATION REPORTS RECORD FIRST QUARTER 2004 RESULTS

 

Montgomery, Alabama (April 21, 2004) — Alfa Corporation (Nasdaq/NM:ALFA) today announced financial results for the three months ended March 31, 2004. Operating income for the quarter was $24,529,610, or $0.30 per diluted share, compared with operating income of $19,896,937, or $0.25 per diluted share for the first quarter of 2003, an increase of 22.1% on a per share basis. Net income, which includes net realized investment gains and losses, was $25,476,887, or $0.32 per diluted share for the first quarter of 2004, compared with $18,729,628, or $0.23 per diluted share for the first quarter of 2003, an increase of 36.0%. Premiums and policy charges for the first quarter of 2004 increased 7.7% to $139,079,736.

 

Alfa’s Chairman, President and Chief Executive Officer, Jerry A. Newby, said, “I am very pleased with the results of the first quarter. We had a solid quarter in top-line growth, increasing property and casualty earned premium by 7.6% and life premium by 8.1%. Our combined ratio was an outstanding 84.0% derived from both an improvement in loss ratio and a decrease in expense ratio. We have been through a period of unprecedented investment in technology. In 2004 we should see these systems begin to roll out and improve our operations as well as enhance our customer service. While we have spent untold hours on these projects, Alfa employees have not lost focus on the things that have made our company successful. Profitable top-line growth, excellent underwriting and expense control continue to be our recipe for success. These operating results in the first quarter give us a great foundation on which to build for the remainder of 2004.”

 

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 1-800-289-0493, 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, 2004, along with additional information, click here: http://www.irinfo.com/alfa/1q04fs.pdf.

 

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Alfa Corporation Reports First Quarter 2004 Results

Page 2

April 21, 2004

 

ALFA CORPORATION

Financial Highlights

(Unaudited)

 

     Three Months Ended
  
     March 31,
  
     2004
    2003
     Change
  

Premiums and Policy Charges

    $ 139,079,736    $ 129,187,339     7.66 %
   

Net Investment Income

      22,022,668      21,653,987     1.70 %
   

Other Income

      558,875      595,630     (6.17 %)
    
  
 
   

Total Revenues

      161,661,279      151,436,956     6.75 %
   

Total Expenses

      127,257,403      124,028,952     2.60 %
    
  
 
   

Income Before Provision for Income Taxes

      34,403,876      27,408,004     25.52 %
   

Provision for Income Taxes

      9,874,266      7,511,067     31.46 %
    
  
 
   

Operating Income*

      24,529,610      19,896,937     23.28 %
   

Realized Investment Gains, Net of Tax

      947,277      (1,167,309 )   181.15 %
    
  
 
   

Net Income

    $ 25,476,887    $ 18,729,628     36.02 %
    
  
 

Operating Income Per Share*

                      

Basic

    $ 0.31    $ 0.25     22.10 %

Diluted

    $ 0.30    $ 0.25     22.14 %
   

Net Income Per Share

                      

Basic

    $ 0.32    $ 0.24     34.72 %

Diluted

    $ 0.32    $ 0.23     34.76 %
  

Average Number of Shares Outstanding

                      

Basic

      80,097,071      79,330,609        

Diluted

      80,652,201      79,903,268        
  
* 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.

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