8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

April 7, 2008

Acceptance Insurance Companies Inc.

(Exact name of registrant as specified in its charter)

Delaware	1-7461	31-0742926
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification Number)

300 West Broadway Suite 1600 Council Bluffs, Iowa	51503
(Address of principal executive offices)	(Zip Code)

(712) 329-3600

(Registrant’s telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other Events

On January 7, 2005, Acceptance Insurance Companies Inc. (the “Company” or “AICI”) filed a voluntary petition (“Bankruptcy Case”) under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Nebraska (the “Bankruptcy Court”). Additionally, two Company subsidiaries, Acceptance Insurance Services, Inc. and American Agrisurance, Inc., filed voluntary petitions under Chapter 7 of the Bankruptcy Code on January 7, 2005 in the same venue. The Company will remain in possession of its assets and properties, and continue to operate its businesses and manage its properties as debtors-in-possession pursuant to Sections 1107(a) and 1108 of the Bankruptcy Code.

On January 26, 2005, the Company submitted to the Securities and Exchange Commissioner (the “SEC”) a statement of intention to file monthly operating reports (the “Monthly Reports”), which it is required to file with the U.S. Bankruptcy Trustee and the Bankruptcy Court in connection with the Bankruptcy Case, during the pendency of the Bankruptcy Case in lieu of certain reports it would otherwise file as required by the Securities Exchange Act of 1934, as amended. The Company’s Monthly Report for March 2008 was filed by the Company with the Bankruptcy Court on April 7 2008, and is filed herewith as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits.

(99.1) Monthly Operating Report filed by the Company with the United States Bankruptcy Court for the District of Nebraska on April 7, 2008.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: April 7, 2008	ACCEPTANCE INSURANCE COMPANIES INC.
	By:	/s/ John E. Martin
		John E. Martin, President and Chief Executive Officer

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Monthly Operating Report filed by the Company with the United States Bankruptcy Court for the District of Nebraska on April 7, 2008.

EX-99.1

Exhibit 99.1

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-1A

COMPARATIVE BALANCE SHEET

ASSETS

	10/31/07		11/30/07		12/31/07		1/31/08		2/29/08		3/31/08
CURRENT ASSETS:
Cash (Attach Recons. & Bk Stmts.)	174		1,042		(18,092	)	(22,338	)	1,840		3,137
Investment securities, at market	1,306,525		1,299,985		1,254,963		1,220,319		1,187,641		1,102,929
Prepaid expense & deposits	60,000		60,000		60,000		60,000		60,000		60,000
TOTAL CURRENT ASSETS	1,366,699		1,361,027		1,296,871		1,257,981		1,249,481		1,166,066
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	13,439,301		13,439,301		13,439,301		14,096,550		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	34,939,301		34,939,301		34,939,301		35,596,550		35,596,550		35,596,550
TOTAL ASSETS	36,306,000		36,300,328		36,236,172		36,854,531		36,846,031		36,762,616

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

Date Submitted    April 7, 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

	10/31/07		11/30/07		12/31/07		1/31/08		2/29/08		3/31/08
LIABILITIES:
Post-Petition debt (Sched. C)	60,592		67,821		31,629		25,649		28,066		6,988
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	138,216,906		138,224,135		138,187,943		138,181,963		138,184,380		138,163,302
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	3,129,890		3,116,989		3,089,025		3,713,364		3,702,447		3,640,110
TOTAL SHAREHOLDERS EQUITY	(101,910,906	)	(101,923,807	)	(101,951,771	)	(101,327,432	)	(101,338,349	)	(101,400,686	)
TOTAL LIABILITIES AND SHAREHOLDER EQUITY	36,306,000		36,300,328		36,236,172		36,854,531		36,846,031		36,762,616

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

	10/31/07		11/30/07		12/31/07		1/31/08		2/29/08		3/31/08
REVENUE:
Net investment income	5,747		5,096		4,447		3,941		2,681		2,539
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	)	(6,745	)	(7,583	)	(7,582	)	(7,583	)
Board fees and expenses	0		0		0		0		0		0
Financial advisor fees and expenses	0		0		(6,955	)	0		0		0
Legal fees and expenses	(34,394	)	(9,366	)	(17,701	)	(26,985	)	(3,995	)	(5,155	)
Accounting fees and expenses	(5,174	)	0		0		0		0		0
Insurance	0		0		0		0		0		(50,000	)
Franchise taxes	0		0		0		0		0		0
Filing fees and expenses	(2,630	)	(1,668	)	(1,006	)	(2,247	)	(2,016	)	(2,084	)
Miscellaneous	(5	)	(14	)	(5	)	(37	)	(5	)	(54	)
NET OPERATING INCOME / LOSS	(43,405	)	(12,901	)	(27,965	)	(32,911	)	(10,917	)	(62,337	)
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	1,255,712		0		0		476,849		0		0
Equity in unrealized losses of securities of AIC	238,447		0		0		180,400		0		0
TOTAL OTHER INCOME (EXPENSE)	1,494,159		0		0		657,249		0		0
NET INCOME (LOSS)	1,450,754		(12,901	)	(27,965	)	624,338		(10,917	)	(62,337	)

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

	10/31/07		11/30/07		12/31/07		1/31/08		2/29/08		3/31/08
CASH DIFFERENCE:
Current ending cash balance	174		1,042		(18,092	)	(22,338	)	1,840		3,137
Less ending prior month balance	(1,045	)	(174	)	(1,042	)	18,092		22,338		(1,840	)
NET CASH INCREASE (DECREASE)	(871	)	868		(19,134	)	(4,246	)	24,178		1,297
SOURCES OF CASH:
Net income (loss)	1,450,754		(12,901	)	(27,965	)	624,338		(10,917	)	(62,337	)
Equity in earnings and unrealized losses of AIC	(1,494,159	)	0		0		(657,249	)	0		0
Decrease in:
Receivables	0		0		0		0		0		0
Marketable securities	31,880		6,540		45,023		34,645		32,678		84,712
Increase in:
Post- petition debt	10,654		7,229		0		0		2,417		0
Pre-petition debt	0		0		0		0		0		0
TOTAL SOURCES OF CASH	(871	)	868		17,058		1,734		24,178		22,375
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		(36,192	)	(5,980	)	0		(21,078	)
Pre-petition debt	0		0		0		0		0		0
TOTAL USES OF CASH	0		0		(36,192	)	(5,980	)	0		(21,078	)
NET CASH INCREASE (DECREASE)	(871	)	868		(19,134	)	(4,246	)	24,178		1,297

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

	10/31/07	11/30/07	12/31/07	1/31/08	2/29/08	3/31/08
TRADE ACCOUNTS PAYABLE	60,592	67,821	31,629	25,649	28,066	6,988
PAYROLL AND PAYROLL TAXES	0	0	0	0	0	0
TAXES PAYABLE	0	0	0	0	0	0
TOTAL POST PETITION DEBT	60,592	67,821	31,629	25,649	28,066	6,988