SEC Form 3

FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person* INSURANCE PARTNERS OFFSHORE LP (Last) (First) (Middle) CEDAR HOUSE 41 CEDAR AVE (Street) HAMILTON HM12 D0 (City) (State) (Zip)	2. Date of Event Requiring Statement (Month/Day/Year) 11/09/2006	3. Issuer Name and Ticker or Trading Symbol ACA Capital Holdings Inc [ ACA ]
		4. Relationship of Reporting Person(s) to Issuer (Check all applicable) Director 10% Owner Officer (give title below) X Other (specify below) See Remarks	5. If Amendment, Date of Original Filed (Month/Day/Year)
			6. Individual or Joint/Group Filing (Check Applicable Line) Form filed by One Reporting Person X Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Stock	513,973.2	I(1)(2)	See Footnotes(1)(2)

Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
	Date Exercisable	Expiration Date	Title	Amount or Number of Shares

1. Name and Address of Reporting Person* INSURANCE PARTNERS OFFSHORE LP (Last) (First) (Middle) CEDAR HOUSE 41 CEDAR AVE (Street) HAMILTON HM12 D0 (City) (State) (Zip) Relationship of Reporting Person(s) to Issuer Director 10% Owner Officer (give title below) X Other (specify below) See Remarks

1. Name and Address of Reporting Person* INSURANCE GENPAR LP / BERMUDA (Last) (First) (Middle) CEDAR HOUSE 41 CEDAR AVE (Street) HAMILTON HM12 D0 (City) (State) (Zip) Relationship of Reporting Person(s) to Issuer Director 10% Owner Officer (give title below) X Other (specify below) See Remarks

1. Name and Address of Reporting Person* INSURANCE GENPAR MGP LP / BERMUDA (Last) (First) (Middle) CEDAR HOUSE 41 CEDAR AVE (Street) HAMILTON HM12 D0 (City) (State) (Zip) Relationship of Reporting Person(s) to Issuer Director 10% Owner Officer (give title below) X Other (specify below) See Remarks

1. Name and Address of Reporting Person* INSURANCE GENPAR MGP LTD /BERMUDA (Last) (First) (Middle) CEDAR HOUSE 41 CEDAR AVE (Street) HAMILTON HM12 D0 (City) (State) (Zip) Relationship of Reporting Person(s) to Issuer Director 10% Owner Officer (give title below) X Other (specify below) See Remarks

Explanation of Responses:

1. Insurance GenPar (Bermuda), L.P. is the general partner of Insurance Partners Offshore (Bermuda), L.P. Insurance GenPar (Bermuda) MGP, L.P. is the general partner of Insurance GenPar (Bermuda), L.P. Insurance GenPar (Bermuda) MGP, Ltd. is the general partner of Insurance GenPar (Bermuda) MGP, L.P. Pursuant to Rule 16a-1(a)(2)(ii)(B) under the Act, Insurance GenPar (Bermuda), L.P., Insurance GenPar (Bermuda) MGP, L.P. and Insurance GenPar (Bermuda) MGP, Ltd. may be deemed to be the beneficial owner of the securities reported herein to the extent of their pecuniary interest therein.

2. Includes 11,463.6 shares owned by IP/MCLP, L.L.C. Insurance Partners Offshore (Bermuda), L.P. is a managing member of IP/MCLP, L.L.C.

Remarks:

Under the Stockholders Agreement, dated as of September 30, 2004, among Insurance Partners, L.P., Insurance Partners Offshore (Bermuda), L.P., IP/MCLP, L.L.C., the company and other stockholders named therein, as amended, Insurance Partners, L.P. has agreed to vote its shares of common stock in accordance with the terms of such agreement. As a result, the reporting persons may be deemed to be members of a group pursuant to Rule 13d-5 promulgated under the Securities Exchange Act of 1934 (the "Act"). This filing shall not be deemed an admission that any reporting person is, for purposes of Section 13(d) or Section 16 of the Act or otherwise, a member of a group or the beneficial owner of any securities in excess of the amount in which it has a pecuniary interest. (3) Insurance Partners Offshore (Bermuda), L.P. By: Insurance GenPar (Bermuda), L.P., its general partner By: Insurance GenPar (Bermuda), MGP, L.P., its general partner By: Insurance GenPar (Bermuda), MGP, Ltd., its general partner By: Bradley Cooper, Senior Vice President EXHIBIT LIST Exhibit 99 - Joint Filer Information

	/s/ Bradley Cooper (3)	11/09/2006
	** Signature of Reporting Person	Date
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