Acceptance Insurance Companies (AICIQ) 8-K Other Events

Exhibit 99.1

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-1A

COMPARATIVE BALANCE SHEET

ASSETS

	7/31/07		8/31/07		9/30/07		10/31/07		11/30/07		12/31/07
CURRENT ASSETS:
Cash (Attach Recons. & Bk Stmts.)	923		(1,574	)	1,045		174		1,042		(18,092	)
Investment securities, at market	1,497,261		1,398,559		1,338,405		1,306,525		1,299,985		1,254,963
Prepaid expense & deposits	60,000		60,000		60,000		60,000		60,000		60,000
TOTAL CURRENT ASSETS	1,558,184		1,456,985		1,399,450		1,366,699		1,361,027		1,296,871
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		11,945,142		11,945,142		13,439,301		13,439,301		13,439,301
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		33,445,142		33,445,142		34,939,301		34,939,301		34,939,301
TOTAL ASSETS	35,003,326		34,902,127		34,844,592		36,306,000		36,300,328		36,236,172

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

Date Submitted January 8, 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

	7/31/07		8/31/07		9/30/07		10/31/07		11/30/07		12/31/07
LIABILITIES:
Post-Petition debt (Sched. C)	120,179		53,644		49,938		60,592		67,821		31,629
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	138,276,493		138,209,958		138,206,252		138,216,906		138,224,135		138,187,943
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	1,767,629		1,732,965		1,679,136		3,129,890		3,116,989		3,089,025
TOTAL SHAREHOLDERS EQUITY	(103,273,167	)	(103,307,831	)	(103,361,660	)	(101,910,906	)	(101,923,807	)	(101,951,771	)
TOTAL LIABILITIES AND SHAREHOLDER EQUITY	35,003,326		34,902,127		34,844,592		36,306,000		36,300,328		36,236,172

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

	7/31/07		8/31/07		9/30/07		10/31/07		11/30/07		12/31/07
REVENUE:
Net investment income	6,769		6,114		5,318		5,747		5,096		4,447
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	)	(6,949	)	(6,949	)	(6,745	)
Board fees and expenses	0		0		0		0		0		0
Financial advisor fees and expenses	(75,000	)	0		0		0		0		(6,955	)
Legal fees and expenses	(13,315	)	(28,913	)	(49,745	)	(34,394	)	(9,366	)	(17,701	)
Accounting fees and expenses	0		0		0		(5,174	)	0		0
Insurance	0		0		0		0		0		0
Franchise taxes	0		0		0		0		0		0
Filing fees and expenses	0		(4,010	)	(2,447	)	(2,630	)	(1,668	)	(1,006	)
Miscellaneous	(5	)	(906	)	(5	)	(5	)	(14	)	(5	)
NET OPERATING INCOME / LOSS	(88,500	)	(34,664	)	(53,828	)	(43,405	)	(12,901	)	(27,965	)
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	165,848		0		0		1,255,712		0		0
Equity in unrealized losses of securities of AIC	(84,680	)	0		0		238,447		0		0
TOTAL OTHER INCOME (EXPENSE)	81,168		0		0		1,494,159		0		0
NET INCOME (LOSS)	(7,332	)	(34,664	)	(53,828	)	1,450,754		(12,901	)	(27,965	)

CASE NAME: Acceptance Insurance Companies Inc.
CASE NO: 05-80059	Form OPR-3
	SOURCES AND USE OF CASH

	7/31/07		8/31/07		9/30/07		10/31/07		11/30/07		12/31/07
CASH DIFFERENCE:
Current ending cash balance	923		(1,574	)	1,045		174		1,042		(18,092	)
Less ending prior month balance	(1,144	)	(923	)	1,574		(1,045	)	(174	)	(1,042	)
NET CASH INCREASE (DECREASE)	(221	)	(2,497	)	2,619		(871	)	868		(19,134	)
SOURCES OF CASH:
Net income (loss)	(7,332	)	(34,664	)	(53,828	)	1,450,754		(12,901	)	(27,965	)
Equity in earnings and unrealized losses of AIC	(81,168	)	0		0		(1,494,159	)	0		0
Decrease in:
Receivables	0		0		0		0		0		0
Marketable securities	23,061		98,702		60,154		31,880		6,540		45,023
Increase in:
Post- petition debt	65,218		0		0		10,654		7,229		0
Pre-petition debt	0		0		0		0		0		0
TOTAL SOURCES OF CASH	(221	)	64,038		6,326		(871	)	868		17,058
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		(66,535	)	(3,707	)	0		0		(36,192	)
Pre-petition debt	0		0		0		0		0		0
TOTAL USES OF CASH	0		(66,535	)	(3,707	)	0		0		(36,192	)
NET CASH INCREASE (DECREASE)	(221	)	(2,497	)	2,619		(871	)	868		(19,134	)

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

	7/31/07	8/31/07	9/30/07	10/31/07	11/30/07	12/31/07
TRADE ACCOUNTS PAYABLE	120,179	53,644	49,938	60,592	67,821	31,629
PAYROLL AND PAYROLL TAXES	0	0	0	0	0	0
TAXES PAYABLE	0	0	0	0	0	0
TOTAL POST PETITION DEBT	120,179	53,644	49,938	60,592	67,821	31,629