8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 8, 2007

Acceptance Insurance Companies Inc.

(Exact name of registrant as specified in its charter)

Delaware	1-7461	31-0742926
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification Number)

300 West Broadway Suite 1600 Council Bluffs, Iowa	51503
(Address of principal executive offices)	(Zip Code)

(712) 329-3600

(Registrant’s telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other Events

On January 7, 2005, Acceptance Insurance Companies Inc. (the “Company” or “AICI”) filed a voluntary petition (“Bankruptcy Case”) under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Nebraska (the “Bankruptcy Court”). Additionally, two Company subsidiaries, Acceptance Insurance Services, Inc. and American Agrisurance, Inc., filed voluntary petitions under Chapter 7 of the Bankruptcy Code on January 7, 2005 in the same venue. The Company will remain in possession of its assets and properties, and continue to operate its businesses and manage its properties as debtors-in-possession pursuant to Sections 1107(a) and 1108 of the Bankruptcy Code.

On January 26, 2005, the Company submitted to the Securities and Exchange Commissioner (the “SEC”) a statement of intention to file monthly operating reports (the “Monthly Reports”), which it is required to file with the U.S. Bankruptcy Trustee and the Bankruptcy Court in connection with the Bankruptcy Case, during the pendency of the Bankruptcy Case in lieu of certain reports it would otherwise file as required by the Securities Exchange Act of 1934, as amended. The Company’s Monthly Report for February 2007 was filed by the Company with the Bankruptcy Court on March 8, 2007, and is filed herewith as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits.

(99.1)    Monthly Operating Report filed by the Company with the United States Bankruptcy Court for the District of Nebraska on March 8, 2007.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: March 8, 2007	ACCEPTANCE INSURANCE COMPANIES INC.
	By:	/s/ John E. Martin
		John E. Martin, President and Chief Executive Officer

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Monthly Operating Report filed by the Company with the United States Bankruptcy Court for the District of Nebraska on March 8, 2007.

EX-99.1

Exhibit 99.1

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-1A

	9/30/06		10/31/06		11/30/06		12/31/06		1/31/07		2/28/07
CURRENT ASSETS:
Cash (Attach Recons. & Bk Stmts.)	2,752		291		(585	)	816		824		1,170
Investment securities, at market	1,968,477		1,932,805		1,921,375		1,807,249		1,756,026		1,743,283
Prepaid expense & deposits	60,000		60,000		60,000		60,000		60,000		60,000
TOTAL CURRENT ASSETS	2,031,229		1,993,096		1,980,790		1,868,065		1,816,850		1,804,453
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		11,691,065		11,691,065		11,691,065		11,736,045		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		33,191,065		33,191,065		33,191,065		33,236,045		33,236,045
TOTAL ASSETS	32,362,212		35,184,161		35,171,855		35,059,130		35,052,895		35,040,498

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

Date Submitted    March 8, 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

	9/30/06		10/31/06		11/30/06		12/31/06		1/31/07		2/28/07
LIABILITIES:
Post-Petition debt (Sched. C)	38,273		65,544		103,765		18,603		34,724		37,967
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	138,194,587		138,221,858		138,260,079		138,174,917		138,191,038		138,194,281
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	(791,579	)	2,003,099		1,952,572		1,925,009		1,902,653		1,887,013
TOTAL SHAREHOLDERS EQUITY	(105,832,375	)	(103,037,697	)	(103,088,224	)	(103,115,787	)	(103,138,143	)	(103,153,783	)
TOTAL LIABILITIES AND SHAREHOLDER EQUITY	32,362,212		35,184,161		35,171,855		35,059,130		35,052,895		35,040,498

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-2

STATEMENT OF INCOME

	9/30/06		10/31/06		11/30/06		12/31/06		1/31/07		2/28/07
REVENUE:
Net investment income	8,436		8,897		8,211		7,667		8,408		6,966
Net realized gain	0		0		0		0		0		0
Other	0		0		0		0		0		0
OPERATING EXPENSES:
Salaries and benefits	(6,610	)	(6,498	)	(6,498	)	(6,498	)	(7,222	)	(7,222	)
Board fees and expenses	0		0		0		0		0		0
Legal fees and expenses	(38,990	)	(49,827	)	(50,240	)	(26,690	)	(68,191	)	(11,142	)
Accounting fees and expenses	0		(11,978	)	0		0		0		0
Insurance	0		0		0		0		0		0
Franchise taxes	(13,500	)	0		0		0		0		0
Filing fees and expenses	(2,333	)	(5,974	)	(1,994	)	(1,957	)	(327	)	(4,173	)
Miscellaneous	(62	)	(24	)	(5	)	(86	)	(5	)	(69	)
NET OPERATING INCOME / LOSS	(53,059	)	(65,404	)	(50,526	)	(27,564	)	(67,337	)	(15,640	)
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		2,388,299		0		0		(41,826	)	0
Equity in unrealized losses of securities of AIC	0		471,783		0		0		86,806		0
TOTAL OTHER INCOME (EXPENSE)	0		2,860,082		0		0		44,980		0
NET INCOME (LOSS)	(53,059	)	2,794,678		(50,526	)	(27,564	)	(22,357	)	(15,640	)

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-3

SOURCES AND USE OF CASH

	9/30/06		10/31/06		11/30/06		12/31/06		1/31/07		2/28/07
CASH DIFFERENCE:
Current ending cash balance	2,752		291		(585	)	816		824		1,170
Less ending prior month balance	90,242		(2,752	)	(291	)	585		(816	)	(824	)
NET CASH INCREASE (DECREASE)	92,994		(2,461	)	(876	)	1,401		8		346
SOURCES OF CASH:
Net income (loss)	(53,059	)	2,794,678		(50,526	)	(27,564	)	(22,357	)	(15,640	)
Equity in earnings and unrealized losses of AIC	0		(2,860,082	)	0		0		(44,980	)	0
Decrease in:
Receivables	0		0		0		0		0		0
Marketable securities	190,369		35,672		11,430		114,127		51,224		12,744
Increase in:
Post- petition debt	0		27,271		38,220		0		16,121		3,242
Pre-petition debt	0		0		0		0		0		0
TOTAL SOURCES OF CASH	137,310		(2,461	)	(876	)	86,563		8		346
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	(44,316	)	0		0		(85,162	)	0		0
Pre-petition debt	0		0		0		0		0		0
TOTAL USES OF CASH	(44,316	)	0		0		(85,162	)	0		0
NET CASH INCREASE (DECREASE)	92,994		(2,461	)	(876	)	1,401		8		346

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

SCHEDULE C

SCHEDULE OF POST PETITION DEBT

	9/30/06	10/31/06	11/30/06	12/31/06	1/31/07	2/28/07
TRADE ACCOUNTS PAYABLE	38,273	65,544	103,765	18,603	34,724	37,967
PAYROLL AND PAYROLL TAXES	0	0	0	0	0	0
TAXES PAYABLE	0	0	0	0	0	0
TOTAL POST PETITION DEBT	38,273	65,544	103,765	18,603	34,724	37,967