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: June 30, 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 June 30, 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
            June 30, 1997(Unaudited)and December 31, 1996.....................3

            Statements of Operations
            Three Months Ended June 30, 1997 and June 30, 1996 and
            Six Months Ended June 30, 1997 and June 30, 1996
            (Unaudited).......................................................4

            Statements of Cash Flows
            Six Months Ended June 30, 1997
            and June 30, 1996 (Unaudited).....................................5

            Notes to Financial Statements(Unaudited)..........................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..................................................11

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 .................................................11

Item 6.   EXHIBITS AND REPORTS ON FORM 8-K...................................11

SIGNATURE PAGE...............................................................13





*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>

                                                                         June 30,                December 31,
($ in thousands)                                                           1997                      1996
                                                                        -----------               ------------
                                                                        (Unaudited)
<S>                                                                     <C>                        <C>
ASSETS
   Investments
       Fixed income securities, at fair value
           (amortized cost $1,459,320
           and $1,378,155)                                               $1,569,737                $1,500,783
       Mortgage loans                                                        98,781                    84,657
       Policy loans                                                          26,227                    25,359
       Short-term                                                             9,079                    25,855
                                                                         ----------                ----------
         Total investments                                                 1,703,824                 1,636,654

   Deferred acquisition costs                                                65,796                    61,559
   Accrued investment income                                                 21,528                    20,321
   Reinsurance recoverables                                                   2,012                     2,566
   Cash                                                                       7,336                     1,027
   Other assets                                                               6,730                     7,489
   Separate Accounts                                                        290,425                   260,668
                                                                         ----------                ----------
          Total assets                                                   $2,097,651                $1,990,284
                                                                         ==========                ==========

LIABILITIES
   Reserve for life-contingent contract benefits                         $  951,055                $  911,457
   Contractholder funds                                                     591,422                   572,480
   Income taxes payable                                                         537                         -
   Deferred income taxes                                                      1,685                     3,692
   Other liabilities and accrued expenses                                    15,397                     6,405
   Net payable to affiliates                                                  5,705                     2,515
   Separate Accounts                                                        290,425                   260,668
                                                                         ----------                ----------
          Total liabilities                                               1,856,226                 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                                              33,649                    36,852
   Retained income                                                          159,989                   148,428
                                                                         ----------                ----------
          Total shareholder's equity                                        241,425                   233,067
                                                                         ----------                ----------
          Total liabilities and shareholder's equity                     $2,097,651                $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              Six Months Ended
                                                                   June 30,                        June 30,
                                                            -------------------             -------------------  
($ in thousands)                                            1997           1996             1997           1996
                                                            ----           ----             ----           ----
                                                                                (Unaudited)
<S>                                                        <C>            <C>              <C>            <C>   
REVENUES
Life and annuity premiums (net of
    reinsurance ceded of $759 and $610;
    $1,450 and $1,194)                                     $  26,146     $  21,813        $   46,807       $  44,916
Contract charges                                               7,114         6,604            13,982          12,305
Net investment income                                         31,042        27,830            61,242          55,424
Realized capital gains and losses                                (26)          420               (75)            351
                                                            --------      --------         ---------        --------
                                                              64,276        56,667           121,956         112,996
                                                            --------      --------         ---------        --------

COSTS AND EXPENSES
Provision for policy benefits (net  of
    reinsurance recoverable of $385 and
    $1,305, $683 and $2,170)                                  47,899          42,372            89,865        85,389
Amortization of deferred policy acquisition
    costs                                                      1,849           1,818             3,819         2,965
Operating costs and expenses                                   5,430           3,941            10,256         8,414
                                                             -------        --------          --------      --------
                                                              55,178          48,131           103,940        96,768
                                                             -------        --------          --------      --------

INCOME BEFORE INCOME TAX
    EXPENSE                                                    9,098           8,536            18,016        16,228
INCOME TAX EXPENSE                                             3,246           3,223             6,455         5,990
                                                             -------         -------          --------       -------
NET INCOME                                                 $   5,852       $   5,313        $   11,561     $  10,238
                                                           =========       =========        ==========     =========
                            
</TABLE>

See notes to financial statements.



                                   -4-


<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                                      Six Months Ended
                                                                                          June 30,
                                                                                          --------   
                                                                                   1997                1996
                                                                                   ----                ---- 
($ in thousands)                                                                         (Unaudited)
<S>                                                                            <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                                                     $  11,561            $  10,238
Adjustments to reconcile net income to net cash
     provided by operating activities
        Realized capital gains and losses                                             75                 (351)
        Depreciation, amortization and other non-cash items                      (15,086)             (12,571)
        Interest credited to contractholder funds                                 16,382               11,326
        Increase in reserve for life-contingent contract
           benefits and contractholder funds                                      35,476               38,824
        Increase in deferred policy acquisition costs                             (4,153)              (3,083)
        Increase in accrued investment income                                     (1,207)                (219)
        Change in deferred income taxes                                             (283)              (3,128)
        Change in other operating assets and liabilities                          14,100                   75
                                                                               ---------            --------- 
              Net cash provided by operating activities                           56,865               41,111
                                                                               ---------            ---------

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of fixed income securities                                    11,455                    -
Investment collections
     Fixed income securities                                                      61,096               38,404
     Mortgage loans                                                                1,204                3,360
Investment purchases
     Fixed income securities                                                    (139,472)             (65,089)
     Mortgage loans                                                              (15,500)                   -
Change in short-term investments, net                                             16,776              (24,195)
Change in policy loans, net                                                         (868)              (1,135)
                                                                               ---------            ---------
              Net cash used in investing activities                              (65,309)             (48,655)
                                                                               ---------            ---------

CASH FLOWS FROM FINANCING ACTIVITIES
Contractholder fund deposits                                                      39,434               31,615
Contractholder fund withdrawals                                                  (24,681)             (23,586)
                                                                               ---------             --------
              Net cash provided by financing activities                           14,753                8,029
                                                                               ---------             --------

NET INCREASE IN CASH                                                               6,309                  485
CASH AT BEGINNING OF PERIOD                                                        1,027                1,472
                                                                               ---------            ---------
CASH AT END OF PERIOD                                                          $   7,336            $   1,957
                                                                               =========            =========





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 June 30, 1997, the
        statements of operations for the three-month and six-month periods ended
        June 30, 1997 and 1996, and the statements of cash flows for the
        six-month periods ended June 30, 1997 and 1996 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 10K 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.

<TABLE>
<CAPTION>

RESULTS OF OPERATIONS
                                                          Three Months Ended                     Six Months Ended
                                                              June 30,                               June 30,
($ in thousands)                                      1997                1996                 1997               1996
<S>                                              <C>                  <C>                 <C>                  <C>
Statutory premiums and deposits                  $     57,552         $     44,541        $    103,764         $     89,359
                                                 ============         ============        ============         ============

Investments                                      $  1,703,824         $  1,462,487        $  1,703,824         $  1,462,487
Separate Account assets                               290,425              238,347             290,425              238,347
                                                 ------------         ------------        ------------         ------------       
Investments including Separate
   Account assets                                $  1,994,249         $  1,700,834        $  1,994,249         $  1,700,834
                                                 ============         ============        ============         ============

Premiums and contract charges (net
    of reinsurance)                              $     33,260         $     28,417        $     60,789         $     57,221
Net investment income                                  31,042               27,830              61,242               55,424
Contract benefits (net of reinsurance)                 47,899               42,372              89,865               85,389
Operating costs and expenses                            7,279                5,759              14,075               11,379
                                                 ------------         ------------        ------------          -----------

Income from operations                                  9,124                8,116              18,091               15,877
Income tax expense on operations                        3,255                3,076               6,481                5,867
                                                 ------------         ------------        ------------          -----------

Net operating income                                    5,869                5,040              11,610               10,010
Realized capital gains and losses,
    after tax                                             (17)                 273                 (49)                 228
                                                 ------------         ------------        ------------          -----------     
Net income                                       $      5,852         $      5,313        $     11,561          $    10,238
                                                 ============         ============        =============         ============


</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 $13.0 million or 29.1% and $14.4 million or 16.1% for the
second quarter and the six-month period ending June 30, 1997, respectively, when
compared to the same period in 1996. The increases are primarily due to higher
sales of structured settlement annuities, variable annuities and interest
sensitive life insurance products.

        Premiums and contract charges under generally accepted accounting
principles ("GAAP") increased $4.8 million or 17.0% and $3.6 million or 6.2% for
the three-month and six-month periods ending June 30, 1997, respectively when
compared to the same period last year. Under GAAP, revenues exclude deposits on
most annuities and premiums on universal life insurance policies. The increase
was due to higher sales of structured settlement annuities with life
contingencies and higher renewal of life premiums. GAAP premium and contract
charges will vary with the mix of products sold during the period.

Net operating income

        Pretax net investment income increased 11.5% and 10.5% for the
three-month and six-month periods ended June 30, 1997, respectively, primarily
due to growth in investments from positive cash flows from operations.

        Operating expenses including amortization of deferred policy acquisition
costs increased $1.5 million or 26.4% and $2.7 million or 23.7% for the
three-month and six-month periods ended June 30, 1997. The increase resulted
primarily from an increase in the amortization of deferred policy acquisition
costs related to growth in customer policies and a larger maturing block of
business, and higher general expenses.

        Net operating income increased 16.5% for the second quarter and 15.9%
for the six-month period ending June 30, 1997. Net operating income increased
primarily due to favorable mortality margins on the structured settlement
annuity business and higher investment margins due to additional sales of
structured settlement annuities.

Realized capital gains and losses

        Net realized capital gains after tax were $17 thousand and $49 thousand
for the three-month and the six-month periods, respectively. During both periods
ended June 30, 1997, gains realized from the sales of fixed income securities
were partially offset by losses on mortgage loans.


                        -8-


<PAGE>

INVESTMENTS

        The composition of the investment portfolio at June 30, 1997 is
presented at carrying value in the table below.

<TABLE>
<CAPTION>

        ($ in thousands)
                                                                        Percent
                                                                        to total
        <S>                                     <C>                     <C>
        Fixed income securities                 $1,569,737                92.2%
        Mortgage loans                              98,781                 5.8
        Policy loans                                26,227                 1.5
        Short-term                                   9,079                 0.5
                                                ----------               ------

              Total                             $1,703,824               100.0%
                                                ==========               ======

</TABLE>

        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 increased to $1.7 billion
at June 30, 1997 from $1.64 billion at December 31, 1996 as the investment of
positive cash flows generated from operating activities was offset in part by a
$12.2 million decrease in unrealized gains on the fixed income securities
portfolio. The decrease in the unrealized gain position is primarily
attributable to rising interest rates.

        The Company's fixed income securities portfolio has 99.2% rated
investment grade. Investment grade 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 provided by operating activities, investment collections and the
investing of part of the short term investment balance was used to purchase
fixed income securities and mortgage loans.

        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.


                                  -9-

<PAGE>

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

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."

        Among other things, 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, the Company's
fixed income securities. 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.

        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, equity and fixed income securities and derivative
financial instruments. The quantitative and qualitative disclosures are
effective for the Company's year-end 1997 reporting.

        In June 1997,  the  Financial  Accounting  Standards  Board  issued
SFAS No. 130  "Reporting  Comprehensive Income" and SFAS No. 131 "Disclosures
About Segments of an Enterprise and Related Information."

        SFAS No. 130 requires the presentation of comprehensive income in the
financial statements. Comprehensive income is a measurement of all changes in
equity that result from transactions and other economic events other than
transactions with stockholders. The requirements of this statement will be
adopted in January 1998.

        SFAS No. 131 redefines how segments are determined and requires
additional segment disclosures for both annual and quarterly reporting. Under
this statement, segments are determined using the management approach for
financial statement reporting. The management approach is how an enterprise
makes operating decisions and assesses performance of its businesses. The
requirements of this statement will be adopted in December 1998.


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.


                                 -10-

<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 second quarter of 1997.



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


                                -11-

<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.


                                 -12-


<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 11th day of August 1997.



                           ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                                      (Registrant)






/s/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