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: March 31, 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 March 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
            Three Months Ended March 31, 2001 and
            March 31, 2000 (Unaudited)....................................... 3

            Statements of Financial Position
            March 31, 2001 (Unaudited) and December 31, 2000................. 4

            Statements of Cash Flows
            Three Months Ended March 31, 2001 and
                  March 31, 2000 (Unaudited)................................. 5

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

Item  2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
           FINANCIAL CONDITION AND RESULTS OF OPERATIONS ....................11

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



                           PART II - OTHER INFORMATION


Item 1.   LEGAL PROCEEDINGS..................................................19

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..................................................19

Item 6.   EXHIBITS AND REPORTS ON FORM 8-K...................................19

SIGNATURE PAGE...............................................................20





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

<PAGE>

                   ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                            STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>


                                                                                         Three Months Ended
                                                                                              March 31,
                                                                              ------------------------------------------
(in thousands)                                                                      2001                    2000
                                                                              ------------------     -------------------
                                                                                             (Unaudited)
<S>                                                                                      <C>                     <C>
Revenues
Premiums (net of reinsurance ceded
   of $1,239 and $1,370)                                                        $        20,214         $        27,580
Contract charges                                                                         10,354                  10,822
Net investment income                                                                    48,486                  40,566
Realized capital gains and losses                                                           777                    (700)
                                                                                ---------------          --------------
                                                                                         79,831                  78,268
                                                                                ---------------          --------------

Costs and expenses
Contract benefits (net of reinsurance recoveries
   of $243 and $373)                                                                     55,783                  59,520
Amortization of deferred policy acquisition costs                                         1,696                   2,533
Operating costs and expenses                                                              7,744                   6,500
                                                                                ---------------           -------------
                                                                                         65,223                  68,553
                                                                                ---------------           -------------

Income from operations before income tax expense and cumulative
     effect of change in accounting for derivative
     financial instruments, after-tax                                                    14,608                   9,715

Income tax expense                                                                        5,055                   3,360
                                                                                ---------------            ------------

Income before cumulative effect of change in accounting for derivative
     financial instruments, after-tax                                                     9,553                   6,355

Cumulative effect of change in accounting for derivative
     financial instruments, after-tax                                                      (147)                      -
                                                                                ---------------            ------------

Net income                                                                      $         9,406            $      6,355
                                                                                ===============            ============


</TABLE>





                                 See notes to financial statements.

                                                   3



<PAGE>



                   ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                        STATEMENTS OF FINANCIAL POSITION

<TABLE>
<CAPTION>

                                                                            March 31,             December 31,
                                                                              2001                    2000
                                                                        ------------------     -------------------
                                                                           (Unaudited)
(in thousands, except par value data)
<S>                                                                          <C>                     <C>
Assets
Investments
   Fixed income securities, at fair value
      (amortized cost $2,357,944 and $2,260,087)                         $      2,615,615       $       2,476,132
   Mortgage loans                                                                 206,357                 207,857
   Policy loans                                                                    32,285                  58,224
   Short-term                                                                     101,743                  31,772
                                                                         ----------------       -----------------
         Total investments                                                      2,956,000               2,773,985

Cash                                                                                6,329                   2,162
Deferred policy acquisition costs                                                 132,366                 124,601
Accrued investment income                                                          29,035                  32,422
Reinsurance recoverables, net                                                       1,182                   1,269
Other assets                                                                        6,548                   7,980
Separate Accounts                                                                 521,902                 560,089
                                                                         ----------------       -----------------
         Total assets                                                    $      3,653,362       $       3,502,508
                                                                         ================       =================

Liabilities
Reserve for life-contingent contract benefits                            $      1,275,917       $       1,226,349
Contractholder funds                                                            1,182,607               1,107,495
Current income taxes payable                                                       11,479                  11,723
Deferred income taxes                                                              61,810                  53,181
Other liabilities and accrued expenses                                            157,781                 117,304
Payable to affiliates, net                                                          2,467                   3,556
Separate Accounts                                                                 521,902                 560,089
                                                                         ----------------       -----------------
         Total liabilities                                                      3,213,963               3,079,697
                                                                         ----------------       -----------------

Commitments and Contingent Liabilities (Note 5)

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                                                                   265,688                 256,282

Accumulated other comprehensive income:
    Unrealized net capital gains                                                  125,424                 118,242
                                                                          ---------------        ----------------
         Total accumulated other comprehensive income                             125,424                 118,242
                                                                          ---------------        ----------------
         Total shareholder's equity                                               439,399                 422,811
                                                                          ---------------        ----------------
         Total liabilities and shareholder's equity                       $     3,653,362        $      3,502,508
                                                                          ===============        ================
</TABLE>

                                See notes to financial statements.

                                             4


<PAGE>

                                ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
                                         STATEMENTS OF CASH FLOWS


<TABLE>
<CAPTION>

                                                                             Three months ended
                                                                                  March 31,
                                                                  ------------------------------------------
(in thousands)                                                          2001                    2000
                                                                  ------------------     -------------------
                                                                                 (Unaudited)
<S>                                                                   <C>                     <C>
Cash flows from operating activities
Net income                                                         $          9,406       $           6,355
Adjustments to reconcile net income to net cash
    provided by operating activities
       Amortization and other non-cash items                                (12,519)                 (9,940)
       Realized capital gains and losses                                       (777)                    700
       Interest credited to contractholder funds                             12,295                   8,043
       Changes in:
           Life-contingent contract benefits and
               contractholder funds                                          16,170                  25,538
           Deferred policy acquisition costs                                (12,876)                (11,400)
           Income taxes payable                                               4,518                   2,972
           Other operating assets and liabilities                            14,594                 (15,209)
                                                                   ----------------        ----------------
               Net cash provided by operating activities                     30,811                   7,059
                                                                   ----------------        ----------------

Cash flows from investing activities
Proceeds from sales of fixed income securities                               23,200                  58,539
Investment collections
       Fixed income securities                                               17,710                  11,999
       Mortgage loans                                                         1,489                   1,233
Investment purchases
       Fixed income securities                                              (96,791)               (203,844)
       Mortgage loans                                                             -                 (30,482)
Change in short-term investments, net                                       (42,254)                 44,369
Change in policy loans, net                                                    (513)                   (246)
                                                                   ----------------         ---------------
               Net cash used in investing activities                        (97,159)               (118,432)
                                                                   ----------------         ---------------

Cash flows from financing activities
Contractholder fund deposits                                                121,578                 135,784
Contractholder fund withdrawals                                             (51,063)                (23,865)
                                                                   ----------------         ---------------
               Net cash provided by financing activities                     70,515                 111,919
                                                                   ----------------         ---------------

Net increase in cash                                                          4,167                     546
Cash at beginning of period                                                   2,162                   1,135
                                                                   ----------------         ---------------
Cash at end of period                                              $          6,329         $         1,681
                                                                   ================         ===============

</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 March 31, 2001, and for the three
month periods ended March 31, 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.

2.   Accounting policy for derivative financial instruments

     The Company holds financial futures contracts that are derivative financial
instruments. Derivatives are accounted for on a fair value basis, and reported
as Other assets. Hedge accounting is not applied to strategies which utilize the
financial futures contracts for interest rate risk management purposes.
Therefore, the gains and losses pertaining to the change in the fair value of
the financial futures contracts are recognized in Realized capital gains and
losses during the period on a current basis.

3.   Derivative financial instruments

     The Company utilizes financial futures contracts to reduce its exposure to
market risk, specifically interest rate risk, in conjunction with
asset/liability management. The Company does not hold or issue these instruments
for trading purposes. Financial futures are commitments to either purchase or
sell designated financial instruments at a future date for a specified price or
yield. They may be settled in cash or through delivery. As part of its
asset/liability management, the Company generally utilizes futures to manage its
market risk related to anticipatory investment purchases and sales. Futures used
to reduce interest rate risk related to anticipatory transactions pertain to
identified transactions that are probable to occur and are generally completed
within 90 days.

                                       6

<PAGE>

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


Futures contracts have limited off-balance-sheet credit risk as they are
executed on organized exchanges and require security deposits, as well as the
daily cash settlement of margins. The Company has not pledged any securities as
collateral at March 31, 2001.

    The credit exposure, fair value and carrying value of the Company's
financial futures at March 31, 2001, were $90 thousand, $90 thousand and $90
thousand, respectively.

    Credit exposure represents the Company's potential loss if all of the
counterparties failed to perform under the contractual terms of the contracts
and all collateral, if any, became worthless. This exposure is measured by the
fair value of contracts with a positive fair value at the reporting date reduced
by the effect, if any, of master netting agreements.

    The Company manages its exposure to credit risk by utilizing highly rated
counterparties, establishing risk control limits, executing legally enforceable
master netting agreements and obtaining collateral where appropriate. To date,
the Company has not incurred any losses as financial futures contracts have
limited off-balance-sheet credit risk, they are executed on organized exchanges
and require daily cash settlement of margins.

     Fair value is the estimated amount that the Company would receive (pay) to
terminate or assign the derivative contracts at the reporting date.

     Market risk is the risk that the Company will incur losses due to adverse
changes in market rates and prices. Market risk exists for all derivative
financial instruments that the Company currently holds, as these instruments may
become less valuable due to adverse changes in market conditions. The Company
mitigates this risk through established risk control limits set by senior
management.


                                       7

<PAGE>

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

<TABLE>
<CAPTION>

4.   Comprehensive Income

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

                                                                         Three months ended March 31,
                                            ---------------------------------------------------------------------------
   (in thousands)                                          2001                                  2000
                                            ------------------------------------ --------------------------------------

                                                                      After-                                 After-
                                               Pretax       Tax        tax          Pretax        Tax         tax
<S>                                         <C>       <C>           <C>             <C>         <C>          <C>
   Unrealized capital gains and losses:
     Unrealized   holding   gains   (losses)
       arising during the period            $ 11,826    $ (4,139)     $ 7,687    $  12,565   $  (4,397)    $   8,168
     Less:  reclassification adjustments         777        (272)         505         (765)        268          (497)
                                            --------    --------      -------    ---------   ---------     ---------
    Other comprehensive income (loss)       $ 11,049    $ (3,867)       7,182    $  13,330   $  (4,665)        8,665
                                            ========    ========                 =========   =========

   Net income                                                           9,406                                  6,355
                                                                      -------                              ---------

   Comprehensive income                                               $16,588                              $  15,020
                                                                      =======                              =========

</TABLE>





                                       8
<PAGE>


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



5.   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, proposed legislation to prohibit the use
of gender in determining insurance rates and benefits 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.



                                       9
<PAGE>
                   Allstate Life Insurance Company of New York
                          Notes to Financial Statements
                                   (Unaudited)


6.   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
                                                                                                  March 31,
                                                                                 -----------------------------------
     (in thousands)                                                                    2001                2000
                                                                                 ---------------     ---------------
<S>                                                                               <C>                 <C>
     Premiums and contract charges
     Direct                                                                       $      31,611       $    39,442
     Assumed - non-affiliate                                                                196               330
     Ceded
        Affiliate                                                                        (1,019)           (1,149)
        Non-affiliate                                                                      (220)             (221)
                                                                                  -------------       -----------
           Premiums and contract charges, net of reinsurance                      $      30,568       $    38,402
                                                                                  =============       ===========


                                                                                          Three months ended
                                                                                                March 31,
                                                                                 -----------------------------------
     (in thousands)                                                                    2001                2000
                                                                                 ---------------     ---------------
     Contract benefits
     Direct                                                                       $     55,980        $   59,900
     Assumed - non-affiliate                                                                46                (7)
     Ceded
         Affiliate                                                                         (55)             (225)
         Non-affiliate                                                                    (188)             (148)
                                                                                  ------------        ----------
           Contract benefits, net of reinsurance                                  $     55,783        $   59,520
                                                                                  ============        ==========
</TABLE>

                                       10

<PAGE>

                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                           FOR THE THREE MONTH PERIODS
                          ENDED MARCH 31, 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 ALIC, which is a wholly owned
subsidiary of AIC, a wholly owned subsidiary of 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.







                                       11


<PAGE>

                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                           FOR THE THREE MONTH PERIODS
                          ENDED MARCH 31, 2001 AND 2000


<TABLE>
<CAPTION>

FINANCIAL HIGHLIGHTS

                                                                    Three months ended
                                                                         March 31,
                                                            -----------------------------------
(in thousands)                                                   2001                2000
                                                            ---------------    ----------------

<S>                                                            <C>                <C>
Statutory premiums and deposits                                $   167,772        $    194,149
                                                               ===========        ============

Investments                                                    $ 2,956,000        $  2,345,948
Separate Accounts assets                                           521,902             481,167
                                                               -----------        ------------
Investments, including Separate Accounts assets                $ 3,477,902        $  2,827,115
                                                               ===========        ============

GAAP Premiums                                                  $    20,214        $     27,580
Contract charges                                                    10,354              10,822
Net investment income                                               48,486              40,566
Contract benefits                                                   55,783              59,520
Amortization and Operating costs and expenses                        9,440               9,033
                                                               -----------        ------------
Operating income before tax                                         13,831              10,415
Income tax expense                                                   4,777               3,618
                                                               -----------        ------------
Operating income (1)                                                 9,054               6,797
Realized capital gains and losses, net of tax (2)                      499                (442)
Cumulative effect of change in accounting
     principle, after-tax                                             (147)                  -
                                                               -----------        ------------
Net income                                                     $     9,406        $      6,355
                                                               ===========        ============
</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.
  (2) Realized capital gains and losses, after-tax is presented net of the
effects of the Company's deferred policy acquisition cost amortization to the
extent that such effects resulted from the recognition of realized capital gains
and losses.








                                       12
<PAGE>

                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                           FOR THE THREE MONTH PERIODS
                          ENDED MARCH 31, 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
                                                                   March 31,
                                                    ---------------------------------------
   (in thousands)                                          2001                  2000
                                                    -------------------    ----------------
<S>                                                  <C>                 <C>
   Life products
        Interest-sensitive                          $           12,241     $        13,407
        Traditional                                              5,602               3,208
        Other                                                    2,119               1,719
                                                    ------------------     ---------------
              Total life products                               19,962              18,334
                                                    ------------------     ---------------

   Investment products
         Fixed                                      $           81,852     $       122,824
         Variable                                               65,958              52,991
                                                    ------------------     ---------------
              Total investment products                        147,810             175,815
                                                    ------------------     ---------------
   Total                                            $          167,772     $       194,149
                                                    ==================     ===============

</TABLE>


    Statutory premiums and deposits decreased $26.4 million or 13.6% in the
first three months of 2001 as compared to the same period last year. Sales of
variable annuities increased 24.5% from the comparable period in 2000 due to
additional sales of the Putnam Allstate Advisor and the introduction of a new
variable annuity product from a new bank relationship. This increase was more
than offset by a 33.4% decrease in fixed annuity sales compared to the first
quarter of 2000. Fixed annuity sales were down in the banking channel as a
result of lower interest rates and increased competition. Statutory premiums on
life products increased 8.8% in the first three months of 2001 compared to the
same period last year due to increased sales of term products.











                                       13



<PAGE>

                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                           FOR THE THREE MONTH PERIODS
                          ENDED MARCH 31, 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
                                                                       March 31,
                                                          -----------------------------------
  (in thousands)                                               2001                2000
                                                          ---------------     ---------------
<S>                                                        <C>                 <C>
  Premiums
       Traditional life                                    $       5,656       $       3,208
       Immediate annuities with life contingencies                12,440              22,644
       Other                                                       2,118               1,728
                                                           -------------        ------------
            Total premiums                                        20,214              27,580
                                                           -------------        ------------

  Contract Charges
       Interest-sensitive life                             $       6,880        $      8,059
       Variable annuities                                          2,272               2,025
       Other                                                       1,202                 738
                                                           -------------        ------------
            Total contract charges                                10,354              10,822
                                                           -------------        ------------

            Total Premiums and Contract Charges            $      30,568        $     38,402
                                                           =============        ============

</TABLE>


    Total premiums were $20.2 million for the first three months of 2001
compared to $27.6 million the same period last year. Increased sales of
traditional life and other were more than offset by lower sales of immediate
annuities with life contingencies. Immediate annuities with life contingencies
decreased due to volatile market conditions and competitive pressures. The types
of immediate annuities sold may fluctuate significantly from period to period,
which impacts premiums reported.

    Total contract charges decreased 4.3% during the first three months of 2001
as compared to the same period last year. Increased contract charges on variable
annuities and other products was more than offset by declines in contract
charges on interest-sensitive life products. Contract charges on variable
annuities increased as a result of higher account values during the first
quarter of 2001 as compared to the same period last year. Lower contract charges
on interest-sensitive life products resulted from decreased cost of insurance
charges in 2001 as compared to 2000.

Net investment income

     Net investment income increased 19.5% in the first three months of 2001 as
compared to the same period last year. The increase was due to higher investment
balances and increased investment yields. Investments, excluding unrealized
gains and losses on fixed income securities, grew 5.5% in the first three months
of 2001 as compared to same period last year.


                                       14

<PAGE>

                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                           FOR THE THREE MONTH PERIODS
                          ENDED MARCH 31, 2001 AND 2000



Realized capital gains and losses, after-tax

     Realized capital gains, after-tax, were $499 thousand in the first three
months of 2001 compared to realized capital losses of $442 thousand in the same
period last year. The realized capital gains in 2001 were related to asset
investment sales that were made to better manage asset and liability duration
and facilitate investing in higher yielding securities. Period to period
fluctuations in realized capital gains and losses are largely the result of
timing of sales decisions reflecting management's decision on positioning the
portfolio, as well as valuation assessments of individual securities and overall
market conditions.

Operating income

     Operating income increased 33.2% or $2.3 million in the first three months
of 2001 compared to the same period last year. Increased net investment income
and lower contract benefits were partially offset by decreased premiums and
higher expenses.

     Investment margin, which represents the excess of investment income earned
over interest credited to policyholders and contractholders, increased by $2.9
million primarily due to a larger asset base coupled with slightly higher
yielding assets.

     Mortality margin, which represents premiums and insurance charges in excess
of related policy benefits, was impacted favorably by $400 thousand, as
mortality results were positive in first three months of 2001.

     Increased expenses during the first three months of 2001 are due primarily
to additional investments in technology, distribution and marketing.

INVESTMENTS

     The composition of the investment portfolio at March 31, 2001 is presented
in the table below:

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

Fixed income securities (1)                  $ 2,615,615            88.5%
Mortgage loans                                   206,357             7.0
Policy loans                                      32,285             1.1
Short-term                                       101,743             3.4
                                             -----------          ------

    Total                                    $ 2,956,000           100.0%
                                             ===========           =====


(1)  Fixed income securities are carried at fair value. Amortized cost for these
     securities was $2,357,944 at March 31, 2001.

    Total investments were $3.0 billion at March 31, 2001 compared to $2.8
billion at December 31, 2000. The increase was due to positive cash flows
generated from operations and increases in unrealized capital gains on fixed
income securities. At March 31, 2001, unrealized capital gains on the fixed
income securities portfolio were $257.7 million compared to $216.0 million at
December 31, 2000.

    At March 31, 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.



                                       15
<PAGE>

                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                           FOR THE THREE MONTH PERIODS
                          ENDED MARCH 31, 2001 AND 2000


Separate Accounts

     Separate Accounts assets and liabilities decreased 6.8% to $521.9 million
at March 31, 2001 from the December 31, 2000 balance. The decrease was primarily
attributable to unfavorable investment performance of the Separate Accounts
investments portfolio and an increase in surrenders and withdrawals.

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 88.5% 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 three month period ended March 31, 2001 were $25.4 million compared with
$18.9 million for the same period 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 will likely 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.



                                       16

<PAGE>
                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                           FOR THE THREE MONTH PERIODS
                          ENDED MARCH 31, 2001 AND 2000


FORWARD-LOOKING STATEMENTS AND RISK FACTORS

     This document contains "forward-looking statements" that anticipate results
based on management's plans 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,
our 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. We cannot
guarantee that any forward-looking statement will be accurate. However, we
believe 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 our 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    There is uncertainty involved in estimating the availability of reinsurance
     and the collectibility of reinsurance recoverables. This uncertainty arises
     from a number of factors, including the restructuring by reinsurers of
     their capital structures and segregation by the industry generally of
     reinsurance exposure into separate legal entities with dedicated capital.

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 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 the assets and liabilities of the Company's investment
     portfolio. 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, 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.

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.

                                       17
<PAGE>
                  ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                           FOR THE THREE MONTH PERIODS
                          ENDED MARCH 31, 2001 AND 2000


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 changes in
     control of any of these entities or other factors 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 eliminates 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 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 recently enacted
          Gramm-Leach-Bliley Act of 1999, which eliminates 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.






                                       18
<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 first quarter of 2001.



                                       19

<PAGE>


                              SIGNATURES



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







                                       20