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, 1999

                                       OR

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


Commission file number: 33-47245
                        33-65355
                        33-65381
                        33-35445
                        33-24228


                   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 March 31, 1998;  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, 1999(Unaudited) and December 31, 1998.................. 3

            Statements of Operations
            Three Months Ended March 31, 1999 and
            March 31, 1998 (Unaudited)....................................... 4

            Statements of Cash Flows
            Three Months Ended March 31, 1999 and
                  March 31, 1998 (Unaudited)................................. 5

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

Item  2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
           FINANCIAL CONDITION AND RESULTS OF OPERATIONS..................... 9

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


                           PART II - OTHER INFORMATION


Item 1.   LEGAL PROCEEDINGS..................................................13

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..................................................13

Item 6.   EXHIBITS AND REPORTS ON FORM 8-K...................................14

SIGNATURE PAGE...............................................................15





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

                                      -2-
<PAGE>

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


                                                         MARCH 31,      DECEMBER 31,
($ in thousands)                                           1999            1998  
                                                       -------------   -------------
                                                        (UNAUDITED)
<S>                                                    <C>             <C> 

ASSETS
Investments
  Fixed income securities, at fair value
     (amortized cost $1,718,741 and $1,648,972)        $   1,950,660   $   1,966,067
  Mortgage loans                                             160,902         145,095
  Short-term                                                  12,441          76,127
  Policy loans                                                29,985          29,620
                                                       -------------   -------------
  Total investments                                        2,153,988       2,216,909

Deferred acquisition costs                                    90,796          87,830
Accrued investment income                                     21,751          22,685
Reinsurance recoverables                                       1,996           2,210
Cash                                                             586           3,117
Other assets                                                   8,068           9,887
Separate Accounts                                            374,545         366,247
                                                       -------------   -------------
          TOTAL ASSETS                                 $   2,651,730   $   2,708,885
                                                       =============   =============

LIABILITIES
Reserve for life-contingent contract benefits          $   1,183,074   $   1,208,104
Contractholder funds                                         730,224         703,264
Current income taxes payable                                  16,943          14,029
Deferred income taxes                                         11,618          25,449
Other liabilities and accrued expenses                        22,364          23,463
Payable to affiliates, net                                     3,167          38,835
Separate Accounts                                            374,545         366,247
                                                       -------------   -------------
          TOTAL LIABILITIES                                2,341,935       2,379,391
                                                       -------------   -------------

COMMITMENTS AND CONTINGENT LIABILITIES (NOTE 3)

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
Retained income                                              205,486         198,801
Accumulated other comprehensive income:
   Unrealized net capital gains                               56,522          82,906
                                                       -------------   -------------
          TOTAL ACCUMULATED OTHER COMPREHENSIVE
              INCOME                                          56,522          82,906
                                                       -------------   -------------
          TOTAL SHAREHOLDER'S EQUITY                         309,795         329,494
                                                       -------------   -------------
          TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY   $   2,651,730   $   2,708,885
                                                       =============   =============

<FN>

See notes to financial statements.

</FN>
</TABLE>


                                       3
<PAGE>

<TABLE>
<CAPTION>

                   ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                            STATEMENTS OF OPERATIONS



                                                          THREE MONTHS ENDED
                                                               MARCH 31,
                                                       -----------------------------
($ in thousands)                                           1999             1998
                                                       -------------   -------------
                                                                (UNAUDITED)

<S>                                                    <C>             <C>   
REVENUES
   Premiums and contract charges (net of reinsurance
     ceded of $1,164 and $848)                         $      31,251   $      26,671
   Net investment income                                      35,560          32,569
   Realized capital gains and losses                             353           1,231
                                                       -------------   -------------
                                                              67,164          60,471
                                                       -------------   -------------

COSTS AND EXPENSES
   Contract benefits (net of reinsurance recoveries
      of $537 and $359)                                       48,480          41,260
   Amortization of deferred acquisition costs                  2,179           2,085
   Operating costs and expenses                                6,141           6,011
                                                       -------------   -------------
                                                              56,800          49,356
                                                       -------------   -------------

INCOME FROM OPERATIONS BEFORE INCOME
    TAX EXPENSE                                               10,364          11,115
Income tax expense                                             3,679           3,979
                                                       -------------   -------------

NET INCOME                                             $       6,685   $       7,136
                                                       =============   =============


<FN>

See notes to financial statements.
</FN>
</TABLE>


                                       4
<PAGE>

<TABLE>
<CAPTION>


                   ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                            STATEMENTS OF CASH FLOWS


                                                               THREE MONTHS ENDED
                                                                     MARCH 31,
                                                         ------------------------------
                                                              1999             1998  
                                                         -------------    -------------
($ in thousands)                                                  (UNAUDITED)
<S>                                                      <C>              <C>    


CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                               $       6,685    $       7,136
Adjustments to reconcile net income to net cash
    provided by operating activities
      Amortization and other non-cash items                     (9,127)          (8,220)
      Realized capital gains and losses                           (353)          (1,231)
      Interest credited to contractholder funds                 13,289           10,035
      Changes in:
         Life-contingent contract benefits
           and contractholder funds                             11,935            8,662
         Deferred policy acquisition costs                      (2,770)          (2,464)
         Accrued investment income                                 934            1,863
         Income taxes payable                                    3,291             (954)
         Other operating assets and liabilities                  4,926            1,223
                                                         -------------    -------------
             Net cash provided by operating activities          28,810           16,050
                                                         -------------    -------------

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of fixed income securities                  12,436            5,278
Investment collections
        Fixed income securities                                 14,263           47,026
        Mortgage loans                                           1,018            1,986
Investment purchases
        Fixed income securities                               (117,658)         (75,356)
        Mortgage loans                                         (16,870)          (4,000)
Change in short-term investments, net                           54,740           (4,353)
Change in policy loans, net                                       (365)            (417)
                                                         -------------    -------------
             Net cash used in investing activities             (52,436)         (29,836)
                                                         -------------    -------------

CASH FLOWS FROM FINANCING ACTIVITIES
Contractholder fund deposits                                    35,571           28,429
Contractholder fund withdrawals                                (14,476)         (12,533)
                                                         -------------    -------------
             Net cash provided by financing activities          21,095           15,896
                                                         -------------    -------------

NET (DECREASE) INCREASE IN CASH                                 (2,531)           2,110
CASH AT BEGINNING OF PERIOD                                      3,117              393
                                                         -------------    -------------
CASH AT END OF PERIOD                                    $         586    $       2,503
                                                         =============    =============

<FN>


See notes to financial statements.

</FN>
</TABLE>


                                       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").  These
        financial  statements  have been prepared in conformity  with  generally
        accepted accounting principles.

              The  financials  statements and notes as of March 31, 1999 and for
        the three month periods ended March 31, 1999 and 1998 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.  These  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 10K for 1998.  The results of
        operations for the interim  periods should not be considered  indicative
        of results to be expected for the full year.

              Effective  January 1,  1999,  the  Company  adopted  Statement  of
        Position  ("SOP") 97-3,  "Accounting by Insurance and Other  Enterprises
        for Insurance-Related Assessments." The SOP provides guidance concerning
        when to recognize a liability for insurance-related  assessments and how
        those liabilities  should be measured.  Specifically,  insurance-related
        assessments  should  be  recognized  as  liabilities  when  all  of  the
        following  criteria have been met: 1) an assessment  has been imposed or
        it is  probable  that  an  assessment  will  be  imposed,  2) the  event
        obligating an entity to pay an assessment has occurred and 3) the amount
        of the  assessment  can be  reasonably  estimated.  The adoption of this
        statement  was  immaterial to the  Company's  results of operations  and
        financial position.

              To  conform  with the 1999  presentation,  certain  amounts in the
        prior years' financial statements and notes have been reclassified.


                                       6
<PAGE>


                   ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                          NOTES TO FINANCIAL STATEMENTS
                              (UNAUDITED) (cont'd)


2.      COMPREHENSIVE INCOME

               The  components  of other  comprehensive  income on a pretax  and
        after-tax basis for the three months ended March 31, are as follows:

<TABLE>
<CAPTION>

   ($ in thousands)                                     1999                                1998
                                          --------------------------------     -------------------------------
                                                                    AFTER-                              AFTER-
                                            PRETAX      TAX          TAX       PRETAX       TAX          TAX
                                            ------      ---          ---       ------       ---          ---
<S>                                       <C>         <C>         <C>        <C>          <C>          <C>   

   Unrealized capital gains and and losses:
   ---------------------------------------

    Unrealized holding losses
        arising during the period         $(84,822)   $ 29,688    $(55,134)   $ (3,895)   $  1,362    $ (2,533)
    Adjustments to unrealized capital
        gains and losses arising during
        the period:
          Deferred acquisition costs           196         (69)        127        (258)         90        (168)
          Reserves for life insurance
            policy benefits                 44,389     (15,536)     28,853       9,473      (3,315)      6,158
                                          --------    --------    --------    --------    --------    --------
            Net  unrealized holding
              gains (losses) arising
              during the period            (40,237)     14,083     (26,154)      5,320      (1,863)      3,457
                                          --------    --------    --------    --------    --------    --------
    Less:  reclassification adjustment
        for realized net capital gains
        included in net income                 354        (124)        230       1,281        (449)        832
                                          --------    --------    --------    --------    --------    --------

    Other comprehensive
       (loss) income                      $(40,591)   $ 14,207     (26,384)   $  4,039    $ (1,414)      2,625 
                                          ========    ========    --------    ========    ========    --------
                                                                       
   Net income                                                        6,685                               7,136
                                                                  --------                             -------    
            
   Comprehensive (loss) income                                    $(19,699)                            $ 9,761
                                                                  ========                             =======
</TABLE>


3.   REGULATION AND LEGAL PROCEEDINGS

          The Company is subject to the effects of a changing  social,  economic
     and regulatory  environment.  Public and regulatory initiatives have varied
     and have  included  efforts to adversely  influence  and  restrict  premium
     rates,   restrict  the  Company's   ability  to  cancel  policies,   impose
     underwriting standards and expand overall regulation.  The ultimate changes
     and eventual effects, if any, of these initiatives are uncertain.

          Various other legal and regulatory  actions are currently pending that
     involve the Company and specific aspects of its conduct of business. In the
     opinion of management,  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.



                                       7
<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 financial  statements and related 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, 1998.

       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  ("Corporation"),
markets  life  insurance  and savings  products  in the State of New York.  Life
insurance products include traditional life products such as whole life and term
insurance,  as well as universal life. Savings products consist of fixed annuity
products,  including  indexed,  market value adjusted and structured  settlement
annuities, as well as variable annuities. The Company's products are distributed
through a  combination  of Allstate  agents  (which  include life  specialists),
banks,  independent insurance agents, brokers and direct marketing.  The Company
has identified itself as a single segment entity.


FINANCIAL HIGHLIGHTS
($ in thousands)
                                                             THREE MONTHS
                                                             ENDED MARCH 31,
                                                        -----------------------
                                                           1999         1998
                                                        ----------   ----------

Statutory premiums and deposits                         $   62,922   $   58,126
                                                        ==========   ==========

Investments                                             $2,153,988   $1,964,452
Separate Account assets                                    374,545      340,160
                                                        ----------   ----------

Investments, including Separate Account assets          $2,528,533   $2,304,612
                                                        ==========   ==========

Premiums and contract charges                           $   31,251   $   26,671

Net investment income                                       35,560       32,569

Contract benefits                                           48,480       41,260

Operating costs and expenses                                 8,320        8,084
                                                        ----------   ----------

Income from operations                                      10,011        9,896

Income tax expense on operations                             3,556        3,552
                                                        ----------   ----------

Operating income                                             6,455        6,344

Net realized capital gains and losses, net of tax (1)          230          792
                                                        ----------   ----------

Net income                                              $    6,685   $    7,136
                                                        ==========   ==========


(1) After the effect of the related amortization of deferred policy acquisitions
costs.



                                       8
<PAGE>
                  ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                    (cont'd)

       Statutory premiums and deposits, which includes premiums and deposits for
all products,  increased 8.3% for the  three-month  period ended March 31, 1999,
over the comparable  period in 1998.  Increased  sales of structured  settlement
annuities and fixed  annuities were partially  offset by lower variable  annuity
sales.  Fixed annuity sales for the first quarter of 1999  increased  21.5% over
prior  year  due  to  the   introduction  of  new  products  and  new  marketing
partnerships in the broker and banking distribution  channels.  Variable annuity
sales  decreased  34.6% for the first three months of 1999  compared to the same
period last year due to increased market competition in the broker  distribution
channel.

       Under generally accepted accounting principles ("GAAP"), revenues exclude
deposits on most annuity  contracts  and premiums on  universal  life  insurance
policies, and will vary with the mix of business sold during the period. For the
first quarter of 1999,  premiums and contract  charges under GAAP increased $4.6
million to $31.3 million due to increased  premiums from  structured  settlement
annuities  with life  contingencies  and  universal  life and  variable  annuity
contract charges.

       Pretax net investment  income increased 9.2% in the first quarter of 1999
compared  with the same  period  last year as higher  investment  balances  were
partially offset by lower investment yields. Lower investment yields are due, in
part, to the investment of proceeds from calls and maturities and the investment
of positive  cash flows from  operations  in  securities  yielding less than the
average portfolio rate. In relatively low interest rate environments, funds from
maturing  investments may be reinvested at interest rates lower than those which
prevailed when the funds were previously invested, resulting in lower investment
income.   Investments  at  March  31,  1999,  excluding  Separate  Accounts  and
unrealized  gains on fixed  income  securities,  grew 11.5% from the same period
last year.

       Operating  income  increased  slightly to $6.5  million  during the first
three  months of 1999  compared  to the same  period  last  year.  Increases  in
contract  charges and net investment  income were  partially  offset by a slight
decline in mortality experience and higher expenses.

        Realized capital gains and losses, after-tax, were $230 thousand for the
three  months  ended March 31,  1999  compared  to $792  thousand  for the first
quarter  of 1998.  Higher  net  capital  gains in 1998  were  due  primarily  to
prepayments received on privately-placed corporate obligations.


INVESTMENTS

       The  composition  of the  investment  portfolio  at March  31,  1999,  at
financial statement carrying values, is presented in the table below:

                                                               PERCENT
($ in thousands)                                               TO TOTAL
                                                               --------

Fixed income securities (1)             $        1,950,660        90.6%
Mortgage loans                                     160,902         7.4
Policy loans                                        29,985         1.4
Short-term                                          12,441          .6
                                        ------------------     -------

    Total                               $        2,153,988       100.0%
                                        ==================     =======


(1)  Fixed income securities are carried at fair value. Amortized cost for these
     securities was $1,718,741 at March 31, 1999.


                                       9
<PAGE>
                  ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                    (cont'd)

       Total  investments were $2.15 billion at March 31, 1999 compared to $2.22
billion at December 31, 1998. Positive cash flows generated from operations were
more than offset by lower  unrealized  gains on fixed  income  securities  and a
decrease  in short term  investments.  The  decrease in  short-term  investments
resulted from the  settlement  of an  intercompany  balance.  At March 31, 1999,
unrealized  capital gains on the fixed income  securities  portfolio were $231.9
million compared to $317.1 million at December 31, 1998.

       At March  31,  1999,  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 ("NAIC")
rating of 1 or 2, a Moody's rating of Aaa, Aa, A or Baa, or a comparable Company
internal rating.


SEPARATE ACCOUNTS

       Separate  Account assets and  liabilities  increased to $374.5 million at
March 31, 1999 from $366.2  million at December  31, 1998 due  primarily to $9.4
million of  flexible  premium  deferred  variable  annuity  sales and  favorable
performance of the Separate Account investment  portfolios,  partially offset by
variable annuity contract surrenders and withdrawals.


LIQUIDITY AND CAPITAL RESOURCES

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

       The maturity  structure of the Company's fixed income  securities,  which
represent  90.6% 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 product portfolio,  primarily fixed deferred annuity and universal
life insurance products, is subject to discretionary surrender and withdrawal by
contractholders.  Management believes its assets are sufficiently liquid to meet
future  obligations  to its  life  and  annuity  contractholders  under  various
interest rate scenarios.

       Surrenders and withdrawals  were $11.3 million for the three month period
ended March 31, 1999, compared to $15.1 million for the same period in 1998.


YEAR 2000

     The Company is  dependent  upon  certain  services  provided for it by the
Corporation  including  computer-related  systems, and systems and equipment not
typically  thought of as  computer-related  (referred to as "non-IT").  For this
reason,  the Company is reliant upon the Corporation for the  establishment  and
maintenance of its computer-related systems and non-IT.

     The Corporation is heavily  dependent upon complex computer systems for all
phases of its operations,  including  customer  service,  insurance  processing,
underwriting,  loss reserving,  investments and other enterprise systems.  Since
many of the Corporation's  older computer  software programs  recognize only the
last two  digits  of the year in any date,  some  software  may fail to  operate
properly  in or after  the  year  1999,  if the  software  is not  reprogrammed,
remediated,  or replaced,  ("Year 2000").  Also,  non-IT often contains embedded
hardware  or  software  that  may  have a Year  2000  sensitive  component.  The
Corporation  believes that many of its  counterparties  and suppliers  also have
Year 2000 issues and non-IT issues which could affect the Corporation.


                                       10
<PAGE>
                  ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                    (cont'd)

      In 1995, the Corporation  commenced a plan consisting of four phases which
are intended to mitigate  and/or prevent the adverse effects of Year 2000 issues
on its systems:  1) inventory and assessment of affected  systems and equipment,
2) remediation and compliance of systems and equipment  through  strategies that
include  the  replacement  or  enhancement  of  existing  systems,  upgrades  to
operating systems already covered by maintenance agreements and modifications to
existing  systems to make them Year 2000 compliant,  3) testing of systems using
clock-forward  testing  for both  current  and future  dates and for dates which
trigger  specific  processing,  and 4)  contingency  planning which will address
possible   adverse   scenarios  and  the  potential   financial  impact  to  the
Corporation's results of operations, liquidity or financial position.

      The  Corporation  believes  that  the  first  three  steps  of this  plan,
assessment,  remediation and testing,  including  clock-forward testing which is
being performed on the Corporation's systems and non-IT, are mostly complete for
the  Corporation's  critical  systems.  The  Corporation  is  relying  on  other
remediation techniques for its midrange and personal computer environments,  and
certain mainframe applications.

      Certain  other  processing  systems  are planned to be  remediated  by the
middle of 1999, and the  implementation  and rollout of the remediated  personal
computer  environment  will  continue  through the third  quarter of 1999.  Some
systems and non-IT  related to  discontinued  or  non-critical  functions of the
Corporation are planned to be abandoned by the end of 1999.

      The  Corporation  is  currently in the process of  developing  contingency
plans in the event that the systems  supporting  key processes are not Year 2000
compliant in or after the year 1999. Management believes these contingency plans
should be completed by mid-1999 with testing of these plans conducted throughout
the second half of 1999.  Management  has also begun to  identify  and model the
impacts of the most reasonably  likely worst case  scenarios.  Until these plans
are  complete,  management  is  unable  to  determine  an  estimate  of the most
reasonably likely worst case scenario due to issues relating to the Year 2000.

     In addition,  the  Corporation is actively  working with its major external
counterparties  and  suppliers  to  assess  their  compliance  efforts  and  the
Corporation's  exposure to both their Year 2000 issues and non-IT  issues.  This
assessment  has  included  the  solicitation  of  external   counterparties  and
suppliers,  evaluating responses received and testing third party interfaces and
interactions to determine compliance.  Currently,  the Corporation has solicited
and  has  received  responses  from  the  majority  of  its  counterparties  and
suppliers.  These responses  generally state that they believe they will be Year
2000  compliant  and that no  transactions  will be affected.  However,  certain
vendors are also in ongoing  assessment  and testing of their  products  whereby
they are currently unable to identify all potential problems in certain products
which are used by the Corporation.  The Corporation  believes that these vendors
will make no  statements  regarding  their  Year 2000  readiness  other  than to
publish declarations addressing specific compliance issues identified with their
products.  The  Corporation  has begun to work with  these  key  vendors  and is
developing   procedures  in  order  to  stay  aware  of  any  compliance  issues
encountered by these vendors.  The  Corporation has also decided to test certain
interfaces  and  interactions  to  gain  additional  assurance  on  third  party
compliance.  If key  vendors are  determined  to be unable to meet the Year 2000
requirement,  the Corporation is preparing contingency plans that will allow the
Corporation  to continue  to sell its  products  and to service  its  customers.
Management believes these contingency plans should be completed by mid-1999. The
Corporation currently does not have sufficient  information to determine whether
or not all of its external counterparties and suppliers will be Year 2000 ready.



                                       11
<PAGE>
                  ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                    (cont'd)

      The Corporation may be exposed to the risk that the issuers of investments
in  its  portfolios  will  be  adversely  impacted  by  Year  2000  issues.  The
Corporation assesses the impact which Year 2000 issues have on the Corporation's
investments  as part of due  diligence for proposed new  investments  and in its
ongoing review of all current portfolio  holdings.  Any recommended actions with
respect to  individual  investments  are  determined  by taking into account the
potential impact of Year 2000 on the issuer. The Corporation  currently does not
have sufficient  information to determine the impacts of such exposures on their
results of operations, liquidity or financial position.

      The  Corporation  presently  believes  that it will  resolve the Year 2000
issue in a timely  manner.  Year 2000 costs are expensed as incurred,  therefore
the  majority of the expenses  related to this project have been  incurred as of
March 31, 1999. The Corporation  estimates that approximately  $125.0 million in
costs will be incurred between the years of 1995 and 2000. These amounts include
costs directly  related to fixing Year 2000 issues,  such as modifying  software
and hiring Year 2000  solution  providers,  as well as costs to replace  certain
non-compliant systems which would not have been otherwise replaced. A portion of
these  costs will be incurred by the Company on a pro rata basis of usage of the
computer-related  systems and non-IT,  as compared to the usage of all  entities
which share these services with the Corporation.  These amounts are not expected
to be material to the results of operations of the Company.


PENDING ACCOUNTING STANDARDS

     In June 1998, the Financial  Accounting Standards Board issued Statement of
Financial  Accounting  Standard  ("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.  The  requirements are effective for fiscal years beginning
after June 15, 1999. Earlier  application is encouraged but is only permitted as
of the beginning of any fiscal quarter after issuance.  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 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  which is not
effective as a hedge will be  immediately  recognized  in earnings.  The Company
expects  to  adopt  SFAS No.  133 as of  January  1,  2000.  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.


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.


                                       12


                   
<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


                                       13

<PAGE>




 (b) Reports on 8-K

            No reports on Form 8-K were filed during the first quarter of 1999.




                                      14
<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 1999.



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






/s/ LOUIS G. LOWER, II               CHAIRMAN OF THE BOARD OF DIRECTORS
------------------------               AND CHIEF EXECUTIVE OFFICER
 LOUIS G. LOWER, II                  (Principal Executive Officer)



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





                                      15

<PAGE>
Exhibit Index

Exhibit No.                Exhibit

        (27)          Financial Data Scehdule