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 2006 RESULTS

Montgomery, Alabama (February 23, 2007) — Alfa Corporation (NASDAQ:ALFA) today announced financial results for the year ended December 31, 2006. Operating income for the year was $103,676,787, or $1.28 per diluted share, compared with operating income of $95,100,686, or $1.18 per diluted share for 2005, an increase of 8.3% on a per share basis. Net income, which includes net realized investment gains, was $105,888,237, or $1.30 per diluted share for 2006 compared with $99,033,753 or $1.23 per diluted share in 2005, a per share increase of 6.3%. Premiums and policy charges for 2006 increased 8.5% to $687,086,400.

Operating income for the fourth quarter of 2006 was $32,321,887, or $0.40 per diluted share, compared with fourth quarter 2005 operating income of $22,704,120, or $0.28 per diluted share. After net realized investment gains, net income for the fourth quarter of 2006 was $33,004,673, or $0.41 per diluted share, compared with $23,805,346, or $0.29 per diluted share, in the prior-year period. Premiums and policy charges for the final three months of 2006 increased 7.0% to $174,285,046.

Alfa’s Chairman, President and Chief Executive Officer, Jerry A. Newby, said, Despite the extreme competitiveness in today’s insurance marketplace, Alfa Corporation has once again produced record earnings for our shareholders. Building on ten consecutive years of positive underwriting performance, this year’s results were outstanding. Alfa Corporation’s ten-year average combined ratio is 91.3%, and we ended 2006 at 90.8%. This consistent performance translates into greater value for our shareholders.

“We are very proud of our many accomplishments during the year, including continued advances in technology and further expansion of our geographical presence. Our new “Let’s Talk About Tomorrow” marketing campaign continues to increase awareness of our brand and reinforces the message that Alfa offers a full line of products designed to protect our customers’ futures.

“Alfa has the reputation for being one of the nation’s most financially stable and reliable providers of insurance, and as we begin a new year, our team is excited about the growth opportunities we see for all of our companies. We intend to be proactive in managing our company in order to enhance that reputation. Our emphasis in 2007 will be very similar to prior years: we will continue to develop our team, build sound relationships, aggressively manage expenses, and improve our service, all of which will help us achieve our goal of solid financial performance.”

Alfa Corporation will host a conference call today at 10:30 a.m. Eastern time. Investors and other interested parties may access the teleconference by calling 1-800-289-0518, or via links located on Alfa’s web site: www.alfains.com. A 30-day Internet play of the call will also be available from Alfa’s web site.

-MORE-

Alfa Corporation is engaged in insurance and financial activities through its subsidiaries. The common stock of Alfa Corporation is traded on the Nasdaq Stock Market’s National Market under the symbol ALFA.

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

Investors are cautioned that statements in this press release which relate to the future are, by their nature, uncertain and dependent upon numerous contingencies – including political, economic, regulatory, climatic, competitive, legal, and technological – any of which could cause actual results and events to differ materially from those indicated in such forward-looking statements. Additional information regarding these and other risk factors and uncertainties may be found in Alfa Corporation’s filings with the Securities and Exchange Commission.

-END-

ALFA CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS

		December 31,								% Change
		2006				2005
Assets
Investments:
Fixed Maturities Held for Investment, at amortized cost (fair value $57,272 in 2006 and $93,578 in 2005)		$	55,052			$	88,330			-37.67	%
Fixed Maturities Available for Sale, at fair value (amortized cost $1,436,188,473 in 2006 and $1,394,823,078 in 2005)			1,446,693,702				1,419,708,095			1.90	%
Equity Securities Available for Sale, at fair value (cost $101,177,606 in 2006 and $96,668,040 in 2005)			111,427,207				107,020,104			4.12	%
Policy Loans			64,949,875				62,101,204			4.59	%
Collateral Loans			128,685,111				124,667,449			3.22	%
Other Long-Term Investments			86,823,771				64,476,156			34.66	%
Short-Term Investments			166,293,356				84,861,880			95.96	%
Total Investments			2,004,928,074				1,862,923,218			7.62	%
Cash			37,218,109				37,228,639			-0.03	%
Other Long-Term Investments in Affiliates			120,819,010				138,457,224			-12.74	%
Accrued Investment Income			17,026,711				16,858,408			1.00	%
Accounts Receivable			85,490,044				72,622,465			17.72	%
Reinsurance Balances Receivable			6,015,853				6,648,204			-9.51	%
Deferred Policy Acquisition Costs			224,516,950				204,253,919			9.92	%
Goodwill			9,576,218				13,924,306			-31.23	%
Other Intangible Assets (net of accumulated amortization of $1,366,800 in 2006 and $683,400 in 2005)			7,741,200				8,424,600			-8.11	%
Other Assets			20,906,925				21,887,659			-4.48	%
Total Assets		$	2,534,239,094			$	2,383,228,642			6.34	%
Liabilities and Stockholders’ Equity
Policy Liabilities and Accruals - Property and Casualty Insurance		$	172,664,652			$	159,639,886			8.16	%
Policy Liabilities and Accruals - Life Insurance Interest-Sensitive Products			646,354,761				600,994,074			7.55	%
Policy Liabilities and Accruals - Life Insurance Other Products			205,449,027				197,140,294			4.21	%
Unearned Premiums			236,481,371				221,864,870			6.59	%
Dividends to Policyholders			11,882,776				11,662,085			1.89	%
Premium Deposit and Retirement Deposit Funds			4,921,879				5,741,071			-14.27	%
Deferred Income Taxes			25,547,554				29,118,958			-12.26	%
Other Liabilities			75,222,398				74,147,205			1.45	%
Due to Affiliates			24,355,859				22,249,945			9.46	%
Commercial Paper			206,923,215				213,790,443			-3.21	%
Notes Payable			70,000,000				70,000,000			0.00	%
Notes Payable to Affiliates			27,516,459				20,887,635			31.74	%
Total Liabilities			1,707,319,951				1,627,236,466			4.92	%
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: 80,459,113 in 2006 and 80,284,018 in 2005
Additional Paid In Capital			27,502,452				21,171,462			29.90	%
Accumulated Other Comprehensive Income (unrealized gains on securities available for sale, net of tax of $14,019,988 in 2006 and $22,105,684 in 2005; unrealized gains (losses) on interest rate swap contract, net of tax of $105,541 in 2006 and ($11,265) in 2005; unrealized gains/(losses) on other long-term investments, net of tax of $75,006 in 2006 and ($394,560) in 2005)			14,200,535				21,699,859			-34.56	%
Retained Earnings			738,811,778				667,535,056			10.68	%
Treasury Stock, at cost (shares, 3,323,911 in 2006 and 3,499,006 in 2005)			(37,378,646	)			(38,197,225	)		-2.14	%
Total Stockholders’ Equity			826,919,143				755,992,176			9.38	%
Total Liabilities and Stockholders’ Equity		$	2,534,239,094			$	2,383,228,642			6.34	%
Book Value per share		$	10.28			$	9.42

ALFA CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(UNAUDITED)

		Years Ended December 31,							Statistics				Three Months Ended December 31,							Statistics
		2006		2005		% Change			2006		2005		2006		2005		% Change			2006		2005
Revenues
Premiums - Property and Casualty Insurance		604,241,557		556,438,727		8.59							153,799,283		143,872,916		6.90
Premiums - Life Insurance		46,019,117		41,134,144		11.88							11,539,534		10,260,406		12.47
Policy Charges - Life Insurance		36,825,726		35,499,178		3.74							8,946,229		8,774,768		1.95
Net Investment Income		93,262,710		94,931,739		(1.76	)						26,155,184		24,421,647		7.10
Other Income		28,386,795		22,849,897		24.23							7,644,792		5,642,746		35.48
Total Revenues		808,735,905		750,853,685		7.71							208,085,022		192,972,483		7.83
Benefits and Expenses
Benefits & Settlement Expenses		458,175,979		432,856,310		5.85			56.65		57.65		111,608,379		109,578,448		1.85			53.64		56.78
Dividends to Policyholders		4,134,455		4,009,119		3.13			0.51		0.53		1,093,607		1,063,724		2.81			0.53		0.55
Amortization of Deferred Policy Acquisition Costs		130,041,533		108,723,470		19.61			16.08		14.48		35,187,709		26,725,516		31.66			16.91		13.85
Other Operating Expenses		80,790,556		73,453,925		9.99			9.99		9.78		22,151,058		22,768,806		(2.71	)		10.65		11.80
Total Expenses		673,142,523		619,042,824		8.74			83.23		82.45		170,040,753		160,136,494		6.18			81.72		82.98
Income Before Income Tax Expense		135,593,382		131,810,861		2.87			16.77		17.55		38,044,269		32,835,989		15.86			18.28		17.02
Income Tax Expense		31,916,595		36,710,175		(13.06	)		23.54		27.85		5,722,382		10,131,869		(43.52	)		15.04		30.86
Operating Income		103,676,787		95,100,686		9.02							32,321,887		22,704,120		42.36
Realized Investment Gains, Net of Tax		2,211,450		3,933,067		(43.77	)						682,786		1,101,226		(38.00	)
Net Income		105,888,237		99,033,753		6.92							33,004,673		23,805,346		38.64
Operating Income Per Share - Basic		1.29		1.19		8.74							0.40		0.28		41.98
Operating Income Per Share - Diluted		1.28		1.18		8.35							0.40		0.28		41.35
Net Income Per Share - Basic		1.32		1.24		6.65							0.41		0.30		38.27
Net Income Per Share - Diluted		1.30		1.23		6.27							0.41		0.29		37.66
Dividends Per Share		0.4300		0.3875		10.97							0.1100		0.1000		10.00
Average Shares Outstanding - Basic		80,345,906		80,141,068		0.26							80,429,796		80,215,641		0.27
Average Shares Outstanding - Diluted		81,211,111		80,712,923		0.62							81,482,882		80,904,931		0.71

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

Investor Supplement

Fourth 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)

		Twelve Months Ended December 31,											Ratios						Three Months Ended December 31,											Ratios
		2006				2005				% Change			2006			2005			2006				2005				% Change			2006			2005
INCOME STATEMENT
Revenues
Automobile Premiums		$	379,762			$	344,193			10.3									$	96,318			$	89,237			7.9
Homeowner Premiums			208,600				196,457			6.2										53,492				50,255			6.4
Other Premiums			15,880				15,789			0.6										3,989				4,381			(8.9	)
Total Premiums - Property and Casualty Insurance			604,242				556,439			8.6			100.0	%		100.0	%			153,799				143,873			6.9			100.0	%		100.0	%
Net Investment Income			39,417				40,200			(1.9	)									10,640				10,729			(0.8	)
Other Income			13,650				9,621			41.9										3,406				2,769			23.0
Total Revenues			657,309				606,260			8.4										167,845				157,371			6.7
Benefits, Losses and Expenses
Incurred Losses (Non-storm)			336,537				322,884			4.2			55.7	%		58.0	%			86,884				85,066			2.1			56.5	%		59.1	%
Incurred Losses (Storm)			13,781				11,635			18.4			2.3	%		2.1	%			8				—			100.0			0.0	%		0.0	%
Loss Adjustment Expense			30,015				24,029			24.9			5.0	%		4.3	%			7,955				7,384			7.7			5.2	%		5.1	%
Total Benefits, Claims, Losses and Settlement Expenses			380,333				358,548			6.1			63.0	%		64.4	%			94,847				92,450			2.6			61.7	%		64.3	%
Amortization of Deferred Policy Acquisition Costs			118,961				100,652			18.2			19.7	%		18.1	%			32,132				25,644			25.3			20.9	%		17.8	%
Other Operating Expenses			49,026				41,367			18.5			8.1	%		7.4	%			11,741				15,099			(22.2	)		7.6	%		10.5	%
Total Operating Expenses			167,987				142,019			18.3			27.8	%		25.5	%			43,873				40,743			7.7			28.5	%		28.3	%
Total Benefits, Losses and Expenses			548,320				500,567			9.5			90.8	%		90.0	%			138,720				133,193			4.1			90.2	%		92.6	%
Income Before Income Tax Expense			108,989				105,693			3.1										29,125				24,178			20.5
Income Tax Expense			23,954				25,497			(6.1	)									3,153				5,210			(39.5	)
Operating Income*			85,035				80,196			6.0										25,972				18,968			36.9
Realized Investment Gains (Losses), Net of Tax			(3,110	)			120			(2,691.7	)									(1,246	)			424			(393.9	)
Net Income		$	81,925			$	80,316			2.0									$	24,726			$	19,392			27.5
Operating Income Per Share - Diluted*		$	1.05			$	0.99			5.4									$	0.32			$	0.23			36.0
Net Income Per Share - Diluted		$	1.01			$	1.00			1.4									$	0.30			$	0.24			26.6
Operating Return on Equity*			17.9	%			18.5	%
Return on Equity*			17.2	%			18.6	%
Other Key Information
Earned Premium by Region
Alabama		$	453,260			$	441,159			2.7			75.0	%		79.3	%		$	114,395			$	111,842			2.3			74.4	%		77.7	%
Georgia			34,383				33,496			2.6			5.7	%		6.0	%			8,565				8,438			1.5			5.6	%		5.9	%
Mississippi			43,012				39,202			9.7			7.1	%		7.1	%			11,023				9,995			10.3			7.2	%		7.0	%
VA Mutual			21,239				21,795			(2.6	)		3.5	%		3.9	%			5,206				5,477			(4.9	)		3.4	%		3.8	%
Vision			52,348				20,787			151.8			8.7	%		3.7	%			14,610				8,121			79.9			9.5	%		5.6	%
Total Earned Premium		$	604,242			$	556,439			8.6			100.0	%		100.0	%		$	153,799			$	143,873			6.9			100.0	%		100.0	%
Incurred Losses by Region (Non-storm)
Alabama		$	247,644			$	252,624			(2.0	)		54.6	%		57.3	%		$	62,328			$	63,979			(2.6	)		54.5	%		57.2	%
Georgia			21,695				25,299			(14.2	)		63.1	%		75.5	%			4,641				6,252			(25.8	)		54.2	%		74.1	%
Mississippi			20,895				21,400			(2.4	)		48.6	%		54.6	%			5,597				6,239			(10.3	)		50.8	%		62.4	%
VA Mutual			12,064				10,804			11.7			56.8	%		49.6	%			4,265				3,444			23.8			81.9	%		62.9	%
Vision			34,239				12,757			168.4			65.4	%		61.4	%			10,053				5,152			95.1			68.8	%		63.4	%
Total Incurred Losses		$	336,537			$	322,884			4.2			55.7	%		58.0	%		$	86,884			$	85,066			2.1			56.5	%		59.1	%
Lapse Ratio: Preferred and Standard Classes*			3.50	%			3.50	%												3.70	%			3.64	%
Net Written Premium by LOB
Automobile		$	391,190			$	366,419			6.8									$	91,600			$	89,005			2.9
Homeowner			214,020				206,075			3.9										50,571				47,223			7.1
Other			16,815				15,886			5.8										3,483				3,304			5.4
Total Net Written Premium		$	622,025			$	588,380			5.7									$	145,654			$	139,532			4.4
Net Written Premium by Region
Alabama		$	459,621			$	447,066			2.8									$	109,035			$	106,606			2.3
Georgia			34,629				33,885			2.2										8,088				8,076			0.1
Mississippi			46,095				40,455			13.9										11,247				9,895			13.7
VA Mutual			20,662				32,615			(36.6	)									5,245				5,567			(5.8	)
Vision			61,018				34,359			77.6										12,039				9,388			28.2
Total Net Written Premium		$	622,025			$	588,380			5.7									$	145,654			$	139,532			4.4

Data may differ from actual due to rounding.

ALFA CORPORATION

LIFE SEGMENT (UNAUDITED)

(in thousands, except ratios and per share data)

		Twelve Months Ended December 31,											Ratios						Three Months Ended December 31,											Ratios
		2006				2005				% Change			2006			2005			2006				2005				% Change			2006			2005
INCOME STATEMENT
Revenues
Traditional Life Insurance Premiums		$	45,526			$	40,617			12.1									$	11,540			$	10,260			12.5
Universal Life Policy Charges			21,695				20,803			4.3										5,416				5,324			1.7
Universal Life Policy Charges - COLI			4,018				3,812			5.4										772				775			(0.4	)
Interest-sensitive Life Policy Charges			11,113				10,884			2.1										2,758				2,675			3.1
Group Life Insurance Premiums			493				517			(4.6	)									—				—			0.0
Total Premiums and Policy Charges - Life Insurance			82,845				76,633			8.1			100.0	%		100.0	%			20,486				19,034			7.6			100.0	%		100.0	%
Net Investment Income			56,527				50,963			10.9										14,925				13,012			14.7
Other Income			—				—			0.0										—				—			0.0
Total Revenues			139,372				127,596			9.2										35,411				32,046			10.5
Benefits, Claims, Losses and Settlement Expenses			78,502				73,205			7.2			94.8	%		95.5	%			17,070				17,212			(0.8	)		83.3	%		90.4	%
Dividends to Policyholders			4,134				4,009			3.1			5.0	%		5.2	%			1,094				1,064			2.8			5.3	%		5.6	%
Amortization of Deferred Policy Acquisition Costs			11,868				9,277			27.9			14.3	%		12.1	%			3,055				1,552			96.8			14.9	%		8.2	%
Other Operating Expenses			10,785				10,627			1.5			13.0	%		13.9	%			2,592				2,469			5.0			12.7	%		13.0	%
Total Benefits, Losses and Expenses			105,289				97,118			8.4			127.1	%		126.7	%			23,811				22,297			6.8			116.2	%		117.1	%
Income Before Income Tax Expense			34,083				30,478			11.8										11,600				9,749			19.0
Income Tax Expense			10,158				8,741			16.2										3,100				2,658			16.6
Operating Income			23,925				21,737			10.1										8,500				7,091			19.9
Realized Investment Gains, Net of Tax			5,373				3,836			40.1										1,946				734			165.1
Net Income		$	29,298			$	25,573			14.6									$	10,446			$	7,825			33.5
Operating Income Per Share - Diluted		$	0.29			$	0.27			9.4									$	0.10			$	0.09			19.0
Net Income Per Share - Diluted		$	0.36			$	0.32			13.9									$	0.13			$	0.10			32.5
Operating Return on Equity			7.4	%			7.2	%
Return on Equity			9.1	%			8.5	%
Other Key Information (all information presented on a STAT-basis)
Annualized New Business Premium by LOB
Traditional Life		$	12,186			$	7,521			62.0									$	2,397			$	1,490			60.9
Universal Life			3,501				3,929			(10.9	)									669				740			(9.6	)
Interest-sensitive Life			2,119				2,352			(9.9	)									520				521			(0.2	)
Total Issued New Business Premium by LOB		$	17,806			$	13,802			29.0									$	3,586			$	2,751			30.4
Annualized New Business Premium by Region
Alabama		$	15,477			$	11,881			30.3									$	3,133			$	2,311			35.6
Georgia			1,222				1,003			21.8										206				241			(14.5	)
Mississippi			1,107				918			20.6										247				199			24.1
Total Issued New Business Premium by Region		$	17,806			$	13,802			29.0									$	3,586			$	2,751			30.4
Actual vs. Expected Mortality Ratio*			104	%			96	%												111	%			103	%
Persistency Ratio*			90.7	%			91.2	%

Data may differ from actual due to rounding.

ALFA CORPORATION

NONINSURANCE SEGMENT (UNAUDITED)

(in thousands, except ratios and per share data)

		Twelve Months Ended December 31,											Three Months Ended December 31,
		2006				2005				% Change			2006				2005				% Change
INCOME STATEMENT
Revenues
Equity Interest in MidCountry Financial (net of expense)		$	1,385			$	1,154			20.0			$	416			$	(125	)		432.8
Loan Income (net of expense)			780				4,350			(82.1	)			1,054				1,141			(7.6	)
Other Net Investment Income			726				2,521			(71.2	)			655				750			(12.7	)
Total Net Investment Income			2,891				8,025			(64.0	)			2,125				1,766			20.3
Fee/Commission Income - Agency Operations			37,215				23,849			56.0				9,427				6,146			53.4
Other Income			1,188				1,428			(16.8	)			268				411			(34.8	)
Total Other Income			38,403				25,277			51.9				9,695				6,557			47.9
Total Revenues			41,294				33,302			24.0				11,820				8,323			42.0
Benefits, Losses and Expenses
Claims and Settlement Expenses - Agency Operations			3,527				2,766			27.5				951				566			68.0
Other Operating Expenses - Loan/Lease Operations			4,859				6,661			(27.1	)			1,045				1,518			(31.2	)
Other Operating Expenses - Agency Operations			29,091				21,121			37.7				7,041				5,656			24.5
Other Operating Expenses - Other Operations			2,812				662			324.8				2,001				59			3,291.5
Total Benefits, Losses and Expenses			40,289				31,210			29.1				11,038				7,799			41.5
Income Before Income Tax Expense			1,005				2,092			(52.0	)			782				524			49.2
Income Tax Expense			679				2,132			(68.2	)			585				1,676			(65.1	)
Operating Income (Loss)			326				(40	)		915.0				197				(1,152	)		117.1
Realized Investment Gains (Losses), Net of Tax			(51	)			(24	)		(112.5	)			(17	)			(56	)		69.6
Net Income (Loss)		$	275			$	(64	)		529.7			$	180			$	(1,208	)		114.9
Operating Income (Loss) Per Share - Diluted		$	0.00			$	(0.00	)		910.0			$	0.00			$	(0.01	)		117.0
Net Income (Loss) Per Share - Diluted		$	0.00			$	(0.00	)		527.1			$	0.00			$	(0.01	)		114.8
Operating Return on Equity			0.4	%			(0.1%)
Return on Equity			0.3	%			(0.1%)
Other Key Information
		12/31/06				12/31/05				% Change
Alfa Financial Corporation:
Loan Portfolio		$	128,352			$	124,502			3.1
Loan Portfolio Yield*			7.88	%			7.41	%
Loan Gross Charge-offs		$	4,378			$	778
Loan Net Charge-offs		$	4,293			$	649
Loan Delinquency Ratio*			1.99	%			1.44	%
MidCountry Financial Corporation:
Carrying Value (42% and 43% ownership at 12/31/06 and 12/31/05, respectively)		$	57,240			$	53,330			7.3
Equity in Net Earnings		$	1,385			$	1,154			20.0
Return on Carried Value*			2.4	%			2.2	%

Data may differ from actual due to rounding.

ALFA CORPORATION

CORPORATE SEGMENT AND ELIMINATIONS (UNAUDITED)

(in thousands, except ratios and per share data)

		Twelve Months Ended December 31,											Three Months Ended December 31,
		2006				2005				% Change			2006				2005				% Change
INCOME STATEMENT
Revenues
Investment Loss		$	(914	)		$	(1,387	)		34.1			$	(306	)		$	(218	)		(40.4	)
Interest Expense			(4,660	)			(2,869	)		(62.4	)			(1,229	)			(867	)		(41.8	)
Total Net Investment Loss			(5,574	)			(4,256	)		(31.0	)			(1,535	)			(1,085	)		(41.5	)
Other Income			(23,666	)			(12,048	)		(96.4	)			(5,457	)			(3,683	)		(48.2	)
Total Revenues			(29,240	)			(16,304	)		(79.3	)			(6,992	)			(4,768	)		(46.6	)
Benefits, Losses and Expenses
Claims and Settlement Expenses			(4,187	)			(1,663	)		(151.8	)			(1,260	)			(650	)		(93.8	)
Amortization of Deferred Policy Acquisition Costs			(787	)			(1,206	)		34.7				—				(471	)		100.0
Other Operating Expenses			(15,782	)			(6,983	)		(126.0	)			(2,269	)			(2,033	)		(11.6	)
Total Benefits, Claims, Losses and Settlement Expenses			(20,756	)			(9,852	)		(110.7	)			(3,529	)			(3,154	)		(11.9	)
Loss Before Income Tax Expense (Benefit)			(8,484	)			(6,452	)		(31.5	)			(3,463	)			(1,614	)		(114.6	)
Income Tax Expense (Benefit)			(2,874	)			340			(945.3	)			(1,117	)			588			(290.0	)
Operating Income (Loss)			(5,610	)			(6,792	)		17.4				(2,346	)			(2,202	)		(6.5	)
Realized Investment Gains (Losses), Net of Tax			—				—			0.0				—				—			0.0
Net Income (Loss)		$	(5,610	)		$	(6,792	)		17.4			$	(2,346	)		$	(2,202	)		(6.5	)
Operating Income (Loss) Per Share - Diluted		$	(0.07	)		$	(0.08	)		17.9			$	(0.03	)		$	(0.03	)		(5.8	)
Net Income (Loss) Per Share - Diluted		$	(0.07	)		$	(0.08	)		17.9			$	(0.03	)		$	(0.03	)		(5.8	)

Data may differ from actual due to rounding.

ALFA CORPORATION

INVESTMENT PORTFOLIO

(in thousands, except ratios and per share data)

						Twelve Months Ended December 31,																	Three Months Ended December 31,
						2006				2005				% Change									2006				2005				% Change
Alfa Corporation Consolidated Investment Portfolio - Other Key Information
																	Yields																	Yields
Net Investment Income and Pre-tax Yield:																	2006			2005														2006			2005
Fixed Income Securities						$	80,654			$	76,750			5.1			5.7	%		5.7	%1		$	20,961			$	19,173			9.3			5.9	%		5.7	%1
Equity Securities							4,284				2,912			47.1			3.9	%		2.8	%			1,357				736			84.4			5.0	%		2.8	%
Collateral Loans							10,125				8,502			19.1										2,586				2,322			11.4
Commercial Leases							187				6,220			(97.0	)									34				1,414			(97.6	)
Other Investment Income							23,564				20,281			16.2										6,847				5,752			19.0
Interest Expense							(15,438	)			(11,531	)		(33.9	)									(3,971	)			(3,375	)		(17.7	)
Investment Expenses							(10,113	)			(8,202	)		(23.3	)									(1,659	)			(1,600	)		(3.7	)
Total Net Investment Income						$	93,263			$	94,932			(1.8	)								$	26,155			$	24,422			7.1
Investment Portfolio Composition:						12/31/06				12/31/05
Fixed Income Securities, by Rating:2
		NAIC Rated		Moody’s Rated
		1		Aaa/Aa/A		$	1,353,897			$	1,288,015			5.1
		2		Baa			83,338				105,351			(20.9	)
		3		Ba			2,060				21,959			(90.6	)
		4		B			4,454				4,471			(0.4	)
		5		Caa			—				—			0.0
		6		In or near default			—				0.0
		Not Rated					3,000				—			100.0
Total Fixed Income Securities							1,446,749				1,419,796			1.9
Equity Securities							111,427				107,020			4.1
Collateral Loans							128,685				124,667			3.2
Other Invested Assets							318,067				211,440			50.4
Total Investments							2,004,928				1,862,923			7.6
Investment In Affiliates							120,819				138,457			(12.7	)
Total						$	2,125,747			$	2,001,380			6.2

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

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

Data may differ from actual due to rounding.

ALFA CORPORATION

QUARTERLY FINANCIAL SUPPLEMENT

December 31, 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		10,639,827		39,417,275
Pretax P&C Operating Income		19,996,255		32,528,491		27,338,061		29,125,239		108,988,046
P&C Statutory Invested Assets (2)		781,525,886		792,053,522		789,965,735		815,633,254
P&C Statutory Surplus		410,789,564		430,367,018		424,266,223		450,690,007
P&C Loss & LAE Reserves (1)		163,390,031		161,008,518		164,960,736		170,675,884
Pretax Life Net Investment Income		13,590,101		13,716,250		14,296,140		14,924,804		56,527,295
Pretax Life Operating Income		7,113,633		6,783,319		8,585,952		11,599,737		34,082,641
Life Statutory Invested Assets		1,002,957,159		999,648,875		1,017,945,275		1,031,591,536
Life Statutory Surplus		182,409,009		179,808,669		184,518,325		202,198,338

(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.