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 THIRD QUARTER 2006 RESULTS

Montgomery, Alabama (October 20, 2006) — Alfa Corporation (NASDAQ:ALFA) today announced financial results for the three and nine months ended September 30, 2006. Operating income for the quarter was $26,871,178, or $0.33 per diluted share, compared with operating income of $24,219,493, or $0.30 per diluted share, for the third quarter of 2005, a per share increase of 10.2%. Net income, which includes net realized investment gains, was $27,237,673, or $0.34 per diluted share, for the third quarter of 2006, compared with $25,102,904, or $0.31 per diluted share in 2005, a per share increase of 7.8%. Premiums and policy charges for the third quarter of 2006 increased 7.5% to $172,953,460.

For the nine months ended September 30, 2006, operating income was $71,354,899 compared with operating income of $72,396,566 for the first nine months of 2005. On a per share basis, operating income decreased 2.0% to $0.88 per diluted share for the nine-month period in 2006 compared with $0.90 per diluted share for the same period in 2005. After net realized investment gains, net income was $72,883,563, or $0.90 per diluted share, for the first nine months of 2006, compared with net income of $75,228,407, or $0.93 per diluted share, for the same period in 2005, a per share decrease of 3.7%. Premiums and policy charges increased 9.1% to $512,801,354 for the first nine months of 2006.

Alfa’s Chairman, President and Chief Executive Officer, Jerry A. Newby, said, “I am pleased with our performance in the third quarter. Healthy top-line growth in both our property and casualty and life business segments contributed to these results. Our loss ratio, which is also a key component behind our operating performance, remains outstanding. The commitment of our agency force to deliver strong top-line growth,

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Alfa Reports Third-Quarter Results

Page 2

October 20, 2006

together with our management team’s dedication to achieving consistent operating performance, continues to prevail in today’s competitive market conditions. We look forward to the remainder of 2006 with anticipation of another solid year for Alfa Corporation.”

Alfa Corporation will host a conference call on Friday, October 20, at 10:30 a.m. Eastern time. Investors and other interested parties may access the teleconference by calling 1-800-289-0493 (access code 7339774), 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 third quarter ended September 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/3q06fsg.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 CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(UNAUDITED)

		Nine Months Ended September 30,							Statistics				Three Months Ended September 30,							Statistics
		2006		2005		% Change			2006		2005		2006		2005		% Change			2006		2005
Revenues
Premiums - Property and Casualty Insurance		450,442,275		412,565,810		9.18							152,191,304		141,615,762		7.47
Premiums - Life Insurance		34,479,582		30,873,739		11.68							11,639,879		10,570,000		10.12
Policy Charges - Life Insurance		27,879,497		26,724,411		4.32							9,122,277		8,701,242		4.84
Net Investment Income		67,107,526		70,510,093		(4.83	)						26,306,786		24,615,505		6.87
Other Income		20,742,003		17,207,151		20.54							7,337,794		5,271,863		39.19
Total Revenues		600,650,883		557,881,204		7.67							206,598,040		190,774,372		8.29
Benefits and Expenses
Benefits & Settlement Expenses		346,567,600		323,277,862		7.20			57.70		57.95		118,436,125		110,019,051		7.65			57.33		57.67
Dividends to Policyholders		3,040,848		2,945,396		3.24			0.51		0.53		954,889		923,570		3.39			0.46		0.48
Amortization of Deferred Policy Acquisition Costs		94,853,824		81,997,955		15.68			15.79		14.70		33,603,764		28,468,283		18.04			16.26		14.92
Other Operating Expenses		58,639,498		50,685,119		15.69			9.76		9.08		16,873,615		18,171,081		(7.14	)		8.17		9.53
Total Expenses		503,101,770		458,906,332		9.63			83.76		82.26		169,868,393		157,581,985		7.80			82.22		82.60
Income Before Provision for Income Taxes		97,549,113		98,974,872		(1.44	)		16.24		17.74		36,729,647		33,192,387		10.66			17.78		17.40
Provision For Income Taxes		26,194,214		26,578,306		(1.45	)		26.85		26.85		9,858,469		8,972,894		9.87			26.84		27.03
Operating Income		71,354,899		72,396,566		(1.44	)						26,871,178		24,219,493		10.95
Realized Investment Gains, Net of Tax		1,528,664		2,831,841		(46.02	)						366,495		883,411		(58.51	)
Net Income		72,883,563		75,228,407		(3.12	)						27,237,673		25,102,904		8.50
Operating Income Per Share - Basic		0.89		0.90		(1.69	)						0.33		0.30		10.64
Operating Income Per Share - Diluted		0.88		0.90		(2.04	)						0.33		0.30		10.24
Net Income Per Share - Basic		0.91		0.94		(3.36	)						0.34		0.31		8.20
Net Income Per Share - Diluted		0.90		0.93		(3.71	)						0.34		0.31		7.81
Dividends Per Share		0.3200		0.2875		11.30							0.1100		0.1000		10.00
Average Shares Outstanding - Basic		80,317,604		80,115,937		0.25							80,322,212		80,099,751		0.28
Average Shares Outstanding - Diluted		81,140,033		80,642,174		0.62							81,218,401		80,702,154		0.64

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 CONDENSED BALANCE SHEETS

		(Unaudited) September 30, 2006				December 31, 2005 (1)				% Change
Assets
Investments:
Fixed Maturities Held for Investment, at amortized cost (fair value $75,666 in 2006 and $93,578 in 2005)		$	71,994			$	88,330			-18.49	%
Fixed Maturities Available for Sale, at fair value (amortized cost $1,444,453,800 in 2006 and $1,394,823,078 in 2005)			1,457,891,857				1,419,708,095			2.69	%
Equity Securities Available for Sale, at fair value (cost $113,690,991 in 2006 and $96,668,040 in 2005)			118,409,345				107,020,104			10.64	%
Policy Loans			64,317,670				62,101,204			3.57	%
Collateral Loans			130,481,374				124,667,449			4.66	%
Commercial Leases			1,671,638				2,515,084			-33.54	%
Other Long-Term Investments			85,303,786				61,961,072			37.67	%
Other Long-Term Investments in Affiliates			125,150,318				138,457,224			-9.61	%
Short-Term Investments			107,023,091				84,861,880			26.11	%
Total Investments			2,090,321,073				2,001,380,442			4.44	%
Cash			29,860,612				37,228,639			-19.79	%
Accrued Investment Income			17,200,836				16,858,408			2.03	%
Accounts Receivable			92,199,792				72,622,465			26.96	%
Reinsurance Balances Receivable			4,941,979				6,648,204			-25.66	%
Deferred Policy Acquisition Costs			222,561,631				204,253,919			8.96	%
Goodwill			13,924,306				13,924,306			0.00	%
Other Intangible Assets (net of accumulated amortization of $1,195,950 in 2006 and $683,400 in 2005)			7,912,050				8,424,600			-6.08	%
Other Assets			20,274,052				20,478,836			-1.00	%
Total Assets		$	2,499,196,331			$	2,381,819,819			4.93	%
Liabilities and Stockholders’ Equity
Policy Liabilities and Accruals - Property and Casualty Insurance		$	166,002,851			$	159,639,886			3.99	%
Policy Liabilities and Accruals - Life Insurance Interest-Sensitive Products			638,715,016				600,994,074			6.28	%
Policy Liabilities and Accruals - Life Insurance Other Products			207,016,265				197,140,294			5.01	%
Unearned Premiums			245,310,742				220,456,047			11.27	%
Dividends to Policyholders			11,643,959				11,662,085			-0.16	%
Premium Deposit and Retirement Deposit Funds			5,181,501				5,741,071			-9.75	%
Deferred Income Taxes			24,791,352				29,118,958			-14.86	%
Other Liabilities			82,940,194				74,147,175			11.86	%
Due to Affiliates			18,711,403				22,249,975			-15.90	%
Commercial Paper			202,340,286				213,790,443			-5.36	%
Notes Payable			70,000,000				70,000,000			0.00	%
Notes Payable to Affiliates			27,765,636				20,887,635			32.93	%
Total Liabilities			1,700,419,205				1,625,827,643			4.59	%
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: 80,381,558 in 2006 and 80,284,018 in 2005			83,783,024				83,783,024			0.00	%
Capital in Excess of Par Value			26,436,867				21,171,462			24.87	%
Accumulated Other Comprehensive Income (unrealized gains on securities available for sale, net of tax of $11,985,958 in 2006 and $22,105,684 in 2005; unrealized gains (losses) on interest rate swap contract, net of tax of $158,869 in 2006 and ($11,265) in 2005; unrealized (losses) on other long-term investments, net of tax of ($225,178) in 2006 and ($394,560) in 2005)			11,919,649				21,699,859			-45.07	%
Retained Earnings			714,671,163				667,535,056			7.06	%
Treasury Stock, at cost (shares, 3,401,466 in 2006 and 3,499,006 in 2005)			(38,033,577	)			(38,197,225	)		-0.43	%
Total Stockholders’ Equity			798,777,126				755,992,176			5.66	%
Total Liabilities and Stockholders’ Equity		$	2,499,196,331			$	2,381,819,819			4.93	%
Book Value per share		$	9.94			$	9.42

⁽¹⁾ Derived from audited financial statements

Alfa Corporation

Investor Supplement

Third 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)

		Nine Months Ended September 30,											Ratios						Three Months Ended September 30,											Ratios
		2006				2005				% Change			2006			2005			2006				2005				% Change			2006			2005
INCOME STATEMENT
Revenues
Automobile Premiums		$	283,444			$	254,835			11.2									$	95,964			$	87,983			9.1
Homeowner Premiums			155,108				146,323			6.0										52,259				49,827			4.9
Other Premiums			11,890				11,408			4.2										3,968				3,806			4.3
Total Premiums - Property and Casualty Insurance			450,442				412,566			9.2			100.0	%		100.0	%			152,191				141,616			7.5			100.0	%		100.0	%
Net Investment Income			28,777				29,470			(2.4	)									10,231				11,233			(8.9	)
Other Income			10,244				6,851			49.5										3,410				2,629			29.7
Total Revenues			489,463				448,887			9.0										165,832				155,478			6.7
Benefits, Losses and Expenses
Incurred Losses (Non-storm)			249,655				237,703			5.0			55.4	%		57.6	%			89,774				83,836			7.1			59.0	%		59.2	%
Incurred Losses (Storm)			13,773				11,635			18.4			3.1	%		2.8	%			(32	)			—			(100.0	)		0.0	%		0.0	%
Loss Adjustment Expense			22,060				16,759			31.6			4.9	%		4.1	%			7,512				6,304			19.2			4.9	%		4.5	%
Total Benefits, Claims, Losses and Settlement Expenses			285,488				266,097			7.3			63.4	%		64.5	%			97,254				90,140			7.9			63.9	%		63.7	%
Amortization of Deferred Policy Acquisition Costs			86,829				75,008			15.8			19.3	%		18.2	%			30,686				26,311			16.6			20.2	%		18.6	%
Other Operating Expenses			37,285				26,268			41.9			8.3	%		6.4	%			10,555				9,771			8.0			6.9	%		6.9	%
Total Operating Expenses			124,114				101,276			22.6			27.6	%		24.6	%			41,241				36,082			14.3			27.1	%		25.5	%
Total Benefits, Losses and Expenses			409,602				367,373			11.5			91.0	%		89.1	%			138,495				126,222			9.7			91.0	%		89.2	%
Income Before Provision for Income Taxes			79,861				81,514			(2.0	)									27,337				29,256			(6.6	)
Provision For Income Taxes			20,800				20,287			2.5										6,876				7,567			(9.1	)
Operating Income *			59,061				61,227			(3.5	)									20,461				21,689			(5.7	)
Realized Investment Gains (Losses), Net of Tax			(1,864	)			(303	)		(515.2	)									(850	)			(514	)		(65.4	)
Net Income		$	57,197			$	60,924			(6.1	)								$	19,611			$	21,175			(7.4	)
Operating Income Per Share - Diluted *		$	0.73			$	0.76			(4.1	)								$	0.25			$	0.27			(6.3	)
Net Income Per Share - Diluted		$	0.70			$	0.76			(6.7	)								$	0.24			$	0.26			(8.0	)
Operating Return on Equity*			16.8	%			18.5	%
Return on Equity*			16.5	%			18.6	%
Other Key Information
Earned Premium by Region
Alabama		$	338,864			$	329,317			2.9			75.2	%		79.8	%		$	113,615			$	110,944			2.4			74.7	%		78.3	%
Georgia			25,818				25,057			3.0			5.7	%		6.1	%			8,562				8,409			1.8			5.6	%		5.9	%
Mississippi			31,989				29,207			9.5			7.1	%		7.1	%			10,772				9,860			9.2			7.1	%		7.0	%
VA Mutual			16,033				16,318			(1.7	)		3.6	%		3.9	%			5,328				5,531			(3.7	)		3.5	%		3.9	%
Vision			37,738				12,667			197.9			8.4	%		3.1	%			13,914				6,872			102.5			9.1	%		4.9	%
Total Earned Premium		$	450,442			$	412,566			9.2			100.0	%		100.0	%		$	152,191			$	141,616			7.5			100.0	%		100.0	%
Incurred Losses by Region (Non-storm)
Alabama		$	185,317			$	186,495			(0.6	)		54.7	%		56.6	%		$	65,192			$	65,406			(0.3	)		57.4	%		59.0	%
Georgia			17,054				19,019			(10.3	)		66.1	%		75.9	%			6,348				5,973			6.3			74.1	%		71.0	%
Mississippi			15,298				17,339			(11.8	)		47.8	%		59.4	%			5,749				5,976			(3.8	)		53.4	%		60.6	%
VA Mutual			7,799				7,245			7.6			48.6	%		44.4	%			3,361				2,468			36.2			63.1	%		44.6	%
Vision			24,187				7,605			218.0			64.1	%		60.0	%			9,124				4,013			127.4			65.6	%		58.4	%
Total Incurred Losses		$	249,655			$	237,703			5.0			55.4	%		57.6	%		$	89,774			$	83,836			7.1			59.0	%		59.2	%
Lapse Ratio: Preferred and Standard Classes *			3.44	%			3.45	%												3.64	%			3.75	%
Net Written Premium by LOB
Automobile		$	299,591			$	275,732			8.7									$	96,997			$	92,545			4.8
Homeowner			163,450				160,534			1.8										55,924				52,718			6.1
Other			13,330				12,583			5.9										4,051				3,942			2.8
Total Net Written Premium		$	476,371			$	448,849			6.1									$	156,972			$	149,205			5.2
Net Written Premium by Region
Alabama		$	350,586			$	340,460			3.0									$	117,851			$	114,481			2.9
Georgia			26,541				25,809			2.8										8,813				8,730			1.0
Mississippi			34,848				30,560			14.0										10,933				10,290			6.2
VA Mutual			15,417				27,048			(43.0	)									6,028				6,580			(8.4	)
Vision			48,979				24,972			96.1										13,347				9,124			46.3
Total Net Written Premium		$	476,371			$	448,849			6.1									$	156,972			$	149,205			5.2

Data may differ from actual due to rounding.

ALFA CORPORATION

LIFE SEGMENT (UNAUDITED)

(in thousands, except ratios and per share data)

		Nine Months Ended September 30,											Ratios						Three Months Ended September 30,											Ratios
		2006				2005				% Change			2006			2005			2006				2005				% Change			2006			2005
INCOME STATEMENT
Revenues
Traditional Life Insurance Premiums		$	33,987			$	30,357			12.0									$	11,638			$	10,570			10.1
Universal Life Policy Charges			16,278				15,479			5.2										5,483				5,199			5.5
Universal Life Policy Charges - COLI			3,246				3,037			6.9										768				775			(0.9	)
Interest-sensitive Life Policy Charges			8,355				8,208			1.8										2,871				2,728			5.2
Group Life Insurance Premiums			493				517			(4.6	)									2				—			100.0
Total Premiums and Policy Charges - Life Insurance			62,359				57,598			8.3			100.0	%		100.0	%			20,762				19,272			7.7			100.0	%		100.0	%
Net Investment Income			41,602				37,951			9.6										14,296				12,662			12.9
Other Income			—				—			0.0										—				—			0.0
Total Revenues			103,961				95,549			8.8										35,058				31,934			9.8
Benefits, Claims, Losses and Settlement Expenses			61,432				55,993			9.7			98.5	%		97.2	%			21,184				19,721			7.4			102.0	%		102.3	%
Dividends to Policyholders			3,041				2,945			3.3			4.9	%		5.1	%			955				924			3.4			4.6	%		4.8	%
Amortization of Deferred Policy Acquisition Costs			8,812				7,725			14.1			14.1	%		13.4	%			2,918				2,557			14.1			14.1	%		13.3	%
Other Operating Expenses			8,193				8,158			0.4			13.1	%		14.2	%			1,416				2,727			(48.1	)		6.8	%		14.2	%
Total Benefits, Losses and Expenses			81,478				74,821			8.9			130.6	%		129.9	%			26,473				25,929			2.1			127.5	%		134.6	%
Income Before Provision for Income Taxes			22,483				20,728			8.5										8,585				6,005			43.0
Provision For Income Taxes			7,057				6,084			16.0										2,749				1,495			83.9
Operating Income			15,426				14,644			5.3										5,836				4,510			29.4
Realized Investment Gains, Net of Tax			3,428				3,103			10.5										1,224				1,367			(10.5	)
Net Income		$	18,854			$	17,747			6.2									$	7,060			$	5,877			20.1
Operating Income Per Share - Diluted		$	0.19			$	0.18			4.7									$	0.07			$	0.06			28.6
Net Income Per Share - Diluted		$	0.23			$	0.22			5.6									$	0.09			$	0.07			19.4
Operating Return on Equity			7.2	%			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		$	9,789			$	5,828			68.0									$	2,602			$	1,821			42.9
Universal Life			2,832				3,188			(11.2	)									919				888			3.5
Interest-sensitive Life			1,598				1,832			(12.8	)									548				579			(5.4	)
Total Issued New Business Premium by LOB		$	14,219			$	10,848			31.1									$	4,069			$	3,288			23.8
Annualized New Business Premium by Region
Alabama		$	12,343			$	9,367			31.8									$	3,553			$	2,869			23.8
Georgia			1,016				763			33.2										296				221			33.9
Mississippi			860				718			19.8										220				198			11.1
Total Issued New Business Premium by Region		$	14,219			$	10,848			31.1									$	4,069			$	3,288			23.8
Actual vs. Expected Mortality Ratio *			103	%			95	%												103	%			111	%
Persistency Ratio *			91.0	%			91.1	%

Data may differ from actual due to rounding.

ALFA CORPORATION

NONINSURANCE SEGMENT (UNAUDITED)

(in thousands, except ratios and per share data)

		Nine Months Ended September 30,											Three Months Ended September 30,
		2006				2005				% Change			2006				2005				% Change
INCOME STATEMENT
Revenues
Equity Interest in MidCountry Financial (net of expense)		$	969			$	1,278			(24.2	)		$	167			$	372			(55.1	)
Loan Income (net of expense)			(274	)			3,208			(108.5	)			3,045				1,120			171.9
Other Net Investment Income			71				1,774			(96.0	)			65				568			(88.6	)
Total Net Investment Income			766				6,260			(87.8	)			3,277				2,060			59.1
Fee/Commission Income - Agency Operations			27,787				17,703			57.0				9,060				5,869			54.4
Other Income			921				1,018			(9.5	)			258				258			0.0
Total Other Income			28,708				18,721			53.3				9,318				6,127			52.1
Total Revenues			29,474				24,981			18.0				12,595				8,187			53.8
Benefits, Losses and Expenses
Claims and Settlement Expenses - Agency Operations			2,575				2,200			17.0				952				708			34.5
Other Operating Expenses - Loan/Lease Operations			3,814				5,143			(25.8	)			1,470				1,805			(18.6	)
Other Operating Expenses - Agency Operations			22,049				15,465			42.6				6,824				5,226			30.6
Other Operating Expenses - Other Operations			811				603			34.5				445				462			(3.7	)
Total Benefits, Losses and Expenses			29,249				23,411			24.9				9,691				8,201			18.2
Income Before Provision for Income Taxes			225				1,570			(85.7	)			2,904				(14	)		20,842.9
Provision For Income Taxes			93				456			(79.6	)			968				(46	)		2,204.3
Operating Income			132				1,114			(88.2	)			1,936				32			5,950.0
Realized Investment Gains (Losses), Net of Tax			(35	)			32			(209.4	)			(7	)			31			(122.6	)
Net Income		$	97			$	1,146			(91.5	)		$	1,929			$	63			2,961.9
Operating Income Per Share - Diluted		$	0.00			$	0.01			(88.2	)		$	0.02			$	0.00			5,911.5
Net Income Per Share - Diluted		$	0.00			$	0.01			(91.6	)		$	0.02			$	0.00			2,942.4
Operating Return on Equity			(1.2	%)			(0.1	%)
Return on Equity			(1.3	%)			(0.1	%)
Other Key Information
		9/30/06				9/30/05				% Change
Alfa Financial Corporation:
Loan Portfolio		$	129,927			$	122,323			6.2
Loan Portfolio Yield *			7.79	%			7.30	%
Loan Gross Charge-offs		$	4,177			$	582
Loan Net Charge-offs		$	4,114			$	478
Loan Delinquency Ratio *			1.87	%			1.20	%
MidCountry Financial Corporation:
Carrying Value (42% and 43% ownership at 9/30/06 and 9/30/05, respectively)		$	55,888			$	53,614			4.2
Equity in Net Earnings		$	969			$	1,278			(24.2	)
Return on Carried Value *			2.3	%			3.2	%

Data may differ from actual due to rounding.

ALFA CORPORATION

CORPORATE SEGMENT AND ELIMINATIONS (UNAUDITED)

(in thousands, except ratios and per share data)

		Nine Months Ended September 30,											Three Months Ended September 30,
		2006				2005				% Change			2006				2005				% Change
INCOME STATEMENT
Revenues
Investment Loss		$	(608	)		$	(1,168	)		47.9			$	(134	)		$	(441	)		69.6
Interest Expense			(3,431	)			(2,002	)		(71.4	)			(1,363	)			(898	)		(51.8	)
Total Net Investment Loss			(4,039	)			(3,170	)		(27.4	)			(1,497	)			(1,339	)		(11.8	)
Other Income			(18,210	)			(8,365	)		(117.7	)			(5,391	)			(3,484	)		(54.7	)
Total Revenues			(22,249	)			(11,535	)		(92.9	)			(6,888	)			(4,823	)		(42.8	)
Benefits, Losses and Expenses
Claims and Settlement Expenses			(2,927	)			(1,013	)		(188.9	)			(953	)			(550	)		(73.3	)
Amortization of Deferred Policy Acquisition Costs			(787	)			(735	)		(7.1	)			—				(400	)		100.0
Other Operating Expenses			(13,513	)			(4,950	)		(173.0	)			(3,836	)			(1,820	)		(110.8	)
Total Benefits, Claims, Losses and Settlement Expenses			(17,227	)			(6,698	)		(157.2	)			(4,789	)			(2,770	)		(72.9	)
Loss Before Provision for Income Taxes			(5,022	)			(4,837	)		(3.8	)			(2,099	)			(2,053	)		(2.2	)
Provision For Income Taxes			(1,757	)			(248	)		(608.5	)			(734	)			(44	)		(1,568.2	)
Operating Income (Loss)			(3,265	)			(4,589	)		28.9				(1,365	)			(2,009	)		32.1
Realized Investment Gains (Losses), Net of Tax			—				—			0.0				—				—			0.0
Net Income (Loss)		$	(3,265	)		$	(4,589	)		28.9			$	(1,365	)		$	(2,009	)		32.1
Operating Income (Loss) Per Share - Diluted		$	(0.04	)		$	(0.06	)		29.3			$	(0.02	)		$	(0.02	)		32.5
Net Income (Loss) Per Share - Diluted		$	(0.04	)		$	(0.06	)		29.3			$	(0.02	)		$	(0.02	)		32.5

Data may differ from actual due to rounding.

ALFA CORPORATION

INVESTMENT PORTFOLIO

(in thousands, except ratios and per share data)

Alfa Corporation Consolidated Investment Portfolio - Other Key Information

				Nine Months Ended September 30,											Yields						Three Months Ended September 30,											Yields
				2006				2005				% Change			2006			2005			2006				2005				% Change			2006			2005
Net Investment Income and Pre-tax Yield:
Fixed Income Securities				$	59,693			$	57,577			3.7			5.7	%		5.9	% 1		$	20,741			$	19,251			7.7			5.9	%		5.9	% 1
Equity Securities					2,927				2,176			34.5			3.3	%		2.7	%			650				734			(11.4	)		2.2	%		2.7	%
Collateral Loans					7,539				6,180			22.0										2,607				2,219			17.5
Commercial Leases					153				4,805			(96.8	)									59				1,660			(96.4	)
Other Investment Income					16,717				14,529			15.1										6,089				6,086			0.0
Interest Expense					(11,467	)			(8,156	)		(40.6	)									(4,199	)			(3,199	)		(31.3	)
Investment Expenses					(8,454	)			(6,602	)		(28.1	)									361				(2,136	)		116.9
Total Net Investment Income				$	67,108			$	70,509			(4.8	)								$	26,308			$	24,615			6.9
				9/30/06				12/31/05
Investment Portfolio Composition:
Fixed Income Securities, by Rating: 2
NAIC Rated		Moody’s Rated
1		Aaa/Aa/A		$	1,353,511			$	1,288,015			5.1
2		Baa			88,450				105,351			(16.0	)
3		Ba			16,003				21,959			(27.1	)
4		B			—				4,471			(100.0	)
5		Caa			—				—			0.0
6		In or near default			—				—			0.0
Total Fixed Income Securities					1,457,964				1,419,796			2.7
Equity Securities					118,409				107,020			10.6
Collateral Loans					130,481				124,667			4.7
Commercial Leases					1,672				2,515			(33.5	)
Other Invested Assets					381,795				347,382			9.9
Total Investment Portfolio				$	2,090,321			$	2,001,380			4.4

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

September 30, 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		8,867,842		10,230,689				28,777,448
Pretax P&C Operating Income		19,996,255		32,528,491		27,338,061				79,862,807
P&C Statutory Invested Assets (2)		781,525,886		792,053,522		789,965,735
P&C Statutory Surplus		410,789,564		430,367,018		424,266,223
P&C Loss & LAE Reserves (1)		163,390,031		161,008,518		164,960,736
Pretax Life Net Investment Income		13,590,101		13,716,250		14,296,140				41,602,491
Pretax Life Operating Income		7,113,633		6,783,319		8,585,952				22,482,904
Life Statutory Invested Assets		1,002,957,159		999,648,875		1,017,945,275
Life Statutory Surplus		182,409,009		179,808,669		184,518,325

(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.