Exhibit 99.1

CASE NAME: Acceptance Insurance Companies Inc.
CASE NO: 05-80059	Form OPR-1A

	8/31/06		9/30/06		10/31/06		11/30/06		12/31/06		1/31/07
CURRENT ASSETS:
Cash (Attach Recons. & Bk Stmts.)	(90,242	)	2,752		291		(585	)	816		824
Investment securities, at market	2,158,846		1,968,477		1,932,805		1,921,375		1,807,249		1,756,026
Prepaid expense & deposits	60,000		60,000		60,000		60,000		60,000		60,000
TOTAL CURRENT ASSETS	2,128,604		2,031,229		1,993,096		1,980,790		1,868,065		1,816,850
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	8,830,983		8,830,983		11,691,065		11,691,065		11,691,065		11,736,045
Contingent claims	21,500,000		21,500,000		21,500,000		21,500,000		21,500,000		21,500,000
TOTAL OTHER ASSETS	30,330,983		30,330,983		33,191,065		33,191,065		33,191,065		33,236,045
TOTAL ASSETS	32,459,587		32,362,212		35,184,161		35,171,855		35,059,130		35,052,895

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

Date Submitted     February 12, 2007 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

	8/31/06		9/30/06		10/31/06		11/30/06		12/31/06		1/31/07
LIABILITIES:
Post-Petition debt (Sched. C)	82,589		38,273		65,544		103,765		18,603		34,724
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	138,238,903		138,194,587		138,221,858		138,260,079		138,174,917		138,191,038
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	(738,520	)	(791,579	)	2,003,099		1,952,572		1,925,009		1,902,653
TOTAL SHAREHOLDERS EQUITY	(105,779,316	)	(105,832,375	)	(103,037,697	)	(103,088,224	)	(103,115,787	)	(103,138,143	)
TOTAL LIABILITIES AND SHAREHOLDER EQUITY	32,459,587		32,362,212		35,184,161		35,171,855		35,059,130		35,052,895

CASE NAME: Acceptance Insurance Companies Inc.
CASE NO: 05-80059	Form OPR-2 STATEMENT OF INCOME

	8/31/06		9/30/06		10/31/06		11/30/06		12/31/06		1/31/07
REVENUE:
Net investment income	9,689		8,436		8,897		8,211		7,667		8,408
Net realized gain	0		0		0		0		0		0
Other	0		0		0		0		0		0
OPERATING EXPENSES:
Salaries and benefits	(6,618	)	(6,610	)	(6,498	)	(6,498	)	(6,498	)	(7,222	)
Board fees and expenses	0		0		0		0		0		0
Legal fees and expenses	(185,664	)	(38,990	)	(49,827	)	(50,240	)	(26,690	)	(68,191	)
Accounting fees and expenses	0		0		(11,978	)	0		0		0
Insurance	0		0		0		0		0		0
Franchise taxes	0		(13,500	)	0		0		0		0
Filing fees and expenses	(1,955	)	(2,333	)	(5,974	)	(1,994	)	(1,957	)	(327	)
Miscellaneous	(39	)	(62	)	(24	)	(5	)	(86	)	(5	)
NET OPERATING INCOME / LOSS	(184,587	)	(53,059	)	(65,404	)	(50,526	)	(27,564	)	(67,337	)
OTHER INCOME (EXPENSE):
Interest expense	0		0		0		0		0		0
Income tax refund	0		0		0		0		0		0
Equity in operating earnings of AIC	0		0		2,388,299		0		0		(41,826	)
Equity in unrealized losses of securities of AIC	0		0		471,783		0		0		86,806
TOTAL OTHER INCOME (EXPENSE)	0		0		2,860,082		0		0		44,980
NET INCOME (LOSS)	(184,587	)	(53,059	)	2,794,678		(50,526	)	(27,564	)	(22,357	)

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059 Form OPR-3 SOURCES AND USE OF CASH

	8/31/06		9/30/06		10/31/06		11/30/06		12/31/06		1/31/07
CASH DIFFERENCE:
Current ending cash balance	(90,242	)	2,752		291		(585	)	816		824
Less ending prior month balance	(10,418	)	90,242		(2,752	)	(291	)	585		(816	)
NET CASH INCREASE (DECREASE)	(100,660	)	92,994		(2,461	)	(876	)	1,401		8
SOURCES OF CASH:
Net income (loss)	(184,587	)	(53,059	)	2,794,678		(50,526	)	(27,564	)	(22,357	)
Equity in earnings and unrealized losses of AIC	0		0		(2,860,082	)	0		0		(44,980	)
Decrease in:
Receivables	0		0		0		0		0		0
Marketable securities	49,957		190,369		35,672		11,430		114,127		51,224
Increase in:
Post-petition debt	33,970		0		27,271		38,220		0		16,121
Pre-petition debt	0		0		0		0		0		0
TOTAL SOURCES OF CASH	(100,660	)	137,310		(2,461	)	(876	)	86,563		8
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		(44,316	)	0		0		(85,162	)	0
Pre-petition debt	0		0		0		0		0		0
TOTAL USES OF CASH	0		(44,316	)	0		0		(85,162	)	0
NET CASH INCREASE (DECREASE)	(100,660	)	92,994		(2,461	)	(876	)	1,401		8

CASE NAME: Acceptance Insurance Companies Inc.
CASE NO: 05-80059	SCHEDULE C SCHEDULE OF POST PETITION DEBT

	8/31/06	9/30/06	10/31/06	11/30/06	12/31/06	1/31/07
TRADE ACCOUNTS PAYABLE	82,589	38,273	65,544	103,765	18,603	34,724
PAYROLL AND PAYROLL TAXES	0	0	0	0	0	0
TAXES PAYABLE	0	0	0	0	0	0
TOTAL POST PETITION DEBT	82,589	38,273	65,544	103,765	18,603	34,724