Exhibit 99.1

NEWS RELEASE

2108 East South Boulevard Montgomery, Alabama 36116 Telephone 334-288-3900

FINANCIAL CONTACT:				MEDIA CONTACT:
Stephen G. Rutledge				David Rickey
Senior Vice President, CFO				Vice President – Public Relations
and Chief Investment Officer				(334)613-4034
(334)613-4500

ALFA CORPORATION REPORTS RECORD 2005 RESULTS

Montgomery, Alabama (February 15, 2006) — Alfa Corporation (Nasdaq/NM:ALFA) today announced record financial results for the year ended December 31, 2005. Operating income for the year was a record $95,100,686, or $1.18 per diluted share, compared with operating income of $84,863,334, or $1.05 per diluted share for 2004, an increase of 11.8% on a per share basis. Included in 2005 results is the recognition of a deferred tax asset and subsequent charge to net income for the change in this deferred tax asset, arising from the creation of Alfa Benefits Corporation in 1999. The impact to income for this correction is $1,595,506 or $0.02 per share. Excluding this nonrecurring item operating income was $96,696,192 or $1.20 per diluted share for 2005. Net income, which includes net realized investment gains, was a record $99,033,753, or $1.23 per diluted share for 2005, compared with $89,444,959, or $1.11 per diluted share in 2004, a per share increase of 10.4%. Premiums and policy charges for 2005 increased 13.7% to $633,072,049.

Operating income for the fourth quarter of 2005 was $22,704,120, or $0.28 per diluted share, compared with fourth quarter 2004 operating income of $21,479,250, or $0.27 per diluted share. After net realized investment gains, net income for the fourth quarter of 2005 was $23,805,346, or $0.29 per diluted share, compared with $22,681,694, or $0.28 per diluted share, in the prior-year period. Premium revenue for the final three months of 2005 increased 15.7% to $162,908,090.

Alfa’s Chairman, President and Chief Executive Officer, Jerry A. Newby, said, “In a year of significant challenges for the insurance industry, we are very pleased with our company’s accomplishments in 2005. Our employees once again rose to the highest levels of performance when, for a second time in as many years, they were faced with the overwhelming task of servicing tens of thousands of Alfa customers whose lives were forever changed by a single force of nature. Their efforts helped generate strong financial performance, producing another year of record earnings. Also, the addition of our two newest companies, Alfa Vision Insurance and Alfa Virginia Mutual, to our inter-company pooling arrangement had a significant positive impact on our top line growth. We are proud of the many successes we achieved during the year, including advances in technology, new product offerings and geographical expansion.

“As the new year unfolds, we are excited about what the future holds for our companies. Our emphasis in 2006 will remain on developing our people, building sound relationships, improving our service, and producing solid financial performance.”

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.

The associated investor supplement package for the fourth quarter ended December 31, 2005, 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/4q05fsx.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.

-MORE-

ALFA CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

													(Unaudited)
		Years Ended December 31,							Statistics				Three Months Ended December 31,							Statistics
		2005		2004		% Change			2005		2004		2005		2004		% Change			2005		2004
Revenues
Premiums - Property and Casualty Insurance		556,438,727		485,534,231		14.60							143,872,916		122,642,041		17.31
Premiums - Life Insurance		41,134,144		37,134,465		10.77							10,260,406		9,752,897		5.20
Policy Charges -Life Insurance		35,499,178		34,089,930		4.13							8,774,768		8,412,761		4.30
Net Investment Income		94,931,739		89,361,003		6.23							24,421,647		22,472,784		8.67
Other Income		22,849,897		8,123,307		181.29							5,642,746		1,824,564		209.27
Total Revenues		750,853,685		654,242,936		14.77							192,972,483		165,105,047		16.88
Benefits and Expenses
Benefits & Settlement Expenses		432,856,310		390,061,548		10.97			57.65		59.62		109,578,448		98,830,281		10.88			56.78		59.86
Dividends to Policyholders		4,009,119		3,873,932		3.49			0.53		0.59		1,063,724		1,018,655		4.42			0.55		0.62
Amortization of Deferred Policy Acquisition Costs		108,723,470		90,454,509		20.20			14.48		13.83		26,725,516		20,341,056		31.39			13.85		12.32
Other Operating Expenses		73,453,925		56,272,154		30.53			9.78		8.60		22,768,806		17,709,415		28.57			11.80		10.73
Total Expenses		619,042,824		540,662,143		14.50			82.45		82.64		160,136,494		137,899,407		16.13			82.98		83.52
Income Before Provision for Income Taxes		131,810,861		113,580,793		16.05			17.55		17.36		32,835,989		27,205,640		20.70			17.02		16.48
Provision For Income Taxes		36,710,175		28,717,459		27.83			27.85		25.28		10,131,869		5,726,390		76.93			30.86		21.05
Operating Income		95,100,686		84,863,334		12.06							22,704,120		21,479,250		5.70
Realized Investment Gains, Net of Tax		3,933,067		4,581,625		(14.16	)						1,101,226		1,202,444		(8.42	)
Net Income		99,033,753		89,444,959		10.72							23,805,346		22,681,694		4.95
Operating Income Per Share - Basic		1.19		1.06		11.84							0.28		0.27		5.19
Operating Income Per Share - Diluted		1.18		1.05		11.75							0.28		0.27		4.99
Net Income Per Share - Basic		1.24		1.12		10.50							0.30		0.28		4.45
Net Income Per Share - Diluted		1.23		1.11		10.41							0.29		0.28		4.24
Dividends Per Share		0.3875		0.3425		13.14							0.1000		0.0875		14.29
Average Shares Outstanding - Basic		80,141,068		79,984,651		0.20							80,215,641		79,829,520		0.48
Average Shares Outstanding - Diluted		80,712,923		80,489,502		0.28							80,904,931		80,356,539		0.68

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 BALANCE SHEETS

		December 31,								% Change
		2005				2004
Assets
Investments:
Fixed Maturities Held for Investment, at amortized cost (fair value $93,578 in 2005 and $123,935 in 2004)		$	88,330			$	114,708			-23.00	%
Fixed Maturities Available for Sale, at fair value (amortized cost $1,394,823,078 in 2005 and $1,305,288,027 in 2004)			1,419,708,095				1,354,507,490			4.81	%
Equity Securities Available for Sale, at fair value (cost $96,668,040 in 2005 and $83,445,562 in 2004)			107,020,104				99,701,250			7.34	%
Policy Loans			62,101,204				58,476,569			6.20	%
Collateral Loans			124,667,449				110,792,974			12.52	%
Commercial Leases			2,515,084				4,831,363			-47.94	%
Other Long-Term Investments			61,961,072				66,855,805			-7.32	%
Other Long-Term Investments in Affiliates			138,457,224				77,942,989			77.64	%
Short-Term Investments			84,861,880				80,988,969			4.78	%
Total Investments			2,001,380,442				1,854,212,117			7.94	%
Cash			37,228,639				20,052,493			85.66	%
Accrued Investment Income			16,912,488				16,726,050			1.11	%
Accounts Receivable			72,622,465				50,447,800			43.96	%
Reinsurance Balances Receivable			6,648,204				5,279,560			25.92	%
Deferred Policy Acquisition Costs			204,253,919				183,258,224			11.46	%
Assets Classified as Held for Sale			—				77,450,278			-100.00	%
Goodwill			13,924,306				—			100.00	%
Other Intangible Assets (net of accumulated amortization of $683,400 in 2005)			8,424,600				—			100.00	%
Other Assets			20,478,836				15,237,024			34.40	%
Total Assets		$	2,381,873,899			$	2,222,663,546			7.16	%
Liabilities and Stockholders’ Equity
Policy Liabilities and Accruals - Property and Casualty Insurance		$	159,639,886			$	154,107,730			3.59	%
Policy Liabilities and Accruals - Life Insurance Interest-Sensitive Products			600,994,074				555,733,736			8.14	%
Policy Liabilities and Accruals - Life Insurance Other Products			197,140,294				180,410,535			9.27	%
Unearned Premiums			220,456,047				185,856,467			18.62	%
Dividends to Policyholders			11,662,085				11,262,132			3.55	%
Premium Deposit and Retirement Deposit Funds			5,741,071				6,369,125			-9.86	%
Deferred Income Taxes			29,118,958				43,070,818			-32.39	%
Liabilities Associated with Assets Classified as Held for Sale			—				340,876			-100.00	%
Other Liabilities			74,201,255				73,872,992			0.44	%
Due to Affiliates			22,249,975				29,995,986			-25.82	%
Commercial Paper			213,790,443				204,303,206			4.64	%
Notes Payable			70,000,000				70,000,000			0.00	%
Notes Payable to Affiliates			20,887,635				15,887,635			31.47	%
Total Liabilities			1,625,881,723				1,531,211,238			6.18	%
Commitments and Contingencies
Stockholders’ Equity :
Preferred Stock, $1 par value			—				—			0.00	%
Shares authorized: 1,000,000 Issued: None
Common Stock, $1 par value Shares authorized: 110,000,000			83,783,024				83,783,024			0.00	%
Issued: 83,783,024 Outstanding: 80,284,018 in 2005 and 79,833,467 in 2004
Capital in Excess of Par Value			21,171,462				10,961,782			93.14	%
Accumulated Other Comprehensive Income (unrealized gains on securities available for sale, net of tax of $22,105,684 in 2005 and $39,450,553 in 2004; unrealized (losses) on interest rate swap contract, net of tax of ($11,265) in 2005 and ($1,406,747) in 2004; unrealized gains (losses) on other long-term investments, net of tax of ($394,560) in 2005 and $16,565 in 2004)			21,699,859				38,060,371			-42.99	%
Retained Earnings			667,535,056				599,609,509			11.33	%
Treasury Stock, at cost (shares, 3,499,006 in 2005 and 3,949,557 in 2004)			(38,197,225	)			(40,962,378	)		-6.75	%
Total Stockholders’ Equity			755,992,176				691,452,308			9.33	%
Total Liabilities and Stockholders’ Equity		$	2,381,873,899			$	2,222,663,546			7.16	%
Book Value per share		$	9.42			$	8.66
Book Value per share (excluding FAS 115)		$	9.30			$	8.37

Alfa Corporation

Investor Supplement

Fourth Quarter 2005

This Investor Supplement is for informational purposes only. The consolidated financial statements and financial exhibits included herein are unaudited. These consolidated financial statements and exhibits should be read in conjunction with the consolidated financial statements and notes thereto included in Form 10-K.

Measures used in these financial statements and exhibits that are not based on generally accepted accounting principles (“non-GAAP”) are denoted with an asterisk (*) the first time they appear. These measures are defined on the page “Definitions of Non-GAAP, GAAP and Operating Measures” and are reconciled to the most directly comparable GAAP measure herein.

ALFA CORPORATION

PROPERTY/CASUALTY SEGMENT (UNAUDITED)

(in thousands, except ratios and per share data)

		Twelve Months Ended December 31,											Ratios						Three Months Ended December 31,											Ratios
		2005				2004				% Change			2005			2004			2005				2004				% Change			2005			2004
INCOME STATEMENT
Revenues
Automobile Premiums		$	344,193			$	302,589			13.7									$	89,237			$	76,230			17.1
Homeowner Premiums			196,457				171,130			14.8										50,255				44,766			12.3
Other Premiums			15,789				11,815			33.6										4,381				1,646			166.2
Total Premiums - Property and Casualty Insurance			556,439				485,534			14.6			100.0	%		100.0	%			143,873				122,642			17.3			100.0	%		100.0	%
Net Investment Income			40,200				34,746			15.7										10,729				11,646			(7.9	)
Other Income			9,621				5,905			62.9										2,769				1,458			89.9
Total Revenues			606,260				526,185			15.2										157,371				135,746			15.9
Benefits, Losses and Expenses
Incurred Losses (Non-storm)			322,884				288,543			11.9			58.0	%		59.4	%			85,066				75,266			13.0			59.1	%		61.4	%
Incurred Losses (Storm)			11,635				9,230			26.1			2.1	%		1.9	%			—				—			0.0			0.0	%		0.0	%
Loss Adjustment Expense			24,029				20,394			17.8			4.3	%		4.2	%			7,384				6,154			20.0			5.1	%		5.0	%
Total Benefits, Claims, Losses and Settlement Expenses			358,548				318,167			12.7			64.4	%		65.5	%			92,450				81,420			13.5			64.3	%		66.4	%
Amortization of Deferred Policy Acquisition Costs			100,652				82,431			22.1			18.1	%		17.0	%			25,644				19,171			33.8			17.8	%		15.6	%
Other Operating Expenses			41,367				34,779			18.9			7.4	%		7.2	%			15,099				12,412			21.6			10.5	%		10.1	%
Total Operating Expenses			142,019				117,210			21.2			25.5	%		24.1	%			40,743				31,583			29.0			28.3	%		25.8	%
Total Benefits, Losses and Expenses			500,567				435,377			15.0			90.0	%		89.7	%			133,193				113,003			17.9			92.6	%		92.1	%
Income Before Provision for Income Taxes			105,693				90,808			16.4										24,178				22,743			6.3
Provision For Income Taxes			25,497				22,110			15.3										5,210				5,167			0.8
Operating Income *			80,196				68,698			16.7										18,968				17,576			7.9
Realized Investment Gains (Losses), Net of Tax			120				(3,129	)		103.8										424				(411	)		203.2
Net Income		$	80,316			$	65,569			22.5									$	19,392			$	17,165			13.0
Operating Income Per Share - Diluted *		$	0.99			$	0.85			16.4									$	0.24			$	0.22			7.6
Net Income Per Share - Diluted		$	1.00			$	0.81			22.2									$	0.24			$	0.21			12.7
Operating Return on Equity*			18.5	%			17.5	%
Return on Equity*			18.6	%			16.7	%
Other Key Information
Earned Premium by Region
Alabama		$	441,159			$	419,152			5.3			79.3	%		86.3	%		$	111,842			$	107,127			4.4			77.7	%		87.3	%
Georgia			33,496				31,176			7.4			6.0	%		6.4	%			8,438				7,223			16.8			5.9	%		5.9	%
Mississippi			39,202				35,206			11.4			7.0	%		7.3	%			9,995				8,292			20.5			6.9	%		6.8	%
VA Mutual			21,795				—			100.0			3.9	%		0.0	%			5,477				—			100.0			3.8	%		0.0	%
Vision			20,787				—			100.0			3.7	%		0.0	%			8,121				—			100.0			5.6	%		0.0	%
Total Earned Premium		$	556,439			$	485,534			14.6			100.0	%		100.0	%		$	143,873			$	122,642			17.3			100.0	%		100.0	%
Incurred Losses by Region (Non-storm)
Alabama		$	252,624			$	245,873			2.7			57.3	%		58.7	%		$	63,979			$	64,734			(1.2	)		57.2	%		60.4	%
Georgia			25,299				21,069			20.1			75.5	%		67.6	%			6,252				5,061			23.5			74.1	%		70.1	%
Mississippi			21,400				21,601			(0.9	)		54.6	%		61.4	%			6,239				5,471			14.0			62.4	%		66.0	%
VA Mutual			10,804				—			100.0			49.6	%		—				3,444				—			100.0			62.9	%		—
Vision			12,757				—			100.0			61.4	%		—				5,152				—			100.0			63.4	%		—
Total Incurred Losses		$	322,884			$	288,543			11.9			58.0	%		59.4	%		$	85,066			$	75,266			13.0			59.1	%		61.4	%
Lapse Ratio: Preferred and Standard Classes *			3.50	%			3.74	%												3.64	%			3.67	%
Net Written Premium by LOB
Automobile		$	366,419			$	305,271			20.0									$	89,005			$	74,151			20.0
Homeowners			206,075				180,615			14.1										47,223				43,680			8.1
Other			15,886				12,278			29.4										3,304				1,210			173.1
Total Net Written Premium		$	588,380			$	498,164			18.1									$	139,532			$	119,041			17.2
Net Written Premium by Region
Alabama		$	447,066			$	429,858			4.0									$	106,606			$	104,019			2.5
Georgia			33,885				31,802			6.5										8,076				6,889			17.2
Mississippi			40,455				36,504			10.8										9,895				8,133			21.7
VA Mutual			32,615				—			100.0										5,567				—			100.0
Vision			34,359				—			100.0										9,388				—			100.0
Total Net Written Premium		$	588,380			$	498,164			18.1									$	139,532			$	119,041			17.2

Data may differ from actual due to rounding.

ALFA CORPORATION

LIFE SEGMENT (UNAUDITED)

(in thousands, except ratios and per share data)

		Twelve Months Ended December 31,											Ratios						Three Months Ended December 31,											Ratios
		2005				2004				% Change			2005			2004			2005				2004				% Change			2005			2004
INCOME STATEMENT
Revenues
Traditional Life Insurance Premiums		$	40,617			$	36,642			10.8									$	10,260			$	9,753			5.2
Universal Life Policy Charges			20,803				19,863			4.7										5,324				5,014			6.2
Universal Life Policy Charges - COLI			3,812				3,473			9.8										775				650			19.2
Interest-sensitive Life Policy Charges			10,884				10,754			1.2										2,675				2,749			(2.7	)
Group Life Insurance Premiums			517				492			5.1										—				—			0.0
Total Premiums and Policy Charges - Life Insurance			76,633				71,224			7.6			100.0	%		100.0	%			19,034				18,166			4.8			100.0	%		100.0	%
Net Investment Income			50,963				49,129			3.7										13,012				12,549			3.7
Other Income			—				—			0.0										—				—			0.0
Total Revenues			127,596				120,353			6.0										32,046				30,715			4.3
Benefits, Claims, Losses and Settlement Expenses			73,205				71,895			1.8			95.5	%		100.9	%			17,212				17,411			(1.1	)		90.4	%		95.8	%
Dividends to Policyholders			4,009				3,874			3.5			5.2	%		5.4	%			1,064				1,019			4.4			5.6	%		5.6	%
Amortization of Deferred Policy Acquisition Costs			9,277				8,024			15.6			12.1	%		11.3	%			1,552				1,170			32.6			8.2	%		6.4	%
Other Operating Expenses			10,627				11,095			(4.2	)		13.9	%		15.6	%			2,469				2,336			5.7			13.0	%		12.9	%
Total Benefits, Losses and Expenses			97,118				94,888			2.4			126.7	%		133.2	%			22,297				21,936			1.6			117.1	%		120.8	%
Income Before Provision for Income Taxes			30,478				25,465			19.7										9,749				8,779			11.0
Provision For Income Taxes			8,741				6,703			30.4										2,658				2,252			18.0
Operating Income			21,737				18,762			15.9										7,091				6,527			8.6
Realized Investment Gains, Net of Tax			3,836				7,873			(51.3	)									734				1,624			(54.8	)
Net Income		$	25,573			$	26,635			(4.0	)								$	7,825			$	8,151			(4.0	)
Operating Income Per Share - Diluted		$	0.27			$	0.23			15.5									$	0.09			$	0.08			8.3
Net Income Per Share - Diluted		$	0.32			$	0.33			(4.3	)								$	0.10			$	0.10			(4.3	)
Operating Return on Equity			7.2	%			6.6	%
Return on Equity			8.5	%			9.4	%
Other Key Information (all information presented on a STAT-basis)
Annualized New Business Premium by LOB
Traditional Life		$	7,288			$	6,738			8.2									$	1,460			$	1,430			2.1
Universal Life			3,929				3,611			8.8										740				769			(3.8	)
Interest-sensitive Life			2,352				2,964			(20.6	)									521				427			22.0
Total Issued New Business Premium by LOB		$	13,569			$	13,313			1.9									$	2,721			$	2,626			3.6
Annualized New Business Premium by Region
Alabama		$	11,648			$	11,538			1.0									$	2,281			$	2,265			0.7
Georgia			1,003				969			3.5										241				184			31.0
Mississippi			918				806			13.9										199				177			12.4
Total Issued New Business Premium by Region		$	13,569			$	13,313			1.9									$	2,721			$	2,626			3.6
Actual vs. Expected Mortality Ratio *			96	%			104	%												103	%			104	%
Persistency Ratio *			91.2	%			91.2	%

Data may differ from actual due to rounding.

ALFA CORPORATION

NONINSURANCE SEGMENT (UNAUDITED)

(in thousands, except ratios and per share data)

		Twelve Months Ended December 31,											Three Months Ended December 31,
		2005				2004				% Change			2005				2004				% Change
INCOME STATEMENT
Revenues
Equity Interest in MidCountry Financial (net of expense)		$	1,154			$	540			113.7			$	(125	)		$	(57	)		(119.3	)
Loan Income (net of expense)			4,350				4,258			2.2				1,141				1,097			4.0
Other Net Investment Income			2,521				2,976			(15.3	)			750				(2,047	)		136.6
Total Net Investment Income			8,025				7,774			3.2				1,766				(1,007	)		275.4
Fee/Commission Income - Agency Operations			23,849				827			2,783.8				6,146				207			2,869.1
Other Income			1,428				1,481			(3.6	)			411				178			130.9
Total Other Income			25,277				2,308			995.2				6,557				385			1,603.1
Total Revenues			33,302				10,082			230.3				8,323				(622	)		1,438.1
Benefits, Losses and Expenses
Claims and Settlement Expenses - Agency Operations			2,766				—			100.0				566				—			100.0
Other Operating Expenses - Loan/Lease Operations			6,661				6,206			7.3				1,518				933			62.7
Other Operating Expenses - Agency Operations			21,121				750			2,716.1				5,656				207			2,632.4
Other Operating Expenses - Other Operations			662				1,089			(39.2	)			59				488			(87.9	)
Total Benefits, Losses and Expenses			31,210				8,045			287.9				7,799				1,628			379.1
Income Before Provision for Income Taxes			2,092				2,037			2.7				524				(2,250	)		123.3
Provision For Income Taxes			2,132				(102	)		2,190.2				1,676				(1,700	)		198.6
Operating Income (Loss)			(40	)			2,139			(101.9	)			(1,152	)			(550	)		(109.5	)
Realized Investment Gains (Losses), Net of Tax			(24	)			(150	)		84.0				(56	)			2			(2,900.0	)
Net Income (Loss)		$	(64	)		$	1,989			(103.2	)		$	(1,208	)		$	(548	)		(120.4	)
Operating Income (Loss) Per Share - Diluted		$	(0.00	)		$	0.03			(101.9	)		$	(0.01	)		$	(0.01	)		(108.9	)
Net Income (Loss) Per Share - Diluted		$	(0.00	)		$	0.02			(103.2	)		$	(0.01	)		$	(0.01	)		(119.8	)
Operating Return on Equity			(0.1	%)			3.9	%
Return on Equity			(0.1	%)			3.7	%
Other Key Information
		12/31/05				12/31/04				% Change
Alfa Financial Corporation:
Loan Portfolio		$	124,502			$	110,905			12.3
Loan Portfolio Yield *			7.41	%			6.89	%
Loan Gross Charge-offs		$	778			$	780
Loan Net Charge-offs		$	649			$	688
Loan Delinquency Ratio *			1.44	%			1.19	%
MidCountry Financial Corporation:
Carrying Value (43% and 43% ownership at 12/31/05 and 12/31/04, respectively)		$	53,330			$	51,482			3.6
Equity in Net Earnings		$	1,154			$	540			113.7
Return on Carried Value *			2.2	%			2.1	%

Data may differ from actual due to rounding.

ALFA CORPORATION

CORPORATE SEGMENT AND ELIMINATIONS (UNAUDITED

(in thousands, except ratios and per share data)

		Twelve Months Ended December 31,											Three Months Ended December 31,
		2005				2004				% Change			2005				2004				% Change
INCOME STATEMENT
Revenues
Investment Loss		$	(1,387	)		$	(1,316	)		(5.4	)		$	(218	)		$	(279	)		21.9
Interest Expense			(2,869	)			(972	)		(195.2	)			(867	)			(436	)		(98.9	)
Total Net Investment Loss			(4,256	)			(2,288	)		(86.0	)			(1,085	)			(715	)		(51.7	)
Other Income			(12,048	)			(89	)		(13,437.1	)			(3,683	)			(19	)		(19,284.2	)
Total Revenues			(16,304	)			(2,377	)		(585.9	)			(4,768	)			(734	)		(549.6	)
Benefits, Losses and Expenses
Claims and Settlement Expenses			(1,663	)			—			(100.0	)			(650	)			—			(100.0	)
Amortization of Deferred Policy Acquisition Costs			(1,206	)			—			(100.0	)			(471	)			—			(100.0	)
Other Operating Expenses			(6,983	)			2,353			(396.8	)			(2,033	)			1,333			(252.5	)
Total Benefits, Claims, Losses and Settlement Expenses			(9,852	)			2,353			(518.7	)			(3,154	)			1,333			(336.6	)
Loss Before Provision for Income Taxes			(6,452	)			(4,730	)		(36.4	)			(1,614	)			(2,067	)		21.9
Provision For Income Taxes			340				7			4,757.1				588				7			8,300.0
Operating Loss			(6,792	)			(4,737	)		(43.4	)			(2,202	)			(2,074	)		(6.2	)
Realized Investment Gains, Net of Tax			—				(13	)		100.0				—				(13	)		100.0
Net Loss		$	(6,792	)		$	(4,750	)		(43.0	)		$	(2,202	)		$	(2,087	)		(5.5	)
Operating Loss Per Share - Diluted		$	(0.08	)		$	(0.06	)		(43.0	)		$	(0.03	)		$	(0.03	)		(5.5	)
Net Loss Per Share - Diluted		$	(0.08	)		$	(0.06	)		(42.6	)		$	(0.03	)		$	(0.03	)		(4.8	)

Data may differ from actual due to rounding.

ALFA CORPORATION

INVESTMENT PORTFOLIO

(in thousands, except ratios and per share data)

				Twelve Months Ended December 31,											Yields						Three Months Ended December 31,											Yields
				2005				2004				% Change			2005			2004			2005				2004				% Change			2005			2004
Alfa Corporation Consolidated Investment Portfolio - Other Key Information
Net Investment Income and Pre-tax Yield:
Fixed Income Securities				$	76,750			$	73,690			4.2			5.7	%		6.1	% 1		$	19,173			$	18,666			2.7			5.7	%		6.2	% 1
Equity Securities					2,912				2,931			(0.6	)		2.8	%		2.5	%			736				1,020			(27.8	)		2.8	%		3.5	%
Collateral Loans					9,008				7,588			18.7										2,515				2,005			25.4
Commercial Leases					6,220				11,722			(46.9	)									1,414				2,981			(52.6	)
Other Investment Income					19,775				13,631			45.1										5,560				6,017			(7.6	)
Interest Expense					(11,531	)			(6,691	)		(72.3	)									(3,375	)			(2,043	)		(65.2	)
Investment Expenses					(8,202	)			(13,510	)		39.3										(1,601	)			(6,173	)		74.1
Total Net Investment Income				$	94,932			$	89,361			6.2									$	24,422			$	22,473			8.7
Investment Portfolio Composition:				12/31/05				12/31/04
Fixed Income Securities, by Rating: 2
NAIC Rated		Moody’s Rated
1		Aaa/Aa/A		$	1,288,015			$	1,251,059			3.0
2		Baa			105,351				97,725			7.8
3		Ba			21,959				5,542			296.2
4		B			4,471				—			100.0
5		Caa			—				296			(100.0	)
6		In or near default			—				—			0.0
Total Fixed Income Securities					1,419,796				1,354,622			4.8
Equity Securities					107,020				99,701			7.3
Collateral Loans					124,667				110,793			12.5
Commercial Leases (Inc. Held for Sale Assets)					2,515				82,237			(96.9	)
Other Invested Assets					347,382				284,265			22.2
Total Investment Portfolio				$	2,001,380			$	1,931,618			3.6

¹ Yield on Fixed Income Securities is calculated as annualized income divided by the average of the beginning and end of period amortized investment balances for the same 12-month period, which exclude unrealized investment gains and losses.

² Investment Portfolio Composition values for Fixed Income Securities are based on fair value for available for sale securities and amortized value for held for investment securities.

Data may differ from actual due to rounding.

ALFA CORPORATION

QUARTERLY FINANCIAL SUPPLEMENT

December 31, 2005 (Unaudited)

Additional Information

		01:1Q		01:2Q		01:3Q		01:4Q		2001
Pretax P&C Net Investment Income		6,927,259		7,330,600		9,215,930		7,804,506		31,278,295
Pretax P&C Operating Income		11,832,832		17,381,869		16,226,126		16,910,149		62,350,976
P&C Statutory Invested Assets		529,832,002		542,658,849		551,514,402		557,002,373
P&C Statutory Surplus		247,200,509		256,612,057		262,006,890		269,364,456
P&C Loss & LAE Reserves		142,315,663		141,025,272		140,563,769		138,238,360
Pretax Life Net Investment Income		11,269,815		11,636,260		11,563,799		12,153,399		46,623,273
Pretax Life Operating Income		7,525,273		7,091,057		6,296,551		6,664,855		27,577,736
Life Statutory Invested Assets		684,373,729		694,337,995		696,793,901		708,305,716
Life Statutory Surplus		138,802,337		144,379,715		147,822,321		146,319,826
		02:1Q		02:2Q		02:3Q		02:4Q		2002
Pretax P&C Net Investment Income		7,747,433		8,375,695		7,176,169		7,134,749		30,434,046
Pretax P&C Operating Income		17,393,023		14,283,409		13,309,248		19,211,125		64,196,805
P&C Statutory Invested Assets		562,536,805		587,045,896		592,330,618		598,545,022
P&C Statutory Surplus		276,936,440		274,268,630		285,198,181		291,296,304
P&C Loss & LAE Reserves		140,547,346		144,370,368		145,867,486		145,808,225
Pretax Life Net Investment Income		11,482,042		11,673,726		12,057,548		12,076,982		47,290,298
Pretax Life Operating Income		6,038,921		6,493,899		6,928,507		6,748,195		26,209,522
Life Statutory Invested Assets		731,033,090		737,560,100		735,098,205		749,891,687
Life Statutory Surplus		141,999,217		133,026,858		127,697,259		132,468,334
		03:1Q		03:2Q		03:3Q		03:4Q		2003
Pretax P&C Net Investment Income		6,910,185		7,653,547		7,423,546		6,516,131		28,503,409
Pretax P&C Operating Income		20,276,043		16,813,874		16,415,815		16,120,258		69,625,990
P&C Statutory Invested Assets		619,015,221		626,103,044		640,677,141		643,775,395
P&C Statutory Surplus		300,514,053		308,384,829		314,946,117		323,362,342
P&C Loss & LAE Reserves (1)		144,689,722		145,691,012		147,585,697		139,589,753
Pretax Life Net Investment Income		11,534,769		10,948,305		10,843,170		11,408,366		44,734,610
Pretax Life Operating Income		5,630,299		6,071,633		5,514,256		9,528,981		26,745,169
Life Statutory Invested Assets		771,143,631		809,472,299		808,833,684		823,345,514
Life Statutory Surplus		127,075,494		130,374,293		133,237,013		144,834,065
		04:1Q		04:2Q		04:3Q		04:4Q		2004
Pretax P&C Net Investment Income		7,422,200		7,529,905		8,148,041		11,646,118		34,746,264
Pretax P&C Operating Income		26,792,114		19,926,490		21,346,862		22,743,798		90,809,264
P&C Statutory Invested Assets (2)		663,386,315		668,080,084		722,795,981		716,630,234
P&C Statutory Surplus		335,394,591		343,130,340		340,815,304		369,838,232
P&C Loss & LAE Reserves (1)		144,839,184		144,417,593		151,118,973		150,856,684
Pretax Life Net Investment Income		11,464,207		12,070,627		13,044,596		12,549,202		49,128,632
Pretax Life Operating Income		6,101,031		4,881,196		5,704,300		8,778,931		25,465,458
Life Statutory Invested Assets		850,439,601		865,246,778		876,301,256		890,441,591
Life Statutory Surplus		147,078,186		149,627,085		151,079,986		161,992,039
		05:1Q		05:2Q		05:3Q		05:4Q		2005
Pretax P&C Net Investment Income		9,310,764		8,926,932		11,232,799		10,729,178		40,199,673
Pretax P&C Operating Income		19,002,266		33,255,773		29,255,953		24,178,448		105,692,440
P&C Statutory Invested Assets (2)		705,855,331		715,563,873		720,574,977		733,114,630
P&C Statutory Surplus		372,285,887		385,401,304		398,052,284		407,475,146
P&C Loss & LAE Reserves (1)		145,569,327		141,926,723		149,282,527		157,988,560
Pretax Life Net Investment Income		12,226,938		13,061,800		12,661,842		13,012,004		50,962,584
Pretax Life Operating Income		7,722,260		7,001,604		6,004,445		9,749,301		30,477,610
Life Statutory Invested Assets		923,042,022		932,889,527		957,943,993		957,658,384
Life Statutory Surplus		163,786,697		167,102,347		171,890,971		177,189,239

(1) P&C Loss & LAE Reserves for fourth quarter 2003, fourth quarter 2004 and periods beginning in 2005 include salvage and subrogation receivables.

(2) P&C Statutory Invested Assets for fourth quarter 2004 and periods beginning in 2005 reflect a reclassification of premium installment plan receivables into Accounts Receivable.

Definitions of Non-GAAP, GAAP and Operating Measures

Management believes that disclosure of the following non-GAAP financial measures provides investors with meaningful tools to assess the Company’s ongoing operations. Our methods of calculating these measures may differ from those used by other companies, thereby limiting comparability.

Operating Income is defined as net income excluding realized investment gains and losses, net of applicable taxes. Management uses operating income as a measure of the Company’s ongoing profitability since it eliminates the effect of securities market volatility from earnings.

Operating Income per Share is defined as operating income divided by the weighted average shares outstanding for the reporting period. Management uses operating income per share as a measure of the Company’s ongoing profitability since it eliminates the effect of securities market volatility from earnings.

Operating Return on Equity (Current Period) is defined as operating income for the trailing 12-month period divided by the simple average of the beginning and ending stockholders’ equity of the same 12-month period.

Operating Return on Equity (Prior Period) is defined as operating income for the prior year divided by the simple average of the beginning and ending stockholders’ equity of the same 12-month period.

Return on Equity (Current Period) is defined as net income for the trailing 12-month period divided by the simple average of the beginning and ending stockholders’ equity of the same 12-month period.

Return on Equity (Prior Period) is defined as net income for the prior year divided by the simple average of the beginning and ending stockholders’ equity of the same 12-month period.

Management uses the following GAAP ratios to measure the Company’s ongoing operations. They are calculated as follows:

Loss Ratio is defined as incurred losses divided by earned premiums.

Loss Adjustment Expense Ratio is defined as loss adjustment expenses divided by earned premiums.

Operating Expense Ratio is defined as total operating expenses divided by earned premiums.

Combined Ratio is defined as the sum of the loss ratio, the loss adjustment expense ratio and the expense ratio or the sum of incurred losses, loss adjustment expenses and total operating expenses divided by earned premiums.

Management uses the following operating statistics to measure components of the Company’s ongoing operations. They are calculated as follows:

Lapse Ratio is defined as the number of policies lapsing as a percentage of billings produced during a stated time period.

Actual vs. Expected Mortality Ratio is defined as benefit payments divided by the actuarially estimated benefit payments for the stated time period.

Persistency Ratio is defined as the annualized premium of policies in force at the end of the period as a percentage of the annualized premium paid at the end of the period.

Loan Portfolio Yield is defined as annualized interest income divided by the loan portfolio balance.

Loan Delinquency Ratio is defined as the amount of loans 30 or more days past due divided by the loan portfolio balance.

Return on Carried Value is defined as equity in net earnings divided by the simple average of beginning and end of period carrying value.

Certain amounts in prior periods have been reclassified to conform to the presentation adopted in the current period. Such reclassifications did not impact earnings.