Exhibit 99.1

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-1A

COMPARATIVE BALANCE SHEET

ASSETS

	2/28/10		3/31/10		4/30/10		5/31/10		6/30/10		7/31/10
CURRENT ASSETS:
Cash (Attach Recons. & Bk Stmts.)	2,011		2,740		2,752		2,468		3,305		6,606
Investment securities, at market	226,471		126,084		114,645		108,702		90,750		72,751
Prepaid expense & deposits	30,000		30,000		30,000		30,000		30,000		30,000
TOTAL CURRENT ASSETS	258,482		158,824		147,397		141,170		124,055		109,357
OTHER ASSETS:
Note receivable from AIC	20,000,000		20,000,000		20,000,000		20,000,000		20,000,000		20,000,000
Valuation allowance	(20,000,000	)	(20,000,000	)	(20,000,000	)	(20,000,000	)	(20,000,000	)	(20,000,000	)
Investment in AIC, at underlying book value	2,947,686		2,947,686		2,227,531		2,227,531		2,227,531		1,584,091
Contingent claims	0		0		0		0		0		0
TOTAL OTHER ASSETS	2,947,686		2,947,686		2,227,531		2,227,531		2,227,531		1,584,091
TOTAL ASSETS	3,206,168		3,106,510		2,374,928		2,368,701		2,351,586		1,693,448

I CERTIFY UNDER PENALTY OF PERJURY THAT THIS 5 PAGE OPERATING REPORT IS TRUE AND CORRECT.

Date Submitted August 10, 2010 Signed /s/ Gary N Thompson Printed Name of Signatory Gary N Thompson

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-1B

COMPARATIVE BALANCE SHEET

LIABILITIES AND STOCKHOLDERS EQUITY

	2/28/10		3/31/10		4/30/10		5/31/10		6/30/10		7/31/10
LIABILITIES:
Post-Petition debt (Sched. C)	66,980		26,796		28,245		33,237		29,440		30,431
Pre-Petition Debt:
Litigation claims	22,000,000		22,000,000		22,000,000		22,000,000		22,000,000		22,000,000
Unsecured liabilities	46,054		46,054		46,054		46,054		46,054		46,054
Unsecured debt	116,110,260		116,110,260		116,110,260		116,110,260		116,110,260		116,110,260
TOTAL LIABILITIES	138,223,294		138,183,110		138,184,559		138,189,551		138,185,754		138,186,745
SHAREHOLDERS EQUITY:
Preferred stock	0		0		0		0		0		0
Common stock	6,274,000		6,274,000		6,274,000		6,274,000		6,274,000		6,274,000
Paid-in capital	199,660,000		199,660,000		199,660,000		199,660,000		199,660,000		199,660,000
Treasury stock	(29,969,000	)	(29,969,000	)	(29,969,000	)	(29,969,000	)	(29,969,000	)	(29,969,000	)
Retained earnings:
As of filing date	(281,005,796	)	(281,005,796	)	(281,005,796	)	(281,005,796	)	(281,005,796	)	(281,005,796	)
After filing date	(29,976,330	)	(30,035,804	)	(30,768,835	)	(30,780,054	)	(30,793,372	)	(31,452,501	)
TOTAL SHAREHOLDERS EQUITY	(135,017,126	)	(135,076,600	)	(135,809,631	)	(135,820,850	)	(135,834,168	)	(136,493,297	)
TOTAL LIABILITIES AND SHAREHOLDER EQUITY	3,206,168		3,106,510		2,374,928		2,368,701		2,351,586		1,693,448

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-2

STATEMENT OF INCOME

	2/28/10		3/31/10		4/30/10		5/31/10		6/30/10		7/31/10
REVENUE:
Net investment income	206		120		61		57		49		0
Net realized gain	0		0		0		0		0		0
Other	0		0		0		0		0		0
OPERATING EXPENSES:
Salaries and benefits	(4,561	)	(4,589	)	(4,731	)	(4,780	)	(4,681	)	(4,748	)
Board fees and expenses	0		0		0		0		0		0
Financial advisor fees and expenses	0		0		0		0		0		0
Legal fees and expenses	(51,710	)	(5,919	)	(4,459	)	(5,550	)	(3,762	)	(5,207	)
Accounting fees and expenses	0		0		0		0		0		(3,240	)
Actuarial services	0		0		0		0		0		0
Insurance	0		(41,708	)	0		0		0		0
Franchise taxes	0		(2,002	)	0		0		0		0
Filing fees and expenses	0		(4,090	)	(2,978	)	0		(3,927	)	(976	)
Overhead expenses	(789	)	(779	)	(769	)	(746	)	(746	)	(742	)
Miscellaneous	(244	)	(507	)	0		(200	)	(250	)	(777	)
NET OPERATING INCOME / LOSS	(57,098	)	(59,474	)	(12,876	)	(11,219	)	(13,317	)	(15,690	)
OTHER INCOME (EXPENSE):
Interest expense	0		0		0		0		0		0
Income tax refund	0		0		0		0		0		0
Write-off of contingent claim (note)	0		0		0		0		0		0
Equity in operating earnings of AIC	1,335,695		0		(734,008	)	0		0		(657,635	)
Equity in unrealized losses of securities of AIC	(79,155	)	0		13,853		0		0		14,196
TOTAL OTHER INCOME (EXPENSE)	1,256,540		0		(720,155	)	0		0		(643,439	)
NET INCOME (LOSS)	1,199,442		(59,474	)	(733,031	)	(11,219	)	(13,317	)	(659,129	)

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-3

SOURCES AND USE OF CASH

	2/28/10		3/31/10		4/30/10		5/31/10		6/30/10		7/31/10
CASH DIFFERENCE:
Current ending cash balance	2,011		2,740		2,752		2,468		3,305		6,606
Less ending prior month balance	(1,798	)	(2,011	)	(2,740	)	(2,752	)	(2,468	)	(3,305	)
NET CASH INCREASE (DECREASE)	213		729		12		(284	)	837		3,301
SOURCES OF CASH:
Net income (loss)	1,199,442		(59,474	)	(733,031	)	(11,219	)	(13,317	)	(659,129	)
Write-off of contingent claim	0		0		0		0		0		0
Equity in earnings and unrealized losses of AIC	(1,256,540	)	0		720,155		0		0		643,439
Decrease in:
Receivables	0		0		0		0		0		0
Marketable securities	10,894		100,387		11,438		5,943		17,951		18,000
Prepaid expenses & deposits	0		0		0		0		0		0
Increase in:
Post- petition debt	46,417		0		1,450		4,992		0		0
Pre-petition debt	0		0		0		0		0		0
TOTAL SOURCES OF CASH	213		40,913		12		(284	)	4,634		2,310
USES OF CASH:
Increase in:
Receivables	0		0		0		0		0		0
Marketable securities	0		0		0		0		0		0
Decrease in:
Post- petition debt	0		(40,184	)	0		0		(3,797	)	991
Pre-petition debt	0		0		0		0		0		0
TOTAL USES OF CASH	0		(40,184	)	0		0		(3,797	)	991
NET CASH INCREASE (DECREASE)	213		729		12		(284	)	837		3,301

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

SCHEDULE C

SCHEDULE OF POST PETITION DEBT

	2/28/10	3/31/10	4/30/10	5/31/10	6/30/10	7/31/10
TRADE ACCOUNTS PAYABLE	66,980	26,796	28,245	33,237	29,440	30,431
PAYROLL AND PAYROLL TAXES	0	0	0	0	0	0
TAXES PAYABLE	0	0	0	0	0	0
TOTAL POST PETITION DEBT	66,980	26,796	28,245	33,237	29,440	30,431