8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): June 1, 2006

ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK

(Exact name of Registrant as Specified in Charter)

New York	333-100029	36-2608394
(State or other	(Commission	(IRS Employer
jurisdiction of	File Number)	Identification No.)
organization)

100 Motor Parkway, Suite 132
Hauppauge, New York	11788
(Address of Principal Executive Offices)	Zip

Registrant’s telephone number, including area code: (516) 451-5300

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 1 — Registrant’s Business and Operations

Item 1.01.              Entry into Material Definitive Agreements

Amendment No. 2 to Automatic Annuity Reinsurance Agreement

On June 1, 2006, Allstate Life Insurance Company of New York (“ALNY”) and Allstate Life Insurance Company (“ALIC”) executed an Amendment No. 2 to Automatic Annuity Reinsurance Agreement, effective immediately (“Second Amendment”).

ALNY and ALIC previously entered into the Automatic Annuity Reinsurance Agreement (“Original Agreement”) dated as of January 2, 2004 whereby ALNY ceded to ALIC 100% of liabilities arising out of certain variable annuity policy riders issued by ALNY.

The Second Amendment provides that the Original Agreement is terminated as of June 1, 2006 and ALNY shall fully recapture all liabilities which were previously ceded to ALIC under the Original Agreement.

A copy of the Second Amendment is attached hereto as Exhibit 10.1 to this report.

Section 9 — Financial Statements and Exhibits

Item 9.01.              Financial Statements and Exhibits.

(d)           Exhibits

Exhibit No.	Description
10.1	Amendment No. 2 to Annuity Reinsurance
	Agreement dated as of June 1, 2006.

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SIGNATURE

                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 hereunto duly authorized.

ALLSTATE LIFE INSURANCE COMPANY
By:	/s/ Mary J. McGinn
	Name:	Mary J. McGinn
	Title:	Vice President and
		Assistant Secretary

Date:   June 7, 2006

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EX-10.1

Exhibit 10.1

AMENDMENT NO. 2

TO AUTOMATIC ANNUITY REINSURANCE AGREEMENT

This AMENDMENT NO. 2 TO AUTOMATIC ANNUITY REINSURANCE AGREEMENT, dated as of June 1, 2006 (“Amendment No. 2”) is by and between ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK (the “Cedent”) and ALLSTATE LIFE INSURANCE COMPANY (the “Reinsurer”).

WHEREAS, the Cedent and the Reinsurer entered into that certain Automatic Annuity Reinsurance Agreement dated as of January 2, 2004 (as subsequently amended, the “Agreement”), whereby the Cedent ceded to the Reinsurer 100% of liabilities arising out of certain variable annuity policy riders issued by the Cedent.

WHEREAS, the Cedent and Reinsurer entered into Amendment No.1 to the Agreement, effective January 1, 2005.

WHEREAS, the parties mutually desire to terminate the Agreement and to have the Cedent fully recapture all liabilities ceded pursuant to the Agreement (the “Policy Liabilities”), upon the terms and conditions set forth in this Amendment No. 2.

NOW THEREFORE, in consideration of the above stated premises and the mutual agreements set forth below, the parties agree as follows:

1.The Cedent and the Reinsurer agree that the Agreement shall be deemed terminated as of 11:59 p.m. on June 1, 2006 (“Recapture Date”).  Furthermore, as of the Recapture Date, the Cedent shall be deemed to have recaptured all Policy Liabilities from the Reinsurer.  As such, as of the Recapture Date, the Reinsurer shall be deemed to have;

(i)ceded, transferred, and assigned to the Cedent all Policy Liabilities; and

(ii)sold, transferred, and assigned to the Cedent, any and all of the Reinsurer’s right, title, and interest in and to all gross premiums, premium adjustments, amounts recoverable from reinsurers, and other similar payments and receivables that are or may be due or payable  under the Reinsured Riders.

The parties shall cooperate with each other in delivering such other documents, instruments and certificates as the other party may reasonably request to further effectuate this recapture.

The Cedent and the Reinsurer agree that this recapture is being effected by mutual agreement under the terms of this Amendment No. 2.  The terms of Article IX of the Agreement are inapplicable to this recapture.

2.Within forty-five (45) calendar days following the Recapture Date, the Reinsurer shall transfer to the Cedent cash or invested assets including accrued interest with market value equal to the statutory reserves associated with the recaptured liabilities.  The applicable portion of these items will be calculated as of the Recapture Date.

Initially capitalized terms not otherwise defined herein shall have the same meaning as set forth in the Agreement.

IN WITNESS HEREOF, the parties hereto have caused this AMENDMENT NO. 2 TO AUTOMATIC ANNUITY REINSURANCE AGREEMENT to be executed by their respective duly authorized officers as of the date first above written.

ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK

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ALLSTATE LIFE INSURANCE COMPANY

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