Exhibit 99.1

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

	1/31/07		2/28/07		3/31/07		4/30/07		5/31/07		6/30/07
CURRENT ASSETS:
Cash (Attach Recons. & Bk Stmts.)	824		1,170		1,702		1,005		810		1,144
Investment securities, at market	1,756,026		1,743,283		1,725,902		1,617,563		1,610,856		1,520,322
Prepaid expense & deposits	60,000		60,000		60,000		60,000		60,000		60,000
TOTAL CURRENT ASSETS	1,816,850		1,804,453		1,787,604		1,678,568		1,671,666		1,581,466
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	11,736,045		11,736,045		11,736,045		11,863,974		11,863,974		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	33,236,045		33,236,045		33,236,045		33,363,974		33,363,974		33,363,974
TOTAL ASSETS	35,052,895		35,040,498		35,023,649		35,042,542		35,035,640		34,945,440

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

Date Submitted    July 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

	1/31/07		2/28/07		3/31/07		4/30/07		5/31/07		6/30/07
LIABILITIES:
Post-Petition debt (Sched. C)	34,724		37,967		34,821		33,409		73,306		54,960
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	138,191,038		138,194,281		138,191,135		138,189,723		138,229,620		138,211,274
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	1,902,653		1,887,013		1,873,310		1,893,615		1,846,816		1,774,962
TOTAL SHAREHOLDERS EQUITY	(103,138,143	)	(103,153,783	)	(103,167,486	)	(103,147,181	)	(103,193,980	)	(103,265,834	)
TOTAL LIABILITIES AND SHAREHOLDER EQUITY	35,052,895		35,040,498		35,023,649		35,042,542		35,035,640		34,945,440

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

	1/31/07		2/28/07		3/31/07		4/30/07		5/31/07		6/30/07
REVENUE:
Net investment income	8,408		6,966		7,354		7,290		6,995		6,350
Net realized gain	0		0		0		0		0		0
Other	0		0		0		0		0		631
OPERATING EXPENSES:
Salaries and benefits	(7,222	)	(7,222	)	(7,222	)	(7,221	)	(7,022	)	(6,949	)
Board fees and expenses	0		0		0		0		0		(85	)
Legal fees and expenses	(68,191	)	(11,142	)	(11,882	)	(104,708	)	(44,805	)	(63,486	)
Accounting fees and expenses	0		0		0		0		0		(6,326	)
Insurance	0		0		0		0		0		0
Franchise taxes	0		0		0		0		0		0
Filing fees and expenses	(327	)	(4,173	)	(1,947	)	(2,979	)	(1,963	)	(1,953	)
Miscellaneous	(5	)	(69	)	(5	)	(5	)	(5	)	(36	)
NET OPERATING INCOME / LOSS	(67,337	)	(15,640	)	(13,702	)	(107,623	)	(46,800	)	(71,854	)
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	(41,826	)	0		0		1,250		0		0
Equity in unrealized losses of securities of AIC	86,806		0		0		126,679		0		0
TOTAL OTHER INCOME (EXPENSE)	44,980		0		0		127,929		0		0
NET INCOME (LOSS)	(22,357	)	(15,640	)	(13,702	)	20,306		(46,800	)	(71,854	)

	1/31/07		2/28/07		3/31/07		4/30/07		5/31/07		6/30/07
CASH DIFFERENCE:
Current ending cash balance	824		1,170		1,702		1,005		810		1,144
Less ending prior month balance	(816	)	(824	)	(1,170	)	(1,702	)	(1,005	)	(810	)
NET CASH INCREASE (DECREASE)	8		346		532		(697	)	(195	)	334
SOURCES OF CASH:
Net income (loss)	(22,357	)	(15,640	)	(13,702	)	20,306		(46,800	)	(71,854	)
Equity in earnings and unrealized losses of AIC	(44,980	)	0		0		(127,929	)	0		0
Decrease in:
Receivables	0		0		0		0		0		0
Marketable securities	51,224		12,744		17,381		108,340		6,707		90,534
Increase in:
Post- petition debt	16,121		3,242		0		0		39,898
Pre-petition debt	0		0		0		0		0		0
TOTAL SOURCES OF CASH	8		346		3,679		717		(195	)	18,680
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		(3,147	)	(1,414	)	0		(18,346	)
Pre-petition debt	0		0		0		0		0		0
TOTAL USES OF CASH	0		0		(3,147	)	(1,414	)	0		(18,346	)
NET CASH INCREASE (DECREASE)	8		346		532		(697	)	(195	)	334

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

	1/31/07	2/28/07	3/31/07	4/30/07	5/31/07	6/30/07
TRADE ACCOUNTS PAYABLE	34,724	37,967	34,821	33,409	73,306	54,960
PAYROLL AND PAYROLL TAXES	0	0	0	0	0	0
TAXES PAYABLE	0	0	0	0	0	0
TOTAL POST PETITION DEBT	34,724	37,967	34,821	33,409	73,306	54,960