Montgomery, Ala. (March 12, 2008) – Alfa Corp. today announced financial results for the year ended Dec. 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 percent 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 percent. Premiums and policy charges increased 4.0 percent 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 percent 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 Co. and Alfa Mutual Fire Insurance Co. (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 Corp. recorded a loss of approximately $1,700,000 or $0.02 per diluted share resulting from its 41 percent ownership in MidCountry Financial Corp.. In the quarter, reserves associated with MidCountry's loan portfolios were strengthened.

In the fourth quarter of 2006, Alfa Corp. 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 Corp., resulting from its 41 percent ownership, was approximately $3,150,000 after-tax, or $0.03 per diluted share.

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

The associated investor supplement package for the fourth quarter ended Dec. 31, 2007, may be found by clicking on the following link: http://www.irinfo.com/alfa/ALFA4q07mdt.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 Corp.'s filings with the Securities and Exchange Commission.

FINANCIAL CONTACT:
Stephen G. Rutledge
Senior VP, CFO and Chief Investment Officer
(334) 613-4500

MEDIA CONTACT:
David C. Rickey
Vice President - Public Relations
(334) 613-4034