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,
SVP, CFO and CIO		Vice President – Public Relations
(334)613-4500		(334)613-4034

ALFA CORPORATION REPORTS 2007 RESULTS

Montgomery, Alabama (March 12, 2008) — Alfa Corporation (NASDAQ:ALFA) today announced financial results for the year ended December 31, 2007. Operating income for the year was $94,225,423, or $1.15 per diluted share, compared with operating income of $103,676,787, or $1.28 per diluted share for 2006, a decrease of 9.6% on a per share basis. Net income, which includes net realized investment gains, was $93,508,467, or $1.15 per diluted share for 2007, compared with $105,888,237, or $1.30 per diluted share in 2006, a per share decrease of 12.2%. Premiums and policy charges increased 4.0% to $714,838,275 for 2007.

Operating income for the fourth quarter of 2007 was $20,905,197, or $0.26 per diluted share, compared with fourth quarter 2006 operating income of $32,321,887, or $0.40 per diluted share. After net realized investment gains, net income for the fourth quarter of 2007 was $18,778,831, or $0.23 per diluted share, compared with $33,004,673, or $0.41 per diluted share, in the prior-year period. Premiums and policy charges increased 2.1% to $177,888,996 for the final three months of 2007.

Alfa’s results for the fourth quarter were affected by expenses associated with the previously announced definitive merger agreement with Alfa Mutual Insurance Company and Alfa Mutual Fire Insurance Company (referred to collectively as the Alfa Mutual Group) pursuant to which the Alfa Mutual Group, which owns a majority of Alfa Corp.’s common stock, will acquire for $22.00 per share all of the outstanding shares of Alfa Corp.’s common stock that it does not currently own. This transaction will result in Alfa Corp. being delisted with NASDAQ and becoming a privately held corporation owned jointly by the Alfa Mutual Group. Costs associated with this transaction added approximately $6 million of additional expense in the fourth quarter of 2007, resulting in an earnings decline of $0.07 per diluted share during the quarter.

Also, during the fourth quarter of 2007, Alfa Corporation recorded a loss of approximately $1,700,000 or $0.02 per diluted share resulting from its 41% ownership in MidCountry Financial Corp. In the quarter, reserves associated with MidCountry’s loan portfolios were strengthened.

In the fourth quarter of 2006, Alfa Corporation released $3,300,000 in reserves previously held for uncertain tax positions. This had a favorable impact on fourth quarter 2006 earnings of $0.04 per diluted share.

Full-year 2007 results were also affected when MidCountry Financial Corp. experienced a loss in its mortgage portfolio on loans originated by a company headquartered in Florida and primarily concentrated in Florida. This same entity defrauded MidCountry in the amount of $7,900,000 by misappropriating large principal payments on construction loans being serviced for MidCountry. The impact of this extraordinary loss on Alfa Corporation, resulting from its 41% ownership, was approximately $3,150,000 after-tax, or $0.03 per diluted share.

-END-

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.

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 STATEMENTS OF INCOME

(UNAUDITED)

		Years Ended December 31,								Statistics				Three Months Ended December 31,								Statistics
		2007			2006		% Change			2007		2006		2007			2006		% Change			2007		2006
Revenues
Premiums - Property and Casualty Insurance		625,938,511			604,241,557		3.59							155,490,330			153,799,283		1.10
Premiums - Life Insurance		50,740,513			46,019,117		10.26							13,003,112			11,539,534		12.68
Policy Charges - Life Insurance		38,159,251			36,825,726		3.62							9,395,554			8,946,229		5.02
Net Investment Income		94,804,825			93,262,710		1.65							19,273,753			26,155,184		(26.31	)
Other Income		27,685,404			28,386,795		(2.47	)						5,864,870			7,644,792		(23.28	)
Total Revenues		837,328,504			808,735,905		3.54							203,027,619			208,085,022		(2.43	)
Benefits, Losses and Expenses
Benefits, Claims, Losses and Settlement Expenses		480,548,807			458,175,979		4.88			57.39		56.65		117,066,707			111,608,379		4.89			57.66		53.64
Dividends to Policyholders		4,246,480			4,134,455		2.71			0.51		0.51		1,149,633			1,093,607		5.12			0.57		0.53
Amortization of Deferred Policy Acquisition Costs		134,741,937			130,041,533		3.61			16.09		16.08		29,339,436			35,187,709		(16.62	)		14.45		16.91
Other Operating Expenses		92,083,066			80,790,556		13.98			11.00		9.99		28,547,357			22,151,058		28.88			14.06		10.65
Total Benefits, Losses and Expenses		711,620,290			673,142,523		5.72			84.99		83.23		176,103,133			170,040,753		3.57			86.74		81.72
Income Before Income Tax Expense		125,708,214			135,593,382		(7.29	)		15.01		16.77		26,924,486			38,044,269		(29.23	)		13.26		18.28
Income Tax Expense		31,482,791			31,916,595		(1.36	)		25.04		23.54		6,019,289			5,722,382		5.19			22.36		15.04
Operating Income		94,225,423			103,676,787		(9.12	)						20,905,197			32,321,887		(35.32	)
Realized Investment Gains/(Losses), Net of Tax		(716,956	)		2,211,450		(132.42	)						(2,126,366	)		682,786		(411.42	)
Net Income		93,508,467			105,888,237		(11.69	)						18,778,831			33,004,673		(43.10	)
Operating Income Per Share - Basic		1.17			1.29		(9.42	)						0.26			0.40		(35.56	)
Operating Income Per Share - Diluted		1.15			1.28		(9.62	)						0.26			0.40		(35.69	)
Net Income Per Share - Basic		1.16			1.32		(11.98	)						0.23			0.41		(43.32	)
Net Income Per Share - Diluted		1.15			1.30		(12.18	)						0.23			0.41		(43.43	)
Dividends Per Share		0.4625			0.4300		7.56							0.1175			0.1100		6.82
Average Shares Outstanding - Basic		80,611,623			80,345,906		0.33							80,733,196			80,429,796		0.38
Average Shares Outstanding - Diluted		81,663,529			81,211,111		0.56							81,947,785			81,482,882		0.57

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

		December 31, 2007				December 31, 2006				% Change
Assets
Investments:
Fixed Maturities Held for Investment, at amortized cost (fair value $32,336 in 2007 and $57,272 in 2006)		$	30,217			$	55,052			-45.11	%
Fixed Maturities Available for Sale, at fair value (amortized cost $1,307,168,345 in 2007 and $1,436,188,473 in 2006)			1,306,366,704				1,446,693,702			-9.70	%
Equity Securities Available for Sale, at fair value (cost $92,812,252 in 2007 and $101,177,606 in 2006)			90,042,579				111,427,207			-19.19	%
Policy Loans			67,697,107				64,949,875			4.23	%
Collateral Loans			121,505,553				128,685,111			-5.58	%
Other Long-Term Investments			85,966,116				86,823,771			-0.99	%
Short-Term Investments, at fair value (amortized cost $412,967,736 in 2007 and $167,683,154 in 2006)			413,003,223				167,683,154			146.30	%
Total Investments			2,084,611,499				2,006,317,872			3.90	%
Cash			35,059,563				37,218,109			-5.80	%
Other Long-Term Investments in Affiliates			126,753,594				120,819,010			4.91	%
Accrued Investment Income			15,800,561				17,026,711			-7.20	%
Accounts Receivable			98,749,778				84,100,246			17.42	%
Reinsurance Balances Receivable			10,004,929				6,015,853			66.31	%
Deferred Policy Acquisition Costs			235,137,674				224,516,950			4.73	%
Goodwill			9,576,218				9,576,218			0.00	%
Other Intangible Assets (net of accumulated amortization of $2,050,200 in 2007 and $1,366,800 in 2006)			7,057,800				7,741,200			-8.83	%
Other Assets			19,001,569				20,906,925			-9.11	%
Total Assets		$	2,641,753,185			$	2,534,239,094			4.24	%
Liabilities and Stockholders’ Equity
Policy Liabilities and Accruals - Property and Casualty Insurance		$	187,701,565			$	172,664,652			8.71	%
Policy Liabilities and Accruals - Life Insurance Interest-Sensitive Products			687,237,890				646,354,761			6.33	%
Policy Liabilities and Accruals - Life Insurance Other Products			221,835,651				205,449,027			7.98	%
Unearned Premiums			240,275,755				236,481,371			1.60	%
Dividends to Policyholders			12,190,719				11,882,776			2.59	%
Premium Deposit and Retirement Deposit Funds			4,534,402				4,921,879			-7.87	%
Deferred Income Taxes			3,171,775				25,547,554			-87.58	%
Other Liabilities			80,051,500				75,222,398			6.42	%
Due to Affiliates			27,621,447				24,355,859			13.41	%
Commercial Paper			197,367,051				206,923,215			-4.62	%
Notes Payable			70,000,000				70,000,000			0.00	%
Notes Payable to Affiliates			31,402,470				27,516,459			14.12	%
Total Liabilities			1,763,390,225				1,707,319,951			3.28	%
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: 80,761,779 in 2007 and 80,459,113 in 2006			83,783,024				83,783,024			0.00	%
Capital in Excess of Par Value			34,169,542				27,502,452			24.24	%
Accumulated Other Comprehensive Income (unrealized gains/(losses) on securities available for sale, net of tax, of ($662,496) in 2007 and $14,019,988 in 2006; pension liability adjustment, net of tax, of $703,495 in 2007; unrealized gains on interest rate swap contract, net of tax, of $105,541 in 2006; unrealized gains on other long-term investments, net of tax, of $306,260 in 2007 and $75,006 in 2006)			347,259				14,200,535			-97.55	%
Retained Earnings			794,972,513				738,811,778			7.60	%
Treasury Stock, at cost (shares, 3,021,245 in 2007 and 3,323,911 in 2006)			(34,909,378	)			(37,378,646	)		-6.61	%
Total Stockholders’ Equity			878,362,960				826,919,143			6.22	%
Total Liabilities and Stockholders’ Equity		$	2,641,753,185			$	2,534,239,094			4.24	%
Book Value per share		$	10.88			$	10.28

Alfa Corporation

Investor Supplement

Fourth Quarter 2007

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
		2007				2006				% Change			2007			2006			2007				2006				% Change			2007			2006
INCOME STATEMENT
Revenues
Automobile Premiums		$	387,474			$	379,762			2.0									$	95,219			$	96,318			(1.1	)
Homeowner Premiums			219,707				207,297			6.0										55,394				52,189			6.1
Other Premiums			18,758				17,183			9.2										4,877				5,292			(7.8	)
Total Premiums - Property and Casualty Insurance			625,939				604,242			3.6			100.0	%		100.0	%			155,490				153,799			1.1			100.0	%		100.0	%
Net Investment Income			45,413				39,417			15.2										10,870				10,640			2.2
Other Income			14,540				13,650			6.5										3,032				3,406			(11.0	)
Total Revenues			685,892				657,309			4.3										169,392				167,845			0.9
Benefits, Losses and Expenses
Incurred Losses (Non-storm)			352,050				336,537			4.6			56.2	%		55.7	%			89,278				86,884			2.8			57.4	%		56.5	%
Incurred Losses (Storm)			13,916				13,781			1.0			2.2	%		2.3	%			(1	)			8			(112.5	)		0.0	%		0.0	%
Loss Adjustment Expense			30,701				30,015			2.3			4.9	%		5.0	%			6,716				7,955			(15.6	)		4.3	%		5.2	%
Total Benefits, Claims, Losses and Settlement Expenses			396,667				380,333			4.3			63.3	%		63.0	%			95,993				94,847			1.2			61.7	%		61.7	%
Amortization of Deferred Policy Acquisition Costs			120,554				118,961			1.3			19.3	%		19.7	%			27,057				32,132			(15.8	)		17.4	%		20.9	%
Other Operating Expenses			55,018				49,026			12.2			8.8	%		8.1	%			16,133				11,741			37.4			10.4	%		7.6	%
Total Operating Expenses			175,572				167,987			4.5			28.1	%		27.8	%			43,190				43,873			(1.6	)		27.8	%		28.5	%
Total Benefits, Losses and Expenses			572,239				548,320			4.4			91.4	%		90.8	%			139,183				138,720			0.3			89.5	%		90.2	%
Income Before Income Tax Expense			113,653				108,989			4.3										30,209				29,125			3.7
Income Tax Expense			28,278				23,954			18.1										7,662				3,153			143.0
Operating Income *			85,375				85,035			0.4										22,547				25,972			(13.2	)
Realized Investment Gains (Losses), Net of Tax			266				(3,110	)		108.6										1,952				(1,246	)		256.7
Net Income		$	85,641			$	81,925			4.5									$	24,499			$	24,726			(0.9	)
Operating Income Per Share - Diluted *		$	1.05			$	1.05			(0.2	)								$	0.28			$	0.32			(13.7	)
Net Income Per Share - Diluted		$	1.05			$	1.01			4.0									$	0.30			$	0.30			(1.5	)
Operating Return on Equity*			16.4	%			17.9	%
Return on Equity*			16.4	%			17.2	%
Other Key Information
Earned Premium by Market
Alabama		$	450,749			$	440,192			2.4			72.0	%		72.9	%		$	113,150			$	110,946			2.0			72.8	%		72.1	%
Georgia			32,326				31,670			2.1			5.2	%		5.2	%			8,189				7,925			3.3			5.3	%		5.2	%
Mississippi			44,937				40,674			10.5			7.2	%		6.7	%			11,557				10,488			10.2			7.4	%		6.8	%
Alliance/VA Mutual			25,707				21,239			21.0			4.1	%		3.5	%			6,798				5,206			30.6			4.4	%		3.4	%
Nonstandard			72,220				70,467			2.5			11.5	%		11.7	%			15,796				19,234			(17.9	)		10.2	%		12.5	%
Total Earned Premium		$	625,939			$	604,242			3.6			100.0	%		100.0	%		$	155,490			$	153,799			1.1			100.0	%		100.0	%
Incurred Losses by Market (Non-storm)
Alabama		$	241,055			$	238,606			1.0			53.5	%		54.2	%		$	61,483			$	59,410			3.5			54.3	%		53.5	%
Georgia			22,753				20,024			13.6			70.4	%		63.2	%			6,221				4,266			45.8			76.0	%		53.8	%
Mississippi			26,323				19,684			33.7			58.6	%		48.4	%			7,583				5,391			40.7			65.6	%		51.4	%
Alliance/VA Mutual			11,959				12,064			(0.9	)		46.5	%		56.8	%			3,627				4,265			(15.0	)		53.4	%		81.9	%
Nonstandard			49,960				46,159			8.2			69.2	%		65.5	%			10,364				13,552			(23.5	)		65.6	%		70.5	%
Total Incurred Losses		$	352,050			$	336,537			4.6			56.2	%		55.7	%		$	89,278			$	86,884			2.8			57.4	%		56.5	%
Lapse Ratio: Preferred and Standard Classes *			3.39	%			3.50	%												3.66	%			3.70	%
Net Written Premium by LOB
Automobile		$	384,294			$	391,190			(1.8	)								$	90,228			$	91,600			(1.5	)
Homeowner			222,133				212,717			4.4										50,888				49,267			3.3
Other			19,228				18,118			6.1										4,253				4,787			(11.2	)
Total Net Written Premium		$	625,655			$	622,025			0.6									$	145,369			$	145,654			(0.2	)
Net Written Premium by Market
Alabama		$	452,623			$	445,158			1.7									$	106,707			$	105,804			0.9
Georgia			32,493				32,010			1.5										7,785				7,568			2.9
Mississippi			46,802				43,832			6.8										12,036				10,873			10.7
Alliance/VA Mutual			27,138				20,662			31.3										7,082				5,245			35.0
Nonstandard			66,599				80,363			(17.1	)									11,759				16,164			(27.3	)
Total Net Written Premium		$	625,655			$	622,025			0.6									$	145,369			$	145,654			(0.2	)

Data may differ from actual due to rounding.

Market information reflects presentation change for Nonstandard.

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
		2007				2006				% Change			2007			2006			2007				2006				% Change			2007			2006
INCOME STATEMENT
Revenues
Traditional Life Insurance Premiums		$	50,358			$	45,526			10.6									$	13,003			$	11,540			12.7
Universal Life Policy Charges			22,554				21,695			4.0										5,711				5,416			5.4
Universal Life Policy Charges - COLI			4,201				4,018			4.6										830				772			7.5
Interest-sensitive Life Policy Charges			11,403				11,113			2.6										2,854				2,758			3.5
Annuity Policy Charges			2				—			100.0										—				—			0.0
Group Life Insurance Premiums			529				493			7.3										—				—			0.0
Total Premiums and Policy Charges - Life Insurance			89,047				82,845			7.5			100.0	%		100.0	%			22,398				20,486			9.3			100.0	%		100.0	%
Net Investment Income			59,644				56,527			5.5										14,973				14,925			0.3
Other Income			—				—			0.0										—				—			0.0
Total Revenues			148,691				139,372			6.7										37,371				35,411			5.5
Benefits, Claims, Losses and Settlement Expenses			83,974				78,502			7.0			94.3	%		94.8	%			20,948				17,070			22.7			93.5	%		83.3	%
Dividends to Policyholders			4,246				4,134			2.7			4.8	%		5.0	%			1,150				1,094			5.1			5.1	%		5.3	%
Amortization of Deferred Policy Acquisition Costs			14,187				11,868			19.5			15.9	%		14.3	%			2,283				3,055			(25.3	)		10.2	%		14.9	%
Other Operating Expenses			15,447				10,785			43.2			17.3	%		13.0	%			4,021				2,592			55.1			18.0	%		12.7	%
Total Benefits, Losses and Expenses			117,854				105,289			11.9			132.3	%		127.1	%			28,402				23,811			19.3			126.8	%		116.2	%
Income Before Income Tax Expense			30,837				34,083			(9.5	)									8,969				11,600			(22.7	)
Income Tax Expense			7,495				10,158			(26.2	)									599				3,100			(80.7	)
Operating Income			23,342				23,925			(2.4	)									8,370				8,500			(1.5	)
Realized Investment Gains (Losses), Net of Tax			(735	)			5,373			(113.7	)									(3,856	)			1,946			(298.2	)
Net Income		$	22,607			$	29,298			(22.8	)								$	4,514			$	10,446			(56.8	)
Operating Income Per Share - Diluted		$	0.29			$	0.29			(3.0	)								$	0.10			$	0.10			(2.1	)
Net Income Per Share - Diluted		$	0.28			$	0.36			(23.3	)								$	0.06			$	0.13			(57.0	)
Operating Return on Equity			6.8	%			7.4	%
Return on Equity			6.6	%			9.1	%
Other Key Information (all information presented on a STAT-basis)
Annualized New Business Premium by LOB
Traditional Life		$	11,275			$	12,186			(7.5	)								$	2,474			$	2,397			3.2
Universal Life			3,339				3,501			(4.6	)									676				669			1.0
Interest-sensitive Life			2,092				2,119			(1.3	)									426				520			(18.1	)
Total Issued New Business Premium by LOB		$	16,706			$	17,806			(6.2	)								$	3,576			$	3,586			(0.3	)
Annualized New Business Premium by Region
Alabama		$	14,383			$	15,477			(7.1	)								$	3,112			$	3,133			(0.7	)
Georgia			1,082				1,222			(11.5	)									219				206			6.3
Mississippi			1,241				1,107			12.1										245				247			(0.8	)
Total Issued New Business Premium by Region		$	16,706			$	17,806			(6.2	)								$	3,576			$	3,586			(0.3	)
Actual vs. Expected Mortality Ratio *			88	%			104	%												106	%			111	%
Persistency Ratio *			90.7	%			90.7	%

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,
		2007				2006				% Change			2007				2006				% Change
INCOME STATEMENT
Revenues
Equity Interest in MidCountry Financial (net of expense)		$	(7,287	)		$	1,385			(626.1	)		$	(3,486	)		$	416			(938.0	)
Loan Income (net of expense)			5,037				780			545.8				942				1,054			(10.6	)
Other Net Investment Income			2,418				726			233.1				1,209				655			84.6
Total Net Investment Income (Loss)			168				2,891			(94.2	)			(1,335	)			2,125			(162.8	)
Fee/Commission Income - Agency Operations			31,549				37,215			(15.2	)			6,160				9,427			(34.7	)
Other Income			1,107				1,188			(6.8	)			271				268			1.1
Total Other Income			32,656				38,403			(15.0	)			6,431				9,695			(33.7	)
Total Revenues			32,824				41,294			(20.5	)			5,096				11,820			(56.9	)
Benefits, Losses and Expenses
Claims and Settlement Expenses - Agency Operations			4,201				3,527			19.1				1,065				951			12.0
Other Operating Expenses - Loan/Lease Operations			4,151				4,859			(14.6	)			1,041				1,045			(0.4	)
Other Operating Expenses - Agency Operations			25,028				29,091			(14.0	)			5,190				7,041			(26.3	)
Other Operating Expenses - Other Operations			1,453				2,812			(48.3	)			858				2,001			(57.1	)
Total Benefits, Losses and Expenses			34,833				40,289			(13.5	)			8,154				11,038			(26.1	)
Income (Loss) Before Income Tax Expense (Benefit)			(2,009	)			1,005			(299.9	)			(3,058	)			782			(491.0	)
Income Tax Expense (Benefit)			(677	)			679			(199.7	)			(1,277	)			585			(318.3	)
Operating Income (Loss)			(1,332	)			326			(508.6	)			(1,781	)			197			(1,004.1	)
Realized Investment Gains (Losses), Net of Tax			(25	)			(51	)		51.0				—				(17	)		100.0
Net Income (Loss)		$	(1,357	)		$	275			(593.5	)		$	(1,781	)		$	180			(1,089.4	)
Operating Income (Loss) Per Share - Diluted		$	(0.02	)		$	0.00			(506.3	)		$	(0.02	)		$	0.00			(998.9	)
Net Income (Loss) Per Share - Diluted		$	(0.02	)		$	0.00			(590.7	)		$	(0.02	)		$	0.00			(1,083.8	)
Operating Return on Equity			(1.6	%)			0.4	%
Return on Equity			(1.7	%)			0.3	%
Other Key Information		12/31/07				12/31/06				% Change
Alfa Financial Corporation:
Loan Portfolio		$	121,140			$	128,352			(5.6	)
Loan Portfolio Yield *			8.11	%			7.88	%
Loan Gross Charge-offs		$	794			$	4,378
Loan Net Charge-offs		$	(121	)		$	4,293
Loan Delinquency Ratio *			3.12	%			1.99	%
MidCountry Financial Corporation:
Carrying Value (41% and 42% ownership at 12/31/07 and
12/31/06, respectively)		$	79,607			$	57,240			39.1
Equity in Net Earnings		$	(7,287	)		$	1,385			(626.1	)
Return on Carried Value *			-10.6	%			2.5	%

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,
		2007				2006				% Change			2007				2006				% Change
INCOME STATEMENT
Revenues
Premiums - Life Insurance		$	(146	)		$	—			(100.0	)		$	—			$	—			0.0
Investment Loss			(5,160	)			(914	)		(464.6	)			(4,043	)			(306	)		(1,221.2	)
Interest Expense			(5,260	)			(4,660	)		(12.9	)			(1,191	)			(1,229	)		3.1
Total Net Investment Loss			(10,420	)			(5,574	)		(86.9	)			(5,234	)			(1,535	)		(241.0	)
Other Income			(19,511	)			(23,666	)		17.6				(3,598	)			(5,457	)		34.1
Total Revenues			(30,077	)			(29,240	)		(2.9	)			(8,832	)			(6,992	)		(26.3	)
Benefits, Losses and Expenses
Claims and Settlement Expenses			(4,293	)			(4,187	)		(2.5	)			(939	)			(1,260	)		25.5
Amortization of Deferred Policy Acquisition Costs			—				(787	)		100.0				—				—			0.0
Other Operating Expenses			(9,013	)			(15,782	)		42.9				1,304				(2,269	)		157.5
Total Benefits, Claims, Losses and Settlement Expenses			(13,306	)			(20,756	)		35.9				365				(3,529	)		110.3
Loss Before Income Tax Expense (Benefit)			(16,771	)			(8,484	)		(97.7	)			(9,197	)			(3,463	)		(165.6	)
Income Tax Expense (Benefit)			(3,612	)			(2,874	)		(25.7	)			(965	)			(1,117	)		13.6
Operating Income (Loss)			(13,159	)			(5,610	)		(134.6	)			(8,232	)			(2,346	)		(250.9	)
Realized Investment Gains (Losses), Net of Tax			(223	)			—			(100.0	)			(223	)			—			(100.0	)
Net Income (Loss)		$	(13,382	)		$	(5,610	)		(138.5	)		$	(8,455	)		$	(2,346	)		(260.4	)
Operating Income (Loss) Per Share - Diluted		$	(0.16	)		$	(0.07	)		(133.3	)		$	(0.10	)		$	(0.03	)		(248.9	)
Net Income (Loss) Per Share - Diluted		$	(0.16	)		$	(0.07	)		(137.2	)		$	(0.10	)		$	(0.03	)		(258.4	)

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,
		2007				2006				% Change									2007				2006				% Change
Alfa Corporation Consolidated Investment Portfolio - Other Key Information
													Yields																	Yields
Net Investment Income and Pre-tax Yield:													2007			2006														2007			2006
Fixed Income Securities		$	84,279			$	80,654			4.5			6.1	%		5.7	% 1		$	19,886			$	20,961			(5.1	)		5.8	%		5.9	% 1
Equity Securities			3,513				4,284			(18.0	)		3.5	%		3.9	%			838				1,357			(38.2	)		3.3	%		5.0	%
Collateral Loans			10,260				10,125			1.3										2,564				2,586			(0.9	)
Commercial Leases			129				187			(31.0	)									40				34			17.6
Other Investment Income			22,567				23,564			(4.2	)									4,848				6,847			(29.2	)
Interest Expense			(15,926	)			(15,438	)		(3.2	)									(3,804	)			(3,971	)		4.2
Investment Expenses			(10,018	)			(10,113	)		0.9										(5,098	)			(1,659	)		(207.3	)
Total Net Investment Income		$	94,804			$	93,263			1.7									$	19,274			$	26,155			(26.3	)
Investment Portfolio Composition:		12/31/07				12/31/06
Fixed Income Securities, by Rating: 2
NAIC Rated                     Moody’s Rated
1                         Aaa/Aa/A		$	1,225,710			$	1,353,897			(9.5	)
2                         Baa			66,939				83,338			(19.7	)
3                         Ba			8,779				2,060			326.2
4                         B			1,969				4,454			(55.8	)
5                         Caa			—				—			0.0
6                         In or near default			—				—			0.0
Not Rated			3,000				3,000			0.0
Total Fixed Income Securities			1,306,397				1,446,749			(9.7	)
Equity Securities			90,043				111,427			(19.2	)
Collateral Loans			121,506				128,685			(5.6	)
Other Invested Assets			566,666				319,457			77.4
Total Investments			2,084,612				2,006,318			3.9
Investment In Affiliates			126,754				120,819			4.9
Total		$	2,211,366			$	2,127,137			4.0

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

December 31, 2007

(Unaudited)

Additional Information

		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
		07:1Q		07:2Q		07:3Q		07:4Q		2007
Pretax P&C Net Investment Income		11,561,426		11,282,501		11,699,476		10,869,737		45,413,140
Pretax P&C Operating Income		13,742,157		37,943,043		31,757,920		30,209,696		113,652,816
P&C Statutory Invested Assets (2)		858,199,394		868,459,544		871,242,094		767,482,436
P&C Statutory Surplus		458,720,955		468,199,817		481,907,743		508,912,184
P&C Loss & LAE Reserves (1)		186,168,206		184,182,945		183,219,117		184,637,311
Pretax Life Net Investment Income		14,638,077		15,097,218		14,935,394		14,973,146		59,643,835
Pretax Life Operating Income		4,685,844		9,774,858		7,404,663		8,970,167		30,835,532
Life Statutory Invested Assets		1,066,821,010		1,078,632,782		1,085,646,785		1,075,396,813
Life Statutory Surplus		206,159,735		215,767,284		220,258,634		213,437,747

(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.