Exhibit 99.1

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-1A

COMPARATIVE BALANCE SHEET

ASSETS

	1/31/08		2/29/08		3/31/08		4/30/08		5/31/08		6/30/08
CURRENT ASSETS:
Cash (Attach Recons. & Bk Stmts.)	(22,338	)	1,840		3,137		443		327		(15,377	)
Investment securities, at market	1,220,319		1,187,641		1,102,929		1,086,559		1,033,077		1,015,497
Prepaid expense & deposits	60,000		60,000		60,000		60,000		60,000		60,000
TOTAL CURRENT ASSETS	1,257,981		1,249,481		1,166,066		1,147,002		1,093,404		1,060,120
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	14,096,550		14,096,550		14,096,550		0		0		0
Contingent claims	21,500,000		21,500,000		21,500,000		21,500,000		21,500,000		21,500,000
TOTAL OTHER ASSETS	35,596,550		35,596,550		35,596,550		21,500,000		21,500,000		21,500,000
TOTAL ASSETS	36,854,531		36,846,031		36,762,616		22,647,002		22,593,404		22,560,120

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

Date Submitted July 7, 2008 Signed /s/ Gary N Thompson Printed Name of Signatory Gary N Thompson

	1/31/08		2/29/08		3/31/08		4/30/08		5/31/08		6/30/08
LIABILITIES:
Post-Petition debt (Sched. C)	25,649		28,066		6,988		31,738		26,870		19,294
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	138,181,963		138,184,380		138,163,302		138,188,052		138,183,184		138,175,608
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	3,713,364		3,702,447		3,640,110		(10,500,254	)	(10,548,984	)	(10,574,692	)
TOTAL SHAREHOLDERS EQUITY	(101,327,432	)	(101,338,349	)	(101,400,686	)	(115,541,050	)	(115,589,780	)	(115,615,488	)
TOTAL LIABILITIES AND SHAREHOLDER EQUITY	36,854,531		36,846,031		36,762,616		22,647,002		22,593,404		22,560,120

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059 Form OPR-2

STATEMENT OF INCOME

	1/31/08		2/29/08		3/31/08		4/30/08		5/31/08		6/30/08
REVENUE:
Net investment income	3,941		2,681		2,539		1,881		1,723		1,693
Net realized gain	0		0		0		0		0		0
Other	0		0		0		0		0		0
OPERATING EXPENSES:
Salaries and benefits	(7,583	)	(7,582	)	(7,583	)	(7,582	)	(7,368	)	(7,297	)
Board fees and expenses	0		0		0		0		0		0
Financial advisor fees and expenses	0		0		0		(481	)	0		0
Legal fees and expenses	(26,985	)	(3,995	)	(5,155	)	(19,661	)	(40,640	)	(19,379	)
Accounting fees and expenses	0		0		0		0		0		0
Actuarial services	0		0		0		(12,260	)	0		0
Insurance	0		0		(50,000	)	0		0		0
Franchise taxes	0		0		0		0		0		0
Filing fees and expenses	(2,247	)	(2,016	)	(2,084	)	(5,527	)	(1,918	)	(660	)
Miscellaneous	(37	)	(5	)	(54	)	(183	)	(527	)	(65	)
NET OPERATING INCOME / LOSS	(32,911	)	(10,917	)	(62,337	)	(43,813	)	(48,730	)	(25,708	)
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	476,849		0		0		(14,096,550	)	0		0
Equity in unrealized losses of securities of AIC	180,400		0		0		0		0		0
TOTAL OTHER INCOME (EXPENSE)	657,249		0		0		(14,096,550	)	0		0
NET INCOME (LOSS)	624,338		(10,917	)	(62,337	)	(14,140,363	)	(48,730	)	(25,708	)

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059 Form OPR-3

SOURCES AND USE OF CASH

	1/31/08		2/29/08		3/31/08		4/30/08		5/31/08		6/30/08
CASH DIFFERENCE:
Current ending cash balance	(22,338	)	1,840		3,137		443		327		(15,377	)
Less ending prior month balance	18,092		22,338		(1,840	)	(3,137	)	(443	)	(327	)
NET CASH INCREASE (DECREASE)	(4,246	)	24,178		1,297		(2,694	)	(116	)	(15,704	)
SOURCES OF CASH:
Net income (loss)	624,338		(10,917	)	(62,337	)	(14,140,363	)	(48,730	)	(25,708	)
Equity in earnings and unrealized losses of AIC	(657,249	)	0		0		14,096,550		0		0
Decrease in:
Receivables	0		0		0		0		0		0
Marketable securities	34,645		32,678		84,712		16,369		53,482		17,580
Increase in:
Post- petition debt	0		2,417		0		24,750		0		0
Pre-petition debt	0		0		0		0		0		0
TOTAL SOURCES OF CASH	1,734		24,178		22,375		(2,694	)	4,752		(8,128	)
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	(5,980	)	0		(21,078	)	0		(4,868	)	(7,576	)
Pre-petition debt	0		0		0		0		0		0
TOTAL USES OF CASH	(5,980	)	0		(21,078	)	0		(4,868	)	(7,576	)
NET CASH INCREASE (DECREASE)	(4,246	)	24,178		1,297		(2,694	)	(116	)	(15,704	)

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059 SCHEDULE C

SCHEDULE OF POST PETITION DEBT

	1/31/08	2/29/08	3/31/08	4/30/08	5/31/08	6/30/08
TRADE ACCOUNTS PAYABLE	25,649	28,066	6,988	31,738	26,870	19,294
PAYROLL AND PAYROLL TAXES	0	0	0	0	0	0
TAXES PAYABLE	0	0	0	0	0	0
TOTAL POST PETITION DEBT	25,649	28,066	6,988	31,738	26,870	19,294