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: March 31, 1997

                              OR

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


Commission file number: 33-47245
                        33-65381


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


        NEW YORK                                     36-2608394
(State or other jurisdiction of                  (I.R.S. Employer
 incorporation or organization)                   Identification No.)

                            One Allstate Drive
                              P.O. Box 9095
                        Farmingville, New York 11738
                   (Address of principal executive offices)
                                 (Zip Code)

                                 516/451-5300
           (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 March 31, 1997; there were 80,000 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 Financial Position
            March 31, 1997(Unaudited)and December 31, 1996....................3

            Statements of Operations
            Three Months Ended March 31, 1997
            and March 31, 1996 (Unaudited)....................................4

            Statements of Cash Flows
            Three Months Ended March 31, 1997
            and March 31, 1996 (Unaudited)....................................5

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

Item  2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
           FINANCIAL CONDITION AND RESULTS OF OPERATIONS......................7

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


                    PART II - OTHER INFORMATION

Item 1.   LEGAL PROCEEDINGS..................................................10

Item 2.   CHANGES IN SECURITIES*............................................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 .................................................10

Item 6.   EXHIBITS AND REPORTS ON FORM 8-K...................................10

SIGNATURE PAGE...............................................................12





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




                                   -2-

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

                                                                         March 31,                December 31,
($ in thousands)                                                           1997                      1996
                                                                        -----------               ------------
                                                                        (Unaudited)
<S>                                                                     <C>                        <C>
ASSETS
   Investments
     Fixed income securities, at fair value
         (amortized cost $1,425,935
         and $1,378,155)                                                 $1,473,056                $1,500,783
     Mortgage loans                                                          88,997                    84,657
     Policy loans                                                            25,863                    25,359
     Short-term                                                               9,149                    25,855
                                                                         ----------                ----------
     Total investments                                                    1,597,065                 1,636,654

   Deferred acquisition costs                                                64,311                    61,559
   Accrued investment income                                                 18,293                    20,321
   Reinsurance recoverables                                                   2,099                     2,566
   Deferred income taxes                                                      6,751                         -
   Cash                                                                       2,832                     1,027
   Other assets                                                               4,165                     7,489
   Separate Accounts                                                        261,685                   260,668
                                                                         ----------                ----------
          Total assets                                                   $1,957,201                $1,990,284
                                                                         ==========                ==========

LIABILITIES
   Reserve for life-contingent contract benefits                         $  882,117                $  911,457
   Contractholder funds                                                     579,653                   572,480
   Income taxes payable                                                       1,926                         -
   Deferred income taxes                                                          -                     3,692
   Other liabilities and accrued expenses                                     7,109                     6,405
   Net payable to affiliates                                                  2,018                     2,515
   Separate Accounts                                                        261,685                   260,668
                                                                         ----------                ----------
          Total liabilities                                               1,734,508                 1,757,217
                                                                         ----------                ----------

SHAREHOLDER'S EQUITY
   Common stock, $25 par value, 80,000 shares
     authorized, issued and outstanding                                       2,000                     2,000
   Additional capital paid-in                                                45,787                    45,787
   Unrealized net capital gains                                              20,769                    36,852
   Retained income                                                          154,137                   148,428
                                                                         ----------                ----------
          Total shareholder's equity                                        222,693                   233,067
                                                                         ----------                ----------
          Total liabilities and shareholder's equity                     $1,957,201                $1,990,284
                                                                         ==========                ==========



</TABLE>

See notes to financial statements.




                                  -3-

<PAGE>

ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>


                                                                                        Three Months Ended
                                                                                             March 31,
                                                                                             ---------
($ in thousands)                                                                     1997               1996
                                                                                     ----               ----
                                                                                           (Unaudited)
<S>                                                                                  <C>                <C>
REVENUES
   Life and annuity premiums (net of reinsurance
      ceded of $691 and $584)                                                        $  20,661         $  23,103
   Contract charges                                                                      6,868             5,701
   Net investment income                                                                30,200            27,594
   Realized capital losses                                                                 (49)              (69)
                                                                                     ---------         ---------
                                                                                        57,680            56,329
                                                                                     ---------         ---------

COSTS AND EXPENSES
   Life and annuity contract benefits (net of reinsurance
      recoverable of $298 and $865)                                                     41,966            43,017
   Amortization of deferred acquisition costs                                            1,970             1,147
   Operating costs and expenses                                                          4,826             4,473
                                                                                     ---------         ---------
                                                                                        48,762            48,637
                                                                                     ---------         ---------

INCOME BEFORE INCOME TAXES                                                               8,918             7,692
INCOME TAX EXPENSE                                                                       3,209             2,767
                                                                                     ---------         ---------

NET INCOME                                                                           $   5,709         $   4,925
                                                                                     =========         =========

</TABLE>



See notes to financial statements.






                                   -4-


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


                                                                                     Three Months Ended
                                                                                         March 31,
                                                                                         ---------
                                                                                  1997                   1996
                                                                                  ----                   ----
($ in thousands)                                                                        (Unaudited)
<S>                                                                            <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                                                     $  5,709              $  4,925
Adjustments to reconcile net income to net cash
       provided by operating activities
           Depreciation, amortization and other
               non-cash items                                                    (7,335)               (6,230)
           Realized losses                                                           49                    69
           Interest credited to contractholder funds                              8,687                 7,548
           Decrease in reserve for life-contingent contract
               benefits and contractholder funds                                 14,817                17,356
           Increase in deferred policy acquisition costs                         (2,227)                 (836)
           Decrease in accrued investment income                                  2,028                 1,343
           Change in deferred income taxes                                       (1,782)               (2,706)
           Change in other operating assets and
               liabilities                                                        5,197                (1,967)
                                                                               --------              --------
                 Net cash provided by operating activities                       25,143                19,502
                                                                               --------              --------

CASH FLOWS FROM INVESTING ACTIVITIES
Investment collections
        Fixed income securities                                                  22,483                10,107
        Mortgage loans                                                              588                   888
Investment purchases
        Fixed income securities                                                 (62,140)              (34,124)
        Mortgage loans                                                           (5,000)                    -
Change in short-term investments, net                                             16,706                 (350)
Change in policy loans, net                                                        (504)                 (630)
                                                                               --------              --------
                 Net cash used in investing activities                          (27,867)              (24,109)
                                                                               --------              --------

CASH FLOWS FROM FINANCING ACTIVITIES
Contractholder fund deposits                                                     16,193                15,487
Contractholder fund withdrawals                                                 (11,664)              (10,811)
                                                                               --------             ---------
                 Net cash provided by financing activities                        4,529                 4,676
                                                                               --------             ---------

NET INCREASE IN CASH                                                              1,805                    69
CASH AT BEGINNING OF YEAR                                                         1,027                 1,472
                                                                               --------             ---------
CASH AT END OF PERIOD                                                          $  2,832             $   1,541
                                                                               ========             =========



See notes to financial statements.

</TABLE>



                                   -5-



<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
(Unaudited)


1.      Basis of Presentation

              Allstate Life Insurance Company of New York (the "Company") is
        wholly owned by a wholly owned subsidiary of Allstate Insurance Company,
        a wholly owned subsidiary of The Allstate Corporation.

              The statements of financial position as of March 31, 1997, the
        statements of operations for the three-month periods ended March 31,
        1997 and 1996, and the statements of cash flows for the three-month
        periods then ended are unaudited. The interim 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. These financial statements 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 1996. The results of operations for the interim periods should
        not be considered indicative of results to be expected for the full
        year.




                                  -6-


<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS


    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
discussion and analysis and financial statements and notes thereto found under
Items 7 and 8 of Part II of the Allstate Life Insurance Company of New York
Annual Report on Form 10-K for the year ended December 31, 1996.

     The Company is wholly owned by a wholly owned subsidiary of Allstate
Insurance Company. The Company markets a broad line of life insurance and
annuity products in the state of New York. Life insurance includes traditional
products such as whole life and term life insurance, as well as universal life
and other interest-sensitive life products. Annuities include deferred
annuities, such as variable annuities and fixed rate single and flexible premium
annuities, and immediate annuities such as structured settlement annuities. The
Company distributes its products using a combination of Allstate agents
including life specialists, banks and other financial institutions, brokers and
direct response marketing.


RESULTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                          Three Months
                                                         Ended March 31,
                                                         ---------------
($ in thousands)                                     1997                1996
                                                     ----                ----
<S>                                                <C>                 <C>
Statutory premiums and deposits                   $     46,212        $     44,818
                                                  ============        ============

Investments                                       $  1,597,065        $   1,451,151
Separate Account assets                                261,685              230,800
                                                  ------------        -------------
Investments including Separate Account assets     $  1,858,750        $   1,681,951
                                                  ============        =============
Premiums and contract charges (net of
   reinsurance)                                   $     27,529        $      28,804
Net investment income                                   30,200               27,594
Contract benefits (net of reinsurance)                  41,966               43,017
Operating costs and expenses                             6,796                5,620
                                                  ------------         ------------

Income from operations                                   8,967                7,761
Income tax on operations                                 3,226                2,791
                                                  ------------         ------------

Net operating income                                     5,741                4,970
Realized capital losses, after tax                         (32)                 (45)
                                                  ------------         ------------
Net income                                        $      5,709         $      4,925
                                                  ============         ============

</TABLE>



                                  -7-


<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS


Premium, deposits and contract charges

        Statutory premiums, which include premiums and deposits for all
products, increased $1.4 million or 3.1% for the first quarter of 1997 compared
with the same period for 1996. The increase is largely the result of higher
sales of variable annuity and life insurance products, partially offset by lower
sales of structured settlement annuities.

        Premiums and contract charges under generally accepted accounting
principals ("GAAP") decreased 4.4% for the first quarter of 1997 compared with
the same period for 1996. Under GAAP, revenues exclude deposits on most
annuities and premiums on universal life insurance policies. The decrease in
premiums and contract charges in 1997 primarily reflects lower levels of sales
of structured settlement annuities sold with life contingencies. GAAP premium
and contract charges will vary with the mix of products sold during the period.

               Realized capital losses

        Realized capital losses of $32 thousand after tax in the first quarter
of 1997 were 28.9% lower than the losses reported in the same period of 1996.
The decrease was due to gains on the sale of fixed income securities realized in
the first quarter of 1997.

               Net operating income

        Net operating income increased $771 thousand or 15.5% for the first
quarter of 1997 when compared to the same period in the prior year. The increase
in 1997 is the result of growth in investments and favorable mortality
experience on structured settlement annuities with life contingencies, offset in
part by an increase in amortization of deferred acquisition costs.

        Pretax net investment income increased 9.4% for the first quarter of
1997 primarily due to growth in investments primarily from positive cash flows
from operations.

        Operating expenses and amortization of deferred acquisition costs
increased $1.2 million or 20.9% for the first quarter of 1997 when compared to
the same period in the prior year. The 20.9% increase resulted primarily from an
increase in amortization expense of deferred acquisition costs related to growth
in sales and a larger maturing block of business.


INVESTMENTS

        The composition of the investment portfolio at March 31, 1997 is
presented at carrying value in the table below.
<TABLE>
<CAPTION>

        ($ in thousands)
                                                                        Percent
                                                                        to total
        <S>                                     <C>                     <C>
        Fixed income securities                 $1,473,056                92.2%
        Mortgage loans                              88,997                 5.6
        Policy loans                                25,863                 1.6
        Short-term                                   9,149                 0.6
                                                ----------               ------

              Total                             $1,597,065               100.0%
                                                ==========               ======

</TABLE>


                                  -8-

<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS


         The Company's fixed income securities portfolio consists of tax-exempt
municipal bonds, publicly traded corporate bonds, privately-placed securities,
mortgage-backed securities, asset-backed securities, and U.S. government bonds.
The Company generally holds its fixed income securities for the long term, but
has classified all of these securities as available for sale to allow maximum
flexibility in portfolio management. Total investments decreased to $1.60
billion at March 31, 1997 from $1.64 billion at December 31, 1996 as the
investment of positive cash flows generated from operating activities was more
than offset by a $76 million decrease in unrealized gains on the fixed income
security portfolio. The decrease in the unrealized gain position is primarily
attributable to rising interest rates.

        Substantially all of the Company's fixed income securities portfolio is
rated investment grade, which is defined by the Company as a security having a
National Association of Insurance Commissioners rating of 1 or 2, a Moody's
rating of Aaa, Aa, A or Baa, or a comparable Company internal rating.


LIQUIDITY AND CAPITAL RESOURCES

        Liquidity

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

        Cash at the end of the period increased as cash from operations and
financing activities were partially offset by the purchase of investments. Cash
from operations increased due to increased sales and lower federal income tax
payments offset in part by higher benefits and expenses.


PENDING ACCOUNTING STANDARDS

       In January 1997, the Securities and Exchange Commission issued Financial
Reporting Release No. 48 ("FRR 48") "Disclosure of Accounting Policies for
Derivative Financial Instruments and Derivative Commodity Instruments and
Disclosure of Quantitative and Qualitative Information about Market Risk
Inherent in Derivative Financial Instruments, Other Financial Instruments, and
Derivative Commodity Instruments."

       Effective in the second quarter of 1997, FRR 48 requires additional
disclosures in the footnotes to the financial statements about the Company's
accounting policies for derivative financial instruments. The Company
substantially adopted this requirement at December 31, 1996. In addition, FRR 48
requires annual disclosure of quantitative and qualitative information about the
market risk inherent in the Company's market risk sensitive instruments,
including but not limited to, fixed income securities and derivative financial
instruments. The quantitative and qualitative disclosures are effective for the
Company's year-end 1998 reporting, but recent Congressional events may
ultimately impact the nature and effective date of FRR 48.



                                 -9-

<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) Articles of Incorporation*
                (ii) By-laws*
              (4)    Allstate Life Insurance Company of New York
                     Single Premium Deferred Annuity Contract**
                      Allstate Life Insurance Company of New York Flexible
                     Premium Deferred Annuity Contract*
              (10)   None
              (11)   None
              (15)   None
              (18)   None
              (19)   None
              (22)   None
              (23)(a)Consent of Independent Public Accountants***
                  (b)Consent of Attorneys****
              (24) None
              (27) Financial Data Schedule
              (99) None

       (b)  Reports on 8-K

             No reports on Form 8-K were filed during the first quarter of 1997.



*    Previously filed in Form N-4 Registration Statement No.33-65381 dated


                                -10-

<PAGE>

September 20, 1996 and incorporated by reference.

** Previously filed in Form S-1 Registration Statement No.33-47245 dated
November 13, 1992 and incorporated by reference.

*** Previously filed in Form S-1 Registration Statement No.33-47245 dated April
1, 1997 and incorporated by reference.  Previously filed in Form S-1
Registration Statement No. 33-65355 dated April 1, 1997 and incorporated by
reference.

**** Previously filed in Form S-1 Registration Statement No.33-47245 dated
November 13, 1992 and incorporated by reference. Previously filed in Form S-1
Registration Statement No. 33-65355 dated September 20, 1996 and incorporated
by reference.


                                 -11-


<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 14th day of May 1997.



                           ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                                      (Registrant)


(SEAL)
Attest: /s/ BRENDA D. SNEED         By: /s/ MICHAEL J. VELOTTA
       ---------------------           --------------------------
       Brenda D. Sneed                 Michael J. Velotta
       Assistant Vice President        Vice President, Secretary,
                          General Counsel and Director




*LOUIS G. LOWER, II                 CHAIRMAN OF THE BOARD OF DIRECTORS
--------------------                 and PRESIDENT
 LOUIS G. LOWER, II                 (Principal Executive Officer)


/s/KEITH A. HAUSCHILDT              ASSISTANT VICE PRESIDENT AND CONTROLLER
----------------------              (Chief Accounting Officer)
   KEITH A. HAUSCHILDT









*/By Michael J. Velotta, pursuant to Power of Attorney previously filed.







                                   -12-