UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

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, 2001

                                       OR

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


Commission file number: 333-44630


                   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 July 31, 2001; there were 100,000 shares of common capital stock
outstanding, par value $25 per share all of which shares are held by Allstate
Life Insurance Company.

<PAGE>


                         PART I - FINANCIAL INFORMATION


Item  1.   FINANCIAL STATEMENTS

            Statements of Operations for the Three Month and
            Six Month Periods Ended June 30, 2001 and
            2000 (unaudited)................................................ 3

            Statements of Financial Position as of
            June 30, 2001 (unaudited) and December 31, 2000................. 4

            Statements of Cash Flows for the
            Six Month Periods Ended June 30, 2001 and
            2000 (unaudited)................................................ 5

            Notes to Financial Statements.(unaudited)....................... 6

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

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



                           PART II - OTHER INFORMATION


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

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

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

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

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

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

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





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


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


<TABLE>
<CAPTION>

                                                                        Three Months Ended                Six Months Ended
                                                                             June 30,                         June 30,
                                                                   -----------------------------    ---------------------------
                                                                   -----------------------------    ---------------------------
(in thousands)                                                        2001               2000         2001              2000
                                                                   -------------     -----------    ------------    -----------
                                                                   -------------     -----------    ------------    -----------
                                                                            (Unaudited)                      (Unaudited)
<S>                                                                <C>               <C>            <C>             <C>
Revenues
Premiums                                                           $   26,779        $    14,852    $    46,993     $   42,432
Contract charges                                                       10,117             10,318         20,471         21,140
Net investment income                                                  50,209             43,924         98,695         84,490
Realized capital gains and losses                                      (3,229)            (2,211)        (2,452)        (2,911)
                                                                   ----------        -----------    -----------     ----------
                                                                       83,876             66,883        163,707        145,151
                                                                   ----------        -----------    -----------     ----------

Costs and expenses
Contract benefits                                                      63,865             45,680        119,648        105,200
Amortization of deferred policy acquisition costs                       2,089              2,942          3,785          5,475
Operating costs and expenses                                            8,050              4,306         15,794         10,806
                                                                   ----------        -----------     ----------     ----------
                                                                       74,004             52,928        139,227        121,481
                                                                   ----------        -----------     ----------     ----------

Income from operations before income tax expense
   and cumulative effect of change in accounting principle              9,872             13,955         24,480         23,670

Income tax expense                                                      3,402              4,470          8,457          7,830
                                                                   ----------        -----------     ----------     ----------

Income before cumulative effect of change
    in accounting principle                                             6,470              9,485         16,023         15,840

Cumulative effect of change in accounting for derivative
     financial instruments, after-tax                                       -                  -           (147)             -
                                                                   ----------        -----------     ----------     ----------
Net income                                                         $    6,470        $     9,485     $   15,876     $   15,840
                                                                   ==========        ===========     ==========     ==========

</TABLE>






                   See notes to financial statements.


                                    3

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

<TABLE>
<CAPTION>

                                                                            June 30,              December 31,
                                                                              2001                    2000
                                                                        ------------------     -------------------
                                                                        ------------------     -------------------
                                                                           (Unaudited)
(in thousands, except par value data)
<S>                                                                          <C>                     <C>
Assets
Investments
   Fixed income securities, at fair value
      (amortized cost $2,481,663 and $2,260,087)                              $ 2,693,767             $ 2,476,132
   Mortgage loans                                                                 211,962                 207,857
   Short-term                                                                     121,962                  58,224
   Policy- loans                                                                   32,370                  31,772
                                                                              -----------             -----------
         Total investments                                                      3,060,061               2,773,985

Cash                                                                                1,315                   2,162
Deferred policy acquisition costs                                                 143,623                 124,601
Accrued investment income                                                          33,068                  32,422
Reinsurance recoverables, net                                                       1,184                   1,269
Other assets                                                                        6,800                   7,980
Separate Accounts                                                                 582,462                 560,089
                                                                              -----------             -----------
         Total assets                                                         $ 3,828,513             $ 3,502,508
                                                                              ===========             ===========

Liabilities
Reserve for life-contingent contract benefits                                 $ 1,274,005             $ 1,226,349
Contractholder funds                                                            1,280,482               1,107,495
Current income taxes payable                                                       12,830                  11,723
Deferred income taxes                                                              58,075                  53,181
Other liabilities and accrued expenses                                            182,145                 117,304
Payable to affiliates, net                                                          3,260                   3,556
Separate Accounts                                                                 582,462                 560,089
                                                                              -----------             -----------
         Total liabilities                                                      3,393,259               3,079,697
                                                                              -----------             -----------

Commitments and Contingent Liabilities (Note 3)

Shareholder's equity
Common stock, $25 par value, 100,000 shares
      authorized, issued and outstanding                                            2,500                   2,500
Additional capital paid-in                                                         45,787                  45,787
Retained income                                                                   272,158                 256,282

Accumulated other comprehensive income:
    Unrealized net capital gains amd net losses on
     derivative financial instruments                                             114,809                 118,242
                                                                              -----------              ----------
         Total accumulated other comprehensive income                             114,809                 118,242
                                                                              -----------              ----------
         Total shareholder's equity                                               435,254                 422,811
                                                                              -----------              ----------
         Total liabilities and shareholder's equity                           $ 3,828,513             $ 3,502,508
                                                                              ===========             ===========
</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,
                                                                  ------------------------------------------
                                                                  ------------------------------------------
(in thousands)                                                          2001                    2000
                                                                  ------------------     -------------------
                                                                  ------------------     -------------------
                                                                                 (Unaudited)
<S>                                                                    <C>                     <C>
Cash flows from operating activities
Net income                                                             $     15,876            $     15,840
Adjustments to reconcile net income to net cash
    provided by operating activities
       Amortization and other non-cash items                                (24,681)                (21,223)
       Realized capital gains and losses                                      2,452                   2,911
       Interest credited to contractholder funds                             26,184                  20,162
       Changes in:
           Life-contingent contract benefits and
               contractholder funds                                          38,740                  31,741
           Deferred policy acquisition costs                                (25,264)                (22,036)
           Income taxes payable                                               1,106                   2,848
           Other operating assets and liabilities                            10,312                  (2,111)
                                                                       ------------            ------------
               Net cash provided by operating activities                     44,725                  28,132
                                                                       ------------            ------------

Cash flows from investing activities
Proceeds from sales of fixed income securities                              122,634                  94,583
Investment collections
       Fixed income securities                                               38,459                  21,727
       Mortgage loans                                                        11,376                   6,179
Investment purchases
       Fixed income securities                                             (332,910)               (324,537)
       Mortgage loans                                                       (15,500)                (30,333)
Change in short-term investments, net                                       (29,260)                 31,589
Change in policy loans, net                                                    (990)                   (412)
                                                                       ------------            ------------
               Net cash used in investing activities                       (206,191)               (201,204)
                                                                       ------------            ------------

Cash flows from financing activities
Contractholder fund deposits                                                261,791                 235,462
Contractholder fund withdrawals                                            (101,172)                (60,801)
                                                                       ------------            ------------
               Net cash provided by financing activities                    160,619                 174,661
                                                                       ------------            ------------

Net (decrease) increase in cash                                                (847)                  1,589
Cash at beginning of period                                                   2,162                   1,135
                                                                       ------------            ------------
Cash at end of period                                                  $      1,315            $      2,724
                                                                       ============            ============

</TABLE>


              See notes to financial statements.

                              5

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



1.   Basis of Presentation

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

     The financial  statements  and notes as of June 30, 2001, and for the three
month and six month periods  ended June 30, 2001 and 2000,  are  unaudited.  The
financial  statements  reflect  all  adjustments   (consisting  only  of  normal
recurring  accruals) which are, in the opinion of management,  necessary for the
fair  presentation  of the financial  position,  results of operations  and cash
flows for the interim periods. The financial statements and notes should be read
in conjunction  with the financial  statements and notes thereto included in the
Allstate Life Insurance Company of New York Annual Report on Form 10-K for 2000.
The results of  operations  for the  interim  periods  should not be  considered
indicative of results to be expected for the full year.

New accounting standards

     The Company adopted the provisions of Financial  Accounting Standards Board
("FASB")   Statement  of  Financial   Accounting   Standard  ("SFAS")  No.  133,
"Accounting  for Derivative  Instruments and Hedging  Activities,"  and SFAS No.
138,  "Accounting  for  Certain  Derivative   Instruments  and  Certain  Hedging
Activities,"  as of January 1, 2001. The impact of SFAS No. 133 and SFAS No. 138
(the "statements") to the Company was a loss of $147 thousand, after-tax, and is
reflected  as a  cumulative  effect  of change in  accounting  principle  on the
Statements of Operations.

     The  statements  require that all  derivatives be recognized on the balance
sheet at fair  value.  Derivatives  that are not hedges must be adjusted to fair
value through Net 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 Net income or recognized in Accumulated other comprehensive
income until the hedged item is recognized in Net income.






                                       6

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



2.   Comprehensive Income

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

                                                                         Three months ended June 30,
                                            ---------------------------------------------------------------------------
                                            ---------------------------------------------------------------------------
   (in thousands)                                          2001                                   2000
                                            ------------------------------------ --------------------------------------

                                                                      After-                                 After-
                                               Pretax       Tax        tax          Pretax        Tax         tax
<S>                                           <C>          <C>       <C>         <C>            <C>         <C>
   Unrealized capital gains and losses
   and net losses on derivative financial
   instruments:
     Unrealized  holding gains (losses)
     arising during the period                $ (18,934)   $  6,627  $ (12,307)  $ (29,731)     $  10,406   $ (19,325)
     Less:  reclassification adjustments         (2,837)        993     (1,844)     (2,122)           743      (1,379)
                                              ---------    --------  ---------   ---------      ---------   ---------
   Unrealized net capital gains and losses      (16,097)      5,634    (10,463)    (27,609)         9,663     (17,946)

     Net losses on derivative financial
     instruments arising during the period         (626)        219       (407)          -              -           -
     Less: reclassification adjustments            (392)        137       (255)          -              -           -
                                              ---------    --------  ---------   ---------      ---------   ---------
   Net losses on derivative financial
   instruments                                     (234)         82       (152)          -              -           -
                                              ---------    --------  ---------   ---------      ---------   ---------
   Other comprehensive income (loss)          $ (16,331)   $  5,716  $ (10,615)  $ (27,609)     $   9,663     (17,946)
                                              =========    ========              =========      =========
   Net income                                                            6,470                                  9,485
                                                                     ---------                              ---------
   Comprehensive (loss)                                              $  (4,145)                             $  (8,461)
                                                                     =========                              =========


                                                                         Six months ended June 30,
                                            ---------------------------------------------------------------------------
                                            ---------------------------------------------------------------------------
   (in thousands)                                          2001                                  2000
                                            ------------------------------------ --------------------------------------

                                                                      After-                                 After-
                                               Pretax       Tax        tax          Pretax        Tax         tax

   Unrealized capital gains and losses
   and net losses on derivative financial
   instruments:
     Unrealized holding gains (losses)
   arising during the period                  $  (7,341)   $  2,570   $  (4,771) $   (17,036)   $  5,963    $ (11,073)
     Less:  reclassification adjustments         (2,059)        721      (1,338)      (2,757)        965       (1,792)
                                              ---------    --------   ---------  -----------    --------    ---------
   Unrealized net capital gains and losses       (5,282)      1,849      (3,433)     (14,279)      4,998       (9,281)

     Net losses on derivative financial
     instruments arising during the period         (392)        137        (255)           -           -            -
     Less: reclassification adjustments            (392)        137        (255)           -           -            -
                                              ---------    --------   ---------  -----------    --------    ---------
   Net losses of derivative financial
   instruments                                        -           -           -            -           -            -
                                              ---------    --------   ---------  -----------    --------    ---------
   Other comprehensive income (loss)          $  (5,282)   $  1,849   $  (3,433) $   (14,279)   $  4,998       (9,281)
                                              =========    ========              ===========    ========
   Net income                                                            15,876                                15,840
                                                                      ---------                             ---------
   Comprehensive income                                               $  12,443                             $   6,559
                                                                      =========                             =========
</TABLE>


                                       7

<PAGE>

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


3.   Regulation and Legal Proceedings

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

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




                                       8
<PAGE>

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

4.   Reinsurance

     The Company  purchases  reinsurance to limit aggregate and single losses on
large  risks.  The Company  continues  to have  primary  liability as the direct
insurer for risks reinsured.  Estimating  amounts of reinsurance  recoverable is
impacted by the  uncertainties  involved in the  establishment of loss reserves.
Failure of reinsurers to honor their  obligations  could result in losses to the
Company.  The Company cedes a portion of the mortality risk on certain term life
policies with a pool of reinsurers.

     Amounts  recoverable  from reinsurers are estimated based upon  assumptions
consistent  with  those  used in  establishing  the  liabilities  related to the
underlying reinsured contracts. No single reinsurer had a material obligation to
the Company  nor is the  Company's  business  substantially  dependent  upon any
reinsurance contract.

<TABLE>
<CAPTION>
                                                               Three months ended                  Six months ended
                                                                    June 30,                           June 30,
                                                         -------------------------------    -------------------------------
                                                         -------------------------------    -------------------------------
(in thousands)                                                 2001             2000              2001             2000
                                                         ------------      -------------    -------------     -------------
<S>                                                      <C>               <C>               <C>              <C>
Premiums and contract charges
Direct                                                   $     38,137      $    26,114       $     69,748     $     65,556
Assumed - non-affiliate                                           176              298                372              628
Ceded
   Affiliate                                                   (1,216)          (1,015)            (2,235)          (2,164)
   Non-affiliate                                                 (201)            (227)              (421)            (448)
                                                         ------------      -----------       ------------     ------------
      Premiums and contract charges, net of reinsurance  $     36,896      $    25,170       $     67,464     $     63,572
                                                         ============      ===========       ============     ============



                                                               Three months ended                  Six months ended
                                                                    June 30,                           June 30,
                                                         -------------------------------    -------------------------------
                                                         -------------------------------    -------------------------------
(in thousands)                                                 2001             2000              2001             2000
                                                         ------------      -------------    -------------     -------------
Contract benefits
Direct                                                   $    64,630       $    45,705      $     120,610     $    105,605
Assumed - non-affiliate                                          (40)             (142)                 6             (149)
Ceded
   Affiliate                                                    (435)             (178)              (490)            (403)
   Non-affiliate                                                (290)              295               (478)             147
                                                         -----------       -----------      -------------     ------------

      Contract benefits, net of reinsurance              $    63,865       $    45,680      $     119,648     $    105,200
                                                         ===========       ===========      =============     ============

</TABLE>


                                       9
<PAGE>



                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                       FOR THE THREE AND SIX MONTH PERIODS
                          ENDED JUNE 30, 2001 AND 2000


     The following discussion highlights significant factors influencing results
of  operations  and changes in  financial  position of Allstate  Life  Insurance
Company of New York (the  "Company").  It should be read in conjunction with the
financial  statements  and  related  notes  thereto  found  under  Part I Item 1
contained  herein and with the discussion,  analysis,  financial  statements and
notes  thereto in Part I Item 1 and Part II Items 7 and 8 of the  Allstate  Life
Insurance  Company  of New York  Annual  Report on Form 10-K for the year  ended
December 31, 2000.

OVERVIEW

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

     The Company has identified itself as a single segment entity.

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




















                                       10

<PAGE>


                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                       FOR THE THREE AND SIX MONTH PERIODS
                          ENDED JUNE 30, 2001 AND 2000



FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>

                                                               Three Months Ended                   Six Months Ended
                                                                    June 30,                            June 30,
                                                      ---------------------------------    ---------------------------------
                                                      ---------------------------------    ---------------------------------
(in thousands)                                              2001                2000             2001              2000
                                                      -------------        ------------    ---------------    --------------
<S>                                                   <C>                  <C>             <C>                <C>
Statutory premiums and deposits                       $     194,428        $    156,376    $       362,200    $      350,525
                                                      =============        ============    ===============    ==============

Investments                                           $   3,060,061        $  2,400,433    $     3,060,061    $    2,400,433
Separate Account assets                                     582,462             497,624            582,462           497,624
                                                      -------------        ------------    ---------------    --------------
Investments, including Separate Accounts assets       $   3,642,523        $  2,898,057    $     3,642,523    $    2,898,057
                                                      =============        ============    ===============    ==============

GAAP Premiums                                         $      26,779              14,852    $        46,993    $       42,432
Contract charges                                             10,117              10,318             20,471            21,140
Net investment income                                        50,209              43,924             98,695            84,490
Contract benefits                                            63,865              45,680            119,648           105,200
Amortization and Operating costs and expenses                10,139               7,248             19,579            16,281
                                                      -------------        ------------    ---------------    --------------
Operating income before tax                                  13,101              16,166             26,932            26,581
Income tax expense                                            4,563               5,244              9,340             8,849
                                                      -------------        ------------    ---------------    --------------
Operating income (1)                                          8,538              10,922             17,592            17,732
Realized capital losses, net of tax                          (2,068)             (1,437)            (1,569)           (1,892)
Cumulative effect of change in accounting
     principle, after-tax                                         -                   -               (147)                -
                                                      -------------        ------------    ---------------    --------------
Net income                                            $       6,470        $      9,485    $        15,876    $       15,840
                                                      =============        ============    ===============    ==============

</TABLE>

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



                                       11


<PAGE>

                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                       FOR THE THREE AND SIX MONTH PERIODS
                          ENDED JUNE 30, 2001 AND 2000



Statutory premiums and deposits

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

                                         Three Months Ended                       Six Months Ended
                                              June 30,                                June 30,
                              -------------------------------------    -------------------------------------
                              ---------------      ----------------    ---------------     -----------------
(in thousands)                       2001                 2000               2001                2000
                              ---------------      ----------------    ---------------     -----------------
                              ---------------      ----------------    ---------------     -----------------
<S>                           <C>                  <C>                 <C>                 <C>
Life Products
     Interest-sensitive       $      11,768        $       12,801      $      24,009       $       26,208
     Traditional                      6,497                 4,891             12,099                8,099
     Other                            2,084                 1,769              4,203                3,488
                              -------------        --------------      -------------       --------------
     Total life products             20,349                19,461             40,311               37,795
                              -------------        --------------      -------------       --------------

Investment Products
     Fixed                          102,207                56,483            184,059              179,307
     Variable                        71,872                80,432            137,830              133,423
                              -------------       ---------------      -------------       --------------

Total                         $     194,428       $       156,376      $     362,200       $      350,525
                              =============       ===============      =============       ==============

</TABLE>


     Statutory  premiums and deposits  increased  $38.1  million or 24.3% in the
second  quarter  of 2001 as  compared  to the same  period  last  year and $11.7
million or 3.3% in the first six months of 2001  compared  with the same  period
last year. Increases in statutory premiums and deposits during both periods were
the result of  increased  sales of  traditional,  other life  products and fixed
annuities  partially offset by decreased sales of  interest-sensitive  products.
Sales of  fixed  annuities  increased  81.0%  for the  second  quarter  from the
comparable period in 2000. Sales of structured  settlements improved as a result
of increased  focus on capturing  cases within the Allstate  group of companies,
and the expiration of the AIC Surety bond which  motivated some brokers to place
their business with the Company prior to its expiration.  It is uncertain if the
elimination  of the AIC Surety bond will affect future sales.  This increase was
partially  offset by a 10.6% decrease in variable annuity sales when compared to
the same period of 2000.  Variable  annuity sales were down for the quarter as a
result of market volatility. Sales of traditional,  variable and fixed annuities
increased 49.4%, 3.3%, and 2.7%, respectively, for the six months ended June 30,
2001  compared to the same  period last year.  These  increases  were  partially
offset by an 8.4% decrease in  interest-sensitive  products compared to the same
period  last  year.  While  total  sales of  traditional  life  premium is down,
statutory  premiums for these  products has  increased due to an increase in the
amount of premium  retained by the Company.  The increase in variable  annuities
was due to strong sales in the banking channel  partially  offset by lower sales
in the securities firms channel. The decrease in interest-sensitive products was
due to market conditions.





                                       12


<PAGE>

                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                       FOR THE THREE AND SIX MONTH PERIODS
                          ENDED JUNE 30, 2001 AND 2000


GAAP premiums and contract charges

     Under GAAP,  premiums  represent  revenue generated from life products with
significant mortality or morbidity risks. Revenues for  interest-sensitive  life
insurance  and other  products  that are largely  investment-related,  for which
deposits  are  treated  as  liabilities,  are  reflected  as  contract  charges.
Immediate  annuities may be purchased with a life contingency  whereby mortality
risk  is a  significant  factor,  therefore  the  revenues  generated  on  these
contracts are recognized as GAAP premiums.  The following table  summarizes GAAP
premiums and contract charges.

<TABLE>
<CAPTION>
                                                         Three Months Ended                  Six Months Ended
                                                              June 30,                           June 30,
                                                  ------------------------------     -------------------------------
                                                  -------------    -------------     ------------     --------------
(in thousands)                                         2001             2000             2001              2000
                                                  -------------    -------------     ------------     --------------
                                                  -------------    -------------     ------------     --------------
<S>                                               <C>               <C>              <C>              <C>
Premiums
   Traditional life                               $       6,084     $     4,891      $     11,740     $      8,099
   Immediate annuities with life contingencies           17,368           8,197            29,808           30,840
   Other                                                  3,327           1,764             5,445            3,493
                                                  -------------     -----------      ------------     ------------
        Total premiums                                   26,779          14,852            46,993           42,432
                                                  -------------     -----------      ------------     ------------


Contract charges
    Interest-sensitive life                               6,827           7,757            13,707           15,816
    Variable annuities                                    2,324           2,041             4,596            4,062
    Other                                                   966             520             2,168            1,262
                                                  -------------      ----------      ------------     ------------
       Total contract charges                            10,117          10,318            20,471           21,140
                                                  -------------      ----------      ------------     ------------


       Total premiums and contract charges        $      36,896      $   25,170      $     67,464     $     63,572
                                                  =============      ==========      ============     ============

</TABLE>


     Total  premiums  for the three month and six month  periods  ended June 30,
2001 increased 80.3% to $26.8 million and 10.7% to $47.0 million,  respectively,
compared to the same periods last year.  The increase for the three month period
was due to  increased  sales of all premium  products.  The increase for the six
month  period  was due to sales of  traditional  life and  other  life  premiums
partially offset by lower sales of immediate  annuities with life contingencies.
Sales of  immediate  annuities  may  fluctuate  from  period to  period  between
annuities sold with and without life  contingencies  and therefore,  due to GAAP
reporting  treatment  of  annuities  with life  contingencies,  GAAP premium may
fluctuate accordingly.

     Total contract charges for the three month and six month periods ended June
30, 2001  decreased  1.9% and 3.2%,  respectively,  compared to the same periods
last year.  The  decreases  for both  periods  were due to  declines in contract
charges  on  interest-sensitive  life  products  partially  offset by  increased
contract charges on variable  annuities and other.  Contract charges on variable
annuity  products are generally  calculated as a percentage of account value and
therefore are impacted by market fluctuations. Variable annuity contract charges
for the three month and six month periods of 2001  increased due to higher asset
balances  resulting  from higher  sales in late 2000 and first  quarter of 2001,
partially offset by the impacts of market declines in the period.

Operating income

     Operating income for the second quarter and six month period ended June 30,
2001 decreased  21.8% to $8.5 million and 1.0% to $17.6  million,  respectively,
compared to the same periods last year. The decrease was the result of increased
premiums and net investment income offset by an increase in contract charges and
operating expenses.

                                       13

<PAGE>

                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                       FOR THE THREE AND SIX MONTH PERIODS
                          ENDED JUNE 30, 2001 AND 2000


     Investment margin,  which represents the excess of investment income earned
over interest  credited to  policyholders  and  contractholders,  decreased 3.3%
during the  current  year  second  quarter as compared to same period last year.
This  decrease  was  primarily  due to an increase  in credited  interest in the
financial  institutions  and agent  channel.  For the  first six  months of 2001
investment margin increased 12.9% compared to the same period last year due to a
larger asset base from additional sales in the structured settlement channel.

     Mortality margin, which represents premiums and insurance charges in excess
of related policy benefits, decreased 26.5% during the second quarter of 2001 as
compared  to the same  period  last  year.  During the first six months of 2001,
mortality  margin decreased 6.0% as compared to the same period last year. These
decreases  were the result of increased  death benefits in the agent channel and
mortality losses in the structured channel.

     Increased  expenses during the three month and six month periods ended June
30, 2001 are due primarily to additional investments in technology, distribution
and marketing.

Net investment income

     Net  investment  income for the second  quarter and six month  period ended
June 30,  2001  increased  14.3% to $50.2  million  and 16.8% to $98.7  million,
respectively, as compared to the same periods last year. The increase was due to
higher investment balances.  Investments,  excluding unrealized gains and losses
on fixed  income  securities,  grew  22.9% in the  first  six  months of 2001 as
compared to same period last year.

After-tax, realized capital gains and losses

     Realized  capital  losses,  after-tax,  were $2.1  million  for the  second
quarter  of 2001  compared  to a realized  capital  losses,  after-tax,  of $1.4
million in the same period last year. Realized capital losses,  after-tax,  were
$1.6 million for the six months ended June 30, 2001 compared to realized capital
losses  of $1.9  million  for the  same  period  last  year.  Period  to  period
fluctuations  in  realized  capital  gains and losses are  largely the result of
timing of sales reflecting  management's  decision on positioning the portfolio,
as well as valuation  assessments  of individual  securities  and overall market
conditions.


INVESTMENTS

     The  composition of the investment  portfolio at June 30, 2001 is presented
in the table below:

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

Fixed income securities (1)             $  2,693,767           88.0%
Mortgage loans                               211,962            6.9
Policy loans                                  32,370            1.1
Short-term                                   121,962            4.0
                                         -----------        -------

    Total                               $  3,060,061          100.0%
                                        ============        =======

(1) Fixed income securities are carried at fair value.  Amortized cost for these
securities was $2,481,663 at June 30, 2001.

                                       14
<PAGE>
                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                       FOR THE THREE AND SIX MONTH PERIODS
                          ENDED JUNE 30, 2001 AND 2000



     Total  investments  were $3.1  billion at June 30,  2001  compared  to $2.8
billion at December 31, 2000.  The  increase  was due to amounts  invested  from
positive cash flows  generated  from  operations.  At June 30, 2001,  unrealized
capital  gains on the fixed  income  securities  portfolio  were $212.1  million
compared to $216.0 million at December 31, 2000.

     At  June  30,  2001,  substantially  all  of  the  Company's  fixed  income
securities portfolio was rated investment grade, which is defined by the Company
as a security having a National Association of Insurance  Commissioners ("NAIC")
rating of 1 or 2, a Moody's  rating of Aaa, Aa, A, Baa, or a comparable  Company
internal rating.

Separate Accounts

     Separate  Accounts assets and liabilities  increased 4.0% to $582.5 million
at June  30,  2001  from  the  December  31,  2000  balance.  The  increase  was
attributable to sales of variable annuities and transfers from the fixed account
fund to variable  Separate  Accounts  funds and partially  offset by unfavorable
investment performance of the Separate Accounts investments portfolio.

Capital Resources and Liquidity

     The Company's principal sources of funds are premiums and contract charges;
deposits;  receipts of principal and interest from the investment portfolio; and
capital contributions from ALIC, its parent. The primary uses of these funds are
to  purchase  investments  and  pay  policyholder  claims,  benefits,   contract
maturities,  contract surrenders and withdrawals,  operating costs and dividends
to ALIC.

     The maturity  structure of the  Company's  fixed income  securities,  which
represent  88.0% of the  Company's  total  investments,  is  managed to meet the
anticipated cash flow requirements of the underlying  liabilities.  A portion of
the Company's  diversified  product portfolio,  primarily fixed deferred annuity
and  interest-sensitive  life insurance  products,  is subject to  discretionary
surrenders and withdrawals by contractholders.  Total surrenders and withdrawals
for the second  quarter  and six month  period  ended  June 30,  2001 were $23.2
million and $48.6 million  compared with $25.5 million and $44.4 million for the
same periods last year.  As the Company's  interest-sensitive  life policies and
annuity  contracts  in-force grow and age, the dollar  amount of surrenders  and
withdrawals could increase.  While the overall amount of surrenders may increase
in the future,  a significant  increase in the level of  surrenders  relative to
total contractholder account balances is not anticipated.




                                       15
<PAGE>

                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                       FOR THE THREE AND SIX MONTH PERIODS
                          ENDED JUNE 30, 2001 AND 2000


FORWARD-LOOKING STATEMENTS AND RISK FACTORS

     This document contains "forward-looking statements" that anticipate results
based on management's  plans that are subject to uncertainty.  These  statements
are  made  subject  to the  safe-harbor  provisions  of the  Private  Securities
Litigation Reform Act of 1995.

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

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

o    Changes in market  interest rates can have adverse effects on the Company's
     investment  portfolio,  investment  income,  product  sales and  results of
     operations.  Increasing market interest rates have an adverse impact on the
     value of the investment  portfolio,  for example, by decreasing  unrealized
     capital gains on fixed income  securities.  Declining market interest rates
     could  have an adverse  impact on the  Company's  investment  income as the
     Company  reinvests  proceeds from positive cash flows from  operations  and
     from maturing and called  investments  into new  investments  that could be
     yielding less than the portfolio's average rate. Changes in market rates of
     interest  as compared to rates  offered on some of the  Company's  products
     could make those products less attractive if competitive investment margins
     are not  maintained.  This could lead to lower sales and/or  changes in the
     level of  surrenders  on these  products.  The  Company  seeks to limit its
     exposure in this area by offering a diverse group of products, periodically
     reviewing and revising  crediting rates and providing for surrender charges
     in the event of early withdrawal.

o    The  impact  of  decreasing  Separate  Accounts  balances  as a  result  of
     fluctuating  market conditions could cause contract charges realized by the
     Company to decrease.

o    In order to meet the anticipated cash flow  requirements of its obligations
     to  policyholders,  from time to time the  Company  adjusts  the  effective
     duration  of  investments  and  liabilities  for  contractholder  funds and
     reserves for life-contingent  contract benefits. Those adjustments may have
     an  impact  on the  value of the  investment  portfolio  and on  investment
     income.

o    The Company's policy acquisition costs related to contractholder  funds are
     amortized in proportion  to gross  profits over the estimated  lives of the
     contract periods.  Assumptions  underlying the gross profits, which include
     estimated fees and investment and expense margins, are periodically updated
     to reflect  actual  experience  resulting in  adjustments to the cumulative
     amortization of these costs.  These  adjustments may have a material effect
     on results of operations.

o    Management believes the reserves for life-contingent  contract benefits are
     adequate to cover ultimate policy  benefits,  despite the underlying  risks
     and uncertainties  associated with their  determination  when payments will
     not occur until well into the future. The Company  periodically reviews and
     revises its estimates.  If future experience  differs from assumptions,  it
     may have a material impact on results of operations.

                                       16
<PAGE>
                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                       FOR THE THREE AND SIX MONTH PERIODS
                          ENDED JUNE 30, 2001 AND 2000


o    Deferred annuities and  interest-sensitive  life insurance products receive
     favorable policyholder taxation under current tax laws and regulations. Any
     legislative or regulatory  changes that adversely  alter this treatment are
     likely to negatively  affect the demand for these  products.  Additionally,
     the  demand  for  life  insurance  products  that  are  used to  address  a
     customer's  estate  planning  needs  may  be  impacted  to the  extent  any
     legislative changes to the current estate tax laws occur.

o    The Company  distributes  some of its products under  agreements with other
     members of the financial services industry that are not affiliated with the
     Company.  Termination of one or more these  agreements due to, for example,
     changes  in  control of any of these  entities,  could  have a  detrimental
     effect  on  the  Company's  sales.  This  risk  may be  exacerbated  by the
     enactment of the  Gramm-Leach-Bliley  Act of 1999,  which  eliminated  many
     federal and state law  barriers to  affiliations  among  banks,  securities
     firms, insurers and other financial service providers.

o    Financial strength ratings have become an increasingly  important factor in
     establishing   the  competitive   position  of  insurance   companies  and,
     generally,  may be  expected  to have an effect on an  insurance  company's
     sales.   On  an  ongoing  basis,   rating  agencies  review  the  financial
     performance  and  condition of insurers.  A downgrade,  while not expected,
     could have a material adverse effect on the Company's  business,  financial
     condition and results of operations.

o    State  insurance  regulatory  authorities  require  insurance  companies to
     maintain  specified levels of statutory  capital and surplus.  In addition,
     competitive  pressures require the Company to maintain  financial  strength
     ratings. These restrictions affect the Company's ability to pay shareholder
     dividends and use its capital in other ways.

o    A number of enacted and pending legislative  measures may lead to increased
     consolidation and increased competition in the financial services industry.

     -    At the federal level,  these measures  include the  Gramm-Leach-Bliley
          Act of 1999,  which  eliminated many federal and state law barriers to
          affiliations  among  banks,   securities  firms,  insurers  and  other
          financial service providers.

     -    At the state  level,  these  measures  include  legislation  to permit
          mutual insurance companies to convert to a hybrid structure known as a
          mutual holding company,  thereby allowing insurance companies owned by
          their policyholders to become stock insurance companies owned (through
          one  or  more  intermediate  holding  companies)  partially  by  their
          policyholders  and  partially by  stockholders.  Also,  several  large
          mutual life insurers  have used or are expected to use existing  state
          laws and  regulations  governing the  conversion  of mutual  insurance
          companies into stock insurance companies (demutualization).

     -    In addition, state insurance regulators are reexamining the regulatory
          framework that currently governs the United States insurance business.
          They are  engaged in an effort to  determine  the proper role of state
          insurance  regulation in the United States financial services industry
          following  the  enactment of the  Gramm-Leach-Bliley  Act. The Company
          cannot predict  whether any state or federal  measures will be adopted
          to change  the  nature  or scope of the  regulation  of the  insurance
          business or what affect any such measures would have on the Company.





                                       17
<PAGE>

                           PART II - OTHER INFORMATION



Item 1.  LEGAL PROCEEDINGS

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


Item 5.  OTHER INFORMATION

         Not applicable.

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

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


(2)  None

(3)(i) Restated Certificate of Incorporation of Allstate Life Insurance Company
     of New York (Incorporated herein by reference to the Company's Form 10-K
     Annual Report for the year ended December 31, 1998, dated March 30, 1999)

(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, dated March 30, 1999)

(4)  None

(10) None

(11) Not Required

(15) None

(18) None

(19) None

(22) None

(23) Not required

(24) None

 (b) Reports on 8-K

            No reports on Form 8-K were filed during the second quarter of 2001.



                                       18

<PAGE>


                              SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized, on the 14th day of August, 2001.



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






/s/ THOMAS J. WILSON, II            PRESIDENT AND CHAIRMAN OF THE BOARD
- ------------------------          (Authorized Officer of Registrant)
 THOMAS J. WILSON, II



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







                                       19