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, Section 17(a) of the Public Utility Holding Company Act of 1935 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 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] (Last) (First) (Middle) CEDAR HOUSE, 41 CEDAR AVE 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 Original Filed(Month/Day/Year) (Street) HAMILTON HM12, D0  6. Individual or Joint/Group Filing(Check Applicable Line) ___ Form filed by One Reporting Person _X_ Form filed by More than One Reporting Person (City) (State) (Zip) 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)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.			SEC 1473 (7-02)
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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 of Derivative Security: 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

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
INSURANCE PARTNERS OFFSHORE LP CEDAR HOUSE 41 CEDAR AVE HAMILTON HM12, D0Â	Â	Â	Â	See Remarks
INSURANCE GENPAR LP / BERMUDA CEDAR HOUSE 41 CEDAR AVE HAMILTON HM12, D0Â	Â	Â	Â	See Remarks
INSURANCE GENPAR MGP LP / BERMUDA CEDAR HOUSE 41 CEDAR AVE HAMILTON HM12, D0Â	Â	Â	Â	See Remarks
INSURANCE GENPAR MGP LTD /BERMUDA CEDAR HOUSE 41 CEDAR AVE HAMILTON HM12, D0Â	Â	Â	Â	See Remarks

Signatures

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

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 5(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(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

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