Acceptance Insurance Companies Inc. Announces 4th Quarter and Twelve Months Results for 1998.

OMAHA, Neb.--(BUSINESS WIRE)--March 9, 1999--Acceptance Insurance Companies Inc. (NYSE:AIF) announced today results for the three and twelve months ended December 31, 1998.

Before special charges associated with the restructuring plan previously announced, net income for the quarter was $3.5 million or $.24 per share on a diluted basis, and net income for the year was $28.8 million or $1.92 per share on a diluted basis. This compares with $8.3 million or $.54 per share and $35.3 million or $2.30 per share for the same periods in 1997. The Company previously announced after tax charges of $23.3 million or $1.55 per share on a diluted basis, associated with a restructuring plan for its property and casualty operations. Including these charges, the net loss for the 4th quarter of 1998 was $19.8 million or $1.37 per share on a diluted basis, and the net income for the year was $5.5 million or $.37 per share on a diluted basis.

Property and casualty results for operations continuing and those being discontinued in the Company's restructuring as well as crop operations were as follows for the year 1998: -0-

                                    P&C              Crop      Total
                          Continuing Discontinued
                              (in thousands except per share data)
Underwriting Profit (Loss)    3,345    (47,117)     30,019    (13,753)
Investment Income            19,248     11,162       4,735     35,145
G&A                             976      1,707         819      3,502
Operating Profit (Loss)      21,617    (37,662)     33,935     17,890
Interest Expense and Other    4,235      2,444       3,131      9,810
Pre-tax Income (Loss)        17,382    (40,106)     30,804      8,080
Tax Expense (Benefit)         4,629    (12,626)     10,541      2,544
Net Income (Loss)            12,753    (27,480)     20,263      5,536
Net Income (Loss)
   Per Share-Diluted            .85      (1.83)       1.35        .37

The Company also confirmed that A.M. Best has affirmed the Company's A- (Excellent) rating following the Company's restructuring announcement, and Standard and Poor's has affirmed the Company's BBB financial strength and counterpart credit rating.

Chairman and CEO, Kenneth C. Coon, commented, "While we are disappointed with the Company's overall results for 1998, our core continuing operations reported solid results for 1998 despite difficult operating environments. Although difficult weather conditions affected crops in almost every region of the country, our crop division earned a 25% profit share under the Federal MPCI program, exceeding industry results. In an intensely competitive property and casualty environment, our continuing property and casualty operations recorded a combined loss and expense ratio of 98.0%, also better than industry averages."

The Company will hold a conference call for interested parties at 10:30 EST, Tuesday, March 9, 1999. Interested parties should access the Company's conference call at 212/896-6171 five to ten minutes before the call to insure timely participation. PostView will be available from 12:30 p.m. EST , March 9, 1999 until 5:00 p.m. EST, March 11, 1999. To access PostView, dial 800/633-8284 and enter reservation number 11897388 at the prompt.

Acceptance is an A- rated property and casualty insurance company concentrating on writing specialty coverages throughout the United States not generally emphasized by standard insurance carriers. The Company's insurance operations are conducted through its six insurance subsidiaries and one insurance agency. The Company selects underwriting specialties within the property and casualty industry that provide a diversified portfolio of products, with the goal of producing underwriting results better than the industry average. -0-

                  ACCEPTANCE INSURANCE COMPANIES INC.
  for the three months and twelve months ended Dec. 31, 1998 and 1997
                 (in thousands, except per share data)

                               Three Months          Twelve  Months
                              1998       1997       1998       1997
Gross premiums written     $ 117,166  $ 119,441  $ 700,960  $ 665,810
Ceded premiums written       (66,573)   (37,716)  (391,468)  (330,746)
  Net premiums written     $  50,593  $  81,725  $ 309,492  $ 335,064

Revenues:
  Insurance premiums earned$  69,717  $  78,467  $ 328,044  $ 335,215
  Net investment income        6,971      7,397     28,320     28,016
  Net realized capital
   gains                       1,471      1,948      6,825      7,321
                            --------   --------   --------   --------
                              78,159     87,812    363,189    370,552

Costs and expenses:
  Cost of revenues:
    Insurance losses and
     loss adjustment
     expenses                 78,828     52,086    237,061    213,455
    Insurance underwriting
     expenses                 22,901     21,147    104,736     97,109
  General and
   administrative expenses     1,660        441      3,502      2,063
                            --------   --------   --------   --------
                             103,389     73,674    345,299    312,627

Operating profit (loss)      (25,230)    14,138     17,890     57,925

Other income (expense):
  Interest expense            (2,386)    (2,205)    (8,994)    (6,569)
  Net loss from  investee         --        (38)      (704)      (209)
   Other, net                    (56)        85       (112)       158
                            --------   --------   --------   --------
                              (2,442)    (2,158)    (9,810)    (6,620)

Income (loss) before income
 taxes                       (27,672)    11,980      8,080     51,305
Income tax expense
 (benefit)                    (7,870)     3,631      2,544     15,992

Net income (loss)          $ (19,802) $   8,349  $   5,536  $  35,313

Net income (loss) per
 share:
 Basic                     $   (1.39) $     .55  $     .37  $    2.34
 Diluted                   $   (1.37) $     .54  $     .37  $    2.30

Shares:
 Basic                        14,297     15,152     14,843     15,065
 Diluted                      14,432     15,444     15,039     15,366

Ratios - GAAP
  Loss & LAE                  113.1%      66.4%      72.3%      63.7%
  Underwriting                 32.8%      26.9%      31.9%      28.9%
    Combined                  145.9%      93.3%     104.2%      92.6%


                                   December 31,  December  31,
                                       1998          1997

Total Investments                  $  489,397    $  452,717
Total Assets                        1,092,943       979,453
Net Reserves for Losses and LAE       285,975       263,106
Total Liabilities                     856,789       725,783
Total Equity                          236,154       253,670
Shares  Outstanding                    14,237        15,191
Book Value per Share               $    16.59    $    16.70