FORM 10-Q

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

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

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

                 For the quarterly period ended: September 30, 1999

                                       OR

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


Commission file number: 33-47245
                        33-65355



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


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

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

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

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

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

Yes../X/..      No


     Indicate  the  number of shares of each of the  issuer's  classes of common
stock,  as of September  30, 1999;  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
          September 30,  1999(Unaudited)
          and December 31, 1998............................................. 3

          Statements of Operations
          Three Months Ended September 30, 1999 and
          September  30,  1998  and Six  Months  Ended
          September  30,  1999 and  September 30, 1998 (Unaudited).......... 4

          Statements  of Cash Flows
          Nine Months  Ended September 30, 1999 and September 30,
          1998 (Unaudited).................................................. 5

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

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

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


                           PART II - OTHER INFORMATION


Item 1.   LEGAL PROCEEDINGS..................................................17

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..................................................17

Item 6.   EXHIBITS AND REPORTS ON FORM 8-K...................................17

SIGNATURE PAGE...............................................................18





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

                                      -2-
<PAGE>
                   ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                        STATEMENTS OF FINANCIAL POSITION


                                                      SEPTEMBER 30, DECEMBER 31,
                                                         1999           1998
                                                      ------------- ------------
($ in thousands, except par value data)                (UNAUDITED)

ASSETS
Investments
   Fixed income securities, at fair value
      (amortized cost $1,787,423 and $1,648,972) ....   $1,899,766   $1,966,067
   Mortgage loans ...................................      163,144      145,095
   Short-term .......................................       27,766       76,127
   Policy loans .....................................       30,561       29,620
                                                        ----------   ----------
         Total investments ..........................    2,121,237    2,216,909

Deferred acquisition costs ..........................       99,180       87,830
Accrued investment income ...........................       22,655       22,685
Reinsurance recoverables ............................        2,093        2,210
Receivable from affiliates, net .....................        5,530           --
Cash ................................................        1,140        3,117
Other assets ........................................        7,152        9,887
Separate Accounts ...................................      389,675      366,247
                                                        ----------   ----------
         TOTAL ASSETS ...............................   $2,648,662   $2,708,885
                                                        ==========   ==========

LIABILITIES
Reserve for life-contingent contract benefits .......   $1,129,003   $1,208,104
Contractholder funds ................................      769,248      703,264
Current income taxes payable ........................       20,158       14,029
Deferred income taxes ...............................        5,150       25,449
Other liabilities and accrued expenses ..............       30,720       23,463
Payable to affiliates, net ..........................           --       38,835
Separate Accounts ...................................      389,675      366,247
                                                        ----------   ----------
         TOTAL LIABILITIES ..........................    2,343,954    2,379,391
                                                        ----------   ----------

COMMITMENTS AND CONTINGENT LIABILITIES (NOTE 3)

SHAREHOLDER'S EQUITY
Common stock, $25 par value, 80,000 shares
      authorized, issued and outstanding ............        2,000        2,000
Additional capital paid-in ..........................       45,787       45,787
Retained income .....................................      216,914      198,801

Accumulated other comprehensive income:
    Unrealized net capital gains ....................       40,007       82,906
                                                        ----------   ----------
         TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME       40,007       82,906
                                                        ----------   ----------
         TOTAL SHAREHOLDER'S EQUITY .................      304,708      329,494
                                                        ----------   ----------
         TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY .   $2,648,662   $2,708,885
                                                        ==========   ==========

See notes to financial statements.


                                       3
<PAGE>


<TABLE>
<CAPTION>

                   ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                            STATEMENTS OF OPERATIONS


                                                     THREE MONTHS ENDED        NINE MONTHS ENDED
                                                        SEPTEMBER 30,             SEPTEMBER 30,
                                                    ----------------------   ----------------------
($ in thousands)                                       1999         1998        1999         1998
                                                    -----------  ---------   ---------    ---------
                                                           (UNAUDITED)             (UNAUDITED)
<S>                                                 <C>          <C>         <C>         <C>

REVENUES
Premiums and contract charges (net of reinsurance
    ceded of $909 and $903; $3,076 and $2,660) ..   $  26,442    $  28,166   $  77,027    $  87,838
Net investment income ...........................      37,771       33,758     109,778      100,018
Realized capital gains and losses ...............        (812)          53      (1,560)       4,157
                                                    ---------    ---------   ---------    ---------
                                                       63,401       61,977     185,245      192,013
                                                    ---------    ---------   ---------    ---------

COSTS AND EXPENSES
Contract benefits (net of reinsurance recoveries
   of $309 and $1,245; $1,091 and $1,748) .......      47,347       46,744     133,560      135,565
Amortization of deferred acquisition costs ......       2,352        1,562       7,178        5,767
Operating costs and expenses ....................       5,068        5,261      16,410       17,426
                                                    ---------    ---------   ---------    ---------
                                                       54,767       53,567     157,148      158,758
                                                    ---------    ---------   ---------    ---------

INCOME FROM OPERATIONS BEFORE
   INCOME TAX EXPENSE ...........................       8,634        8,410      28,097       33,255
Income tax expense ..............................       3,071        2,883       9,984       11,746
                                                    ---------    ---------   ---------    ---------

NET INCOME ......................................   $   5,563    $   5,527   $  18,113    $  21,509
                                                    =========    =========   =========    =========





</TABLE>



See notes to financial statements.



                                      4
<PAGE>

<TABLE>
<CAPTION>

                   ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                            STATEMENTS OF CASH FLOWS


                                                             NINE MONTHS ENDED
                                                               SEPTEMBER 30,
                                                           ----------------------
($ in thousands)                                             1999          1998
                                                           ---------    ---------
                                                                  (UNAUDITED)
<S>                                                        <C>          <C>

CASH FLOWS FROM OPERATING ACTIVITIES
Net income .............................................   $  18,113    $  21,509
Adjustments to reconcile net income to net cash
    provided by operating activities:
       Amortization and other non-cash items ...........     (28,229)     (26,588)
       Realized capital gains and losses ...............       1,560       (4,157)
       Interest credited to contractholder funds .......      22,805       27,537
       Changes in:
           Reserve for life-contingent contract benefits
               and contractholder funds ................      34,045       41,875
           Deferred acquisition costs ..................      (9,169)      (8,605)
           Accrued investment income ...................          30        1,167
           Income taxes payable ........................       8,929        6,858
           Other operating assets and liabilities ......     (10,859)     (15,245)
                                                           ---------    ---------
               Net cash provided by operating activities      37,225       44,351
                                                           ---------    ---------

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of fixed income securities .........     141,505       65,274
Investment collections
       Fixed income securities .........................      14,685       92,221
       Mortgage loans ..................................       6,264        4,888
Investments purchases
       Fixed income securities .........................    (291,312)    (248,209)
       Mortgage loans ..................................     (26,730)     (14,312)
Change in short-term investments, net ..................      50,722         (977)
Change in policy loans, net ............................        (941)      (1,159)
                                                           ---------    ---------
               Net cash used in investing activities ...    (105,807)    (102,274)
                                                           ---------    ---------

CASH FLOWS FROM FINANCING ACTIVITIES
Contractholder fund deposits ...........................     115,288      100,721
Contractholder fund withdrawals ........................     (48,683)     (43,191)
                                                           ---------    ---------
               Net cash provided by financing activities      66,605       57,530
                                                           ---------    ---------

NET INCREASE (DECREASE) IN CASH ........................      (1,977)        (393)
CASH AT THE BEGINNING OF PERIOD ........................       3,117          393
                                                           ---------    ---------
CASH AT END OF PERIOD ..................................   $   1,140    $      --
                                                           =========    =========

</TABLE>


See notes to financial statements.


                                       5
<PAGE>



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


1.    BASIS OF PRESENTATION

      The  accompanying  financial  statements  include the accounts of Allstate
      Life  Insurance  Company  of New York  (the  "Company"),  a  wholly  owned
      subsidiary of Allstate Life Insurance  Company  ("ALIC"),  which is wholly
      owned by Allstate  Insurance Company ("AIC"), a wholly owned subsidiary of
      The Allstate Corporation (the  "Corporation").  These financial statements
      have been  prepared  in  conformity  with  generally  accepted  accounting
      principles.

      The  financial  statements  and notes as of September 30, 1999 and for the
      three month and nine month periods  ended  September 30, 1999 and 1998 are
      unaudited.  The financial  statements reflect all adjustments  (consisting
      only  of  normal  recurring   accruals)  which  are,  in  the  opinion  of
      management, necessary for the fair presentation of the financial position,
      results  of  operations  and cash  flows for the  interim  periods.  These
      financial  statements  and notes  should be read in  conjunction  with the
      financial  statements  and notes  thereto  included in the  Allstate  Life
      Insurance  Company of New York  Annual  Report on Form 10-K for 1998.  The
      results of  operations  for the interim  periods  should not be considered
      indicative of results to be expected for the full year.

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

      In July 1999, the Financial  Accounting  Standards Board ("FASB")  delayed
      the effective date of Statement of Financial  Accounting Standard ("SFAS")
      No. 133,  "Accounting for Derivative  Instruments and Hedging Activities",
      which  replaces  existing  pronouncements  and  practices  with a  single,
      integrated  accounting  framework for derivatives and hedging  activities.
      The delay was effected through the issuance of SFAS No. 137, which extends
      the  effective  date of the SFAS No.  133  requirements  to  fiscal  years
      beginning  after June 15, 2000.  As such,  the Company  plans to adopt the
      provisions  of SFAS No.  133 as of  January  1,  2001.  Based on  existing
      interpretations  of the  requirements  of SFAS  No.  133,  the  impact  of
      adoption is not  expected to be material to the results of  operations  or
      financial position of the Company.

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


                                       6
<PAGE>

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


2.    COMPREHENSIVE INCOME

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

<TABLE>
<CAPTION>

                                                                      THREE MONTHS ENDED SEPTEMBER 30,
                                             --------------------------------------------------------------------------------
       ($ in thousands)                                          1999                                      1998
                                             ----------------------------------------    ------------------------------------

                                                                           AFTER-                                  AFTER-
                                                 PRETAX        TAX          TAX            PRETAX       TAX          TAX
                                                 ------        ---          ---            ------       ---          ---
<S>                                             <C>          <C>          <C>             <C>         <C>           <C>

       Unrealized capital gains and losses:
       Unrealized holding (losses)gains
          arising during the period             $ (44,903)   $ 15,716     $ (29,187)      $  86,267   $(30,193)     $ 56,074
       Adjustments to  unrealized
          capital gains and losses
          arising  during the period:
             Deferred acquisition costs               185          (65)         120          (2,956)     1,034        (1,922)
             Reserves for life insurance
                 policy benefits                   28,992      (10,147)      18,845         (48,180)    16,863       (31,317)
                                                ---------    ---------    ---------        --------   --------      --------
               Net unrealized holding
                 (losses) gains arising
                 during the period                (15,726)       5,504      (10,222)         35,131    (12,296)       22,835

       Less:  reclassification
           adjustment for realized
           net capital (losses) gains
           included in net income                    (837)         293         (544)             47        (16)           31
                                                ---------     ---------    --------       ---------    --------     --------
       Other comprehensive
           (loss) income                        $ (14,889)    $   5,211      (9,678)      $  35,084    $(12,280)      22,804
                                                =========     =========                   =========    ========

        Net income                                                            5,563                                    5,527
                                                                           --------                                  -------
       Comprehensive
           (loss) income                                                   $ (4,115)                                 $ 28,331
                                                                           ========                                  ========

</TABLE>








                                       7
<PAGE>




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



2.    COMPREHENSIVE INCOME (CONTINUED)

<TABLE>
<CAPTION>

                                                                      NINE MONTHS ENDED SEPTEMBER 30,
                                             --------------------------------------------------------------------------------
       ($ in thousands)                                          1999                                      1998
                                             ----------------------------------------    ------------------------------------

                                                                           AFTER-                                  AFTER-
                                                 PRETAX        TAX          TAX            PRETAX       TAX          TAX
                                                 ------        ---          ---            ------       ---          ---
<S>                                             <C>          <C>          <C>             <C>         <C>           <C>

       Unrealized capital gains and losses:
       Unrealized holding (losses)gains
          arising during the period             $(206,351)   $  72,223     $(134,128)      $ 130,276   $(45,596)     $ 84,680
       Adjustments to  unrealized
          capital gains and losses
          arising  during the period:
             Deferred acquisition costs             2,182         (764)       1,418          (3,066)     1,072        (1,994)
             Reserves for life insurance
                 policy benefits                  136,572      (47,800)      88,772         (73,283)    25,649       (47,634)
                                                ---------    ---------    ---------        --------   --------      --------
               Net unrealized holding
                 (losses) gains arising
                 during the period                (67,597)      23,659      (43,938)         53,927    (18,875)       35,052

       Less:  reclassification
           adjustment for realized
           net capital (losses) gains
           included in net income                  (1,599)         560       (1,039)          4,215      (1,475)       2,740
                                                ---------     ---------    --------       ---------    --------     --------
       Other comprehensive
           (loss) income                        $ (65,998)    $  23,099     (42,899)      $  49,712    $(17,400)      32,312
                                                =========     =========                   =========    ========

        Net income                                                           18,113                                   21,509
                                                                           --------                                 --------
       Comprehensive
           (loss) income                                                   $(24,786)                                $ 53,821
                                                                           ========                                 ========

</TABLE>


                                       8
<PAGE>



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


3.    COMMITMENTS AND CONTINGENT LIABILITIES

      REGULATION AND LEGAL PROCEEDINGS

      The Company is subject to the effects of a changing  social,  economic and
      regulatory environment.  Public and regulatory initiatives have varied and
      have included 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 proposed legislation to prohibit
      the use of  gender  in  determining  insurance  rates  and  benefits.  The
      ultimate changes and eventual  effects,  if any, of these  initiatives are
      uncertain.

      Various  other legal and  regulatory  actions are  currently  pending that
      involve the Company and specific  aspects of its conduct of  business.  In
      the opinion of management,  the ultimate liability, if any, in one or more
      of these actions in excess of amounts  currently  reserved is not expected
      to have a material  effect on the  results  of  operations,  liquidity  or
      financial position of the Company.


                                       9
<PAGE>


                   ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                   FOR THE THREE MONTH AND NINE MONTH PERIODS
                        ENDED SEPTEMBER 30, 1999 AND 1998


      The  following  discussion  highlights   significant  factors  influencing
      results of operations  and changes in financial  position of Allstate Life
      Insurance  Company  of New York  (the  "Company").  It  should  be read in
      conjunction with the financial  statements and related notes thereto found
      under items 7 and 8 of Part II of the Allstate Life  Insurance  Company of
      New York Annual Report on Form 10-K for the year ended December 31, 1998.

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


<TABLE>
<CAPTION>


      FINANCIAL HIGHLIGHTS


      ($ in thousands)                           THREE MONTHS ENDED                 NINE MONTHS ENDED
                                                      SEPTEMBER 30,                    SEPTEMBER 30,
                                            ---------------------------      ----------------------------
                                               1999              1998            1999             1998
                                            ----------       ----------      -------------    -----------
<S>                                         <C>              <C>              <C>              <C>

      Statutory premiums and deposits       $   68,299       $   67,025       $  195,305       $  195,585
                                            ==========       ==========       ==========       ==========

      Investments                           $2,121,237       $2,195,754       $2,121,237       $2,195,754
      Separate Account assets                  389,675          322,658          389,675          322,658
                                            ----------       ----------       ----------      -----------
      Investments, including Separate
        Account assets                      $2,510,912       $2,518,412       $2,510,912       $2,518,412
                                            ==========       ==========       ==========       ==========

      Premium and contract charges          $   26,442       $   28,166      $    77,027       $   87,838
      Net investment income                     37,771           33,758          109,778          100,018
      Contract benefits                         47,347           46,744          133,560          135,565
      Operating costs and expenses               7,420            6,789           23,588           22,735
                                            ----------       ----------      -----------       ----------

      Income from operations                     9,446            8,391           29,657           29,556
      Income tax expense on operations           3,368            2,876           10,555           10,451
                                            ----------       ----------      -----------       ----------
      Operating income                           6,078            5,515           19,102           19,105
      Net realized capital losses and
        gains, after-tax (1)                      (515)              12             (989)           2,404
                                            ----------       ----------      -----------       ----------
      Net income                            $    5,563       $    5,527         $ 18,113       $   21,509
                                            ==========       ==========      ===========       ==========
</TABLE>

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

      Statutory  premiums  and  deposits  include  premiums and deposits for all
      products.  Statutory premiums and deposits increased $1.3 million to $68.3
      million in the third  quarter of 1999  compared  with the same period last
      year. The increase was primarily due to higher sales of variable annuities
      partially  offset by lower  structured  settlement  annuity sales. For the
      nine months ended September 30, 1999, statutory premiums and deposits were
      $195.3 million compared to $195.6 million for the same period last year as
      higher sales of life and variable  annuity  products were more than offset
      by lower structured settlement annuity sales.


                                       10
<PAGE>

                   ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                   FOR THE THREE MONTH AND NINE MONTH PERIODS
                        ENDED SEPTEMBER 30, 1999 AND 1998

      Under generally accepted accounting principles ("GAAP"),  revenues exclude
      deposits  on  most  annuity  contracts  and  premiums  on  universal  life
      insurance policies, and will vary with the mix of business sold during the
      period.  For the third  quarter of 1999 and the first nine  months of 1999
      premiums  and  contract  charges  under GAAP were $26.4  million and $77.0
      million, respectively, compared to $28.2 million and $87.8 million for the
      same periods last year.  Increases,  primarily in universal  life contract
      charges,   were  more  than  offset  by  lower  premiums  from  structured
      settlement  annuities with life contingencies for both periods.  The lower
      sales of structured  settlement  annuities with life contingencies in 1999
      similarly  caused a decrease in the change in reserve for life  contingent
      contracts  which is a  component  of  contract  benefits  reported  in the
      statement of operations.

      Pretax net investment  income  increased $4.0 million in the third quarter
      of 1999 to $37.8 million and $9.8 million in the first nine months of 1999
      to $109.8 million  compared with the same periods last year. For the third
      quarter of 1999, the increase in net  investment  income was due to larger
      investment balances and slightly higher investment yields partially offset
      by increased investment expenses.  For the nine months ended September 30,
      1999,  the increase in net  investment  income was primarily due to higher
      investment balances partially offset by lower investment yields and higher
      investment expenses. Investments at September 30, 1999, excluding Separate
      Accounts and unrealized  gains on fixed income  securities grew 10.1% from
      the same period last year.  Lower  investment  yields are due, in part, to
      the investment of proceeds from calls and maturities and the investment of
      positive cash flows from  operations in securities  yielding less than the
      average  portfolio  rate.  In relatively  low interest rate  environments,
      funds from called or maturing  investments  may be  reinvested at interest
      rates  lower than those  which  prevailed  when the funds were  previously
      invested, resulting in lower investment yields.

      Operating  income  increased  $563  thousand to $6.1  million in the third
      quarter of 1999,  compared to the same period last year.  The increase was
      mainly due to net  investment  income which was  partially  offset by less
      favorable  mortality  experience.  For the nine months ended September 30,
      1999,  operating  income was relatively  unchanged  compared to prior year
      primarily  due to net  investment  income  being more than  offset by less
      favorable mortality experience.

      Realized  capital  losses,  after-tax,  were $515  thousand  for the three
      months ended  September  30,  1999,  compared to realized  capital  gains,
      after-tax,  of $12  thousand  for the same period last year.  For the nine
      months ended September 30, 1999, realized capital losses,  after-tax, were
      $989  thousand  compared to realized  capital  gains,  after-tax,  of $2.4
      million for the same period last year. For both periods in 1999,  realized
      capital losses were generated from the sale of  publicly-traded  corporate
      securities. The sales were intended to manage asset and liability duration
      and facilitate investing in higher yielding securities.


                                       11
<PAGE>

                   ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                   FOR THE THREE MONTH AND NINE MONTH PERIODS
                        ENDED SEPTEMBER 30, 1999 AND 1998

      INVESTMENTS

      The  composition  of the  investment  portfolio at September  30, 1999, at
      financial statement carrying values, is presented in the table below:

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

      Fixed income securities (1)         $1,899,766        89.6%
      Mortgage loans                         163,144         7.7
      Policy loans                            30,561         1.4
      Short-term                              27,766         1.3
                                          ----------       ------

          Total                           $2,121,237       100.0%
                                          ==========       ======


      (1) Fixed income securities are carried at fair value. Amortized cost for
          these securities was $1,787,423 at September 30, 1999.

      Total  investments  were $2.12  billion at September  30, 1999 compared to
      $2.22  billion at December 31, 1998.  Positive cash flows  generated  from
      operations were more than offset by lower unrealized gains on fixed income
      securities  and a decrease in  short-term  investments.  At September  30,
      1999,  unrealized  capital gains on the fixed income securities  portfolio
      were $112.3  million  compared to $317.1 million at December 31, 1998. The
      decrease in  short-term  investments  resulted  from the  settlement of an
      intercompany  payable.  At  September  30,  1999,  short-term  investments
      included  $11.8  million of  collateral  received in  connection  with the
      Company's securities lending program.

      At September 30, 1999,  substantially  all of the  Company's  fixed income
      securities  portfolio is rated investment  grade,  which is defined by the
      Company  as  a  security  having  a  National   Association  of  Insurance
      Commissioners  rating of 1 or 2, a Moody's rating of Aaa, Aa, A or Baa, or
      a comparable Company internal rating.

      SEPARATE ACCOUNTS

      Separate  Account  assets and  liabilities  increased to $389.7 million at
      September 30, 1999 from $366.2  million at December 31, 1998. The increase
      was due primarily to variable  annuity sales and favorable  performance of
      the Separate Account investment  portfolios,  partially offset by variable
      annuity contract surrenders and withdrawals.


                                       12
<PAGE>

                   ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                   FOR THE THREE MONTH AND NINE MONTH PERIODS
                        ENDED SEPTEMBER 30, 1999 AND 1998

      LIQUIDITY AND CAPITAL RESOURCES

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

      The maturity  structure of the Company's  fixed income  securities,  which
      represents  89.6% of the Company's total  investments,  is managed to meet
      the anticipated cash flow  requirements of the underlying  liabilities.  A
      portion of the  Company's  product  portfolio,  primarily  fixed  deferred
      annuity and universal life insurance products, is subject to discretionary
      surrender  and  withdrawal  by  contractholders.  Management  believes its
      assets are sufficiently  liquid to meet future obligations to its life and
      annuity contractholders under various interest rate scenarios.

      Surrenders  and  withdrawals  were $18.9 million and $44.3 million for the
      three and nine month periods ended  September 30, 1999,  compared to $14.0
      million and $45.5  million for the same periods in 1998.  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.

      YEAR 2000

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

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

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


                                       13
<PAGE>
                   ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                   FOR THE THREE MONTH AND NINE MONTH PERIODS
                        ENDED SEPTEMBER 30, 1999 AND 1998


      The  Corporation  believes  that the  first  three  phases  of this  plan,
      assessment, remediation and testing, including clock-forward testing which
      was performed on the Corporation's  systems and equipment and non-IT,  are
      complete.  It is  expected  that the  implementation  and  rollout  of the
      remediated  personal  computer  environment  will be completed by December
      1999.  In  addition,  some  systems and  equipment  and non-IT  related to
      discontinued or  non-critical  functions of the Corporation are planned to
      be abandoned by the end of 1999.

      The fourth  phase of this plan,  contingency  planning,  is  currently  in
      process.  Detailed  plans have been  created in the event that the systems
      and equipment or major external  counterparties  and suppliers  supporting
      critical  processes are not Year 2000 compliant in or after the year 1999.
      These plans,  created by each corporate  function and business unit of the
      Corporation, identify and document the risks associated with the Year 2000
      on their  business  processes.  Appropriate  plans have been  developed to
      mitigate  those  risks.  A  common  inclusion  in many of the  plans  is a
      description  of manual  processes and  personnel  needed in the event of a
      temporary   Year  2000   failure.   Contingency   plans   will  be  tested
      appropriately  by the  corporate  function  or  business  unit  for  their
      effective operation and for achieving their desired results.  This testing
      will  be  complete  by  December  1999.  In  addition,  the  Corporation's
      management is reviewing all corporate  function and business  units' plans
      for accuracy and  comprehensiveness.  This review will also be complete by
      December 1999.  Monitoring of these plans will continue throughout the end
      of 1999 and beyond, as needed.

      The  final  step  of  the   contingency   planning   phase   includes  the
      establishment  of a Year 2000 Command  Center and wellness  checks for the
      Corporation's  systems  and  equipment.  The  Command  Center  will  be in
      operation 24 hours a day for several days before and after January 1, 2000
      and other  critical Year 2000 dates,  to serve as a center of expertise in
      the event a Year 2000 problem is encountered by the Corporation.  Wellness
      checks  will  be  performed  by  designated   personnel   throughout   the
      Corporation  on specified  systems and non-IT to  determine  that they are
      functioning  properly  on or after  January  1, 2000.  The  results of the
      wellness checks will be reported to the Command Center.

      The  Corporation  has  considered   numerous  risk  scenarios  during  the
      contingency  planning phase.  Through this planning,  management  believes
      that  the  scenario  which  could  be  considered  the  worst  case,  is a
      widespread,  prolonged  failure of public utility  systems which would not
      only  cause   power   outages   for  the   Corporation,   but  also  cause
      telecommunications,  banking or external counterparty and supplier service
      outages.  While the  Corporation  has assessed and will continue to assess
      data  on  the  utility,   telecommunication  and  banking  industries,  it
      acknowledges the possibility that a prolonged  widespread outage in any or
      all of these industries could lead to a worst case scenario.  However, the
      Corporation  does not consider  such  prolonged  widespread  outages to be
      reasonably  likely.  Therefore,  the  Corporation  has  focused  its  most
      reasonably  likely  worst case  scenario  contingency  planning on limited
      scale  outages in order to ensure the ability to deal with risks of likely
      scenarios.  Because the Corporation is prepared for outages on a localized
      basis as part of normal business operations, the Corporation considers the
      impacts of this most  reasonably  likely  scenario to be immaterial to the
      Corporation's results of operations, liquidity or financial position.

      The  Company  markets  its  products  through  a variety  of  distribution
      channels,  including a broad-based  network of exclusive agents (including
      life specialist),  banks, brokers and direct response marketing.  The core
      of the Company's distribution system, the exclusive agents, have had their
      systems  included  in  the  Corporation's   four  phase  plan,   therefore
      management believes that assessment, remediation, testing and the creation
      of  contingency  plans are complete for the exclusive  agency  operations'
      critical systems.


                                       14
<PAGE>

                   ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                   FOR THE THREE MONTH AND NINE MONTH PERIODS
                        ENDED SEPTEMBER 30, 1999 AND 1998

      The Company also markets some of its products through Dean Witter Reynolds
      Inc.  ("Dean  Witter"),  a wholly owned  subsidiary of Morgan Stanley Dean
      Witter. Management believes that its interactions and interfaces with Dean
      Witter  are Year 2000  compliant.  Therefore,  the  impacts  of Year 2000,
      related to this distribution  channel, is expected to be immaterial to the
      Company's results of operations, liquidity and financial position.

      In addition,  the Company markets a portion of its products through banks,
      brokers and direct response  marketing.  These  distribution  channels are
      considered  major  external   counterparties   of  the  Corporation.   The
      Corporation is actively working with its major external counterparties and
      suppliers,  including public utility  companies and banks and brokers,  to
      assess their  compliance  efforts and the  Corporation's  exposure to both
      their Year 2000 issues and non-IT  issues.  This  assessment  has included
      soliciting  external  counterparties and suppliers,  evaluating  responses
      received and testing third party  interfaces and interactions to determine
      compliance.  Currently the  Corporation  has  solicited,  and has received
      responses from, the majority of its  counterparties  and suppliers.  These
      responses  generally  state  that  they  believe  they  will be Year  2000
      compliant  and that no  transactions  will be affected.  However,  certain
      vendors  are also in ongoing  assessment  and  testing  of their  products
      whereby they are currently  unable to identify all  potential  problems in
      certain  products  which  are  used by the  Corporation.  The  Corporation
      believes that these vendors will make no statements  regarding  their Year
      2000  readiness  other than to publish  declarations  addressing  specific
      compliance  issues  identified  with their  products.  The  Corporation is
      working with these key vendors and has  procedures  in place to stay aware
      of any compliance issues encountered by these vendors. The Corporation has
      also  decided  to  test  certain   interfaces  and  interactions  to  gain
      additional assurance on third party compliance. Currently, the Corporation
      does not have  sufficient  information  to  determine  whether  all of its
      external counterparties and suppliers will be Year 2000 compliant. If they
      are not Year 2000 compliant,  the Corporation is not able to determine the
      impact of any consequent losses on its results of operations, liquidity or
      financial position.

      The Corporation may be exposed to the risk that the issuers of investments
      in its  portfolio  will be  adversely  impacted by Year 2000  issues.  The
      Corporation  assesses  the  impact  which  Year  2000  issues  have on the
      Corporation's  investments  as  part of due  diligence  for  proposed  new
      investments and in its ongoing review of all current  portfolio  holdings.
      Any  recommended  actions  with  respect  to  individual  investments  are
      determined by taking into account the potential impact of Year 2000 on the
      issuer.  Based  on its  current  review,  the  Corporation  believes  that
      although Year 2000 issues may temporarily  affect the market or individual
      issuers,  the potential  impact of Year 2000 on its  investment  portfolio
      will not be material.

      The  Corporation  presently  believes  that it will  resolve the Year 2000
      issue in a timely  manner.  Year 2000 costs are expensed as incurred.  The
      majority of the expenses  related to this project have been incurred as of
      September 30, 1999.  The  Corporation  estimates that  approximately  $125
      million  in costs  will be  incurred  between  the years of 1995 and 2000.
      These amounts  include costs directly  related to fixing Year 2000 issues,
      such as modifying  software and hiring Year 2000  solution  providers,  as
      well as costs  incurred to replace  certain  non-compliant  systems  which
      would not have been otherwise  replaced.  A portion of these costs will be
      incurred   by  the   Company   on  a  pro  rata  basis  of  usage  of  the
      computer-related  systems and  equipment  and  non-IT,  as compared to the
      usage of all entities  which share these  services  with the  Corporation.
      These amounts are not expected to be material to the results of operations
      of the Company.


                                       15
<PAGE>
                   ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                   FOR THE THREE MONTH AND NINE MONTH PERIODS
                        ENDED SEPTEMBER 30, 1999 AND 1998


      PENDING ACCOUNTING STANDARDS

      In July  1999,  the  Financial  Accounting  Standards  Board  delayed  the
      effective date of Statement of Financial  Accounting Standard ("SFAS") No.
      133, "Accounting for Derivative Instruments and Hedging Activities", which
      replaces existing  pronouncements and practices with a single,  integrated
      accounting framework for derivatives and hedging activities. The delay was
      effected through the issuance of SFAS No. 137, which extends the effective
      date of SFAS No. 133 requirements to fiscal years beginning after June 15,
      2000. As such, the Company expects to adopt the provisions of SFAS No. 133
      as  of  January  1,  2001.  Based  on  existing   interpretations  of  the
      requirements  of SFAS No. 133,  the impact of the adoption is not expected
      to be material to the results of operations  or financial  position of the
      Company.

      FORWARD-LOOKING STATEMENTS

      The statements contained in this Management's Discussion and Analysis that
      are not historical  information  are  forward-looking  statements that are
      based on management's estimates,  assumptions and projections. The Private
      Securities  Litigation Reform Act of 1995 provides a safe harbor under The
      Securities  Act of  1933  and the  Securities  Exchange  Act of  1934  for
      forward-looking  statements. In order to comply with the terms of the safe
      harbor, the Company notes the following  important factor that could cause
      the   Company's   actual   results   and   experience   with   respect  to
      forward-looking  statements  to  differ  materially  from the  anticipated
      results or other expectations  expressed in the Company's  forward-looking
      statements:

         The Corporation  presently  believes that it will resolve the Year 2000
         issues affecting its computer  operations in a timely manner,  and that
         the costs  incurred  between  the  years of 1995 and 2000 in  resolving
         those issues will be approximately $125 million. However, the extent to
         which  the   computer   operations   of  the   Corporation's   external
         counterparties  and suppliers are adversely  affected  could,  in turn,
         affect   the   Corporation's   ability   to   communicate   with   such
         counterparties and suppliers,  could increase the cost of resolving the
         Year 2000 issues, and could materially affect the Corporation's results
         of operations in any period or periods.



                                       16




<PAGE>



                           PART II - OTHER INFORMATION



Item 1.  LEGAL PROCEEDINGS

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


Item 5.  OTHER INFORMATION

         Not applicable.

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

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


(2)  None

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

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

(4)  None

(10) None

(11) Not Required

(15) None

(18) None

(19) None

(22) None

(23) Not required

(24) Power of Attorney - Samuel H. Pilch

(27) Financial Data Schedule


 (b) Reports on 8-K

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




                                      17
<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 12th day of September, 1999.



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






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



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







                                       18
<PAGE>

Exhibit Index

Exhibit No.              Exhibit


(27)                Financial Data Schedule