ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND
TAX DEFERRED SAVINGS PLAN
FINANCIAL STATEMENTS
DECEMBER 31, 1999
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
(X) ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the Year Ended December 31, 1999
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the Transition Period From to
Commission File Number
A. Full title of the Plan and the address of the Plan, if
different from that of the issuer named below:
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
B. Name of the issuer to the securities held pursuant to the
Plan and the address of its principal executive office:
ACCEPTANCE INSURANCE COMPANIES INC.
ONE CENTRAL PARK PLAZA
222 SOUTH 15TH STREET, SUITE 600 N.
OMAHA, NEBRASKA 68102
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX
DEFERRED SAVINGS PLAN
Date June 28, 2000 By /s/ Dawn Wetherell
_____________________ ____________________
Dawn Wetherell
Plan Administrator
<PAGE>
CONTENTS
(a) Financial Statements and Annual Report Schedules
Independent Auditors' Report
Statement of Net Assets Available for Benefits,
December 31, 1999
Statement of Net Assets Available for Benefits,
December 31, 1998
Statement of Changes in Net Assets Available for Benefits
for the Year Ended December 31, 1999
Statement of Changes in Net Assets Available for Benefits
for the Year Ended December 31, 1998
Notes to Financial Statements
(b) Annual Report Schedules
Item 27a - Schedule of Assets Held for Investment
Purposes, December 31, 1999
Item 27a - Schedule of Assets Held for Investment
Purposes Which Were Both Acquired and Disposed
of Within the Plan Year
Item 27d - Schedule of Reportable Transactions for
the Year Ended December 31, 1999
(c) Exhibits
Exhibit 23 - Independent Auditors' Consent
Schedules not filed herewith are omitted because of the absence of the
conditions under which they are required.
<PAGE>
TIGHE, MASSMAN & NELSON, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
13310 "I" Street
Omaha, Nebraska 68137
(402) 330-7099
FAX (402) 330-0809
J. William Tighe, C.P.A. (1930-1989)
Michael L. Massman, C.P.A.
George E. Nelson, C.P.A.
Dean M. Broich, C.P.A.
James A. Reinig, C.P.A.
_______
G. Michael Gillain
INDEPENDENT AUDITORS' REPORT
______________________________
Administrative Committee
Acceptance Insurance Companies Inc.
Employee Stock Ownership and Tax
Deferred Savings Plan
Omaha, Nebraska
We have audited the accompanying statements of net assets available
for benefits of Acceptance Insurance Companies Inc. Employee Stock Ownership
and Tax Deferred Savings Plan (the Plan) as of December 31, 1999 and 1998, and
the related statements of changes in net assets available for benefits for the
years then ended. These financial statements are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements present fairly, in all
material respects, the net assets available for benefits of the Acceptance
Insurance Companies Inc. Employee Stock Ownership and Tax Deferred Savings
Plan as of December 31, 1999 and 1998, and the changes in net assets available
for benefits for the years then ended in conformity with generally accepted
accounting principles.
Our audits were conducted for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental annual report
schedules are presented for the purposes of additional analysis and are not a
required part of the basic financial statements, but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. These schedules are the responsibility of the Plan's management. Such
schedules have been subjected to the auditing procedures applied in the audit
of the basic financial statements, and, in our opinion, are fairly stated in
all material respects in relation to the basic financial statements taken as
a whole.
/s/ Tighe, Massman & Nelson, P.C.
Certified Public Accountants
June 9, 2000
Omaha, Nebraska
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
______________________________________________________________________________________________
Guaranteed Capital Acceptance Vanguard
Interest Market Balanced Income Appreciation Common Index
Contracts Funds Portfolio Portfolio Portfolio Stock Fund 500
___________ ________ ___________ __________ __________ __________ ___________
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments at Fair Value:
Acceptance Insurance Companies
Inc. Common Stock $ - $ - $ - $ - $ - $ 447,367 $ -
Money Market Fund 582 449,537 110,663 69,501 336,495 19,594 18,565
U.S. Government & Agencies
Securities - - 648,957 547,115 - - -
Corporate Bonds - - 215,284 219,689 1,062,353 - -
Common Stock - - 817,975 348,331 3,424,707 - -
Preferred Stock - - 31,125 41,025 - - -
Unit Investment Trust 1,482,105 - - - - - -
Mutual Funds - - - - - - 1,913,484
Participant Loans - - - - - - -
___________ ____________ __________ __________ ___________ __________ ___________
Total Investments 1,482,687 449,537 1,824,004 1,225,661 4,823,555 466,961 1,932,049
Receivables:
Employer Contributions - - - - - - -
Employee Contributions - - - - - - -
Accrued Interest 25 2,109 18,374 15,533 31,083 84 25,019
____________ ____________ ___________ ___________ ___________ __________ ____________
Total Assets 1,482,712 451,646 1,842,378 1,241,194 4,854,638 467,045 1,957,068
____________ ____________ __________ ___________ ___________ __________ ____________
Liabilities
ESOP Loan - - - - - - -
____________ _____________ __________ ___________ ___________ __________ ____________
Total Liabilities - - - - - - -
____________ _____________ __________ ___________ ___________ ___________ ____________
Net Assets Available for
Benefits $1,482,712 $ 451,646 $1,842,378 $1,241,194 $4,854,638 $ 467,045 $1,957,068
=========== ============ =========== =========== ========== ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
NON-PARTICIPANT
DIRECTED
______________________
American American Janus Janus Employee Stock
Century Century Growth & World Ownership
Value Equity Income Wide Other Allocated Unallocated Total
__________ _________ __________ _____________ ___________ __________ ___________ ____________
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments at Fair Value:
Acceptance Insurance Companies
Inc. Common Stock $ - $ - $ - $ - $ - $ 316,796 $ 41,158 $ 805,321
Money Market Fund 3,189 8,482 3,158 (1,181) 40,692 2,078 - 1,061,355
U.S. Government & Agencies
Securities - - - - - - - 1,196,072
Corporate Bonds - - - - - - - 1,497,326
Common Stock - - - - - - - 4,591,013
Preferred Stock - - - - - - - 72,150
Unit Investment Trust - - - - - - - 1,482,105
Mutual Funds 209,367 498,318 1,725,262 634,525 - - - 4,980,956
Participant Loans - - - - 426,014 - - 426,014
___________ _________ ___________ ___________ ___________ _________ _________ ___________
Total Investments 212,556 506,800 1,728,420 633,344 466,706 318,874 41,158 16,112,312
Receivables:
Employer Contributions - - - - 1,177,888 - - 1,177,888
Employee Contributions - - - - 159,696 - - 159,696
Accrued Interest 16 49 100 40 1,960 10 - 94,402
__________ __________ __________ __________ ___________ _________ ________ ___________
Total Assets 212,572 506,849 1,728,520 633,384 1,806,250 318,884 41,158 17,544,298
__________ __________ __________ __________ ___________ _________ ________ ___________
Liabilities
ESOP Loan - - - - - - 78,742 78,742
__________ __________ ___________ _________ ____________ __________ _________ ___________
Total Liabilities - - - - - - 78,742 78,742
__________ __________ ___________ __________ ____________ __________ ________ ___________
Net Assets Available for
Benefits $ 212,572 $ 506,849 $1,728,520 $633,384 $1,806,250 $ 318,884 $(37,584) $17,465,556
=========== ========== =========== ========= ============ ========== ========= ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
_________________________________________________________________________________________
Guaranteed Capital Acceptance
Interest Market Balanced Income Appreciation Common
Contracts Funds Portfolio Portfolio Portfolio Stock Fund Other
___________ ___________ ___________ ___________ ___________ ___________ ___________
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments at Fair Value:
Acceptance Insurance Companies
Inc. Common Stock $ - $ - $ - $ - $ - $1,434,551 $ -
Money Market Fund 196,298 420,744 814,148 329,546 557,370 12,772 185,601
U.S. Government & Agencies
Securities - - 845,605 609,984 - - -
Corporate Bonds - - 242,995 265,998 2,311,008 - -
Common Stock - - 905,940 179,376 5,158,810 - -
Preferred Stock - - 98,944 107,267 - - -
Unit Investment Trust 1,049,550 - - - - - -
Participant Loans - - - - - - 507,951
Investments at Contract Value:
Guaranteed Interest Contracts - - - - - - -
Certificate of Deposit - - - - - - -
___________ ___________ __________ ___________ __________ __________ _________
Total Investments 1,245,848 420,744 2,907,632 1,492,171 8,027,188 1,447,323 693,552
Receivables:
Employer Contributions - - - - - - 1,258,174
Employee Contributions - - - - - - -
Accrued Interest 1,616 1,627 21,721 14,941 54,675 35 144
___________ ____________ _________ __________ __________ _________ __________
Total Assets 1,247,464 422,371 2,929,353 1,507,112 8,081,863 1,447,358 1,951,870
___________ ____________ _________ __________ __________ _________ ___________
Liabilities
ESOP Loan - - - - - - -
___________ ____________ _________ __________ ___________ _________ ___________
Total Liabilities - - - - - - -
___________ ____________ _________ __________ ___________ _________ ___________
Net Assets Available for
Benefits $1,247,464 $ 422,371 $2,929,353 $1,507,112 $8,081,863 $1,447,358 $1,951,870
=========== =========== ========== =========== ============ =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
NON-PARTICIPANT
DIRECTED
___________________________________________
Employee Stock
Ownership
Allocated Unallocated Total
____________ ____________ ___________
<S> <C> <C> <C>
Assets:
Investments at Fair Value:
Acceptance Insurance Companies
Inc. Common Stock $1,112,454 $ 230,283 $ 2,777,288
Money Market Fund 281 - 2,516,760
U.S. Government & Agencies
Securities - - 1,455,589
Corporate Bonds - - 2,820,001
Common Stock - - 6,244,126
Preferred Stock - - 206,211
Unit Investment Trust - - 1,049,550
Participant Loans - - 507,951
Investments at Contract Value:
Guaranteed Interest Contracts - - -
Certificate of Deposit - - -
____________ __________ ____________
Total Investments 1,112,735 230,283 17,577,476
Receivables:
Employer Contributions - - 1,258,174
Employee Contributions - - -
Accrued Interest 1 - 94,760
____________ ___________ ____________
Total Assets 1,112,736 230,283 18,930,410
____________ ___________ ____________
Liabilities
ESOP Loan - 125,094 125,094
____________ ___________ ___________
Total Liabilities - 125,094 125,094
_____________ ___________ ____________
Net Assets Available for
Benefits $1,112,736 $ 105,189 $18,805,316
============= =========== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
_____________________________________________________________________________________________
Guaranteed Capital Acceptance Vanguard
Interest Market Balanced Income Appreciation Common Index
Contracts Funds Portfolio Portfolio Portfolio Stock Fund 500
___________ _________ ___________ __________ ___________ ____________ ____________
<S> <C> <C> <C> <C> <C> <C> <C>
Additions:
Investment Income:
Interest $ 1,648 $ 22,628 $ 91,899 $ 69,430 $ 232,768 $ 865 $ 524
Dividends - - 23,771 15,512 54,947 - 42,746
Realized Gain (Loss) 5,712 - 179,316 13,570 (108,946) (84,480) (5)
Unrealized Gain (Loss) 78,651 - (214,519) (30,101) 189,376 (1,055,707) 172,721
___________ __________ ____________ ___________ ____________ ____________ ___________
86,011 22,628 80,467 68,411 368,145 (1,139,322) 215,986
___________ __________ ____________ ___________ ____________ ____________ ___________
Allocation of 3,628 shares of
Company Stock at Market - - - - - - -
___________ __________ ____________ ___________ _____________ ____________ ___________
Contributions:
Employee 146,291 73,147 417,716 156,546 577,781 144,376 164,724
Employee Rollovers 66,029 310 39,374 45,065 23,500 126 3,929
Employer 88,199 46,348 160,215 52,941 196,454 74,894 210,854
Interest Paid by Acceptance
on behalf of Plan - - - - - - -
____________ __________ ____________ ___________ _____________ ____________ ____________
300,519 119,805 617,305 254,552 797,735 219,396 379,507
____________ __________ ____________ ___________ _____________ ____________ ____________
Total Additions 386,530 142,433 697,772 322,963 1,165,880 (919,926) 595,493
____________ __________ ____________ ___________ _____________ ___________ ____________
Deductions:
Distributions to Plan Participants 312,292 137,507 973,203 453,608 1,842,650 151,979 12,185
Allocation of 3,628 Shares of
Company Stock at Market - - - - - - -
Interest on ESOP Loan - - - - - - -
____________ _________ ____________ __________ _____________ ___________ ____________
Total deductions 312,292 137,507 973,203 453,608 1,842,650 151,979 12,185
Net Transfer of Assets (to) from 161,010 24,349 (811,544) (135,273) (2,550,455) 91,592 1,373,760
____________ _________ ____________ __________ _____________ ___________ ____________
Net Increase (Decrease) 235,248 29,275 (1,086,975) (265,918) (3,227,225) (980,313) 1,957,068
Net Assets Available for Benefits
Beginning of Year 1,247,464 422,371 2,929,353 1,507,112 8,081,863 1,447,358 -
____________ _________ ____________ __________ _____________ ____________ ___________
Net Assets Available for Benefits
End of Year $1,482,712 $ 451,646 $ 1,842,378 $1,241,194 $ 4,854,638 $ 467,045 $1,957,068
=========== ========== ============ =========== ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
NON-PARTICIPANT
DIRECTED
___________________________________________________________ ______________________
American American Janus Janus Employee Stock
Century Century Growth & World Ownership
Value Equity Income Wide Other Allocated Unallocated Total
___________ ___________ ___________ ___________ ___________ __________ ___________ ____________
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions:
Investment Income:
Interest $ 53 $ 123 $ 292 $ 157 $ 64,102 $ 151 $ - $ 484,640
Dividends 15,750 6,757 - - - - - 159,483
Realized Gain (Loss) (3) - 8 - - (26,683) - (21,511)
Unrealized Gain (Loss) (39,887) 41,591 351,016 194,864 - (771,507) (131,182) (1,214,684)
__________ _________ __________ __________ ___________ ___________ __________ ____________
(24,087) 48,471 351,316 195,021 64,102 (798,039) (131,182) (592,072)
__________ _________ __________ __________ ___________ ___________ __________ ____________
Allocation of 3,628 shares of
Company Stock at Market - - - - - 57,943 - 57,943
__________ _________ __________ __________ ___________ ___________ __________ ____________
Contributions:
Employee 20,185 50,273 141,650 55,010 - - - 1,947,699
Employee Rollovers - 253 3,992 316 - - - 182,894
Employer 24,004 65,667 187,664 70,650 - - 46,352 1,224,242
Interest Paid by Acceptance
on behalf of Plan - - - - - - 9,742 9,742
__________ ___________ __________ __________ ___________ ___________ _________ ____________
44,189 116,193 333,306 125,976 - - 56,094 3,364,577
__________ ___________ __________ __________ ___________ ___________ _________ ____________
Total Additions 20,102 164,664 684,622 320,997 64,102 (740,096) (75,088) 2,830,448
_________ ___________ __________ __________ ___________ ___________ _________ ____________
Deductions:
Distributions to Plan Participants 642 3,025 22,648 11,958 149,947 30,879 - 4,102,523
Allocation of 3,628 Shares of
Company Stock at Market - - - - - - 57,943 57,943
Interest on ESOP Loan - - - - - - 9,742 9,742
_________ ___________ __________ __________ __________ __________ _________ ___________
Total deductions 642 3,025 22,648 11,958 149,947 30,879 67,685 4,170,208
Net Transfer of Assets (to) from 193,112 345,210 1,066,546 324,345 (59,775) (22,877) - -
__________ ___________ ___________ __________ __________ ___________ _________ ___________
Net Increase (Decrease) 212,572 506,849 1,728,520 633,384 (145,620) (793,852) (142,773) (1,339,760)
Net Assets Available for Benefits
Beginning of Year - - - - 1,951,870 1,112,736 105,189 18,805,316
_________ __________ ___________ __________ ___________ __________ __________ ____________
Net Assets Available for Benefits
End of Year $ 212,572 $ 506,849 $1,728,520 $ 633,384 $1,806,250 $ 318,884 $ (37,584) $17,465,556
========== ========== =========== =========== =========== ========== ========== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
_____________________________________________________________________________________
Guaranteed Capital Acceptance
Interest Market Balanced Income Appreciation Common
Contracts Funds Portfolio Portfolio Portfolio Stock Fund Other
____________ __________ ___________ ___________ ___________ ___________ ___________
<S> <C> <C> <C> <C> <C> <C> <C>
Additions:
Investment Income:
Interest $ 14,782 $ 16,951 $ 80,969 $ 53,747 $ 255,979 $ 391 $ 46,401
Dividends - - 15,459 8,644 65,702 - -
Realized Gain 2,152 - 198,650 90,621 187,237 51,175 -
Unrealized Gain (Loss) 59,180 - (7,175) (23,506) (370,101) (334,960) -
____________ _________ ___________ ___________ ____________ ___________ ___________
76,114 16,951 287,903 129,506 138,817 (283,394) 46,401
____________ _________ ___________ ___________ ____________ ___________ ___________
Allocation of 3,909 shares of
Company Stock at Market - - - - - - -
____________ _________ ___________ ___________ ____________ ___________ ___________
Contributions:
Employee 149,080 61,331 484,407 184,195 795,046 155,769 -
Employee Rollovers 15,493 40,188 67,820 25,938 54,284 27,028 -
Employer 104,539 52,002 325,779 121,243 548,672 105,940 -
Interest Paid by Acceptance
on behalf of Plan - - - - - - -
____________ _________ ___________ ___________ ____________ ___________ ___________
269,112 153,521 878,006 331,376 1,398,002 288,737 -
____________ _________ ___________ ___________ ____________ ___________ ___________
Total Additions 345,226 170,472 1,165,909 460,882 1,536,819 5,343 46,401
____________ _________ ___________ ___________ ____________ ____________ ___________
Deductions:
Distributions to Plan Participants 67,182 34,860 164,772 45,203 407,716 115,367 20,032
Allocation of 3,909 Shares of
Company Stock at Market - - - - - - -
Interest on ESOP Loan - - - - - - -
____________ _________ ___________ ___________ ____________ _____________ __________
Total deductions 67,182 34,860 164,772 45,203 407,716 115,367 20,032
Net Transfer of Assets (to) from (140,391) 10,333 (55,374) 354,425 (442,100) 15,571 257,536
____________ ________ ___________ ___________ ____________ _____________ __________
Net Increase (Decrease) 137,653 145,945 945,763 770,104 687,003 (94,453) 283,905
Net Assets Available for Benefits
Beginning of Year 1,109,811 276,426 1,983,590 737,008 7,394,860 1,541,811 1,667,965
___________ __________ ___________ ___________ __________ ___________ _____________
Net Assets Available for Benefits
End of Year $1,247,464 $ 422,371 $2,929,353 $1,507,112 $8,081,863 $1,447,358 $1,951,870
============ ========== =========== ========== =========== =========== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
NON-PARTICIPANT
DIRECTED
___________________________
Employee Stock
Ownership
Allocated Unallocated Total
____________ ____________ _____________
<S> <C> <C> <C>
Additions:
Investment Income:
Interest $ 62 $ - $ 469,282
Dividends - - 89,805
Realized Gain 68,095 - 597,930
Unrealized Gain (Loss) (291,838) (44,998) (1,013,398)
_____________ ___________ ____________
(223,681) (44,998) 143,619
_____________ ___________ ____________
Allocation of 3,909 shares of
Company Stock at Market 94,304 - 94,304
_____________ ___________ ____________
Contributions:
Employee - - 1,829,828
Employee Rollovers - - 230,751
Employer - 43,004 1,301,179
Interest Paid by Acceptance
on behalf of Plan - 13,091 13,091
_____________ ___________ ____________
- 56,095 3,374,849
_____________ ___________ ____________
Total Additions (129,377) 11,097 3,612,772
_____________ ___________ ____________
Deductions:
Distributions to Plan Participants 169,693 - 1,024,825
Allocation of 3,909 Shares of
Company Stock at Market - 94,304 94,304
Interest on ESOP Loan - 13,091 13,091
_____________ ___________ ___________
Total deductions 169,693 107,395 1,132,220
Net Transfer of Assets (to) from - - -
_____________ ___________ ___________
Net Increase (Decrease) (299,070) (96,298) 2,480,552
Net Assets Available for Benefits
Beginning of Year 1,411,806 201,487 16,324,764
____________ __________ ____________
Net Assets Available for Benefits
End of Year $1,112,736 $105,189 $18,805,316
============ ========== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
1. Description of the Plan
The following description of the Plan provides only general information.
Participants should refer to the Plan agreement for a more complete
description of the Plan's provisions.
A. General
The Acceptance Insurance Companies Inc. Employee Stock
Ownership (ESOP) and Tax Deferred Savings Plan (401(k)) (the
Plan) was established to enable participating employees of
Acceptance Insurance Companies Inc. (the Company) to share in
the growth of the employer and to provide participants with
future economic security. Participation in the Plan is
voluntary and is applicable to all employees who have been
credited with one year of service and attained the age of 21
for the ESOP portion and have been credited with six months of
service and attained the age of 21 for the 401(k) portion. The
Plan is administered by the Acceptance Insurance Companies Inc.
Administrative Committee.
B. Contributions
Employee contributions are invested in one or more funds as
elected by the employee. As of December 31, 1999, the
following funds were available for investment: Money Market
Funds, Income Portfolio, Balanced Portfolio, Capital
Appreciation Portfolio, Guaranteed Interest Contracts,
Acceptance Insurance Companies Inc. Common Stock Fund, Vanguard
Index 500 Fund, American Century Value Fund, American Century
Equity Fund, Janus Growth Fund, and Janus Worldwide Fund.
Employer contributions are invested only in the Acceptance
Common Stock Fund for the ESOP portion of the Plan and in one
or more funds for the 401(k) portion of the Plan, as directed
by the participant. Participants may change their investment
options quarterly.
Each participant may, subject to the maximum limitations under
ERISA, contribute to the 401(k) portion from 1% to 15% of their
compensation, as defined under the Plan. The Company may, but
is not required to, contribute a matching contribution. The
Company may also make an additional discretionary contribution.
Any Company contributions are determined by the Company's Board
of Directors.
C. Vesting
Employer contributions to the ESOP portion of the Plan become
vested in accordance with a vesting schedule which increases
20% for each consecutive year of service starting with the
third year of service and are fully vested after seven years of
service. For the 401(k) portion of the Plan, except upon
death, disability or retirement, whereupon employer
contributions become fully vested, employer contributions are
vested 10% with one year of service and vesting increases to
30%, 50%, 75%, and 100% through five years of service.
Employee contributions are fully vested at all times.
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 1999
C. Vesting - Continued
The normal form of benefit for a participant who terminates or
retires is a lump sum payment. If the participant's account
was vested in Acceptance Insurance Companies Inc. common stock,
the payment can be in the form of stock or cash. For all other
account balances the lump sum payment is in cash only.
D. Forfeited Accounts
For terminated employees withdrawing their vested accounts,
forfeited accounts are reallocated to participants in the same
proportion each participant's salary reduction is to the total
of all participants' salary reduction. ESOP forfeitures are
allocated in the same manner as the Employer Discretionary ESOP
contribution. During the Plan Year ended December 31, 1999 and
1998, forfeited account balances totaled $45,518 and $42,037,
respectively. Amounts allocated to accounts of terminated
participants electing to withdraw from the plan were $0 and
$110, respectively, at December 31, 1999 and 1998.
E. Loans to Participants
The Plan provides that participants may be granted loans
subject to certain terms and maximum dollar or vested account
balance limits, as defined by the Plan. These loans mature
within five years from the date they are granted, except loans
for the participant's principal residence can be extended
beyond five years. Loan payments are withheld from employee
payroll and submitted to the trustee.
F. Plan Termination
The term of the plan is indefinite, but may be amended,
modified or terminated at any time by the Company. Regardless
of such actions, the principal and income of the Plan remains
for the exclusive benefit of the Plan's participants and
beneficiaries. In the event the Plan is terminated, with
certain exceptions, each participant's account becomes 100%
vested. The Company is required to direct the Trustee to
distribute the Plan's assets to participants in lump sum
distributions, which shall be made in whole shares of
Acceptance Insurance Companies Inc. stock to the extent the
fund is so comprised and cash.
2. Summary of Significant Accounting Policies
A. Basis of Accounting
The financial statements of the Acceptance Insurance Companies
Inc. Employee Stock Ownership and Tax Deferred Savings Plan are
prepared on the accrual basis of accounting.
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 1999
2. Summary of Significant Accounting Policies - Continued
B. Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires the plan
administrator to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses
during the reporting period. Actual results may differ from
those estimates.
C. Investment Valuation and Income Recognition
Investments in equity securities are recorded at fair value.
Mutual fund units are recorded at reported net asset value.
Investments in guaranteed interest contracts are valued at
contract value (See Note 3), which approximates fair value.
Participant loans are carried at the balance of outstanding
principal.
Purchases and sales of securities are recorded on a
settlement-date basis, which approximates trade-date basis.
Interest and dividend income are reported on the accrual basis.
D. Payment of Benefits
Benefits are recorded when paid.
3. Guaranteed Interest Contracts with Insurance Company
Assets that were merged into the Plan from the Redland Group 401(k) Plan
include a Guaranteed Interest Account entered into with Principal Mutual
Life Insurance Company (Principal) on September 1, 1992. Pursuant to the
merger, the contracts were transferred to the Plan trustee, who
maintains the contributions. During 1998, funds from contracts with
Principal that had matured were converted to a mutual fund. The
contracts are included in the financial statements at contract value,
which approximates fair value, as reported to the Plan by Principal.
Contract value represents contributions made under the contract, plus
earnings, less Plan withdrawals.
4. Exercise of Warrants and ESOP Loan
Effective November 28, 1994, the Plan exercised its 27,010 warrants to
purchase common stock of Acceptance Insurance Companies Inc. at $11.00 a
share, for a total purchase price of $297,110, financed by a term note
guaranteed by Acceptance Insurance Companies Inc.
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 1999
4. Exercise of Warrants and ESOP Loan - Continued
The term note bears interest at 7.5%, payable in annual installments of
$56,094, including principal and interest. The annual principal and
interest payments are due beginning February 1, 1995, with any remaining
principal due February 1, 2001. Effective November 28, 1994, the
Company entered into a contribution agreement whereby the Company agrees
to contribute to the Plan a sufficient amount to allow the Plan to pay
the annual installments of principal and interest on the loan. The Plan
agrees to apply any amounts received toward the annual principal and
interest installments. Interest of $9,742 was paid by the Company on
behalf of the Plan, for the year ended December 31, 1999. Loan
principal repayments will be made as follows:
2000 $ 49,964
2001 28,778
__________
$ 78,742
==========
The loan is collateralized by the unallocated shares of stock. As the
ESOP loan is paid, stock is released from encumbrance and allocated to
participants' accounts based on a predetermined formula. The lender
has no right against shares that have been released and allocated under
the ESOP. Accordingly, the financial statements present separately the
assets and liabilities and changes therein related to:
* Stock already released and allocated to participant accounts.
* Stock not yet allocated to employees (unallocated).
5. Income Tax Status
The Internal Revenue Service has informed the Company that the Plan, as
amended and restated October 1, 1990, is qualified under Section 401(a)
of the Internal Revenue Code (IRC) and is, accordingly, exempt from
federal income taxes under the provisions of Section 501(a) of the IRC.
A participant's contributions to the 401(k) portion of the Plan are made
on a pre-tax basis, i.e., they are excluded from gross income for income
tax purposes, but are subject to social security taxes. A participant
is not subject to federal income taxes on the amount of participant
contributions, Company contributions or Plan earnings until such amounts
are withdrawn or distributed. The tax consequences to participants will
vary depending on the circumstances at the time of distribution.
6. Fees and Expenses
Fees and expenses that are incurred directly in the interest of the Plan
were paid by Acceptance Insurance Companies Inc. for the years ended
December 31, 1999 and 1998.
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 1999
7. Related Party Transactions
Silverstone Group, a related party through common management, began
administering the Plan on July 1, 1994. As stated in Note 6, all fees
incurred for Plan administration were paid by Acceptance Insurance
Companies Inc.
8. Investments
Investments held by the Plan at December 31, are:
<TABLE>
<CAPTION>
1999 1998
Cost Market Cost Market
_____________ ____________ _____________ ______________
<S> <C> <C> <C> <C>
*Acceptance Insurance Companies
Inc. Common Stock (132,898
shares and 125,777 shares) $ 1,931,546 764,163 $ 1,873,809 $ 2,547,005
*Acceptance Insurance Companies
Inc. Common Stock (7,158 shares
and 11,372 shares encumbered by
ESOP Loan (Note 4)) 78,738 41,158 125,092 230,283
Common Stock of unaffiliated
Companies 4,169,778 4,591,013 5,307,936 6,244,126
Preferred Stock 98,225 72,150 222,567 206,211
Unit Investment Trust 1,299,279 1,482,105 924,943 1,049,550
Mutual Funds 4,260,650 4,980,956 - -
U.S. Government & Agencies
Securities 1,255,134 1,196,072 1,443,384 1,455,589
Corporate Bonds 1,587,104 1,497,326 2,911,935 2,820,001
Money Market Fund 1,061,355 1,061,355 2,516,760 2,516,760
Participant Loans - 426,014 - 507,951
_____________ _____________ _____________ _____________
$ 15,741,809 $ 16,112,312 $ 15,326,426 $ 17,577,476
============= ============= ============= =============
</TABLE>
At December 31, 1999, individual investments representing 5% or more of net
assets available are as follows:
<TABLE>
<CAPTION>
Cost Market
____________ __________
<S> <C> <C>
*Acceptance Insurance Companies
Common Stock $ 2,010,284 $ 805,321
Key Trust EB Managed Guaranteed
Investment Contract 1,299,279 1,482,105
First National Bank-U.S. Government
Obligation Fund 1,061,355 1,061,355
Mutual Funds - Vanguard 500
Index Fund 1,784,347 1,913,483
Mutual Funds - Janus Aspen Series
Growth Portfolio Retirement Shares 1,347,866 1,696,595
<FN>
*Represents a Party-In-Interest.
</FN>
</TABLE>
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 1999
9. Reconciliation of Financial Statements to Form 5500
There were no reconciling items between Form 5500 and these Financial
Statements for the year ended December 31, 1999 and 1998.
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
ANNUAL REPORT SCHEDULES
ITEM 4i - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1999
TAX IDENTIFICATION NUMBER 31-0742926
PLAN NUMBER 001
<TABLE>
<CAPTION>
Column B Column C Column D Column E
________________________________ ________________________________________________________ ____________ ______________
Identity of Issue, Borrower Description of Investment, Including Collateral, Rate
Lessor of Similar Party of Interest, Maturity Date, Par on Maturity Date
Common Stock Number of Shares Cost Current Value
________________________________ ________________________________________________________ ____________ ______________
<S> <C> <C> <C>
*Acceptance Insurance Companies 132,898 $1,931,546 $ 764,163
*Acceptance Insurance Companies 7,158 collateralized by term note, 7.5%, 78,738 41,158
maturing 2/1/2001
Adelphia Communications Corp 1150 64,831 75,469
Allied CapitalCorp 5000 92,500 91,563
Allstate Corp 1,300 29,188 31,281
Annuity and Life RE (Hldgs) 5,700 110,285 148,913
Apache Corp 2,800 68,740 103,425
Ascent Assurance Inc. 870 35,943 1,549
Ascent Assurance, Inc. WTS 929 2 77
Autozone Inc. Com 3,700 96,746 119,556
BE Aerospace 8,100 147,279 68,344
Bell & Howell Co 2,200 50,669 69,988
Blockbuster Inc. Cl 1,100 16,461 14,713
Calpine Corporation 3,000 24,000 192,000
Capital Automotive Reit 8,500 108,896 103,594
Cinergy Corp Com 2,600 78,550 62,238
Citizens Utilities 12,300 122,534 174,506
Commercial Federal Corp 5,000 111,965 89,063
Daisytek Intl Corp 2,100 33,903 48,956
Emmis Communications Corp 1,300 82,132 162,033
Englehard Corp 6,200 121,180 117,025
EOG Resources 5,900 98,383 103,619
Evertrust Financial Group Inc. 2,600 25,919 24,294
FHLMC VT 2,041 65,325 96,055
Foremost Corp of America 2,140 22,559 60,723
Great Lakes Chem Corp 2,600 104,465 99,288
H & R Block 3,200 119,372 140,000
Heller Financial 2,200 58,533 44,138
Hibernia Corp 8,000 104,198 85,000
IHOP Corp 2,280 28,643 38,048
Intl Business Machs Corp 275 32,189 29,666
Int'l Flavors & Fragrance 1,614 57,111 60,727
Int'l Multifoods Corp 5,200 112,248 68,900
Kmart Corp 4,100 49,062 41,256
Keane Inc Com 1,100 33,346 35,338
Kimberly-Clark Corp 2,400 117,162 157,050
Kinder Morgan Inc 4,600 91,153 92,863
Knight Ridder Inc 2,200 118,163 131,038
Lincoln Electric Co. CLA 2,158 33,868 44,509
Mediaone Group 1,400 59,732 107,538
Midamerican Energy Holdings 2,800 72,241 94,325
Midas Inc Com 5,899 92,915 129,041
NCR Corporation 80 2,376 3,030
</TABLE>
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
ANNUAL REPORT SCHEDULES
ITEM 4i - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES - CONTINUED
DECEMBER 31, 1999
TAX IDENTIFICATION NUMBER 31-0742926
PLAN NUMBER 001
<TABLE>
<CAPTION>
Column B Column C Column D Column E
________________________________ ______________________________________________________ ___________ ________________
Identity of Issue, Borrower Description of Investment, Including Collateral, Rate
Lessor of Similar Party of Interest, Maturity Date, Par on Maturity Date
Common Stock Number of Shares Cost Current Value
________________________________ ______________________________________________________ ___________ _________________
<S> <C> <C> <C>
North Fork Bancorporation 300 5,742 5,213
Parametric Technology Corp Com 1,200 31,978 32,475
R H Donnelley Corp 4,000 65,004 75,500
Reliance Bancorp Inc 741 28,035 25,565
Rent-Way 470 8,992 8,783
Reynolds & Reynolds CIA 1,829 31,148 41,153
Rollins Inc 1,000 21,486 15,000
Roslyn Bancorp Inc 3,524 61,450 65,194
S & P 400 Nid Cap Dep Recpt 470 35,025 38,129
SPDR 1,495 183,433 219,578
Saks Incorporated 3,800 68,296 59,138
Santa Fe International Corp 3,300 85,987 85,388
Sensormatic Electronics Corp Com 1,900 31,132 33,131
Service Corp International 3,500 50,994 24,281
Sovereign Bancorp 4,300 35,050 32,048
St. Jude Medical Inc. 1,200 41,966 36,825
Tenet Healthcare Corp 5,400 109,836 126,900
Tupperware Corporation 1,700 33,542 28,794
U S Industries 5,070 88,793 70,980
UCAR International 3,140 81,514 55,931
Unisys Corp 1,000 33,285 31,938
Universal Foods Corp 3,700 79,956 75,388
Washington Mutual Inc 1,660 62,367 42,942
_________ _________
Total Common Stock 6,180,062 5,396,334
_________ _________
*Represents a Party-In-Interest
Preferred Stock:
Host Marriott Fin Trust Pfd 2,000 87,875 62,250
Taylor Capital Group Inc 400 10,350 9,900
_________ __________
Total Preferred Stock 98,225 72,150
_________ __________
Unit Investment Trust:
Keytrust EB Managed Guaranteed
Investment Contract 6,657 1,299,279 1,482,105
_________ _________
Mutual Funds:
Vanguard 500 Index Fund 14,139.392 1,740,763 1,913,484
American Century Cap Portfolio
Value Fund Advisor Cl 38,136.095 249,254 209,367
American Century Equity
Growth Fund Advisors Cl 18,998.011 456,726 498,318
Janus Aspen Series Growth and
Income Portfolio Retirement 1,386.189 26,379 28,666
Janus Aspen Series Growth
Portfolio Retirement Shares 50,463.865 1,347,867 1,696,596
Janus Aspen Series Worldwide
Growth Portfolio Retirement Shares 13,341.569 439,661 634,525
_________ __________
Total Mutual Funds 4,260,650 4,980,956
_________ __________
</TABLE>
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
ANNUAL REPORT SCHEDULES
ITEM 4i - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES - CONTINUED
DECEMBER 31, 1999
TAX IDENTIFICATION NUMBER 31-0742926
PLAN NUMBER 001
<TABLE>
<CAPTION>
Column B Column C Column D Column E
________________________________________ ______________________________________________________ __________ ____________
Identity of Issue, Borrower Description of Investment, Including Collateral, Rate
Lessor of Similar Party of Interest, Maturity Date, Par on Maturity Date
U.S. Government and Agencies Securities Number of Shares Cost Current Value
________________________________________ ______________________________________________________ _________ _____________
<S> <C> <C> <C>
FFCB 50,000 50,000 47,135
Mtn Dtd 12/2/98 5.15% 12/02/03
FHLB 100,000 101,156 94,531
Ser BU 12 Dtd 8/20/97 Unsec 7.3% 8/20/2012-99
FHLB 50,000 50,000 48,985
Dbs Dtd 10/29/97 Unsec 6.03% 10/29/2002-99
FHLB 75,000 75,000 74,204
Bds Dtd 9/1/99 Unsec 8.15% 0-01-2009-2000
FHLB 100,000 100,000 94,031
Bds dtd 1/7/99 Unsec 5.18% 01/07/2004-2002
FHLB 90,000 90,000 84,815
Bds Dtd 2/17/99 Unsecd 5.75% 02/17/2009-1999
FHLMC 125,000 125,000 121,329
Debs Dtd 11/17/98 Unsec 5.3% 05/12/2002-2000
FHLMC 100,000 99,840 96,844
Deb Dtd 12/7/98 Unsec 4.75% 12/14/2001
FHLMC 100,000 100,000 97,719
Debs Dtd 1/14/99 Unsec 5.41% 01/14/2002-2000
FHLMC 50,000 50,875 49,282
Dtd 4/24/97 Unsecd 7.67% 04/24/2007-2000
FNMA 100,000 101,750 97,729
Mtn Ded 10/11/96 7.42% 10/12/2006-1999
FNMA 100,000 101,500 95,236
Ser B Mtn Dtd 10/10/97 Unsec 7.25% 10/12/2012-1999
FNMA 805,000 135,200 123,035
Ser B Mtn Dtd 10/29/97 Unsec 7% 10/29/2012-2002
FNMA 25,000 24,938 24,374
Mtn Dtd 1/23/98 Unsec 5.9% 01/24/2003-2000
FNMA 50,000 49,875 46,823
Mtn Dtd 2/13/98 Unsec 6.27% 2/13/2008-2003
_________ __________
Total U.S. Government and Agencies Securities 1,255,134 1,196,072
_________ __________
Corporate Bonds:
Novacare Inc 50,000 - 5.5% Mat-1/15/2000-96 45,006 49,250
Quantum Health Res Inc 50,000 - 4.75% Mat-10/01/2000-95 46,125 45,938
Avatar Holdings Inc 50,000 - 7% Mat-4/01/2005-2001 50,000 43,000
Commercial Federal Corp 50,000 - 7.95% Mat-12/01/2006-01 50,000 45,000
Key Energy Services Inc 25,000 - 5% Mat-9/15/2004-2000 21,500 17,094
Archibald Candy Corp Co 70,000 - 10.25% Mat-1/01/2004-2001 75,688 67,550
Dynacare Inc 40,000 - 10.75% Mat-1/15/2006-01 41,025 38,800
Coinmach Corp 70,000 - 11.75% Mat-11/15/2005-2000 76,388 72,100
Moog Inc 70,000 - 10% Mat-5/1/2006-01 70,830 71,299
Owens & Minor Inc 70,000 - 10.875% Mat-6/1/2006-01 75,394 72,100
Hayes Wheels Inc 70,000 - 11% Mat-7/15/2006-01 76,125 73,150
Outdoor Systems Inc 70,000 - 9.325% Mat-10/15/2006-01 71,750 72,625
</TABLE>
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
ANNUAL REPORT SCHEDULES
ITEM 4i - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES - CONTINUED
DECEMBER 31, 1999
TAX IDENTIFICATION NUMBER 31-0742926
PLAN NUMBER 001
<TABLE>
<CAPTION>
Column B Column C Column D Column E
________________________________ _____________________________________________________ ______________ ______________
Identity of Issue, Borrower Description of Investment, Including Collateral, Rate
Lessor of Similar Party of Interest, Maturity Date, Par on Maturity Date
Corporate Bonds Number of Shares Cost Current Value
________________________________ ______________________________________________________ _____________ _____________
<S> <C> <C> <C>
Host Marriott Travel Plaza 70,000 - 9.5% Mat-5/15/2005-00 71,594 72,450
Keebler Corp 70,000 - 10.75% Mat-7/01/2006-2001 78,663 75,167
L-3 Communications 60,000 - 8.5% Mat-5/15/2008 59,958 56,250
Navistar International Corp 70,000 - 8% Mat-2/01/2008-2003 71,050 66,500
Tekni-Flex Inc 70,000 - 11.25% Mat-4/1/2007-2002 77,975 75,600
Mark IV Industries Inc 50,000 - 4.75% Mat-11/01/2004-00 50,000 40,563
Swift Energy Co 50,000 - 6.25% Mat-11/15/2006-1999 46,438 38,625
Thermo Instr Sys Inc 50,000 - 4% Mat-1/14/2005-2001 41,250 36,500
Delco Remy Intl 70,000 - 8.625% Mat-12/15/2007-2002 72,013 66,150
General Elec Cap Corp 85,000 - 6.66% Mat-5/01/2018-1996 86,275 85,004
Parker Drilling Co 25,000 - 5.5% Mat-8/1/2004-2000 24,406 17,000
Parker Drilling Co 25,000 - 5.5% Mat-8/1/2004-2000 23,063 17,000
Newport News Shipbuilding Inc 70,000 - 9.25% Mat-12/01/2006-01 73,150 69,825
Quest Diagnostic Inc 70,000 - 10.75% Mat-12/15/2006-01 75,800 77,000
Premier Parks 35,000 - 9.75% Mat-1/14/2007-02 35,638 35,786
____________ ___________
Total Corporate Bonds 1,587,104 1,497,326
____________ ___________
Money Market Fund:
First National Bank of Omaha 2,516,760 units 1,061,355 1,061,355
_____________ ___________
Participant Loans Participant loans bearing various dates & interest
rates - 426,014
____________ ____________
Total Investments $15,741,809 $16,112,312
============= ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
ANNUAL REPORT SCHEDULES
ITEM 4j - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES - WHICH WERE BOTH ACQUIRED
AND DISPOSED OF WITHIN THE PLAN YEAR
DECEMBER 31, 1999
TAX IDENTIFICATION NUMBER 31-0742926
PLAN NUMBER 001
Column B Column C Column D Column E
_________________________________ _______________________________________________________ ___________ ___________
Identity of Issue, Borrower Description of Investment, Including Collateral, Rate
Lessor of Similar Party of Interest, Maturity Date, Par on Maturity Date
Corporate Bonds Number of Shares Cost Proceeds
_________________________________ _______________________________________________________ ___________ __________
<S> <C> <C> <C>
L-3 Communication Corp 130,000 - 8.00% Dtd 2/1/99 $131,300 $123,825
Navistar International 50,000 - 8.00% Dtd 2/4/98 50,805 46,750
Browning-Ferris Industries 25,000 - 6.08% Dtd1/15/99 25,000 24,503
Citicorp 50,000 - 5.875 Dtd 1/22/98 50,800 50,188
Snap-on Tools Corp 35,000 - 6.625% Dtd10/3/95 34,519 34,421
Swedish Export Credit 50,000 - 5.00% Dtd 11/13/92 49,625 48,688
Browning-Ferris Industries 25,000 - 6.08% Dtd1/15/99 25,000 24,503
Citicorp 100,000 - 8.625% Dtd 11/3/94 101,600 100,375
L-3 Communication Corp 50,000 - 9.125% Dtd 4/28/98 46,125 44,875
Merck & Co 50,000 - 5.76% Dtd 5/13/97 49,975 49,825
Snap-on Tools Corp 50,000 - 6.625% Dtd 10/3/95 49,313 49,174
Swedish Export Credit 100,000 - 5.00% Dtd 11/13/92 99,250 97,375
________ _________
713,312 694,502
======== =========
Other Number of Shares Cost Proceeds
___________________________________ ____________________________________________________ __________ ___________
Participant Loans Participant loans bearing various dates & interest
rates - -
======== =========
</TABLE>
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
EMPLOYEE STOCK OWNERSHIP AND TAX DEFERRED SAVINGS PLAN
ANNUAL REPORT SCHEDULES
ITEM 4j - SCHEDULE OF REPORTABLE TRANSACTIONS
DECEMBER 31, 1999
TAX IDENTIFICATION NUMBER 31-0742926
PLAN NUMBER 001
Series Transactions, When Aggregated, Involving an Amount in Excess of 5
Percent of the Current Value of Plan Assets
<TABLE>
<CAPTION>
Column A Column B Column C Column D Column E Column F Column G
________________ _____________ ___________ __________ ______________ ____________ ____________
<S> <C> <C> <C> <C> <C> <C>
Identity of Description Number Number Total Total
Party of of of Dollar Value Dollar Value Net
Involved Assets Purchases Sales of Purchases of Sales Change
First National Money
Bank of Market
Omaha Funds Various Various $ 21,722,369 $ 22,982,723 $ 1,260,354
SPDR TR Unit
Unit Seri Trust Various Various $ 823,914 $ 640,481 $ 183,433
Vanguard Mutual
Index 500 Fund Various Various $ 1,741,768 $ - $ 1,741,768
Janus Growth Mutual
Fund Fund Various Various $ 1,348,268 $ 402 $ 1,347,866
</TABLE>
<PAGE>
TIGHE, MASSMAN & NELSON, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
13310 "I" Street
Omaha, Nebraska 68137
(402) 330-7099
FAX (402) 330-0809
J. William Tighe, C.P.A. (1930-1989)
Michael L. Massman, C.P.A.
George E. Nelson, C.P.A.
Dean M. Broich, C.P.A.
James A. Reinig, C.P.A.
_______
G. Michael Gillain
EXHIBIT 23
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in the registration statement on
Form S-8 of Acceptance Insurance Companies Inc. relating to the Acceptance
Insurance Companies Inc. Employee Stock Ownership and Tax Deferred Savings Plan
of our report dated June 9, 2000, appearing in this Annual Report on Form 11-K
of the Acceptance Insurance Companies Inc. Employee Stock Ownership and Tax
Deferred Savings Plan for the year ended December 31, 1999.
/s/ Tighe, Massman & Nelson, P.C.
Certified Public Accountants
Omaha, Nebraska
June 9, 2000
