Alfa Corp. Reports Quarterly Net Realized Investment Gains

Montgomery, Ala.-based Alfa Corp. has reported its third-quarter net income, which includes net realized investment gains, totaled $25.1 million, or 31 cents per diluted share, compared with net income of $20.7 million, or 26 cents per diluted share, for the same period in 2004, a per-share increase of nearly 21 percent.

Premiums and policy charges increased 15 percent to $160.89 million for the third quarter. Operating income in the quarter ended Sept. 30 was $24.22 million, or 30 cents per diluted share, compared with operating income of $19.54 million, or 24 cents per diluted share, for the third quarter of 2004, a per-share increase of 23.5 percent.

For the nine months ended Sept. 30, net income (again, including investment gains) was $75.23 million, or 93 cents per diluted share, compared with $66.76 million, or 83 cents per diluted share, for the same period in 2004, a per-share increase of 12.5 percent. Premiums and policy charges increased 13 percent to $470.16 million for the first nine months of 2005.

Jerry A. Newby, CEO of Alfa Corp. said in a written statement he was pleased with the company’s results. “Our operating performance was driven by the property and casualty combined ratio, as well as the premium growth in our life company. This was accomplished at the same time our employees and policyholders were dealing with the impact of another large storm in the Gulf Coast region.”

Newby praised Alfa employees’ response to Hurricane Katrina’s devastation of New Orleans and a sizable portion of the Mississippi Gulf Coast, pointing both to Alfa staff members’ volunteer work on behalf of people impacted by the storm as well as the work of Alfa Insuance workers’ intense and ongoing efforts to service policies held by residents of that region.