Exhibit 99.1

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059 Form OPR-1A

	10/31/06		11/30/06		12/31/06		1/31/07		2/28/07		3/31/07
CURRENT ASSETS:
Cash (Attach Recons. & Bk Stmts.)	291		(585	)	816		824		1,170		1,702
Investment securities, at market	1,932,805		1,921,375		1,807,249		1,756,026		1,743,283		1,725,902
Prepaid expense & deposits	60,000		60,000		60,000		60,000		60,000		60,000
TOTAL CURRENT ASSETS	1,993,096		1,980,790		1,868,065		1,816,850		1,804,453		1,787,604
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	11,691,065		11,691,065		11,691,065		11,736,045		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	33,191,065		33,191,065		33,191,065		33,236,045		33,236,045		33,236,045
TOTAL ASSETS	35,184,161		35,171,855		35,059,130		35,052,895		35,040,498		35,023,649

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

Date Submitted April 9, 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

	10/31/06		11/30/06		12/31/06		1/31/07		2/28/07		3/31/07
LIABILITIES:
Post-Petition debt (Sched. C)	65,544		103,765		18,603		34,724		37,967		34,821
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	138,221,858		138,260,079		138,174,917		138,191,038		138,194,281		138,191,135
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	2,003,099		1,952,572		1,925,009		1,902,653		1,887,013		1,873,310
TOTAL SHAREHOLDERS EQUITY	(103,037,697	)	(103,088,224	)	(103,115,787	)	(103,138,143	)	(103,153,783	)	(103,167,486	)
TOTAL LIABILITIES AND SHAREHOLDER EQUITY	35,184,161		35,171,855		35,059,130		35,052,895		35,040,498		35,023,649

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059 Form OPR-2

STATEMENT OF INCOME

	10/31/06		11/30/06		12/31/06		1/31/07		2/28/07		3/31/07
REVENUE:
Net investment income	8,897		8,211		7,667		8,408		6,966		7,354
Net realized gain	0		0		0		0		0		0
Other	0		0		0		0		0		0
OPERATING EXPENSES:
Salaries and benefits	(6,498	)	(6,498	)	(6,498	)	(7,222	)	(7,222	)	(7,222	)
Board fees and expenses	0		0		0		0		0		0
Legal fees and expenses	(49,827	)	(50,240	)	(26,690	)	(68,191	)	(11,142	)	(11,882	)
Accounting fees and expenses	(11,978	)	0		0		0		0		0
Insurance	0		0		0		0		0		0
Franchise taxes	0		0		0		0		0		0
Filing fees and expenses	(5,974	)	(1,994	)	(1,957	)	(327	)	(4,173	)	(1,947	)
Miscellaneous	(24	)	(5	)	(86	)	(5	)	(69	)	(5	)
NET OPERATING INCOME / LOSS	(65,404	)	(50,526	)	(27,564	)	(67,337	)	(15,640	)	(13,702	)
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	2,388,299		0		0		(41,826	)	0		0
Equity in unrealized losses of securities of AIC	471,783		0		0		86,806		0		0
TOTAL OTHER INCOME (EXPENSE)	2,860,082		0		0		44,980		0		0
NET INCOME (LOSS)	2,794,678		(50,526	)	(27,564	)	(22,357	)	(15,640	)	(13,702	)

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059 Form OPR-3

SOURCES AND USE OF CASH

	10/31/06		11/30/06		12/31/06		1/31/07		2/28/07		3/31/07
CASH DIFFERENCE:
Current ending cash balance	291		(585	)	816		824		1,170		1,702
Less ending prior month balance	(2,752	)	(291	)	585		(816	)	(824	)	(1,170	)
NET CASH INCREASE (DECREASE)	(2,461	)	(876	)	1,401		8		346		532
SOURCES OF CASH:
Net income (loss)	2,794,678		(50,526	)	(27,564	)	(22,357	)	(15,640	)	(13,702	)
Equity in earnings and unrealized losses of AIC	(2,860,082	)	0		0		(44,980	)	0		0
Decrease in:
Receivables	0		0		0		0		0		0
Marketable securities	35,672		11,430		114,127		51,224		12,744		17,381
Increase in:
Post- petition debt	27,271		38,220		0		16,121		3,242		0
Pre-petition debt	0		0		0		0		0		0
TOTAL SOURCES OF CASH	(2,461	)	(876	)	86,563		8		346		3,679
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		0		(85,162	)	0		0		(3,147	)
Pre-petition debt	0		0		0		0		0		0
TOTAL USES OF CASH	0		0		(85,162	)	0		0		(3,147	)
NET CASH INCREASE (DECREASE)	(2,461	)	(876	)	1,401		8		346		532

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059 SCHEDULE C

SCHEDULE OF POST PETITION

	10/31/06	11/30/06	12/31/06	1/31/07	2/28/07	3/31/07
TRADE ACCOUNTS PAYABLE	65,544	103,765	18,603	34,724	37,967	34,821
PAYROLL AND PAYROLL TAXES	0	0	0	0	0	0
TAXES PAYABLE	0	0	0	0	0	0
TOTAL POST PETITION DEBT	65,544	103,765	18,603	34,724	37,967	34,821