Exhibit 99.1

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-1A

COMPARATIVE BALANCE SHEET

ASSETS

	9/30/07		10/31/07		11/30/07		12/31/07		1/31/08		2/29/08
CURRENT ASSETS:
Cash (Attach Recons. & Bk Stmts.)	1,045		174		1,042		(18,092	)	(22,338	)	1,840
Investment securities, at market	1,338,405		1,306,525		1,299,985		1,254,963		1,220,319		1,187,641
Prepaid expense & deposits	60,000		60,000		60,000		60,000		60,000		60,000
TOTAL CURRENT ASSETS	1,399,450		1,366,699		1,361,027		1,296,871		1,257,981		1,249,481
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	11,945,142		13,439,301		13,439,301		13,439,301		14,096,550		14,096,550
Contingent claims	21,500,000		21,500,000		21,500,000		21,500,000		21,500,000		21,500,000
TOTAL OTHER ASSETS	33,445,142		34,939,301		34,939,301		34,939,301		35,596,550		35,596,550
TOTAL ASSETS	34,844,592		36,306,000		36,300,328		36,236,172		36,854,531		36,846,031

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

Date Submitted March 11, 2008 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

	9/30/07		10/31/07		11/30/07		12/31/07		1/31/08		1/31/08
LIABILITIES:
Post-Petition debt (Sched. C)	49,938		60,592		67,821		31,629		25,649		28,066
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	138,206,252		138,216,906		138,224,135		138,187,943		138,181,963		138,184,380
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	1,679,136		3,129,890		3,116,989		3,089,025		3,713,364		3,702,447
TOTAL SHAREHOLDERS EQUITY	(103,361,660	)	(101,910,906	)	(101,923,807	)	(101,951,771	)	(101,327,432	)	(101,338,349	)
TOTAL LIABILITIES AND SHAREHOLDER EQUITY	34,844,592		36,306,000		36,300,328		36,236,172		36,854,531		36,846,031

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059 Form OPR-2

STATEMENT OF INCOME

	9/30/07		10/31/07		11/30/07		12/31/07		1/31/08		2/29/08
REVENUE:
Net investment income	5,318		5,747		5,096		4,447		3,941		2,681
Net realized gain	0		0		0		0		0		0
Other	0		0		0		0		0		0
OPERATING EXPENSES:
Salaries and benefits	(6,949	)	(6,949	)	(6,949	)	(6,745	)	(7,583	)	(7,582	)
Board fees and expenses	0		0		0		0		0		0
Financial advisor fees and expenses	0		0		0		(6,955	)	0		0
Legal fees and expenses	(49,745	)	(34,394	)	(9,366	)	(17,701	)	(26,985	)	(3,995	)
Accounting fees and expenses	0		(5,174	)	0		0		0		0
Insurance	0		0		0		0		0		0
Franchise taxes	0		0		0		0		0		0
Filing fees and expenses	(2,447	)	(2,630	)	(1,668	)	(1,006	)	(2,247	)	(2,016	)
Miscellaneous	(5	)	(5	)	(14	)	(5	)	(37	)	(5	)
NET OPERATING INCOME / LOSS	(53,828	)	(43,405	)	(12,901	)	(27,965	)	(32,911	)	(10,917	)
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		1,255,712		0		0		476,849		0
Equity in unrealized losses of securities of AIC	0		238,447		0		0		180,400		0
TOTAL OTHER INCOME (EXPENSE)	0		1,494,159		0		0		657,249		0
NET INCOME (LOSS)	(53,828	)	1,450,754		(12,901	)	(27,965	)	624,338		(10,917	)

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059 Form OPR-3

SOURCES AND USE OF CASH

	9/30/07		10/31/07		11/30/07		12/31/07		1/31/08		2/29/08
CASH DIFFERENCE:
Current ending cash balance	1,045		174		1,042		(18,092	)	(22,338	)	1,840
Less ending prior month balance	1,574		(1,045	)	(174	)	(1,042	)	18,092		22,338
NET CASH INCREASE (DECREASE)	2,619		(871	)	868		(19,134	)	(4,246	)	24,178
SOURCES OF CASH:
Net income (loss)	(53,828	)	1,450,754		(12,901	)	(27,965	)	624,338		(10,917	)
Equity in earnings and unrealized losses of AIC	0		(1,494,159	)	0		0		(657,249	)	0
Decrease in:
Receivables	0		0		0		0		0		0
Marketable securities	60,154		31,880		6,540		45,023		34,645		32,678
Increase in:
Post- petition debt	0		10,654		7,229		0		0		2,417
Pre-petition debt	0		0		0		0		0		0
TOTAL SOURCES OF CASH	6,326		(871	)	868		17,058		1,734		24,178
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	(3,707	)	0		0		(36,192	)	(5,980	)	0
Pre-petition debt	0		0		0		0		0		0
TOTAL USES OF CASH	(3,707	)	0		0		(36,192	)	(5,980	)	0
NET CASH INCREASE (DECREASE)	2,619		(871	)	868		(19,134	)	(4,246	)	24,178

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

SCHEDULE C

SCHEDULE OF POST PETITION DEBT

	9/30/07	10/31/07	11/30/07	12/31/07	1/31/08	2/29/08
TRADE ACCOUNTS PAYABLE	49,938	60,592	67,821	31,629	25,649	28,066
PAYROLL AND PAYROLL TAXES	0	0	0	0	0	0
TAXES PAYABLE	0	0	0	0	0	0
TOTAL POST PETITION DEBT	49,938	60,592	67,821	31,629	25,649	28,066