===============================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                FORM 10-QSB/A - 2

(Mark One)

|X|       Quarterly  Report  Pursuant  to  Section 13 or 15(d) of the
          Securities  Exchange Act of 1934 For the  quarterly  period ended June
          30, 2006


|_|       Transition  Report Pursuant to Section 13 or 15(d) of the
          Securities  Exchange  Act of  1934  For  the  transition  period  from
          ___________ to ___________

                        Commission File Number 001-12233
                                  ------------

                                BEXIL CORPORATION
                 (Name of small business issuer in its charter)

                                  ------------
<TABLE>
<CAPTION>
                           <S>                                                          <C>

                         Maryland                                                   13-3907058
                 (State of incorporation)                              (I.R.S. Employer Identification No.)

           11 Hanover Square, New York, New York                                      10005
         (Address of principal executive offices)                                   (Zip Code)

       Registrant's telephone number, including area code: 1-212-785-0400
           Securities registered pursuant to Section 12(b) of the Act:

                    Title of each class                             Name of each exchange on which registered
                    -------------------                             -----------------------------------------
                       Common Stock                                          American Stock Exchange
         Rights to Purchase Series A Participating                           American Stock Exchange
</TABLE>

        Securities registered pursuant to Section 12(g) of the Act: None

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes |X|  No |_|.

The number of shares outstanding of the issuer's classes of common equity, as of
November 14, 2006: Common Stock, par value $.01 per share - 883,592 shares.
================================================================================

                                      (1)

<PAGE>


EXPLANATORY NOTE
Bexil Corporation (the "Company") is filing this amendment no. 2 to its
Quarterly Report on Form 10-QSB for the quarter ended June 30, 2006
("Form 10-QSB/A-2"), to restate the financial results. The restatement includes
adjustments to (a) revise the estimate for income tax expense and (b) to
correct shareholder's equity by reclassifying the special dividend paid during
the quarter as a reduction of retained earnings instead of as a reduction to
additional paid in capital. The Company previously filed its amendment no. 1 to
correct certain errors to its quarterly report filed on August 14, 2006 ("Form
10-QSB/A-1"). The Company is filing this Form 10-QSB/A-2 in order to present
certain additional disclosures regarding income taxes and the reclassification
of the dividend payment; specifically, we have added footnote no. 11 in order to
fully disclose the effects of this change. The information contained in this
Form 10-QSB/A-2, including the financial statements and the notes hereto, amends
Items 1, 2, and 3 of Form 10-QSB/A-1.

These changes impacted previously reported net income, net income per share,
total assets, total liabilities, shareholders' equity, and cash flows. In
accordance with Rule 12b-15 of the Securities and Exchange Act of 1934, the
complete text of those items in which amended language appears is set forth
herein, including those portions of the text that have not been amended from
that set forth in Form 10-QSB/A-1. Accordingly this Form 10-QSB/A-2 should be
read in conjunction with the Company's other filings made with the Securities
and Exchange Commission. Currently dated certifications from the Company's Chief
Executive Officer and Chief Financial Officer have been included as exhibits to
this Form 10-QSB/A-2.

                                      (2)

<PAGE>


INDEX

<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION                                                                         PAGE
                                                                                                      ----

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
------------------------------------------------------------------------------
<S>                                                                                                          <C>
Condensed Balance Sheet at June 30, 2006 (as restated)                                                        3

Condensed Statements of Income                                                                                4
-        Three months ended June 30, 2006 and 2005 (as restated)
-        Six months ended June 30, 2006 and 2005 (as restated)

Condensed Statements of Cash Flows (as restated)
-        Six months ended June 30, 2006 and 2005                                                              5


Notes to Condensed Financial Statements                                                                       6


Item 2. Management's Discussion and Analysis or Plan of Operation                                            17
Item 3. Controls and Procedures                                                                              20
PART II. OTHER INFORMATION
Item 1.  Legal Proceedings                                                                                   21
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                          21
Item 3. Defaults Upon Senior Securities                                                                      21
Item 4. Submission of Matters to a Vote of Security Holders                                                  21
Item 5. Other Information                                                                                    21
Item 6. Exhibits                                                                                             21

CERTIFICATION SIGNATURES                                                                                     23

</TABLE>

                                      (3)

<PAGE>


                                BEXIL CORPORATION
                             CONDENSED BALANCE SHEET
                            (As restated see Note 11)
                                  June 30, 2006
                                   (Unaudited)

------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S>                                                                                                 <C>
ASSETS
Current assets:
    Cash and cash equivalents                                                                   $ 1,426,315
    Investment securities, available-for-sale                                                    47,256,530
    Refundable income taxes                                                                         811,239
                                                                                               ------------
      Total current assets                                                                       49,494,084
                                                                                               ------------
Other assets                                                                                          9,856
                                                                                               ------------
      Total assets                                                                             $ 49,503,940
                                                                                               ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
    Accounts payable and accrued expenses                                                         $ 190,383
    Income taxes payable                                                                         12,098,774
                                                                                               ------------
      Total current liabilities                                                                  12,289,157
                                                                                               ------------
Commitments and contingencies (Note 10)                                                                   -

Shareholders' equity
    Common stock, $0.01 par value, 9,900,000 shares authorized,
      883,592 shares issued and outstanding                                                           8,836
    Series A participating preferred stock, $0.01 par value, 100,000
      shares authorized, -0- shares issued and outstanding                                                -
    Additional paid-in capital                                                                   12,795,628
    Retained earnings                                                                            24,410,319
                                                                                               ------------
      Total shareholders' equity                                                                 37,214,783
                                                                                               ------------
      Total liabilities and shareholders' equity                                               $ 49,503,940
                                                                                               ============

</TABLE>

See notes to the condensed financial statements.

                                      (4)
<PAGE>


                                BEXIL CORPORATION
                         CONDENSED STATEMENTS OF INCOME

------------------------------------------------------------------------------
<TABLE>
<CAPTION>


                                                            THREE MONTHS ENDED                SIX MONTHS ENDED
                                                                 JUNE 30,                          JUNE 30,
                                                         (AS RESTATED SEE NOTE 11)         (AS RESTATED SEE NOTE 11)
                                                           2006             2005             2006             2005
                                                        ---------------------------------------------------------------
                                                        (UNAUDITED)      (UNAUDITED)       (UNAUDITED)      (UNAUDITED)
<S>                                                           <C>               <C>            <C>              <C>
Revenues
    Consulting and other                                      $ 2,000         $ 40,500          $ 5,000         $ 92,500
    Dividends and interest                                    435,827           18,402          571,256           29,623
                                                             --------         --------         --------         --------
                                                              437,827           58,902          576,256          122,123
                                                             --------         --------         --------         --------
Expenses
    Compensation and benefits                                 182,871          135,724          385,563          247,448
    Professional                                               91,125          156,238          302,243          172,738
    General and administrative                                 26,671           46,419           83,058           93,606
                                                             --------         --------         --------         --------
                                                              300,667          338,381          770,864          513,792
                                                             --------         --------         --------         --------
Income (loss) before income taxes and equity
    in earnings (loss) of York Insurance
    Services Group, Inc.                                      137,160         (279,479)        (194,608)        (391,669)

Income tax expense (benefit)                                 (224,781)         (43,362)          48,989          (31,620)

Equity in earnings (loss) of York Insurance
    Services Group, Inc.                                   (1,805,639)         586,043         (733,748)       1,180,462
Gain on sale of York Insurance Services
    Group, Inc., net of taxes                              22,651,249                -       22,651,249                -
                                                           -------------------------------------------------------------
Net income                                               $ 21,207,551        $ 349,926     $ 21,673,904        $ 820,413
                                                           =============================================================
Per share net income:
    Basic                                                     $ 24.00           $ 0.40          $ 24.57           $ 0.93
    Diluted                                                   $ 23.06           $ 0.40          $ 23.49           $ 0.93

Average shares outstanding:
    Basic                                                     883,592          879,591          882,001          879,591
    Diluted                                                   919,848          879,591          922,783          879,591

</TABLE>

See notes to the condensed financial statements.

                                      (5)
<PAGE>

                                BEXIL CORPORATION
                       CONDENSED STATEMENTS OF CASH FLOWS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                            Six Months Ended
                                                                                                June 30,
                                                                                       (As restated see Note 11)
                                                                                        2006              2005
                                                                                    ------------       ------------
CASH FLOWS FROM OPERATING ACTIVITIES                                                 (UNAUDITED)        (UNAUDITED)
<S>                                                                                 <C>                   <C>
    Net income                                                                      $ 21,673,904          $ 820,413

    Adjustments to reconcile net income to net cash
      provided by (used in) operating activities
        Gain on sale of York Insurance Services Group, Inc.                          (35,561,915)                 -
        Equity in loss (earnings) of York Insurance Services Group, Inc.                 733,748         (1,180,462)
        Decrease (increase) in deferred taxes                                          1,102,448            (63,895)
        Non-cash stock compensation                                                       67,145                  -
        Accretion of discount on investment security                                    (377,930)                 -
    Proceeds from sale of York Insurance Services Group, Inc.                         38,864,121                  -
    Bonuses and other net transactions costs paid upon consummation
      of the sale of York Insurance Services Group, Inc.                              (2,170,728)                 -
    Dividend received from York Insurance Services Group, Inc.                                 -          2,500,000
    Increase in refundable income taxes                                                 (811,239)                 -
    Increase in other assets                                                                   -            (35,500)
    (Decrease) increase in accounts payable and accrued expenses                        (376,898)            97,063
    Increase (decrease) in income taxes payable                                       11,870,656             (5,660)
                                                                                     ------------      ------------
      Net cash provided by operating activities                                       35,013,312          2,131,959
                                                                                     ------------      ------------
Cash flows from investing activities
Purchase of investment security                                                      (46,878,600)                 -
                                                                                     ------------      ------------
      Net cash used in investing activities                                          (46,878,600)                 -
                                                                                     ------------      ------------
Cash flows from financing activities
Dividend paid                                                                           (883,592)                 -
Proceeds from exercise of common stock options                                            86,360                  -
                                                                                     ------------      ------------
      Net cash used in financing activities                                             (797,232)                 -
                                                                                     ------------      ------------
      Net (decrease) increase in cash and cash equivalents                           (12,662,520)         2,131,959

Cash and cash equivalents
    Beginning of period                                                               14,088,835          3,601,311
                                                                                     ------------      ------------
    End of period                                                                    $ 1,426,315        $ 5,733,270
                                                                                     ============      ============
Supplemental disclosure:
    Income taxes paid                                                                  $ 797,790                $ -

</TABLE>

See notes to the condensed financial statements.

                                      (6)
<PAGE>


                                BEXIL CORPORATION
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                  June 30, 2006
                                   (Unaudited)
------------------------------------------------------------------------------


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NATURE OF BUSINESS AND ORGANIZATION
Bexil Corporation (the "Company"), a Maryland corporation, is a holding company.
From 2002 until April 28, 2006, our primary holding was a fifty percent interest
in York Insurance Services Group, Inc. ("York"), an insurance services business
process sourcing company. On April 28, 2006, we consummated the sale of our
fifty percent interest in York to a newly formed entity controlled by a private
equity fund and certain other investors for approximately $39 million in cash.
We have 10 employees.

The Company was incorporated in 1996 under the laws of the State of Maryland as
Bull & Bear U.S. Government Securities Fund, Inc., a non-diversified closed-end
management investment company registered under the Investment Company Act of
1940, as amended (the "1940 Act"). In October 1996, the Company's predecessor, a
series of shares of Bull & Bear Funds II, Inc., an open-end management
investment company, transferred its net assets to the Company in exchange for
shares of the Company. The Company changed its name to Bexil Corporation in
1999. In 2002, the Company filed an application with the Securities and Exchange
Commission (the "SEC") to terminate its registration as an investment company
registered under the 1940 Act.

On January 6, 2004, the Company's application with the SEC to terminate its
registration as an investment company was granted. As a result, the Company is
subject to the reporting and other requirements of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), and is no longer subject to regulation
under the 1940 Act. The Company's shares are listed on the American Stock
Exchange.

The information furnished in this report reflects all adjustments which are, in
the opinion of management, necessary to a fair statement of the results of the
period.

BASIS OF PRESENTATION
The financial statements are prepared in accordance with generally accepted
accounting principles in the United States of America, which require the use of
estimates. Actual results may vary from those estimates. Certain comparative
amounts for the prior year have been reclassified to conform to the fiscal year
2006 financial statement presentation. Such reclassifications did not affect
total revenues, operating income or net income.

CASH AND CASH EQUIVALENTS
Investments in money market funds and short-term investments and other
marketable securities maturing in 90 days or less are considered to be cash
equivalents. At June 30, 2006, the Company held approximately $1,300,000 in a
money market fund.

INVESTMENT SECURITIES, AVAILABLE-FOR-SALE
Investment securities, available-for-sale are carried at fair value. Realized
gains and losses are included in investment income based on specific
identification. Unrealized gains and losses are recorded net of tax as part of
accumulated other comprehensive income until realized.

INCOME TAXES
The Company's method of accounting for income taxes conforms to the Financial
Accounting Standards Board ("FASB")'s Statement of Financial Accounting
Standards No. 109, "Accounting for Income Taxes" ("SFAS 109"). This method
requires the recognition of deferred tax assets and liabilities for the expected
future tax consequences of temporary differences between the financial reporting
basis and the tax basis of assets and liabilities.

                                      (7)
<PAGE>


REPORTING SEGMENT
The Company accounts for its operations in accordance with FASB No. 131,
"Disclosures about Segments of an Enterprise and Related Information." No
segment disclosures have been made as the Company considers its business
activities as a single segment.


EARNINGS PER SHARE
Basic earnings per share is computed using the weighted average number of common
shares outstanding during the period. Diluted earnings per share is computed by
applying the treasury stock method where the weighted average number of common
shares outstanding is adjusted for the incremental shares attributed to
potentially dilutive securities including outstanding exercisable options to
purchase common stock during the period. The following table sets forth the
computation of basic and diluted earnings per share:

<TABLE>
<CAPTION>

                                                                         Three Months Ended                  Six Months Ended
                                                                              June 30,                           June 30,
                                                                       2006              2005             2006              2005
                                                                   ----------------------------------------------------------------
<S>                                                                    <C>                <C>              <C>               <C>
Numerator for basic and diluted earnings per share:
Net income                                                         $21,207,551         $ 349,926      $21,673,904         $ 820,413
                                                                   ================================================================
Denominator for basic earnings per share:
Weighted-average shares                                              883,592           879,591          882,001           879,591
Effect of dilutive securities:
Employee stock options                                                  36,256                 -           40,782                 -
                                                                   ----------------------------------------------------------------
Denominator for diluted earnings per share:
Adjusted weighted average shares and
assumed conversion                                                     919,848           879,591          922,783           879,591
                                                                   ================================================================
Per share net income:
Basic                                                                  $ 24.00            $ 0.40          $ 24.57            $ 0.93
Diluted                                                                $ 23.06            $ 0.40          $ 23.49            $ 0.93

</TABLE>

Dilutive securities consisting of stock options were excluded if their effect
was anti-dilutive. There were options to purchase 143,000 shares of common stock
for the three months and six months ended June 30, 2005, respectively, that were
excluded from earnings per share because their effect was anti-dilutive.

2. SALE OF YORK INSURANCE SERVICES GROUP, INC.

On April 27, 2006, the Company's stockholders voted to approve the sale of its
fifty percent interest in York to a newly formed entity controlled by a private
equity fund and certain other investors; the sale was consummated on April 28,
2006. The Company recognized a gain from the sale of $35,561,915 before taxes.
The net gain after taxes of $22,651,249 consists of the cash proceeds paid by
the buyer of $38,864,121 plus a consulting fee and expense reimbursement
received from York of $138,500 less the Company's carrying value in York of
$1,131,478, closing costs of $2,309,228 consisting of employee bonus awards of
$1,909,228, and other costs of $400,000, and income taxes of $12,910,666.

Prior to the sale, the Company's fifty percent interest in York was accounted
for using the equity method and, therefore, York's financial results were not
consolidated with ours. Summarized unaudited condensed financial information for
York for the four month period ended April 30, 2006 and the six months ended
June 30, 2005 is as follows:

                                      (8)
<PAGE>
<TABLE>
<CAPTION>
York Insurance Services Group, Inc.                                 Four Month Period             Six Months
Summarized Condensed Financial Information                                Ended                     Ended
(Unuadited)                                                           April 30, 2006            June 30, 2005
------------------------------------------------------            -----------------------   -----------------------
<S>                                                                         <C>                       <C>
Revenues                                                             $ 30,345,914              $ 34,139,589
Expenses                                                               25,131,225                30,002,810
Net income (loss)                                                      (1,467,496)                2,360,926
Working capital                                                             n/a                  11,512,969
Total assets                                                                n/a                  27,359,677
Total liabilities                                                           n/a                  11,151,779
Shareholder's equity (deficit)                                              n/a                  16,207,898

</TABLE>

3. INCENTIVE COMPENSATION PLAN

In 2004, the Company's shareholders approved the adoption of the 2004 Incentive
Compensation Plan (the "Plan"), which provides for the granting of a maximum of
175,918 options to purchase common stock to directors, officers and key
employees of the Company or its affiliates. The option price per share may not
be less than the fair value of such shares on the date the option is granted,
and the maximum term of an option may not exceed 5 years. The vesting period is
three years of service.

Effective January 1, 2006, the Company adopted Statement of Financial Accounting
Standards ("SFAS") No. 123(R) "Share-Based Payment" and began recognizing
compensation expense for its share-based payments based on the fair value of the
awards. Share-based payments include stock option grants under the Plan. SFAS
123(R) requires share-based compensation expense recognized since January 1,
2006, to be based on the following: a) grant date fair value estimated in
accordance with the original provisions of SFAS 123 for unvested options granted
prior to the adoption date; and b) grant date fair value estimated in accordance
with the provisions of SFAS 123(R) for unvested options granted subsequent to
the adoption date. Prior to January 1, 2006, the Company accounted for
share-based payments using the intrinsic-value-based recognition method
prescribed by Accounting Principles Board Opinion ("APB") No. 25, "Accounting
for Stock Issued to Employees," and SFAS 123, "Accounting for Stock-Based
Compensation." As options were granted at an exercise price equal to the market
value of the underlying common stock on the date of grant, no stock-based
employee compensation cost was reflected in net income prior to adopting SFAS
123(R). As the Company adopted SFAS 123(R) under the
modified-prospective-transition, results from prior periods have not been
restated. The following table illustrates the effect on net income and earnings
per share for the three months and six months ended June 30, 2005 had
compensation expense been recognized based upon the estimated fair value on the
grant date of the awards, in accordance with SFAS 123.

<TABLE>
<CAPTION>
                                                                      Three Months Ended          Six Months Ended
                                                                         June 30, 2005              June 30, 2005
                                                                   -------------------------- --------------------------
<S>                                                                                <C>                        <C>
Net income - as reported                                                           $ 349,926                  $ 820,413

Less total employee stock option expense determined
under fair value method, net of related tax effects                                  (20,749)                   (53,500)

                                                                   -------------------------- --------------------------
Pro forma net income                                                               $ 329,177                  $ 766,913
                                                                   ========================== ==========================

Earnings per share - Basic:
As reported                                                                           $ 0.40                     $ 0.93
Pro forma                                                                             $ 0.37                     $ 0.87

Earnings per share - Diluted:
As reported                                                                           $ 0.40                     $ 0.93
Pro forma                                                                             $ 0.37                     $ 0.87

</TABLE>

                                      (9)

<PAGE>


Under SFAS 123(R) forfeitures are estimated at the time of valuation and reduce
expense ratably over the vesting period. This estimate is adjusted periodically
based on the extent to which actual forfeitures differ, or are expected to
differ, from the previous estimate.

The adoption of SFAS 123(R)'s fair value method has resulted in additional
share-based expense (a component of compensation expenses and taxes) in the
amount of $28,540 and $67,144 related to stock options for the three months and
six months ended June 30, 2006, respectively, than if the Company had continued
to account for share-based compensation under APB 25. For the three months and
six months ended June 30, 2006, this additional share-based compensation lowered
pre-tax earnings by $28,540 and $67,144,respectively, lowered net income by
$15,697 and $36,929, respectively, and lowered basic earnings per share by $0.02
and $0.04, respectively.

The following schedule shows all options granted, exercised, expired and
exchanged under the Company's Stock Option Plan as of December 31, 2005.

Information relating to the options is as follows:

<TABLE>
<CAPTION>
                                                            Shares Under         Weighted Average             Total
                                                               Option             Exercise Price              Price
---------------------------------------------------------------------------------------------------------------------------
<S>                                                               <C>                 <C>                    <C>
Balance, December 31, 2003                                                -                     $ -                    $ -

Granted                                                             147,500                 $ 21.47         $ 3,166,825.00
Forfeited                                                            (4,500)                $ 21.59           $ (97,155.00)
                                                     -----------------------

Balance, December 31, 2004                                          143,000                 $ 21.47         $ 3,070,210.00

Granted                                                               8,000                 $ 21.19           $ 169,520.00
Forfeited                                                            (7,000)                $ 21.59          $ (151,130.00)
                                                     -----------------------

Balance, December 31, 2005                                          144,000                 $ 21.45         $ 3,088,800.00
                                                     =======================

</TABLE>

The Company grants options to purchase common stock to its directors, officers,
and key employees of the Company or its affiliates. The option price per share
may not be less than the fair market value of such shares on the date the option
is granted, and the maximum term of an option may not exceed 5 years. The
vesting period is three years of service. Employees have 3 months after the
employment relationship ends to exercise all vested options. The fair value of
each option grant is separately estimated for each vesting date. The fair value
of each option is amortized into compensation expense on a straight-line basis
between the grant date for the award and each vesting date. The Company has
estimated the fair value of all stock option awards as of the date of the grant
by applying the Black-Scholes option pricing valuation model. The application of
this valuation model involves assumptions that are judgmental and highly
sensitive in the determination of compensation expense. The Company did not
award any options during the six months ended June 30, 2006.

The key assumptions used in determining the fair value of options granted by
applying the Black-Scholes option pricing valuation model in 2005 and a summary
of the methodology applied to develop each assumption are as follows:


Expected price volatility                             49 - 51%
Risk-free interest rate                            4.11 - 4.49%
Weighted average expected lives in years                   5
Forfeiture rate                                            0%
Dividend yield                                             0%

EXPECTED PRICE VOLATILITY - The Company estimates the volatility of its common
stock at the date of grant based solely on the historical volatility of its
common stock. The volatility factor used in the Black-Scholes option valuation
model is based on the Company's historical stock prices over the most recent
period commensurate with the estimated expected life of the award.

                                      (10)

<PAGE>


RISK-FREE INTEREST RATE - This is the U.S Treasury yield in effect at the time
of the grant having a term equal to the expected life of the option. An increase
in the risk-free interest rate will increase compensation expense.

EXPECTED LIVES - This is the period of time over which the options granted are
expected to remain outstanding giving consideration to vesting schedules,
historical exercise and forfeiture patterns. The Company uses the simplified
method outlined in SEC Staff Accounting Bulletin No. 107 to estimate expected
lives for options granted during the period. Options granted have a maximum term
of 5 years. An increase in the expected life will increase compensation expense.

FORFEITURE RATE - This is the estimated percentage of options granted that are
expected to be forfeited or canceled before becoming fully vested. This estimate
is based on historical experience. An increase in the forfeiture rate will
decrease compensation expense.

EXPECTED DIVIDEND YIELD - In 2005 and since the adoption of the Plan the Company
had not paid a dividend and at the time the options were granted did not
anticipate paying a dividend in the foreseeable future, consequently the
dividend yield assumption was zero. However, on December 29, 2005, the Board of
Directors authorized a special dividend of $1.00 per share contingent upon the
closing of the York sale. The sale closed on April 28, 2006, and the dividend
was paid to stockholders on May 31, 2006. The expected dividend yield is based
on the Company's current dividend yield and the best estimate of projected
dividend yields for future periods within the expected life of the option.

The Company generally issues new shares when options are exercised. A summary of
stock option activity since our most recent fiscal year end is as follows:

<TABLE>
<CAPTION>
                                                              SHARES UNDER            WEIGHTED AVERAGE               TOTAL
                                                                 OPTION                EXERCISE PRICE                PRICE
----------------------------------------------------  -----------------------   -----------------------  ------------------------
<S>                                                                 <C>                       <C>                <C>
Balance, December 31, 2005                                           144,000                   $ 21.45            $ 3,088,800.00

Granted                                                                    -                       $ -                       $ -
Exercised                                                             (4,000)                  $ 21.59              $ (86,360.00)
                                                      -----------------------

Balance, June 30, 2006                                               140,000                   $ 21.45            $ 3,003,000.00
                                                      =======================


</TABLE>

The following table summarized information about stock option outstanding as of
June 30, 2006:

<TABLE>
<CAPTION>
                                           WEIGHTED-AVERAGE
                                             REMAINING                                             WEIGHTED-AVERAGE
      RANGE OF             OPTIONS        CONTRACTUAL LIFE     WEIGHTED-AVERAGE      OPTIONS       EXERCISE PRICE OF
   EXERCISE PRICE        OUTSTANDING         (IN YEARS)         EXERCISE PRICE     EXERCISABLE    EXERCISABLE OPTIONS
----------------------------------------------------------------------------------------------------------------------
<S>                             <C>                    <C>               <C>            <C>                   <C>
 $ 16.30 - $ 19.50            28,000                 3.49              $ 17.04        21,000                $ 16.37
 $ 21.59 - $ 24.00           112,000                 2.86              $ 22.55        83,476                $ 22.34
                     ---------------                                            -------------

                             140,000                 2.92              $ 21.45       104,476                $ 21.14
                     ===============                                            =============
</TABLE>


At June 30, 2006, the aggregate intrinsic value of all outstanding options was
$1,879,503 with a weighted average remaining contractual term of 2.92 years. The
total compensation cost related to non-vested awards not yet recognized was
$135,096 with an expense recognition period of 3 years.

On February 21, 2006, pursuant to a Post-Effective Amendment filing to a
registration statement filed on Form S-8 under the Securities Act of 1933, the
Plan was amended to correct a defect in the Plan regarding the circumstances in
which a participant may exercise an option after the date the employment of the
participant is terminated by the Company other than for cause.

                                      (11)
<PAGE>


4. 401(K) PLAN

The Company participates in a 401(k) retirement plan for substantially all of
its qualified employees. The plan is sponsored by an affiliate of the Company,
Winmill & Co. Incorporated ("Winco"). Company matching expense is based upon a
percentage of contributions to the plan by eligible employees and are accrued
and funded on a current basis. Matching expense for the three months ended June
30, 2006 and 2005 was $2,733 and $5,476, respectively. Matching expense for the
six months ended June 30, 2006 and 2005 was $12,782 and $10,952, respectively.

5. INVESTMENT IN SECURITIES

At June 30, 2006, the Company held a U.S.Treasury security classified as
available-for-sale with an amortized cost value of $47,256,530, which
approximated fair value.

6. INCOME TAXES

The income tax provision (benefit) is comprised of the following:

<TABLE>
<CAPTION>
                                                         Three Months Ended                  Six Months Ended
                                                              June 30,                           June 30,
                                                      2006              2005             2006              2005
                                                ------------------------------------------------------------------
<S>                                                   <C>                 <C>             <C>                <C>
Current provision:
    Federal                                      $ 10,500,000               $ -      $ 10,500,000              $ -
    State and local                                 1,049,648            23,275         1,357,207           32,275
                                                ------------------------------------------------------------------
      Total current provision                      11,549,648            23,275        11,857,207           32,275
                                                ------------------------------------------------------------------
Deferred provision (benefit):
    Net operating loss and capital losses           1,136,237          (114,693)        1,102,448         (160,693)
    Equity in earnings of York                              -            48,056                 -           96,798
                                                ------------------------------------------------------------------
      Total deferred provision (benefit)            1,136,237           (66,637)        1,102,448          (63,895)
                                                ------------------------------------------------------------------
Total provision for income taxes                 $ 12,685,885         $ (43,362)     $ 12,959,655        $ (31,620)
                                                ==================================================================
</TABLE>

In 2006, the difference between the U.S. federal statutory income tax rate and
our effective rate is due to non-deductible compensation and state and local
income taxes. In 2005, the difference between the U.S. federal statutory income
tax rate and our effective tax rate was due to the dividends received exclusion
(80%) on the equity in the earnings of York, which was an unconsolidated
affiliate.


                                      (12)

<PAGE>

The estimated effective income tax rates for the three and six months ended June
30, 2006 do not necessarily reflect the anticipated effective income tax rate
for the 2006 year. Throughout the year, the Company will re-evaluate its
estimated annual effective income tax rate and make adjustments as necessary.

The Company utilized net operating loss carryforwards of $2,363,925 to offset
tax expense for the six months ended June 30, 2006.

7. RELATED PARTIES

Certain officers of the Company also serve as officers and/or directors of
Winco, Tuxis Corporation ("Tuxis"), and their affiliates (collectively with
Bexil, the "Affiliates"). At June 30, 2006, Winco's wholly owned subsidiary,
Investor Service Center, Inc., owned 222,644 shares of the Company and 234,665
shares of Tuxis, or 25% and 24%, respectively, of the outstanding common stock.
Winco's wholly owned subsidiary, Midas Management Corporation ("MMC"), acts as
"master" payer of compensation and benefits of Affiliate employees.

Rent expense of jointly used office space and overhead expense for various
jointly used administrative and support functions incurred by Winco are
allocated to the Company and the Affiliates. The Company incurred allocated rent
and overhead costs of $24,999 and $24,000 for the three months ended June 30,
2006 and 2005, respectively, and $49,998 and $48,000 for the six months ended
June 30, 2006 and 2005, respectively.

The Company earned fees of $102,000 and $40,500 from York for consulting
services and for service on York's board of directors for the three months ended
June 30, 2006 and 2005, respectively, and $105,000 and $92,500 for the six
months ended June 30, 2006 and 2005, respectively.

On December 22, 2005, the Company entered into an expense sharing agreement with
York and the other fifty percent stockholder of York for interest and other
expenses related to a bank loan obtained by and for use by York. The expense
sharing agreement had a limited duration of approximately six months and
effectively ended upon the closing of the York sale transaction on April 28,
2006. The loan was for $15,000,000 bearing interest at LIBOR plus 1.5%. The
Company paid 50% of the interest expense and two-thirds of other agreed upon
expenses under the expense sharing agreement. The Company has incurred expenses
of approximately $168,000 and $281,000 related to the expense sharing agreement
for the three months and six months ended June 30, 2006, respectively.

On April 28, 2006, pursuant to the authorization of the Governance,
Compensation, and Nominating Committee of the Board of Directors, the Company
paid employee bonuses of approximately $1.9 million upon the consummation of the
sale of its interest in York.

8. DIVIDEND

On December 29, 2005, the Company's Board of Directors authorized a special
dividend to stockholders of $1.00 per share of the common stock contingent upon
the closing of the sale of the Company's interest in York. The special dividend
of $883,592 was paid on May 31, 2006 to stockholders of record on May 15, 2006.

9. STOCKHOLDER RIGHTS PLAN

The Board of Directors has adopted a stockholder rights plan. To implement the
rights plan, the Board of Directors declared a dividend distribution of one
right for each outstanding share of Bexil common stock, par value $.01 per
share, to holders of record of the shares of common stock at the close of
business on November 21, 2005. Each right entitles the registered holder to
purchase from Bexil one one-thousandth of a share of preferred stock, par value
$.01 per share. The rights were distributed as a non-taxable dividend and will
expire on November 21, 2015. The rights are evidenced by the underlying Bexil
common stock, and no separate preferred stock purchase rights certificates were
distributed. The rights to acquire preferred stock will become exercisable only
if a person or group, other than certain exempt persons, acquires or commences a
tender offer for 10% or more of Bexil's common stock. If a person or group,
other than certain exempt persons, acquires or commences a tender offer for 10%
or more of Bexil's common stock, each holder of a right, except the acquirer,
will be entitled, subject to Bexil's right to redeem or exchange the right, to
exercise, at an exercise price of $67.50, the right for one one-thousandth of a
share of Bexil's newly-created Series A Participating Preferred Stock, or the
number of shares of Bexil common stock equal to the holder's number of rights
multiplied by the exercise price and divided by 50% of the market price of
Bexil's common stock on the date of the occurrence of such an event. Bexil's
Board of Directors may terminate the rights plan at any time or redeem the
rights, for $0.01 per right, at any time before a person acquires 10% or more of
Bexil's common stock.

                                      (13)

<PAGE>


On November 10, 2005, the Board of Directors authorized the reclassification of
100,000 unissued shares of common stock of the Company (from among the
10,000,000 shares of common stock, $0.01 par value, of the Company which are
authorized) into 100,000 shares of Series A Participating Preferred Stock, par
value $0.01 per share, of the Company.

10. COMMITMENTS AND CONTINGENCIES

At June 30, 2006, there were no contingent obligations or events occurring that
could reasonably be expected to have a material adverse impact on the Company's
financial statements.

On January 11, 2006, the staff of the Market Regulation Department of the
National Association of Securities Dealers ("NASD") on behalf of the American
Stock Exchange ("AMEX") commenced a review of trading in the Company's common
stock surrounding the December 27, 2005, announcement that the Company had
entered into an agreement to sell its fifty percent interest in York. In
connection with this review, the NASD requested that the Company provide certain
information regarding the events that preceded the corporate disclosure.
Pursuant to Section 132(e) of the AMEX Company Guide, a listed company is
required to furnish such information, as the AMEX shall reasonably request.
Failure to comply may subject a listed company to suspend dealings in its
securities or removal from listing pursuant to AMEX Company Guide Section 1003.
This inquiry should not be construed as an indication that the NASD has
determined that any violations of AMEX rules or Federal Securities laws have
occurred, or as a reflection upon the merits of the securities involved or upon
any person who effected transactions in such securities. The Company provided
the NASD with all of the information requested on March 29, 2006. The NASD has
not communicated any findings to the Company at this time.

11. RESTATEMENT

The Company has restated its financial statements for the three and six months
ended June 30, 2006, to correct the following errors in the financial statements
previously filed:

As filed in Form 10-QSB/A-1, the Company (a) used an effective income tax rate
to record income taxes that did not reflect known state allocation rates and (b)
recorded the payment of the special dividend as a decrease to additional paid in
capital instead of a decrease to retained earnings in shareholders' equity.

The net effect of the correction of these errors was to:

Increase the Company's reported net income by $2,963,352 for the three and six
months ended June 30, 2006, to $21,207,551 and $21,673,904, respectively.

Decrease the Company's reported income tax expense by $2,963,352 for the three
and six months ended June 30, 2006, to $12,685,885 and $12,959,655,
respectively.

Increase the Company's reported gain on the sale of York, net of taxes by
$3,092,196 to $22,651,249 for the three and six months ended June 30, 2006,
respectively.

                                      (14)

<PAGE>


Increase the Company's reported basic and diluted net income per share to $24.00
and $23.06, respectively, from $20.65 and $19.83, respectively, for the three
months ended June 30, 2006.

Increase the Company's reported basic and diluted net income per share to $24.57
and $23.49, respectively, from $21.21 and $20.28, respectively, for the six
months ended June 30, 2006.

Increase the Company's reported current assets by $811,239 to $49,494,084 at
June 30, 2006, to record a refund receivable for state and local income taxes
paid in 2005.

Decrease the Company's reported income taxes payable by $2,152,113 to
$12,098,774 at June 30, 2006.

Increase the Company's reported additional paid in capital by $883,592 to
$12,795,628 to reclassify the special dividend paid on May 31, 2006, to retained
earnings at June 30, 2006.

Increase the Company's reported retained earnings by $2,079,760 to $24,410,319
at June 30, 2006, which was comprised of the increase to reported net income of
$2,963,352 less the special dividend paid on May 31, 2006 of $883,592 that was
reclassified from additional paid in capital in shareholders equity.

The correction of the errors on the Company's reported Condensed Statements of
Cash Flows (unaudited) for the six months ended June 30, 2006, did not affect
the total cash flows from operating, financing, and investing activities, but
did effect individual components of the cash flows from operating activities.

Following are reconciliations of the Company's restatements of the Condensed
Balance Sheet (unaudited) at June 30, 2006, the Condensed Statements of Income
(unaudited) for the three and six months ended June 30, 2006, and the Condensed
Statements of Cash Flows (unaudited) for the six months ended June 30, 2006,
from amounts previously reported:

<TABLE>
<CAPTION>
Condensed Balance Sheet (unaudited)
                                                                    June 30, 2006       June 30, 2006
ASSETS                                                              (As Restated)        (As Reported)
                                                                 ------------------- --------------------
<S>                                                                        <C>                   <C>
Current assets:
    Cash and cash equivalents                                           $ 1,426,315          $ 1,426,315
    Investment securities, available-for-sale                            47,256,530           47,256,530
    Refundable income taxes                                                 811,239                    -
                                                                 ------------------- --------------------

      Total current assets                                               49,494,084           48,682,845
                                                                 ------------------- --------------------

Other assets                                                                  9,856                9,856
                                                                 ------------------- --------------------

      Total assets                                                     $ 49,503,940         $ 48,692,701
                                                                 =================== ====================

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
    Accounts payable and accrued expenses                                 $ 190,383            $ 190,383
    Income taxes payable                                                 12,098,774           14,250,887
                                                                 ------------------- --------------------

      Total current liabilities                                          12,289,157           14,441,270
                                                                 ------------------- --------------------

Commitments and contingencies (Note 10)                                           -                    -

Shareholders' equity
    Common stock, $0.01 par value, 9,900,000 shares authorized,
      883,592 shares issued and outstanding                                   8,836                8,836
    Series A participating preferred stock, $0.01 par value, 100,000
      shares authorized, -0- shares issued and outstanding                        -                    -
    Additional paid-in capital                                           12,795,628           11,912,036
    Retained earnings                                                    24,410,319           22,330,559
                                                                 ------------------- --------------------

      Total shareholders' equity                                         37,214,783           34,251,431
                                                                 ------------------- --------------------

      Total liabilities and shareholders' equity                       $ 49,503,940         $ 48,692,701
                                                                 =================== ====================

</TABLE>

                                      (15)
<PAGE>

<TABLE>
<CAPTION>
Condensed Statements of Income (unaudited)
                                                                Three Months Ended               Six Months Ended
                                                                  June 30, 2006                    June 30, 2006
                                                         (As Restated)    (As Reported)     (As Restated)    (As Reported)
                                                      -------------------------------------------------------------------
<S>                                                       <C>                <C>               <C>               <C>
Revenues
    Consulting and other                                      $ 2,000          $ 2,000          $ 5,000          $ 5,000
    Dividends and interest                                    435,827          435,827          571,256          571,256
                                                      -------------------------------------------------------------------
                                                              437,827          437,827          576,256          576,256
                                                      -------------------------------------------------------------------
Expenses
    Compensation and benefits                                 182,871          182,871          385,563          385,563
    Professional                                               91,125           91,125          302,243          302,243
    General and administrative                                 26,671           26,671           83,058           83,058
                                                      -------------------------------------------------------------------
                                                              300,667          300,667          770,864          770,864
                                                      -------------------------------------------------------------------
Income (loss) before income taxes and
    equity in loss of York Insurance
    Services Group, Inc.                                      137,160          137,160         (194,608)        (194,608)

Income tax expense (benefit)                                 (224,781)        (353,625)          48,989          (79,855)

Equity in loss of York Insurance
    Services Group, Inc.                                   (1,805,639)      (1,805,639)        (733,748)        (733,748)
Gain on sale of York Insurance Services
    Group, Inc., net of taxes                              22,651,249       19,559,053       22,651,249       19,559,053
                                                      -------------------------------------------------------------------
Net income                                               $ 21,207,551     $ 18,244,199     $ 21,673,904     $ 18,710,552
                                                      ===================================================================
Per share net income:
    Basic                                                     $ 24.00          $ 20.65          $ 24.57          $ 21.21
    Diluted                                                   $ 23.06          $ 19.83          $ 23.49          $ 20.28

Average shares outstanding:
    Basic                                                     883,592          883,592          882,001          882,001
    Diluted                                                   919,848          919,848          922,783          922,783

</TABLE>

                                      (16)

<PAGE>
<TABLE>
<CAPTION>
Condensed Statements of Cash Flows (unaudited)
                                                                               Six Months Ended
                                                                                June 30, 2006
                                                                        (As Restated)     (As Reported)
Cash flows from operating activities                                    -------------------------------
<S>                                                                     <C>               <C>
    Net income                                                          $ 21,673,904      $ 18,710,552

    Adjustments to reconcile net income to net cash
      provided by (used in) operating activities
        Gain on sale of York Insurance Services Group, Inc.              (35,561,915)      (35,561,915)
        Equity in loss of York Insurance Services Group, Inc.                733,748           733,748
        Decrease in deferred taxes                                         1,102,448         1,102,448
        Non-cash stock compensation                                           67,145            67,145
        Accretion of discount on investment security                        (377,930)         (377,930)
    Proceeds from sale of York Insurance Services Group, Inc.             38,864,121        38,864,121
    Bonuses and other net transactions costs paid upon consummation
      of the sale of York Insurance Services Group, Inc.                  (2,170,728)       (2,170,728)
    Increase in refundable income taxes                                     (811,239)                -
    Decrease in accounts payable and accrued expenses                       (376,898)         (376,898)
    Increase in income taxes payable                                      11,870,656        14,022,769
                                                                        -------------------------------
      Net cash provided by operating activities                           35,013,312        35,013,312
                                                                        -------------------------------
Cash flows from investing activities
Purchase of investment security                                          (46,878,600)      (46,878,600)
                                                                        -------------------------------
      Net cash used in investing activities                              (46,878,600)      (46,878,600)
                                                                        -------------------------------
Cash flows from financing activities
Dividend paid                                                               (883,592)         (883,592)
Proceeds from exercise of common stock options                                86,360            86,360
                                                                        -------------------------------
      Net cash used in financing activities                                 (797,232)         (797,232)
                                                                        -------------------------------
      Net decrease in cash and cash equivalents                          (12,662,520)      (12,662,520)

Cash and cash equivalents
    Beginning of period                                                   14,088,835        14,088,835
                                                                        -------------------------------
    End of period                                                        $ 1,426,315       $ 1,426,315
                                                                        ===============================
Supplemental disclosure:
    Income taxes paid                                                      $ 797,790         $ 797,790

</TABLE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS

FORWARD LOOKING INFORMATION

Information or statements provided by or on behalf of the Company from time to
time, including those within this Form 10-QSB/A-2, may contain certain
"forward-looking information," including information relating to anticipated
growth in revenues or earnings per share, anticipated changes in the amount and
composition of assets under management, anticipated expense levels, and
expectations regarding financial market conditions. The Company cautions readers
that any forward-looking information provided by or on behalf of the Company is
not a guarantee of future performance and that actual results may differ
materially from those in forward-looking information as a result of various
factors, including, but not limited to, those discussed below. Further, such
forward-looking statements speak only as of the date on which such statements
are made, and the Company undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date on which such
statement is made or to reflect the occurrence of unanticipated events.

Certain written and oral statements made or incorporated by reference from time
to time by the Company in this report, other reports, filings with the SEC,
press releases, conferences, or otherwise, contain "forward- looking
information" and are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
include, without limitation, any statement that may predict, forecast, indicate
or imply future results, performance or achievements. Forward-looking statements
may be identified, without limitation, by the use of such words as
"anticipates," "estimates," "expects," "intends," "plans," "predicts,"
"projects," "believes," or words or phrases of similar meaning. Forward-looking
statements include risks and uncertainties, which could cause actual results or
outcomes to differ materially from those expressed in the forward-looking
statements. In addition to other factors and matters discussed elsewhere herein,
some of the important facts that could cause actual results to differ materially
from those discussed in the forward-looking statements include the following: No
businesses to acquire or develop have been identified by the Company at this
time. We have no plans to dissolve and liquidate the Company. The Company cannot
predict what changes to its present business or operations would result from the
sale of the York shares. We may decide to use most of the proceeds from the sale
to start up and develop a business or to explore other alternatives, such as an
acquisition of or business combination with, another entity or entities. At this
time our Board of Directors has not made any decision to pursue any of these
options. The risks included above are not exhaustive.

                                      (17)

<PAGE>


Other sections of this report may include reference to the additional factors,
which could adversely impact the Company's business and financial performance.
Moreover, the Company operates in a very competitive and rapidly changing
environment. New risk factors emerge from time to time, and it is not possible
for management to predict all such risk factors, nor can it assess the impact of
known risk factors on the Company business or the extent to which any factor or
combination of factors may cause actual results to differ materially from those
contained in any forward-looking statement. The Company undertakes no obligation
to revise or publicly release the results of any revisions to forward-looking
statements or to identify any new risk factors, which may arise. Given these
risks and uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual future results.

Investors should also be aware that while the Company does, from time to time,
communicate with securities analysts, it is against the Company's policy to
disclose to them any material, non-public information. Accordingly, investors
should not assume that the Company agrees with any statement or report issued by
any analyst irrespective of the content of the statement or report. Furthermore,
the Company has a policy against issuing or confirming financial forecasts or
projections issued by others. Thus, to the extent that the reports issued by
securities analysts contain any projections, forecasts, or opinions, such
reports are not the responsibility of the Company.

OVERVIEW

Bexil Corporation, a Maryland corporation (the "Company"), is a holding company.
We have 10 employees, none of whom are full time.

The Company was incorporated in 1996 under the laws of the State of Maryland as
Bull & Bear U.S. Government Securities Fund, Inc., a non-diversified closed-end
management investment company registered under the Investment Company Act of
1940, as amended (the "1940 Act"). In October 1996, the Company's predecessor, a
series of shares of Bull & Bear Funds II, Inc., an open-end management
investment company, transferred its net assets to the Company in exchange for
shares of the Company. The Company changed its name to Bexil Corporation in
1999. In 2002, the Company filed an application with the Securities and Exchange
Commission (the "SEC") to terminate its registration as an investment company
registered under the 1940 Act.

On January 6, 2004, the Company's application with the SEC to terminate its
registration as an investment company was granted. As a result, the Company is
subject to the reporting and other requirements of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), and is no longer subject to regulation
under the 1940 Act. The Company's shares are listed on the American Stock
Exchange.

From 2002 until April 28, 2006, Bexil's primary holding was its fifty percent
interest in privately held York Insurance Services Group, Inc. ("York"). York is
an insurance services business process outsourcing company. Since the 1930's,
York (through predecessor companies) has served as both an independent
adjustment company and third party administrator providing comprehensive claims,
data, and risk related services to insurance companies, self-insureds, and
intermediaries throughout the United States. York's business units include the
program management, licensed private investigation, recovery, environmental
consulting, retail logistics and large/complex loss adjusting.

                                      (18)

<PAGE>


The Company's fifty percent interest in York was accounted for using the equity
method and, therefore, York's financial results were not consolidated with ours.

On April 28, 2006, the Company consummated the sale of its fifty percent
interest in York to a newly formed entity controlled by a private equity fund
and certain other investors for approximately $39 million in cash and realized a
gain before income taxes of approximately $36 million.

         OPERATIONS AFTER THE SALE OF YORK SHARES

The Company is seeking to acquire and/or develop one or more businesses. There
are no limits on the types of businesses or fields in which the Company may
devote its assets. No businesses to acquire or develop have been identified by
the Company at this time. We have no plans to dissolve and liquidate the
Company. We may decide to use most of the proceeds from the sale to start up and
develop a business or to explore other alternatives, such as an acquisition of
or business combination with, another entity or entities. At this time our Board
of Directors has not made any decision to pursue any of these options.

         LIQUIDITY AND CAPITAL RESOURCES

At June 30, 2006, the Company had positive working capital of $37,204,927, total
assets of $49,503,904, no long-term debt, and shareholders' equity of
$37,214,783.

Management knows of no contingencies that are reasonably likely to result in a
material decrease in the Company's liquidity or that are likely to materially
adversely affect the Company's capital resources.

         RESULTS OF OPERATIONS

REVENUE. Revenue increased approximately $379,000 and $454,000 for the three
months and six months ended June 30, 2006, respectively, compared to 2005 mainly
due to an increase in dividend and interest income. Cash balances increased over
the same period due to the proceeds from the sale of York on April 28, 2006 and
to dividends received from York in 2005.

EXPENSES. Total expenses decreased approximately $38,000 and increased
approximately $257,000 for the three months and six months ended June 30, 2006,
respectively, compared to 2005.

Compensation and benefits increased approximately $47,000 and $138,000 for the
three months and six months ended June 30, 2006, respectively, compared to 2005.
The Company recognized approximately $29,000 and $67,000 in compensation expense
for unvested stock options due to the adoption of SFAS 123(R) for the three
months and six months ended June 30, 2006, respectively. Compensation also
increased due to an increase in jointly used administrative and support
functions incurred by Winco and allocated to the Company.

Professional expenses decreased approximately $65,000 for the three months ended
June 30, 2006, compared to 2005. In 2005, the Company's auditing fees increased
due to a change in auditors in the second quarter. Professional expenses
increased approximately $130,000 for the six months ended June 30, 2006,
compared to 2005. This was due to an increase in audit, legal, and the York
expense sharing agreement leading up to the sale of York.

YORK. The Company recognized a loss in the earnings of York of approximately
$1,806,000 and $734,000 for the three months and six months ended June 30, 2006,
respectively. This was attributable to expenses incurred by York leading up to
the sale transaction. The Company consummated the sale of its fifty percent
interest in York in April 2006 and realized a net after-tax gain of
approximately $23,000,000. The net after-tax gain consisted of proceeds of
approximately $39,000,000 less the Company's carrying value in York of
approximately $1,100,000, closing costs including employee bonus awards of
approximately $2,200,000, and income taxes of approximately $13,000,000.

                                      (19)

<PAGE>


Net income was $21,673,904 or $23.49 per share on a diluted basis for the six
months ended June 30, 2006 compared to net income of $820,413 or $0.93 per share
on a diluted basis for the six months ended June 30, 2005.

ITEM 3.  CONTROLS AND PROCEDURES

         DISCLOSURE CONTROLS AND PROCEDURES

The Company maintains disclosure controls and procedures that are designed to
ensure that information required to be disclosed in the Company's reports filed
under the Securities Exchange Act of 1934 is recorded, processed, summarized and
reported within the time periods specified in the SEC's rules and forms, and
that such information is accumulated and communicated to the Company's
management, including its President and Chief Executive Officer and Principal
Financial Officer, or persons performing similar functions, as appropriate, to
allow timely decisions regarding required disclosure. Management necessarily
applied its judgment in assessing the costs and benefits of such controls and
procedures, which, by their nature, can provide only reasonable assurance
regarding management's control objectives. The Company has carried out an
evaluation, under the supervision and with the participation of the Company's
management, including the Company's President and Chief Executive Officer along
with the Company's Principal Financial Officer, of the effectiveness of the
design and operation of the Company's disclosure controls and procedures
pursuant to Exchange Act Rule 13a-15(b). Based on that evaluation, management,
including the Company's President and Chief Executive Officer along with the
Company's Principal Financial Officer, concluded that the Company's disclosure
controls and procedures were effective as of June 30, 2006

However, on August 14, 2006, the Company inadvertently filed its Quarterly
Report on Form 10-QSB for the quarter ended June 30, 2006 (the "Report") before
all pending edits and reviews were completed. Because the edits and review
procedures had not been completed and further changes in the financial
statements were necessitated because of such reviews, the Company's Chief
Financial Officer determined that the Company's financial statements for the
quarter ended June 30, 2006 as filed should not be relied upon. On August 16,
2006, Form 10-QSB/A-1 was filed to correct certain errors in the Quarterly
Report on Form 10-QSB which was filed on August 14, 2006. The circumstances
surrounding the inadvertent filing and a description of the edits which had not
been completed are described in the Company's Current Report on Form 8-K dated
August 16, 2006, which was filed with the SEC on the same date.

Additionally, in light of the restatement on Form 10-QSB/A-2 of the Company's
financial statements on Form 10-QSB/A-1, management determined that deficiencies
within its disclosure controls and procedures including internal control over
financial reporting existed that related to the following (1) the controls over
estimating income taxes through the application of SFAS 109 as disclosed in Note
6 to the unaudited financial statements on Form 10-QSB/A-1 for the quarter ended
June 30, 2006 did not operate effectively, and (2) the classification error of
recording the dividend payment as a reduction of additional paid in capital
instead of a reduction of retained earnings.

          CHANGES IN INTERNAL CONTROLS

The Company has adopted the following administrative procedural control to help
preclude repetition of the error that occurred on August 14, 2006, with respect
to the inadvertent SEC filing. As such, no SEC filings by the Company shall be
transmitted until the staff person EDGARizing the document has 1) obtained the
signed and dated authorization from the Company's Controller that the EDGAR
document has been reviewed and agrees to the source document, and 2) obtained
the signed and dated authorization to file the EDGAR document from either the
Chief Executive Officer or the Chief Financial Officer of the Company, or their
delegatee. In response to the events giving rise to the Form 10-QSB/A-2 filing,
the Company has recommended that its accounting and financial reporting team
increase its knowledge of the application of SFAS 109 through continuing
education. The Company will also consider the cost and benefits of outsourcing
its application of SFAS 109 to a third party, if practicable.

                                      (20)

<PAGE>


There has been no change, other than those noted above, during the Company's
fiscal quarter ended June 30, 2006, in the Company's internal control over
financial reporting that has materially affected, or is reasonably likely to
materially affect, the Company's internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF  PROCEEDS

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

During the second quarter of the 2006 fiscal year, a Special Meeting of
Stockholders (the "Special Meeting") of the Company was held on April 27, 2006
for the following purposes: 1) to authorize and approve the sale of all 500
shares of York Insurance Services Group, Inc. common stock owned by the Company
to York Insurance Acquisition, Inc. for approximately $38,864,000, pursuant to
the Stock Purchase Agreement, dated as of December 23, 2005, by and among the
Company, York Insurance Holdings, Inc. and York Insurance Acquisition, Inc.; and
2) to consider and vote upon the adjournment of the Special Meeting to a later
date, if necessary, to solicit additional proxies in the event that there are
insufficient shares present in person or by proxy voting in favor of proposal
one.

With regard to the proposal to authorize and approve the sale of all 500 shares
of York Insurance Services Group, Inc. common stock owned by the Company to York
Insurance Acquisition, Inc. for approximately $38,864,000, pursuant to the Stock
Purchase Agreement, dated as of December 23, 2005, by and among the Company,
York Insurance Holdings, Inc. and York Insurance Acquisition, Inc., 455,402
shares were voted in favor of the proposal, 131,315 shares were voted against,
and 5,291 shares were voted to abstain.

With regard to the proposal to consider and vote upon the adjournment of the
Special Meeting to a later date, if necessary, to solicit additional proxies in
the event that there are insufficient shares present in person or by proxy
voting in favor of proposal one, 430,985 shares were voted in favor of the
proposal, 99,584 shares were voted against, and 61,439 shares were voted to
abstain.

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

1.       Current Report on Form 8-K dated April 3, 2006 containing the press
         release disclosing the Company's operating results for the year ended
         December 31, 2005.
2.       Current Report on Form 8-K dated April 28, 2006 containing the press
         release disclosing the consummation of the sale of the Company's fifty
         percent interest in York Insurance Services Group, Inc. and the payment
         of a special dividend.
3.       Current Report on Form 8-K dated May 2, 2006 containing the press
         release disclosing the Company's acquisition parameters. 4. Current
         report on Form 8-K dated May 17, 2006 containing the press release
         disclosing the Company's operating results for
         the first quarter ended March 31, 2006.

                                      (21)

<PAGE>


                                   SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Company has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                BEXIL CORPORATION

Dated: November 14, 2006                            By :   /s/Thomas O'Malley
                                                           ------------------
                                                              Thomas O'Malley
                                                     Chief Financial Officer,
                                                     Chief Accounting Officer

                                      (22)

<PAGE>


              CERTIFICATION - EXCHANGE ACT RULES 13A-14 AND 15D-14

I, Thomas B. Winmill, certify that:


1. I have reviewed this quarterly report on Form 10-QSB/A of Bexil Corporation
("small business issuer");

2. Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the periods covered by this report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
small business issuer as of, and for, the periods presented in this report;

4. The small business issuer's other certifying officer and I are responsible
for establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and
have:

a) Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that
material information relating to the small business issuer, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;

b) [omitted in accordance with SEC Release Nos. 33-8238 and 34-47986];

c) Evaluated the effectiveness of the small business issuer's disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the small business issuer's internal
control over financial reporting that occurred during the small business
issuer's most recent fiscal quarter (the small business issuer's fourth fiscal
quarter in the case of an annual report) that has materially affected, or is
reasonably likely to materially affect, the small business issuer's internal
control over financial reporting; and

5. The small business issuer's other certifying officers and I have disclosed,
based on our most recent evaluation of internal control over financial
reporting, to the small business issuer's auditors and the audit committee of
the small business issuer's board of directors (or persons performing the
equivalent functions):

a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the small business issuer's ability to record,
process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the small business issuer's internal
control over financial reporting.

Date: November 14, 2006
/s/ Thomas B. Winmill
Chief Executive Officer

                                      (23)

<PAGE>


              CERTIFICATION - EXCHANGE ACT RULES 13A-14 AND 15D-14

I, Thomas O'Malley, certify that:

1. I have reviewed this quarterly report on Form 10-QSB/A of Bexil Corporation
("small business issuer");

2. Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the periods covered by this report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
small business issuer as of, and for, the periods presented in this report;

4. The small business issuer's other certifying officer and I are responsible
for establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and
have:

a) Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that
material information relating to the small business issuer, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;

b) [omitted in accordance with SEC Release Nos. 33-8238 and 34-47986];

c) Evaluated the effectiveness of the small business issuer's disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the small business issuer's internal
control over financial reporting that occurred during the small business
issuer's most recent fiscal quarter (the small business issuer's fourth fiscal
quarter in the case of an annual report) that has materially affected, or is
reasonably likely to materially affect, the small business issuer's internal
control over financial reporting; and

5. The small business issuer's other certifying officers and I have disclosed,
based on our most recent evaluation of internal control over financial
reporting, to the small business issuer's auditors and the audit committee of
the small business issuer's board of directors (or persons performing the
equivalent functions):

a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the small business issuer's ability to record,
process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the small business issuer's internal
control over financial reporting.

Date: November 14, 2006
/s/ Thomas O'Malley
Chief Financial Officer

                                      (24)

<PAGE>


                          CEO CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350,
                       AS ADOPTED PURSUANT TO SECTION 906
                        OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of Bexil Corporation on Form 10-QSB/A
for the period ended June 30, 2006 as filed with the Securities and Exchange
Commission on the date hereof (the "Report"), I, Thomas B. Winmill, Chief
Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the Company.

/s/ Thomas B. Winmill
Thomas B. Winmill
Chief Executive Officer
November 14, 2006

                                      (25)

<PAGE>


                          CFO CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350,
                       AS ADOPTED PURSUANT TO SECTION 906
                        OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Bexil Corporation on Form 10-QSB/A
for the period ended June 30, 2006 as filed with the Securities and Exchange
Commission on the date hereof (the "Report"), I, Thomas O'Malley, Chief
Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the Company.



/s/Thomas O'Malley
Thomas O'Malley
Chief Financial Officer
November 14, 2006

                                      (26)

<PAGE>