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 SECOND QUARTER 2006 RESULTS

Montgomery, Alabama (August 4, 2006) — Alfa Corporation (NASDAQ:ALFA) today announced financial results for the three and six months ended June 30, 2006. Operating income for the quarter was $24,428,642, or $0.30 per diluted share, compared with operating income of $27,332,929, or $0.34 per diluted share, for the second quarter of 2005, a per share decrease of 11.3%. Net income, which includes net realized investment gains, was $25,508,448, or $0.31 per diluted share, for the second quarter of 2006, compared with $28,555,161, or $0.35 per diluted share in 2005, a per share decrease of 11.4%. Premiums and policy charges for the second quarter of 2006 increased 9.5% to $170,853,431.

The financial results for the three months ended June 30, 2006, included the write off of approximately $5,490,000 of loans in Alfa Financial Corporation, a wholly owned subsidiary of Alfa Corporation. This write-off reduced net income by approximately $3,568,000, or $0.04 per diluted share, for the second quarter of 2006. As previously announced, during the second quarter the Company detected irregularities in certain loan transactions within Alfa Financial Corporation. As a result of these findings, the Company initiated an intense investigation, the timing of which caused a delay in the previously scheduled earnings release. This investigation was conducted with the assistance of special legal counsel and outside forensic accountants, who determined that these fraudulent transactions were limited to the acts of a single agent. Although, there is the potential for a partial insurance recovery and recoveries from civil actions the amount and timing of these cannot be estimated at this time.

For the six months ended June 30, 2006, operating income was $44,483,721 compared with operating income of $48,177,076 for the first six months of 2005. On a per share basis, operating income decreased 8.3% to $0.55 per diluted share for the six-month period in 2006 compared with $0.60 per diluted share for the same period in 2005. After net realized investment gains, net income was $45,645,890, or $0.56 per diluted share, for the first six months of 2006, compared with net income of $50,125,505, or $0.62 per diluted share, for the same period in 2005, a per share decrease of 9.5%. Premiums and policy charges increased 9.9% to $339,847,894 for the first six months of 2006.

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Alfa Reports Second-Quarter Results

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August 4, 2006

Alfa’s Chairman, President and Chief Executive Officer, Jerry A. Newby, said, “With the exception of this unfortunate incident, we posted solid financial results for another quarter. We worked swiftly and diligently to determine the nature and scope of these fraudulent transactions. We committed a great deal of time and resources to the implementation, documentation and testing of our control environment. As a result, I am confident that we have identified the full extent of this activity and taken appropriate measures to ensure that this situation has been remedied. We believe Alfa is made up of an outstanding group of dedicated employees who are committed to excellence, integrity, and exceeding customer expectations. The acts of one individual do not change this.”

Alfa Corporation will host a conference call on Friday, August 4, at 10:30 a.m. Eastern time. Investors and other interested parties may access the teleconference by calling 1-800-475-3716 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 Global Select Market under the symbol ALFA.

The associated investor supplement package for the second quarter ended June 30, 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/2q06fsq.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 Second-Quarter Results

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August 4, 2006

ALFA CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(UNAUDITED)

		Six Months Ended June 30,							Statistics				Three Months Ended June 30,
		2006		2005		% Change			2006		2005		2006		2005		% Change
Revenues
Premiums – Property and Casualty Insurance		298,250,971		270,950,049		10.08							150,835,039		138,169,019		9.17
Premiums – Life Insurance		22,839,703		20,303,738		12.49							11,093,850		9,212,787		20.42
Policy Charges – Life Insurance		18,757,220		18,023,169		4.07							8,924,542		8,693,743		2.65
Net Investment Income		40,800,741		45,894,589		(11.10	)						16,825,077		22,914,262		(26.57	)
Other Income		13,404,208		11,935,287		12.31							6,034,463		4,846,210		24.52
Total Revenues		394,052,843		367,106,832		7.34							193,712,971		183,836,021		5.37
Benefits and Expenses
Benefits & Settlement Expenses		228,131,475		213,258,810		6.97			57.90		58.09		109,311,786		101,530,231		7.66
Dividends to Policyholders		2,085,958		2,021,825		3.17			0.53		0.55		970,959		944,351		2.82
Amortization of Deferred Policy Acquisition Costs		61,250,061		53,529,672		14.42			15.54		14.58		30,525,438		27,693,546		10.23
Other Operating Expenses		41,765,883		32,514,038		28.45			10.60		8.86		19,728,392		15,217,483		29.64
Total Expenses		333,233,377		301,324,345		10.59			84.57		82.08		160,536,575		145,385,611		10.42
Income Before Provision for Income Taxes		60,819,466		65,782,487		(7.54	)		15.43		17.92		33,176,396		38,450,410		(13.72	)
Provision For Income Taxes		16,335,745		17,605,411		(7.21	)		26.86		26.76		8,747,754		11,117,481		(21.32	)
Operating Income		44,483,721		48,177,076		(7.67	)						24,428,642		27,332,929		(10.63	)
Realized Investment Gains, Net of Tax		1,162,169		1,948,429		(40.35	)						1,079,806		1,222,232		(11.65	)
Net Income		45,645,890		50,125,505		(8.94	)						25,508,448		28,555,161		(10.67	)
Operating Income Per Share – Basic		0.55		0.60		(7.89	)						0.30		0.34		(10.90	)
Operating Income Per Share – Diluted		0.55		0.60		(8.26	)						0.30		0.34		(11.33	)
Net Income Per Share – Basic		0.57		0.63		(9.15	)						0.32		0.36		(10.94	)
Net Income Per Share – Diluted		0.56		0.62		(9.52	)						0.31		0.35		(11.37	)
Dividends Per Share		0.2100		0.1875		12.00							0.1100		0.1000		10.00
Average Shares Outstanding – Basic		80,315,256		80,124,054		0.24							80,325,375		80,082,617		0.30
Average Shares Outstanding – Diluted		81,131,983		80,609,351		0.65							81,179,210		80,538,612		0.80

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 Second-Quarter Results

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August 4, 2006

ALFA CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS

		(Unaudited)
		June 30, 2006				December 31, 2005(1)				% Change
Assets
Investments:
Fixed Maturities Held for Investment, at amortized cost (fair value $82,106 in 2006 and $93,578 in 2005)		$	78,525			$	88,330			-11.10	%
Fixed Maturities Available for Sale, at fair value (amortized cost $1,450,244,708 in 2006 and $1,394,823,078 in 2005)			1,434,502,184				1,419,708,095			1.04	%
Equity Securities Available for Sale, at fair value (cost $105,310,910 in 2006 and $96,668,040 in 2005)			110,639,970				107,020,104			3.38	%
Policy Loans			63,370,356				62,101,204			2.04	%
Collateral Loans			129,945,844				124,667,449			4.23	%
Commercial Leases			1,758,334				2,515,084			-30.09	%
Other Long-Term Investments			86,157,287				61,961,072			39.05	%
Other Long-Term Investments in Affiliates			129,918,602				138,457,224			-6.17	%
Short-Term Investments			85,512,290				84,861,880			0.77	%
Total Investments			2,041,883,392				2,001,380,442			2.02	%
Cash			31,296,647				37,228,639			-15.93	%
Accrued Investment Income			17,362,196				16,858,408			2.99	%
Accounts Receivable			88,188,127				72,622,465			21.43	%
Reinsurance Balances Receivable			6,375,002				6,648,204			-4.11	%
Deferred Policy Acquisition Costs			221,649,127				204,253,919			8.52	%
Goodwill			13,924,306				13,924,306			0.00	%
Other Intangible Assets (net of accumulated amortization of $1,025,100 in 2006 and $683,400 in 2005)			8,082,900				8,424,600			-4.06	%
Other Assets			21,983,684				20,478,836			7.35	%
Total Assets		$	2,450,745,381			$	2,381,819,819			2.89	%
Liabilities and Stockholders’ Equity
Policy Liabilities and Accruals—Property and Casualty Insurance		$	162,696,323			$	159,639,886			1.91	%
Policy Liabilities and Accruals—Life Insurance Interest-Sensitive Products			631,593,992				600,994,074			5.09	%
Policy Liabilities and Accruals—Life Insurance Other Products			201,989,039				197,140,294			2.46	%
Unearned Premiums			244,001,163				220,456,047			10.68	%
Dividends to Policyholders			11,566,567				11,662,085			-0.82	%
Premium Deposit and Retirement Deposit Funds			5,353,533				5,741,071			-6.75	%
Deferred Income Taxes			14,781,872				29,118,958			-49.24	%
Other Liabilities			82,503,896				74,147,175			11.27	%
Due to Affiliates			16,313,672				22,249,975			-26.68	%
Commercial Paper			215,762,599				213,790,443			0.92	%
Notes Payable			70,000,000				70,000,000			0.00	%
Notes Payable to Affiliates			32,395,419				20,887,635			55.09	%
Total Liabilities			1,688,958,075				1,625,827,643			3.88	%
Commitments and Contingencies
Stockholders’ Equity:
Preferred Stock, $1 par value			—				—			0.00	%
Shares authorized: 1,000,000
Issued: None
Common Stock, $1 par value			83,783,024				83,783,024			0.00	%
Shares authorized: 110,000,000
Issued: 83,783,024
Outstanding: 80,273,355 in 2006 and 80,284,018 in 2005
Capital in Excess of Par Value			25,204,499				21,171,462			19.05	%
Accumulated Other Comprehensive Income			(4,585,930	)			21,699,859			-121.13	%
(unrealized gains (losses) on securities available for sale, net of tax of ($4,066,294) in 2006 and $22,105,684 in 2005; unrealized gains (losses) on interest rate swap contract, net of tax of $308,116 in 2006 and ($11,265) in 2005; unrealized (losses) on other long-term investments, net of tax of ($827,752) in 2006 and ($394,560) in 2005)
Retained Earnings			696,282,867				667,535,056			4.31	%
Treasury Stock, at cost			(38,897,154	)			(38,197,225	)		1.83	%
(shares, 3,509,669 in 2006 and 3,499,006 in 2005)
Total Stockholders’ Equity			761,787,306				755,992,176			0.77	%
Total Liabilities and Stockholders’ Equity		$	2,450,745,381			$	2,381,819,819			2.89	%
Book Value per share		$	9.49			$	9.42

⁽¹⁾ Derived from audited financial statements

–END–

Alfa Corporation

Investor Supplement

Second 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)

		Six Months Ended June 30,											Ratios						Three Months Ended June 30,											Ratios
		2006				2005				% Change			2006			2005			2006				2005				% Change			2006			2005
INCOME STATEMENT
Revenues
Automobile Premiums		$	187,480			$	166,852			12.4									$	94,981			$	85,398			11.2
Homeowner Premiums			102,849				96,496			6.6										51,341				48,944			4.9
Other Premiums			7,922				7,602			4.2										4,513				3,827			17.9
Total Premiums - Property and Casualty Insurance			298,251				270,950			10.1			100.0	%		100.0	%			150,835				138,169			9.2			100.0	%		100.0	%
Net Investment Income			18,547				18,238			1.7										8,868				8,927			(0.7	)
Other Income			6,833				4,222			61.8										3,419				2,326			47.0
Total Revenues			323,631				293,410			10.3										163,122				149,422			9.2
Benefits, Losses and Expenses
Incurred Losses (Non-storm)			159,882				153,868			3.9			53.6	%		56.8	%			77,871				77,423			0.6			51.6	%		56.0	%
Incurred Losses (Storm)			13,805				11,635			18.7			4.6	%		4.3	%			3,893				—			100.0			2.6	%		0.0	%
Loss Adjustment Expense			14,548				10,456			39.1			4.9	%		3.9	%			7,504				5,897			27.3			5.0	%		4.3	%
Total Benefits, Claims, Losses and Settlement Expenses			188,235				175,959			7.0			63.1	%		65.0	%			89,268				83,320			7.1			59.2	%		60.3	%
Amortization of Deferred Policy Acquisition Costs			56,143				48,697			15.3			18.8	%		18.0	%			28,363				25,335			12.0			18.8	%		18.3	%
Other Operating Expenses			26,730				16,497			62.0			9.0	%		6.1	%			12,963				7,511			72.6			8.6	%		5.4	%
Total Operating Expenses			82,873				65,194			27.1			27.8	%		24.1	%			41,326				32,846			25.8			27.4	%		23.7	%
Total Benefits, Losses and Expenses			271,108				241,153			12.4			90.9	%		89.1	%			130,594				116,166			12.4			86.6	%		84.0	%
Income Before Provision for Income Taxes			52,523				52,257			0.5										32,528				33,256			(2.2	)
Provision For Income Taxes			13,925				12,719			9.5										8,791				9,216			(4.6	)
Operating Income *			38,598				39,538			(2.4	)									23,737				24,040			(1.3	)
Realized Investment Gains (Losses), Net of Tax			(1,014	)			211			(580.6	)									(325	)			(4	)		(8,025.0	)
Net Income		$	37,584			$	39,749			(5.4	)								$	23,412			$	24,036			(2.6	)
Operating Income Per Share - Diluted *		$	0.48			$	0.49			(3.0	)								$	0.29			$	0.30			(2.0	)
Net Income Per Share- Diluted		$	0.46			$	0.49			(6.1	)								$	0.29			$	0.30			(3.4	)
Operating Return on Equity*			17.3	%			18.5	%
Return on Equity*			17.1	%			18.6	%
Other Key Information
Earned Premium by Region
Alabama		$	225,249			$	218,372			3.1			75.5	%		80.6	%		$	112,934			$	110,007			2.7			74.9	%		79.6	%
Georgia			17,256				16,649			3.6			5.8	%		6.1	%			8,661				8,385			3.3			5.7	%		6.1	%
Mississippi			21,217				19,347			9.7			7.1	%		7.1	%			10,776				9,859			9.3			7.1	%		7.1	%
VA Mutual			10,705				10,787			(0.8	)		3.6	%		4.0	%			5,376				5,476			(1.8	)		3.6	%		4.0	%
Vision			23,824				5,795			311.1			8.0	%		2.1	%			13,088				4,442			194.6			8.7	%		3.2	%
Total Earned Premium		$	298,251			$	270,950			10.1			100.0	%		100.0	%		$	150,835			$	138,169			9.2			100.0	%		100.0	%
Incurred Losses by Region (Non-storm)
Alabama		$	120,125			$	120,687			(0.5	)		53.3	%		55.3	%		$	58,009			$	60,826			(4.6	)		51.4	%		55.3	%
Georgia			10,706				12,592			(15.0	)		62.0	%		75.6	%			5,192				6,575			(21.0	)		59.9	%		78.4	%
Mississippi			9,550				12,220			(21.8	)		45.0	%		63.2	%			4,461				4,540			(1.7	)		41.4	%		46.0	%
VA Mutual			4,438				4,777			(7.1	)		41.5	%		44.3	%			1,944				2,764			(29.7	)		36.2	%		50.5	%
Vision			15,063				3,592			319.3			63.2	%		62.0	%			8,265				2,718			204.1			63.1	%		61.2	%
Total Incurred Losses		$	159,882			$	153,868			3.9			53.6	%		56.8	%		$	77,871			$	77,423			0.6			51.6	%		56.0	%
Lapse Ratio: Preferred and Standard Classes *			3.35	%			3.31	%												3.27	%			3.21	%
Net Written Premium by LOB
Automobile		$	202,594			$	183,187			10.6									$	94,005			$	86,586			8.6
Homeowner			107,526				107,817			(0.3	)									56,671				54,446			4.1
Other			9,279				8,640			7.4										4,744				4,287			10.7
Total Net Written Premium		$	319,399			$	299,644			6.6									$	155,420			$	145,319			7.0
Net Written Premium by Region
Alabama		$	232,735			$	225,980			3.0									$	116,283			$	113,665			2.3
Georgia			17,727				17,079			3.8										8,577				8,295			3.4
Mississippi			23,915				20,270			18.0										12,360				10,033			23.2
VA Mutual			9,389				20,467			(54.1	)									4,964				5,172			(4.0	)
Vision			35,633				15,848			124.8										13,236				8,154			62.3
Total Net Written Premium		$	319,399			$	299,644			6.6									$	155,420			$	145,319			7.0

Data may differ from actual due to rounding.

ALFA CORPORATION

LIFE SEGMENT (UNAUDITED)

(in thousands, except ratios and per share data)

		Six Months Ended June 30,											Ratios						Three Months Ended June 30,											Ratios
		2006				2005				% Change			2006			2005			2006				2005				% Change			2006			2005
INCOME STATEMENT
Revenues
Traditional Life Insurance Premiums		$	22,349			$	19,787			12.9									$	11,094			$	9,213			20.4
Universal Life Policy Charges			10,795				10,280			5.0										5,403				5,198			3.9
Universal Life Policy Charges - COLI			2,478				2,262			9.5										779				703			10.8
Interest-sensitive Life Policy Charges			5,484				5,481			0.1										2,742				2,792			(1.8	)
Group Life Insurance Premiums			491				517			(5.0	)									—				—			0.0
Total Premiums and Policy Charges - Life Insurance			41,597				38,327			8.5			100.0	%		100.0	%			20,018				17,906			11.8			100.0	%		100.0	%
Net Investment Income			27,306				25,289			8.0										13,716				13,062			5.0
Other Income			—							0.0										—				—			0.0
Total Revenues			68,903				63,616			8.3										33,734				30,968			8.9
Benefits, Claims, Losses and Settlement Expenses			40,248				36,272			11.0			96.8	%		94.6	%			20,267				17,888			13.3			101.2	%		99.9	%
Dividends to Policyholders			2,086				2,022			3.2			5.0	%		5.3	%			971				944			2.9			4.9	%		5.3	%
Amortization of Deferred Policy Acquisition Costs			5,894				5,167			14.1			14.2	%		13.5	%			2,950				2,693			9.5			14.7	%		15.0	%
Other Operating Expenses			6,778				5,431			24.8			16.3	%		14.2	%			2,763				2,441			13.2			13.8	%		13.6	%
Total Benefits, Losses and Expenses			55,006				48,892			12.5			132.3	%		127.6	%			26,951				23,966			12.5			134.6	%		133.8	%
Income Before Provision for Income Taxes			13,897				14,724			(5.6	)									6,783				7,002			(3.1	)
Provision For Income Taxes			4,308				4,588			(6.1	)									2,074				1,978			4.9
Operating Income			9,589				10,136			(5.4	)									4,709				5,024			(6.3	)
Realized Investment Gains, Net of Tax			2,204				1,736			27.0										1,433				1,225			17.0
Net Income		$	11,793			$	11,872			(0.7	)								$	6,142			$	6,249			(1.7	)
Operating Income Per Share - Diluted		$	0.12			$	0.13			(6.0	)								$	0.06			$	0.06			(7.0	)
Net Income Per Share - Diluted		$	0.15			$	0.15			(1.3	)								$	0.08			$	0.08			(2.5	)
Operating Return on Equity			6.9	%			7.2	%
Return on Equity			8.3	%			8.5	%
Other Key Information (all information presented on a STAT-basis)
Annualized New Business Premium by LOB
Traditional Life		$	7,188			$	4,007			79.4									$	2,956			$	2,002			47.7
Universal Life			1,913				2,300			(16.8	)									807				916			(11.9	)
Interest-sensitive Life			1,050				1,252			(16.1	)									453				593			(23.6	)
Total Issued New Business Premium by LOB		$	10,151			$	7,559			34.3									$	4,216			$	3,511			20.1
Annualized New Business Premium by Region
Alabama		$	8,790			$	6,497			35.3									$	3,595			$	2,994			20.1
Georgia			720				542			32.8										314				240			30.8
Mississippi			641				520			23.3										307				277			10.8
Total Issued New Business Premium by Region		$	10,151			$	7,559			34.3									$	4,216			$	3,511			20.1
Actual vs. Expected Mortality Ratio *			101	%			87	%												106	%			85	%
Persistency Ratio *			91.2	%			91.0	%

Data may differ from actual due to rounding.

ALFA CORPORATION

NONINSURANCE SEGMENT (UNAUDITED)

(in thousands, except ratios and per share data)

		Six Months Ended June 30,											Three Months Ended June 30,
		2006				2005				% Change			2006				2005			% Change
INCOME STATEMENT
Revenues
Equity Interest in MidCountry Financial (net of expense)		$	803			$	907			(11.5	)		$	288			$	84		242.9
Loan Income (net of expense)			(3,318	)			2,089			(258.8	)			(4,473	)			1,131		(495.5	)
Other Net Investment Income			4				1,204			(99.7	)			(157	)			647		(124.3	)
Total Net Investment Income			(2,511	)			4,200			(159.8	)			(4,342	)			1,862		(333.2	)
Fee/Commission Income - Agency Operations			18,728				11,834			58.3				7,917				5,459		45.0
Other Income			662				759			(12.8	)			318				319		(0.3	)
Total Other Income			19,390				12,593			54.0				8,235				5,778		42.5
Total Revenues			16,879				16,793			0.5				3,893				7,640		(49.0	)
Benefits, Losses and Expenses
Claims and Settlement Expenses - Agency Operations			1,624				1,492			8.8				891				754		18.2
Other Operating Expenses - Loan/Lease Operations			2,344				3,337			(29.8	)			1,070				1,644		(34.9	)
Other Operating Expenses - Agency Operations			15,226				10,238			48.7				6,182				4,727		30.8
Other Operating Expenses - Other Operations			366				141			159.6				20				188		(89.4	)
Total Benefits, Losses and Expenses			19,560				15,208			28.6				8,163				7,313		11.6
Income Before Provision for Income Taxes			(2,681	)			1,585			(269.1	)			(4,270	)			327		(1,405.8	)
Provision For Income Taxes			(875	)			501			(274.7	)			(1,464	)			127		(1,252.8	)
Operating Income			(1,806	)			1,084			(266.6	)			(2,806	)			200		(1,503.0	)
Realized Investment Gains (Losses), Net of Tax			(27	)			2			(1,450.0	)			(27	)			2		(1,450.0	)
Net Income		$	(1,833	)		$	1,086			(268.8	)		$	(2,833	)		$	202		(1,502.5	)
Operating Income Per Share - Diluted		$	(0.02	)		$	0.01			(265.5	)		$	(0.03	)		$	0.00		(1,491.9	)
Net Income Per Share - Diluted		$	(0.02	)		$	0.01			(267.7	)		$	(0.03	)		$	0.00		(1,491.4	)
Operating Return on Equity			0.8	%			(0.1	%)
Return on Equity			0.7	%			(0.1	%)
Other Key Information
		6/30/06				6/30/05				% Change
Alfa Financial Corporation:
Loan Portfolio		$	129,674			$	117,323			10.5
Loan Portfolio Yield *			7.66	%			7.16	%
Loan Gross Charge-offs		$	506			$	349
Loan Net Charge-offs		$	5,958			$	281
Loan Delinquency Ratio *			1.36	%			1.25	%
MidCountry Financial Corporation:
Carrying Value (42% and 43% ownership at 6/30/06 and 6/30/05, respectively)		$	54,320			$	52,959			2.6
Equity in Net Earnings		$	803			$	907			(11.5	)
Return on Carried Value *			3.0	%			3.4	%

Data may differ from actual due to rounding.

ALFA CORPORATION

CORPORATE SEGMENT AND ELIMINATIONS (UNAUDITED)

(in thousands, except ratios and per share data)

		Six Months Ended June 30,											Three Months Ended June 30,
		2006				2005				% Change			2006				2005				% Change
INCOME STATEMENT
Revenues
Investment Loss		$	(474	)		$	(727	)		34.8			$	(273	)		$	(337	)		19.0
Interest Expense			(2,068	)			(1,104	)		(87.3	)			(1,144	)			(600	)		(90.7	)
Total Net Investment Loss			(2,542	)			(1,831	)		(38.8	)			(1,417	)			(937	)		(51.2	)
Other Income			(12,819	)			(4,881	)		(162.6	)			(5,620	)			(3,259	)		(72.4	)
Total Revenues			(15,361	)			(6,712	)		(128.9	)			(7,037	)			(4,196	)		(67.7	)
Benefits, Losses and Expenses
Claims and Settlement Expenses			(1,974	)			(464	)		(325.4	)			(1,115	)			(432	)		(158.1	)
Amortization of Deferred Policy Acquisition Costs			(787	)			(335	)		(134.9	)			(787	)			(335	)		(134.9	)
Other Operating Expenses			(9,677	)			(3,130	)		(209.2	)			(3,269	)			(1,294	)		(152.6	)
Total Benefits, Claims, Losses and Settlement Expenses			(12,438	)			(3,929	)		(216.6	)			(5,171	)			(2,061	)		(150.9	)
Loss Before Provision for Income Taxes			(2,923	)			(2,783	)		(5.0	)			(1,866	)			(2,135	)		12.6
Provision For Income Taxes			(1,022	)			(203	)		(403.4	)			(653	)			(203	)		(221.7	)
Operating Income (Loss)			(1,901	)			(2,580	)		26.3				(1,213	)			(1,932	)		37.2
Realized Investment Gains (Losses), Net of Tax			—				—			0.0				—				—			0.0
Net Income (Loss)		$	(1,901	)		$	(2,580	)		26.3			$	(1,213	)		$	(1,932	)		37.2
Operating Income (Loss) Per Share - Diluted		$	(0.02	)		$	(0.03	)		26.8			$	(0.01	)		$	(0.02	)		37.7
Net Income (Loss) Per Share - Diluted		$	(0.02	)		$	(0.03	)		26.8			$	(0.01	)		$	(0.02	)		37.7

Data may differ from actual due to rounding.

ALFA CORPORATION

INVESTMENT PORTFOLIO

(in thousands, except ratios and per share data)

				Six Months Ended June 30,											Yields						Three Months Ended June 30,											Yields
				2006				2005				% Change			2006			2005			2006				2005				% Change			2006			2005
Alfa Corporation Consolidated Investment Portfolio - Other Key Information
Net Investment Income and Pre-tax Yield:
Fixed Income Securities				$	38,952			$	38,326			1.6			5.6	%		5.9	%		$	19,495			$	19,626			(0.7	)		5.6	%		6.0	%1
Equity Securities					2,277				1,442			57.9			4.2	%		2.7	%			1,313				892			47.2			4.8	%		3.3	%
Collateral Loans					4,933				3,961			24.5										2,590				2,041			26.9
Commercial Leases					94				3,145			(97.0	)									46				1,569			(97.1	)
Other Investment Income					10,627				8,443			25.9										4,782				3,447			38.7
Interest Expense					(7,268	)			(4,957	)		(46.6	)									(3,846	)			(2,631	)		(46.2	)
Investment Expenses					(8,815	)			(4,466	)		(97.4	)									(7,554	)			(2,030	)		(272.1	)
Total Net Investment Income				$	40,800			$	45,894			(11.1	)								$	16,826			$	22,914			(26.6	)
				6/30/06				12/31/05
Investment Portfolio Composition:
Fixed Income Securities, by Rating: 2
NAIC Rated		Moody’s Rated
1		Aaa/Aa/A		$	1,320,718			$	1,288,015			2.5
2		Baa			90,062				105,351			(14.5	)
3		Ba			20,801				21,959			(5.3	)
4		B			3,000				4,471			(32.9	)
5		Caa			—				—			0.0
6		In or near default			—				—			0.0
Total Fixed Income Securities					1,434,581				1,419,796			1.0
Equity Securities					110,640				107,020			3.4
Collateral Loans					129,946				124,667			4.2
Commercial Leases					1,758				2,515			(30.1	)
Other Invested Assets					364,959				347,382			5.1
Total Investment Portfolio				$	2,041,884			$	2,001,380			2.0

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

June 30, 2006

(Unaudited)

		02:1Q		02:2Q		02:3Q		02:4Q		2002
Additional Information
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		8,867,842						18,546,759
Pretax P&C Operating Income		19,996,255		32,528,491						52,524,746
P&C Statutory Invested Assets (2)		781,525,886		792,053,522
P&C Statutory Surplus		410,789,564		430,367,018
P&C Loss & LAE Reserves (1)		163,390,031		161,008,518
Pretax Life Net Investment Income		13,590,101		13,716,250						27,306,351
Pretax Life Operating Income		7,113,633		6,783,319						13,896,952
Life Statutory Invested Assets		1,002,957,159		999,648,875
Life Statutory Surplus		182,409,009		179,808,669

(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.