Exhibit 99.1

NEWS RELEASE

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

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

ALFA CORPORATION REPORTS FIRST QUARTER 2006 RESULTS

Montgomery, Alabama (April 25, 2006) — 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.

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Alfa Corporation Reports First Quarter Results

Page 2

April 25, 2006

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.

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ALFA Reports First Quarter Results

Page 3

April 25, 2006

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.

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ALFA Reports First Quarter Results

Page 4

April 25, 2006

ALFA CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS

		(Unaudited) March 31, 2006				December 31, 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 Shares authorized: 1,000,000 Issued: None			—				—			0.00	%
Common Stock, $1 par value Shares authorized: 110,000,000 Issued: 83,783,024 Outstanding: 80,325,651 in 2006 and 80,284,018 in 2005			83,783,024				83,783,024			0.00	%
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

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Corporate Communications, Inc.

523 Third Avenue South (Zip 37210)

Post Office Box 101190

Nashville, Tennessee 37224

615-254-3376 Phone

615-254-3420 Fax CorporateCommunications

TO:		Members of the Investment Community
FROM:		Eddie Jones
RE:		ALFA CORPORATION First-quarter Conference Call Invitation
DATE:		April 25, 2006

Attached is the first-quarter press release issued today by Alfa Corporation (Nasdaq:ALFA). This is being sent to you in preparation for tomorrow’s conference call:

The conference call is scheduled for Wednesday, April 26, at 10:30 a.m. Eastern time

(9:30 a.m. Central — 7:30 a.m. Pacific).

We have set up a special number for you to call for this conference:

— 800-289-0730 —

Confirmation Code: 7141133

Please plan to call at least ten minutes prior to the designated time so that management can begin promptly.

Alfa’s conference call also will be available live via Internet simulcast; a rebroadcast of the call will be available for 30 days. The links for both the simulcast and replay will be available at the Company’s Website, www.AlfaIns.com or from www.earnings.com.

A telephonic replay will be available about two hours after the call ends and run through the end of the business day on May 3. To listen, please dial (888) 203-1112 and enter 7141133 when prompted for the access code.

We appreciate your interest in Alfa Corporation and hope that providing this opportunity to review the quarterly results with management will prove useful to your ongoing coverage of the company.

Alfa Corporation

Investor Supplement

First Quarter 2006

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)

		Three Months Ended March 31,											Ratios
		2006				2005				% Change			2006			2005
INCOME STATEMENT
Revenues
Automobile Premiums		$	92,499			$	81,454			13.6
Homeowner Premiums			51,509				48,298			6.6
Other Premiums			3,408				3,029			12.5
Total Premiums - Property and Casualty Insurance			147,416				132,781			11.0			100.0	%		100.0	%
Net Investment Income			9,679				9,311			4.0
Other Income			3,414				1,896			80.1
Total Revenues			160,509				143,988			11.5
Benefits, Losses and Expenses
Incurred Losses (Non-storm)			82,009				76,444			7.3			55.6	%		57.6	%
Incurred Losses (Storm)			9,912				11,635			(14.8	)		6.7	%		8.8	%
Loss Adjustment Expense			7,044				4,559			54.5			4.8	%		3.4	%
Total Benefits, Claims, Losses and Settlement Expenses			98,965				92,638			6.8			67.1	%		69.8	%
Amortization of Deferred Policy Acquisition Costs			27,780				23,362			18.9			18.8	%		17.6	%
Other Operating Expenses			13,767				8,985			53.2			9.3	%		6.8	%
Total Operating Expenses			41,547				32,347			28.4			28.1	%		24.4	%
Total Benefits, Losses and Expenses			140,512				124,985			12.4			95.2	%		94.2	%
Income Before Provision for Income Taxes			19,997				19,003			5.2
Provision For Income Taxes			5,134				3,503			46.6
Operating Income *			14,863				15,500			(4.1	)
Realized Investment Gains (Losses), Net of Tax			(689	)			215			(420.5	)
Net Income		$	14,174			$	15,715			(9.8	)
Operating Income Per Share - Diluted *		$	0.18			$	0.19			(4.6	)
Net Income Per Share - Diluted		$	0.17			$	0.19			(10.3	)
Operating Return on Equity*			18.4	%			18.5	%
Return on Equity*			18.2	%			18.6	%
Other Key Information
Earned Premium by Region
Alabama		$	112,315			$	108,365			3.6			76.2	%		81.6	%
Georgia			8,595				8,263			4.0			5.8	%		6.2	%
Mississippi			10,441				9,489			10.0			7.1	%		7.2	%
VA Mutual			5,329				5,311			0.3			3.6	%		4.0	%
Vision			10,736				1,353			693.5			7.3	%		1.0	%
Total Earned Premium		$	147,416			$	132,781			11.0			100.0	%		100.0	%
Incurred Losses by Region (Non-storm)
Alabama		$	62,115			$	60,563			2.6			55.3	%		55.9	%
Georgia			5,514				6,124			(10.0	)		64.2	%		74.1	%
Mississippi			5,089				6,870			(25.9	)		48.7	%		72.4	%
VA Mutual			2,494				2,013			23.9			46.8	%		37.9	%
Vision			6,797				874			677.7			63.3	%		64.6	%
Total Incurred Losses		$	82,009			$	76,444			7.3			55.6	%		57.6	%
Lapse Ratio: Preferred and Standard Classes *			3.43	%			3.41	%
Net Written Premium by LOB
Automobile		$	108,589			$	95,717			13.4
Homeowner			50,855				54,254			(6.3	)
Other			4,535				4,353			4.2
Total Net Written Premium		$	163,979			$	154,324			6.3
Net Written Premium by Region
Alabama		$	116,452			$	112,314			3.7
Georgia			9,150				8,784			4.2
Mississippi			11,556				10,238			12.9
VA Mutual			4,425				15,295			(71.1	)
Vision			22,396				7,693			191.1
Total Net Written Premium		$	163,979			$	154,324			6.3

Data may differ from actual due to rounding.

ALFA CORPORATION

LIFE SEGMENT (UNAUDITED)

(in thousands, except ratios and per share data)

		Three Months Ended March 31,											Ratios
		2006				2005				% Change			2006			2005
INCOME STATEMENT
Revenues
Traditional Life Insurance Premiums		$	11,255			$	10,574			6.4
Universal Life Policy Charges			5,392				5,082			6.1
Universal Life Policy Charges - COLI			1,699				1,559			9.0
Interest-sensitive Life Policy Charges			2,741				2,689			1.9
Group Life Insurance Premiums			491				517			(5.0	)
Total Premiums and Policy Charges - Life Insurance			21,578				20,421			5.7			100.0	%		100.0	%
Net Investment Income			13,590				12,227			11.1
Other Income			—				—			0.0
Total Revenues			35,168				32,648			7.7
Benefits, Claims, Losses and Settlement Expenses			19,981				18,383			8.7			92.6	%		90.0	%
Dividends to Policyholders			1,115				1,077			3.5			5.2	%		5.3	%
Amortization of Deferred Policy Acquisition Costs			2,945				2,474			19.0			13.6	%		12.1	%
Other Operating Expenses			4,015				2,990			34.3			18.6	%		14.6	%
Total Benefits, Losses and Expenses			28,056				24,924			12.6			130.0	%		122.0	%
Income Before Provision for Income Taxes			7,112				7,724			(7.9	)
Provision For Income Taxes			2,234				2,610			(14.4	)
Operating Income			4,878				5,114			(4.6	)
Realized Investment Gains, Net of Tax			771				511			50.9
Net Income		$	5,649			$	5,625			0.4
Operating Income Per Share - Diluted		$	0.06			$	0.06			(5.1	)
Net Income Per Share - Diluted		$	0.07			$	0.07			(0.1	)
Operating Return on Equity			7.1	%			7.2	%
Return on Equity			8.5	%			8.5	%
Other Key Information (all information presented on a STAT-basis)
Annualized New Business Premium by LOB
Traditional Life		$	4,231			$	2,005			111.0
Universal Life			1,106				1,384			(20.1	)
Interest-sensitive Life			597				660			(9.5	)
Total Issued New Business Premium by LOB		$	5,934			$	4,049			46.6
Annualized New Business Premium by Region
Alabama		$	5,195			$	3,503			48.3
Georgia			406				303			34.0
Mississippi			333				243			37.0
Total Issued New Business Premium by Region		$	5,934			$	4,049			46.6
Actual vs. Expected Mortality Ratio *			99	%			90	%
Persistency Ratio *			91.4	%			91.3	%

Data may differ from actual due to rounding.

ALFA CORPORATION

NONINSURANCE SEGMENT (UNAUDITED)

(in thousands, except ratios and per share data)

		Three Months Ended March 31,
		2006				2005				% Change
INCOME STATEMENT
Revenues
Equity Interest in MidCountry Financial (net of expense)		$	514			$	823			(37.5	)
Loan Income (net of expense)			1,155				957			20.7
Other Net Investment Income			162				557			(70.9	)
Total Net Investment Income			1,831				2,337			(21.7	)
Fee/Commission Income - Agency Operations			10,810				6,375			69.6
Other Income			345				440			(21.6	)
Total Other Income			11,155				6,815			63.7
Total Revenues			12,986				9,152			41.9
Benefits, Losses and Expenses
Claims and Settlement Expenses - Agency Operations			733				739			(0.8	)
Other Operating Expenses - Loan/Lease Operations			1,274				1,693			(24.7	)
Other Operating Expenses - Agency Operations			9,044				5,511			64.1
Other Operating Expenses - Other Operations			345				(47	)		834.0
Total Benefits, Losses and Expenses			11,396				7,896			44.3
Income Before Provision for Income Taxes			1,590				1,256			26.6
Provision For Income Taxes			589				374			57.5
Operating Income			1,001				882			13.5
Realized Investment Gains (Losses), Net of Tax			—				—			0.0
Net Income		$	1,001 $				882			13.5
Operating Income Per Share - Diluted		$	0.01			$	0.01			12.9
Net Income Per Share - Diluted		$	0.01			$	0.01			12.9
Operating Return on Equity			0.1	%			-0.1	%
Return on Equity			0.1	%			-0.1	%
Other Key Information
		3/31/06				3/31/05				% Change
Alfa Financial Corporation:
Loan Portfolio		$	127,210			$	113,060			12.5
Loan Portfolio Yield *			7.51	%			6.97	%
Loan Gross Charge-offs		$	172			$	166
Loan Net Charge-offs		$	134			$	136
Loan Delinquency Ratio *			1.12	%			1.07	%
MidCountry Financial Corporation:
Carrying Value (43% and 43% ownership at 3/31/06 and 3/31/05, respectively)		$	53,910			$	52,747			2.2
Equity in Net Earnings		$	514			$	823			(37.5	)
Return on Carried Value *			3.8	%			6.3	%

Data may differ from actual due to rounding.

ALFA CORPORATION

CORPORATE SEGMENT AND ELIMINATIONS (UNAUDITED)

(in thousands, except ratios and per share data)

		Three Months Ended March 31,
		2006				2005				% Change
INCOME STATEMENT
Revenues
Investment Loss		$	(201	)		$	(391	)		48.6
Interest Expense			(923	)			(504	)		(83.1	)
Total Net Investment Loss			(1,124	)			(895	)		(25.6	)
Other Income			(7,199	)			(1,622	)		(343.8	)
Total Revenues			(8,323	)			(2,517	)		(230.7	)
Benefits, Losses and Expenses
Claims and Settlement Expenses			(859	)			(32	)		(2,584.4	)
Amortization of Deferred Policy Acquisition Costs			—				—			0.0
Other Operating Expenses			(6,408	)			(1,836	)		(249.0	)
Total Benefits, Claims, Losses and Settlement Expenses			(7,267	)			(1,868	)		(289.0	)
Loss Before Provision for Income Taxes			(1,056	)			(649	)		(62.7	)
Provision For Income Taxes			(370	)			—			(100.0	)
Operating Income (Loss)			(686	)			(649	)		(5.7	)
Realized Investment Gains (Losses), Net of Tax			—				—			0.0
Net Income (Loss)		$	(686	)		$	(649	)		(5.7	)
Operating Income (Loss) Per Share - Diluted		$	(0.01	)		$	(0.01	)		(5.1	)
Net Income (Loss) Per Share - Diluted		$	(0.01	)		$	(0.01	)		(5.1	)

Data may differ from actual due to rounding.

ALFA CORPORATION

INVESTMENT PORTFOLIO

(in thousands, except ratios and per share data)

				Three Months Ended March 31,
				2006				2005				% Change
Alfa Corporation Consolidated Investment Portfolio - Other Key Information
															Yields
															2006			2005
Net Investment Income and Pre-tax Yield:
Fixed Income Securities				$	19,458			$	18,700			4.1			5.6	%		5.7	%1
Equity Securities					964				550			75.3			3.6	%		2.2	%
Collateral Loans					2,343				1,920			22.0
Commercial Leases					48				1,576			(97.0	)
Other Investment Income					5,846				4,996			17.0
Interest Expense					(3,422	)			(2,326	)		(47.1	)
Investment Expenses					(1,261	)			(2,436	)		48.2
Total Net Investment Income				$	23,976			$	22,980			4.3
				3/31/06				12/31/05
Investment Portfolio Composition:
Fixed Income Securities, by Rating:2
NAIC Rated		Moody’s Rated
1		Aaa/Aa/A		$	1,323,292			$	1,288,015			2.7
2		Baa			92,806				105,351			(11.9	)
3		Ba			20,947				21,959			(4.6	)
4		B			3,000				4,471			(32.9	)
5		Caa			—				—			0.0
6		In or near default			—				—			0.0
Total Fixed Income Securities					1,440,045				1,419,796			1.4
Equity Securities					113,497				107,020			6.1
Collateral Loans					127,461				124,667			2.2
Commercial Leases					2,049				2,515			(18.5	)
Other Invested Assets					371,220				347,382			6.9
Total Investment Portfolio				$	2,054,272			$	2,001,380			2.6

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

March 31, 2006 (Unaudited)

Additional Information

		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
		06:1Q		06:2Q		06:3Q		06:4Q		2006
Pretax P&C Net Investment Income		9,678,917								9,678,917
Pretax P&C Operating Income		19,996,255								19,996,255
P&C Statutory Invested Assets (2)		781,525,886
P&C Statutory Surplus		410,789,564
P&C Loss & LAE Reserves (1)		163,390,031
Pretax Life Net Investment Income		13,590,101								13,590,101
Pretax Life Operating Income		7,113,633								7,113,633
Life Statutory Invested Assets		1,002,957,159
Life Statutory Surplus		182,409,009

⁽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.