FORM 10-Q

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

The registrant meets the conditions set forth in General Instruction H(1)(a) and
(b) of Form 10-Q and is therefore  filing this Form with the reduced  disclosure
format.

          [x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                 For the quarterly period ended: September 30, 2000

                                       OR

          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


Commission file number: 33-47245
                        33-65355



                   ALLSTATE  LIFE  INSURANCE  COMPANY OF NEW YORK
             (Exact name of registrant as specified in its charter)


      NEW YORK                                        35-2608394
(State or other jurisdiction of                    (I.R.S. Employer
incorporation or organization)                      Identification No.)

                                One Allstate Drive
                             Farmingville, New York  11738
               (Address of principal executive offices)(Zip Code)

                                  800/256-9392
              (Registrant's telephone number, including area code)

                                 Not Applicable
              (Former name, former address and former fiscal year,
                          if changed since last report)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 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


     Indicate the number of shares of each of the issuer's classes of common
stock, as of September 30, 2000; there were 100,000 shares of common capital
stock outstanding, par value $25 per share all of which shares are held by
Allstate Life Insurance Company.

<PAGE>


                         PART I - FINANCIAL INFORMATION


Item  1.   FINANCIAL STATEMENTS

          Statements of Operations
          Three Months Ended September 30, 2000 and
          September 30, 1999 (Unaudited)
          Nine Months Ended September  30,  2000 and
          September 30, 1999 (Unaudited).................................... 3

          Statements of Financial  Position
          September 30,  2000 (Unaudited)
          and December 31, 1999............................................. 4

          Statements  of Cash Flows
          Nine Months  Ended September 30, 2000 and September 30,
          1999 (Unaudited)..................................................

          Notes to Financial Statements..................................... 6

Item  2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
           FINANCIAL CONDITION AND RESULTS OF OPERATIONS.................... 10

Item  3.   QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT
              MARKET RISK*..................................................N/A


                           PART II - OTHER INFORMATION


Item 1.   LEGAL PROCEEDINGS..................................................18

Item 2.   CHANGES IN SECURITIES AND USE OF PROCEEDS*........................N/A

Item 3.   DEFAULTS UPON SENIOR SECURITIES*..................................N/A

Item 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS*..............N/A

Item 5.   OTHER INFORMATION..................................................18

Item 6.   EXHIBITS AND REPORTS ON FORM 8-K...................................18

SIGNATURE PAGE...............................................................19





*Omitted pursuant to General Instruction H(2) of Form 10-Q.

                                      -2-
<PAGE>
                          PART I. FINANCIAL INFORMATION
                          ITEM 1. FINANCIAL STATEMENTS
                   ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                            STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>

                                                                  Three Months Ended                        Nine Months Ended
                                                                    September 30,                              September 30
                                                         -----------------------------------    ---------------------------------
                                                         -----------------------------------    ---------------------------------
($ in thousands)                                               2000                1999            2000                1999
                                                         ------------------  ---------------    -------------   -----------------
                                                                     (Unaudited)                               (Unaudited)
<S>                                                            <C>                <C>              <C>                 <C>
Revenues
Premiums                                                     $   25,321           $ 16,835         $ 67,753            $ 48,400
Contract charges                                                 10,410              9,607           31,550              28,627
Net investment income                                            45,201             37,771          129,691             109,778
Realized capital gains and losses                                   387               (812)          (2,524)             (1,560)
                                                             ----------           --------         --------            --------
                                                                 81,319             63,401          226,470             185,245
                                                             ----------           --------         --------            --------

Costs and expenses
Contract benefits                                                57,321             47,347          162,521             133,560
Amortization of deferred policy acquisition costs                 4,585              2,352           10,060               7,178
Operating costs and expenses                                      6,417              5,068           17,223              16,410
                                                             ----------           --------         --------            --------
                                                                 68,323             54,767          189,804             157,148
                                                             ----------           --------         --------            --------

Income from operations
   before income tax expense                                     12,996              8,634           36,666              28,097
Income tax expense                                                4,698              3,071           12,528               9,984
                                                             ----------            -------         --------            --------

Net income                                                   $    8,298            $ 5,563         $ 24,138            $ 18,113
                                                             ==========            =======         ========            ========

</TABLE>






                       See notes to financial statements.


                                        3
<PAGE>
                               ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                                     STATEMENTS OF FINANCIAL POSITION

<TABLE>
<CAPTION>

                                                                     September 30,          December 31,
                                                                          2000                  1999
                                                                    -----------------     -----------------
                                                                    -----------------     -----------------
                                                                      (Unaudited)
($ in thousands, except par value data)
<S>                                                                          <C>                   <C>
Assets
Investments
   Fixed income securities, at fair value
      (amortized cost $2,149,376 and $1,858,216)                         $ 2,266,596           $ 1,912,545
   Mortgage loans                                                            196,675               166,997
   Policy loans                                                               31,605                31,109
   Short-term                                                                100,819                46,037
                                                                         -----------            ----------
         Total investments                                                 2,595,695             2,156,688

Cash                                                                           5,904                 1,135
Deferred policy acquisition costs                                            127,183               106,932
Accrued investment income                                                     26,582                25,712
Reinsurance recoverables, net                                                  1,199                 1,949
Other assets                                                                   8,137                 7,803
Separate Accounts                                                            556,048               443,705
                                                                         -----------           -----------
         Total assets                                                    $ 3,320,748           $ 2,743,924
                                                                         ===========           ===========

Liabilities
Reserve for life-contingent contract benefits                            $ 1,211,789           $ 1,098,016
Contractholder funds                                                       1,060,777               839,157
Current income taxes payable                                                  18,134                10,132
Deferred income taxes                                                         13,838                 3,077
Other liabilities and accrued expenses                                       117,923                41,218
Payable to affiliates, net                                                     1,248                 4,731
Separate Accounts                                                            556,048               443,705
                                                                         -----------           -----------
         Total liabilities                                                 2,979,757             2,440,036
                                                                         -----------           -----------

Commitments and Contingent Liabilities (Note 3)

Shareholder's equity
Common stock, $25 par value, 100,000 shares
      authorized, issued and outstanding                                       2,500                 2,500
Additional capital paid-in                                                    45,787                45,787
Retained income                                                              249,505               225,367
Accumulated other comprehensive income:
    Unrealized net capital gains                                              43,199                30,234
                                                                         -----------           -----------
         Total accumulated other comprehensive income                         43,199                30,234
                                                                         -----------           -----------
         Total shareholder's equity                                          340,991               303,888
                                                                         -----------           -----------
         Total liabilities and shareholder's equity                      $ 3,320,748           $ 2,743,924
                                                                         ===========           ===========
</TABLE>

                       See notes to financial statements.

                                        4

<PAGE>
                             ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                                      STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>


                                                                         Nine Months Ended
                                                                           September 30,
                                                              ----------------------------------------
                                                              ----------------------------------------
($ in thousands)                                                    2000                  1999
                                                              ------------------    ------------------
                                                              ----------------------------------------
                                                                            (Unaudited)
<S>                                                                    <C>                   <C>
Cash flows from operating activities
Net income                                                           $   24,138            $   18,113
Adjustments to reconcile net income to net cash
    provided by operating activities:
       Amortization and other non-cash items                            (32,119)              (28,229)
       Realized capital gains and losses                                  2,524                 1,560
       Interest credited to contractholder funds                         35,897                22,805
       Changes in:
           Life-contingent contract benefits and
               contractholder funds                                      46,372                34,045
           Deferred policy acquisition costs                            (21,763)               (9,169)
           Income taxes payable                                          11,781                 8,929
           Other operating assets and liabilities                        (7,990)              (10,829)
                                                                      ---------             ---------
               Net cash provided by operating activities                 58,840                37,225
                                                                      ---------             ---------

Cash flows from investing activities
Proceeds from sales of fixed income securities                          116,102               141,505
Investment collections
       Fixed income securities                                           35,058                14,685
       Mortgage loans                                                    12,153                 6,264
Investment purchases
       Fixed income securities                                         (408,307)             (291,312)
       Mortgage loans                                                   (41,729)              (26,730)
Change in short-term investments, net                                    21,455                50,722
Change in policy loans, net                                                (496)                 (941)
                                                                      ---------             ---------
               Net cash used in investing activities                   (265,764)             (105,807)
                                                                      ---------             ---------

Cash flows from financing activities
Contractholder fund deposits                                            321,818               115,288
Contractholder fund withdrawals                                        (110,125)              (48,683)
                                                                      ---------             ---------
               Net cash provided by financing activities                211,693                66,605
                                                                      ---------             ---------

Net increase (decrease) in cash                                           4,769                (1,977)
Cash at the beginning of period                                           1,135                 3,117
                                                                      ---------             ---------
Cash at end of period                                                 $   5,904             $   1,140
                                                                      =========             =========
</TABLE>

                       See notes to financial statements.

                                        5



<PAGE>

                   Allstate Life Insurance Company of New York
                          Notes to Financial Statements
                                   (Unaudited)


1.   Basis of Presentation

     The accompanying financial statements include the accounts of Allstate Life
Insurance  Company of New York (the  "Company"),  a wholly owned  subsidiary  of
Allstate  Life  Insurance  Company  ("ALIC"),  which is wholly owned by Allstate
Insurance Company ("AIC"), a wholly owned subsidiary of The Allstate Corporation
(the "Corporation").

     The financial  statements  and notes as of September 30, 2000,  and for the
three  month and nine month  periods  ended  September  30,  2000 and 1999,  are
unaudited.  The financial statements reflect all adjustments (consisting only of
normal  recurring  accruals) which are, in the opinion of management,  necessary
for the fair presentation of the financial  position,  results of operations and
cash flows for the interim periods. The financial statements and notes should be
read in conjunction with the financial  statements and notes thereto included in
the Allstate Life  Insurance  Company of New York Annual Report on Form 10-K for
1999. The results of operations for the interim periods should not be considered
indicative of results to be expected for the full year.

Pending Accounting Standards

     In  June  1999,  the  Financial  Accounting  Standards  Board  delayed  the
effective date of Statement of Financial  Accounting Standards ("SFAS") No. 133,
"Accounting  for  Derivative  Instruments  and  Hedging  Activities."  SFAS  133
replaces  existing  pronouncements  and  practices  with  a  single,  integrated
accounting  framework for  derivatives  and hedging  activities.  This statement
requires that all  derivatives be recognized on the balance sheet at fair value.
Derivatives  that are not hedges must be adjusted to fair value through  income.
If the derivative is a hedge,  depending on the nature of the hedge,  changes in
the fair value of  derivatives  will either be offset  against the change in the
fair  value of the  hedged  assets,  liabilities,  or firm  commitments  through
earnings or  recognized in other  comprehensive  income until the hedged item is
recognized in earnings.  Additionally,  the change in fair value of a derivative
that is not effective as a hedge will be immediately recognized in earnings.

     The delay was effected  through the issuance of SFAS No. 137, which extends
the SFAS No. 133  requirements to fiscal years beginning after June 15, 2000. In
June 2000,  the FASB  issued  SFAS No.  138,  which  amends the  accounting  and
reporting  standards of SFAS 133 for certain derivative  instruments and certain
hedging  activities.  As such, the Company will adopt the provisions of SFAS No.
133 and SFAS No. 138 as of January 1, 2001.  The impact of these  statements  is
dependent upon the Company's derivative positions and market conditions existing
at the date of adoption.  Based on existing  interpretations of the requirements
of SFAS No. 133,  the impact of  adoption is not  expected to be material to the
results of operations or financial position of the Company.

     In September 2000, the FASB issued SFAS No. 140,  "Accounting for Transfers
and Servicing of Financial Assets and  Extinguishments  of  Liabilities,"  which
supercedes  SFAS No. 125  "Accounting  for  Transfers and Servicing of Financial
Assets  and   Extinguishments   of  Liabilities."   SFAS  No.  140  changes  the
circumstances  under  which a secured  party must  recognize  certain  financial
assets in which it has security interest.  As a result,  when the Company adopts
the provisions of SFAS No. 140, it will cease recognizing  collateral previously
recognized  under the guidance of SFAS No. 125. The  provisions  of SFAS No. 140
will be  adopted  effective  January  1,  2001,  and is not  expected  to have a
material impact on the financial position of the Company.  Financial  statements
for  previous  periods  presented  for  comparative  purposes  will be  restated
accordingly.


                                       6

<PAGE>
                   Allstate Life Insurance Company of New York
                          Notes to Financial Statements
                                   (Unaudited)


2.   Comprehensive Income

     The  components  of other  comprehensive  income on a pretax and  after-tax
basis are as follows:
<TABLE>
<CAPTION>

                                                                  Three Months Ended September 30,
                                            ---------------------------------------------------------------------------
   ($ in thousands)                                        2000                                  1999
                                            ------------------------------------ --------------------------------------

                                                                      After-                                After-
                                               Pretax       Tax        tax          Pretax       Tax          tax
<S>                                             <C>       <C>           <C>        <C>            <C>       <C>
   Unrealized capital gains and losses:
     Unrealized   holding   gains   (losses)
       arising during the period              $   13,717  $ (4,801)  $    8,916    $ (15,726)     $ 5,504   $ (10,222)
     Less:  reclassification adjustments             260       (91)         169         (837)         293        (544)
                                              ----------  --------   ----------    ---------      -------   ---------
    Other comprehensive income (loss)         $   13,457  $ (4,710)       8,747    $ (14,889)     $ 5,211      (9,678)
                                              ==========  ========                 =========      =======
   Net income                                                             8,298                                 5,563
                                                                     ----------                             ---------
   Comprehensive income (loss)                                       $   17,045                             $  (4,115)
                                                                     ==========                             =========





                                                                        Nine Months Ended September 30,
                                            ----------------------------------------------------------------------------
   ($ in thousands)                                        2000                                   1999
                                            ------------------------------------  --------------------------------------

                                                                      After-                                 After-
                                               Pretax       Tax         tax         Pretax        Tax          tax

   Unrealized capital gains and losses:
     Unrealized   holding   gains   (losses)
       arising during the period              $  (3,627)    $ 1,270    $ (2,357)    $ (67,597)    $ 23,659   $ (43,938)
     Less:  reclassification adjustments         (2,805)        982      (1,823)       (1,599)         560      (1,039)
                                              ---------     -------    --------     ---------     --------   ---------
   Other comprehensive income (loss)          $    (822)    $   288        (534)    $ (65,998)    $ 23,099     (42,899)
                                              =========     =======                ==========     ========
   Net income                                                            24,138                                 18,113
                                                                       --------                              ----------

   Comprehensive income (loss)                                         $ 23,604                              $ (24,786)
                                                                       ========                              =========
</TABLE>

                                       7
<PAGE>


                   Allstate Life Insurance Company of New York
                          Notes to Financial Statements
                                   (Unaudited)


3.   Regulation and Legal Proceedings

          The Company's business is subject to the effects of a changing social,
     economic  and   regulatory   environment.   Recent  public  and  regulatory
     initiatives  have varied and have included  employee  benefit  regulations,
     removal of barriers  preventing  banks from engaging in the  securities and
     insurance  business,  tax law changes  affecting  the taxation of insurance
     companies and the tax treatment of insurance products and its impact on the
     relative desirability of various personal investment vehicles. The ultimate
     changes and eventual effects, if any, of these initiatives are uncertain.

          In the normal  course of its  business,  the  Company is  involved  in
     pending and threatened  litigation  and regulatory  actions in which claims
     for monetary  damages are  asserted.  At this time,  based on their present
     status, it is in the opinion of management, that the ultimate liability, if
     any,  in one or more of  these  actions  in  excess  of  amounts  currently
     reserved  is not  expected  to have a  material  effect on the  results  of
     operations, liquidity or financial position of the Company.



                                       8
<PAGE>


                   Allstate Life Insurance Company of New York
                          Notes to Financial Statements
                                   (Unaudited)


4.   Reinsurance

          The Company  has  reinsurance  agreements  with ALIC in order to limit
     aggregate  and single  exposure on large risks.  A portion of the Company's
     premiums,  policy benefits and certain costs and expenses are ceded to ALIC
     and  reflected net of such  reinsurance  in the  statements of  operations.
     Reinsurance  recoverables  and  the  related  reserve  for  life-contingent
     contract benefits and contractholder  funds are reported  separately in the
     statements  of financial  position.  The Company  continues to have primary
     liability as the direct insurer for risks reinsured.

          The following amounts were ceded to ALIC under reinsurance agreements.

<TABLE>
<CAPTION>
                                                    Three months ended                  Nine months ended
                                                       September 30,                      September 30,
                                               ------------------------------     -------------------------------
       ($ in thousands)                             2000            1999               2000            1999
                                               ---------------- -------------     --------------- ---------------

<S>                                                 <C>             <C>               <C>             <C>
       Premiums                                     $ 1,463         $ 703             $ 3,627         $ 2,448
       Contract benefits                                 30           251                 433             318
       Certain costs and expenses                         1            --                   3              --
</TABLE>

          The  Company  also  purchases  reinsurance  from  non-affiliates.  The
     following table  summarizes  amounts that were ceded to third parties under
     reinsurance agreements.

<TABLE>
<CAPTION>
                                                    Three months ended                  Nine months ended
                                                       September 30,                      September 30,
                                               ------------------------------     -------------------------------
       ($ in thousands)                             2000            1999               2000            1999
                                               ---------------- -------------     --------------- ---------------

<S>                                                   <C>           <C>                 <C>             <C>
       Premiums                                       $ 215         $ 206               $ 663           $ 628
       Contract benefits                                155           185                   8             797
       Certain costs and expenses                        33           104                 104             199

</TABLE>

                                       9
<PAGE>

                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                   FOR THE THREE MONTH AND NINE MONTH PERIODS
                        ENDED SEPTEMBER 30, 2000 AND 1999

     The following discussion highlights significant factors influencing results
of  operations  and changes in  financial  position of Allstate  Life  Insurance
Company of New York (the  "Company").  It should be read in conjunction with the
financial  statements  and  related  notes  thereto  found  under Part I. Item 1
contained  herein and with the discussion,  analysis,  financial  statements and
notes  thereto in Part I. Item 1 and Part II. Items 7 and 8 of the Allstate Life
Insurance  Company  of New York  Annual  Report on Form 10-K for the year  ended
December 31, 1999.

     The Company,  a wholly owned subsidiary of Allstate Life Insurance  Company
("ALIC"),  which is a wholly  owned  subsidiary  of Allstate  Insurance  Company
("AIC"),   a  wholly  owned   subsidiary  of  The  Allstate   Corporation   (the
"Corporation"),  markets life insurance and savings products in the state of New
York through a  combination  of exclusive  agencies,  securities  firms,  banks,
specialized  brokers and direct  response  marketing.  Life  insurance  products
consist   of   traditional   products,    including   term   and   whole   life,
interest-sensitive life and immediate annuities with life contingencies. Savings
products  include  deferred  annuities  and  immediate  annuities  without  life
contingencies.  Deferred annuities include fixed rate, market value adjusted and
variable annuities.

     The Company has identified itself as a single segment entity.

     The assets and  liabilities  related to variable  annuity and variable life
contracts are legally segregated and reflected as Separate Accounts.  The assets
of  the  Separate  Accounts  are  carried  at  fair  value.   Separate  Accounts
liabilities represent the contractholders'  claims to the related assets and are
carried at the fair value of the  assets.  In the event that the asset  value of
certain  contractholder  accounts are projected to be below the value guaranteed
by the  Company,  a  liability  is  established  through a charge  to  earnings.
Investment income and realized capital gains and losses of the Separate Accounts
accrue directly to the  contractholders  and therefore,  are not included in the
Company's statements of operations.


                                       10

<PAGE>

                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                   FOR THE THREE MONTH AND NINE MONTH PERIODS
                        ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
Financial Highlights


                                                                 Three months Ended                        Nine months Ended
                                                                    September 30,                            September 30,
                                                        -------------------------------------    ----------------------------------
($ in thousands)                                              2000                 1999               2000               1999
                                                        -----------------    ----------------    --------------    ----------------

<S>                                                        <C>                 <C>               <C>                 <C>
Statutory premiums and deposits                            $   153,918          $   68,299        $  504,443         $   195,305
                                                           ===========          ==========        ==========         ===========

Investments                                                $ 2,595,695         $ 2,121,237       $ 2,595,695         $ 2,121,237
Separate Accounts assets                                       556,048             389,675           556,048             389,675
                                                           -----------         -----------       -----------         -----------
Investments, including Separate Accounts assets            $ 3,151,743         $ 2,510,912       $ 3,151,743         $ 2,510,912
                                                           ===========         ===========       ===========         ===========

GAAP Premiums                                              $    25,321         $    16,835       $    67,753         $    48,400
Contract charges                                                10,410               9,607            31,550              28,627
Net investment income                                           45,201              37,771           129,691             109,778
Contract benefits                                               57,321              47,347           162,521             133,560
Amortization and Operating costs and expenses                   10,863               7,420            27,144              23,588
                                                          ------------         -----------       -----------         -----------
Operating income before tax                                     12,748               9,446            39,329              29,657
Income tax expense                                               4,634               3,368            13,484              10,555
                                                          ------------         -----------       -----------         -----------
Operating income (1)                                             8,114               6,078            25,845              19,102
Realized capital gains and losses, net of tax                      184                (515)           (1,707)               (989)
                                                          ------------         -----------       -----------         -----------
Net income                                                $      8,298         $     5,563       $    24,138         $    18,113
                                                          ============         ===========       ===========         ===========

</TABLE>

(1) The  supplemental  operating  information  presented above allows for a more
complete analysis of results of operations.  The net effects of realized capital
gains and losses have been excluded due to the  volatility  between  periods and
because  such data is often  excluded  when  evaluating  the  overall  financial
performance  of  insurers.  Operating  income  should  not  be  considered  as a
substitute  for any GAAP  measure  of  performance.  Our  method of  calculating
operating  income may be different  from the method used by other  companies and
therefore comparability may be limited.




                                       11






<PAGE>

                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                   FOR THE THREE MONTH AND NINE MONTH PERIODS
                        ENDED SEPTEMBER 30, 2000 AND 1999


Statutory premiums and deposits

     Statutory  premiums and deposits,  which include  premiums and deposits for
all products,  are used to analyze sales trends.  The following table summarizes
statutory premiums and deposits by product line.
<TABLE>
<CAPTION>

                                                              Three months Ended                       Nine months Ended
                                                                 September 30,                           September 30,
                                                    ---------------------------------------    ------------------------------
   ($ in thousands)                                        2000                  1999              2000             1999
                                                    -------------------    ----------------    -------------    -------------
<S>                                                           <C>                 <C>              <C>              <C>
   Life Products
        Interest-sensitive                                   $  12,348            $ 12,369         $  38,556        $  36,724
        Traditional                                              4,661               4,081            12,760           11,467
        Other                                                    1,885               1,594             5,373            4,366
                                                             ---------            --------         ---------        ---------
        Total life products                                  $  18,894            $ 18,044         $  56,689        $  52,557
                                                             ---------            --------         ---------        ---------

   Annuity Products
        Fixed                                                $  57,159            $ 29,846         $ 236,466        $  95,305
        Variable                                                77,865              20,409           211,288           47,443
                                                             ---------            --------         ---------        ---------

   Total                                                     $ 153,918            $ 68,299         $ 504,443        $ 195,305
                                                             =========            ========         =========        =========
</TABLE>



     Statutory  premiums and deposits  increased $85.6 million or 125.4% for the
third  quarter of 2000  compared  with the same  period  last  year,  and $309.1
million  or 158.3%  for the first  nine  months of 2000  compared  with the same
period last year. The increases were primarily due to higher  variable and fixed
annuity sales.  Increased  variable  annuity sales, for the first nine months of
2000,  were  primarily  driven by $140.4  million  of sales  from the new Putnam
Allstate  Advisor  variable  annuity  product  that was  launched in New York in
January  2000.  The large  increase in fixed  annuity  sales  resulted  from new
distribution outlets in the banking distribution channel.



                                       12



<PAGE>

                 ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                   FOR THE THREE MONTH AND NINE MONTH PERIODS
                        ENDED SEPTEMBER 30, 2000 AND 1999


GAAP premiums and contract charges

     Under  accounting  principles  generally  accepted in the United  States of
America  ("GAAP"),  premiums  represent  revenue generated from traditional life
products with significant mortality risks. Revenues for interest-sensitive  life
insurance  and fixed and  variable  annuity  contracts,  for which  deposits are
treated as liabilities,  are reflected as contract charges.  Immediate annuities
may be purchased with a life contingency whereby mortality risk is a significant
factor.  For this reason the GAAP  revenues  generated  on these  contracts  are
recognized  as  premiums.  The  following  table  summarizes  GAAP  premiums and
contract charges.
<TABLE>
<CAPTION>

                                                                  Three Months Ended                      Nine Months Ended
                                                                     September 30,                          September 30,
                                                          -----------------------------------     ------------------------------
  ($ in thousands)                                             2000                1999               2000             1999
                                                          ---------------     ---------------     ------------    --------------

  Premiums
<S>                                                              <C>                 <C>             <C>               <C>
       Traditional life                                         $  4,414            $  4,081         $ 12,514          $ 11,467
       Immediate annuities with life contingencies                19,039              11,127           49,879            32,369
       Other                                                       1,868               1,627            5,360             4,564
                                                                --------            --------         --------          --------
            Total premiums                                      $ 25,321            $ 16,835         $ 67,753          $ 48,400
                                                                --------            --------         --------          --------

  Contract charges
       Interest-sensitive life                                  $  7,343            $  7,430         $ 23,159          $ 22,204
       Variable annuities                                          2,284               1,745            6,350             5,078
       Other                                                         783                 432            2,041             1,345
                                                                --------            --------         --------          --------
            Total contract charges                              $ 10,410            $  9,607         $ 31,550          $ 28,627
                                                                --------            --------         --------          --------

            Total premiums and contract charges                 $ 35,731            $ 26,442         $ 99,303          $ 77,027
                                                                ========            ========         ========          ========

</TABLE>


     Total  premiums for the three month and nine month  period ended  September
30,  2000  increased  50.4%  to  $25.3  million  and  40.0%  to  $67.8  million,
respectively,  compared  with the same  periods last year due to higher sales of
immediate annuities with life contingencies.

     Contract charges for the three month and nine month periods ended September
30,  2000   increased  8.4%  to  $10.4  million  and  10.2%  to  $31.5  million,
respectively,  compared  with the same period last year.  The  increase  for the
third  quarter was due to increased  variable  annuity  deposits  and  increased
charges on immediate  annuities without life  contingencies due to higher sales.
The  increases  for the first nine months of 2000 were  primarily  due to higher
interest-sensitive  life  contract  charges  that  were the  result of growth in
interest-sensitive  life  policies  in force,  increased  charges  on  immediate
annuities without life contingencies due to higher sales, and increased variable
annuity deposits.

Operating income

     Operating income for the three month and nine month periods ended September
30,  2000  increased   33.5%  to  $8.1  million  and  35.3%  to  $25.8  million,
respectively,  compared with the same period last year. These increases were due
to increased net investment  income,  premiums,  and contract charges  partially
offset by higher contract benefits.

                                       13
<PAGE>
                 ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                   FOR THE THREE MONTH AND NINE MONTH PERIODS
                        ENDED SEPTEMBER 30, 2000 AND 1999


Net investment income

     Net  investment  income for the three  month and nine month  periods  ended
September 30, 2000 increased 19.7% to $45.2 million and 18.1% to $129.7 million,
respectively,  compared with the same period last year due to higher  investment
balances resulting from increased sales and increased cash flows from operations
in both periods.

Realized capital gains and losses

     Realized capital gains, after-tax, were $184 thousand for the third quarter
of 2000 compared to realized capital losses, after-tax, of $515 thousand for the
third quarter of 1999. Realized capital losses, after tax, were $1.7 million for
the nine months ended  September 30, 2000 compared to $989 thousand for the same
period last year.  Period to period  fluctuations in realized capital losses are
largely  the  result of timing of sales,  reflecting  management's  decision  on
positioning the portfolio,  as well as assessments of individual  securities and
overall market conditions.

Investments

     The  composition  of the  investment  portfolio  at  September  30, 2000 is
presented in the table below:

                                                                    Percent
($ in thousands)                                                    to total
                                                                    --------

Fixed income securities (1)                     $ 2,266,596            87.3
Mortgage loans                                      196,675             7.6
Policy loans                                         31,605             1.2
Short-term                                          100,819             3.9
                                                -----------         -------

    Total                                       $ 2,595,695           100.0%
                                                ===========         =======


(1)  Fixed income securities are carried at fair value. Amortized cost for these
     securities was $2,149,376 at September 30, 2000.

     Total  investments were $2.6 billion at September 30, 2000 compared to $2.2
billion at December  31,  1999.  The  increase  was due to  positive  cash flows
generated  from  operations  and increases in  unrealized  gains on fixed income
securities.  At September 30, 2000, unrealized capital gains on the fixed income
securities  portfolio were $117.2 million  compared to $54.3 million at December
31, 1999.

     At September  30, 2000,  substantially  all of the  Company's  fixed income
securities portfolio was rated investment grade, which is defined by the Company
as a security having a National Association of Insurance  Commissioners ("NAIC")
rating of 1 or 2, a Moody's  rating of Aaa, Aa, A, Baa or a  comparable  Company
internal rating.

Separate Accounts

     Separate Accounts assets and liabilities  increased 25.3% to $556.0 million
at September  30, 2000 from the December 31, 1999 balance.  The  increases  were
primarily  attributable to sales of variable annuity contracts  partially offset
by surrenders and withdrawals.



                                       14
<PAGE>


                 ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                   FOR THE THREE MONTH AND NINE MONTH PERIODS
                        ENDED SEPTEMBER 30, 2000 AND 1999

Liquidity and Capital Resources

     The  Company's  principal  sources of funds are the receipt of premiums and
deposits and  collections  of principal  and  interest  and  dividends  from the
investment  portfolio.   The  primary  uses  of  these  funds  are  to  purchase
investments and pay policyholder claims, benefits, contract maturities, contract
surrenders and withdrawals and operating costs.

     The maturity  structure of the  Company's  fixed income  securities,  which
represent  87.3% of the  Company's  total  investments,  is  managed to meet the
anticipated cash flow requirements of the underlying  liabilities.  A portion of
the Company's  diversified  product portfolio,  primarily fixed deferred annuity
and  interest-sensitive  life insurance  products,  is subject to  discretionary
surrender and withdrawal by  contractholders.  Total  surrenders and withdrawals
for the three month and nine month periods  ended  September 30, 2000 were $27.7
million and $72.1 million  compared with $18.9 million and $44.3 million for the
same periods last year.  As the Company's  interest-sensitive  life policies and
annuity  contracts  in-force grow and age, the dollar  amount of surrenders  and
withdrawals  will likely  increase.  While the overall  amount of surrenders may
increase  in the  future,  a  significant  increase  in the level of  surrenders
relative to total contractholder account balances is not anticipated.

Pending Accounting Standards

     In  June  1999,  the  Financial  Accounting  Standards  Board  delayed  the
effective date of Statement of Financial  Accounting Standards ("SFAS") No. 133,
"Accounting  for  Derivative  Instruments  and  Hedging  Activities."  SFAS  133
replaces  existing  pronouncements  and  practices  with  a  single,  integrated
accounting  framework for  derivatives  and hedging  activities.  This statement
requires that all  derivatives be recognized on the balance sheet at fair value.
Derivatives  that are not hedges must be adjusted to fair value through  income.
If the derivative is a hedge,  depending on the nature of the hedge,  changes in
the fair value of  derivatives  will either be offset  against the change in the
fair  value of the  hedged  assets,  liabilities,  or firm  commitments  through
earnings or  recognized in other  comprehensive  income until the hedged item is
recognized in earnings.  Additionally,  the change in fair value of a derivative
that is not effective as a hedge will be immediately recognized in earnings.

     The delay was effected  through the issuance of SFAS No. 137, which extends
the SFAS No. 133  requirements to fiscal years beginning after June 15, 2000. In
June 2000,  the FASB  issued  SFAS No.  138,  which  amends the  accounting  and
reporting  standards of SFAS 133 for certain derivative  instruments and certain
hedging  activities.  As such, the Company will adopt the provisions of SFAS No.
133 and SFAS No. 138 as of January 1, 2001.  The impact of these  statements  is
dependent upon the Company's derivative positions and market conditions existing
at the date of adoption.  Based on existing  interpretations of the requirements
of SFAS No. 133,  the impact of  adoption is not  expected to be material to the
results of operations or financial position of the Company.

     In September 2000, the FASB issued SFAS No. 140,  "Accounting for Transfers
and Servicing of Financial Assets and  Extinguishments  of  Liabilities,"  which
supercedes  SFAS No. 125  "Accounting  for  Transfers and Servicing of Financial
Assets  and   Extinguishments   of  Liabilities."   SFAS  No.  140  changes  the
circumstances  under  which a secured  party must  recognize  certain  financial
assets in which it has security interest.  As a result,  when the Company adopts
the provisions of SFAS No. 140, it will cease recognizing  collateral previously
recognized  under the guidance of SFAS No. 125. The  provisions  of SFAS No. 140
will be  adopted  effective  January  1,  2001,  and is not  expected  to have a
material impact on the financial position of the Company.  Financial  statements
for  previous  periods  presented  for  comparative  purposes  will be  restated
accordingly.

                                       15
<PAGE>

                 ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                   FOR THE THREE MONTH AND NINE MONTH PERIODS
                        ENDED SEPTEMBER 30, 2000 AND 1999


Forward-looking Statements

     The statements contained in this Management's  Discussion and Analysis that
are not historical information are forward-looking  statements that are based on
management's  estimates,  assumptions and  projections.  The Private  Securities
Litigation Reform Act of 1995 provides a safe harbor under The Securities Act of
1933 and The Securities Exchange Act of 1934 for forward-looking statements.

     Forward looking  statements do not relate strictly to historical or current
facts and may be  identified  by their  use of words  like  "plans,"  "expects,"
"will," "anticipates,"  "estimates,"  "intends," "believes," "likely," and other
words with similar meanings.  These statements may address,  among other things,
our strategy  for growth,  product  development,  regulatory  approvals,  market
position, expenses,  financial results and reserves.  Forward-looking statements
are based on management's  current  expectations  and assumptions.  However,  we
believe that our  forward-looking  statements are based on  reasonable,  current
expectations   and   assumptions.   We  assume  no   obligation  to  update  any
forward-looking  statements as a result of new  information  or future events or
developments.

     If  the   expectations  or  assumptions   underlying  our   forward-looking
statements prove inaccurate or if risks or uncertainties  arise,  actual results
could  differ  materially  from  those   communicated  in  our   forward-looking
statements.  In addition to the normal risks of business, the Company is subject
to significant  risk factors,  including those listed below which apply to it as
an insurance business.

o    Changes in market  interest rates can have adverse effects on the Company's
     investment  portfolio,  investment  income,  product  sales and  results of
     operations.  Increases in market  interest  rates have an adverse impact on
     the value of the  investment  portfolio by  decreasing  unrealized  capital
     gains on fixed income securities. In addition, increases in market interest
     rates as compared to rates offered on some of the Company's  products could
     make those products less attractive and lead to lower sales and/or increase
     the level of surrenders on these products.  Declining market interest rates
     could  have an adverse  impact on the  Company's  investment  income as the
     Company  reinvests  proceeds from positive cash flows from  operations  and
     from maturing and called  investments  into new  investments  that could be
     yielding less than the portfolio's average rate.  Additionally,  the impact
     of decreasing  Separate Accounts balances resulting from fluctuating market
     conditions  could  cause  contract  charges  realized  by  the  Company  to
     decrease.

o    In order to meet the anticipated cash flow  requirements of its obligations
     to  policyholders,  from time to time the  Company  adjusts  the  effective
     duration  of  the  assets  and  liabilities  of  the  Company's  investment
     portfolio.  Those  adjustments  may  have an  impact  on the  value  of the
     investment portfolio and on investment income.

o    State  insurance  regulatory  authorities  require  insurance  companies to
     maintain  specified levels of statutory  capital and surplus.  In addition,
     competitive pressures require the Company to maintain financial strength or
     claims-paying  ability  ratings.  These  restrictions  affect the Company's
     ability to use its capital.

o    There is uncertainty involved in estimating the availability of reinsurance
     and the collectibility of reinsurance recoverables. This uncertainty arises
     from a number of factors,  including  segregation by the industry generally
     of reinsurance exposure into separate legal entities.

o    The Company  distributes  some of its products under  agreements with other
     financial services entities.  Termination of such agreements due to changes
     in control of these non-affiliated entities could have a detrimental effect
     on the Company's sales.  This risk may be increased due to the enactment of
     the Gramm-Leach-Bliley Act of 1999, which eliminates many federal and state
     law barriers to affiliations  among banks,  securities firms,  insurers and
     other financial service providers.


                                       16


<PAGE>
                 ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                   FOR THE THREE MONTH AND NINE MONTH PERIODS
                        ENDED SEPTEMBER 30, 2000 AND 1999



o    A number of enacted and pending legislative  measures may lead to increased
     consolidation and increased competition in the financial services industry.
     At the federal level, these measures include the  Gramm-Leach-Bliley Act of
     1999,  which eliminates many federal and state law barriers to affiliations
     among  banks,  securities  firms,  insurers  and  other  financial  service
     providers. At the state level, these measures include legislation to permit
     mutual  insurance  companies  to convert to a hybrid  structure  known as a
     mutual holding company, thereby allowing insurance companies owned by their
     policyholders  to become stock  insurance  companies  owned (through one or
     more intermediate  holding  companies) at least 51% by their  policyholders
     and potentially up to 49% by  stockholders.  Also several large mutual life
     insurers  have  used  or  are  expected  to use  existing  state  laws  and
     regulations  governing the  conversion of mutual  insurance  companies into
     stock  insurance  companies  (demutualization).  These  measures  may  also
     increase competition for capital among financial service providers.

o    Deferred annuities and  interest-sensitive  life insurance products receive
     favorable policyholder taxation under current tax laws and regulations. Any
     legislative or regulatory  changes that adversely  alter this treatment are
     likely to negatively affect the demand for these products.

o    The adoption of SFAS No. 133,  "Accounting  for Derivative  Instruments and
     Hedging  Activities,"  as  amended,  is not  expected to be material to the
     results of operations of the Company. However, the impact is dependent upon
     market conditions and our holdings existing at the date of adoption,  which
     for the Company will be January 1, 2001.

o    Financial strength ratings have become an increasingly  important factor in
     establishing  the  competitive  position  of  insurance  companies  and may
     generally be expected to have an effect on an insurance company's business.
     On an ongoing basis, rating organizations review the financial  performance
     and condition of insurers.  Downgrades in one or more of the ratings of the
     Company could have a material  adverse  effect on the  Company's  business,
     financial condition and results of operations.





                                       17

<PAGE>



                           PART II - OTHER INFORMATION



Item 1.  LEGAL PROCEEDINGS

     The  Company  and  its  Board  of  Directors  know  of  no  material  legal
     proceedings  pending  to  which  the  Company  is a party  or  which  would
     materially  affect the  Company.  The  Company is  involved  in pending and
     threatened  litigation in the normal course of its business in which claims
     for monetary  damages are asserted.  Management,  after  consultation  with
     legal counsel, does not anticipate the ultimate liability arising from such
     pending or threatened litigation to have a material effect on the financial
     condition of the Company.


Item 5.  OTHER INFORMATION

         Not applicable.

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibits required by Item 601 of Regulation S-K


(2)  None

(3)(i) Restated  Certificate of Incorporation of Allstate Life Insurance Company
     of New York  (Incorporated  herein by reference to the Company's  Form 10-K
     Annual Report for the year ended December 31, 1998)

(3)(ii)  Amended  By-laws  of  Allstate  Life  Insurance  Company  of  New  York
     (Incorporated  herein by reference to the Company's Form 10-K Annual Report
     for the year ended December 31, 1998)

(4)  None

(10) None

(11) Not Required

(15) None

(18) None

(19) None

(22) None

(23) Not required

(24) None

(27) Financial Data Schedule


 (b) Reports on 8-K

            No reports on Form 8-K were filed during the third quarter of 2000.




                                      18
<PAGE>


                              SIGNATURES



Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized, on the 13th day of November, 2000.



                           ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                           -------------------------------------------
                                  (Registrant)






/s/ THOMAS J. WILSON, II            PRESIDENT
------------------------            (Principal Executive Officer)
 THOMAS J. WILSON, II



/s/ SAMUEL H. PILCH                 CONTROLLER
------------------------             (Chief Accounting Officer)
 SAMUEL H. PILCH






                                       19
<PAGE>

Exhibit Index

Exhibit No.              Exhibit


(27)                Financial Data Schedule