Exhibit 99.1

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-1A

	11/30/06		12/31/06		1/31/07		2/28/07		3/31/07		4/30/07
CURRENT ASSETS:
Cash (Attach Recons. & Bk Stmts.)	(585	)	816		824		1,170		1,702		1,005
Investment securities, at market	1,921,375		1,807,249		1,756,026		1,743,283		1,725,902		1,617,563
Prepaid expense & deposits	60,000		60,000		60,000		60,000		60,000		60,000
TOTAL CURRENT ASSETS	1,980,790		1,868,065		1,816,850		1,804,453		1,787,604		1,678,568
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 (see attachment A)	11,691,065		11,691,065		11,736,045		11,736,045		11,736,045		11,863,974
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		33,236,045		33,236,045		33,236,045		33,363,974
TOTAL ASSETS	35,171,855		35,059,130		35,052,895		35,040,498		35,023,649		35,042,542

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

Date Submitted    May 14, 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

	11/30/06		12/31/06		1/31/07		2/28/07		3/31/07		4/30/07
LIABILITIES:
Post-Petition debt (Sched. C)	103,765		18,603		34,724		37,967		34,821		33,409
Pre-Petition Debt:
Litigation claims (see attachment A)	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	138,260,079		138,174,917		138,191,038		138,194,281		138,191,135		138,189,723
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	1,952,572		1,925,009		1,902,653		1,887,013		1,873,310		1,893,615
TOTAL SHAREHOLDERS EQUITY	(103,088,224	)	(103,115,787	)	(103,138,143	)	(103,153,783	)	(103,167,486	)	(103,147,181	)
TOTAL LIABILITIES AND SHAREHOLDER EQUITY	35,171,855		35,059,130		35,052,895		35,040,498		35,023,649		35,042,542

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-2

STATEMENT OF INCOME

	11/30/06		12/31/06		1/31/07		2/28/07		3/31/07		4/30/07
REVENUE:
Net investment income	8,211		7,667		8,408		6,966		7,354		7,290
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	)	(7,222	)	(7,222	)	(7,222	)	(7,221	)
Board fees and expenses	0		0		0		0		0		0
Legal fees and expenses	(50,240	)	(26,690	)	(68,191	)	(11,142	)	(11,882	)	(104,708	)
Accounting fees and expenses	0		0		0		0		0		0
Insurance	0		0		0		0		0		0
Franchise taxes	0		0		0		0		0		0
Filing fees and expenses	(1,994	)	(1,957	)	(327	)	(4,173	)	(1,947	)	(2,979	)
Miscellaneous	(5	)	(86	)	(5	)	(69	)	(5	)	(5	)
NET OPERATING INCOME / LOSS	(50,526	)	(27,564	)	(67,337	)	(15,640	)	(13,702	)	(107,623	)
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		(41,826	)	0		0		1,250
Equity in unrealized losses of securities of AIC	0		0		86,806		0		0		126,679
TOTAL OTHER INCOME (EXPENSE)	0		0		44,980		0		0		127,929
NET INCOME (LOSS)	(50,526	)	(27,564	)	(22,357	)	(15,640	)	(13,702	)	20,306

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-3

SOURCES AND USE OF CASH

	11/30/06		12/31/06		1/31/07		2/28/07		3/31/07		4/30/07
CASH DIFFERENCE:
Current ending cash balance	(585	)	816		824		1,170		1,702		1,005
Less ending prior month balance	(291	)	585		(816	)	(824	)	(1,170	)	(1,702	)
NET CASH INCREASE (DECREASE)	(876	)	1,401		8		346		532		(697	)
SOURCES OF CASH:
Net income (loss)	(50,526	)	(27,564	)	(22,357	)	(15,640	)	(13,702	)	20,306
Equity in earnings and unrealized losses of AIC	0		0		(44,980	)	0		0		(127,929	)
Decrease in:
Receivables	0		0		0		0		0		0
Marketable securities	11,430		114,127		51,224		12,744		17,381		108,340
Increase in:
Post- petition debt	38,220		0		16,121		3,242		0		0
Pre-petition debt	0		0		0		0		0		0
TOTAL SOURCES OF CASH	(876	)	86,563		8		346		3,679		717
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		(85,162	)	0		0		(3,147	)	(1,414	)
Pre-petition debt	0		0		0		0		0		0
TOTAL USES OF CASH	0		(85,162	)	0		0		(3,147	)	(1,414	)
NET CASH INCREASE (DECREASE)	(876	)	1,401		8		346		532		(697	)

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

SCHEDULE C

SCHEDULE OF POST PETITION

	11/30/06	12/31/06	1/31/07	2/28/07	3/31/07	4/30/07
TRADE ACCOUNTS PAYABLE	103,765	18,603	34,724	37,967	34,821	33,409
PAYROLL AND PAYROLL TAXES	0	0	0	0	0	0
TAXES PAYABLE	0	0	0	0	0	0
TOTAL POST PETITION DEBT	103,765	18,603	34,724	37,967	34,821	33,409

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

ATTACHMENT A

Granite Reinsurance Company, Ltd. (“Granite Re”), a Barbados reinsurer, filed a proof of claim against AICI, in its Chapter 11 proceeding claiming AICI owed it $10,875,363, comprised of $9,000,000 of premium, plus interest, pursuant to an MPCI Stop Loss Reinsurance Contract (“Contract”) issued by Granite Re. Their $9,000,000 claim is included in the liability for litigation claims shown above. Subsequently, Granite Re filed a complaint in the United States District Court for the District of Nebraska against AICI’s wholly owned subsidiary, Acceptance Insurance Company (“AIC”), alleging AIC also was liable to Granite Re on the same Contract. By consent, the district court transferred Granite Re’s proceeding against AIC to the United States Bankruptcy Court for the District of Nebraska (the “Bankruptcy Court”), which consolidated the proceeding with proceedings in AICI’s Chapter 11 proceeding as Adversary Proceeding No. A06-8015. AICI thereafter initiated a separate adversary proceeding against Granite Re asserting a claim for unjust enrichment. (Adv. Pro. No. A06-8115). AICI asserted the Contract lacked consideration, and that Granite Re had been unjustly enriched by the $6,000,000 AICI paid to Granite Re for reinsurance Granite Re did not in fact provide. All issues associated with Granite Re’s proof of claim asserted against AICI, Granite Re’s adversary complaint against AIC, and AICI’s adversary complaint against Granite Re were consolidated for discovery and trial. On May 9, 2007 the Bankruptcy Court ruled that: (i) Granite Re has no right to premiums claimed and AICI and AIC have no right to a refund of premiums paid; (ii) the adversary proceedings of Granite Re and AICI will be dismissed and (iii) the Granite Re claim filed in the bankruptcy case will be denied. This ruling is subject to stay or appeal.