485BPOS 1 nytotalaccum20184885bpos.htm NYTOTALACCUMULATOR485BPOS NY Total Accumulator 2018 Combined Document
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 16, 2018

File No. 333-148225
811-21250

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-6

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

Post-effective Amendment 11

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
ACT OF 1940

Amendment No. 45

Allstate Life of New York Variable Life Separate Account A
(Exact Name of Registrant)

ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
(Name of Depositor)

878 Veteran's Memorial Highway
Suite 400
Hauppauge, New York 11788
631-357-8920
(Address of Depositor's principal executive offices)

CT Corporation
208 South LaSalle Street
Suite 814
Chicago, IL 60604
(312) 345-4320

(Name, Address and Telephone Number of Agent for Service)

Copy to:

SONYA EKART, ESQUIRE
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
2920 SOUTH 84TH STREET
LINCOLN, NE 68506

It is proposed that this filing will become effective (check appropriate box)

/ / immediately upon filing pursuant to paragraph (b) of Rule 485
/X/ on May 1, 2018, pursuant to paragraph (b) of Rule 485


/ / 60 days after filing pursuant to paragraph (a)(1) of Rule 485
/ / on (date) pursuant to paragraph (a)(1) of Rule 485

IF APPROPRIATE, CHECK THE FOLLOWING BOX:

/ / This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

The Registrant has registered an indefinite amount of securities under the Securities Act of 1933 pursuant to Section 24 of the Investment Company Act of 1940.

Securities being offered - interests in Allstate Life of New York Variable Life Separate Account A of Allstate Life Insurance Company of New York under variable life insurance contracts.

Approximate date of proposed public offering: continuous.

 
TotalAccumulatorSM Variable Adjustable Life Prospectus
Individual Flexible Premium Variable Adjustable Life Insurance Policies





Issued by:
Allstate Life Insurance Company of New York





In connection with:
Allstate Life of New York Variable Life Separate Account A





Street Address:
2940 S. 84th Street
Lincoln, NE 68506-4142





Mailing Address:
P.O. Box 660191
Dallas, TX 75266-0191





Telephone Number: 1-800-865-5237
Fax Number: 1-877-328-1982





This Prospectus describes information you should know before you purchase the TotalAccumulatorSM Flexible Premium Variable Adjustable Life Insurance Policy. Please read it carefully and retain it for your records.
This Policy is designed to provide both life insurance protection and flexibility in connection with Premium payments and Death Benefits. Subject to certain restrictions, you may vary the frequency and amount of Premium payments and increase or decrease the level of life insurance benefits payable under the Policy. In addition, it may not be advantageous for you to replace existing insurance coverage or buy additional insurance coverage if you already own a variable life insurance policy.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
The date of this Prospectus is May 1, 2018.


1 PROSPECTUS


Table of Contents

 
Page
 
 
 
 
 
 
 
 
 
Page
 
 
 
 
 
 
 
 
Reportable Policy Sale

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THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH SUCH OFFERING MAY NOT BE LAWFULLY MADE. ALLSTATE LIFE INSURANCE COMPANY OF NEW
YORK DOES NOT AUTHORIZE ANY INFORMATION OR REPRESENTATIONS REGARDING THE OFFERING DESCRIBED IN THIS PROSPECTUS OTHER THAN AS CONTAINED IN THIS PROSPECTUS.
Capitalized terms used in this prospectus are defined where first used or in the Glossary beginning on page 43 of this prospectus.


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Summary
Description of the Policy and Policy Benefits
1. What is a Flexible Premium Variable Adjustable Life Insurance Policy?
Your Policy is designed to be flexible to meet your specific life insurance needs. Your Policy has a Death Benefit, Policy Value (both terms defined below) and other features of life insurance providing fixed benefits. Your Policy is a “flexible premium” policy because you have a great amount of flexibility in determining when and how much Premium you want to pay. Your Policy is a “variable” policy because the Death Benefit and Policy Value may vary according to the investment performance of the Sub-Accounts to which you have allocated your Premiums. The Policy provides you with an opportunity to take advantage of any increase in your Policy Value but you also bear the risk of any decrease.
2. What are the Premiums for this Policy?
You have considerable flexibility as to the timing and amount of your Premiums. You have a required first year Premium for your Policy, which is based on your Policy’s Face Amount and the Insured’s age, sex and risk class. You do not have to pay the required Premium after the first Policy Year. However, to take advantage of the Safety Net Premium feature or the Coverage Guarantee Rider (discussed below), you must pay the cumulative Safety Net Premiums or the Coverage Guarantee Rider premiums due. Otherwise, you may pay any level of Premium, as long as the Premium would not cause your Policy to lose its status as a life insurance contract under the Tax Code. For more information, please see “Purchase of Policy and Premiums” on page 12 and “Federal Taxes” beginning on page 35.
You also may establish a planned periodic Premium. You are not required to pay the planned periodic Premium and we will not terminate your Policy merely because you did not.
If you pay more Premium than permitted under section 7702A of the Tax Code, your Policy would be classified as a modified endowment contract, which would affect the federal income tax treatment of loans and withdrawals. For more information, see “Federal Taxes - Modified Endowment Contracts” on page 36.
3. What is the Safety Net Premium Feature?
Unless otherwise required by your state, we agree to keep the Policy (including any riders) in force for a specified period, regardless of the investment performance of the Sub-Accounts, as long as your total Premiums paid (as reduced to reflect withdrawals and Policy Debt) at least equals the sum of monthly Safety Net Premiums on or before the Safety Net Premium guarantee expiry date shown in your Policy. If the Insured is age 70 or less at the Issue Date, the specified period is the first ten Policy Years. If the Insured is age 71 to 75 at the Issue Date, it runs from the Issue Date until the next Policy Anniversary after the Insured’s 80th birthday. If the Insured is over age 75 at the Issue Date, it runs from the Issue Date until five years after the issue date. For additional discussion, see “Purchase of Policy and Premiums - Safety Net Premium” on page 13.
When the Safety Net Premium is not in effect, your Policy remains in force as long as the Net Surrender Value is large enough to pay the charges on your Policy as they come due. For more detail please see “Lapse and Reinstatement” on page 30.
4. What is the Coverage Guarantee Rider Feature?
If this rider is elected, unless otherwise required by your state, we agree to keep the Policy (including any riders) in force for a specified period longer than the Safety Net Premium Period under the terms of this rider. This rider must be elected at Policy Issue, and the insured must be between age 18 and 70 at policy issue to be eligible.
Two possible coverage levels are available under the Coverage Guarantee Rider: Extended Coverage and Lifetime Coverage. The Extended Coverage specified period extends to the later of the policy anniversary following the Insured’s 70th birthday, or 20 years. The Lifetime Coverage specified period extends until the Insured’s 121st birthday.
Each coverage level has a cumulative premium requirement that must be met. Lifetime Coverage has a higher cumulative premium requirement than Extended Coverage. If the Lifetime Coverage cumulative premium requirement is not met, you can still choose to meet the Extended Coverage premium requirement.
When the Coverage Guarantee Rider is no longer in effect, your Policy remains in force as long as the Safety Net Premium is in effect. If the Safety Net Premium is not in effect, your Policy remains in force as long as the Net Surrender Value is large enough to pay the charges on your Policy as they come due. For more detail please see “Lapse and Reinstatement” on page 30.
5. How is my Policy Value Determined?
Your Premiums are invested in one or more of the Sub-Accounts or allocated to the Fixed Account, as you instruct us. Your Policy Value is the sum of the values of your interests in the Sub-Accounts of the Separate Account, plus the values in the Fixed Account and the Loan Account. Your Policy Value depends on the investment performance of the Sub-Accounts and the amount of interest we credit to the Fixed Account, as well as the Net Premiums paid, partial withdrawals, and charges assessed. We have summarized

4 PROSPECTUS


the charges imposed under the Policy in “Fee Tables” and described them in more detail in “Charges and Deductions” on page 31. For additional discussion of your Policy Value, please see “Policy Value” on page 14.
6. What are the Investment Choices for this Policy?
The Policy currently offers multiple investment options. You may invest in up to twenty-one (21) Sub-Accounts or twenty (20) Sub-Accounts plus the Fixed Account. Each Sub-Account invests in a single Portfolio. See “Investment and Fixed Account Options - The Sub-Accounts and the Portfolios” on page 18 for a listing of the Sub-Accounts currently available under the Policy. We also offer a Fixed Account option. You may transfer money among your investment choices, subject to restrictions. Please see “Risks of the Policy” on page 6 and “Transfers - Trading Limitations” on page 17.
As a Policy Owner you may also elect to participate in the SelectBalanceSM Asset Allocation Program (“SelectBalance”) for no additional charge. Asset allocation is the process by which your Policy Value is invested in different asset classes in a way that matches your risk tolerance, time horizon, and investment goals. By spreading your Policy Value across a range of asset classes, you may, over time, be able to reduce the risk of investment volatility and potentially enhance returns.
If you elect to participate in this program, you may select one of the currently available Morningstar ETF Allocation Series Portfolios. The Portfolios represent five different investment styles: Conservative, Income and Growth, Balanced, Growth, and Aggressive Growth. Each of the Morningstar ETF Allocation Series Portfolios is designed to meet the investment goals of the applicable investment style.
We recommend that you consult with your sales representative and obtain and read the prospectus for the Morningstar ETF Allocation Series carefully before participating in the SelectBalance program. Asset allocation does not guarantee a profit or protect against loss in a declining market. Please see “SelectBalanceSM Asset Allocation Program” on page 22 for more information.
7. How are my Premiums and Policy Value Allocated?
Before your Premiums are allocated to the Policy Value, we deduct a Premium Expense Charge of 5.25%. For more detail, see “Charges and Deductions” on page 31. The amount remaining after the deduction of the Premium Expense Charge is called the Net Premium.
When you apply for the Policy, you specify in your application how to allocate your Net Premiums. You may change your allocations at any time by notifying us in writing at the address on the front cover of this Prospectus. See “Purchase of Policy and Premiums - Allocation of Premiums” on page 13.
Generally, we allocate your initial Premiums to the Sub-Accounts and the Fixed Account when we have received your Premium and underwriting approval. We reserve the right, however, to delay the allocation of your initial Premium to the Sub-Accounts as described in “Purchase of Policy and Premiums - Allocation of Premiums” on page 13. Furthermore, if there are outstanding requirements, your Premiums are not allocated until you satisfy those requirements.We generally allocate your other Premiums to the Sub-Accounts and the Fixed Account as of the date we receive your Premiums in our home office. However, we reserve the right to delay the allocation of any Premium that requires underwriting. In cases where premium allocations are delayed due to outstanding requirements, the premium is held in an account without interest until the policy can be issued.
During the free-look period all premiums will be allocated to a fixed account. If you cancel your policy during this period, the greater of a) all premiums or b) Policy Value less any Policy Debt will be returned to you.
8. May I Transfer Policy Value Among the Sub- Accounts and the Fixed Account?
You may transfer Policy Value among the Sub-Accounts and the Fixed Account by writing to or calling us at 1-800-268-5619. While you also may transfer amounts from the Fixed Account, certain restrictions may apply. While we currently are waiving the transfer fee, we reserve the right under your Policy to charge a transfer fee on certain transfers. See “Transfers” on page 15.
In addition, you may use our automatic Dollar Cost Averaging Program or our Portfolio Rebalancing Program, though you may not use both at the same time. For additional information, please see “Transfers - Dollar Cost Averaging” on page 15.
9. What are the Death Benefit Options?
While your Policy is in force, we will pay a Death Benefit to the Beneficiary upon the death of the Insured. The Policy provides for two Death Benefit options you may choose between while the Insured is alive. Under Option 1, the Death Benefit is equal to the greater of your Policy’s Face Amount or the Policy Value multiplied by a specified percentage. Under Option 2, the Death Benefit is equal to the greater of your Policy’s Face Amount plus the Policy Value on the Insured’s date of death or the Policy Value multiplied by a specified percentage. Decreases in the Policy Value never cause the Death Benefit to be less than the Face Amount. Before we pay the Death Benefit to the Beneficiary, however, we subtract an amount sufficient to repay any outstanding Policy Debt and to pay any due and unpaid charge. For additional information, please see “Policy Loans” on page 26 and “Death Benefits and Optional Insurance Benefits” on page 22.

5 PROSPECTUS


10. How is the Death Benefit paid?
While the Policy is in force and when the Insured dies, we pay a Death Benefit to your Beneficiary. You or your Beneficiary may choose to receive the proceeds of the Policy in the form of one sum payment or over a period under an optional payment plan. The Death Benefit proceeds are reduced by any amount you owe us, such as outstanding loans, loan interest or unpaid charges. The proceeds may be increased if, for example, you have added a rider that provides an additional benefit. We determine the amount of the Death Benefit proceeds as of the end of the Valuation Period during which the Insured dies. We usually pay the Death Benefit proceeds within seven days after we have received due proof of death and all other requirements we deem necessary have been satisfied.
11. Can I Increase or Decrease my Policy’s Face Amount?
Yes, you have considerable flexibility to increase or decrease your Policy’s Face Amount. You may request an increase and/or a decrease after the first Policy Year by sending a written request to us. Your requested increase must be at least $10,000. If you request an increase, you must provide evidence of insurability to us that meets our standards. An increase in the Face Amount increases the charges deducted from your Policy Value. You may not decrease the Face Amount of your Policy below $100,000. We do not permit a Face Amount change if the Policy is in the Grace Period. For more detail, see “Death Benefits and Optional Insurance Benefits - Change to Face Amount” on page 23. In addition, modifying your Policy’s Face Amount might have tax ramifications. For an additional discussion, please see “Federal Taxes” on page 35.
12. Do I have Access to the Value of my Policy?
Yes. You may surrender your Policy at any time for its Net Surrender Value. Upon surrender, life insurance coverage under your Policy ends. We may subtract a surrender charge from your surrender proceeds during the first ten Policy Years and the first ten years following an increase to the Face Amount. For more information concerning the calculation of surrender charges, see “Charges and Deductions - Surrender Charge” on page 32.
You also may withdraw part of your Policy Value through a partial withdrawal, which must equal at least $250. In addition, the maximum partial withdrawal amount may not reduce the Face Amount below $25,000. For more detail, see “Surrenders and Withdrawals” on page 27.
Surrenders and withdrawals may have tax consequences. For an additional discussion, please see “Risks of the Policy” on page 6 and “Federal Taxes - Taxation of Policy Benefits” on page 35.
13. May I Take out a Policy Loan?
You may borrow money from us using your Policy as security for the loan. The maximum loan amount is equal to 90% of the Surrender Value so long as the Net Surrender Value after the loan is taken is sufficient to cover the most recent total monthly deduction times 3. Other restrictions may apply if your Policy is issued in connection with a Qualified Plan. For more detail, see “Policy Loans” on page 26. For a discussion regarding the possible tax consequences of loans, see “Federal Taxes” on page 35.
14. Can I Cancel my Policy?
You may cancel your Policy by returning it to us within 31 days after you receive it. During this period premium will be allocated to a fixed account. If you cancel your policy during this period, the greater of a) all premiums or b) Policy Value less any Policy Debt will be returned to you. Your Policy contains specific information about your free-look rights. For more information, see “Cancellation Rights - Free-Look Period,” on page 31.
Risks of the Policy
1. Is my Policy Value Guaranteed?
Your Policy Value is not guaranteed. However, the payment of the Death Benefit may be guaranteed under the Safety Net Premium feature or the Coverage Guarantee Rider. The value of your Policy fluctuates with the performance of the investment options you choose. Your investment options may not perform to your expectations. Your Policy Values in the Sub-Accounts may rise or fall depending on the performance of the Portfolios in which the Sub-Accounts invest and the charges under your Policy. For more detail, please see “The Portfolios and Associated Risks” on page 8 and “Investment and Fixed Account Options” on page 18. In addition, a guarantee with respect to interest rate applies only to the Fixed Account investment option.
2. Is this Policy Suitable for Short-Term Savings?
No, you should not purchase the Policy if you may need to access the Policy Value within a short time. Because the Policy is designed to provide benefits on a long-term basis, before purchasing a Policy for a specialized purpose, you should consider whether the long-term nature of the Policy is consistent with the purpose for which it is being considered.
3. Can my Policy Lapse?
Your Policy could terminate if the value of your Policy becomes too low to support the Policy’s monthly charges and the Safety Net Premium feature or the Coverage Guarantee Rider is not in effect. If this occurs, we notify you in writing. You will then have

6 PROSPECTUS


a 61-day Grace Period to pay additional amounts to prevent your Policy from terminating. See “Lapse and Reinstatement” on page 30. If you have any outstanding Policy Loans when your Policy lapses, you may have taxable income as a result. See “Federal Taxes” on page 35.
4. Are There Risks Involved with Specialized Uses of the Policy?
Because the Policy provides for an accumulation of Policy Values as well as Death Benefit, you may wish to use it for various individual and business planning purposes. Purchasing the Policy in part for such purposes may involve certain risks. For example, if the investment performance of the Sub-Accounts is poorer than expected or if sufficient Premiums are not paid, the Policy may lapse or may not accumulate sufficient Policy Value to fund the purpose for which you purchased the Policy. Withdrawals and Policy Loans may significantly affect current and future Policy Value, Surrender Value or Death Benefit proceeds. The Policy is designed to provide benefits on a long-term basis. Before purchasing a Policy for a specialized purpose, you should consider whether the long-term nature of the Policy is consistent with the purpose for which it is being considered. In addition, using a Policy for a specialized purpose may have tax consequences. See “Federal Taxes” on page 35.
5. What are the Limitations on Withdrawal?
As noted above, the minimum withdrawal amount permitted is $250, and maximum partial withdrawal amount may not reduce the Face Amount below $25,000. After a partial withdrawal, the Net Surrender Value must be sufficient to cover the last monthly deduction times three.
While the surrender charge does not apply to partial withdrawals, we impose a $25 service fee on each withdrawal. Please note that withdrawals reduce your Policy’s Death Benefit, See “Partial Withdrawal” on page 28. In addition, withdrawals may have tax consequences. See “Federal Taxes” on page 35.
6. What are the Limitations on Transfer?
We reserve the right to limit the size of transfers and remaining balances, and to limit the number and frequency of transfers among your investment options and the Fixed Account. In addition, while we currently are not charging a transfer fee, the Policy gives us the right to impose a transfer fee of up to $10 in certain circumstances. We reserve the right to limit transfers in any Policy Year, or to refuse any transfer request for a Policy Owner or certain Policy Owners. For example, we reserve the right to limit excessive trading and transfers that would disadvantage Policy Owners or have a detrimental effect on Accumulation Unit Values or the share price of any Portfolio. See “Transfers - Market Timing and Excessive Trading” on page 16 and “Transfers - Trading Limitations” on page 17.
7. What are the Limitations or Charges on Surrender of the Policy?
You may surrender your Policy at any time. We deduct a surrender charge from the surrender proceeds. The surrender charge is calculated as described in “Charges and Deductions - Surrender Charge” on page 32. While the amount of the surrender charge decreases over time, it may be a substantial portion or even exceed your Policy Value. In the event the Surrender Charge exceeds the Policy Value, the amount we deduct upon surrender is limited to the Policy Value. In addition, the surrender of your Policy may have tax consequences. See “Federal Taxes” on page 35.
8. What are the Risks of Taking a Policy Loan?
Taking a loan from your Policy may increase the risk that your Policy will lapse, may prevent you from satisfying the Safety Net or Coverage Guarantee Rider cumulative premium requirements, will have a permanent effect on your Policy Value and will reduce the Death Proceeds. In addition, if your Policy is a modified endowment contract for tax purposes, taking a Policy Loan may have tax consequences. See “Federal Taxes - Modified Endowment Contracts” on page 36.
9. What are the Tax Consequences of Buying this Policy?
Your Policy is structured to meet the definition of a life insurance contract under the Tax Code. We may need to limit the amount of Premiums you pay under the Policy to ensure that your Policy continues to meet that definition.
Current federal tax law generally excludes all Death Benefits from the gross income of the beneficiary of a life insurance policy. In addition, you generally are not subject to taxation on any increase in the Policy Value until it is withdrawn. Generally, you are taxed on surrender proceeds and the proceeds of any partial withdrawals only if those amounts, when added to all previous distributions, exceed the total Premiums paid. Amounts received upon surrender or withdrawal in excess of Premiums paid are treated as ordinary income.
Special rules govern the tax treatment of life insurance policies that meet the federal definition of a modified endowment contract. Depending on the amount and timing of your Premiums, your Policy may meet that definition. Under current tax law, Death Benefit payments under modified endowment contracts, like Death Benefit payments under other life insurance contracts, generally are excluded from the gross income of the beneficiary. Withdrawals and policy loans, however, are treated differently. Amounts withdrawn and policy loans are treated first as income, to the extent of any gain, and then as a return of Premium. The income portion of the distribution is includible in your taxable income. In addition, an additional 10% federal penalty tax is generally

7 PROSPECTUS


imposed on the taxable portion of amounts received before age 59½. We will not accept any Premium that would cause the Policy not to qualify as a life insurance contract under the Tax Code. For more information on the tax treatment of the Policy, see “Federal Taxes” on page 35.
The death benefit of life insurance policies that were transferred for value may be subject to ordinary income taxes. Estate taxes may apply. Consult your tax advisor for additional information.
The Portfolios And Associated Risks
1. What is a Portfolio?
Each of the Sub-Accounts invests in the shares of one of the Portfolios. Each Portfolio is either an open-end management investment company registered under the Investment Company Act of 1940 (“1940 Act”) or a separate investment series of an open-end management investment company. Each Portfolio holds its assets separate from the assets of the other Portfolios, and each Portfolio has its own distinct investment objective and policies, which are described in the Prospectuses for the Portfolios. Each Portfolio operates as a separate investment fund, and the income, gains and losses of one Portfolio generally have no effect on the investment performance of any other. Under the Policy, the Sub-Accounts currently invest in the Portfolios set forth in this Prospectus. Some of the Sub-Accounts described in this Prospectus may not be available under your Policy.    For an additional discussion of the Portfolios, please see “Investment and Fixed Account Options - The Sub-Accounts and the Portfolios” on page 18.
2. What are the Risks of the Portfolios?
We do not promise that the Portfolios will meet their investment objectives. Amounts you have allocated to Sub-Accounts may grow in value, decline in value or grow less than you expect, depending on the investment performance of the Portfolios in which those Sub-Accounts invest. You bear the investment risk that those Portfolios possibly will not meet their investment objectives. A description of each Portfolio’s investment policies and a comprehensive statement of each Portfolio’s risks may be found in its Prospectus. For additional information, please see “Investment and Fixed Account Options - The Sub-Accounts and the Portfolios” on page 18.
3. How can I Learn More about the Portfolios?
You should read the Portfolios’ current Prospectuses for detailed information concerning their investment objectives and strategies, and their investment risks. You should read the Portfolios’ Prospectuses before allocating amounts to the Sub-Accounts. If you do not have a Prospectus for a Portfolio, please contact us at the number listed on the first page of this Prospectus and we will send you a copy.

8 PROSPECTUS


Fee Tables
The following tables describe the fees and expenses that you pay when buying, owning and surrendering the Policy. The first table describes the maximum fees and expenses that you pay at the time that you buy or surrender the Policy or transfer funds between investment options.
TRANSACTION FEES
 
 
 
 
 
Charge
 
When Charge is Deducted
 
Amount Deducted
Premium Expense Charge (1)
 
When you pay a Premium.
 
5.25% of the Premium amount.
Surrender Charge (per $1000 of Face Amount) (2)
 
When you surrender your Policy during the first 10 Policy Years.
 
 
 
 
 
 
Maximum: $49.00 per $1000
Minimum: $3.60 per $1000
Initial Surrender Charge for 45 year-old male non-smoker, $120,000 Face Amount
 
 
 
$20.98 per $1000
Partial Withdrawal Service Fee (3)
 
When you make a withdrawal.
 
The lesser of 2% of amount withdrawn or $25.00
Transfer Fee (4)
 
Second and each subsequent transfer in each calendar month.
 
$10.00 maximum; $0 current
Loan Interest Rate (5)(6)
 
When you have a Policy Loan
 
Interest Rate on Preferred Loans 3%
Interest Rate on Standard Loans 4%
(1)
New York does not assess state premium taxes.
(2)
The initial amount of the surrender charge generally equals the Initial Face Amount of your Policy multiplied by the applicable rate per thousand dollars of Face Amount. The applicable rate depends on the Insured’s age at issue, sex, status as a smoker and appropriate surrender charge percentage for the Policy Year in which the surrender occurs. An additional surrender charge applies to Face Amount increases. The surrender charge shown in the table above may not be representative of the charge you would pay. Surrenders are not assessed a partial withdrawal fee. For more information about the surrender charge that would apply to your Policy, please contact us at the address or telephone number shown on the first page of this Prospectus or contact your agent.
(3)
A Surrender Charge is not assessed on a partial withdrawal.
(4)
Currently, we are waiving this fee. The underlying Portfolios are authorized by the SEC regulation to adopt and impose redemption fees of up to 2% of the amount transferred if a Portfolio’s Board of Directors determines that such fees are necessary to minimize or eliminate short-term transfer activity. Currently, none of the Portfolios are imposing redemption fees. For more information see Short Term Trading Fees on page 17.
(5)
When we make a Policy Loan, we transfer to the Loan Account a portion of the Policy Value equal to the loan amount. The amounts allocated to the Loan Account are currently credited with interest at 3%. For more information, see “Policy Loans” on page 26.
(6)
Upon expiration of the initial surrender charge period, all new and existing loans will be treated as preferred loans.

9 PROSPECTUS


The table below describes the fees and expenses that you pay periodically during the time that you own the Policy, not including the Portfolio fees and expenses. Each of these fees is calculated monthly and deducted from your Policy Value as part of the Monthly Deduction
PERIODIC CHARGES OTHER THAN PORTFOLIO OPERATING EXPENSES
 
 
 
 
 
 
Charge
 
When Charge is Deducted
 
Amount Deducted
Cost of Insurance Charge (per $1000 Net Amount at Risk) (1)
 
Monthly
 
 
 
Maximum and Minimum COI Charge among all possible insureds:
 
 
 
Guaranteed:
Maximum: $83.33 per $1000.
Minimum: $0.02 per $1000.
Current:
Maximum: $60.45 per $1000
Minimum: $0.02 per $1000.
COI Charge for a 45-year old Male Non-Smoker, $120,000 Face Amount, at issue
 
 
 
Guaranteed:
$0.20 per $1000.
Current:
$0.20 per $1000.
Administrative Expense Charge (tiered charge based upon per $1000 Initial Face Amount)(2)
 
Monthly during the first 10 Policy Years
 
Guaranteed Monthly rate:
Same as current
Current Monthly rate:
$0.09 per $1000 on the first $100,000
Policy Fee
 
Monthly
 
Guaranteed: $15.00
 
Mortality and Expense Risk Charge (as a percentage of total monthly Subaccount Value) (3)
 
Monthly
 
Guaranteed Monthly Rate:
Policy Years 1-10: 0.058%
 
(1)
The cost of insurance charge varies based on individual characteristics such as the age, Policy Year, underwriting class, Face Amount and sex of the Insured. We determine the current cost of insurance rates, but we guarantee that we will never charge you a higher cost of insurance rate than the guaranteed rate shown in your Policy. We calculate a separate cost of insurance charge for any increase in the Face Amount based on the Insured’s circumstances at the time of the increase. For more information about the calculation of the Net Amount at Risk and the cost of insurance charges, see “Charges and Deductions” on page 31. Net Amount at Risk is defined as (a) - (b), where (a) is the Death Benefit as of the prior Monthly Activity Day divided by 1.0032737; and (b) is the Policy Value as of the prior Monthly Activity Day.
The cost of insurance charge shown in the table above may not be representative of the charge you would pay. For more information about the cost of insurance charge that would apply to your Policy, please contact us at the address or telephone number shown on the first page of this Prospectus or contact your agent.
(2)
The monthly Administrative Expense Charge is 1/12 the annual rate. The maximum monthly rate for the Administrative Expense Charge is the same as current. The current monthly rate for Face Amounts in excess of $100,000 is $0.03 for $1,000.
(3)
The guaranteed monthly mortality and expense risk charge is 0.058% for the first 10 Policy Years and 0.024% thereafter.
We currently do not deduct a separate charge against the Separate Account for income taxes. In the future, however, we may impose such a charge if, in our sole discretion, we determine that we will incur a tax from the operation of the Separate Account.

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OPTIONAL BENEFIT CHARGES
Currently, we are offering the following optional riders. The charges for the riders you select are deducted monthly from your Policy Value as part of the Monthly Deduction or as noted. You may not be eligible for all optional Riders shown below. The benefits provided under each rider are summarized in “Optional Insurance Benefits” beginning on page 23 below:
Optional Benefit
 
When Charge is Deducted
 
Amount Deducted
Children’s Level Term Rider (per $5,000 unit of coverage)
 
Monthly
 
$2.50 per unit per month
Accidental Death Benefit Rider (per $1,000 of benefit amount) (1)
 
Monthly
 
 
Maximum and minimum COI Charge among all possible insureds:
 
 
 
Maximum COI: $0.13 per $1,000
Minimum COI: $0.08 per $1,000
COI charge for a 45-year old Male Non-Smoker, $120,000 face amount, at issue:
 
 
 
COI: $0.10 per $1,000
Continuation of Payment Rider (per $100 of benefit amount) (2)
 
Monthly
 
 
Maximum and minimum COI Charge among all possible insureds:
 
 
 
Maximum COI: $1.54 per $100
Minimum COI: $0.26 per $100
COI charge for a 45-year old Male Non-Smoker, $120,000 face amount, at issue:
 
 
 
COI: $0.53 per $100
Additional Insured Term Rider (per $1000 of benefit amount) (3)
 
Monthly
 
 
Maximum and minimum COI Charge among all possible insureds:
 
 
 
Maximum COI: $30.40 per $1,000
Minimum COI: $0.01 per $1,000
COI charge for a 45-year old Male Non-Smoker, $120,000 face amount, at issue:
 
 
 
COI: $0.12 per $1,000
Primary Insured Term Rider (4)
 
Monthly
 
 
Maximum and minimum COI Charge among all possible insureds:
 
 
 
Maximum COI: $30.04 per $1,000
Minimum COI: $0.02 per $1,000
COI charge for a 45-year old Male Non-Smoker, $120,000 face amount, at issue:
 
 
 
COI: $0.06 per $1,000
Coverage Guarantee Rider (5)
 
Monthly
 
$0.01 per $1,000
Guaranteed Insurability Rider (6)
 
Monthly
 
 
Minimum and maximum COI Charge among all possible insureds:
 
 
 
Maximum COI: $0.12 per $1,000
Minimum COI: $0.05 per $1,000
COI Charge for 30-year old:
 
 
 
COI: $0.11 per $1,000
Accelerated Death Benefit Rider, Terminal Illness
 
When Benefit Elected
 
$150
Overloan Protection Rider
 
When Benefit Elected
 
4.5% of Policy Value
(1)
The applicable charge depends on the Insured’s age when the Rider is added to your Policy. The charge shown in the table above may not be representative of the charge you would pay. For more information about the charge that would apply to your Rider, please contact us at the address or telephone number shown on the first page of this Prospectus, or contact your agent.
(2)
The applicable charge depends on the Insured’s sex and age when the Rider is added to your Policy. The charge shown in the table above may not be representative of the charge you would pay. For more information about the charge that would apply to your Rider, please contact us at the address or telephone number shown on the first page of this Prospectus, or contact your agent.
(3)
The applicable charge depends on the Additional Insured’s age, sex, rider Face Amount, and underwriting status when the Rider is added to your Policy. The charge shown in the table above may not be representative of the charge you would pay. For more information about the charge that applies to your Rider, please contact us at the address or telephone number shown on the first page of this Prospectus, or contact your agent.
(4)
The applicable charge depends on the Insured’s age at issue, sex and underwriting status. The charge shown in the table above may not be representative of the charge you would pay. For more information about the charge that would apply to your Rider, please contact us at the address or telephone number shown on the first page of this Prospectus, or contact your agent.
(5)
The Coverage Guarantee Rider can be elected only at Policy Issue.
(6)
The Guaranteed Insurability Rider can be elected only at Policy issue for insureds 38 years old and younger. The applicable charge depends on the Insured’s age at issue. For more information about the charge that applies to your Rider, please contact us at the address or telephone number shown on the first page of this Prospectus, or contact your agent.

11 PROSPECTUS



Portfolio Annual Expenses (as a percentage of Portfolio average daily net assets)
The next table shows the minimum and maximum total operating expenses charged by the Portfolios that you may pay periodically during the time that you own the Policy. Advisors and/or other service providers of certain Portfolios may have agreed to waive their fees and/or reimburse Portfolio expenses in order to keep the Portfolios’ expenses below specified limits. The range of expenses shown in this table does not show the effect of any such fee waiver or expense reimbursement. More detail concerning each Portfolio’s fees and expenses appears in the prospectus for each Portfolio.
 
Minimum
Maximum
Total Annual Operating Expenses (1) (expenses that are deducted from Portfolio assets, which may include management fees, distribution and/or service (12b-1) fees, and other expenses)
0.20%
1.50%
(1)
Expenses are shown as a percentage of Portfolio average daily net assets (before any waiver or reimbursement) as of December 31, 2017.
Purchase of Policy and Premiums
Application for a Policy. You may apply to purchase a Policy by submitting a written application to us at the address given on the first page of this Prospectus. The maximum issue age is 80. The minimum Face Amount for a Policy is $100,000. Before we issue a Policy, we require you to submit evidence of insurability satisfactory to us. Acceptance of your application is subject to our underwriting rules. We reserve the right to reject your application for any lawful reason. If we do not issue a Policy to you, we return your Premium to you. We reserve the right to change the terms or conditions of your Policy to comply with changes in the applicable law.
We issue your Policy when we have determined that your application meets our underwriting requirements. We apply our customary underwriting standards to the proposed Insured. If on the Issue Date there are outstanding requirements, we will allocate your Premium when all requirements have been met. An example of an outstanding requirement is an amendment to your application that requires your signature. We commence coverage of the Insured under the Policy, on the later of: (i) the Issue Date, (ii) the date that we receive your first Premium, or (iii) the date that all underwriting requirements have been met.
If you pay a Premium with your application and your requested Face Amount is less than $1,000,000, we provide you with temporary conditional insurance only if you meet all of the terms of a conditional receipt. The temporary conditional insurance provides coverage during the underwriting of your application but only if you are ultimately approved for coverage on the same basis as the risk classification and Face Amount of coverage for which you applied. This temporary conditional coverage starts when you complete your application and pay the first Premium, unless a medical exam or lab test results are required. In that event, temporary conditional coverage starts when all medical exams and lab tests have been completed. The Issue Date determines Monthly Activity Days, Policy Months, and Policy Years.
Premium Payments. During the first Policy Year, you must pay an amount at least equal to the required Premium shown in your Policy. We send you a reminder notice if you pay annually, semi-annually or quarterly. You may also make a Monthly Automatic Payment.
After the first Policy Year, you may pay additional Premium at any time, and in any amount, as long as your Premium would not cause your Policy to lose its status as a life insurance contract under the Tax Code, as explained in “Federal Taxes” beginning on page 35. Premiums must be sent to us at our address on the first page. Unless you request otherwise in writing, we treat all payments received while a Policy loan exists as new Premium.
Your Policy also shows a planned periodic Premium amount; however, you are not required to pay the planned periodic Premiums. You set the planned periodic Premium when you purchase your Policy. Your Policy will not lapse because you did not pay a planned periodic Premium.
Even if you pay all of the planned periodic Premiums, however, your Policy nevertheless may enter the Grace Period and thereafter lapse if you have not paid the required Safety Net Premium amount or the Coverage Guarantee Rider amount and the Net Surrender Value is no longer enough to pay the Monthly Deductions. Please see the “Safety Net Premium” and “Coverage Guarantee Rider” discussions just below. Yet, paying planned periodic Premiums will generally provide greater benefits than if a lower amount of Premium is paid.
Premium Limits. Before we accept any Premium that would require an increase in the net amount at risk under the Policy, you first must provide us with evidence of insurability. The Tax Code imposes limits on the amount of Premium that can be contributed under a life insurance contract. If you exceed this limit, your Policy would lose its favorable federal income tax treatment under the Tax Code. Accordingly, we will not accept any Premium that would cause your Policy to exceed this limit, unless you increase the Face Amount of your Policy appropriately. To obtain this increase, you must submit a written request to us and provide evidence

12 PROSPECTUS


of insurability meeting our then current underwriting standards. Otherwise, we will only accept the portion of your Premium that would cause your total Premiums to equal the maximum permitted amount and we will return the excess to you. In addition, we will not accept any additional Premium from you until we can do so without exceeding the limit set by the Tax Code.
Paying too much Premium also could cause your Policy to be treated as a “modified endowment contract” for federal income tax purposes. See “Modified Endowment Contracts” at page 36 below for more information.
Safety Net Premium. The Safety Net Premium feature can enable you to keep your Policy (including any riders) in force during a specified period regardless of changes in the Policy Value. If the Insured is age 70 or less at the Issue Date, the specified period is the first ten Policy Years. If the Insured is age 71 to 75 at the Issue Date, it runs from the Issue Date until the next Policy Anniversary after the Insured’s 80th birthday. If the Insured is over age 75 at the Issue Date, it runs from the Issue Date until five years after the Issue Date.
Ordinarily, your Policy enters the Grace Period and may lapse if the Net Surrender Value is not sufficient to pay a Monthly Deduction when it is due. For additional discussion of lapse, please see “Lapse and Reinstatement” on page 30. Under the Safety Net Premium feature, however, we guarantee that, regardless of declines in your Policy Value, your Policy will not enter the Grace Period if your total Premiums paid since the Issue Date, less any partial withdrawals and outstanding Policy Loans, are greater than the monthly Safety Net Premium amount times the number of months since the Issue Date.
During the first Policy Year, the Safety Net Premium amount is the minimum Premium required in order to issue the Policy. In subsequent years, the Safety Net Premium is the same as that of the first year provided there are no changes made to your Policy. As a result, if you pay your required Premium on a timely basis, the Safety Net Premium feature remains in effect. Because the Safety Net Premium feature covers optional Riders, adding optional Riders to your Policy increases your Safety Net Premium amount. Face amount increases or decreases, partial withdrawals, and death benefit option changes may also affect the monthly Safety Net Premiums.
If at any time your total Premiums, less partial withdrawals and Policy Debt, are less than the product of the monthly Safety Net Premium times the number of Policy Months since the Issue Date, the Safety Net Premium guarantee ends. We will notify you and you will be given 61 days to satisfy any shortfall. If such payments are not made during this period, the Safety Net Premium provision will terminate. The Safety Net Premium feature can be reinstated at any time before the Safety Net expiry date if total premium payments received, less partial withdrawals and policy debt are greater than the sum of the required monthly safety net premiums. For more detail about the circumstances in which the Policy will lapse, see “Lapse and Reinstatement” on page 30.
The following are examples of how the Safety Net Premium may change as a result of changes in your Policy:
Base Policy
Monthly Safety Net Premium
Face Amount $250,000, 45 Male Non-Smoker, Death Benefit Option 1, no riders
$176.88
Changes to Base Policy
Increase Face Amount to $300,000 in year 5
$220.96
Decrease Face Amount to $200,000 in year 5
$141.50
Partial Withdrawal of $3,000 in year 5
$174.75
Change to Death Benefit Option 2 in year 5
$173.23
Add Rider in year 5: Additional Insured Rider of $100,000 on 35 Female Non-Smoker
$194.54

Modified Endowment Contracts. Under certain circumstances, a Policy could be classified as a “modified endowment contract,” which is a category of life insurance contract defined in the Tax Code. If your Policy were to become a modified endowment contract, distributions and loans from the Policy could result in current taxable income for you, as well as other adverse tax consequences. These tax consequences are described in more detail in “Federal Taxes - Modified Endowment Contracts.”
Your Policy could be a Modified Endowment Contract if, among other things, you pay too much Premium or if the Death Benefit is reduced. We monitor the status of your Policy and advise you if you need to take action to prevent the Policy from becoming a modified endowment contract. If you pay a Premium that would result in this classification, we notify you and allow you to request a refund of the excess Premium, or other action, to avoid having your Policy become a modified endowment contract. If, however, you choose to have your Policy become a modified endowment contract, we do not refund the Premium.
Your Policy will be a modified endowment contract if it is issued to replace a modified endowment contract issued by another insurer. Payment of additional Premium in connection with a replacement also could cause your Policy to become a modified endowment contract. For more information, please consult your tax advisor, and see “Replacement of Modified Endowment Contracts” in the SAI.

13 PROSPECTUS


Allocation of Premiums. Your Net Premiums are allocated to the Sub-Account(s) and the Fixed Account in the proportions that you have selected. You must specify your allocation percentages in your Policy application. Percentages must be in whole numbers and the total allocation must equal 100%. We allocate your subsequent Net Premiums in those percentages until you give us new allocation instructions.
Initially, you may allocate your Policy Value among twenty-one (21) options, counting each Sub-Account and the Fixed Account as one option. You may allocate Policy Value among these options from time to time so long as your Policy Value is spread among no more than the 21 options. In the future, we may change or waive this limit.
We allocate your initial Net Premium to the Sub-Accounts and the Fixed Account, as you have instructed us, on the Issue Date. If you do not pay the first Premium until after the Issue Date, we allocate your initial Net Premium to the Sub-Accounts and the Fixed Account on the date we receive it at the Home Office. If there are outstanding requirements when we issue the Policy, your Premiums are not allocated until all requirements are satisfied. In these cases, the premium is held in an account without interest until the outstanding requirements are satisfied. We do not credit earnings or interest before the Issue Date.
We are required to return your Premium if you cancel your Policy during the “free-look” period. We will delay allocating your Premiums to the Sub-Accounts or to the Fixed Account until after the “free-look” period. In the interim, we allocate all of your Premiums to the Fixed Account only. For more information, please see “Cancellation Rights” on page 30.
Policy Value
General. Your Policy Value is the sum of the values of your interests in the Sub-Accounts of the Separate Account plus the value of the Fixed Account and the Loan Account. Your Policy Value changes daily to reflect the performance of the Sub-Accounts you have chosen, the addition of interest credited to the Fixed Account, the addition of Net Premiums, and the subtraction of partial withdrawals and charges assessed. There is no minimum guaranteed Policy Value.
On the Issue Date or, if later, the date your first Premium is received, we deduct the Monthly Deduction for the first Policy Month. We have described the formula to compute your portion of Policy Value in a particular Sub-Account in the SAI.
We make all calculations in connection with the Policy (other than the initial Premiums) on the date we receive your Premium or your request for other action, if that date is a Valuation Date. Otherwise, we make that determination on the next succeeding day that is a Valuation Date. Calculations for initial Premiums and Premiums requiring underwriting are made on the date your Net Premium is allocated to the Sub-Accounts and the Fixed Account, as described in “Allocation of Premiums” above.
Accumulation Units. We determine the number of Accumulation Units in each Sub-Account to allocate to your Policy by dividing that portion of your Net Premium or other transaction allocated to a Sub-Account by that Sub-Account’s Accumulation Unit Value on the Valuation Date when the allocation occurs.
Accumulation Unit Value. The Accumulation Unit Value for each Sub-Account varies to reflect the investment experience of the applicable Portfolio. We determine the Accumulation Unit Value for each Sub-Account on each Valuation Date by multiplying the Accumulation Unit Value on the preceding Valuation Date by the Net Investment Factor for that Sub-Account for the Valuation Period then ended.
The Net Investment Factor for each Sub-Account is (1) divided by (2), where:
1)
equals (a) the net asset value per share of the Portfolio held in the Sub-Account at the end of the current Valuation Period, plus (b) the per share amount of any dividend or capital gains distribution made by the Portfolio during the current Valuation Period, plus or minus (c) a per share credit or charge with respect to any taxes which we paid or for which we reserved during the Valuation Period which are determined by us to be attributable to the operation of the Sub-Account (no federal income taxes currently are applicable); and
2)
is the net asset value per share of the Portfolio held in the Sub-Account at the end of the previous Valuation Period.
Please refer to the Prospectuses for the Portfolios for a description of how the assets of each Portfolio are valued, since that determination has a direct bearing on the Net Investment Factor of the corresponding Sub-Account and, therefore, your Policy Value.
Written Requests and Forms in Good Order. Written requests must include sufficient information and/or documentation, and be sufficiently clear, to enable us to complete your request without the need to exercise discretion on our part to carry it out. You may contact our Customer Service Center to learn what information we require for your particular request to be in “good order.” Additionally, we may require that you submit your request on our form. We reserve the right to determine whether any particular request is in good order, and to change or waive any good order requirements at any time.
Postponement of Payments. We may defer for up to fifteen days the payment of any amount attributable to a Premium paid by check to allow the check a reasonable time to clear. We may postpone paying any amount for a total surrender or a partial withdrawal, the disbursement of a Policy Loan, or the payment of the Death Benefit Proceeds, in the following circumstances:

14 PROSPECTUS


(i) whenever the New York Stock Exchange (“NYSE”) is closed (other than customary weekend and holiday closings); (ii) when trading on the NYSE is restricted or an emergency exists, as determined by the Securities and Exchange Commission ("SEC"), so that disposal of the Separate Account’s investments or determination of the value of its net assets is not reasonably practicable; or (iii) at any other time permitted by the SEC for your protection.
In addition, we may delay payment of the Surrender Value in the Fixed Account for up to six months or a shorter period if required by law. If we defer payment for more than 30 days, we add interest at our current rate from the time you asked for the Surrender Value in accordance with applicable NY law.
We may postpone paying any amount for a total surrender, a partial withdrawal, or the disbursement of a Policy Loan to authenticate the signature on a request. In the event that we postpone payment, the request will not be effective until we have validated the signature on the request to our satisfaction. Once accepted, the request for a total surrender, a partial withdrawal, or a Policy Loan will be paid within seven days.
Transfers
General. While the Policy is in force, you may transfer Policy Value among the Fixed Account and Sub-Accounts in writing or by telephone. Currently, there is no minimum transfer amount. We may set a minimum transfer amount in the future. In the future, we may charge you the transfer fee described on page 34, although currently we are waiving it.
You currently may not have Policy Value in more than twenty-one (21) options, counting each Sub-Account and the Fixed Account as one option. Accordingly, we will not perform a transfer that would cause your Policy to exceed that limit. We may waive this limit in the future.
Generally, we only make transfers on days when the NYSE is open for business. See “Policy Value” on page 14. If we receive your request on a day when the NYSE is not open for business, or if we receive your request after the close of business on the NYSE, we make the transfer on the first subsequent day on which the NYSE is open.
Special requirements apply to transfers from the Fixed Account. You may transfer one sum from the Fixed Account to the Sub-Accounts only during the 60-day period beginning on the Issue Date or each Policy Anniversary. We do not process transfer requests involving the Fixed Account at any other time, except transfers pursuant to a Dollar Cost Averaging or Portfolio Rebalancing program.
You may not transfer Policy Value or allocate new Premiums into the Fixed Account if transfers are being made out under the Dollar Cost Averaging program. However, we may waive or modify these restrictions on transfers from the Fixed Account.
This limit also applies to transfers under a Dollar Cost Averaging program, unless you choose to transfer your entire Fixed Account balance to Sub-Accounts. In that case, your maximum monthly transfer amount may not be more than 1/36th of your Fixed Account balance on the day of the first transfer.
The Policy permits us to defer transfers from the Fixed Account for up to six months from the date you request a transfer.
Transfers Authorized by Telephone. You may make transfers by telephone. Telephone transfers may not be available if all lines are busy. In that case, you will need to submit a written request or try to call later. Please see the SAI for a description of our procedures for telephone transfers.
We use procedures that we believe provide reasonable assurance that telephone authorized transfers are genuine. For example, we request identifying information from persons purporting to authorize transfers. Accordingly, we disclaim any liability for losses resulting from allegedly unauthorized telephone transfers. However, if we do not take reasonable steps to help ensure that a telephone authorization is valid, we may be liable for such losses.
At any time, we may suspend, modify or terminate your privilege to make transfers via the telephone, or via other electronic or automated means specifically approved by the Company, including, but not limited to, automated telephone services, facsimile machine, e-mail and electronic services via online access. Among other things, we reserve the right to limit the number of such transfers among the Sub-Accounts in any Policy Year, or to refuse any telephone transfer request. We also reserve the right to restrict such transfers in any manner reasonably designed to prevent transfers that we consider disadvantageous to other Policy Owners.
Dollar Cost Averaging. Under our automatic Dollar Cost Averaging program, while the Policy is in force you may authorize us to transfer a fixed dollar amount at fixed intervals from the Fixed Account or a Sub-Account of your choosing so long as your Policy Value is spread among no more than twenty-one options, including other Sub-Accounts or the Fixed Account. The interval between transfers may be monthly, quarterly, semi-annually or annually, at your option. There are no fees associated with the Dollar Cost Averaging program. Transfers made under a Dollar Cost Averaging program will not be assessed a transfer fee and do not count towards the number of transfers you can make before a transfer fee applies. The transfers are made at the Accumulation Unit Value on the date of the transfer. The transfers continue until you instruct us otherwise, or until your chosen source of transfer

15 PROSPECTUS


payments is exhausted. Currently, the minimum transfer amount is $100 per transfer. We may change this minimum or grant exceptions. If you elect this program, the first transfer occurs one interval after you elect the Dollar Cost Averaging program. Your request to participate in this program is effective when we receive your completed application at the P.O. Box given on the first page of this Prospectus. Please call or write us for a copy of the application. You may elect to increase, decrease or change the frequency or amount of transfer payments under a Dollar Cost Averaging program. Special restrictions apply to transfers from the Fixed Account. Please see “Transfers - General” on page 15 for a discussion of these restrictions.
The theory of Dollar Cost Averaging is that by spreading your investment over time, you may be able to reduce the effect of transitory market conditions on your investment. In addition, because a given dollar amount purchases more units when the unit prices are relatively low rather than when the prices are higher, in a fluctuating market, the average cost per unit may be less than the average of the unit prices on the purchase dates. However, participation in this program does not assure you of a greater profit from your purchases under the program, nor does it prevent or necessarily reduce losses in a declining market. Moreover, while we refer to this program of periodic transfers generally as Dollar Cost Averaging, periodic transfers from a Sub-Account with more volatile performance experience is unlikely to produce the desired effects of Dollar Cost Averaging as would transfers from a less volatile Sub-Account. You may not use Dollar Cost Averaging and Portfolio Rebalancing at the same time.
Portfolio Rebalancing. Portfolio Rebalancing allows you to maintain the percentage of your Policy Value allocated to each Sub-Account or the Fixed Account or both at a preset level. Over time, the variations in each Sub-Account’s investment results shift the balance of your Policy Value allocations. Under the Portfolio Rebalancing feature, we automatically transfer your Policy Value, including new Premiums, back to the percentages you specify. Portfolio Rebalancing is consistent with maintaining your desired allocation among the investment options.
You may choose to have rebalances made monthly, quarterly, semi-annually or annually. There are no fees associated with Portfolio Rebalancing. Transfers made under a Portfolio Rebalancing program will not be assessed a transfer fee and do not count towards the number of transfers you can make before a transfer fee applies. No more than twenty-one (21) Sub-Accounts, or twenty (20) Sub-Accounts and the Fixed Account, can be included in a Portfolio Rebalancing program at one time. Transfers from the Fixed Account under a Portfolio Rebalancing program are subject to the overall limit on transfers from the Fixed Account. Accordingly, if the total amount transferred from the Fixed Account in any Policy Year reaches that limit before the end of the year, we do not transfer additional amounts from the Fixed Account for Portfolio Rebalancing purposes until the next Policy Year. We automatically terminate this option if you request any transfers outside the Portfolio Rebalancing program. If you wish to resume the Portfolio Rebalancing after it has been canceled, then you must complete a new Portfolio Rebalancing form and send it to our home office.
You may request Portfolio Rebalancing at any time by submitting a completed written request to us at the address given on the first page of this Prospectus. Please call or write us for a copy of the request form. If you stop Portfolio Rebalancing, you must wait 30 days to begin again. The date of your rebalancing must coincide with the same day of the month as your Issue Date. If you request rebalancing on your Policy application and specify the frequency, but not the date, for your first rebalancing, it occurs one interval after the Issue Date. Otherwise, your first rebalancing occurs one interval after we receive your completed request form. All subsequent rebalancings occur at the intervals you have specified on the day of the month that coincides with the same day of the month as your Issue Date. Generally, you may change the allocation percentages, frequency or choice of Sub-Accounts at any time. If you include the Fixed Account in a Portfolio Rebalancing program, however, in any consecutive twelve months you may not change the allocation percentages more than twice and the total change to the Fixed Amount allocation may not exceed 20%. We may waive this restriction.
If your total Policy Value subject to rebalancing falls below any minimum value that we may establish, we may prohibit or limit your use of Portfolio Rebalancing. You may not use Dollar Cost Averaging and Portfolio Rebalancing at the same time. We may change, terminate, limit or suspend Portfolio Rebalancing at any time.
Market Timing & Excessive Trading The Policies are intended for long-term investment. Market timing and excessive trading can potentially dilute the value of Sub-Accounts and can disrupt management of a Portfolio and raise its expenses, which can impair Portfolio performance and adversely affect your Policy Value. Our policy is not to accept knowingly any premium intended for the purpose of market timing or excessive trading. Accordingly, you should not invest in the Policy if your purpose is to engage in market timing or excessive trading, and you should refrain from such practices if you currently own a Policy.
We seek to detect market timing or excessive trading activity by reviewing trading activities. Portfolios also may report suspected market-timing or excessive trading activity to us. If, in our judgment, we determine that the transfers are part of a market timing strategy or are otherwise harmful to the underlying Portfolio, we will impose the trading limitations as described below under “Trading Limitations.” Because there is no universally accepted definition of what constitutes market timing or excessive trading, we will use our reasonable judgment based on all of the circumstances.
While we seek to deter market timing and excessive trading in Sub-Accounts, because our procedures involve the exercise of reasonable judgment, we may not identify or prevent some market timing or excessive trading. Moreover, imposition of trading limitations is triggered by the detection of market timing or excessive trading activity, and the trading limitations are not applied prior to detection of such trading activity. Therefore, our policies and procedures do not prevent such trading activity before it is

16 PROSPECTUS


detected. As a result, some investors may be able to engage in market timing and excessive trading, while others are prohibited, and the Sub-Account may experience the adverse effects of market timing and excessive trading described above.
Trading Limitations. We reserve the right to limit transfers among the investment alternatives in any Policy Year, require that all future transfer requests be submitted through U.S. Postal Service First Class Mail thereby refusing to accept transfer requests via telephone, facsimile, Internet, or overnight delivery, or to refuse any transfer request, if:
•
we believe, in our sole discretion, that certain trading practices, such as excessive trading, by, or on behalf of, one or more Policy Owners, or a specific transfer request or group of transfer requests, may have a detrimental effect on the Accumulation Unit Values of any Sub-Account or on the share prices of the corresponding Portfolio or otherwise would be to the disadvantage of other Policy Owners; or
•
we are informed by one or more of the Portfolios that they intend to restrict the purchase, exchange, or redemption of Portfolio shares because of excessive trading or because they believe that a specific transfer or group of transfers would have a detrimental effect on the prices of Portfolio shares.
In making the determination that trading activity constitutes market timing or excessive trading, we will consider, among other things:
•
the total dollar amount being transferred, both in the aggregate and in the transfer request;
•
the number of transfers you make over a period of time and/or the period of time between transfers (note: one set of transfers to and from a Sub-Account in a short period of time can constitute market timing);
•
whether your transfers follow a pattern that appears designed to take advantage of short term market fluctuations, particularly within certain Sub-Account underlying Portfolios that we have identified as being susceptible to market timing activities (e.g., International, High Yield, and Small Cap Sub-Accounts);
•
whether the manager of the underlying Portfolio has indicated that the transfers interfere with Portfolio management or otherwise adversely impact the Portfolio; and
•
the investment objectives and/or size of the Sub-Account’s underlying Portfolio.
We seek to uniformly apply these trading limitations to all trades, including those that occur through omnibus accounts at intermediaries. However, because these determinations involve the exercise of discretion, it is possible that we may not detect some market timing or excessive trading activity. As a result, it is possible that some investors may be able to engage in market timing or excessive trading activity, while others are prohibited, and the Portfolio may experience the adverse effects of market timing and excessive trading described above.
If we determine that a Policy Owner has engaged in market timing or excessive trading activity, we will require that all future transfer requests be submitted through U.S. Postal Service First Class Mail thereby refusing to accept transfer requests via telephone, facsimile, Internet, or overnight delivery. If we determine that a Policy Owner continues to engage in a pattern of market timing or excessive trading activity we will restrict that Policy Owner from making future additions or transfers into the impacted Sub-Account(s) or will restrict that Policy Owner from making future additions or transfers into the class of Sub-Account(s) if the Sub-Accounts(s) involved are vulnerable to arbitrage market timing trading activity (e.g., International, High Yield, and Small Cap Sub-Accounts).
In our sole discretion, we may revise our Trading Limitations at any time as necessary to better deter or minimize market timing and excessive trading or to comply with regulatory requirements.
Agreements to Share Information with Funds. Under the Investment Company Act of 1940, Allstate Life Insurance Company of New York (“Allstate New York”) has entered into information sharing agreements with each of the fund companies whose funds are offered under the Policy. Policy Owner trading information is shared under these agreements as necessary for the fund companies to monitor fund trading and Allstate New York’s trading policy. Under these agreements, Allstate New York is required to share information regarding Policy Owner transactions, including but not limited to information regarding fund transfers initiated by you. In addition to information about Policy Owner transactions, this information may include personal Policy Owner information, including names and social security numbers or other tax identification numbers. As a result of this information sharing, a fund company may direct us to restrict a Policy Owner’s transactions if the fund determines that the Policy Owner has violated the fund's frequent trading policies. This could include the fund directing us to reject any allocations of premium or Policy value to the fund.
Short Term Trading Fees. The underlying Portfolios are authorized by SEC regulation to adopt and impose redemption fees if a Portfolio’s Board of Directors determines that such fees are necessary to minimize or eliminate short-term transfer activity and/or holding periods that can reduce or dilute the value of outstanding shares issued by the Portfolio. The Portfolio will set the parameters relating to the redemption fee and such parameters may vary by Portfolio. If a Portfolio elects to adopt and charge redemption fees, these fees will be passed on to the Policy Owner(s) responsible for the short-term transfer activity generating the fee.

17 PROSPECTUS


We will administer and collect redemption fees and forward these fees to the Portfolio. Please consult the Portfolio’s prospectus for more complete information regarding the fees and charges associated with each Portfolio.
Investment and Fixed Account Options
The Sub-Accounts and the Portfolios. Each of the Sub-Accounts of the Separate Account invests in the shares of one of the Portfolios. The income and realized and unrealized gains or losses on the assets of each Sub-Account are separate and are credited to or charged against the particular Sub-Account without regard to income, gains or losses from any other Sub-Account or from any other part of our business. We use the Net Premiums you allocate to a Sub-Account to purchase shares in the corresponding Portfolio and redeem shares in the Portfolios to meet Policy obligations or make adjustments in reserves. The Portfolios are required to redeem their shares at net asset value and to make payment within seven days.
Each Portfolio is either an open-end management investment company registered under the 1940 Act or a separate investment series of an open-end management investment company.
Each Portfolio holds its assets separate from the assets of the other Portfolios, and each Portfolio has its own distinct investment objective and policies. Each Portfolio is subject to certain investment restrictions and policies, which may not be changed without the approval of a majority of the shareholders of the Portfolio. Each Portfolio operates as a separate investment fund, and the income, gains and losses of one Portfolio generally have no effect on the investment performance of any other Portfolio.
We do not promise that the Portfolios will meet their investment objectives. Amounts you have allocated to Sub-Accounts may grow in value, decline in value or grow less than you expect, depending on the investment performance of the Portfolios in which those Sub-Accounts invest. You bear the investment risk that those Portfolios possibly will not meet their investment objectives.
We have briefly described the Portfolios below. You should read the current Prospectuses for the Portfolios for more detailed and complete information concerning the Portfolios, their investment objectives and strategies, and the investment risks associated with the Portfolios. If you do not have a Prospectus for a Portfolio, contact us and we will send you a copy.
Variable insurance Portfolios might not be managed by the same portfolio managers who manage retail mutual funds with similar names. These Portfolios are likely to differ from similarly named retail mutual funds in assets, cash flow, and tax matters. Accordingly, the holdings and investment results of a variable insurance
Portfolio can be expected to be higher or lower than the investment results of a similarly named retail mutual fund.
Sub-Accounts
Investment Objective
Investment Advisor
AIM VARIABLE INSURANCE FUNDS (INVESCO VARIABLE INSURANCE FUNDS)
Invesco V.I. Government Securities Fund - Series I
Total return comprised of current income and capital appreciation.
Invesco Advisers, Inc.
Invesco V.I. Growth and Income Fund - Series I
Seeks long-term growth of capital and income.
Invesco V.I. American Value Fund - Series I
To provide above-average total return over a market cycle of three to five years by investing in common stocks and other equity securities.
THE ALGER PORTFOLIOS
 
 
Alger Balanced Portfolio - Class I-2
Current income and long-term capital appreciation.
Fred Alger Management, Inc.
Alger Capital Appreciation Portfolio - Class I-2
Long-term capital appreciation.
Alger Large Cap Growth Portfolio - Class I-2
Long-term capital appreciation.
Alger Mid Cap Growth Portfolio - Class I-2
Long-term capital appreciation.
AB VARIABLE PRODUCTS SERIES FUND, INC.
AB VPS Growth and Income Portfolio - Class A
Long-term growth of capital.
AllianceBernstein L.P.
AB VPS International Growth Portfolio - Class A
Long-term growth of capital.
AB VPS International Value Portfolio - Class A
Long-term growth of capital.
AB VPS Small Cap Growth Portfolio - Class A
Long-term growth of capital.
AB VPS Small/Mid Cap Value Portfolio - Class A
Long-term growth of capital.

18 PROSPECTUS


Sub-Accounts
Investment Objective
Investment Advisor
FIDELITY® VARIABLE INSURANCE PRODUCTS
Fidelity® VIP Contrafund® Portfolio - Initial Class
Long-term capital appreciation.
Fidelity Management & Research Company (FMR)
Fidelity® VIP Emerging Markets Portfolio - Initial Class
Capital appreciation.
Fidelity® VIP Equity-Income Portfolio - Initial Class
Reasonable Income. The fund will also consider the potential for capital appreciation. The fund's goal is to achieve a yield which exceeds the composite yield on the securities comprising the S&P 500® Index.
Fidelity® VIP Government Money Market Portfolio - Initial Class
As high a level of current income as is consistent with preservation of capital and liquidity.
Fidelity® VIP Growth & Income Portfolio - Initial Class
High total return through a combination of current income and capital appreciation.
Fidelity® VIP Growth Portfolio - Initial Class
To achieve capital appreciation.
Fidelity® VIP High Income Portfolio - Initial Class
A high level of current income, while also considering growth of capital.
Fidelity® VIP Index 500 Portfolio - Service Class
Investment results that correspond to the total return of common stocks publicly traded in the United States, as represented by the S&P 500® Index.
Fidelity® VIP Investment Grade Bond Portfolio - Initial Class
As high a level of current income as is consistent with the preservation of capital.
Fidelity® VIP Mid Cap Portfolio - Initial Class
Long-term growth of capital.
Fidelity® VIP Real Estate Portfolio - Initial Class
Above-average income and long-term capital growth, consistent with reasonable investment risk. Fund seeks to provide a yield that exceeds the composite yield of the S&P 500® Index.
Fidelity SelectCo, LLC (SelectCo)
Fidelity® VIP Value Strategies Portfolio - Initial Class
Capital appreciation.
Fidelity Management & Research Company (FMR)
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
Franklin Income VIP Fund - Class 1
To maximize income while maintaining prospects for capital appreciation.
Franklin Advisers, Inc.
Franklin Small Cap Value VIP Fund - Class 1
Long-term total return.
Franklin Advisory Services, LLC
Franklin Small-Mid Cap Growth VIP Fund - Class 1
Long-term capital growth.
Franklin Advisers, Inc.
Franklin Strategic Income VIP Fund - Class 1
A high level of current income with capital appreciation over the long term as a secondary goal.
Franklin U.S. Government Securities VIP Fund - Class 1
Seeks income.
Franklin Mutual Global Discovery VIP Fund - Class 1
Capital appreciation.
Franklin Mutual Advisers, LLC
Franklin Mutual Shares VIP Fund - Class 1
Capital appreciation with income as a secondary goal.
Templeton Global Bond VIP Fund - Class 1
High current income, consistent with preservation of capital, with capital appreciation as a secondary consideration.
Franklin Advisers, Inc.
ALPS VARIABLE INVESTMENT TRUST (1)
Morningstar Aggressive Growth ETF Asset Allocation Portfolio Class I
Capital appreciation.
ALPS Advisors, Inc.
Morningstar Balanced ETF Asset Allocation Portfolio Class I
Capital appreciation and some current income.
Morningstar Conservative ETF Asset Allocation Portfolio Class I
Current income and preservation of capital.
Morningstar Growth ETF Asset Allocation Portfolio Class I
Capital appreciation.
Morningstar Income and Growth ETF Asset Allocation Portfolio Class I
Current income and capital appreciation.
JANUS ASPEN SERIES
Janus Henderson Mid Cap Value Portfolio - Institutional Shares
Capital appreciation.
Janus Capital Management LLC
Janus Henderson Balanced Portfolio - Institutional Shares
Long-term capital growth, consistent with preservation of capital and balanced by current income.
Janus Henderson Enterprise Portfolio - Institutional Shares
Long-term growth of capital.
Janus Henderson Flexible Bond Portfolio - Institutional Shares
Maximum total return, consistent with preservation of capital.
Janus Henderson Forty Portfolio - Institutional Shares
Long-term growth of capital.
Janus Henderson Global Technology Portfolio - Institutional Shares
Long-term growth of capital.
Janus Henderson Overseas Portfolio - Institutional Shares
Long-term growth of capital.

19 PROSPECTUS


Sub-Accounts
Investment Objective
Investment Advisor
OPPENHEIMER VARIABLE ACCOUNT FUNDS
Oppenheimer Conservative Balanced Fund/VA
The fund seeks total return.
OppenheimerFunds, Inc.
Oppenheimer Total Return Bond Fund/VA
The fund seeks total return.
Oppenheimer Global Fund/VA
The fund seeks capital appreciation.
Oppenheimer International Growth Fund/VA
The fund seeks capital appreciation.
Oppenheimer Main Street Fund®/VA
The fund seeks capital appreciation.
Oppenheimer Main Street Small Cap Fund®/VA (2)
Capital appreciation.
Oppenheimer Global Strategic Income Fund/VA
The fund seeks total return.
MORGAN STANLEY VARIABLE INSURANCE FUND, INC.
Morgan Stanley VIF Emerging Markets Equity Portfolio - Class I
Long-term capital appreciation by investing primarily in growth-oriented equity securities of issuers in emerging market countries.
Morgan Stanley Investment Management Inc.
Morgan Stanley VIF Growth Portfolio - Class I
Long-term capital appreciation by investing primarily in growth-oriented equity securities of large capitalization companies.
(1)
The Morningstar ETF Allocation Series Portfolios invest in underlying ETFs and will indirectly bear their proportionate share of any fees and expenses payable directly by the underlying ETFs. As a result, the Portfolios may incur higher expenses, many of which may be duplicative.
(2)
Effective April 28, 2017, the Oppenheimer Equity Income Fund/VA merged into the Oppenheimer Main Street Small Cap Fund®/VA
Each Portfolio is subject to certain investment restrictions and policies, which may not be changed without the approval of a majority of shareholders of the Portfolio. Please see the accompanying Prospectuses of the Portfolios for additional information.
We automatically reinvest all dividends and capital gains distributions from the Portfolios in shares of the distributing Portfolio at their net asset value.
Some of the Portfolios have been established by investment advisors, which manage retail mutual funds having similar names and investment objectives. While some of the Portfolios may be similar to, and may in fact be modeled after retail mutual funds, you should understand that the Portfolios are not otherwise directly related to any retail mutual fund. Consequently, the investment performance of retail mutual funds and any similarly named Portfolio may differ substantially.
Certain Portfolios sell their shares to separate accounts underlying both variable life insurance and variable annuity contracts. It is conceivable that in the future it may be unfavorable for variable life insurance separate accounts and variable annuity separate accounts to invest in the same Portfolio. Although neither we nor any of the Portfolios currently foresees any such disadvantages either to variable life insurance or variable annuity contract owners, each Portfolio’s Board of Directors intends to monitor events in order to identify any material conflicts between variable life and variable annuity contract owners and to determine what action, if any, should be taken in response thereto. If a Board of Directors were to conclude that separate investment funds should be established for variable life and variable annuity separate accounts, Policy Owners will not bear the attendant expenses.
Voting Rights. As a general matter, you do not have a direct right to vote the shares of the Portfolios held by the Sub-Accounts to which you have allocated your Policy Value. Under current law, however, you are entitled to give us instructions on how to vote those shares on certain matters. We notify you when your instructions are needed and provide proxy materials or other information to assist you in understanding the matter at issue. We determine the number of votes for which you may give voting instructions as of the record date set by the relevant Portfolio for the shareholder meeting at which the vote will occur.
In most cases, you are the person entitled to give voting instructions. However, if you assign your Policy, the assignee may be entitled to give voting instructions.
Retirement plans may have different rules for voting by plan participants.
If you send written voting instructions to us, we follow your instructions in voting the Portfolio shares attributable to your Policy. If you do not send written instructions, we vote the shares attributable to your Policy in the same proportions as the shares for which we have received instructions from other Policy Owners. While proportional voting guarantees all outstanding shares of a Portfolio are voted, it can lead to a small number of shareholders determining the outcome of a proxy.
We may, when required by state insurance regulatory authorities, disregard Policy Owner voting instructions if the instructions would cause a change in the sub-classification or investment objective of one or more of the Portfolios or to approve or disapprove an investment advisory contract for one or more of the Portfolios.
In addition, we may disregard voting instructions in favor of changes initiated by Policy Owners in the investment objectives or the investment advisor of the Portfolios if we reasonably disapprove of the proposed change. We would disapprove a proposed

20 PROSPECTUS


change only if the proposed change is contrary to NY law or prohibited by state regulatory authorities or we reasonably conclude that the proposed change would not be consistent with the investment objectives of the Portfolio or would result in the purchase of securities for the Portfolio which vary from the general quality and nature of investments and investment techniques utilized by the Portfolio. If we disregard voting instructions, we include a summary of that action and our reasons for that action in the next semi-annual financial report to you.
This description reflects our view of currently applicable law. If the law changes or our interpretation of the law changes, we may decide that we are permitted to vote the Portfolio shares without obtaining instructions from our Policy Owners, and we may choose to do so.
Additions, Deletions and Substitutions of Securities.
If the shares of any of the Portfolios are no longer available for investment by the Separate Account or if, in the judgment of our management, further investment in the shares of a Portfolio is no longer appropriate in view of the purposes of the Policy, we may add or substitute shares of another Portfolio or underlying fund for Portfolio shares already purchased or to be purchased in the future by Premiums under the Policy. Any substitution of securities will comply with the requirements of the 1940 Act.
We also reserve the right to make the following changes in the operation of the Separate Account and the Sub-Accounts:
•
to operate the Separate Account in any form permitted by law;
•
to take any action necessary to comply with, or obtain and continue any exemption from, applicable laws;
•
to transfer assets from one Sub-Account to another, or to our general account;
•
to add, combine, or remove Sub-Accounts in the Separate Account;
•
to assess a charge for taxes attributable to the operations of the Separate Account or for other taxes, as described in “Charges and Deductions”; and
•
to change the way in which we assess other charges, as long as the total other charges do not exceed the amount currently charged the Separate Account and the Portfolios in connection with the Policies.
If we take any of these actions, we will comply with the then applicable legal requirements.
The Fixed Account. The portion of the Policy relating to the Fixed Account is not registered under the Securities Act of 1933 (“1933 Act”) and the Fixed Account is not registered as an investment company under the 1940 Act. Accordingly, neither the Fixed Account nor any interests in the Fixed Account are subject to the provisions or restrictions of the 1933 Act or the 1940 Act, and the disclosure regarding the Fixed Account has not been reviewed by the staff of the SEC. The statements about the Fixed Account in this Prospectus may be subject to generally applicable provisions of the federal securities laws regarding accuracy and completeness.
You may allocate part or all of your Premiums to the Fixed Account. Amounts allocated to the Fixed Account become part of the general assets of Allstate New York. Allstate New York invests the assets of the general account in accordance with applicable laws governing the investments of insurance company general accounts.
We credit interest to amounts allocated to the Fixed Account at an effective annual rate of at least 3%. We are not obligated to, but we may credit interest at a higher rate. You assume the risk that the interest rate credited to the Fixed Account may be no higher than 3%.
SelectBalanceSM Asset Allocation Program As a Policy Owner, you may elect to participate in the optional SelectBalance asset allocation program (“SelectBalance”) for no additional charge to you. SelectBalance can be elected at issue or any time your Policy is inforce. The Select Balance program provides Policy Owners with an assessment questionnaire to help them determine their investment time horizon and tolerance for risk. The questions on the questionnaire have been provided by ALPS, Inc. and Morningstar Associates and included in the SelectBalance program information developed and provided by us. Based on the answers to the questionnaire, one of five asset allocation Sub-Accounts, the Morningstar ETF Asset Allocation Series Portfolios, is recommended. These portfolios are managed such that the allocations between different asset classes remain consistent with the qualities identified during the initial assessment. The objective of each asset allocation Sub-Account is to provide disciplined, diversified access to a variety of asset classes that is consistent with an investor’s risk profile and investment time horizon.
Asset allocation is the process by which your Policy Value is invested in different asset classes in a way that matches your risk tolerance, time horizon, and investment goals. Theoretically, different asset classes tend to behave differently under various economic and market conditions. By spreading your Policy Value across a range of asset classes, you may, over time, be able to reduce the risk of investment volatility and potentially enhance returns. Asset allocation does not guarantee a profit or protect against loss in a declining market.
If you elect to participate in this program at issue, you may select one of the currently available Morningstar ETF Asset Allocation Series Portfolios. The Portfolios, advised by ALPS Advisers, Inc. and sub-advised Morningstar Associates, Inc., represent five

21 PROSPECTUS


different investment styles: Conservative, Income and Growth, Balanced, Growth, and Aggressive Growth. Each of the Morningstar ETF Asset Allocation Series Portfolios is designed to meet the investment goals of the applicable investment style. Once you select a Morningstar ETF Asset Allocation Series Portfolio, your Policy Value will be allocated to the corresponding Morningstar ETF Asset Allocation Series Sub-Account. Additional investment options available with the SelectBalance program at issue include the Fixed Account and the Fidelity VIP Government Money Market Sub-Account. We recommend that you consult with your sales representative and obtain and read the prospectus for the Morningstar ETF Asset Allocation Series carefully before participating in the SelectBalance program.
Once your policy is in force you may elect to participate in the SelectBalance program if it was not elected at time of issue. You may also allocate Policy Value among the Morningstar ETF Asset Allocation Series Portfolios and any other investment options offered on your Policy as desired once your policy is in force. You can discontinue participation in the SelectBalance program at any time by submitting a Fund Change form. Each transfer you make to modify your SelectBalance program will count towards the number of transfers you can make without paying a transfer fee. You may want to consult with your sales representative before making a change to the SelectBalance program to help you determine if the change is appropriate for your needs.
Although it is not advised, the Morningstar ETF Asset Allocation Series Portfolios Sub-Accounts could be invested in without completing the assessment questionnaire. This is not advised because the differing responses to the questionnaire are what have been used to develop the investment styles of the five Morningstar ETF Series Portfolios.
Allstate New York and ADLLC, the distributor of the Policy, do not intend to provide any personalized investment advice in connection with the SelectBalance program and you should not rely on this program as providing individualized investment recommendations to you. Policy Owners should ultimately rely on their own judgment and/or the judgment of a financial advisor in making their financial decisions.
The SelectBalance program can be used in conjunction with our Dollar Cost Averaging program or Portfolio Rebalancing program. We reserve the right to terminate the SelectBalance program at any time. If the program is terminated, but the Morningstar ETF Asset Allocation Series Portfolios are still available, the policyholder's allocation will remain in the Morningstar ETF Asset Allocation Series Portfolios Sub-Accounts previously elected.
Death Benefits and Optional Insurance Benefits
Death Benefits. While your Policy is in force, we pay the Death Benefit proceeds upon the death of the Insured. We will pay the Death Benefit proceeds to the named Beneficiary(ies) or contingent Beneficiary(ies). As described below in “Settlement Options,” we pay the Death Benefit proceeds in one sum or under an optional payment plan.
The Death Benefit proceeds payable to the Beneficiary equal the applicable Death Benefit, less any Policy Debt and less any due and unpaid charges. The proceeds may be increased, if you have added a rider that provides an additional benefit. Riders which may impact the death benefit include the Accidental Death Benefit Rider, the Additional Insured Term Rider, the Primary Insured Term Rider, the Overloan Protection Rider, and the Accelerated Death Benefit Riders. Please see “Optional Insurance Benefits” beginning on page 23. We determine the amount of the Death Benefit proceeds as of the end of the Valuation Period during which the Insured dies. We usually pay the Death Benefit proceeds within seven days after we have received due proof of death and all other requirements we deem necessary have been satisfied. The amount of the Death Benefit is based on the Death Benefit Option you have selected, any increases or decreases in the Face Amount, and in some instances your Policy Value.
Death Benefit Options. You may choose one of two Death Benefit Options:
Option 1: the Death Benefit is the greater of: (a) the Face Amount of the Policy on the date of death; or (b) the Policy Value multiplied by the applicable corridor percentage as described below, and as set forth in your Policy. Option 1 is designed to provide a specific amount of Death Benefit that generally does not vary with changes in the Policy Value. As your Policy Value increases, the Net Amount at Risk under your Policy generally decreases, unless your Policy Value is sufficiently large to require that the Death Benefit be determined using the applicable corridor percentage.
Option 2: the Death Benefit is the greater of: (a) the Face Amount plus the Policy Value on the date of death; or (b) the Policy Value multiplied by the applicable corridor percentage. Under Option 2, the amount of the Death Benefit generally increases to reflect increases in the Policy Value. Under this option your Policy generally involves a constant Net Amount at Risk.
Your Policy has a minimum Death Benefit. While your Policy remains in force, we guarantee that the Death Benefit will not be less than the greater of the current Face Amount of the Policy or the Policy Value multiplied by the applicable corridor percentage. We have set forth the applicable corridor percentages in the Policy. The corridor percentages are based upon the age of the Insured. The applicable corridor percentage decreases from 250% at age 40 or less to 100% at age 100 or above.
Since the cost of insurance charge is based upon the net amount at risk, it generally is less under a Policy with an Option 1 Death Benefit than one with an Option 2 Death Benefit. As a result, if the Sub-Accounts you select experience favorable investment results, your Policy Value tends to increase faster under Option 1 than under Option 2, but the total Death Benefit under Option

22 PROSPECTUS


2 increases or decreases directly with changes in Policy Value. Thus, for a given Premium and Face Amount, you may prefer Option 1 if you are more interested in the possibility of increasing your Policy Value based upon favorable investment experience, while you may prefer Option 2 if you are seeking to increase total Death Benefits.
Example of Applicable Corridor Percentage. The corridor percentages are set so as to seek to ensure that the Policies qualify for favorable federal income tax treatment. An increase in Policy Value due to favorable investment experience may increase the Death Benefit above the Face Amount, and a decrease in Policy Value due to unfavorable investment experience may decrease the Death Benefit (but not below the Face Amount). For example, if in the example below the Policy Owner paid a Net Premium of $40,000 and the Policy Value increased to $48,000 and then decreased to $34,000, the changes in Policy Value would have the following effects on the Death Benefit:
EXAMPLES
 
A
 
B
 
 
 
 
 
Face Amount
 
$100,000
 
$100,000
Death Benefit Option
 
1
 
1
Insured’s Attained Age
 
45
 
45
Policy Value on Date of Death
 
$48,000
 
$34,000
Applicable Corridor Percentage
 
215%
 
215%
Death Benefit
 
$103,200
 
$100,000
In Example A, the Death Benefit equals $103,200, i.e., the greater of $100,000 (the Face Amount) and $103,200 (the Policy Value at the Date of Death of $48,000, multiplied by the corridor percentage of 215%). This amount, less any Policy Debt and unpaid charges, constitutes the Death Benefit proceeds that we would pay to the Beneficiary.
In Example B, the Death Benefit is $100,000, i.e., the greater of $100,000 (the Face Amount) or $73,100 (the Policy Value of $34,000 multiplied by the corridor percentage of 215%).
Change to Death Benefit Option. After the first Policy Year, you may change the Death Benefit Option by writing to us at the address given on the first page of this Prospectus. If you ask to change from Option 2 to Option 1, we increase the Face Amount of your Policy by the amount of the Policy Value. If you ask to change from Option 1 to Option 2, we decrease the Face Amount of your Policy by the amount of the Policy Value. The change takes effect on the Monthly Activity Day on or immediately following the day we receive your written request. We do not currently require you to prove insurability for a Death Benefit Option change.

Change to Face Amount. You may change the Face Amount after the first Policy Year. You may request the change by writing to us at the address shown on the first page of this Prospectus. You should be aware that a change in the Face Amount changes the net amount at risk and, therefore, changes the cost of insurance charges on your Policy. The change will take effect on the Monthly Activity Day after we approve the request. We do not permit a Face Amount change if the Policy is in the Grace Period.
If you request a decrease in Face Amount, we first apply it to coverage provided by the most recent increase in Face Amount, then to the next most recent increase successively and finally to the coverage under the original application. We do not permit a decrease in the Face Amount of your Policy if afterward the Face Amount remaining in force would be less than $100,000. A decrease in the Face Amount affects the Safety Net Premium and Coverage Guarantee Rider premium, if applicable. A Face Amount decrease will not be subject to a partial withdrawal fee, even if the reduction triggers a mandatory withdrawal of funds from this Policy.
To apply for an increase in the Face Amount, you must submit to us a supplemental application, accompanied by satisfactory evidence that the Insured is insurable. We do not permit any increase in Face Amount after the Insured’s 80th birthday. The minimum amount of a Face Amount increase is $10,000. You may not increase the Face Amount of your Policy more often than once every twelve months.
You should be aware that an increase in the Face Amount of your Policy affects the cost of insurance charges applicable to your Policy. As noted above, we deduct a larger amount of cost of insurance charges, because an increase in the Face Amount also increases the net amount at risk under your Policy. We will not approve a request for a Face Amount increase if the Net Surrender Value is too small to pay the Monthly Deduction for the Policy Month following the increase. As described in “Surrender Charge” on page 32 of this Prospectus, if you increase the Face Amount of your Policy, your maximum surrender charge also increases. Finally, increases in the Face Amount of your Policy also increase the Safety Net Premium amount. Modifying the Policy’s Face Amount may have tax ramifications. For additional information, please see “Federal Taxes” on page 35.
Optional Insurance Benefits. You may ask to add one or more riders to your Policy to provide additional optional insurance benefits. We require evidence of insurability before we issue a rider to you. We deduct the cost of any riders as part of the Monthly Deduction. Adding a Rider may also increase the Safety Net Premium amount or Coverage Guarantee Rider premium amount

23 PROSPECTUS


for your Policy. The riders we currently offer are described below. All of these riders may be added to your Policy at any time except the Primary Insured Rider, the Guaranteed Insurability Rider, the Coverage Guarantee Rider and the Overloan Protection Rider, which are only available at Policy issue. In our discretion, we may offer additional riders or stop offering a rider.
Certain restrictions apply if you add the Coverage Guarantee Rider to your policy.
(i)You cannot add both the Coverage Guarantee Rider and the Guaranteed Insurability Rider to your Policy.
(ii)If you add the Coverage Guarantee Rider to your Policy, the total sum of the coverages available for the Additional Insured Term Rider and the Primary Insured Term Rider will be limited to less than or equal to three times the base coverage. For example, if the base policy has $100,000 of coverage, and the Coverage Guarantee Rider is added to the policy, then the total sum of the coverages available for the Additional Insured Term Rider and Primary Insured Term Rider will be limited to $300,000.
(iii)Adding or increasing the coverage under the Additional Insured Term Rider after policy issue will terminate the Coverage Guarantee Rider.
(iv)Changing the death benefit option on your Policy will terminate the Coverage Guarantee Rider.
All riders can be concurrently elected, other than the restrictions stated above related to the Coverage Guarantee Rider. Riders requiring an additional cost will reduce your Policy Value due to the cost of the Rider.
•
Children’s Level Term Rider.
This rider provides for level term insurance on the Insured’s children, as defined in the rider. We provide coverage until the earlier of the child’s 25th birthday or the Insured’s age 65. We pay the Death Benefit to the person designated by you. If the Insured dies while the rider is in effect, we convert the coverage on each child to paid-up term insurance that remains in force until the child reaches age 25. The rider may be exchanged for a new term policy on the earlier of each child’s 25th birthday, or the Insured’s age 65. We do not require evidence of insurability to exchange the rider.
•
Accidental Death Benefit Rider
Under this rider, we provide additional insurance if the Insured dies from accidental bodily injury as defined in the rider. This rider ends when one of the following occurs: (1) the Policy terminates; (2) the next Policy Anniversary after the Insured’s 70th birthday; or (3) you ask to end the rider.
•
Continuation of Payment Rider.
Under this rider, we contribute a monthly amount to the Policy Value if the Insured becomes totally disabled as defined in the rider. This rider ends when one of the following occurs: (1) the Policy terminates; (2) the Insured reaches age 60; or (3) you ask to end the rider.
•
Additional Insured Term Rider.
This rider provides life insurance coverage on an Additional Insured. We pay the Face Amount of the rider to the named Beneficiary when we receive due proof that the Additional Insured died while the rider was in force. You may renew the coverage until the Additional Insured reaches age 80. Until the Additional Insured’s 75th birthday, you may exchange the rider for a new Policy on the Additional Insured’s life, subject to certain conditions as defined in the rider. We do not require evidence of insurability to exchange the rider.
•
Primary Insured Term Rider
This rider provides additional term life insurance coverage on the Primary Insured. You may renew this coverage until the Insured reaches age 80. Until the Insured reaches age 75, you may exchange the rider for a new Policy. In addition, after the first Policy Year and until the Insured reaches age 75, you may convert the rider to the base Policy. We do not require evidence of insurability to exchange or convert the Policy. If you purchase this rider, your surrender charge is less than if you purchased a single Policy with the same Face Amount as the total coverage of your Policy and Primary Insured Term Rider. In addition, at least initially your total insurance charges are lower for a Policy/Primary Insured Term Rider combination, although they may be higher if your Policy Value increases and the net amount at risk under your Policy decreases sufficiently.
Commissions payable to sales representatives on the sale of Policies with a Primary Insured Term Rider are calculated based on the total premium payments made for the base Policy and the rider. The commissions will vary depending on the ratio of the premium for the base Policy and the rider. The same amount of premium will result in the highest commission when there is no rider, with the commission declining as the portion of the death benefit coverage allocated to the rider increases. Thus, the lowest commission amount is payable when the maximum rider is purchased.
•
Accelerated Death Benefit Rider, Terminal Illness.

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This rider provides for an advance of a portion of the Death Benefit if the Insured is diagnosed with a terminal illness and satisfactory proof of the terminal illness is provided to us. A terminal illness is a medical condition of the Insured that, not withstanding medical care, will result in death within twelve months, or as otherwise provided by applicable NY law. You may add this rider after your Policy is issued. There is no additional cost for this rider. The maximum accelerated death benefit you may receive is the lesser of:
(i)80% of the Death Benefit as of the date the first request is paid; or
(ii)$250,000, including all other accelerated benefit amounts paid under all policies issued by us on the life of the Insured.
The Death Benefit and Policy Value of your Policy are reduced if an accelerated benefit is paid. The amount of Death Benefit that you request to accelerate is reduced by:
(i)any due and uncollected Monthly Deductions, or unpaid required Premium if a claim occurs during a Grace Period;
(ii)if allowed in your state, an administrative expense charge of up to $150 for each accelerated benefit request;
(iii)pro-rata amount of any outstanding Policy Loan; and
(iv)twelve-month actuarial discount that reflects the early payment of the accelerated benefit amount.
•
Overloan Protection Rider
If the benefit is elected under this rider, the Policy will not lapse due to Policy loans exceeding the Surrender Value. The Overloan Protection Rider converts your Policy to a paid-up policy, which cannot lapse. As a paid- up policy, no additional premiums, withdrawals are permitted. No additional monthly charges are deducted from your Policy. You are permitted to repay any outstanding loans on the Policy. There is no charge for the rider unless the benefit is elected, when a one-time charge of 4.5% of the Policy Value will be deducted. The rider benefit is only available if certain conditions are met. These conditions are;
1)
the Policy has been in force for at least 15 policy years;
2)
the Insured has attained age 75;
3)
the Death Benefit option for the Policy must be Option 1;
4)
the Policy Debt is greater than the Face Amount;
5)
the Policy Debt is at least 90% of the Surrender Value;
6)
the sum of all partial withdrawals must be at least equal to the sum of all Premiums paid;
7)
the Policy must not be a modified endowment contract (MEC) as defined by federal tax laws, and exercising the rider must not cause the Policy to become a MEC; and
8)
the Policy Debt is no more than 99.9% of the Surrender Value after the overloan protection election charge has been deducted from the Policy Value.
•
Coverage Guarantee Rider
The Coverage Guarantee Rider can enable you to keep your policy in force for a specified period of time which is longer than the Safety Net Period, regardless of the performance of your Policy Value. This rider is available if the Insured is between 18 and 80 at the Issue Date, and the rider must be elected at policy issue.
The Coverage Guarantee Rider provides two possible coverage periods: Extended Coverage and Lifetime Coverage. Extended Coverage has a coverage period which extends to the later of the policy anniversary following the insured’s 70th birthday, or 20 years. Lifetime Coverage has a specified period which extends to the anniversary following the insured’s 121st birthday.
Both the Extended and Lifetime Coverages are in effect as long as cumulative premium requirements are met for each level of coverage. On each monthly activity date after the Issue Date, a cumulative premium test is performed for both Extended Coverage and Lifetime coverage. Total premiums paid since the Issue Date, less any partial withdrawals and policy debt, are compared to the monthly Extended and Lifetime coverage premiums, times the number of months since the Issue Date. The Lifetime Coverage monthly premiums will be greater than the Extended Coverage monthly premiums in most cases. As a result, Extended Coverage may be in effect while Lifetime coverage is not in effect because the cumulative premium requirement is lower.
If the Lifetime Coverage premium test is not met, it can be reinstated within an 18 month time period. In order to reinstate, total premiums paid since the Issue Date, less partial withdrawals and policy debt; must exceed the monthly Lifetime Coverage Premium times the number of months since the Issue Date. If the Lifetime Coverage monthly premium test is not met for 18 consecutive months, Lifetime Coverage will permanently expire and cannot be reinstated. The Coverage Guarantee rider can still be in effect for Extended Coverage if Lifetime Coverage expires, during the Extended Coverage period.

25 PROSPECTUS


If the Extended Coverage premium test is not met, it can be reinstated within an 18 month time period. In order to reinstate, total premiums paid since the Issue Date, less partial withdrawals and policy debt; must exceed the monthly Extended Coverage Premium times the number of months since the Issue Date. If the Extended Coverage monthly premium test is not met for 18 consecutive months, Extended Coverage will permanently expire and cannot be reinstated. The Coverage Guarantee rider will expire when both the Lifetime and Extended Coverages expire. Upon expiry of the Coverage Guarantee Rider, the Safety Net Premium feature may still be in effect.
The inclusion of other riders may increase the monthly Extended Coverage and Lifetime Coverage premiums. Certain riders will not be available on a policy with the Coverage Guarantee Rider, and others will eliminate the Lifetime Coverage level. The following is a summary of restrictions:
1)
The Guaranteed Insurability Option Rider is not available with the Coverage Guarantee Rider;
2)
Lifetime Coverage is not available if the Policy contains the Additional Insured Term rider or the Primary Insured Term rider. Extended Coverage is available, however, subject to the conditions in #3;
3)
The sum of the face amounts on the Primary Insured Term rider and all Additional Insured Term riders cannot exceed three times the face amount of the base policy if the Coverage Guarantee Rider is attached to a policy;
4)
An Additional Insured Term rider cannot be added or increased after the Issue Date on a policy with the Coverage Guarantee Rider.
The Coverage Guarantee rider will expire on the earliest of the following events:
1)
At the end of the latest coverage period available under the rider;
2)
Failure to meet the cumulative premium requirements for both Lifetime Coverage and Extended Coverage;
3)
The date the Policy terminates;
4)
Upon your written request;
5)
Violation of any investment rules or restrictions in place at the Issue Date (currently, there are no investment restrictions);
6)
An elective face amount increase on the policy
7)
A death benefit option change
8)
Adding the Additional Insured Term rider after the policy issue date.
•
Guaranteed Insurability Rider
This rider provides the option to increase the face amount of the policy on the policy anniversaries following the attainment of ages 25, 28, 31, 34, 37 and 40 without proof of insurability. Unscheduled increases are allowed in lieu of the attained age increase options at the following life events: birth, marriage and adoption. Election of an unscheduled increase due to life event results in forfeiting the next scheduled increase. The option to increase the face amount as of any particular option date will, if not exercised, expire at the end of the period during which such option was available. This rider is available to insureds 38 years old and younger.
Policy Loans
General. While the Policy is in force, you may borrow money from us using the Policy as the only security for your loan. Loans have priority over the claims of any assignee or any other person. The maximum amount available for Policy Loans is 90% of the Surrender Value of your Policy at the end of the Valuation Period in which we receive your loan request so long as the Net Surrender Value after the loan is taken is sufficient to cover the most recent total monthly deduction times 3. Outstanding Policy Loans and loan interest reduce the amount you may request. Taking a loan from your Policy may increase the risk that your Policy will lapse, may prevent you from satisfying the Safety Net or Coverage Guarantee Rider cumulative premium requirements, will reduce your Policy Value and will reduce the Death Proceeds. In addition, if you have named an irrevocable Beneficiary, you must also obtain his or her written consent before we make a Policy Loan to you.
We ordinarily disburse your loan to you within seven days after we receive your loan request at our home office. We may, however, postpone payment in the circumstances described above in “Policy Value - Postponement of Payments.”
When we make a Policy Loan to you, we transfer to the Loan Account a portion of the Policy Value equal to the loan amount. We also transfer in this manner Policy Value equal to any due and unpaid loan interest. Loan amounts are transferred from the Separate Account and the Fixed Account to the Loan Account in the same allocation percentages as specified for premium payments. However, we do not withdraw amounts from the Fixed Account equaling more than the total loan multiplied by the ratio of the Fixed Account to the Policy Value immediately preceding the loan. If this is the case, the transfers from the Separate

26 PROSPECTUS


Account will be increased proportionately based on the premium allocation percentages without the Fixed Account. The amounts allocated to the Loan Account are credited with interest at the Loan Credited Rate stated in your Policy.
Loan Interest. Interest on Policy Loans accrues daily and is due at the end of each Policy Year. If you do not pay the interest on a Policy Loan when due, the unpaid interest becomes part of the Policy Loan and accrues interest at the same rate. In addition, we transfer the difference between the values of the Loan Account and the Policy Debt on a pro-rata basis from the Sub-Accounts and the Fixed Account to the Loan Account.
You may borrow an amount equal to your Policy Value, less all Premiums paid, as a preferred loan. The interest rate charged for preferred loans is 3.0% per year. A standard loan is the amount that may be borrowed from the sum of Premiums paid. All non-preferred loans will be treated as a standard loan. The interest rate charged for standard loans is currently 4.0% per year.
Upon expiration of the initial surrender charge period, all new and existing loans will be treated as preferred loans. The initial surrender charge period expires when the surrender charge amount becomes zero as shown on the Policy Data pages of your policy.
Loan Repayment. While the Policy remains in force, you may repay the Policy Loan in whole or in part without any penalty at any time while the Insured is living. If you have a Policy Loan outstanding, we assume that any payment we receive from you is to be applied as Premium to your Policy Value, unless you tell us to treat your payment as a loan repayment. If you designate a payment as a loan repayment or interest payments, your payment is allocated among the Sub-Accounts and the Fixed Account using the same percentages used to allocate Net Premiums. An amount equal to the payment is deducted from the Loan Account.
If the total outstanding loan(s) and loan interest exceeds the Surrender Value of your Policy, and both the Safety Net premium guarantee and Coverage Guarantee rider are not in effect, we notify you and any assignee in writing. To keep the Policy in force, we require you to pay a Premium sufficient to keep the Policy in force for at least three more months. If you do not pay us sufficient Premium within the 61-day Grace Period, your Policy lapses and terminates without value. As explained in the section entitled “Lapse and Reinstatement” below, you may subsequently reinstate the Policy by either repayment or reimbursement of any Policy Debt that was outstanding at the end of the Grace Period. If your Policy lapses while a Policy Loan is outstanding, you may owe taxes or suffer other adverse tax consequences even if you subsequently reinstate the Policy. Please consult a tax advisor for details.
Pre-Existing Loan. If you have a loan with another insurance company, and you are terminating that policy to buy one from us, usually you would repay the old loan during the process of surrendering the old policy. Income taxes on the interest earned may be due. We permit you to carry this old loan over to your new Policy through a Tax Code Section 1035 tax-free exchange, up to certain limits. The use of a Section 1035 tax-free exchange may avoid any current income tax liability that would be due if the old loan was extinguished.
If you transfer a Policy Loan from another insurer as part of a Section 1035 tax-free exchange, we treat a loan of up to 20% of your Policy Value as a preferred loan. If the amount due is more than 20% of your Policy Value, we treat the excess as a standard loan. The treatment of transferred Policy Loans is illustrated in the following example:
Transferred Policy Value

$190,000

Transferred Policy Loan

$40,000

Surrender Value

$150,000

20% of Policy Value

$38,000

Preferred Loan

$38,000

Standard Loan

$2,000

Upon expiration of the initial surrender charge period, all new and existing loans will be treated as preferred loans.
Effect on Policy Value. A Policy Loan, whether or not repaid, has a permanent effect on the Policy Value because the investment results of each Sub-Account and the Fixed Account apply only to the amount remaining in that account. The longer a loan is outstanding, the greater the effect is likely to be. The effect could be favorable or unfavorable. If the Sub-Accounts and/or Fixed Account earn more than the annual interest rate for amounts held in the Loan Account, your Policy Value does not increase as rapidly as it would if you had not taken a Policy Loan. However, if the Sub-Accounts or the Fixed Account or both earn less than that rate, then your Policy Value is greater than it would have been if you had not taken a Policy Loan. The combination of an increasing loan balance, deductions for contract charges and fees, and unfavorable investment performance may cause the Policy to lapse, triggering ordinary income taxation on the outstanding loan balance to the extent it exceeds your cost basis in the Policy. If eligible, you may be able to elect the Overloan Protection Rider, which converts the Policy to a paid-up policy, which would prevent the Policy from lapsing. (See “Overloan Protection Rider” on page 23.) Also, if you do not repay a Policy Loan, total outstanding Policy Debt is subtracted from the Death Benefit and Surrender Value otherwise payable.

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Surrenders and Withdrawals
Surrenders. While your Policy is in force, you may surrender the Policy. Your Policy and all riders terminate on the day we receive your written request, or the surrender effective date requested by you, whichever is later.
The Net Surrender Value equals the Policy Value, minus the surrender charge, minus any Policy Debt. The surrender charge is described in “Charges and Deductions - Surrender Charge” below. Upon surrender, we pay you the Net Surrender Value determined as of the day we receive your written request. We ordinarily pay you the Net Surrender Value of the Policy within seven days of our receiving your complete written request or on the effective surrender date you request, whichever is later. We may, however, postpone payment in the circumstances described in the “Policy Value - Postponement of Payments” section. The Policy cannot be reinstated once it is surrendered. You may receive the surrender proceeds in one sum or under any of the settlement options described in “Settlement Options” below. We have set forth the tax consequences of surrendering the Policy in “Federal Taxes” below.
The following is an example of the calculation of the Net Surrender Value for a Policy surrendered the first Policy Year:
Example (45-Year Old Non-Smoking Male):
Face Account =

$100,000

Annual Premium =

$4,700

Policy Value =

$4,300

Surrender Charge =

$2,098

Net Surrender Value =

$2,202


Partial Withdrawal. General. While the Policy is in force, you may receive a portion of the Net Surrender Value by making a partial withdrawal from your Policy. The minimum partial withdrawal amount is $250. You may not withdraw an amount that would reduce the Face Amount below $25,000. After a partial withdrawal, the Net Surrender Value must be sufficient to cover the last monthly deduction times three. We deduct a partial withdrawal service fee of $25 from the remaining Policy Value for a partial withdrawal.
We subtract the amount withdrawn from your Policy Value. You may specify how much of your partial withdrawal you wish taken from each Sub-Account or from the Fixed Account. You may not withdraw from the Fixed Account more than the total withdrawal amount times the ratio of the Fixed Account to your total Policy Value immediately before the withdrawal.
You must request the partial withdrawal in writing. Your request is effective on the date received. We may, however, postpone payment in the circumstances described in the “Policy Value - Postponement of Payments” section. Before we pay any partial withdrawal, you must provide us with a completed withholding form.
Effect on Face Amount. If you have selected Death Benefit Option 1, a partial withdrawal reduces the Face Amount of your Policy as well as the Policy Value. We reduce the Face Amount by the amount of the partial withdrawal. The Face Amount after a partial withdrawal may not be less than $25,000. If you have previously increased the Face Amount of your Policy, your partial withdrawals first reduce the Face Amount of the most recent increase, then the most recent increases successively, then the coverage under the original Policy.
Under Option 2, a reduction in Policy Value as a result of a partial withdrawal typically results in a dollar for dollar reduction in the Death Benefit proceeds payable under the Policy.
The following are examples of calculations as discussed above:

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Example (45-Year Old Non-Smoking Male):
Death Benefit Option 1
Prior to Partial Withdrawal
 
Policy Value

$8,600

Net Cash Surrender Value

$6,649

Face Amount

$100,000

Death Benefit

$100,000

Partial Withdrawal

$1,000

After Partial Withdrawal
 
Policy Value

$7,575

Net Cash Surrender Value

$5,624

Face Amount

$99,000

Death Benefit

$99,000

Example (45-Year Old Non-Smoking Male):
Death Benefit Option 2
Prior to Partial Withdrawal
 
Policy Value

$8,600

Net Cash Surrender Value

$6,649

Face Amount

$100,000

Death Benefit

$108,600

Partial Withdrawal

$1,000

After Partial Withdrawal
 
Policy Value

$7,575

Net Cash Surrender Value

$5,624

Face Amount

$100,000

Death Benefit

$107,575

Example (45-Year Old Non-Smoking Male):
Death Benefit Option 1
Initial Face Amount

$100,000

Increase in Year 2 Face Amount

$200,000

Total Policy Year 3 Face Amount

$300,000

Prior to Partial Withdrawal
 
Policy Value

$12,700

Net Cash Surrender Value

$7,148

Death Benefit

$300,000

Partial Withdrawal

$1,000

After Partial Withdrawal
 
Policy Value

$11,675

Net Cash Surrender Value

$6,123

Initial Face Amount

$100,000

Increase Face Amount

$199,000

Total Face Amount

$299,000

Death Benefit

$299,000

Effect on Rider Benefits. A partial withdrawal will decrease cumulative premiums paid into your Policy and as a result may impact the Coverage Guarantee Rider. Riders do not impact the ability to take partial withdrawals.
Tax Consequences. The tax consequences of partial withdrawals are discussed in “Federal Taxes” below.
Settlement Options
We pay the surrender proceeds or Death Benefit proceeds under the Policy in one sum or under one of the Settlement Options that we then offer. The one sum payment may be paid in a single payment or deposited to an interest bearing account, if available. You may request a Settlement Option by notifying us in writing at the address given on the first page of this Prospectus. We

29 PROSPECTUS


transfer to our Fixed Account any amount placed under a Settlement Option, which will not be affected thereafter by the investment performance of the Separate Account. We do not permit surrenders or partial withdrawals after payment under a settlement option commences.
The amount applied to a Settlement Option must include at least $5,000 of Policy Value and result in installment payments of not less than $50. When the proceeds are payable, we inform you concerning the rate of interest we credit to funds left with us. We guarantee that the rate of interest will be at least 2%. We may pay interest in excess of the guaranteed rate.
We currently offer the two Settlement Options described below:
Option A - Fixed Payments. We pay a selected monthly income until the proceeds, and any interest credits, are exhausted.
Option B - Life Income Guaranteed Period Certain. We pay the proceeds in a monthly income for as long as the payee lives, or you may also select a guarantee period of between five and twenty years. If a guarantee period is selected, we make monthly payments at least until the payee dies. If the payee dies before the end of the guarantee period, we continue payments to a successor payee until the end of the guarantee period. If no guarantee period is selected or if the payee dies after the end of the guarantee period, we stop payments when the payee dies. It is possible for the payee to receive only one payment under this option, if the payee dies before the second payment is due and you did not choose a guarantee period. This Settlement Option is not available if settlement is to a non-natural Owner or non-natural Beneficiary.
In addition, we may agree to other Settlement Option plans. Write or call us to obtain information about them.
You may request that the proceeds of the Policy be paid under a Settlement Option by submitting a request to us in writing before the death of the Insured. If at the time of the Insured’s death, no Settlement Option is in effect, the Beneficiary may choose a Settlement Option after the Death Benefit is payable and before it is paid. If you change the Beneficiary, the existing choice of Settlement Option becomes invalid and you may either notify us that you wish to continue the pre-existing choice of Settlement Option or select a new one.
Maturity
The Policies have no Maturity Date. Your Policy will continue after the Insured reaches age 121 as long as Net Surrender Value is sufficient to cover Monthly Deductions. Following the Insured’s 121st birthday, we will waive any cost of insurance charge, administrative expense charge, mortality and expense risk charge, or policy fee.
Lapse and Reinstatement
Lapse and Grace Period. If the Net Surrender Value is less than the Monthly Deduction due on a Monthly Activity Day and the Safety Net Premium or Coverage Guarantee Rider is not in effect, your Policy may lapse. We give you a 61-day Grace Period in which to pay an adequate amount of additional Premium to keep the Policy in force after the end of the Grace Period. Additional premium may be paid during the Grace Period to assure the Safety Net Premium guarantee and Coverage Guarantee Rider (if in force).
At least 61 days before the end of the Grace Period, we send you a notice.
The Policy continues in effect through the Grace Period. If the Insured dies during the Grace Period, we pay a Death Benefit in accordance with your instructions. However, we reduce the proceeds by an amount equal to Monthly Deduction(s) due and unpaid. See “Death Benefits and Optional Insurance Benefits” on page 22. If you do not pay us the amount shown in the notice before the end of the Grace Period, your Policy ends at the end of the Grace Period.
Reinstatement. If the Policy lapses, you may apply for reinstatement by paying to us the reinstatement Premium and any applicable charges required under the Policy. You must request reinstatement within five years of the date the Policy entered a Grace Period. The reinstatement Premium equals an amount sufficient to (1) cover all unpaid Monthly Deductions for the Grace Period, and (2) keep your Policy in force for three months. If a Policy Loan was outstanding at the time of your Policy’s lapse, you must either repay or reinstate the loan before we reinstate your Policy. In addition, we may require you to provide evidence of insurability satisfactory to us. The Face Amount upon reinstatement cannot exceed the Face Amount of your Policy at its lapse. The Policy Value on the reinstatement date reflects the Policy Value at the time of termination of the Policy plus the Premium paid at the time of reinstatement. All Policy charges continue to be based on your original Issue Date.
The Safety Net will apply upon reinstatement if the Safety Net premium guarantee expiry date has not expired and cumulative premiums received at time of reinstatement exceed the Safety Net premium times the number of months that coverage was in force, plus three additional Safety Net premiums. The Coverage Guarantee Rider cannot be reinstated if the Policy lapses.
You cannot reinstate the Policy once it has been surrendered.

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Cancellation Rights
Free-Look Period. You may cancel your Policy by returning it to us within thirty-one (31) days after you receive it, or after whatever longer period may be permitted by NY law. We will allocate Premiums received during that time to the Fixed Account.
Charges and Deductions
Premium Expense Charge. Before we allocate a Premium to the Policy Value, we subtract the Premium Expense Charge. The Premium Expense Charge equals 5.25% of all Premiums in all years. This charge is intended to help us pay for: (a) actual sales expenses, which include agents’ sales commissions and other sales and distribution expenses; (b) state premium taxes and other state and local premium taxes; and (c) certain Federal taxes and other expenses related to the receipt of Premiums.
New York does not currently have a premium tax.
Monthly Deduction. On the Issue Date and on each Monthly Activity Day, we deduct from your Policy Value a Monthly Deduction to cover certain charges and expenses in connection with the Policy. The Monthly Deduction is the sum of the following five items:
1)
the Policy Fee;
2)
the administrative expense charge;
3)
the mortality and expense risk charge;
4)
the cost of insurance charge for your Policy; and
5)
the cost of additional benefits provided by riders, if any.
We allocate the mortality and expense risk charge pro rata among the Sub-Accounts in proportion to the amount of your Policy Value in each Sub-Account. We allocate the remainder of the Monthly Deduction pro rata among the Sub-Accounts and the Fixed Account, unless you specify otherwise.
Policy Fee. The monthly policy fee will never be more than $15.00 per month. This charge compensates us in part for administrative expenses such as salaries, postage, telephone, office equipment and periodic reports. The Policy Fee is waived after the Insured’s age 121.
Administrative Expense Charge. The monthly Administrative Expense Charge applies for the first 10 Policy Years, and varies based on the Face Amount. The current monthly Administrative Expense Charge is tiered such that $0.09 per $1,000 is charged on the first $100,000 of Face Amount, and $0.03 per $1,000 is charged on the Face Amount above $100,000. The guaranteed amount is the same as the current amount. This charge covers administration expenses and issuance costs. A monthly Administrative Expense Charge is determined separately for each increase in Face Amount based on the Insured’s attained age at the time of the increase. The applicable charge applies for ten years from the date of the increase. If you decrease the Face Amount, the Administrative Expense Charge remains the same. The Administrative Expense Charge is waived after the Insured’s age 121.
Mortality and Expense Risk Charge. The guaranteed monthly mortality and expense risk charge is calculated at an annual rate of 0.70% of the net Policy Value allocated to the Sub-Accounts for the first ten years and 0.30% thereafter. The mortality and expense risk charge is not assessed against your Policy Value in the Fixed Account. This charge compensates us for the mortality and expense risks that we assume in relation to the Policies. The mortality risk assumed includes the risk that the cost of insurance charges specified in the Policy will be insufficient to meet claims. We also assume a risk that, on the Monthly Activity Day preceding the death of an Insured, the Death Benefit will exceed the amount on which the cost of insurance charges were based. The expense risk assumed is that expenses incurred in issuing and administering the Policies will exceed the administrative charges set in the Policy. The Mortality and Expense Risk Charge is waived after the Insured’s age 121.
Cost of Insurance Charge. The cost of insurance is determined monthly. The cost of insurance charge is determined by multiplying the applicable current cost of insurance rate per $1,000 by the net amount risk for each Policy Month. The Net Amount at Risk is (a) - (b), where: (a) is the Death Benefit as of the prior Monthly Activity Day divided by 1.0032737; and (b) is the Policy Value as of the prior Monthly Activity Day. The cost of insurance rate is individualized depending on the Insured’s age at issue of the Policy, Policy Year, sex, payment class and face amount, thus, the rate differs from year to year. The rates are determined by us, but they will never be more than the guaranteed rates shown in your Policy. Please see the following example.

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Example (45-Year Old Non-Smoking Male):
Face Amount
$100,000
Death Benefit Option
1
Policy Value on the Current Monthly Activity Day
$30,000
Insured’s Attained Age
45
Corridor Percentage
215%
Death Benefit
$100,000
On the Monthly Activity Day in this example, the Death Benefit as then computed would be $100,000, because the Face Amount ($100,000) is greater than the Policy Value multiplied by the applicable corridor percentage ($30,000 × 215% = $64,500). Since the Policy Value on that date is $30,000, the cost of insurance charges per $1000 are applied to the difference in the net amount at risk of $69,674 (($100,000/1.0032737) - $30,000).
Assume that the Policy Value in the above example was $50,000. The Death Benefit would then be $107,500 (215% × $50,000), since this is greater than the Face Amount ($100,000). The cost of insurance rates in this case would be applied to the net amount at risk of $57,149 (($107,500/1.0032737) - $50,000).
The Policy Value may vary monthly, based on the investment performance of the Sub-Accounts you have selected, the addition of interest credited to your Fixed Account (if any), the deduction of charges, and any other Policy transaction. Under Policies with an Option 1 Death Benefit, increases in the Policy Value generally decrease the net amount at risk; conversely, decreases in the Policy Value increase the net amount at risk. Since the cost of insurance charge is based on the net amount at risk, your cost of insurance charge probably will be correspondingly different each month. Under Policies with an Option 2 Death Benefit, however, the net amount at risk does not vary with changes in the Policy Value, unless your Policy’s death benefit is determined under a corridor percentage. In that circumstance, increases in the Policy Value increase the net amount at risk. See “Policy Value” on page 14. Accordingly, a change in the Policy Value does not affect your monthly cost of insurance charge, unless it increases your net amount at risk.
We determine the cost of insurance charge separately for the initial Face Amount and each subsequent increase. The cost of insurance charge for increases reflects circumstances, such as the Insured’s age and health status, at the time of the increase. The cost of insurance charge covers our anticipated mortality costs for standard and substandard risks. We determine the current cost of insurance rates, but we guarantee that we will never charge you a cost of insurance rate higher than the guaranteed cost of insurance rates shown in the Policy.
We base the cost of insurance rate on the sex, issue age, Policy Year and premium rating class of the Insured, and on the Face Amount. We charge a lower current cost of insurance rate for Policies with a Face Amount of $200,000 or above and further lower the current rate for Policies with a Face Amount of $1,000,000 or above. If an increase in Face Amount of your Policy would raise the total Face Amount above one of these break points, only the amount of the increase above the breakpoint is eligible for a lower current cost of insurance rate. Although we base the current cost of insurance rate on our expectations as to future mortality experience, that rate will never exceed a maximum cost of insurance rate based on the 2001 Commissioners Standard Ordinary (“2001 CSO”) Smoker and Non-Smoker Mortality Table, based on the Insured’s sex, smoker status, and age.
Beginning on the Policy Anniversary following the Insured’s 121st birthday, we waive all cost of insurance charges, administrative expense charges, mortality and expense risk charge, and monthly policy fees.
Rider Charges. If your Policy includes one or more riders, a charge applicable to each rider you purchased is made from your Policy Value each month. The charge is to compensate us for the anticipated cost of providing these benefits and is specified on the applicable rider. The Rider Charges are summarized in the table on page 11 of this Prospectus. For a description of the optional riders, see “Optional Insurance Benefits” beginning on page 23.
Separate Account Income Taxes. We are not currently deducting or maintaining a provision for taxes. In the future, however, we may establish a provision for taxes if we determine, in our sole discretion, that we will incur a tax from the operation of the Separate Account. We will deduct for any taxes we incur as a result of the operation of the Separate Account, whether or not we previously made a provision for taxes and whether or not it was sufficient.
Portfolio Charges. You indirectly bear the charges and expenses of the Portfolios whose shares are held by the Sub-Accounts to which you allocate your Policy Value. The third table in “Fee Tables” above contains a summary of current estimates of those charges and expenses. These charges and expenses are deducted from the assets of the Portfolios. For more detailed information, please refer to the Prospectuses for the appropriate Portfolios.
We receive compensation from the investment advisors or administrators of some of the Portfolios. Such compensation is consistent with the services we provide or the cost savings resulting from the arrangement and therefore may differ between Portfolios. Such compensation typically is a percentage of the Separate Account assets invested in the relevant Portfolio and generally may range up to 0.25% annually of net assets. We receive Rule 12b-1 fees or service fees directly from some of the Portfolios for providing certain services primarily intended to assist in the account servicing of the Portfolios’ shares held by corresponding Sub-Accounts.

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Surrender Charge. If you surrender your Policy, we may subtract a surrender charge from the surrender proceeds. The surrender charge equals the amount shown in the surrender charge table in your Policy, plus any additional surrender charge due to increases in the Face Amount of your Policy. The amount of the surrender charge decreases over time.
Initial Surrender Charge. When we issue your Policy, we determine the initial surrender charge. To determine the initial surrender charge, we multiply the Initial Face Amount of your Policy by a rate per thousand dollars of Face Amount. The applicable rate depends on the Insured’s age at issue, sex and status as a smoker or non-smoker. For example, if the Insured is age 45 when your Policy is issued, the applicable rates per thousand are as follows:
Male Non-Smoker

$20.98

Male Smoker

$25.30

Female Non-Smoker

$17.39

Female Smoker

$19.68

Unisex Non-Smoker

$20.26

Unisex Smoker

$24.18

Accordingly, if the Insured were a male non-smoker age 45 and the Policy’s Face Amount were $100,000, the surrender charge initially would be $2,098.00. The rates for each category are greater or lesser according to the age of the Insured when your Policy is issued. The maximum rate is $49.00 per thousand.
If you surrender your Policy after ten Policy Years have elapsed, we do not charge a surrender charge (unless you have increased the Face Amount of your Policy, as explained below). Before that time, we determine the applicable surrender charge by multiplying the initial surrender charge on your Policy by the appropriate surrender charge percentage for the Policy Year in which the surrender occurs. The applicable surrender charge percentage depends on the Insured’s sex, age when your Policy was issued, status as a smoker or non-smoker, and the number of years elapsed since your Policy was issued. For example, the following surrender charge percentage rates would apply if the Insured were 45 years old when your Policy was issued:
POLICY YEAR
 
Male,
Nonsmoker
Age 45
 
Male,
Smoker
Age 45
 
Female,
Nonsmoker
Age 45
 
Female,
Smoker
Age 45
 
Unisex,
Nonsmoker
Age 45
 
Unisex,
Smoker
Age 45
1
 
100%
 
100%
 
100%
 
100%
 
100%
 
100%
2
 
93%
 
93%
 
93%
 
93%
 
93%
 
93%
3
 
87%
 
87%
 
87%
 
87%
 
87%
 
87%
4
 
82%
 
82%
 
82%
 
82%
 
82%
 
82%
5
 
77%
 
77%
 
77%
 
77%
 
77%
 
77%
6
 
71%
 
73%
 
73%
 
73%
 
71%
 
73%
7
 
59%
 
60%
 
68%
 
64%
 
59%
 
60%
8
 
46%
 
46%
 
54%
 
50%
 
46%
 
46%
9
 
32%
 
31%
 
38%
 
35%
 
32%
 
31%
10
 
18%
 
15%
 
20%
 
19%
 
18%
 
15%
11+
 
0%
 
0%
 
0%
 
0%
 
0%
 
0%
Thus, in the example given above, if the Policy were surrendered during the 7th Policy Year, the surrender charge would equal [$1,237.82 ($2,098.00 × 59%)]. A different surrender charge percentage rate might apply if the Insured is older than 45 when the Policy is issued.
Surrender Charge on Increases in Initial Face Amount. If you increase the Initial Face Amount of your Policy, we determine an additional surrender charge amount applicable to the amount of the increase. We determine the initial amount of the additional surrender charge using the same formula and rates used in determining the initial surrender charge, except that we use the Insured’s age and smoking status at the time of the increase, rather than at the time your Policy was issued.
The surrender charge on the increase also decreases over a ten Policy Year period, starting from the effective date of the increase. The schedule of surrender charge percentages applicable to the additional surrender charge is based on the Insured’s age at the time of the increase. If you surrender your Policy or make a partial withdrawal, we separately calculate the surrender charge applicable to the Initial Face amount and each increase and add those amounts to determine the total surrender charge.
If you decrease the Face Amount, the applicable surrender charge remains the same.
We include in your Policy a table showing the surrender charge rates and the surrender charge percentages applicable under the Policies. For additional information concerning the rates applicable to you, please consult your agent. In addition, a table of the applicable rates is on file with the SEC as an exhibit to the registration statement for the Policies.

33 PROSPECTUS


The Premium Expense Charge (in part) and the surrender charge are imposed to cover our actual sales expenses, which include agents’ sales commissions and other sales and distribution expenses. We expect to recover total sales expenses of the Policies over the life of the Policies. However, the Premium Expense Charge and surrender charge paid with respect to a particular Policy may be higher or lower than the distribution expenses we incurred in connection with that Policy. To the extent distribution costs are not recovered by these charges, we may make up any shortfall from the assets of our general account, which includes funds derived from the mortality and expense charge on the Separate Account assets and the other charges imposed under the Policies.
Partial Withdrawal Service Fee. We do not assess a surrender charge for a partial withdrawal. We do, however, subtract a partial withdrawal service fee of $25 for a partial withdrawal from the remaining policy value to cover our expenses relating to the partial withdrawal.
Transfer Fee. We currently are not charging a transfer fee. The Policy, however, permits us to charge a transfer fee of $10 on the second and each subsequent transaction in each calendar month in which transfer(s) are effected between Sub-Account(s) and/or the Fixed Account. We will notify you if we begin to charge this fee.
We will deduct the transfer fee from the Policy Value that remains in the Sub-Account(s) or Fixed Account from which we process your transfer. If that amount is insufficient to pay the transfer fee, we will deduct the fee from the transferred amount.
General Policy Provisions
Beneficiaries. You name the original Beneficiary(ies) and Contingent Beneficiary(ies) in the application for the Policy. You may change the Beneficiary or Contingent Beneficiary at any time, except irrevocable Beneficiaries may not be changed without their consent.
You must request a change of Beneficiary in writing. We provide a form to be completed, signed and filed with us. Your request for a change in Beneficiary or Contingent Beneficiary takes effect upon our filing of a signed and completed form, effective as of the date you signed the form. Until we receive your change instructions, we are entitled to rely on your most recent instructions in our files. Accordingly, we are not liable for making a payment to the person shown in our files as the Beneficiary or treating that person in any other respect as the Beneficiary, even if instructions that we subsequently receive from you seek to change your Beneficiaries effective as of a date before we made the payment or took the action in question. If you name more than one Beneficiary, we divide the Death Benefit among your Beneficiaries according to your most recent written instructions. If you have not given us written instructions regarding the amount each beneficiary is to receive, we pay the Death Benefit in equal shares to the Beneficiaries. If one of the Beneficiaries dies before you, we divide the Death Benefit among the surviving Beneficiaries.
Assignment. You may assign your Policy as collateral security. You must notify us in writing if you assign the Policy. Until we receive notice from you, we are not liable for any action we may take or payments we may make that may be contrary to the terms of your assignment. We are not responsible for the validity of an assignment. Your rights and the rights of the Beneficiary may be affected by an assignment.
Dividends. We do not pay any dividend under the Policies.
About Us
Allstate Life Insurance Company of New York.
Allstate Life Insurance Company of New York is a stock life insurance company engaged in the business of writing life insurance. Our home office is located in Hauppauge, New York. Our administrative offices are located at 2940 S. 84th Street, Lincoln, NE 68506-4142; however, our mailing address is P.O. Box 660191, Dallas, TX 75266-0191. Please see also “General Information and History” in the SAI.
The Separate Account. Allstate Life of New York Variable Life Separate Account A is a segregated asset account of Allstate New York. Allstate New York owns the assets of the Separate Account, but we hold them separate from our other assets. To the extent that these assets are attributable to the Policy Value of the Policies offered by this Prospectus, these assets may not be used to pay any liabilities of Allstate New York other than those arising from the Policies. Income, gains and losses, whether or not realized, from assets allocated to the Separate Account are credited to or charged against the Separate Account without regard to the income, gains, losses or any investment experience of Allstate New York’s other assets. Allstate New York is obligated to pay all amounts promised to Policy Owners under the Policies.
The Separate Account is divided into Sub-Accounts. The assets of each Sub-Account are invested in the shares of one of the Portfolios. We do not guarantee the investment performance of the Separate Account, its Sub-Accounts or the Portfolios. Values allocated to the Separate Account rise and fall with the values of shares of the Portfolios and are also reduced by Policy charges.

34 PROSPECTUS


We use the Separate Account to fund the Policies and our other variable universal life insurance policies. We account separately for each type of variable life insurance policy funded by the Separate Account.
Federal Taxes
Introduction. The following discussion is general and is not intended as tax advice. Allstate New York makes no guarantee regarding the tax treatment of any Policy or transaction involving a Policy. Federal, state, local and other tax consequences of ownership or purchase of a life insurance policy depend upon your circumstances. Our general discussion of the tax treatment of this Policy is based on our understanding of federal income tax laws as they are currently interpreted. A detailed description of all federal income tax consequences regarding the purchase of this Policy cannot be made in the Prospectus. For detailed information, you should consult with a qualified tax advisor familiar with your situation. If you are concerned about any tax consequences with regard to your individual circumstances, you should consult a qualified tax advisor.
Taxation of the Company and the Separate Account.
Allstate New York is taxed as a life insurance company under Part I of Subchapter L of the Tax Code. The Separate Account is not an entity separate from Allstate New York and its operations form a part of Allstate New York. Therefore, the Separate Account is not taxed separately as a “Regulated Investment Company” under Subchapter M of the Tax Code. Investment income and realized capital gains are automatically applied to increase reserves under the Policies to the extent permitted by federal tax law. Under current federal tax law, Allstate New York believes that the Separate Account investment income and realized net capital gains will not be taxed to the extent that such income and gains are applied to increase the reserves under the Policies. Generally, reserves are amounts that Allstate New York is legally required to accumulate and maintain in order to meet future obligations under the Policies. Allstate New York does not anticipate that it will incur any federal income tax liability attributable to the Separate Account. Therefore, we do not intend to make provisions for any such taxes. If we incur tax associated with a Separate Account, then we may impose a charge against the Separate Account in order to make provisions for any such taxes.
Taxation of Policy Benefits. In order to qualify as a life insurance policy for federal income tax purposes, the policy must meet the definition of a life insurance policy set forth in Section 7702 of the Tax Code. Section 7702 limits the amount of premiums that may be invested in a policy that qualifies as life insurance. The Policy is structured to meet the Section 7702 definition of a life insurance policy. This means that the Death Benefit is generally excluded from the Beneficiary’s gross income under Section 101(a) of the Tax Code and you are generally not taxed on increases in the Policy Value until a distribution occurs.
If the Death Benefit is not received in one sum and is, instead, applied under one of the settlement options, payments generally will be prorated between amounts attributable to the Death Benefit, which will generally be excludable from the Beneficiary’s income, and amounts attributable to earnings on that income (occurring after the Insured’s death), which will be includable in the Beneficiary’s income.
If a Policy fails to qualify as life insurance under Section 7702, the Policy will not provide any of the tax advantages normally provided by life insurance. Allstate New York has the right to amend the Policies to comply with any future changes in the Tax Code, any regulations or rulings under the Tax Code and any other requirements imposed by the Internal Revenue Service.
If you surrender the Policy, you are subject to income tax on the portion of the distribution that exceeds the investment in the contract. The investment in the contract is the gross Premium paid for the Policy minus any amounts previously received from the Policy if such amounts were properly excluded from your gross income. If your Policy is not a Modified Endowment Contract, policy loans are not treated as taxable distributions. Interest paid on a Policy loan is generally not deductible. You are generally taxed on partial withdrawals to the extent the amount distributed exceeds the investment in the contract. In certain situations, partial withdrawals or reduction in benefits during the first fifteen years of the Policy may result in a taxable distribution before the investment in the contract is recovered even if the policy is not a Modified Endowment Contract. Withdrawals and loans from Modified Endowment Contracts are subject to less favorable tax treatment. Loans, if not repaid, and withdrawals reduce the contract’s death benefit and cash value. For an additional discussion of Modified Endowment Contracts, please see “Federal Taxes - Modified Endowment Contracts” on page 36.
If you are Owner and Insured under the Policy, the Death Benefit will be included in your gross estate for federal estate tax purposes. Even if the Insured is not the Owner but retains incidents of ownership in the Policy, the Death Benefit will also be included in the Insured’s gross estate. Examples of incidents of ownership include the right to:
•
change beneficiaries,
•
assign the Policy,
•
revoke an assignment,
•
pledge the Policy, or
•
obtain a Policy loan.

35 PROSPECTUS


If you are Owner and Insured under the Policy, and you transfer all incidents of ownership in the Policy, the Death Benefit will be included in your gross estate if you die within three years from the date of the ownership transfer. State and local estate and inheritance taxes may also apply. In addition, certain transfers of the Policy or Death Benefit, either during life or at death, to individuals two or more generations below the transferor may be subject to the federal generation skipping transfer tax. This rule also applies if the transfer is to a trust for the benefit of individuals two or more generations below the transferor.
The Policy may be used in various arrangements, including nonqualified deferred compensation or salary continuance plans, split dollar insurance plans, executive bonus plans, retiree medical benefit plans and others. The tax consequences of such plans may vary depending on the particular facts and circumstances of each individual arrangement. If you are contemplating the use of a Policy in any of these arrangements, you should consult a qualified tax advisor regarding the tax attributes of the particular arrangement. We no longer sell life insurance contracts to corporate and self-employed tax-qualified retirement pension and profit sharing plans subject to Section 401.
Employer Owned Life Insurance (a.k.a. “COLI”). The Pension Reform Act, enacted in 2006, includes provisions affecting the taxation of Death Benefits paid from policies owned by “Employers.” Although these policies are commonly referred to as Corporate Owned Life Insurance (“COLI”), the term “Employer” includes any person or non-natural entity such as a partnership, LLC, or corporation, which is engaged in a trade or business. The term Employer also includes a person or entity related to the policyholder under the attribution rules of Tax Code sections 267(b) or 707(b)(1), and any person or entity engaged in a trade or business which is under common control with the policyholder.
Generally for contracts issued to employers after August 17, 2008, the portion of the Death Benefit in excess of the premiums or other amounts the employer paid for the policy will be treated as income unless:
•
the insured was an employee within 12 months of death;
•
proceeds are paid to the insured's beneficiary;
•
proceeds are used to buy back any equity interest owned by the insured at the time of death; or
•
the insured was a “highly compensated employee” or “highly compensated individual.”
For purposes of the COLI rules, “highly compensated employees” are:
•
more than 5% owners;
•
directors; and
•
anyone else in the top 35% of employees ranked by pay.
“Highly compensated individuals” are individuals who are:
•
more than 10% owners;
•
one of the five highest paid officers; or
•
among the highest paid 35% of all employees.
The new COLI provision also includes notice and consent requirements, and reporting requirements.
Modified Endowment Contracts. A life insurance policy is treated as a “Modified Endowment Contract” under Section 7702A of the Tax Code if it meets the definition of life insurance in Section 7702, but fails the “seven-pay” test of Section 7702A. The seven-pay test limits the amount of premiums that can be paid into the contract before the Policy will become a Modified Endowment Contract. We will not accept any Premiums that cause the Policy to become a Modified Endowment Contract unless we receive from you a written acknowledgment that the Policy will become a Modified Endowment Contract. An exchange under Section 1035 of the Tax Code of a life insurance policy that is not a Modified Endowment Contract will not cause the new policy to be a Modified Endowment Contract if no additional premiums are paid. An exchange under Section 1035 of the Code of a life insurance policy that is a Modified Endowment Contract for a new life insurance policy will always cause the new policy to be a Modified Endowment Contract.
If your Policy is not issued as a Modified Endowment Contract, it can become a Modified Endowment Contract under certain circumstances. If your Policy is materially changed at any time, your policy must be tested to determine whether it has become a Modified Endowment Contract. A material change includes certain increases in the policy’s death benefit and the addition or increase of certain riders, rate class changes, and certain changes to Death Benefit Options. Your Policy will be treated as though it were a new contract on the day the material change takes effect, a new seven-pay limit will be calculated, and a new seven-pay period will begin. Additionally, if the benefits provided by your Policy are reduced or certain changes to Death Benefit Options occur during the first 7 years of the policy or during a “seven-pay period”, the seven-pay test will be applied as though the policy were initially issued with the reduced benefits. If the cumulative premiums paid into the Policy prior to the reduction in benefits are in excess of the seven-pay limit for the reduced benefit, then your policy will become a Modified Endowment Contract.

36 PROSPECTUS


If a contract is classified as a Modified Endowment Contract, the Death Benefit will still qualify for the exclusion from gross income, and increases in Policy value are not subject to current taxation unless withdrawn or otherwise accessed. If you receive any amount as a Policy loan (including unpaid interest that is added to the loan balance) from a Modified Endowment Contract, or assign or pledge any part of the value of the Policy, such amount is treated as a distribution. Withdrawals and distributions made from a Modified Endowment Contract before the Insured’s death are treated as taxable income first, then as recovery of the investment in the contract. The taxable portion of any distribution from a Modified Endowment Contract is subject to an additional 10% penalty tax, except as follows:
•
distributions made on or after the date on which the taxpayer attains age 59½;
•
distributions attributable to the taxpayer’s becoming disabled (within the meaning of Section 72(m)(7) of the Tax Code); or
•
any distribution that is part of a series of substantially equal periodic payments (paid not less frequently than annually) made for the life (or life expectancy) of the taxpayer or the joint lives (or joint life expectancies) of such taxpayer and his or her beneficiary.
All Modified Endowment Contracts that are issued within any calendar year to the same owner by one company or its affiliates shall be treated as one Modified Endowment Contract in determining the taxable portion of any distributions from any of the contracts required to be aggregated.
Income Tax Withholding. Generally, Allstate New York is required to withhold federal income tax at a rate of 10% from taxable distributions. The customer may elect out of withholding by completing and signing a withholding election form. If no election is made, we will automatically withhold the required 10% of the taxable amount. In certain states, if there is federal withholding, then state withholding is also mandatory. Election out of withholding is valid only if the customer provides a U.S. residence address and taxpayer identification number.
Generally, code Section 1441 provides that Allstate New York, as a withholding agent, must withhold 30% of the taxable amounts paid to a non-resident alien not subject to FATCA. Certain payees may be subject to the Foreign Accounts Tax Compliance Act (FATCA) which would require 30% mandatory withholding for certain entities. Please see your personal tax advisor for additional information regarding FATCA. A non-resident alien is someone other than a U.S. citizen or resident alien. We require an original IRS Form W-8 to certify the owners’ foreign status. Withholding on taxable distributions may be reduced or eliminated if covered by an income tax treaty between the U.S. and the non-resident alien’s country of residence. The U.S. does not have a tax treaty with all countries nor do all tax treaties provide an exclusion or lower withholding rate for taxable life insurance distributions.
Diversification Requirements. For a Policy to qualify as a variable life insurance policy for federal tax purposes, the investments in the Separate Account must be “adequately diversified” consistent with standards under Treasury Department regulations. If the investments in the Separate Account are not adequately diversified, the Policy will not be treated as a variable life insurance policy for federal income tax purposes. As a result, you will be taxed on the excess of the Policy Value over the investment in the contract. Although Allstate New York does not have control over the Portfolios or their investments, we expect the Portfolios to meet the diversification requirements.
Ownership Treatment. The IRS has stated that you will be considered the owner of Separate Account assets if you possess incidents of ownership in those assets, such as the ability to exercise investment control over the assets. At the time the diversification regulations were issued, the Treasury Department announced that the regulations do not provide guidance concerning circumstances in which investor control of the Separate Account investments may cause a policy owner to be treated as the owner of the Separate Account. The Treasury Department also stated that future guidance would be issued regarding the extent that owners could direct Subaccount investments without being treated as owners of the underlying assets of the Separate Account.
Your rights under the Policy are different than those described by the IRS in private and public rulings in which it found that policy owners were not owners of separate account assets. For example, if your Policy offers more than twenty (20) investment alternatives you have the choice to allocate premiums and policy values among a broader selection of investment alternatives than described in such rulings. You may be able to transfer among investment alternatives more frequently than in such rulings. These differences could result in your being treated as the owner of the Separate Account. If this occurs, income and gain from the Separate Account assets would be includible in your gross income. Allstate New York does not know what standards will be set forth in any regulations or rulings which the Treasury Department may issue. It is possible that future standards announced by the Treasury Department could adversely affect the tax treatment of your Policy. We reserve the right to modify the Policy as necessary to attempt to prevent you from being considered the federal tax owner of the assets of the Separate Account. However, we make no guarantee that such modification to the Policy will be successful.
Other Tax Considerations. The transfer of the Policy or designation of a beneficiary may have federal, state, and/or local transfer and inheritance tax consequences, including the imposition of gift, estate, and generation-skipping transfer taxes. For example, the transfer of the Policy to, or the designation as a beneficiary of, or the payment of proceeds to, a person who is assigned to a generation which is two or more generations below the generation assignment of the owner may have generation skipping transfer tax consequences under federal tax law. The individual situation of each Policy owner or beneficiary will determine the extent,

37 PROSPECTUS


if any, to which federal, state, and local transfer and inheritance taxes may be imposed and how ownership or receipt of Policy proceeds will be treated for purposes of federal, state and local estate, inheritance, generation skipping and other taxes.
Under certain circumstances, the Tax Code may impose a generation-skipping transfer (“GST”) tax when all or part of an annuity contract is transferred to, or a death benefit is paid to, an individual two or more generations younger than the Owner. Regulations issued under the Tax Code may require us to deduct the tax from your Policy, or from any applicable payment, and pay it directly to the IRS.
The potential application of these taxes underscores the importance of seeking guidance from a qualified advisor to help ensure that your estate plan adequately addresses your needs and those of your beneficiaries under all possible scenarios.
Reportable Policy Sale. The Tax Cuts and Jobs Act of 2017 included additional reporting requirements for any reportable policy sale occurring after December 31, 2017. A Reportable Policy Sale occurs when a person (buyer) acquires, directly or indirectly, a life insurance contract or any interest in such a contract with no substantial family, business, or financial relationship with the insured. The buyer is required to provide us with information related to the reportable policy sale to ensure proper reporting. The Tax Cuts and Jobs Act of 2017 also modified the transfer for value rules. The potential application of these requirements underscores the importance of seeking guidance from a qualified advisor before entering into a reportable policy sale.
Medicare Tax on Investment Income. Beginning in 2013, the 3.8% Medicare tax on investment income applies to individuals whose income exceeds certain threshold amounts. You should consult a tax advisor about the impact of this tax on distributions from the Policy.
Distribution
Allstate Distributors, L.L.C. (“ADLLC”), located at 3075 Sanders Road, Northbrook, IL 60062-7127, serves as distributor of the Policies. ADLLC, an affiliate of Allstate New York, is a wholly owned subsidiary of Allstate Life Insurance Company. ADLLC is registered as a broker-dealer under the Securities Exchange Act of 1934, as amended, and is a member of the Financial Industry Regulatory Authority (“FINRA”).
ADLLC does not sell Policies directly to purchasers. ADLLC enters into selling agreements with affiliated and unaffiliated broker-dealers and banks to sell the Policies through their registered representatives. The broker-dealers are registered with the SEC and are FINRA member firms. Their registered representatives are licensed as insurance agents by applicable state insurance authorities and appointed as agents of Allstate New York in order to sell the Policies. Policies also may be sold by representatives or employees of banks that may be acting as broker-dealers without separate registration under the Exchange Act, pursuant to legal and regulatory exceptions.
We will pay commissions to broker-dealers and banks that sell the Policies. Commissions paid vary, but we may pay up to a maximum sales commission of approximately 99% of all Premiums plus 27% of any additional Premiums in the second year, plus 5% of any additional Premiums in Years 3-5, plus 2% of any additional Premiums thereafter. In addition, we may pay a trail commission of up to 0.60% of Policy Value on Policies that have been in force for at least one year. In addition, certain bonuses and managerial compensation may be paid. We pay all such commissions and incentives.
Commissions payable to sales representatives for the sale of the Policy are calculated based on the total Premium payments. If you purchase a Primary Insured Rider, the commissions will vary depending on the allocation of your coverage between the base Policy and the Primary Insured Rider. The same initial Death Benefit will result in the highest commission when there is no Primary Insured Rider, with the commission declining as the portion of the Death Benefit coverage allocated to the Primary Insured Rider increases. Thus, the lowest commission amount is payable when the maximum Primary Insured Rider is purchased.
From time to time, we pay asset-based compensation and/or marketing allowances to banks and broker-dealers. These payments vary among individual banks and broker dealers, and the asset-based payments may be up to 0.25% of Policy Value annually. These payments are intended to contribute to the promotion and marketing of the Policies, and they vary among banks and broker-dealers. The marketing and distribution support services include but are not limited to: (1) placement of the Policies on a list of preferred or recommended products in the bank’s or broker-dealer’s distribution system; (2) sales promotions with regard to the Policies; (3) participation in sales conferences; and (4) helping to defray the costs of sales conferences and educational seminars for the bank or broker-dealer’s registered representatives. A list of broker-dealers and banks that ADLLC paid pursuant to such arrangements is provided in the SAI, which is available upon request. For a free copy, please write or call us at the address or telephone number listed on the front page of this prospectus, or go to the SEC’s Web site (http:// www.sec.gov).
To the extent permitted by FINRA rules and other applicable laws and regulations, we may pay or allow other promotional incentives or payments in the form of cash or non-cash compensation. We may not offer the arrangements to all broker-dealers and banks and the terms of the arrangement may differ among broker-dealers and banks.
Individual registered representatives, broker-dealers, banks, and branch managers within some broker-dealers and banks participating in one of these compensation arrangements may receive greater compensation for selling the contract than for selling

38 PROSPECTUS


a different contract that is not eligible for the compensation arrangement. While we take the compensation into account when establishing contract charges, any such compensation will be paid by us or ADLLC and will not result in any additional charge to you. Your registered representative can provide you with more information about the compensation arrangements that apply to the sale of the contract.
Allstate New York does not pay ADLLC a commission for distribution of the Policies. ADLLC compensates its representatives who act as wholesalers, and their sales management personnel, for Policy sales. This compensation is based on a percentage of premium payments and/or a percentage of Policy values. The underwriting agreement with ADLLC provides that we will reimburse ADLLC for expenses incurred in distributing the Policies, including any liability to Policy Owners arising out of services rendered or Policies issued.
Legal Proceedings
There are no pending material legal proceedings to which the Separate Account or principal underwriter is a party. Allstate New York is engaged in routine lawsuits, which, in our management’s judgment, are not of material importance to its respective total assets or material with respect to the Separate Account.
Legal Matters
All matters of New York law pertaining to the Policy, including the validity of the Policy and our right to issue the Policy under New York law, have been passed upon by Angela K. Fontana, Vice President, General Counsel and Secretary of Allstate New York.
Financial Statements
The statements of net assets of each of the individual Sub-Accounts, which comprise the Separate Account, as of December 31, 2017, and the related statements of operations for the year or period then ended and the statements of changes in net assets for each of the periods in the two year period then ended, the financial statements of Allstate Life Insurance Company of New York as of December 31, 2017 and 2016 , and for each of the three years in the period ended December 31, 2017 , and the related financial statement schedules of Allstate Life Insurance Company of New York and the accompanying Reports of Independent Registered Public Accounting Firm appear in the Statement of Additional Information.
Cyber Security Risks
We are at risk for cyber security failures or breaches of our information and processing systems and the systems of our business partners that could have negative impacts on you.   These impacts include, but are not limited to, potential financial losses under your Policy, your inability to conduct transactions under your Policy, our inability to calculate your Policy’s values, and the disclosure of your personal or confidential information. For more information about these cyber security risks, see the SAI.


39 PROSPECTUS


Illustration of Policy Values, Death Benefits, and Net Surrender Values
The following tables illustrate how the Policy Values, Net Surrender Values and Death Benefits of a Policy change with the investment experience of the Portfolios. The tables show how the Policy Values, Net Surrender Values and Death Benefits issued to an Insured of a given age and underwriting risk classification who pays the specified annual Premium would vary over time if the investment return on the assets held in the underlying Portfolio(s) was a uniform, gross, after-tax annual rate of 0%, 6% or 12%. The tables on pages 41-42 illustrate a Policy issued to a male, age 45, $120,000 Face Amount, under a standard nonsmoker risk classification and Death Benefit Option 1.
The illustrations assume an annual payment of $2,167.00. The Safety Net Premium (see Safety Net Premium, page 13) for the illustrated Policy is $1,136.40. Payment of the Safety Net Premium or more each year would guarantee Death Benefit coverage for ten years, regardless of investment performance, assuming no loans or withdrawals are taken.
The illustration on page 41 assumes current charges and cost of insurance rates, while the illustration on page 42 assumes maximum guaranteed charges and cost of insurance rates (based on the 2001 Commissioners Standard Ordinary Mortality Table).
The amounts shown for the Death Benefit, Policy Value and Net Surrender Value reflect the fact that the net investment return of the Sub-Accounts is lower than the gross, after-tax return on the assets held in the Portfolios and charges levied against the Sub-Accounts. The values shown take into account the arithmetic average of total annual operating expenses (expenses that are deducted from Portfolio assets, which may include management fees, distribution and/or service (12b-1) fees, and other expenses) of 0.76%. Portfolio fees and expenses used in the illustrations do not reflect any expense reimbursement or fee waivers, which are terminable by the Portfolios and/or their investment advisors as described in the Prospectus under Fee Table and in the Prospectuses for the Portfolios. Also reflected is our monthly charge to the Policy Value for assuming mortality and expense risks. The current charge for the first ten Policy Years is an annual rate of 0.70% of the average net assets of the Sub-Accounts, and a charge of 0.30% of average daily net assets thereafter. The illustrations also reflect the deduction from Premiums for a premium expense charge of 5.25%, the monthly policy fee of $15.00, and the monthly administrative expense fee of $9.60. The monthly policy fee is guaranteed not to exceed $15.00 per month. The amount of the administrative expense fee will vary with Policy Face Amount. After deduction of average fund expenses, the illustrated gross annual investment rates of return of 0%, 6%, and 12%, “Assuming Current Costs” correspond to approximate net annual rates of -0.76%, 5.24%, and 11.24%, respectively. The illustrated gross annual investment rates of return of 0%, 6%, and 12%, “Assuming Guaranteed Costs” correspond to approximate net annual rates of return of -0.76%, 5.24%, and 11.24%, respectively.
The hypothetical values shown in the tables do not reflect any charges for Federal income taxes against the Separate Account, since we are not currently making this charge. However, this charge may be made in the future and, in that event, the gross annual investment rate of return would have to exceed 0%, 6%, and 12% by an amount sufficient to cover the tax charge in order to produce the Death Benefits, Policy Values, and Net Surrender Values illustrated (see “Federal Taxes,” page 35.)
The tables illustrate the Policy Values, Net Surrender Values and Death Benefits that would result based upon the hypothetical investment rates of return if Premiums are paid as indicated, if all net Premiums are allocated to the Separate Account, and if no Policy loans are taken. The tables also assume that you have not requested an increase or decrease in the Face Amount of the Policy and that no partial surrenders or transfers have been made.
Upon request, we will provide a comparable illustration based upon the proposed Insured’s actual age, sex and underwriting classification, the Face Amount, Death Benefit option, the proposed amount and frequency of Premiums paid and any available riders requested.

40 PROSPECTUS


ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
HYPOTHETICAL ILLUSTRATIONS
Male Issue Age 45
Face Amount $120,000
Standard Nonsmoker Class
$2,167 Annual Premium
Death Benefit Option: 1
Current Cost of Insurance Rates
Death Benefit
Assuming Hypothetical Gross and Net Annual Investment Return of
Policy Year
0% Gross
-.76% Net
6% Gross
5.24% Net
12% Gross
11.24% Net
1
120,000
120,000
120,000
2
120,000
120,000
120,000
3
120,000
120,000
120,000
4
120,000
120,000
120,000
5
120,000
120,000
120,000
6
120,000
120,000
120,000
7
120,000
120,000
120,000
8
120,000
120,000
120,000
9
120,000
120,000
120,000
10
120,000
120,000
120,000
15
120,000
120,000
120,000
20 (Age 65)
120,000
120,000
124,447
30 (Age 75)
120,000
120,000
337,591
40 (Age 85)
**
175,875
949,098
55 (Age 100)
**
374,296
4,192,021
Policy Value
Assuming Hypothetical Gross and
Net Annual Investment Return of
Surrender Value
Assuming Hypothetical Gross and
Net Annual Investment Return of
Policy Year
0% Gross
-.76% Net
6% Gross
5.24% Net
12% Gross
11.24% Net
Policy Year
0% Gross
-.76% Net
6% Gross
5.24% Net
12% Gross
11.24% Net
1
1,441
1,549
1,653
1
0
0
0
2
2,842
3,144
3,455
2
500
803
1,114
3
4,204
4,793
5,429
3
2,014
2,603
3,238
4
5,534
6,505
7,597
4
3,470
4,440
5,533
5
6,828
8,277
9,978
5
4,889
6,338
8,039
6
8,089
10,118
12,598
6
6,302
8,330
10,811
7
9,323
12,034
15,489
7
7,837
10,548
14,004
8
10,525
14,026
18,676
8
9,367
12,867
17,518
9
11,706
16,106
22,201
9
10,900
15,300
21,395
10
12,854
18,270
26,091
10
12,401
17,816
25,638
15
18,828
31,535
54,234
15
18,828
31,535
54,234
20 (Age 65)
23,419
47,725
102,006
20 (Age 65)
23,419
47,725
102,006
30 (Age 75)
23,273
91,620
315,505
30 (Age 75)
23,273
91,620
315,505
40 (Age 85)
**
167,500
903,903
40 (Age 85)
**
167,500
903,903
55 (Age 100)
**
370,590
4,150,515
55 (Age 100)
**
370,590
4,150,515
Assumes the Premium shown is paid at the beginning of each Policy Year. Values would differ if Premiums are paid with a different frequency or in different amounts. Assumes that no Policy loans or withdrawals have been made. An ** indicates lapse in the absence of additional Premium.
The hypothetical investment rates of return show above and elsewhere in the SAI and the Prospectus are illustrative only and should not be deemed a representation of past or future investment rates of return. Actual investment rates of return may be more less than those shown and will depend on a number of factors, including the investment allocations by the Policy Owner and the Portfolios’ rates of return. The Death Benefit, Policy Value and Surrender Value for the Policy would differ from those shown if the actual investment rates of return averaged the rates shown above over a period of years but fluctuated above or below those averages for individual Policy Years. No representation can be made by Allstate New York or any Portfolio that this assumed investment rate of return can be achieved for any one year or sustained over a period of time.

41 PROSPECTUS


ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
HYPOTHETICAL ILLUSTRATIONS
Male Issue Age 45
Face Amount $120,000
Standard Nonsmoker Class
$2,167 Annual Premium
Death Benefit Option: 1
Guaranteed Cost of Insurance Rates
Death Benefit
Assuming Hypothetical Gross and Net Annual Investment Return of
Policy Year
0% Gross
-.76% Net
6% Gross
5.24% Net
12% Gross
11.24% Net
1
120,000
120,000
120,000
2
120,000
120,000
120,000
3
120,000
120,000
120,000
4
120,000
120,000
120,000
5
120,000
120,000
120,000
6
120,000
120,000
120,000
7
120,000
120,000
120,000
8
120,000
120,000
120,000
9
120,000
120,000
120,000
10
120,000
120,000
120,000
15
120,000
120,000
120,000
20 (Age 65)
120,000
120,000
120,000
30 (Age 75)
120,000
120,000
321,070
40 (Age 85)
**
139,728
895,020
55 (Age 100)
**
298,721
3,857,668
Policy Value
Assuming Hypothetical Gross and
Net Annual Investment Return of
Surrender Value
Assuming Hypothetical Gross and
Net Annual Investment Return of
Policy Year
0% Gross
-.76% Net
6% Gross
5.24% Net
12% Gross
11.24% Net
Policy Year
0% Gross
-.76% Net
6% Gross
5.24% Net
12% Gross
11.24% Net
1
1,441
1,549
1,653
1
0
0
0
2
2,842
3,144
3,455
2
500
803
1,114
3
4,204
4,793
5,429
3
2,014
2,603
3,238
4
5,534
6,505
7,597
4
3,470
4,440
5,533
5
6,828
8,277
9,978
5
4,889
6,338
8,039
6
8,079
10,107
12,587
6
6,291
8,319
10,800
7
9,281
11,990
15,445
7
7,795
10,505
13,960
8
10,428
13,924
18,572
8
9,270
12,766
17,414
9
11,515
15,906
21,993
9
10,709
15,100
21,188
10
12,531
17,927
25,733
10
12,078
17,474
25,280
15
17,365
29,891
52,459
15
17,365
29,891
52,459
20 (Age 65)
19,744
43,437
97,540
20 (Age 65)
19,744
43,437
97,540
30 (Age 75)
10,625
76,674
300,065
30 (Age 75)
10,625
76,674
300,065
40 (Age 85)
**
133,075
854,400
40 (Age 85)
**
133,075
852,400
55 (Age 100)
**
295,763
3,819,474
55 (Age 100)
**
297,763
3,819,474
Assumes the Premium shown is paid at the beginning of each Policy Year. Values would differ if Premiums are paid with a different frequency or in different amounts.
Assumes that no Policy loans or withdrawals have been made. An ** indicates lapse in the absence of additional Premium.
The hypothetical investment rates of return show above and elsewhere in the SAI and the Prospectus are illustrative only and should not be deemed a representation of past or future investment rates of return. Actual investment rates of return may be more less than those shown and will depend on a number of factors, including the investment allocations by the Policy Owner and the Portfolios’ rates of return. The Death Benefit, Policy Value and Surrender Value for the Policy would differ from those shown if the actual investment rates of return averaged the rates shown above over a period of years but fluctuated above or below those averages for individual Policy Years. No representation can be made by Allstate New York or any Portfolio that this assumed investment rate of return can be achieved for any one year or sustained over a period of time.

42 PROSPECTUS


Glossary of Special Terms
Please refer to this list for the meaning of the following terms:
Accumulation Unit - An accounting unit of measurement, which we use to calculate the value of a Sub-Account.
Age - The Insured’s age at his or her last birthday.
Attained Age - The Insured’s age at the last Policy Anniversary.
Beneficiary(ies) - The person(s) named by you to receive the Death Benefit under the Policy. You name the original Beneficiary(ies) and Contingent Beneficiary(ies) in the application for the Policy. You may change the Beneficiary or Contingent Beneficiary at any time, except irrevocable Beneficiaries may not be changed without their consent.
Company - Allstate Life Insurance Company of New York, sometimes referred to as “Allstate New York.”
Death Benefit - The amount payable to the Beneficiary under the Policy upon the death of the Insured, before payment of any unpaid Policy Debt or Policy Charges.
Face Amount - The initial amount of insurance under your Policy, adjusted for any changes in accordance with the terms of your Policy.
Fixed Account - The portion of the Policy Value allocated to our general account.
Grace Period - A 61-day period during which the Policy remains in force so as to permit you to pay sufficient additional Premium to keep the Policy from lapsing.
Insured - The person whose life is covered by your Policy.
Issue Date - The date on which the Policy is issued, which shall be used to determine Policy Anniversaries, Policy Years and Policy Months.
Loan Account - An account established for amounts transferred from the Sub-Accounts and the Fixed Account as security for outstanding Policy loans.
Maturity Date - The Policy does not have a Maturity Date.
Monthly Activity Day - The same day in each month as the Issue Date. If a month does not have that day, the deduction will be made as of the last day of the month. The day of the month on which Monthly Deductions are taken from your Policy Value.
Monthly Automatic Payment - A method of paying a Premium each month automatically, for example by bank draft or salary deduction.
Monthly Deduction - The amount deducted from Policy Value on each Monthly Activity Day for the policy fee, mortality and expense risk charge, administrative expense charge, cost of insurance charge, and the cost of any benefit riders.
Net Death Benefit - The Death Benefit, less any Policy Debt.
Net Investment Factor - An index applied to measure the net investment performance of a sub-account from one valuation date to the next. It is used to determine the policy value of a sub-account in any valuation period.
Net Policy Value - The Policy Value, less any Policy Debt.
Net Premium - The Premium less the Premium Expense Charge.
Net Surrender Value - The amount you would receive upon surrender of this policy, equal to the Surrender Value less any Policy Debt.
Policy Anniversary - The same day and month as the Issue Date for each subsequent year the Policy remains in force.
Policy Debt - The sum of all unpaid Policy loans and accrued loan interest.
Policy Month - A one month period beginning on the same day of the month as the issue date of the policy.
Policy Owner (“You” “Your”) - The person(s) having the rights of ownership defined in the Policy. The Policy Owner may or may not be the same person as the Insured. If your Policy is issued pursuant to a retirement plan, your ownership rights may be modified by the plan.
Policy Value - The sum of the values of your interests in the Sub-Accounts of the Separate Account, the Fixed Account and the Loan Account. The amount from which the Monthly Deductions are made and the Death Benefit is determined.
Policy Year - Each twelve-month period beginning on the Issue Date and each Policy Anniversary.

43 PROSPECTUS


Portfolio(s) - The underlying funds in which the Sub-Accounts invest. Each Portfolio is an investment company registered with the SEC or a separate investment series of a registered investment company.
Premium - Amounts paid to us as premium for the Policy by you or on your behalf.
SAI - Statement of Additional Information, which is attached to and incorporated by reference in this Prospectus.
Safety Net Premium - A feature under which we guarantee that, regardless of declines in your Policy Value, your Policy does not enter the Grace Period if your total Premiums paid since the Issue Date, less any partial withdrawals and outstanding Policy loans made by you, are at least as great as the monthly Safety Net Premium amount times the number of months since the Issue Date.
Separate Account - The Allstate Life of New York Variable Life Separate Account A, which is a segregated investment account of Allstate New York.
Sub-Account - A subdivision of the Separate Account, which invests wholly in shares of one of the Portfolios.
Surrender Value - The Policy Value less any applicable surrender charges.
Tax Code - The Internal Revenue Code of 1986, as amended.
Valuation Date - Each day the New York Stock Exchange is open for business. We do not determine Accumulation Unit Value on days on which the New York Stock Exchange is closed for trading.
Valuation Period - The period of time over which we determine the change in the value of the Sub-Accounts in order to price Accumulation Units. Each Valuation Period begins at the close of normal trading on the New York Stock Exchange, currently 4:00 p.m. Eastern time, on each Valuation Date and ends at the close of the NYSE on the next Valuation Date.
We, Us, Our - Our company, Allstate Life Insurance Company of New York, sometimes referred to as “Allstate New York.”
You, Your - The person having the rights and privileges of ownership in the Policy.
Where You Can Find More Information
You can call us at 1-800-268-5619 to ask us questions, to request information about the Policy, and to obtain copies of the SAI, personalized illustrations or other documents. You also can write to us at the address given on the first page of this Prospectus.
We have filed an SAI with the SEC. The current SAI is dated May 1, 2018. The SAI contains additional information about the Policy and is incorporated by reference in this Prospectus. You can obtain a free copy of the SAI upon request, by writing us or calling at the number given above. You should read the SAI because you are bound by the terms contained in it.
We file reports and other information with the SEC. You may read and copy any document we file with the SEC, including the SAI, at the SEC’s public reference room in Washington, DC 20549. Please call the SEC at 1-800-SEC-0330 for information on the operation of the public reference room.
Our SEC reports and other information about us are also available to the public at the SEC’s web site at http://www.sec.gov. Copies of any of the information filed with the SEC may be obtained upon payment of a duplicating fee by writing the SEC’s Public Reference Section, 100 F Street NE, Room 1580, Washington, DC 20549-2000.
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
through its Allstate Life of New York Variable Life Separate Account A
1940 Act File No. 811-21250
1933 Act File No. 333-148225


44 PROSPECTUS









































FIN1250NY-10

 
STATEMENT OF ADDITIONAL INFORMATION
TOTALACCUMULATOR FLEXIBLE PREMIUM
VARIABLE ADJUSTABLE LIFE INSURANCE POLICIES

DATE OF STATEMENT OF ADDITIONAL INFORMATION:
May 1, 2018

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
DEPOSITOR: ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK

This Statement of Additional Information is not a prospectus. Please review
the Prospectus, which contains information concerning the Policies described
above. You may obtain a copy of the Prospectus without charge by calling us at
1-800-865-5237 or writing to us at the address immediately below. The defined
terms used in this Statement of Additional Information are as defined in the
Prospectus.

Allstate Life Insurance Company of New York
P.O. Box 660191
Dallas, Texas 75266-0191


The Date of this Statement of Additional Information
and of the related Prospectus is May 1, 2018






GENERAL INFORMATION AND HISTORY
Description Of Allstate Life Insurance Company of New York. Allstate Life Insurance Company of New York ("ALLSTATE NEW YORK") is the issuer of the Policy. Allstate New York is a stock life insurance company organized under the laws of the State of New York. Allstate New York was incorporated in 1967 and was known as "Financial Life Insurance Company" from 1967 to 1978. From 1978 to 1984, Allstate New York was known as "PM Life Insurance Company." Since 1984 the company has been known as "Allstate Life Insurance Company of New York".
Allstate New York is currently licensed to operate in New York and several other jurisdictions. We intend to offer the Policy only in New York. Our headquarters is located at 878 Veteran's Memorial Highway, Suite 400, Hauppauge, NY 11788-5107. Our service center is located in Lincoln, Nebraska (mailing address: on the first page of the prospectus).
Allstate New York is a wholly owned subsidiary of Allstate Life Insurance Company ("ALLSTATE LIFE"), a stock life insurance company incorporated under the laws of the State of Illinois. Allstate Life is a wholly owned subsidiary of Allstate Insurance Company, a stock property-liability insurance company incorporated under the laws of Illinois. With the exception of the directors qualifying shares, all of the outstanding capital stock of Allstate Insurance Company is owned by The Allstate Corporation.
State Regulation of Allstate New York. We are subject to the laws of New York State and regulated by the New York State Insurance Department. Every year we file an annual statement with the Insurance Department covering our operations for the previous year and our financial condition as of the end of the year. We are inspected periodically by the New York State Insurance Department to verify our contract liabilities and reserves. Our books and records are subject to review by the New York State Insurance Department at all times. We are also subject to regulation under the insurance laws of every jurisdiction in which we operate.
Allstate Life of New York Variable Life Separate Account A. Allstate New York established the Allstate Life of New York Variable Life Separate Account A on December 15, 1995. The Separate Account meets the definition of a "Separate Account" under the federal securities laws and is registered with the SEC as a unit investment trust under the Investment Company Act of 1940. The SEC does not supervise the management of the Separate Account or Allstate New York. We are the custodian of the assets of the Allstate Life of New York Variable Life Separate Account A. Our principal place of business address is listed above.
EXPERTS
The financial statements and the related financial statement schedules of Allstate Life Insurance Company of New York and the financial statements of the sub-accounts of Allstate Life of New York Variable Life Separate Account A included in this Statement of Additional Information have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their reports appearing herein. Such financial statements and financial statement schedules are included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing.


ADDITIONAL INFORMATION CONCERNING THE OPERATION OF YOUR POLICY
Replacement of Modified Endowment Contracts. If you replace a modified endowment contract issued by another insurer with a Policy, your Policy will also be a modified endowment contract. Our ability to determine whether a replaced Policy issued by another insurer is a modified endowment contract is based solely on the sufficiency of the Policy data we receive from the other insurer. We do not consider ourselves liable to you if that data is insufficient to accurately determine whether the replaced Policy is a modified endowment contract. You should discuss this issue with your tax adviser if it pertains to your situation. Based on the information provided to us, we will notify you as to whether you can contribute more Premiums to your Policy without causing it to become a modified endowment contract.
Computation of Policy Value. On each Valuation Date, the portion of your Policy Value in a particular Subaccount will equal:
(1)
The total value of your Accumulation Units in the Subaccount; plus
(2)
Any Net Premium received from you and allocated to the Subaccount during the current Valuation Period; plus
(3)
Any Policy Value transferred to the Subaccount during the current Valuation Period; minus
(4)
Any Policy Value transferred from the Subaccount during the current Valuation Period; minus
(5)
Any amounts withdrawn by you (plus the applicable withdrawal charge) from the Subaccount during the current Valuation Period; minus
(6)
The portion of any Monthly Deduction allocated to the Subaccount during the current Valuation Period for the Policy Month following the Monthly Deduction Day.
On each Valuation Date, the portion of your Policy Value in the Fixed Account will equal:
(1)
Any Net Premium allocated to it, plus
(2)
Any Policy Value transferred to it from the Subaccounts; plus
(3)
Interest credited to it; minus
(4)
Any Policy Value transferred out of it; minus
(5)
Any amounts withdrawn by you (plus the applicable withdrawal charge); minus
(6)
The portion of any Monthly Deduction allocated to the Fixed Account.
All Policy Values equal or exceed those required by law. Detailed explanations of methods of calculation are on file with the appropriate regulatory authorities.
Transfers Authorized by Telephone. You may make transfers by telephone. To give a third party authorization, you must first send us a completed authorization form.


The cut off time for telephone transfer requests is 4:00 p.m. Eastern time. Calls completed before 4:00 p.m. will be effected on that day at that day's price. Calls completed after 4:00 p.m. will be effected on the next day that the NYSE and we are open for business, at that day's price.
GENERAL POLICY PROVISIONS
Statements to Policy Owners. We will maintain all records relating to the Separate Account and the Subaccounts. Each year we will send you a report showing information concerning your Policy transactions in the past year and the current status of your Policy. The report will include information such as the Policy Value as of the end of the current and the prior year, the current Death Benefit, Surrender Value, Policy Debt, partial withdrawals, earnings, Premiums paid, and deductions made since the last annual report. We will also include any information required by state law or regulation. If you ask us, we will send you an additional report at any time. We may charge you up to $25 for this extra report. We will tell you the current charge before we send you the report.
In addition, we will send you the reports required by the 1940 Act. We will mail you confirmation notices or other appropriate notices of Policy transactions quarterly or more frequently if required by law. You should therefore give us prompt written notice of any address change. You should read your statements and confirmations carefully and verify their accuracy. You should contact us promptly with any questions.
Limit on Right to Contest. We may not contest the insurance coverage under the Policy after the Policy has been in force for two years while the Insured is alive. If the Policy has lapsed and been reinstated, we may not contest the reinstatement after two years from the date of the reinstatement while the Insured is alive. We may not contest any increase in the Face Amount of the Policy after the increase has been in effect for two years while the Insured is alive.
Suicide. If the Insured commits suicide within two years of the Issue Date or within two years of any increase in the Face Amount, we are not required to pay the full Death Benefit that would otherwise be payable. Instead, we will pay an amount equal to the Policy Value less any Policy Debt and the Policy will stop. If within two years of the effective date of any increase in the Face Amount the Insured commits suicide, we will pay a Death Benefit for the increase equal to the total cost of insurance charges.
Misstatement as to Age and Sex. If the age or sex of the Insured is incorrectly stated in the application, we will adjust the Death Benefit appropriately as specified in the Policy.
DISTRIBUTOR
Allstate Distributors, LLC, ("ADLLC") serves as principal underwriter and distributor of the Policies. ADLLC is a wholly-owned subsidiary of Allstate Life Insurance Company. ADLLC is a registered broker dealer under the Securities and Exchange Act of 1934, as amended ("Exchange Act"), and is a member of FINRA.
Allstate New York does not pay ADLLC a commission for distribution of the Policies. The underwriting agreement with ADLLC provides that we will reimburse ADLLC for expenses incurred in distributing the Policies, including liability arising out of services we provide on the Policies.


 
2015
2016
2017
========================================
=======
=======
=======
========================================
=======
=======
=======
Commission paid to ADLLC that were paid
to other broker-dealers and registered
representatives
0
0
0
Commission kept by ADLLC
0
0
0
Other fees paid to ADLLC for
distribution services
0
0
0
DISTRIBUTION OF THE POLICY
Allstate New York offers the Policies on a continuous basis. The Policies are sold by registered representatives of broker-dealers who are our licensed insurance agents, either individually or through an incorporated insurance agency. Commissions paid vary, but we may pay up to a maximum sales commission of approximately 99% of all Premiums plus 27% of any additional Premiums in the second year, plus 5% of any additional Premiums in Years 3-5, plus 2% of any additional Premiums thereafter. In addition, we may pay a trail commission of up to 0.60% of Policy Value on Policies that have been in force for at least one year. In addition, certain bonuses and managerial compensation may be paid. We pay all such commissions and incentives.
Commissions payable to sales representatives for the sale of the Policy are calculated based on the total Premium payments. If you purchase a Primary Insured Rider, the commissions will vary depending on the allocation of your coverage between the base Policy and the Primary Insured Rider. The same initial Death Benefit will result in the highest commission when there is no Primary Insured Rider, with the commission declining as the portion of the Death Benefit coverage allocated to the Primary Insured Rider increases. Thus, the lowest commission amount is payable when the maximum Primary Insured Rider is purchased.
FINANCIAL STATEMENTS
The statements of net assets of each of the individual Sub-Accounts, which comprise the Separate Account, as of December 31, 2017, and the related statements of operations for the year or period then ended and statements of changes in net assets for each of the periods in the two year period ended December 31, 2017, the financial statements of Allstate Life Insurance Company of New York as of December 31, 2017 and 2016 and for each of the three years in the period ended December 31, 2017, and the related financial statement schedules of Allstate Life Insurance Company of New York and the accompanying Reports of Independent Registered Public Accounting Firm appear in the pages that follow. The financial statements and schedules of Allstate Life Insurance Company of New York included herein should be considered only as bearing upon the ability of Allstate Life Insurance Company of New York to meet its obligations under the Policies.
CYBER SECURITY RISKS
With the increasing use of technology and computer systems in general and, in particular, the Internet to conduct necessary business functions, we are susceptible to operational, information security and related


risks. These risks, which are often collectively referred to as “cyber security” risks, may include deliberate or malicious attacks, as well as unintentional events and occurrences. These risks are heightened by our offering products with certain features, including those with automatic asset transfer or re-allocation strategies, and by our employment of complex investment, trading and hedging programs. Cyber security is generally defined as the technology, operations and related protocol surrounding and protecting a user’s computer hardware, network, systems and applications and the data transmitted and stored therewith. These measures ensure the reliability of a user’s systems, as well as the security, availability, integrity, and confidentiality of data assets.
Deliberate cyber attacks can include, but are not limited to, gaining unauthorized access (including physical break-ins and attempts to fraudulently induce employees, customers or other users of these systems to disclose sensitive information in order to gain access) to computer systems in order to misappropriate and/or disclose sensitive or confidential information; deleting, corrupting or modifying data; and causing operational disruptions. Cyber attacks may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on websites (in order to prevent access to computer networks). In addition to deliberate breaches engineered by external actors, cyber security risks can also result from the conduct of malicious, exploited or careless insiders, whose actions may result in the destruction, release or disclosure of confidential or proprietary information stored on an organization’s systems.
Cyber security failures or breaches that could impact us and our Policy Owners, whether deliberate or unintentional, could arise not only in connection with our own administration of the Policy, but also with entities operating the Policy’s underlying funds and with third-party service providers to us. Cyber security failures originating with any of the entities involved with the offering and administration of the Policy may cause significant disruptions in the business operations related to the Policy. Potential impacts may include, but are not limited to, potential financial losses under the Policy, your inability to conduct transactions under the Policy and/or with respect to an underlying fund, an inability to calculate unit values with respect to the Policy and/or the net asset value (“NAV”) with respect to an underlying fund, and disclosures of your personal or confidential account information.
In addition to direct impacts to you, cyber security failures of the type described above may result in adverse impacts to us, including regulatory inquiries, regulatory proceedings, regulatory and/or legal and litigation costs, and reputational damage. Costs incurred by us may include reimbursement and other expenses, including the costs of litigation and litigation settlements and additional compliance costs. Considerable expenses also may be incurred by us in enhancing and upgrading computer systems and systems security to prevent or following a cyber security failure.
The rapid proliferation of technologies, as well as the increased sophistication and activities of organized crime, hackers, terrorists, hostile foreign governments, and others continue to pose new and significant cyber security threats. Although we, our service providers, and the underlying funds offered under the Policy may have established business continuity plans and risk management systems to mitigate cyber security risks, there can be no guarantee or assurance that such plans or systems will be effective, or that all risks that exist, or may develop in the future, have been completely anticipated and identified or can be protected against.


Furthermore, we cannot control or assure the efficacy of the cyber security plans and systems implemented by third-party service providers, the underlying funds, and the issuers in which the underlying funds invest.


 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholder of
Allstate Life Insurance Company of New York
Hauppauge, New York

Opinion on the Financial Statements
We have audited the accompanying Statements of Financial Position of Allstate Life Insurance Company of New York (the “Company”), an affiliate of The Allstate Corporation, as of December 31, 2017 and 2016, and the related Statements of Operations and Comprehensive Income, Shareholder’s Equity, and Cash Flows for each of the three years in the period ended December 31, 2017 and the related notes (collectively referred to as the “financial statements”). In our opinion, such financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2017 and 2016, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2017, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, Schedule I-Summary of Investments Other Than Investments in Related Parties, Schedule IV-Reinsurance, and Schedule V-Valuation Allowances and Qualifying Accounts, when considered in relation to the basic financial statements taken as a whole, present fairly in all material respects the information set forth therein.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ DELOITTE & TOUCHE LLP

Chicago, Illinois
March 12, 2018

We have served as the Company's auditor since 1995.





ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
($ in thousands)
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Revenues
 
 

 
 

 
 

Premiums (net of reinsurance ceded of $11,481, $11,788, and $12,362)
 
$
90,941

 
$
68,581

 
$
63,218

Contract charges (net of reinsurance ceded of $7,954, $8,019, and $9,049)
 
76,171

 
76,009

 
74,948

Net investment income
 
310,695

 
295,845

 
311,244

Realized capital gains and losses:
 
 
 
 
 
 
Total other-than-temporary impairment (“OTTI”) losses
 
(6,263
)
 
(20,613
)
 
(8,131
)
OTTI losses reclassified to (from) other comprehensive income
 
893

 
4,656

 
342

Net OTTI losses recognized in earnings
 
(5,370
)
 
(15,957
)
 
(7,789
)
Sales and other realized capital gains and losses
 
71,702

 
17,596

 
34,907

Total realized capital gains and losses
 
66,332

 
1,639

 
27,118

 
 
544,139

 
442,074

 
476,528

Costs and expenses
 
 
 
 

 
 
Contract benefits (net of reinsurance ceded of $8,055, $12,024, and $23,918)
 
230,493

 
208,403

 
203,594

Interest credited to contractholder funds (net of reinsurance ceded of $4,805, $4,770, and $4,545)
 
97,377

 
102,761

 
108,637

Amortization of deferred policy acquisition costs
 
16,992

 
16,127

 
16,603

Operating costs and expenses
 
41,829

 
35,374

 
33,357

 
 
386,691

 
362,665

 
362,191

Income from operations before income tax (benefit) expense
 
157,448

 
79,409

 
114,337

Income tax (benefit) expense
 
(46,735
)
 
28,008

 
40,977

Net income
 
204,183

 
51,401

 
73,360

Other comprehensive (loss) income, after-tax
 
 
 
 

 
 
Change in unrealized net capital gains and losses
 
(66,210
)
 
24,554

 
(12,496
)
Change in unrealized foreign currency translation adjustments
 
2,409

 
1,138

 
(1,172
)
Other comprehensive (loss) income, after-tax
 
(63,801
)
 
25,692

 
(13,668
)
Comprehensive income
 
$
140,382

 
$
77,093

 
$
59,692


























2


See notes to financial statements
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF FINANCIAL POSITION
($ in thousands, except par value data) 
 
December 31,
 
 
2017
 
2016
Assets
 
 

 
 

Investments
 
 

 
 

Fixed income securities, at fair value (amortized cost $4,550,008 and $4,534,157)
 
$
4,917,725

 
$
4,872,174

Mortgage loans
 
629,142

 
614,380

Equity securities, at fair value (cost $152,163 and $208,635)
 
194,533

 
218,078

Limited partnership interests
 
363,237

 
330,303

Short-term, at fair value (amortized cost $88,799 and $92,699)
 
88,786

 
92,698

Policy loans
 
39,589

 
40,289

Other
 
3,106

 
2,580

Total investments
 
6,236,118

 
6,170,502

Cash
 
4,863

 
15,755

Deferred policy acquisition costs
 
146,333

 
137,358

Reinsurance recoverable
 
243,644

 
248,073

Accrued investment income
 
52,577

 
52,278

Reinsurance receivable from parent
 
—

 
2,014

Current income taxes receivable
 
—

 
4,787

Other assets
 
196,121

 
133,007

Separate Accounts
 
293,836

 
290,798

Total assets
 
$
7,173,492

 
$
7,054,572

Liabilities
 
 

 
 

Contractholder funds
 
$
2,874,884

 
$
3,018,733

Reserve for life-contingent contract benefits
 
2,348,966

 
2,140,888

Current income taxes payable
 
1,050

 
—

Deferred income taxes
 
153,726

 
247,652

Other liabilities and accrued expenses
 
92,684

 
88,335

Payable to affiliates, net
 
4,944

 
5,280

Reinsurance payable to parent
 
134

 
—

Separate Accounts
 
293,836

 
290,798

Total liabilities
 
5,770,224

 
5,791,686

Commitments and Contingent Liabilities (Note 11)
 
 
 
 
Shareholder’s Equity
 
 

 
 

Common stock, $25 par value, 100 thousand shares authorized, issued and outstanding
 
$
2,500

 
$
2,500

Additional capital paid-in
 
140,529

 
140,529

Retained income
 
1,117,020

 
938,217

Accumulated other comprehensive income:
 
 
 
 
Unrealized net capital gains and losses:
 
 
 
 
Unrealized net capital gains and losses on fixed income securities with OTTI
 
256

 
2,955

Other unrealized net capital gains and losses
 
323,694

 
222,854

Unrealized adjustment to DAC, DSI and insurance reserves
 
(182,805
)
 
(43,467
)
Total unrealized net capital gains and losses
 
141,145

 
182,342

Unrealized foreign currency translation adjustments
 
2,074

 
(702
)
Total accumulated other comprehensive income
 
143,219

 
181,640

Total shareholder’s equity
 
1,403,268

 
1,262,886

Total liabilities and shareholder’s equity
 
$
7,173,492

 
$
7,054,572



3



See notes to financial statements.
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF SHAREHOLDER’S EQUITY
($ in thousands)
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Common stock
 
$
2,500

 
$
2,500

 
$
2,500

Additional capital paid-in
 
140,529

 
140,529

 
140,529

Retained income
 
 
 
 
 
 
Balance, beginning of year
 
938,217

 
886,816

 
813,456

Net income
 
204,183

 
51,401

 
73,360

Reclassification of tax effects due to change in accounting principle
 
(25,380
)
 
—

 
—

Balance, end of year
 
1,117,020

 
938,217

 
886,816

Accumulated other comprehensive income
 
 

 
 

 
 

Balance, beginning of year
 
181,640

 
155,948

 
169,616

Change in unrealized net capital gains and losses
 
(66,210
)
 
24,554

 
(12,496
)
Change in unrealized foreign currency translation adjustments
 
2,409

 
1,138

 
(1,172
)
Reclassification of tax effects due to change in accounting principle
 
25,380

 
—

 
—

Balance, end of year
 
143,219

 
181,640

 
155,948

Total shareholder’s equity
 
$
1,403,268

 
$
1,262,886

 
$
1,185,793







































4



See notes to financial statements.
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF CASH FLOWS
($ in thousands)
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Cash flows from operating activities
 
 

 
 

 
 

Net income
 
$
204,183

 
$
51,401

 
$
73,360

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
Amortization and other non-cash items
 
(30,014
)
 
(30,801
)
 
(34,681
)
Realized capital gains and losses
 
(66,332
)
 
(1,639
)
 
(27,118
)
Interest credited to contractholder funds
 
97,377

 
102,761

 
108,637

Changes in:
 
 
 
 
 
 
Policy benefits and other insurance reserves
 
(17,780
)
 
(35,690
)
 
(39,605
)
Deferred policy acquisition costs
 
(7,530
)
 
(812
)
 
992

Income taxes
 
(53,734
)
 
18,344

 
(12,877
)
Other operating assets and liabilities
 
(28,736
)
 
(32,899
)
 
(23,938
)
Net cash provided by operating activities
 
97,434

 
70,665

 
44,770

Cash flows from investing activities
 
 

 
 

 
 

Proceeds from sales
 
 
 
 
 
 
Fixed income securities
 
192,227

 
388,051

 
623,613

Equity securities
 
125,416

 
72,776

 
1,557

Limited partnership interests
 
77,017

 
52,235

 
41,037

Investment collections
 
 
 
 
 
 
Fixed income securities
 
298,852

 
389,627

 
419,502

Mortgage loans
 
65,183

 
76,008

 
55,218

Investment purchases
 
 
 
 
 
 
Fixed income securities
 
(477,765
)
 
(603,782
)
 
(701,779
)
Equity securities
 
(68,002
)
 
(77,719
)
 
(8,136
)
Limited partnership interests
 
(67,015
)
 
(73,942
)
 
(90,929
)
Mortgage loans
 
(78,783
)
 
(75,979
)
 
(175,218
)
Change in short-term investments, net
 
3,104

 
(22,399
)
 
28,915

Change in policy loans and other investments, net
 
1,440

 
(758
)
 
(678
)
Net cash provided by investing activities
 
71,674

 
124,118

 
193,102

Cash flows from financing activities
 
 

 
 

 
 

Contractholder fund deposits
 
97,287

 
99,341

 
95,437

Contractholder fund withdrawals
 
(274,887
)
 
(294,277
)
 
(347,405
)
Other
 
(2,400
)
 
—

 
—

Net cash used in financing activities
 
(180,000
)
 
(194,936
)
 
(251,968
)
Net decrease in cash
 
(10,892
)
 
(153
)
 
(14,096
)
Cash at beginning of year
 
15,755

 
15,908

 
30,004

Cash at end of year
 
$
4,863

 
$
15,755

 
$
15,908











5



See notes to financial statements.
NOTES TO FINANCIAL STATEMENTS
1. General

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”). AIC is wholly owned by Allstate Insurance Holdings, LLC, a wholly owned subsidiary of The Allstate Corporation (the “Corporation”). These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Nature of operations
The Company offers traditional, interest-sensitive and variable life insurance and voluntary accident and health insurance products to customers in the State of New York. The Company distributes its products through Allstate exclusive agencies and exclusive financial specialists, and workplace enrolling independent agents. The Company previously offered and continues to have in force fixed annuities such as deferred and immediate annuities. The Company also previously offered variable annuities and all of this business is reinsured.

The following table summarizes premiums and contract charges by product.
($ in thousands)
 
2017
 
2016
 
2015
Premiums
 
 
 
 
 
 
Traditional life insurance
 
$
55,996

 
$
52,333

 
$
48,532

Immediate annuities with life contingencies
 
—

 
—

 
5

Accident and health insurance
 
34,945

 
16,248

 
14,681

Total premiums
 
90,941

 
68,581

 
63,218

Contract charges
 
 

 
 

 
 

Interest-sensitive life insurance
 
76,103

 
75,940

 
74,829

Fixed annuities
 
68

 
69

 
119

Total contract charges
 
76,171

 
76,009

 
74,948

Total premiums and contract charges
 
$
167,112

 
$
144,590

 
$
138,166

2. Summary of Significant Accounting Policies

Investments

Fixed income securities include bonds, asset-backed securities (“ABS”), residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and redeemable preferred stocks. Fixed income securities, which may be sold prior to their contractual maturity, are designated as available for sale and are carried at fair value. The difference between amortized cost and fair value, net of deferred income taxes and related deferred policy acquisition costs (“DAC”), deferred sales inducement costs (“DSI”) and reserves for life-contingent contract benefits, is reflected as a component of accumulated other comprehensive income (“AOCI”). Cash received from calls and make-whole payments is reflected as a component of proceeds from sales and cash received from maturities and pay-downs is reflected as a component of investment collections within the Statements of Cash Flows.

Mortgage loans are carried at unpaid principal balances, net of unamortized premium or discount and valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected.

Equity securities primarily include common stocks, exchange traded funds, non-redeemable preferred stocks and real estate investment trust equity investments. Certain exchange traded funds have fixed income securities as their underlying investments. Equity securities are designated as available for sale and are carried at fair value. The difference between cost and fair value, net of deferred income taxes, is reflected as a component of AOCI.

Investments in limited partnership interests include interests in private equity funds, real estate funds, and other funds. Where the Company’s interest is so minor that it exercises virtually no influence over operating and financial policies, investments in

6


limited partnership interests are accounted for in accordance with the cost method of accounting; all other investments in limited partnership interests are accounted for in accordance with the equity method of accounting (“EMA”).

Short-term investments, including commercial paper, U.S. Treasury bills, money market funds and other short-term investments, are carried at fair value. Policy loans are carried at unpaid principal balances. Other investments consist of derivatives. Derivatives are carried at fair value.

Investment income primarily consists of interest, dividends, income from limited partnership interests, and income from certain derivative transactions. Interest is recognized on an accrual basis using the effective yield method and dividends are recorded at the ex-dividend date. Interest income for ABS, RMBS and CMBS is determined considering estimated pay-downs, including prepayments, obtained from third party data sources and internal estimates. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. For ABS, RMBS and CMBS of high credit quality with fixed interest rates, the effective yield is recalculated on a retrospective basis. For all others, the effective yield is recalculated on a prospective basis. Accrual of income is suspended for other-than-temporarily impaired fixed income securities when the timing and amount of cash flows expected to be received is not reasonably estimable. Accrual of income is suspended for mortgage loans that are in default or when full and timely collection of principal and interest payments is not probable. Cash receipts on investments on nonaccrual status are generally recorded as a reduction of carrying value. Income from cost method limited partnership interests is recognized upon receipt of amounts distributed by the partnerships. Income from EMA limited partnership interests is recognized based on the Company’s share of the partnerships’ earnings and unrealized gains and losses resulting from valuation changes of the underlying investments, and is generally recognized on a three month delay due to the availability of the related financial statements.

Realized capital gains and losses include gains and losses on investment sales, write-downs in value due to other-than-temporary declines in fair value, adjustments to valuation allowances on mortgage loans, periodic changes in fair value and settlements of certain derivatives including hedge ineffectiveness and valuation changes in public securities held in certain limited partnerships. Realized capital gains and losses on investment sales are determined on a specific identification basis.

Derivative and embedded derivative financial instruments

Derivative financial instruments include equity futures, options, interest rate caps, foreign currency forwards and a reinvestment related risk transfer reinsurance agreement with ALIC that meets the accounting definition of a derivative (see Note 4). Derivatives required to be separated from the host instrument and accounted for as derivative financial instruments (“subject to bifurcation”) are embedded in equity-indexed life contracts and reinsured variable annuity contracts.

All derivatives are accounted for on a fair value basis and reported as other investments, other assets, other liabilities and accrued expenses or contractholder funds. The income statement effects of derivatives, including fair value gains and losses and accrued periodic settlements, are reported either in realized capital gains and losses or in a single line item together with the results of the associated asset or liability for which risks are being managed. Embedded derivative instruments subject to bifurcation are also accounted for on a fair value basis and are reported together with the host contract. The change in fair value of derivatives embedded in life and annuity product contracts and subject to bifurcation is reported in contract benefits or interest credited to contractholder funds. Cash flows from embedded derivatives subject to bifurcation are reported consistently with the host contracts within the Statements of Cash Flows. Cash flows from other derivatives are reported in cash flows from investing activities within the Statements of Cash Flows.

Securities loaned

The Company’s business activities include securities lending transactions, which are used primarily to generate net investment income. The proceeds received in conjunction with securities lending transactions are reinvested in short-term investments. These transactions are short-term in nature, usually 30 days or less.

The Company receives cash collateral for securities loaned in an amount generally equal to 102% of the fair value of securities and records the related obligations to return the collateral in other liabilities and accrued expenses. The carrying value of these obligations approximates fair value because of their relatively short-term nature. The Company monitors the market value of securities loaned on a daily basis and obtains additional collateral as necessary under the terms of the agreements to mitigate counterparty credit risk. The Company maintains the right and ability to repossess the securities loaned on short notice.


7


Recognition of premium revenues and contract charges, and related benefits and interest credited

Traditional life insurance products consist principally of products with fixed and guaranteed premiums and benefits, primarily term and whole life insurance products. Voluntary accident and health insurance products are expected to remain in force for an extended period and therefore are primarily classified as long-duration contracts. Premiums from these products are recognized as revenue when due from policyholders. Benefits are reflected in contract benefits and recognized over the life of the policy in relation to premiums.

Immediate annuities with life contingencies, including certain structured settlement annuities, provide insurance protection over a period that extends beyond the period during which premiums are collected. Premiums from these products are recognized
as revenue when received at the inception of the contract. Benefits and expenses are recognized in relation to premiums. Profits from these policies come primarily from investment income, which is recognized over the life of the contract.

Interest-sensitive life contracts, such as universal life and single premium life, are insurance contracts whose terms are not fixed and guaranteed. The terms that may be changed include premiums paid by the contractholder, interest credited to the contractholder account balance and contract charges assessed against the contractholder account balance. Premiums from these contracts are reported as contractholder fund deposits. Contract charges consist of fees assessed against the contractholder account balance for the cost of insurance (mortality risk), contract administration and surrender of the contract prior to contractually specified dates. These contract charges are recognized as revenue when assessed against the contractholder account balance. Contract benefits include life-contingent benefit payments in excess of the contractholder account balance.

Contracts that do not subject the Company to significant risk arising from mortality or morbidity are referred to as investment contracts. Fixed annuities, including market value adjusted annuities and immediate annuities without life contingencies, are considered investment contracts. Consideration received for such contracts is reported as contractholder fund deposits. Contract charges for investment contracts consist of fees assessed against the contractholder account balance for maintenance, administration and surrender of the contract prior to contractually specified dates, and are recognized when assessed against the contractholder account balance.

Interest credited to contractholder funds represents interest accrued or paid on interest-sensitive life and investment contracts. Crediting rates for certain fixed annuities and interest-sensitive life contracts are adjusted periodically by the Company to reflect current market conditions subject to contractually guaranteed minimum rates. Crediting rates for indexed life contracts are generally based on an equity index, such as the Standard & Poor’s 500 Index (“S&P 500”). Interest credited also includes amortization of DSI expenses. DSI is amortized into interest credited using the same method used to amortize DAC.

Contract charges for variable life and variable annuity products consist of fees assessed against the contractholder account balances for contract maintenance, administration, mortality, expense and surrender of the contract prior to contractually specified dates. Contract benefits incurred for variable annuity products include guaranteed minimum death, income, withdrawal and accumulation benefits. All of the Company’s variable annuity business is ceded through reinsurance agreements and the contract charges and contract benefits related thereto are reported net of reinsurance ceded.

Deferred policy acquisition and sales inducement costs

Costs that are related directly to the successful acquisition of new or renewal life insurance policies are deferred and recorded as DAC. These costs are principally agents’ and brokers’ remuneration and certain underwriting expenses. DSI costs, which are deferred and recorded as other assets, relate to sales inducements offered on sales to new customers, principally on interest-sensitive life contracts. These sales inducements are primarily in the form of additional credits to the customer’s account balance or enhancements to interest credited for a specified period which are in excess of the rates currently being credited to similar contracts without sales inducements. All other acquisition costs are expensed as incurred and included in operating costs and expenses. Amortization of DAC is included in amortization of deferred policy acquisition costs and is described in more detail below. DSI is amortized into income using the same methodology and assumptions as DAC and is included in interest credited to contractholder funds.

For traditional life and voluntary accident and health insurance, DAC is amortized over the premium paying period of the related policies in proportion to the estimated revenues on such business. Assumptions used in the amortization of DAC and reserve calculations are established at the time the policy is issued and are generally not revised during the life of the policy. Any deviations from projected business in force resulting from actual policy terminations differing from expected levels and any estimated premium deficiencies may result in a change to the rate of amortization in the period such events occur. Generally, the amortization periods for these policies approximates the estimated lives of the policies. The Company periodically reviews the recoverability of DAC for these policies using actual experience and current assumptions. Prior to fourth quarter 2017,the Company evaluated traditional

8


life insurance products and immediate annuities with life contingencies on an aggregate basis. Beginning in fourth quarter 2017, traditional life insurance products, immediate annuities with life contingencies, and voluntary accident and health insurance products are reviewed individually, consistent with the review of these products performed by The Allstate Corporation. If actual experience and current assumptions are adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required.

For interest-sensitive life insurance, DAC and DSI are amortized in proportion to the incidence of the total present value of gross profits, which includes both actual historical gross profits (“AGP”) and estimated future gross profits (“EGP”) expected to be earned over the estimated lives of the contracts. The amortization is net of interest on the prior period DAC balance using rates established at the inception of the contracts. Actual amortization periods generally range from 15-30 years; however, incorporating estimates of the rate of customer surrenders, partial withdrawals and deaths generally results in the majority of the DAC being amortized during the surrender charge period, which is typically 10-20 years for interest-sensitive life. The rate of DAC and DSI
amortization is reestimated and adjusted by a cumulative charge or credit to income when there is a difference between the incidence of actual versus expected gross profits in a reporting period or when there is a change in total EGP. When DAC or DSI amortization or a component of gross profits for a quarterly period is potentially negative (which would result in an increase of the DAC or DSI balance) as a result of negative AGP, the specific facts and circumstances surrounding the potential negative amortization are considered to determine whether it is appropriate for recognition in the financial statements. Negative amortization is only recorded when the increased DAC or DSI balance is determined to be recoverable based on facts and circumstances. Recapitalization of DAC and DSI is limited to the originally deferred costs plus interest.

AGP and EGP primarily consist of the following components: contract charges for the cost of insurance less mortality costs and other benefits; investment income and realized capital gains and losses less interest credited; and surrender and other contract charges less maintenance expenses. The principal assumptions for determining the amount of EGP are mortality, persistency, expenses, investment returns, including capital gains and losses on assets supporting contract liabilities, interest crediting rates to contractholders, and the effects of any hedges. For products whose supporting investments are exposed to capital losses in excess of the Company’s expectations which may cause periodic AGP to become temporarily negative, EGP and AGP utilized in DAC and DSI amortization may be modified to exclude the excess capital losses.

The Company performs quarterly reviews of DAC and DSI recoverability for interest-sensitive life contracts using current assumptions. If a change in the amount of EGP is significant, it could result in the unamortized DAC or DSI not being recoverable, resulting in a charge which is included as a component of amortization of deferred policy acquisition costs or interest credited to contractholder funds, respectively.

The DAC and DSI balances presented include adjustments to reflect the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized capital gains or losses in the respective product investment portfolios were actually realized. The adjustments are recorded net of tax in AOCI. DAC, DSI and deferred income taxes determined on unrealized capital gains and losses and reported in AOCI recognize the impact on shareholder’s equity consistently with the amounts that would be recognized in the income statement on realized capital gains and losses.

Customers of the Company may exchange one insurance policy or investment contract for another offered by the Company, or make modifications to an existing investment or life contract issued by the Company. These transactions are identified as internal replacements for accounting purposes. Internal replacement transactions determined to result in replacement contracts that are substantially unchanged from the replaced contracts are accounted for as continuations of the replaced contracts. Unamortized DAC and DSI related to the replaced contracts continue to be deferred and amortized in connection with the replacement contracts. For interest-sensitive life contracts, the EGP of the replacement contracts are treated as a revision to the EGP of the replaced contracts in the determination of amortization of DAC and DSI. For traditional life insurance policies, any changes to unamortized DAC that result from replacement contracts are treated as prospective revisions. Any costs associated with the issuance of replacement contracts are characterized as maintenance costs and expensed as incurred. Internal replacement transactions determined to result in a substantial change to the replaced contracts are accounted for as an extinguishment of the replaced contracts, and any unamortized DAC and DSI related to the replaced contracts are eliminated with a corresponding charge to amortization of deferred policy acquisition costs or interest credited to contractholder funds, respectively.

Reinsurance

In the normal course of business, the Company seeks to limit aggregate and single exposure to losses on large risks by purchasing reinsurance. The Company has also used reinsurance to effect the disposition of certain blocks of business. The amounts reported as reinsurance recoverables include amounts billed to reinsurers on losses paid as well as estimates of amounts expected to be recovered from reinsurers on insurance liabilities and contractholder funds that have not yet been paid. Reinsurance

9


recoverables on unpaid losses are estimated based upon assumptions consistent with those used in establishing the liabilities related to the underlying reinsured contracts. Insurance liabilities are reported gross of reinsurance recoverables. Reinsurance premiums are generally reflected in income in a manner consistent with the recognition of premiums on the reinsured contracts. Reinsurance does not extinguish the Company’s primary liability under the policies written. Therefore, the Company regularly evaluates the financial condition of its reinsurers and establishes allowances for uncollectible reinsurance as appropriate.

The Company has a reinsurance treaty with ALIC through which it primarily cedes reinvestment related risk on its structured settlement annuities. The terms of the treaty meet the accounting definition of a derivative. Accordingly, the treaty is recorded in the Statement of Financial Position at fair value. Changes in the fair value of the treaty and premiums paid to ALIC are recognized in realized capital gains and losses.

Income taxes

The income tax provision is calculated under the liability method. Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax bases of assets and liabilities at the enacted tax rates. The principal assets and liabilities giving rise to such differences are differences in tax bases of invested assets, unrealized capital gains and losses,
insurance reserves and DAC. A deferred tax asset valuation allowance is established when there is uncertainty that such assets will be realized.

Reserve for life-contingent contract benefits

The reserve for life-contingent contract benefits payable under insurance policies, including traditional life insurance, life-contingent immediate annuities and voluntary accident and health insurance products, is computed on the basis of long-term actuarial assumptions of future investment yields, mortality, morbidity, policy terminations and expenses. These assumptions, which for traditional life insurance are applied using the net level premium method, include provisions for adverse deviation and generally vary by characteristics such as type of coverage, year of issue and policy duration. The assumptions are established at the time the policy is issued and are generally not changed during the life of the policy. The Company periodically reviews the adequacy of reserves for these policies using actual experience and current assumptions. If actual experience and current assumptions are adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required. Prior to fourth quarter 2017, the Company evaluated traditional life insurance products and immediate annuities with life contingencies on an aggregate basis. Beginning in fourth quarter 2017, traditional life insurance products, immediate annuities with life contingencies, and voluntary accident and health insurance are reviewed individually, consistent with the review of these products performed by The Allstate Corporation. The Company also reviews these policies for circumstances where projected profits would be recognized in early years followed by projected losses in later years. If this circumstance exists, the Company will accrue a liability, during the period of profits, to offset the losses at such time as the future losses are expected to commence using a method updated prospectively over time. To the extent that unrealized gains on fixed income securities would result in a premium deficiency if those gains were realized, the related increase in reserves for certain immediate annuities with life contingencies is recorded net of tax as a reduction of unrealized net capital gains included in AOCI.

Contractholder funds

Contractholder funds represent interest-bearing liabilities arising from the sale of products such as interest-sensitive life insurance and fixed annuities. Contractholder funds primarily comprise cumulative deposits received and interest credited to the contractholder less cumulative contract benefits, surrenders, withdrawals and contract charges for mortality or administrative expenses. Contractholder funds also include reserves for secondary guarantees on interest-sensitive life insurance and certain fixed annuity contracts and reserves for certain guarantees on reinsured variable annuity contracts.

Separate accounts

Separate accounts assets are carried at fair value. The assets of the separate accounts are legally segregated and available only to settle separate accounts contract obligations. Separate accounts liabilities represent the contractholders’ claims to the related assets and are carried at an amount equal to the separate accounts assets. 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 and Comprehensive Income. Deposits to and surrenders and withdrawals from the separate accounts are reflected in separate accounts liabilities and are not included in cash flows.


10


Absent any contract provision wherein the Company provides a guarantee, variable annuity and variable life insurance contractholders bear the investment risk that the separate accounts’ funds may not meet their stated investment objectives. All of the Company’s variable annuity business was reinsured beginning in 2006.

Off-balance sheet financial instruments

Commitments to invest, commitments to purchase private placement securities and financial guarantees have off-balance sheet risk because their contractual amounts are not recorded in the Company’s Statements of Financial Position (see Note 7 and Note 11).

Adopted accounting standards

Transition to Equity Method Accounting

Effective January 1, 2017, the Company adopted new Financial Accounting Standards Board (“FASB”) guidance amending the accounting requirements for transitioning to the equity method of accounting (“EMA”), including a transition from the cost method. The guidance requires the cost of acquiring an additional interest in an investee to be added to the existing carrying value to establish the initial basis of the EMA investment. Under the new guidance, no retroactive adjustment is required when an investment initially qualifies for EMA treatment. The guidance is applied prospectively to investments that qualify for EMA after application of the cost method of accounting. Accordingly, the adoption of this guidance had no impact on the Company’s results of operations or financial position.

Application of Income Tax Guidance to Certain U.S. Tax Reform Provisions

In February 2018, the FASB issued guidance permitting reclassification of the effects of the new corporate tax rate in the Tax Cuts and Jobs Act of 2017 (“Tax Legislation”) on balances presented net of tax in AOCI. Upon enactment of the Tax Legislation in December 2017, existing accounting guidance required the revaluation of all deferred tax balances to the newly enacted tax rate by adjustment to income tax expense whereas a corresponding adjustment of the balances presented in AOCI was prohibited. The new guidance permits reclassification of the impact of the newly enacted tax rates in the Tax Legislation on balances presented net of tax in AOCI to retained income. The guidance, which may be adopted for any period for which financial statements have not yet been issued, is effective for fiscal years beginning after December 15, 2018, and may be applied retrospectively to the date of enactment or the beginning of a reporting period. The Company elected to early adopt the new guidance as of December 31, 2017. Upon adoption of the guidance, amounts are recognized after-tax in AOCI using the newly established 21% corporate income tax rate. The net impact of adoption was a $25.4 million increase in AOCI and a corresponding decrease in retained income. The $25.4 million increase in AOCI is comprised of a $25.0 million increase in unrealized net capital gains and losses and a $0.4 million increase in unrealized foreign currency translation adjustment. For a more detailed discussion of the Tax Legislation, see Note 12.

Pending accounting standards

Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued guidance requiring equity investments, including equity securities and limited partnership interests, that are not accounted for under the equity method of accounting or result in consolidation to be measured at fair value with changes in fair value recognized in net income. Equity investments without readily determinable fair values may be measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. When a qualitative assessment of equity investments without readily determinable fair values indicates that impairment exists, the carrying value is required to be adjusted to fair value, if lower. The guidance clarifies that an entity should evaluate the realizability of a deferred tax asset related to available-for-sale fixed income securities in combination with the entity’s other deferred tax assets. The guidance also changes certain disclosure requirements. The guidance is effective for interim and annual periods beginning after December 15, 2017, and is to be applied through a cumulative-effect adjustment to beginning retained income which results in no impact to the Company’s results of operations at the date of adoption. The new guidance related to equity investments without readily determinable fair values is applied prospectively as of the date of adoption. The most significant impacts relate to the change in accounting for equity securities, where $42 million of pre-tax unrealized net capital gains will be reclassified on January 1, 2018 from AOCI to retained income and cost method limited partnership interests (excluding limited partnership interests accounted for on a cost recovery basis) where the carrying value of these investments will increase by approximately $8 million, pre-tax on January 1, 2018, with the offsetting after-tax adjustment recognized in retained income.


11


Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued guidance which revises the credit loss recognition criteria for certain financial assets measured at amortized cost, including reinsurance recoverables. The new guidance replaces the existing incurred loss recognition model with an expected loss recognition model. The objective of the expected credit loss model is for the reporting entity to recognize its estimate of expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of the financial assets at the amount expected to be collected. The reporting entity must consider all relevant information available when estimating expected credit losses, including details about past events, current conditions, and reasonable and supportable forecasts over the life of an asset. Financial assets may be evaluated individually or on a pooled basis when they share similar risk characteristics. The measurement of credit losses for available-for-sale debt securities measured at fair value is not affected except that credit losses recognized are limited to the amount by which fair value is below amortized cost and the carrying value adjustment is recognized through a valuation allowance and not as a direct write-down. The guidance is effective for interim and annual periods beginning after December 15, 2019, and for most affected instruments must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained income. The Company is in the process of evaluating the impact of adoption.

Accounting for Hedging Activities

In August 2017, the FASB issued amendments intended to better align hedge accounting with an organization’s risk management activities. The amendments expand hedge accounting for nonfinancial and financial risk components and revise the measurement methodologies to better align with an organization’s risk management activities. Separate presentation of hedge ineffectiveness is eliminated to provide greater transparency of the full impact of hedging by requiring presentation of the results of the hedged item and hedging instrument in a single financial statement line item. In addition, the amendments reduce complexity by simplifying the manner in which assessments of hedge effectiveness may be performed. The guidance is effective for annual periods beginning after December 15, 2018 and for interim periods within those annual periods. The presentation and disclosure
guidance is effective on a prospective basis. The impact of adoption is not expected to be material to the Company’s results of operations or financial position.
3. Supplemental Cash Flow Information

Non-cash investing activities include $1.5 million, $5.4 million and $1.6 million related to mergers and exchanges completed with equity securities and modifications of certain mortgage loans and fixed income securities in 2017, 2016 and 2015, respectively, and a $4.7 million obligation to fund a limited partnership investment in 2015.

Liabilities for collateral received in conjunction with the Company’s securities lending program were $59.1 million, $61.0 million and $99.7 million as of December 31, 2017, 2016 and 2015, respectively, and are reported in other liabilities and accrued expenses. The accompanying cash flows are included in cash flows from operating activities in the Statements of Cash Flows along with the activities resulting from management of the proceeds, which for the years ended December 31 are as follows:
($ in thousands)
 
2017
 
2016
 
2015
Net change in proceeds managed
 
 
 
 
 
 
Net change in short-term investments
 
$
1,864

 
$
38,737

 
$
1,427

Operating cash flow provided
 
$
1,864

 
$
38,737

 
$
1,427

Net change in liabilities
 
 

 
 

 
 

Liabilities for collateral, beginning of year
 
$
(60,931
)
 
$
(99,668
)
 
$
(101,095
)
Liabilities for collateral, end of year
 
(59,067
)
 
(60,931
)
 
(99,668
)
Operating cash flow used
 
$
(1,864
)
 
$
(38,737
)
 
$
(1,427
)
4. Related Party Transactions

Business operations

The Company uses services performed by AIC, ALIC and other affiliates, and business facilities owned or leased and operated by AIC in conducting its business activities. In addition, the Company shares the services of employees with AIC. The Company reimburses its affiliates for the operating expenses incurred on behalf of the Company. The Company is charged for the cost of these operating expenses based on the level of services provided. Operating expenses, including compensation, retirement and other benefit programs (see Note 14), allocated to the Company were $46.3 million, $40.0 million and $39.0 million in 2017, 2016 and 2015, respectively. A portion of these expenses relate to the acquisition of business, which are deferred and amortized into income as described in Note 2.


12


Structured settlement annuities

The Company previously issued structured settlement annuities, a type of immediate annuity, to fund structured settlements in matters involving AIC. In most cases, these annuities were issued under a “qualified assignment” whereby Allstate Assignment Company and prior to July 1, 2001 Allstate Settlement Corporation (“ASC”), both wholly owned subsidiaries of ALIC, purchased annuities from the Company and assumed AIC’s obligation to make future payments.

AIC issued surety bonds to guarantee the payment of structured settlement benefits assumed by ASC (from both AIC and non-related parties) and funded by certain annuity contracts issued by the Company through June 30, 2001. ASC entered into a General Indemnity Agreement pursuant to which it indemnified AIC for any liabilities associated with the surety bonds and gave AIC certain collateral security rights with respect to the annuities and certain other rights in the event of any defaults covered by the surety bonds. ALIC guaranteed the payment of structured settlement benefits on all contracts issued on or after July 1, 2001. Reserves recorded by the Company for annuities that are guaranteed by the surety bonds of AIC were $1.42 billion as of both December 31, 2017 and 2016. Reserves recorded by the Company for annuities that are guaranteed by ALIC were $591.1 million and $607.3 million as of December 31, 2017 and 2016, respectively.

Broker-Dealer agreements

The Company receives distribution services from Allstate Financial Services, LLC, an affiliated broker-dealer company, for certain annuity and variable life insurance contracts sold by Allstate exclusive agencies. For these services, the Company incurred commission and other distribution expenses of $259 thousand, $450 thousand and $233 thousand in 2017, 2016 and 2015, respectively.

The Company has a service agreement with Allstate Distributors, LLC (“ADLLC”), a broker-dealer company owned by ALIC, whereby ADLLC promotes and markets products sold by the Company. In return for these services, the Company recorded expense of $6 thousand, $4 thousand and $23 thousand in 2017, 2016 and 2015, respectively.

Reinsurance

The Company has reinsurance agreements with ALIC whereby a portion of the Company’s premiums and policy benefits are ceded to ALIC (see Note 9).

The Company has a reinsurance treaty (the “structured settlement annuity reinsurance agreement”) through which it primarily cedes reinvestment related risk on its structured settlement annuities to ALIC. Under the terms of the treaty, the Company pays a premium to ALIC that varies with the aggregate structured settlement annuity statutory reserve balance. In return, ALIC guarantees that the yield on the portion of the Company’s investment portfolio that supports structured settlement annuity liabilities will not fall below contractually determined rates. The Company ceded premium related to structured settlement annuities to ALIC of $3.5 million in 2017 and $3.4 million in each of 2016 and 2015. As of December 31, 2017 and 2016, the carrying value of the structured settlement reinsurance treaty was $166.3 million and $109.6 million, respectively, which is recorded in other assets. The premiums ceded and changes in the fair value of the reinsurance treaty are reflected as a component of realized capital gains and losses as the treaty is recorded as a derivative instrument.

Income taxes

The Company is a party to a federal income tax allocation agreement with the Corporation (see Note 12).

Intercompany loan agreement

The Company has an intercompany loan agreement with the Corporation. The amount of intercompany loans available to the Company is at the discretion of the Corporation. The maximum amount of loans the Corporation will have outstanding to all its eligible subsidiaries at any given point in time is limited to $1 billion. The Corporation may use commercial paper borrowings, bank lines of credit and securities lending to fund intercompany borrowings. The Company had no amounts outstanding under the intercompany loan agreement as of December 31, 2017 or 2016.
5. Investments

Fair values

The amortized cost, gross unrealized gains and losses and fair value for fixed income securities are as follows:

13


($ in thousands)
 
Amortized cost
 
Gross unrealized
 
Fair value
 
 
Gains
 
Losses
 
December 31, 2017
 
 

 
 

 
 

 
 

U.S. government and agencies
 
$
115,747

 
$
12,310

 
$
(5
)
 
$
128,052

Municipal
 
615,231

 
114,177

 
(75
)
 
729,333

Corporate
 
3,570,015

 
236,659

 
(10,943
)
 
3,795,731

Foreign government
 
166,043

 
13,722

 
—

 
179,765

ABS
 
41,725

 
210

 
(127
)
 
41,808

RMBS
 
20,666

 
1,303

 
(14
)
 
21,955

CMBS
 
11,855

 
25

 
(472
)
 
11,408

Redeemable preferred stock
 
8,726

 
947

 
—

 
9,673

Total fixed income securities
 
$
4,550,008

 
$
379,353

 
$
(11,636
)
 
$
4,917,725

December 31, 2016
 
 

 
 

 
 

 
 

U.S. government and agencies
 
$
123,994

 
$
17,570

 
$
—

 
$
141,564

Municipal
 
612,222

 
100,532

 
(611
)
 
712,143

Corporate
 
3,517,638

 
223,491

 
(22,906
)
 
3,718,223

Foreign government
 
173,343

 
19,511

 
—

 
192,854

ABS
 
48,274

 
7

 
(201
)
 
48,080

RMBS
 
33,888

 
1,733

 
(10
)
 
35,611

CMBS
 
15,988

 
5

 
(2,197
)
 
13,796

Redeemable preferred stock
 
8,810

 
1,093

 
—

 
9,903

Total fixed income securities
 
$
4,534,157

 
$
363,942

 
$
(25,925
)
 
$
4,872,174


Scheduled maturities

The scheduled maturities for fixed income securities are as follows as of December 31, 2017:
($ in thousands)
 
Amortized
cost
 
Fair
value
Due in one year or less
 
$
317,002

 
$
320,811

Due after one year through five years
 
1,595,959

 
1,670,587

Due after five years through ten years
 
1,468,968

 
1,524,178

Due after ten years
 
1,093,833

 
1,326,978

 
 
4,475,762

 
4,842,554

ABS, RMBS and CMBS
 
74,246

 
75,171

Total
 
$
4,550,008

 
$
4,917,725


Actual maturities may differ from those scheduled as a result of calls and make-whole payments by the issuers. ABS, RMBS and CMBS are shown separately because of the potential for prepayment of principal prior to contractual maturity dates.

Net investment income
Net investment income for the years ended December 31 is as follows:

14


($ in thousands)
 
2017
 
2016
 
2015
Fixed income securities
 
$
228,507

 
$
226,894

 
$
248,585

Mortgage loans
 
28,263

 
28,577

 
27,582

Equity securities
 
5,465

 
5,868

 
4,905

Limited partnership interests
 
53,917

 
38,485

 
34,177

Short-term investments
 
1,200

 
826

 
393

Policy loans
 
2,443

 
2,456

 
2,498

Investment income, before expense
 
319,795

 
303,106

 
318,140

Investment expense
 
(9,100
)
 
(7,261
)
 
(6,896
)
Net investment income
 
$
310,695

 
$
295,845

 
$
311,244

Realized capital gains and losses
Realized capital gains and losses by asset type for the years ended December 31 are as follows:
($ in thousands)
 
2017
 
2016
 
2015
Fixed income securities
 
$
5,436

 
$
(17,145
)
 
$
42,361

Mortgage loans
 
1,128

 
—

 
25

Equity securities
 
799

 
(5,570
)
 
(3,260
)
Limited partnership interests
 
6,451

 
590

 
(6,948
)
Derivatives
 
52,506

 
23,781

 
(4,923
)
Short-term investments
 
12

 
(17
)
 
(137
)
Realized capital gains and losses
 
$
66,332

 
$
1,639

 
$
27,118


Realized capital gains and losses by transaction type for the years ended December 31 are as follows:
($ in thousands)
 
2017
 
2016
 
2015
Impairment write-downs
 
$
(5,370
)
 
$
(15,303
)
 
$
(7,709
)
Change in intent write-downs
 
—

 
(654
)
 
(80
)
Net other-than-temporary impairment losses recognized in earnings
 
(5,370
)
 
(15,957
)
 
(7,789
)
Sales and other
 
19,196

 
(6,185
)
 
39,830

Valuation and settlements of derivative instruments
 
52,506

 
23,781

 
(4,923
)
Realized capital gains and losses
 
$
66,332

 
$
1,639

 
$
27,118


Gross gains of $19.8 million, $14.5 million and $53.2 million and gross losses of $8.2 million, $21.7 million and $9.3 million were realized on sales of fixed income and equity securities during 2017, 2016 and 2015, respectively.

Other-than-temporary impairment losses by asset type for the years ended December 31 are as follows:

15


($ in thousands)
 
2017
 
2016
 
2015
 
 
Gross
 
Included
in OCI
 
Net
 
Gross
 
Included
in OCI
 
Net
 
Gross
 
Included
in OCI
 
Net
Fixed income securities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Municipal
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
(9
)
 
$
—

 
$
(9
)
Corporate
 
(1,481
)
 
—

 
(1,481
)
 
(8,306
)
 
4,205

 
(4,101
)
 
(1,317
)
 
342

 
(975
)
RMBS
 
—

 
—

 
—

 
1

 
(1
)
 
—

 
84

 
—

 
84

CMBS
 
(2,338
)
 
893

 
(1,445
)
 
(785
)
 
452

 
(333
)
 
(380
)
 
—

 
(380
)
Total fixed income securities
 
(3,819
)
 
893

 
(2,926
)
 
(9,090
)
 
4,656

 
(4,434
)
 
(1,622
)
 
342

 
(1,280
)
Equity securities
 
(2,422
)
 
—

 
(2,422
)
 
(11,103
)
 
—

 
(11,103
)
 
(3,430
)
 
—

 
(3,430
)
Limited partnership interests
 
(22
)
 
—

 
(22
)
 
(420
)
 
—

 
(420
)
 
(3,079
)
 
—

 
(3,079
)
Other-than-temporary impairment losses
 
$
(6,263
)
 
$
893

 
$
(5,370
)
 
$
(20,613
)
 
$
4,656

 
$
(15,957
)
 
$
(8,131
)
 
$
342

 
$
(7,789
)

The total amount of other-than-temporary impairment losses included in AOCI at the time of impairment for fixed income securities, which were not included in earnings, are presented in the following table. The amount excludes $1.3 million and $9.0 million as of December 31, 2017 and 2016, respectively, of net unrealized gains related to changes in valuation of the fixed income securities subsequent to the impairment measurement date.
($ in thousands)
 
December 31, 2017
 
December 31, 2016
Corporate
 
$
—

 
$
(4,050
)
RMBS
 
—

 
(40
)
CMBS
 
(975
)
 
(384
)
Total
 
$
(975
)
 
$
(4,474
)

Rollforwards of the cumulative credit losses recognized in earnings for fixed income securities held as of December 31 are as follows:
($ in thousands)
 
2017
 
2016
 
2015
Beginning balance
 
$
(4,594
)
 
$
(1,173
)
 
$
(568
)
Additional credit loss for securities previously other-than-temporarily impaired
 
(128
)
 
(357
)
 
84

Additional credit loss for securities not previously other-than-temporarily impaired
 
(2,798
)
 
(4,077
)
 
(1,283
)
Reduction in credit loss for securities disposed or collected
 
4,328

 
1,013

 
593

Change in credit loss due to accretion of increase in cash flows
 
—

 
—

 
1

Ending balance 
 
$
(3,192
)
 
$
(4,594
)
 
$
(1,173
)

The Company uses its best estimate of future cash flows expected to be collected from the fixed income security, discounted at the security’s original or current effective rate, as appropriate, to calculate a recovery value and determine whether a credit loss exists. The determination of cash flow estimates is inherently subjective and methodologies may vary depending on facts and circumstances specific to the security. All reasonably available information relevant to the collectability of the security, including past events, current conditions, and reasonable and supportable assumptions and forecasts, are considered when developing the estimate of cash flows expected to be collected. That information generally includes, but is not limited to, the remaining payment terms of the security, prepayment speeds, foreign exchange rates, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, vintage, geographic concentration of underlying collateral, available reserves or escrows, current subordination levels, third party guarantees and other credit enhancements. Other information, such as industry analyst reports and forecasts, sector credit ratings, financial condition of the bond insurer for insured fixed income securities, and other market data relevant to the realizability of contractual cash flows, may also be considered. The

16


estimated fair value of collateral will be used to estimate recovery value if the Company determines that the security is dependent on the liquidation of collateral for ultimate settlement. If the estimated recovery value is less than the amortized cost of the security, a credit loss exists and an other-than-temporary impairment for the difference between the estimated recovery value and amortized cost is recorded in earnings. The portion of the unrealized loss related to factors other than credit remains classified in AOCI. If the Company determines that the fixed income security does not have sufficient cash flow or other information to estimate a recovery value for the security, the Company may conclude that the entire decline in fair value is deemed to be credit related and the loss is recorded in earnings.

Unrealized net capital gains and losses

Unrealized net capital gains and losses included in AOCI are as follows:
($ in thousands)
 
Fair value
 
Gross unrealized
 
Unrealized net gains (losses)
December 31, 2017
 
Gains
 
Losses
 
Fixed income securities
 
$
4,917,725

 
$
379,353

 
$
(11,636
)
 
$
367,717

Equity securities (1)
 
194,533

 
42,758

 
(388
)
 
42,370

Short-term investments 
 
88,786

 
—

 
(13
)
 
(13
)
EMA limited partnerships (2)
 
 

 
 

 
 

 
(10
)
Unrealized net capital gains and losses, pre-tax
 
 

 
 

 
 

 
410,064

Amounts recognized for:
 
 

 
 

 
 

 
 

Insurance reserves (3)
 
 

 
 

 
 

 
(222,342
)
DAC and DSI (4)
 
 

 
 

 
 

 
(9,057
)
Amounts recognized
 
 

 
 

 
 

 
(231,399
)
Deferred income taxes (5)
 
 

 
 

 
 

 
(37,520
)
Unrealized net capital gains and losses, after-tax
 
 

 
 

 
 

 
$
141,145

____________________
(1)
Beginning January 1, 2018, due to the adoption of the new accounting standard for the recognition and measurement of financial assets and liabilities, equity securities will be measured at fair value with changes in fair value recognized in net income. The existing unrealized net capital gains and losses, after-tax, will be reclassified to retained income through a cumulative effect adjustment. See Note 2 for additional details on the new accounting standard.
(2)
Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ other comprehensive income. Fair value and gross unrealized gains and losses are not applicable.
(3)
The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at current lower interest rates, resulting in a premium deficiency. This adjustment primarily relates to structured settlement annuities with life contingencies (a type of immediate annuities with life contingencies).
(4)
The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.
(5)
Unrealized net capital gains and losses were reduced by deferred income taxes at the newly enacted 21% U.S. corporate tax rate.

($ in thousands)
 
Fair value
 
Gross unrealized
 
Unrealized net gains (losses)
December 31, 2016
 
Gains
 
Losses
 
Fixed income securities
 
$
4,872,174

 
$
363,942

 
$
(25,925
)
 
$
338,017

Equity securities
 
218,078

 
17,214

 
(7,771
)
 
9,443

Short-term investments 
 
92,698

 
1

 
(2
)
 
(1
)
EMA limited partnerships
 
 

 
 

 
 

 
(61
)
Unrealized net capital gains and losses, pre-tax
 
 

 
 

 
 

 
347,398

Amounts recognized for:
 
 

 
 

 
 

 
 

Insurance reserves
 
 

 
 

 
 

 
(56,350
)
DAC and DSI
 
 

 
 

 
 

 
(10,522
)
Amounts recognized
 
 

 
 

 
 

 
(66,872
)
Deferred income taxes
 
 

 
 

 
 

 
(98,184
)
Unrealized net capital gains and losses, after-tax
 
 

 
 

 
 

 
$
182,342



17


Change in unrealized net capital gains and losses

The change in unrealized net capital gains and losses for the years ended December 31 is as follows:
($ in thousands)
 
2017
 
2016
 
2015
Fixed income securities
 
$
29,700

 
$
41,965

 
$
(235,454
)
Equity securities
 
32,927

 
12,743

 
(3,873
)
Short-term investments
 
(12
)
 
(3
)
 
1

EMA limited partnerships
 
51

 
(3
)
 
(58
)
Total
 
62,666

 
54,702

 
(239,384
)
Amounts recognized for:
 
 

 
 

 
 

Insurance reserves
 
(165,992
)
 
(11,943
)
 
212,845

DAC and DSI
 
1,465

 
(4,984
)
 
7,315

Amounts recognized
 
(164,527
)
 
(16,927
)
 
220,160

Deferred income taxes
 
60,664

 
(13,221
)
 
6,728

(Decrease) increase in unrealized net capital gains and losses, after-tax
 
$
(41,197
)
 
$
24,554

 
$
(12,496
)

Portfolio monitoring

The Company has a comprehensive portfolio monitoring process to identify and evaluate each fixed income and equity security whose carrying value may be other-than-temporarily impaired.

For each fixed income security in an unrealized loss position, the Company assesses whether management with the appropriate authority has made the decision to sell or whether it is more likely than not the Company will be required to sell the security before recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If a security meets either of these criteria, the security’s decline in fair value is considered other than temporary and is recorded in earnings.

If the Company has not made the decision to sell the fixed income security and it is not more likely than not the Company will be required to sell the fixed income security before recovery of its amortized cost basis, the Company evaluates whether it expects to receive cash flows sufficient to recover the entire amortized cost basis of the security. The Company calculates the estimated recovery value by discounting the best estimate of future cash flows at the security’s original or current effective rate, as appropriate, and compares this to the amortized cost of the security. If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed income security, the credit loss component of the impairment is recorded in earnings, with the remaining amount of the unrealized loss related to other factors recognized in other comprehensive income.

For equity securities, the Company considers various factors, including whether it has the intent and ability to hold the equity security for a period of time sufficient to recover its cost basis. Where the Company lacks the intent and ability to hold to recovery, or believes the recovery period is extended, the equity security’s decline in fair value is considered other than temporary and is recorded in earnings.

For fixed income and equity securities managed by third parties, either the Company has contractually retained its decision making authority as it pertains to selling securities that are in an unrealized loss position or it recognizes any unrealized loss at the end of the period through a charge to earnings.

The Company’s portfolio monitoring process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost (for fixed income securities) or cost (for equity securities) is below established thresholds. The process also includes the monitoring of other impairment indicators such as ratings, ratings downgrades and payment defaults. The securities identified, in addition to other securities for which the Company may have a concern, are evaluated for potential other-than-temporary impairment using all reasonably available information relevant to the collectability or recovery of the security. Inherent in the Company’s evaluation of other-than-temporary impairment for these fixed income and equity securities are assumptions and estimates about the financial condition and future earnings potential of the issue or issuer. Some of the factors that may be considered in evaluating whether a decline in fair value is other than temporary are: 1) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry specific market conditions and trends, geographic location and implications of rating agency actions and offering prices; 2) the specific reasons that a security is in an unrealized loss position, including overall market conditions which could affect liquidity; and 3) the length of time and extent to which the fair value has been less than amortized cost or cost.

18



The following table summarizes the gross unrealized losses and fair value of fixed income and equity securities by the length of time that individual securities have been in a continuous unrealized loss position.
($ in thousands)
 
Less than 12 months
 
12 months or more
 
Total unrealized losses
 
 
Number
of issues
 
Fair
value
 
Unrealized losses
 
Number
of issues
 
Fair
value
 
Unrealized losses
 
 
 
December 31, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Fixed income securities
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. government and agencies
 
2

 
$
39,867

 
$
(5
)
 
—

 
$
—

 
$
—

 
$
(5
)
Municipal
 
1

 
4,925

 
(75
)
 
—

 
—

 
—

 
$
(75
)
Corporate
 
147

 
527,594

 
(4,216
)
 
47

 
191,534

 
(6,727
)
 
(10,943
)
ABS
 
4

 
24,836

 
(127
)
 
—

 
—

 
—

 
(127
)
RMBS
 
47

 
1,720

 
(10
)
 
24

 
216

 
(4
)
 
(14
)
CMBS
 
—

 
—

 
—

 
2

 
8,325

 
(472
)
 
(472
)
Redeemable preferred stock
 
1

 
1

 
—

 
—

 
—

 
—

 
—

Total fixed income securities
 
202

 
598,943

 
(4,433
)
 
73

 
200,075

 
(7,203
)
 
(11,636
)
Equity securities
 
63

 
7,294

 
(330
)
 
3

 
759

 
(58
)
 
(388
)
Total fixed income and equity securities
 
265

 
$
606,237

 
$
(4,763
)
 
76

 
$
200,834

 
$
(7,261
)
 
$
(12,024
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade fixed income securities
 
137

 
$
532,387

 
$
(3,093
)
 
64

 
$
185,093

 
$
(6,447
)
 
$
(9,540
)
Below investment grade fixed income securities
 
65

 
66,556

 
(1,340
)
 
9

 
14,982

 
(756
)
 
(2,096
)
Total fixed income securities
 
202

 
$
598,943

 
$
(4,433
)
 
73

 
$
200,075

 
$
(7,203
)
 
$
(11,636
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Fixed income securities
 
3

 
 

 
 

 
 

 
 

 
 

 
 

Municipal
 
3

 
$
16,781

 
$
(611
)
 
—

 
$
—

 
$
—

 
$
(611
)
Corporate
 
215

 
776,730

 
(21,291
)
 
15

 
45,247

 
(1,615
)
 
(22,906
)
ABS
 
3

 
23,288

 
(201
)
 
—

 
—

 
—

 
(201
)
RMBS
 
35

 
519

 
(3
)
 
17

 
980

 
(7
)
 
(10
)
CMBS
 
4

 
5,297

 
(158
)
 
1

 
7,944

 
(2,039
)
 
(2,197
)
Redeemable preferred stock
 
1

 
—

 
—

 
—

 
—

 
—

 
—

Total fixed income securities
 
261

 
822,615

 
(22,264
)
 
33

 
54,171

 
(3,661
)
 
(25,925
)
Equity securities
 
156

 
35,306

 
(2,694
)
 
92

 
22,695

 
(5,077
)
 
(7,771
)
Total fixed income and equity securities
 
417

 
$
857,921

 
$
(24,958
)
 
125

 
$
76,866

 
$
(8,738
)
 
$
(33,696
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade fixed income securities
 
176

 
$
744,124

 
$
(18,858
)
 
22

 
$
30,364

 
$
(868
)
 
$
(19,726
)
Below investment grade fixed income securities
 
85

 
78,491

 
(3,406
)
 
11

 
23,807

 
(2,793
)
 
(6,199
)
Total fixed income securities
 
261

 
$
822,615

 
$
(22,264
)
 
33

 
$
54,171

 
$
(3,661
)
 
$
(25,925
)

As of December 31, 2017, $11.8 million of the $12.0 million unrealized losses are related to securities with an unrealized loss position less than 20% of amortized cost or cost, the degree of which suggests that these securities do not pose a high risk of being other-than-temporarily impaired. Of the $11.8 million, $9.5 million are related to unrealized losses on investment grade fixed income securities and $360 thousand are related to equity securities. Of the remaining $1.9 million, $1.3 million have been in an unrealized loss position for less than 12 months. Investment grade is defined as a security having a rating of Aaa, Aa, A or Baa from Moody’s, a rating of AAA, AA, A or BBB from S&P Global Ratings (“S&P”), a comparable rating from another nationally recognized rating agency, or a comparable internal rating if an externally provided rating is not available. Market prices for certain securities may have credit spreads which imply higher or lower credit quality than the current third party rating. Unrealized losses on investment grade securities are principally related to an increase in market yields which may include increased risk-free interest rates and/or wider credit spreads since the time of initial purchase.


19


As of December 31, 2017, the remaining $209 thousand of unrealized losses are related to securities in unrealized loss positions greater than or equal to 20% of amortized cost or cost and are related to below investment grade fixed income securities.  

ABS, RMBS and CMBS in an unrealized loss position were evaluated based on actual and projected collateral losses relative to the securities’ positions in the respective securitization trusts, security specific expectations of cash flows, and credit ratings. This evaluation also takes into consideration credit enhancement, measured in terms of (i) subordination from other classes of securities in the trust that are contractually obligated to absorb losses before the class of security the Company owns, (ii) the expected impact of other structural features embedded in the securitization trust beneficial to the class of securities the Company owns, such as overcollateralization and excess spread. Municipal bonds in an unrealized loss position were evaluated based on
the underlying credit quality of the primary obligor, obligation type and quality of the underlying assets. Unrealized losses on equity securities are primarily related to temporary equity market fluctuations of securities that are expected to recover.

As of December 31, 2017, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell fixed income securities with unrealized losses before recovery of the amortized cost basis. As of December 31, 2017, the Company had the intent and ability to hold equity securities with unrealized losses for a period of time sufficient for them to recover.

Limited partnerships

As of December 31, 2017 and 2016, the carrying value of equity method limited partnerships totaled $282.8 million and $257.8 million, respectively. Principal factors influencing carrying value appreciation or decline include operating performance, comparable public company earnings multiples, capitalization rates and the economic environment. The Company recognizes an impairment loss for equity method limited partnerships when evidence demonstrates that the loss is other than temporary. Evidence of a loss in value that is other than temporary may include the absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain a level of earnings that would justify the carrying amount of the investment.

As of December 31, 2017 and 2016, the carrying value for cost method limited partnerships was $80.5 million and $72.5 million, respectively. To determine if an other-than-temporary impairment has occurred, the Company evaluates whether an impairment indicator has occurred in the period that may have a significant adverse effect on the carrying value of the investment. Impairment indicators may include: significantly reduced valuations of the investments held by the limited partnerships; actual recent cash flows received being significantly less than expected cash flows; reduced valuations based on financing completed at a lower value; completed sale of a material underlying investment at a price significantly lower than expected; or any other adverse events since the last financial statements received that might affect the fair value of the investee’s capital. Additionally, the Company’s portfolio monitoring process includes a quarterly review of all cost method limited partnerships to identify instances where the net asset value is below established thresholds for certain periods of time, as well as investments that are performing below expectations, for further impairment consideration. If a cost method limited partnership is other-than-temporarily impaired, the carrying value is written down to fair value, generally estimated to be equivalent to the reported net asset value.

Mortgage loans

The Company’s mortgage loans are commercial mortgage loans collateralized by a variety of commercial real estate property types located across the United States and totaled, net of valuation allowance, $629.1 million and $614.4 million as of December 31, 2017 and 2016, respectively. Substantially all of the commercial mortgage loans are non-recourse to the borrower.

The following table shows the principal geographic distribution of commercial real estate represented in the Company’s mortgage loan portfolio. No other state represented more than 5% of the portfolio as of December 31.
(% of mortgage loan portfolio carrying value)
 
2017
 
2016
California
 
19.4
%
 
20.9
%
Texas
 
14.5

 
11.0

New Jersey
 
8.5

 
9.3

Illinois
 
5.7

 
3.6


20


The types of properties collateralizing the mortgage loans as of December 31 are as follows:
(% of mortgage loan portfolio carrying value)
 
2017
 
2016
Office buildings
 
28.2
%
 
26.1
%
Apartment complex
 
26.3

 
25.6

Retail
 
19.3

 
19.3

Warehouse
 
16.5

 
18.9

Other
 
9.7

 
10.1

Total
 
100.0
%
 
100.0
%

The contractual maturities of the mortgage loan portfolio as of December 31, 2017 are as follows:
($ in thousands)
 
Number
of loans
 
Carrying
value
 
Percent
2,018
 
5

 
$
21,589

 
3.4
%
2,019
 
1

 
10,000

 
1.6

2,020
 
6

 
28,310

 
4.5

2,021
 
11

 
71,052

 
11.3

Thereafter
 
77

 
498,191

 
79.2

Total
 
100

 
$
629,142

 
100.0
%

Mortgage loans are evaluated for impairment on a specific loan basis through a quarterly credit monitoring process and review of key credit quality indicators. Mortgage loans are considered impaired when it is probable that the Company will not collect the contractual principal and interest. Valuation allowances are established for impaired loans to reduce the carrying value to the fair value of the collateral less costs to sell or the present value of the loan’s expected future repayment cash flows discounted at the loan’s original effective interest rate. Impaired mortgage loans may not have a valuation allowance when the fair value of the collateral less costs to sell is higher than the carrying value. Valuation allowances are adjusted for subsequent changes in the fair value of the collateral less costs to sell or present value of the loan’s expected future repayment cash flows. Mortgage loans are charged off against their corresponding valuation allowances when there is no reasonable expectation of recovery. The impairment evaluation is non-statistical in respect to the aggregate portfolio but considers facts and circumstances attributable to each loan. It is not considered probable that additional impairment losses, beyond those identified on a specific loan basis, have been incurred as of December 31, 2017.

Accrual of income is suspended for mortgage loans that are in default or when full and timely collection of principal and interest payments is not probable. Cash receipts on mortgage loans on nonaccrual status are generally recorded as a reduction of carrying value.

Debt service coverage ratio is considered a key credit quality indicator when mortgage loans are evaluated for impairment. Debt service coverage ratio represents the amount of estimated cash flows from the property available to the borrower to meet principal and interest payment obligations. Debt service coverage ratio estimates are updated annually or more frequently if conditions are warranted based on the Company’s credit monitoring process.

The following table reflects the carrying value of non-impaired fixed rate mortgage loans summarized by debt service coverage ratio distribution as of December 31. There were no variable rate mortgage loans as of December 31, 2017 or 2016.
($ in thousands)
 
2017
 
2016
Below 1.0
 
$
—

 
$
5,600

1.0 - 1.25
 
50,411

 
44,289

1.26 - 1.50
 
172,800

 
179,503

Above 1.50
 
405,931

 
384,988

Total non-impaired mortgage loans
 
$
629,142

 
$
614,380


Mortgage loans with a debt service coverage ratio below 1.0 that are not considered impaired primarily relate to instances where the borrower has the financial capacity to fund the revenue shortfalls from the properties for the foreseeable term, the decrease in cash flows from the properties is considered temporary, or there are other risk mitigating circumstances such as additional collateral, escrow balances or borrower guarantees.

21



There were no impaired mortgage loans and no valuation allowances as of December 31, 2017, 2016 or 2015. Payments on all mortgage loans were current as of December 31, 2017 and 2016.

Municipal bonds

The Company maintains a diversified portfolio of municipal bonds. The following table shows the principal geographic distribution of municipal bond issuers represented in the Company’s portfolio as of December 31. No other state represents more than 5% of the portfolio.
(% of municipal bond portfolio carrying value)
 
2017
 
2016
California
 
27.7
%
 
27.5
%
Texas
 
11.9

 
12.3

Oregon
 
7.2

 
6.7

Illinois
 
5.8

 
5.5


Concentration of credit risk

As of December 31, 2017, the Company is not exposed to any credit concentration risk of a single issuer and its affiliates greater than 10% of the Company’s shareholder’s equity, other than the U.S. government and its agencies.

Securities loaned

The Company’s business activities include securities lending programs with third parties, mostly large banks. As of December 31, 2017 and 2016, fixed income and equity securities with a carrying value of $57.4 million and $59.2 million, respectively, were on loan under these agreements. Interest income on collateral, net of fees, was $235 thousand, $306 thousand and $235 thousand in 2017, 2016 and 2015, respectively.

Other investment information

Included in fixed income securities are below investment grade assets totaling $311.3 million and $269.2 million as of December 31, 2017 and 2016, respectively.

As of December 31, 2017, fixed income securities with a carrying value of $2.3 million were on deposit with regulatory authorities as required by law.

As of December 31, 2017, there were no fixed income securities that were non-income producing.

The Company had $2.4 million of investment-related debt that was reported in other liabilities and accrued expenses as of December 31, 2016 related to a commitment to fund a limited partnership.
6. Fair Value of Assets and Liabilities

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on the Statements of Financial Position at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:
Level 1:
Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access.
Level 2:
Assets and liabilities whose values are based on the following:
(a) Quoted prices for similar assets or liabilities in active markets;
(b) Quoted prices for identical or similar assets or liabilities in markets that are not active; or
(c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.

22


Level 3:
Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect the Company’s estimates of the assumptions that market participants would use in valuing the assets and liabilities.

The availability of observable inputs varies by instrument. In situations where fair value is based on internally developed pricing models or inputs that are unobservable in the market, the determination of fair value requires more judgment. The degree of judgment exercised by the Company in determining fair value is typically greatest for instruments categorized in Level 3. In many instances, valuation inputs used to measure fair value fall into different levels of the fair value hierarchy.  The category level in the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company uses prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments.

The Company is responsible for the determination of fair value and the supporting assumptions and methodologies. The Company gains assurance that assets and liabilities are appropriately valued through the execution of various processes and controls designed to ensure the overall reasonableness and consistent application of valuation methodologies, including inputs and assumptions, and compliance with accounting standards. For fair values received from third parties or internally estimated, the Company’s processes and controls are designed to ensure that the valuation methodologies are appropriate and consistently applied, the inputs and assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded. For example, on a continuing basis, the Company assesses the reasonableness of individual fair values that have stale security prices or that exceed certain thresholds as compared to previous fair values received from valuation service providers or brokers or derived from internal models. The Company performs procedures to understand and assess the methodologies, processes and controls of valuation service providers. In addition, the Company may validate the reasonableness of fair values by comparing information obtained from valuation service providers or brokers to other third party valuation sources for selected securities. The Company performs ongoing price validation procedures such as back-testing of actual sales, which
corroborate the various inputs used in internal models to market observable data. When fair value determinations are expected to be more variable, the Company validates them through reviews by members of management who have relevant expertise and who are independent of those charged with executing investment transactions.

The Company has two types of situations where investments are classified as Level 3 in the fair value hierarchy. The first is where specific inputs significant to the fair value estimation models are not market observable. This primarily occurs in the Company’s use of broker quotes to value certain securities where the inputs have not been corroborated to be market observable, and the use of valuation models that use significant non-market observable inputs.

The second situation where the Company classifies securities in Level 3 is where quotes continue to be received from independent third-party valuation service providers and all significant inputs are market observable; however, there has been a significant decrease in the volume and level of activity for the asset when compared to normal market activity such that the degree of market observability has declined to a point where categorization as a Level 3 measurement is considered appropriate. The indicators considered in determining whether a significant decrease in the volume and level of activity for a specific asset has occurred include the level of new issuances in the primary market, trading volume in the secondary market, the level of credit spreads over historical levels, applicable bid-ask spreads, and price consensus among market participants and other pricing sources.

Certain assets are not carried at fair value on a recurring basis, including investments such as mortgage loans, limited partnership interests and policy loans. Accordingly, such investments are only included in the fair value hierarchy disclosure when the investment is subject to remeasurement at fair value after initial recognition and the resulting remeasurement is reflected in the financial statements.

In determining fair value, the Company principally uses the market approach which generally utilizes market transaction data for the same or similar instruments. To a lesser extent, the Company uses the income approach which involves determining fair values from discounted cash flow methodologies. For the majority of Level 2 and Level 3 valuations, a combination of the market and income approaches is used.

Summary of significant valuation techniques for assets and liabilities measured at fair value on a recurring basis
Level 1 measurements
•
Fixed income securities: Comprise certain U.S. Treasury fixed income securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.
•
Equity securities: Comprise actively traded, exchange-listed equity securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.

23


•
Short-term: Comprise U.S Treasury bills valued on unadjusted quoted prices for identical assets in active markets that the Company can access and actively traded money market funds that have daily quoted net asset values for identical assets that the Company can access.
•
Separate account assets: Comprise actively traded mutual funds that have daily quoted net asset values for identical assets that the Company can access. Net asset values for the actively traded mutual funds in which the separate account assets are invested are obtained daily from the fund managers.

Level 2 measurements
•
Fixed income securities:

U.S. government and agencies: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Municipal: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Corporate - public: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Corporate - privately placed: Valued using a discounted cash flow model that is widely accepted in the financial services industry and uses market observable inputs and inputs derived principally from, or corroborated by, observable market data. The primary inputs to the discounted cash flow model include an interest rate yield curve, as well as published credit spreads for similar assets in markets that are not active that incorporate the credit quality and industry sector of the issuer.

Foreign government: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

ABS - consumer and other: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, prepayment speeds, collateral performance and credit spreads. Certain ABS - consumer and other are valued based on non-binding broker quotes whose inputs have been corroborated to be market observable.

RMBS: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, prepayment speeds, collateral performance and credit spreads.

CMBS: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, collateral performance and credit spreads.

Redeemable preferred stock: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, underlying stock prices and credit spreads.
•
Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that are not active.
•
Short-term: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads. For certain short-term investments, amortized cost is used as the best estimate of fair value.
•
Other investments: Free-standing exchange listed derivatives that are not actively traded are valued based on quoted prices for identical instruments in markets that are not active.

Over-the-counter (“OTC”) derivatives, including foreign exchange forward contracts and options, are valued using models that rely on inputs such as currency rates that are observable for substantially the full term of the contract.  The valuation techniques underlying the models are widely accepted in the financial services industry and do not involve significant judgment.

Level 3 measurements
•
Fixed income securities:

Municipal: Comprise municipal bonds that are not rated by third party credit rating agencies. The primary inputs to the valuation of these municipal bonds include quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements, contractual cash flows, benchmark yields and credit spreads. Also

24


included are municipal bonds valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and municipal bonds in default valued based on the present value of expected cash flows.

Corporate - public and Corporate - privately placed: Primarily valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable. Other inputs include an interest rate yield curve, as well as published credit spreads for similar assets that incorporate the credit quality and industry sector of the issuer.

ABS - collateralized debt obligations (“CDO”) and ABS - consumer and other: Valued based on non-binding broker quotes received from brokers who are familiar with the investments and where the inputs have not been corroborated to be market observable.
•
Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements.
•
Other investments: Certain OTC derivatives, such as interest rate caps, are valued using models that are widely accepted in the financial services industry. These are categorized as Level 3 as a result of the significance of non-market observable inputs such as volatility. Other primary inputs include interest rate yield curves.    
•
Other assets: Includes a structured settlement annuity reinsurance agreement accounted for as a derivative instrument that is valued internally. The model primarily uses stochastically determined cash flows, ultimate reinvestment spreads and applicable market data, such as interest rate and volatility assumptions. This item is categorized as Level 3 as a result of the significance of non-market observable inputs.
•
Contractholder funds: Derivatives embedded in certain life and annuity contracts are valued internally using models widely accepted in the financial services industry that determine a single best estimate of fair value for the embedded derivatives within a block of contractholder liabilities. The models primarily use stochastically determined cash flows based on the contractual elements of embedded derivatives, projected option cost and applicable market data, such as interest rate yield curves and equity index volatility assumptions. These are categorized as Level 3 as a result of the significance of non-market observable inputs.

Assets and liabilities measured at fair value on a non-recurring basis

Mortgage loans written-down to fair value in connection with recognizing impairments are valued based on the fair value of the underlying collateral less costs to sell. Limited partnership interests written-down to fair value in connection with recognizing other-than-temporary impairments are generally valued using net asset values.

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2017. There were no assets or liabilities measured at fair value on a non-recurring basis as of December 31, 2017.

25


($ in thousands)
 
Quoted prices in active markets for identical assets
(Level 1)
 
Significant other observable inputs
(Level 2)
 
Significant unobservable inputs
(Level 3)
 
Counterparty and cash collateral netting
 
Balance as of December 31, 2017
Assets
 
 

 
 
 
 

 
 

 
 

Fixed income securities:
 
 

 
 
 
 

 
 

 
 

U.S. government and agencies
 
$
42,427

 
$
85,625

 
$
—

 
 

 
$
128,052

Municipal
 
—

 
708,155

 
21,178

 
 

 
729,333

Corporate - public
 
—

 
2,565,223

 
7,312

 
 

 
2,572,535

Corporate - privately placed
 
—

 
1,167,218

 
55,978

 
 
 
1,223,196

Foreign government
 
—

 
179,765

 
—

 
 

 
179,765

ABS - consumer and other
 
—

 
26,603

 
15,205

 
 
 
41,808

RMBS
 
—

 
21,955

 
—

 
 

 
21,955

CMBS
 
—

 
11,408

 
—

 
 

 
11,408

Redeemable preferred stock
 
—

 
9,672

 
1

 
 

 
9,673

Total fixed income securities
 
42,427

 
4,775,624

 
99,674

 
 

 
4,917,725

Equity securities
 
186,446

 
928

 
7,159

 
 
 
194,533

Short-term investments
 
20,594

 
68,192

 
—

 
 
 
88,786

Other investments: Free-standing derivatives
 
—

 
2,885

 
336

 
$
(115
)
 
3,106

Separate account assets
 
293,836

 
—

 
—

 
 
 
293,836

Other assets
 
—

 
—

 
166,290

 
 
 
166,290

Total assets at fair value
 
$
543,303

 
$
4,847,629

 
$
273,459

 
$
(115
)
 
$
5,664,276

% of total assets at fair value
 
9.6

 
85.6

 
4.8

 
—

 
100

Liabilities
 
 

 
 

 
 

 
 

 
 

Contractholder funds: Derivatives embedded in life and annuity contracts
 
$
—

 
$
—

 
$
(4,796
)
 
 
 
$
(4,796
)
Other liabilities: Free-standing derivatives
 
—

 
(1,601
)
 
—

 
$
345

 
(1,256
)
Total liabilities at fair value
 
$
—

 
$
(1,601
)
 
$
(4,796
)
 
$
345

 
$
(6,052
)
% of total liabilities at fair value
 
—

 
26.5

 
79.2

 
(5.7
)
 
100


The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2016. There were no assets or liabilities measured at fair value on a non-recurring basis as of December 31, 2016.

26


($ in thousands)
 
Quoted prices in active markets for identical assets
(Level 1)
 
Significant other observable inputs
(Level 2)
 
Significant unobservable inputs
(Level 3)
 
Counterparty and cash collateral netting
 
Balance as of December 31, 2016
Assets
 
 

 
 
 
 

 
 

 
 

Fixed income securities:
 
 

 
 
 
 

 
 

 
 

U.S. government and agencies
 
$
14,008

 
$
127,556

 
$
—

 
 

 
$
141,564

Municipal
 
—

 
689,420

 
22,723

 
 

 
712,143

Corporate - public
 
—

 
2,478,958

 
4,091

 
 

 
2,483,049

Corporate - privately placed
 
—

 
1,159,461

 
75,713

 
 
 
1,235,174

Foreign government
 
—

 
192,854

 
—

 
 

 
192,854

ABS - consumer and other
 
—

 
33,277

 
14,803

 
 
 
48,080

RMBS
 
—

 
35,611

 
—

 
 

 
35,611

CMBS
 
—

 
13,796

 
—

 
 

 
13,796

Redeemable preferred stock
 
—

 
9,903

 
—

 
 

 
9,903

Total fixed income securities
 
14,008

 
4,740,836

 
117,330

 
 

 
4,872,174

Equity securities
 
211,521

 
637

 
5,920

 
 
 
218,078

Short-term investments
 
40,111

 
52,587

 
—

 
 
 
92,698

Other investments: Free-standing derivatives
 
—

 
2,414

 
311

 
$
(145
)
 
2,580

Separate account assets
 
290,798

 
—

 
—

 
 
 
290,798

Other assets
 
—

 
—

 
109,578

 
 
 
109,578

Total recurring basis assets
 
556,438

 
4,796,474

 
233,139

 
(145
)
 
5,585,906

Non-recurring basis (1)
 
—

 
—

 
—

 
 

 
—

Total assets at fair value
 
$
556,438

 
$
4,796,474

 
$
233,139

 
$
(145
)
 
$
5,585,906

% of total assets at fair value
 
9.9

 
85.9

 
4.2

 
—

 
100

Liabilities
 
 

 
 

 
 

 
 

 
 

Contractholder funds: Derivatives embedded in life and annuity contracts
 
$
—

 
$
—

 
$
(7,177
)
 
 
 
$
(7,177
)
Other liabilities: Free-standing derivatives
 
(1
)
 
(904
)
 
—

 
$
145

 
(760
)
Total liabilities at fair value
 
$
(1
)
 
$
(904
)
 
$
(7,177
)
 
$
145

 
$
(7,937
)
% of total liabilities at fair value
 
—

 
11.4

 
90.4

 
(1.8
)
 
100


The following table summarizes quantitative information about the significant unobservable inputs used in Level 3 fair value measurements.
($ in thousands)
 
Fair value
 
Valuation
technique
 
Unobservable
input
 
Range
 
Weighted
average
December 31, 2017
 
 

 
 
 
 
 
 
 
 
Other assets - Structured settlement annuity reinsurance agreement
 
$
166,290

 
Stochastic cash flow model
 
Ultimate reinvestment spreads
 
129.8 - 218.6 basis points
 
169.3 basis points
December 31, 2016
 
 

 
 
 
 
 
 
 
 
Other assets - Structured settlement annuity reinsurance agreement
 
$
109,578

 
Stochastic cash flow model
 
Ultimate reinvestment spreads
 
130.7 - 218.4 basis points
 
169.6 basis points

If the ultimate reinvestment spreads increased (decreased), it would result in a lower (higher) fair value.

As of December 31, 2017 and 2016, Level 3 fair value measurements of fixed income securities total $99.7 million and $117.3 million, respectively, and include $94.0 million and $114.8 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable. The Company does not develop the unobservable inputs used in measuring fair value; therefore, these are not included in the table above. However, an increase (decrease) in credit spreads for fixed income securities valued based on non-binding broker quotes would result in a lower (higher) fair value.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2017.

27


($ in thousands)
 
 
 
Total gains (losses)
included in:
 
 
 
 
 
 
Balance as of December 31, 2016
 
Net
income (1)
 
OCI
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
Assets
 
 

 
 

 
 

 
 

 
 

Fixed income securities:
 
 

 
 

 
 

 
 

 
 

Municipal
 
$
22,723

 
$
15

 
$
347

 
$
—

 
$
—

Corporate - public
 
4,091

 
—

 
(64
)
 
—

 
(1,565
)
Corporate - privately placed
 
75,713

 
4,080

 
(4,520
)
 
—

 
—

ABS - consumer and other
 
14,803

 
—

 
402

 
—

 
—

Redeemable preferred stock
 
—

 
—

 
—

 
—

 
—

Total fixed income securities
 
117,330

 
4,095

 
(3,835
)
 
—

 
(1,565
)
Equity securities
 
5,920

 
585

 
492

 
—

 
(275
)
Free-standing derivatives, net
 
311

 
(54
)
 
—

 
—

 
—

Other assets
 
109,578

 
56,712

 
—

 
—

 
—

Total recurring Level 3 assets
 
$
233,139

 
$
61,338

 
$
(3,343
)
 
$
—

 
$
(1,840
)
Liabilities
 
 

 
 

 
 

 
 

 
 

Contractholder funds: Derivatives embedded in life and annuity contracts
 
$
(7,177
)
 
$
2,381

 
$
—

 
$
—

 
$
—

Total recurring Level 3 liabilities
 
$
(7,177
)
 
$
2,381

 
$
—

 
$
—

 
$
—

 
 
Purchases
 
Sales
 
Issues
 
Settlements
 
Balance as of December 31, 2017
Assets
 
 

 
 

 
 

 
 

 
 

Fixed income securities:
 
 

 
 

 
 

 
 

 
 

Municipal
 
$
—

 
$
—

 
$
—

 
$
(1,907
)
 
$
21,178

Corporate - public
 
4,989

 
—

 
—

 
(139
)
 
7,312

Corporate - privately placed
 
—

 
(18,000
)
 
—

 
(1,295
)
 
55,978

ABS - consumer and other
 
—

 
—

 
—

 
—

 
15,205

Redeemable preferred stock
 
1

 
—

 
—

 
—

 
1

Total fixed income securities
 
4,990

 
(18,000
)
 
—

 
(3,341
)
 
99,674

Equity securities
 
1,018

 
(581
)
 
—

 
—

 
7,159

Free-standing derivatives, net
 
127

 
—

 
—

 
(48
)
 
336

Other assets
 
—

 
—

 
—

 
—

 
166,290

Total recurring Level 3 assets
 
$
6,135

 
$
(18,581
)
 
$
—

 
$
(3,389
)
 
$
273,459

Liabilities
 
 

 
 

 
 

 
 

 
 

Contractholder funds: Derivatives embedded in life and annuity contracts
 
$
—

 
$
—

 
$
—

 
$
—

 
$
(4,796
)
Total recurring Level 3 liabilities
 
$
—

 
$
—

 
$
—

 
$
—

 
$
(4,796
)
_______________
(1) The effect to net income totals $63.7 million and is reported in the Statements of Operations and Comprehensive Income as follows: $60.7 million in realized capital gains and losses, $606 thousand in net investment income, $(556) thousand in interest credited to contractholder funds and $2.9 million in contract benefits.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2016.

28


($ in thousands)
 
 
 
Total gains (losses)
included in:
 
 
 
 
 
 
Balance as of December 31, 2015
 
Net
income (1)
 
OCI
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
Assets
 
 

 
 

 
 

 
 

 
 

Fixed income securities:
 
 

 
 

 
 

 
 

 
 

Municipal
 
$
32,286

 
$
355

 
$
(495
)
 
$
—

 
$
—

Corporate - public
 
10,139

 
(2
)
 
(14
)
 
1,655

 
(7,479
)
Corporate - privately placed
 
211,858

 
(4,074
)
 
7,947

 
—

 
(131,723
)
ABS - CDO
 
9,650

 
—

 
350

 
—

 
—

ABS - consumer and other
 
15,704

 
—

 
(901
)
 
—

 
—

Total fixed income securities
 
279,637

 
(3,721
)
 
6,887

 
1,655

 
(139,202
)
Equity securities
 
6,935

 
(4,463
)
 
1,001

 
—

 
—

Free-standing derivatives, net
 
329

 
(30
)
 
—

 
—

 
—

Other assets
 
82,774

 
26,804

 
—

 
—

 
—

Total recurring Level 3 assets
 
$
369,675

 
$
18,590

 
$
7,888

 
$
1,655

 
$
(139,202
)
Liabilities
 
 

 
 

 
 

 
 

 
 

Contractholder funds: Derivatives embedded in life and annuity contracts
 
$
(7,900
)
 
$
723

 
$
—

 
$
—

 
$
—

Total recurring Level 3 liabilities
 
$
(7,900
)
 
$
723

 
$
—

 
$
—

 
$
—

 
 
Purchases
 
Sales
 
Issues
 
Settlements
 
Balance as of December 31, 2016
Assets
 
 

 
 

 
 

 
 

 
 

Fixed income securities:
 
 

 
 

 
 

 
 

 
 

Municipal
 
$
—

 
$
(7,515
)
 
$
—

 
$
(1,908
)
 
$
22,723

Corporate - public
 
—

 
—

 
—

 
(208
)
 
4,091

Corporate - privately placed
 
697

 
—

 
—

 
(8,992
)
 
75,713

ABS - CDO
 
—

 
—

 
—

 
(10,000
)
 
—

ABS - consumer and other
 
—

 
—

 
—

 
—

 
14,803

Total fixed income securities
 
697

 
(7,515
)
 
—

 
(21,108
)
 
117,330

Equity securities
 
2,987

 
(540
)
 
—

 
—

 
5,920

Free-standing derivatives, net
 
103

 
—

 
—

 
(91
)
 
311

Other assets
 
—

 
—

 
—

 
—

 
109,578

Total recurring Level 3 assets
 
$
3,787

 
$
(8,055
)
 
$
—

 
$
(21,199
)
 
$
233,139

Liabilities
 
 

 
 

 
 

 
 

 
 

Contractholder funds: Derivatives embedded in life and annuity contracts
 
$
—

 
$
—

 
$
—

 
$
—

 
$
(7,177
)
Total recurring Level 3 liabilities
 
$
—

 
$
—

 
$
—

 
$
—

 
$
(7,177
)
_______________
(1) The effect to net income totals $19.3 million and is reported in the Statements of Operations and Comprehensive Income as follows: $18.6 million in realized capital gains and losses, $44 thousand in net investment income, $(702) thousand in interest credited to contractholder funds and $1.4 million in contract benefits.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2015.

29


($ in thousands)
 
 
 
Total gains (losses)
included in:
 
 
 
 
 
 
Balance as of December 31, 2014
 
Net
income (1)
 
OCI
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
Assets
 
 

 
 

 
 

 
 

 
 

Fixed income securities:
 
 

 
 

 
 

 
 

 
 

Municipal
 
$
42,422

 
$
336

 
$
(1,309
)
 
$
—

 
$
—

Corporate - public
 
16,035

 
—

 
(654
)
 
—

 
(4,642
)
Corporate - privately placed
 
236,530

 
7,611

 
(5,368
)
 
—

 
(14,772
)
ABS - CDO
 
9,525

 
—

 
125

 
—

 
—

ABS - consumer and other
 
15,820

 
—

 
(116
)
 
—

 
—

Total fixed income securities
 
320,332

 
7,947

 
(7,322
)
 
—

 
(19,414
)
Equity securities
 
5,000

 
14

 
(565
)
 
190

 
—

Free-standing derivatives, net
 
554

 
(178
)
 
—

 
—

 
—

Other assets
 
84,561

 
(1,787
)
 
—

 
—

 
—

Total recurring Level 3 assets
 
$
410,447

 
$
5,996

 
$
(7,887
)
 
$
190

 
$
(19,414
)
Liabilities
 
 

 
 

 
 

 
 

 
 

Contractholder funds: Derivatives embedded in life and annuity contracts
 
$
(7,391
)
 
$
(509
)
 
$
—

 
$
—

 
$
—

Total recurring Level 3 liabilities
 
$
(7,391
)
 
$
(509
)
 
$
—

 
$
—

 
$
—

 
 
Purchases
 
Sales
 
Issues
 
Settlements
 
Balance as of December 31, 2015
Assets
 
 

 
 

 
 

 
 

 
 

Fixed income securities:
 
 

 
 

 
 

 
 

 
 

Municipal
 
$
—

 
$
(7,256
)
 
$
—

 
$
(1,907
)
 
$
32,286

Corporate - public
 
—

 
—

 
—

 
(600
)
 
10,139

Corporate - privately placed
 
—

 
—

 
—

 
(12,143
)
 
211,858

ABS - CDO
 
—

 
—

 
—

 
—

 
9,650

ABS - consumer and other
 
—

 
—

 
—

 
—

 
15,704

Total fixed income securities
 
—

 
(7,256
)
 
—

 
(14,650
)
 
279,637

Equity securities
 
2,569

 
(273
)
 
—

 
—

 
6,935

Free-standing derivatives, net
 
62

 
—

 
—

 
(109
)
 
329

Other assets
 
—

 
—

 
—

 
—

 
82,774

Total recurring Level 3 assets
 
$
2,631

 
$
(7,529
)
 
$
—

 
$
(14,759
)
 
$
369,675

Liabilities
 
 

 
 

 
 

 
 

 
 

Contractholder funds: Derivatives embedded in life and annuity contracts
 
$
—

 
$
—

 
$
—

 
$
—

 
$
(7,900
)
Total recurring Level 3 liabilities
 
$
—

 
$
—

 
$
—

 
$
—

 
$
(7,900
)
________
(1) The effect to net income totals $5.5 million and is reported in the Statements of Operations and Comprehensive Income as follows: $(1.7) million in realized capital gains and losses, $7.7 million in net investment income, $283 thousand in interest credited to contractholder funds and $(792) thousand in contract benefits.

Transfers between level categorizations may occur due to changes in the availability of market observable inputs, which generally are caused by changes in market conditions such as liquidity, trading volume or bid-ask spreads. Transfers between level categorizations may also occur due to changes in the valuation source. For example, in situations where a fair value quote is not provided by the Company’s independent third-party valuation service provider and as a result the price is stale or has been replaced with a broker quote whose inputs have not been corroborated to be market observable, the security is transferred into Level 3. Transfers in and out of level categorizations are reported as having occurred at the beginning of the quarter in which the transfer occurred. Therefore, for all transfers into Level 3, all realized and changes in unrealized gains and losses in the quarter of transfer are reflected in the Level 3 rollforward table.

There were no transfers between Level 1 and Level 2 during 2017, 2016 or 2015.

Transfers into Level 3 during 2016 and 2015 included situations where a fair value quote was not provided by the Company’s independent third-party valuation service provider and as a result the price was stale or had been replaced with a broker quote

30


where the inputs had not been corroborated to be market observable resulting in the security being classified as Level 3. Transfers out of Level 3 during 2017, 2016 and 2015 included situations where a broker quote was used in the prior period and a fair value quote became available from the Company’s independent third-party valuation service provider in the current period. A quote utilizing the new pricing source was not available as of the prior period, and any gains or losses related to the change in valuation source for individual securities were not significant.

The following table provides the change in unrealized gains and losses included in net income for Level 3 assets and liabilities held as of December 31.
($ in thousands)
 
2,017
 
2,016
 
2,015
Assets
 
 

 
 

 
 

Fixed income securities:
 
 

 
 

 
 

Municipal
 
$
15

 
$
16

 
$
71

Corporate
 
5

 
(4,079
)
 
7,611

Total fixed income securities
 
20

 
(4,063
)
 
7,682

Free-standing derivatives, net
 
(55
)
 
(30
)
 
(178
)
Equity securities
 
586

 
—

 
—

Other assets
 
56,712

 
26,804

 
(1,787
)
Total recurring Level 3 assets
 
$
57,263

 
$
22,711

 
$
5,717

Liabilities
 
 
 
 
 
 
Contractholder funds: Derivatives embedded in life and annuity contracts
 
$
2,381

 
$
723

 
$
(509
)
Total recurring Level 3 liabilities
 
$
2,381

 
$
723

 
$
(509
)

The amounts in the table above represent the change in unrealized gains and losses included in net income for the period of time that the asset or liability was determined to be in Level 3. These gains and losses total $59.6 million in 2017 and are reported as follows: $56.7 million in realized capital gains and losses, $606 thousand in net investment income, $(556) thousand in interest credited to contractholder funds and $2.9 million in contract benefits. These gains and losses total $23.4 million in 2016 and are reported as follows: $22.7 million in realized capital gains and losses, $14 thousand in net investment income, $(702) thousand in interest credited to contractholder funds and $1.4 million in contract benefits. These gains and losses total $5.2 million in 2015 and are reported as follows: $(2.0) million in realized capital gains and losses, $7.7 million in net investment income, $283 thousand in interest credited to contractholder funds and $(792) thousand in contract benefits.

Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value.

Financial assets
($ in thousands)
 
December 31, 2017
 
December 31, 2016
 
 
Carrying
value
 
Fair
value
 
Carrying
value
 
Fair
value
Mortgage loans
 
$
629,142

 
$
655,601

 
$
614,380

 
$
616,368

Cost method limited partnerships (1)
 
80,472

 
88,758

 
72,477

 
77,122

________
(1) Beginning January 1, 2018, due to the adoption of the new accounting standard for the recognition and measurement of financial assets and liabilities, cost method limited partnerships (excluding limited partnership interests accounted for on a cost recovery basis) will be measured at fair value with changes in fair value recognized in net income. The existing carrying value of these investments will increase to fair value with the offsetting adjustment recognized in retained income through a cumulative effect adjustment. See Note 2 for additional details on the new accounting standard.

The fair value of mortgage loans is based on discounted contractual cash flows or, if the loans are impaired due to credit reasons, the fair value of collateral less costs to sell. Risk adjusted discount rates are selected using current rates at which similar loans would be made to borrowers with similar characteristics, using similar types of properties as collateral. The fair value of cost method limited partnerships is determined using reported net asset values. The fair value measurements for mortgage loans and cost method limited partnerships are categorized as Level 3.


31


Financial liabilities
($ in thousands)
 
December 31, 2017
 
December 31, 2016
 
 
Carrying
value
 
Fair
value
 
Carrying
value
 
Fair
value
Contractholder funds on investment contracts
 
$
1,944,244

 
$
2,062,405

 
$
2,102,051

 
$
2,220,926

Liability for collateral
 
59,067

 
59,067

 
60,931

 
60,931


The fair value of contractholder funds on investment contracts is based on the terms of the underlying contracts incorporating current market-based crediting rates for similar contracts that reflect the Company’s own credit risk. Deferred annuities classified in contractholder funds are valued based on discounted cash flow models that incorporate current market-based margins and reflect the Company’s own credit risk. Immediate annuities without life contingencies are valued based on discounted cash flow models that incorporate current market-based implied interest rates and reflect the Company’s own credit risk. The fair value measurement for contractholder funds on investment contracts is categorized as Level 3.

The liability for collateral is valued at carrying value due to its short-term nature. The fair value measurement for liability for collateral is categorized as Level 2.

7.
Derivative Financial Instruments and Off-balance sheet Financial Instruments

The Company uses derivatives for risk reduction focused on managing the risks with certain assets and liabilities arising from the potential adverse impacts from changes in risk-free interest rates, changes in equity market valuations and foreign currency fluctuations.

Asset-liability management is a risk management strategy that is principally employed to balance the respective interest-rate sensitivities of the Company’s assets and liabilities. Depending upon the attributes of the assets acquired and liabilities issued, derivative instruments such as interest rate caps are utilized to change the interest rate characteristics of existing assets and liabilities to ensure the relationship is maintained within specified ranges and to reduce exposure to rising or falling interest rates. Futures and options are used for hedging the equity exposure contained in the Company’s equity indexed life product contracts that offer equity returns to contractholders. Foreign currency forwards are primarily used by the Company to reduce the foreign currency risk associated with holding foreign currency denominated investments. The Company also has a reinsurance treaty that is recorded as a derivative instrument, under which it primarily cedes reinvestment related risk on its structured settlement annuities to ALIC.

The Company also has derivatives embedded in non-derivative host contracts that are required to be separated from the host contracts and accounted for at fair value with changes in fair value of embedded derivatives reported in net income. The Company’s primary embedded derivatives are guaranteed minimum accumulation and withdrawal benefits in reinsured variable annuity contracts, and equity options in life product contracts, which provide equity returns to contractholders.

The notional amounts specified in the contracts are used to calculate the exchange of contractual payments under the agreements and are generally not representative of the potential for gain or loss on these agreements.

Fair value, which is equal to the carrying value, is the estimated amount that the Company would receive or pay to terminate the derivative contracts at the reporting date. The carrying value amounts for OTC derivatives are further adjusted for the effects, if any, of enforceable master netting agreements and are presented on a net basis, by counterparty agreement, in the Statements of Financial Position. For certain exchange traded derivatives, margin deposits are required as well as daily cash settlements of margin accounts.  As of December 31, 2017, the Company pledged $60 thousand of cash in the form of margin deposits.

Non-hedge accounting is generally used for “portfolio” level hedging strategies where the terms of the individual hedged items do not meet the strict homogeneity requirements to permit the application of hedge accounting. For non-hedge derivatives, net income includes changes in fair value and accrued periodic settlements, when applicable. With the exception of non-hedge embedded derivatives, all of the Company’s derivatives are evaluated for their ongoing effectiveness as either accounting hedge or non-hedge derivative financial instruments on at least a quarterly basis.

The following table provides a summary of the volume and fair value positions of derivative instruments as well as their reporting location in the Statement of Financial Position as of December 31, 2017. None of these derivatives are designated as accounting hedging instruments.

32


($ in thousands, except number of contracts)
 
 
 
Volume (1)
 
 
 
 
 
 
 
 
Balance sheet location
 
Notional
amount
 
Number
of
contracts
 
Fair
value,
net
 
Gross
asset
 
Gross
liability
Asset derivatives
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 

 
 

 
 

 
 

 
 

Interest rate cap agreements
 
Other investments
 
$
13,500

 
n/a

 
$
318

 
$
318

 
$
—

Equity and index contracts
 
 
 
 

 
 

 
 
 
 

 
 

Options
 
Other investments
 
—

 
105

 
2,800

 
2,800

 
—

Foreign currency contracts
 
 
 
 

 
 

 
 

 
 

 
 

Foreign currency forwards
 
Other investments
 
140

 
n/a

 
(12
)
 
—

 
(12
)
Other contracts
 
 
 
 

 
 

 
 

 
 

 
 

Structured settlement annuity reinsurance agreement
 
Other assets
 
—

 
n/a

 
166,290

 
166,290

 
—

Total asset derivatives
 
 
 
$
13,640

 
105

 
$
169,396

 
$
169,408

 
$
(12
)
Liability derivatives
 
 
 
 

 
 

 
 

 
 

 
 

Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate cap agreements
 
Other liabilities & accrued expenses
 
$
2,300

 
n/a

 
$
18

 
$
18

 
$
—

Equity and index contracts
 
 
 
 

 
 

 
 

 
 

 
 

Options and futures
 
Other liabilities & accrued expenses
 
—

 
106

 
(1,149
)
 
—

 
(1,149
)
Foreign currency contracts
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
Other liabilities & accrued expenses
 
24,622

 
 
 
(355
)
 
85

 
(440
)
Embedded derivative financial instruments
 
 
 
 

 
 

 
 

 
 

 
 

Guaranteed accumulation benefits
 
Contractholder funds
 
32,447

 
n/a

 
(2,754
)
 
—

 
(2,754
)
Guaranteed withdrawal benefits
 
Contractholder funds
 
17,774

 
n/a

 
(321
)
 
—

 
(321
)
Equity-indexed options in life product contracts
 
Contractholder funds
 
28,833

 
n/a

 
(1,721
)
 
—

 
(1,721
)
Total liability derivatives
 
 
 
105,976

 
106

 
(6,282
)
 
$
103

 
$
(6,385
)
Total derivatives
 
 
 
$
119,616

 
211

 
$
163,114

 
 

 
 

_________________
(1)
Volume for OTC derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)

The following table provides a summary of the volume and fair value positions of derivative instruments as well as their reporting location in the Statement of Financial Position as of December 31, 2016. None of these derivatives are designated as accounting hedging instruments.
($ in thousands, except number of contracts)
 
 
 
Volume (1)
 
 
 
 
 
 
 
 
Balance sheet location
 
Notional
amount
 
Number
of
contracts
 
Fair
value,
net
 
Gross
asset
 
Gross
liability
Asset derivatives
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 

 
 

 
 

 
 

 
 

Interest rate cap agreements
 
Other investments
 
$
18,800

 
n/a

 
$
311

 
$
311

 
$
—

Equity and index contracts
 
 
 
 

 
 

 
 

 
 

 
 

Options
 
Other investments
 
—

 
92

 
1,846

 
1,846

 
—

Foreign currency contracts
 
 
 
 

 
 

 
 

 
 

 
 

Foreign currency forwards
 
Other investments
 
15,504

 
n/a

 
423

 
568

 
(145
)
Other contracts
 
 
 
 

 
 

 
 

 
 

 
 

Structured settlement annuity reinsurance agreement
 
Other assets
 
—

 
n/a

 
109,578

 
109,578

 
—

Total asset derivatives
 
 
 
$
34,304

 
92

 
$
112,158

 
$
112,303

 
$
(145
)
Liability derivatives
 
 
 
 

 
 

 
 

 
 

 
 

Equity and index contracts
 
 
 
 

 
 

 
 

 
 

 
 

Options and futures
 
Other liabilities & accrued expenses
 
$
—

 
94

 
$
(760
)
 
$
—

 
$
(760
)
Embedded derivative financial instruments
 
 
 
 

 
 

 
 

 
 

 
 

Guaranteed accumulation benefits
 
Contractholder funds
 
66,584

 
n/a

 
(5,710
)
 
—

 
(5,710
)
Guaranteed withdrawal benefits
 
Contractholder funds
 
19,083

 
n/a

 
(302
)
 
—

 
(302
)
Equity-indexed options in life product contracts
 
Contractholder funds
 
21,995

 
n/a

 
(1,165
)
 
—

 
(1,165
)
Total liability derivatives
 
 
 
107,662

 
94

 
(7,937
)
 
$
—

 
$
(7,937
)
Total derivatives
 
 
 
$
141,966

 
186

 
$
104,221

 
 

 
 

_________________

33


(1)
Volume for OTC derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)

The following table provides gross and net amounts for the Company’s OTC derivatives, all of which are subject to enforceable master netting agreements.
($ in thousands)
 
 
 
Offsets
 
 
 
 
 
 
 
 
Gross
amount
 
Counter-
party
netting
 
Cash
collateral
(received)
pledged
 
Net
amount on
balance
sheet
 
Securities
collateral
(received)
pledged
 
Net
amount
December 31, 2017
 
 

 
 

 
 

 
 

 
 

 
 

Asset derivatives
 
$
421

 
$
(115
)
 
$
—

 
$
306

 
$
—

 
$
306

Liability derivatives
 
(452
)
 
115

 
230

 
(107
)
 
—

 
(107
)
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

Asset derivatives
 
$
879

 
$
(145
)
 
$
—

 
$
734

 
$
—

 
$
734

Liability derivatives
 
(145
)
 
145

 
—

 
—

 
—

 
—


The following tables present gains and losses from valuation and settlements reported on derivatives not designated as accounting hedging instruments in the Statements of Operations and Comprehensive Income.
($ in thousands)
 
Realized capital gains and losses
 
Contract
benefits
 
Interest credited to contractholder funds
 
Total gain (loss) recognized in net income on derivatives
2,017
 
 
 
 
 
 
 
 
Interest rate contracts
 
$
(54
)
 
$
—

 
$
—

 
$
(54
)
Equity and index contracts
 
—

 
—

 
1,289

 
1,289

Embedded derivative financial instruments
 
—

 
2,937

 
(556
)
 
2,381

Foreign currency contracts
 
(697
)
 
—

 
—

 
(697
)
Other contracts - structured settlement annuity reinsurance agreement
 
53,257

 
—

 
—

 
53,257

Total
 
$
52,506

 
$
2,937

 
$
733

 
$
56,176

2,016
 
 
 
 
 
 
 
 
Interest rate contracts
 
$
(30
)
 
$
—

 
$
—

 
$
(30
)
Equity and index contracts
 
—

 
—

 
405

 
405

Embedded derivative financial instruments
 
—

 
1,425

 
(702
)
 
723

Foreign currency contracts
 
431

 
—

 
—

 
431

Other contracts - structured settlement annuity reinsurance agreement
 
23,380

 
—

 
—

 
23,380

Total
 
$
23,781

 
$
1,425

 
$
(297
)
 
$
24,909

2,015
 
 
 
 
 
 
 
 
Interest rate contracts
 
$
(178
)
 
$
—

 
$
—

 
$
(178
)
Equity and index contracts
 
—

 
—

 
(155
)
 
(155
)
Embedded derivative financial instruments
 
—

 
(792
)
 
283

 
(509
)
Foreign currency contracts
 
427

 
—

 
—

 
427

Other contracts - structured settlement annuity reinsurance agreement
 
(5,172
)
 
—

 
—

 
(5,172
)
Total
 
$
(4,923
)
 
$
(792
)
 
$
128

 
$
(5,587
)

The Company manages its exposure to credit risk by utilizing highly rated counterparties, establishing risk control limits, executing legally enforceable master netting agreements (“MNAs”) and obtaining collateral where appropriate. The Company uses MNAs for OTC derivative transactions that permit either party to net payments due for transactions and collateral is either pledged or obtained when certain predetermined exposure limits are exceeded. As of December 31, 2017, the Company pledged $230 thousand in cash to counterparties as collateral posted under the MNA’s for contracts without credit-risk contingent features. The Company did not have any collateral pledged from counterparties. The Company has not incurred any losses on derivative

34


financial instruments due to counterparty nonperformance. Other derivatives, including futures and option contracts, are traded on organized exchanges which require margin deposits and guarantee the execution of trades, thereby mitigating any potential credit risk.

Counterparty credit exposure represents the Company’s potential loss if all of the counterparties concurrently fail to perform under the contractual terms of the contracts and all collateral, if any, becomes worthless. This exposure is measured by the fair value of OTC derivative contracts with a positive fair value at the reporting date reduced by the effect, if any, of legally enforceable master netting agreements.

The following table summarizes the counterparty credit exposure as of December 31 by counterparty credit rating as it relates to the Company’s OTC derivatives.
($ in thousands)
 
2,017
 
2,016
Rating (1)
 
Number of counter-parties
 
Notional amount (2)
 
Credit exposure (2)
 
Exposure, net of collateral (2)
 
Number of counter-parties
 
Notional amount (2)
 
Credit exposure (2)
 
Exposure, net of collateral (2)
A+
 
2

 
$
13,640

 
$
305

 
$
305

 
4

 
$
34,304

 
$
734

 
$
734

_________________
(1)
Rating is the lower of S&P or Moody’s ratings.
(2)
Only OTC derivatives with a net positive fair value are included for each counterparty.

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 of the derivative financial instruments the Company currently holds, as these instruments may become less valuable due to adverse changes in market conditions. To limit this risk, the Company’s senior management has established risk control limits. In addition, changes in fair value of the derivative financial instruments that the Company uses for risk management purposes are generally offset by the change in the fair value or cash flows of the hedged risk component of the related assets, liabilities or forecasted transactions.

Certain of the Company’s derivative instruments contain credit-risk-contingent termination events, cross-default provisions and credit support annex agreements. Credit-risk-contingent termination events allow the counterparties to terminate the derivative agreement or a specific trade on certain dates if the Company’s financial strength credit ratings by Moody’s or S&P fall below a certain level. Credit-risk-contingent cross-default provisions allow the counterparties to terminate the derivative agreement if the Company defaults by pre-determined threshold amounts on certain debt instruments. Credit-risk-contingent credit support annex agreements specify the amount of collateral the Company must post to counterparties based on the Company’s financial strength credit ratings by Moody’s or S&P, or in the event the Company is no longer rated by either Moody’s or S&P.

The following summarizes the fair value of derivative instruments with termination, cross-default or collateral credit-risk-contingent features that are in a liability position as of December 31, as well as the fair value of assets that are netted against the liability in accordance with provisions within legally enforceable MNAs.

($ in thousands)
 
2,017
 
2,016
Gross liability fair value of contracts containing credit-risk-contingent features
 
$
12

 
$
—

Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs
 
(12
)
 
—

Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently
 
$
—

 
$
—

Off-balance sheet financial instruments

The contractual amounts of off-balance-sheet financial instruments relating to commitments to invest in limited partnership interests totaled $174.5 million and $178.9 million as of December 31, 2017 and 2016, respectively. The contractual amounts of off-balance-sheet financial instruments relating to private placement commitments totaled $75 thousand as of both December 31, 2017 and 2016. The contractual amounts represent the amount at risk if the contract is fully drawn upon, the counterparty defaults and the value of any underlying security becomes worthless. Unless noted otherwise, the Company does not require collateral or other security to support off-balance sheet financial instruments with credit risk.

Commitments to invest in limited partnership interests represent agreements to acquire new or additional participation in certain limited partnership investments. The Company enters into these agreements in the normal course of business. Because the investments in limited partnerships are not actively traded, it is not practical to estimate the fair value of these commitments.

35



Private placement commitments represent commitments to purchase private placement private equity securities at a future date. The Company enters into these agreements in the normal course of business. The fair value of these commitments generally cannot be estimated on the date the commitment is made as the terms and conditions of the underlying private placement securities are not yet final. Because the private equity securities are not actively traded, it is not practical to estimate fair value of the commitments.

8. Reserve for Life-Contingent Contract Benefits and Contractholder Funds

As of December 31, the reserve for life-contingent contract benefits consists of the following:
($ in thousands)
 
2017
 
2016
Immediate fixed annuities:
 
 

 
 

Structured settlement annuities
 
$
2,023,451

 
$
1,838,458

Other immediate fixed annuities
 
61,756

 
61,645

Traditional life insurance
 
242,197

 
226,909

Accident and health insurance
 
20,222

 
12,160

Other
 
1,340

 
1,716

Total reserve for life-contingent contract benefits
 
$
2,348,966

 
$
2,140,888


The following table highlights the key assumptions generally used in calculating the reserve for life-contingent contract benefits.
 
 
 
 
 
 
 
 
Product
 
Mortality
 
Interest rate
 
Estimation method
Structured settlement annuities
 
U.S. population with projected calendar year improvements; mortality rates adjusted for each impaired life based on reduction in life expectancy
 
Interest rate assumptions range from 3.3% to 9.0%
 
Present value of contractually specified future benefits
Other immediate fixed annuities
 
1983 individual annuity mortality table; Annuity 2000 mortality table with internal modifications; Annuity 2000 mortality table
 
Interest rate assumptions range from 0% to 11.5%
 
Present value of expected future benefits based on historical experience
Traditional life insurance
 
Actual company experience plus loading
 
Interest rate assumptions range from 3.0% to 8.0%
 
Net level premium reserve method using the Company’s withdrawal experience rates; includes reserves for unpaid claims
Accident and health insurance
 
Actual company experience plus loading
 
Interest rate assumptions range from 3.5% to 6.0%
 
Unearned premium; additional contract reserves for mortality risk and unpaid claims
Other:
   Variable annuity
   guaranteed minimum
   death benefits (1)
 
Annuity 2012 mortality table with internal modifications
 
Interest rate assumptions range from 2.0% to 5.8%
 
Projected benefit ratio applied to cumulative assessments
______________________
(1)
In 2006, the Company disposed of its variable annuity business through a reinsurance agreement with The Prudential Insurance Company of America, a subsidiary of Prudential Financial, Inc. (collectively “Prudential”).

To the extent that unrealized gains on fixed income securities would result in a premium deficiency had those gains actually been realized, a premium deficiency reserve is recorded for certain immediate annuities with life contingencies. A liability of $222.3 million and $56.4 million is included in the reserve for life-contingent contract benefits with respect to this deficiency as of December 31, 2017 and 2016, respectively. The offset to this liability is recorded as a reduction of the unrealized net capital gains included in AOCI.

36


As of December 31, contractholder funds consist of the following:
($ in thousands)
 
2017
 
2016
Interest-sensitive life insurance
 
$
744,610

 
$
728,841

Investment contracts:
 
 

 
 

Fixed annuities
 
2,091,214

 
2,261,237

Other investment contracts
 
39,060

 
28,655

Total contractholder funds
 
$
2,874,884

 
$
3,018,733


The following table highlights the key contract provisions relating to contractholder funds:
 
 
 
 
 
 
Product
 
Interest rate
 
Withdrawal/surrender charges
Interest-sensitive life insurance
 
Interest rates credited range from 0% to 10.5% for equity-indexed life (whose returns are indexed to the S&P 500) and 2.7% to 5.1% for all other products
 
Either a percentage of account balance or dollar amount grading off generally over 20 years
Fixed annuities
 
Interest rates credited range from 0% to 9.0% for immediate annuities and 1.0% to 5.0% for other fixed annuities
 
Either a declining or a level percentage charge generally over ten years or less. Additionally, approximately 12.4% of fixed annuities are subject to market value adjustment for discretionary withdrawals
Other investment contracts:
Guaranteed minimum income, accumulation and withdrawal benefits on variable annuities (1) and secondary guarantees on interest-sensitive life insurance and fixed annuities
 
Interest rates used in establishing reserves range from 1.7% to 10.3%
 
Withdrawal and surrender charges are based on the terms of the related interest-sensitive life insurance or fixed annuity contract
_______________________
(1)
In 2006, the Company disposed of its variable annuity business through a reinsurance agreement with Prudential.

Contractholder funds activity for the years ended December 31 is as follows:
($ in thousands)
 
2,017
 
2,016
 
2,015
Balance, beginning of year
 
$
3,018,733

 
$
3,185,887

 
$
3,402,594

Deposits
 
103,107

 
105,671

 
103,041

Interest credited
 
97,355

 
102,805

 
108,730

Benefits
 
(108,819
)
 
(122,109
)
 
(137,834
)
Surrenders and partial withdrawals
 
(166,388
)
 
(172,856
)
 
(211,171
)
Contract charges
 
(74,733
)
 
(73,866
)
 
(72,575
)
Net transfers from separate accounts
 
54

 
133

 
252

Other adjustments
 
5,575

 
(6,932
)
 
(7,150
)
Balance, end of year
 
$
2,874,884

 
$
3,018,733

 
$
3,185,887


The Company offered various guarantees to variable annuity contractholders. In 2006, the Company disposed of its variable annuity business through a reinsurance agreement with Prudential. Liabilities for variable contract guarantees related to death benefits are included in the reserve for life-contingent contract benefits and the liabilities related to the income, withdrawal and accumulation benefits are included in contractholder funds. All liabilities for variable contract guarantees are reported on a gross basis on the balance sheet with a corresponding reinsurance recoverable asset.

Absent any contract provision wherein the Company guarantees either a minimum return or account value upon death, a specified contract anniversary date, partial withdrawal or annuitization, variable annuity and variable life insurance contractholders bear the investment risk that the separate accounts’ funds may not meet their stated investment objectives. The account balances of variable annuities contracts’ separate accounts with guarantees included $243.7 million and $233.8 million of equity, fixed income and balanced mutual funds and $30.6 million and $39.8 million of money market mutual funds as of December 31, 2017 and 2016, respectively.

37



The table below presents information regarding the Company’s variable annuity contracts with guarantees. The Company’s variable annuity contracts may offer more than one type of guarantee in each contract; therefore, the sum of amounts listed exceeds the total account balances of variable annuity contracts’ separate accounts with guarantees.
($ in millions)
 
December 31,
 
 
2017
 
2016
In the event of death
 
 

 
 

Separate account value
 
$
274.3

 
$
273.6

Net amount at risk (1)
 
$
6.9

 
$
8.5

Average attained age of contractholders
 
67 years

 
66 years

At annuitization (includes income benefit guarantees)
 
 

 
 

Separate account value
 
$
20.5

 
$
19.8

Net amount at risk (2)
 
$
2.1

 
$
2.5

Weighted average waiting period until annuitization options available
 
None

 
None

For cumulative periodic withdrawals
 
 

 
 

Separate account value
 
$
17.4

 
$
18.6

Net amount at risk (3)
 
$
0.4

 
$
0.4

Accumulation at specified dates
 
 

 
 

Separate account value
 
$
32.3

 
$
65.3

Net amount at risk (4)
 
$
0.4

 
$
1.4

Weighted average waiting period until guarantee date
 
4 years

 
2 years

________________________
(1)
Defined as the estimated current guaranteed minimum death benefit in excess of the current account balance as of the balance sheet date.
(2)
Defined as the estimated present value of the guaranteed minimum annuity payments in excess of the current account balance.
(3)
Defined as the estimated current guaranteed minimum withdrawal balance (initial deposit) in excess of the current account balance as of the balance sheet date.
(4)
Defined as the estimated present value of the guaranteed minimum accumulation balance in excess of the current account balance.

The liability for death and income benefit guarantees is equal to a benefit ratio multiplied by the cumulative contract charges earned, plus accrued interest less contract excess guarantee benefit payments. The benefit ratio is calculated as the estimated present value of all expected contract excess guarantee benefits divided by the present value of all expected contract charges. The establishment of reserves for these guarantees requires the projection of future fund values, mortality, persistency and customer benefit utilization rates. These assumptions are periodically reviewed and updated. For guarantees related to death benefits, benefits represent the projected excess guaranteed minimum death benefit payments. For guarantees related to income benefits, benefits represent the present value of the minimum guaranteed annuitization benefits in excess of the projected account balance at the time of annuitization.

Projected benefits and contract charges used in determining the liability for certain guarantees are developed using models and stochastic scenarios that are also used in the development of estimated expected gross profits. Underlying assumptions for the liability related to income benefits include assumed future annuitization elections based on factors such as the extent of benefit to the potential annuitant, eligibility conditions and the annuitant’s attained age. The liability for guarantees is re-evaluated periodically, and adjustments are made to the liability balance through a charge or credit to contract benefits.

Guarantees related to withdrawal and accumulation benefits are considered to be derivative financial instruments; therefore, the liability for these benefits is established based on its fair value.


38


The following table summarizes the liabilities for guarantees:
($ in thousands)
 
Liability for guarantees related to death benefits and interest-sensitive life products
 
Liability for guarantees related to income benefits
 
Liability for guarantees related to accumulation and withdrawal benefits
 
Total
Balance, December 31, 2016 (1)
 
$
23,256

 
$
961

 
$
6,012

 
$
30,229

Less reinsurance recoverables
 
1,574

 
956

 
6,012

 
8,542

Net balance as of December 31, 2016
 
21,682

 
5

 
—

 
21,687

Incurred guarantee benefits
 
4,905

 
—

 
—

 
4,905

Paid guarantee benefits
 
—

 
—

 
—

 
—

Net change
 
4,905

 
—

 
—

 
4,905

Net balance as of December 31, 2017
 
26,587

 
5

 
—

 
26,592

Plus reinsurance recoverables
 
1,340

 
457

 
3,075

 
4,872

Balance, December 31, 2017 (2)
 
$
27,927

 
$
462

 
$
3,075

 
$
31,464

Balance, December 31, 2015 (3)
 
$
19,532

 
$
1,579

 
$
7,437

 
$
28,548

Less reinsurance recoverables
 
1,735

 
1,575

 
7,437

 
10,747

Net balance as of December 31, 2015
 
17,797

 
4

 
—

 
17,801

Incurred guarantee benefits
 
3,885

 
1

 
—

 
3,886

Paid guarantee benefits
 
—

 
—

 
—

 
—

Net change
 
3,885

 
1

 
—

 
3,886

Net balance as of December 31, 2016
 
21,682

 
5

 
—

 
21,687

Plus reinsurance recoverables
 
1,574

 
956

 
6,012

 
8,542

Balance, December 31, 2016 (1)
 
$
23,256

 
$
961

 
$
6,012

 
$
30,229

_______________
(1)
Included in the total liability balance as of December 31, 2016 are reserves for variable annuity death benefits of $1.6 million, variable annuity income benefits of $0.9 million, variable annuity accumulation benefits of $5.7 million, variable annuity withdrawal benefits of $0.3 million and other guarantees of $21.7 million.
(2)
Included in the total liability balance as of December 31, 2017 are reserves for variable annuity death benefits of $1.3 million, variable annuity income benefits of $0.5 million, variable annuity accumulation benefits of $2.8 million, variable annuity withdrawal benefits of $0.3 million and other guarantees of $26.6 million.
(3)
Included in the total liability balance as of December 31, 2015 are reserves for variable annuity death benefits of $1.7 million, variable annuity income benefits of $1.6 million, variable annuity accumulation benefits of $6.8 million, variable annuity withdrawal benefits of $0.7 million and other guarantees of $17.8 million.
9. Reinsurance

The Company reinsures certain of its risks to unaffiliated reinsurers and ALIC under yearly renewable term, coinsurance and modified coinsurance agreements. These agreements result in a passing of the agreed-upon percentage of risk to the reinsurer in exchange for negotiated reinsurance premium payments. Modified coinsurance is similar to coinsurance, except that the cash and investments that support the liability for contract benefits are not transferred to the assuming company and settlements are made on a net basis between the companies.

As of December 31, 2017 and 2016, for certain term life insurance policies, the Company ceded up to 90% of the mortality risk depending on the year of policy issuance. Further, the Company cedes the mortality risk associated with coverage in excess of $2 million per life to ALIC. Prior to July 1, 2013, the Company ceded mortality risk in excess of $250 thousand per life to ALIC.

In addition, the Company has used reinsurance to effect the disposition of certain blocks of business. The Company had reinsurance recoverables of $174.6 million and $179.9 million as of December 31, 2017 and 2016, respectively, due from Prudential related to the disposal of its variable annuity business that was effected through reinsurance agreements. In 2017, premiums and contract charges of $5.4 million, contract benefits of $(3.3) million, interest credited to contractholder funds of $4.8 million, and operating costs and expenses of $0.9 million were ceded to Prudential. In 2016, premiums and contract charges of $5.8 million, contract benefits of $(0.4) million, interest credited to contractholder funds of $4.8 million, and operating costs and expenses of $1.1 million were ceded to Prudential. In 2015, premiums and contract charges of $7.1 million, contract benefits of $1.4 million, interest credited to contractholder funds of $4.5 million, and operating costs and expenses of $1.1 million were ceded to Prudential. In addition, as of December 31, 2017 and 2016 the Company had reinsurance recoverables of $390 thousand and $162 thousand,

39


respectively, due from a subsidiary of Citigroup (Triton Insurance Company) in connection with the disposition of the direct response distribution business in 2003.

As of December 31, 2017, the gross life insurance in force was $42.33 billion of which $524.9 million and $8.62 billion was ceded to affiliated and unaffiliated reinsurers, respectively.

The effects of reinsurance on premiums and contract charges for the years ended December 31 are as follows:
($ in thousands)
 
2017
 
2016
 
2015
Direct
 
$
185,875

 
$
163,745

 
$
158,836

Assumed - non-affiliate
 
672

 
652

 
741

Ceded
 
 
 
 
 
 
Affiliate
 
(1,730
)
 
(1,607
)
 
(1,379
)
Non-affiliate
 
(17,705
)
 
(18,200
)
 
(20,032
)
Premiums and contract charges, net of reinsurance
 
$
167,112

 
$
144,590

 
$
138,166


The effects of reinsurance on contract benefits for the years ended December 31 are as follows:
($ in thousands)
 
2017
 
2016
 
2015
Direct
 
$
237,998

 
$
219,527

 
$
226,424

Assumed - non-affiliate
 
550

 
900

 
1,088

Ceded
 
 
 
 
 
 
Affiliate
 
(882
)
 
1,331

 
(7,998
)
Non-affiliate
 
(7,173
)
 
(13,355
)
 
(15,920
)
Contract benefits, net of reinsurance
 
$
230,493

 
$
208,403

 
$
203,594


The effects of reinsurance on interest credited to contractholder funds for the years ended December 31 are as follows:
($ in thousands)
 
2017
 
2016
 
2015
Direct
 
$
102,164

 
$
107,522

 
$
113,166

Assumed - non-affiliate
 
18

 
9

 
16

Ceded
 
 
 
 
 
 
Non-affiliate
 
(4,805
)
 
(4,770
)
 
(4,545
)
Interest credited to contractholder funds, net of reinsurance
 
$
97,377

 
$
102,761

 
$
108,637


In addition to amounts included in the table above are reinsurance premiums ceded to ALIC of $3.5 million in 2017 and $3.4 in each of 2016 and 2015 under the terms of the structured settlement annuity reinsurance agreement (see Note 4).
10. Deferred Policy Acquisition and Sales Inducement Costs

Deferred policy acquisition costs for the years ended December 31 are as follows:
($ in thousands)
 
2017
 
2016
 
2015
Balance, beginning of year
 
$
137,358

 
$
141,189

 
$
135,282

Acquisition costs deferred
 
24,522

 
16,939

 
15,611

Amortization charged to income
 
(16,992
)
 
(16,127
)
 
(16,603
)
Effect of unrealized gains and losses
 
1,445

 
(4,643
)
 
6,899

Balance, end of year
 
$
146,333

 
$
137,358

 
$
141,189


DSI activity, which primarily relates to interest-sensitive life contracts, for the years ended December 31 was as follows:

40


($ in thousands)
 
2017
 
2016
 
2015
Balance, beginning of year
 
$
2,265

 
$
2,349

 
$
2,059

Sales inducements deferred
 
167

 
170

 
285

Amortization charged to income
 
(188
)
 
(126
)
 
(192
)
Effect of unrealized gains and losses
 
34

 
(128
)
 
197

Balance, end of year
 
$
2,278

 
$
2,265

 
$
2,349

11. Guarantees and Contingent Liabilities

Guaranty funds

Under state insurance guaranty fund laws, insurers doing business in a state can be assessed, up to prescribed limits, for certain obligations of insolvent insurance companies to policyholders and claimants. Amounts assessed to each company are typically related to its proportion of business written in each state. The Company’s policy is to accrue assessments when the entity for which the insolvency relates has met its state of domicile’s statutory definition of insolvency and the amount of the loss is reasonably estimable. In most states, the definition is met with a declaration of financial insolvency by a court of competent jurisdiction. In certain states there must also be a final order of liquidation. As of December 31, 2017 and 2016, the liability balance included in other liabilities and accrued expenses was $760 thousand and $724 thousand, respectively. The related premium tax offsets included in other assets were $3.6 million as of both December 31, 2017 and 2016.

Guarantees

In the normal course of business, the Company provides standard indemnifications to contractual counterparties in connection with numerous transactions, including acquisitions and divestitures. The types of indemnifications typically provided include indemnifications for breaches of representations and warranties, taxes and certain other liabilities, such as third party lawsuits. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business based on an assessment that the risk of loss would be remote. The terms of the indemnifications vary in duration and nature. In many cases, the maximum obligation is not explicitly stated and the contingencies triggering the obligation to indemnify have not occurred and are not expected to occur. Consequently, the maximum amount of the obligation under such indemnifications is not determinable. Historically, the Company has not made any material payments pursuant to these obligations.

Related to the disposal through reinsurance of the Company’s variable annuity business to Prudential in 2006, the Company, ALIC and the Corporation have agreed to indemnify Prudential for certain pre-closing contingent liabilities (including extra-contractual liabilities of the Company and liabilities specifically excluded from the transaction) that the Company and ALIC have agreed to retain. In addition, the Company, ALIC and the Corporation will each indemnify Prudential for certain post-closing liabilities that may arise from the acts of the Company and ALIC and their agents, including certain liabilities arising from the Company’s and ALIC’s provision of transition services. The reinsurance agreements contain no limitations or indemnifications with regard to insurance risk transfer, and transferred all of the future risks and responsibilities for performance on the underlying variable annuity contracts to Prudential, including those related to benefit guarantees. Management does not believe this agreement will have a material effect on results of operations, cash flows or financial position of the Company.

The aggregate liability balance related to all guarantees was not material as of December 31, 2017.

Regulation and Compliance

The Company is subject to extensive laws, regulations and regulatory actions. From time to time, regulatory authorities or legislative bodies seek to impose additional regulations regarding agent and broker compensation, regulate the nature of and amount of investments, impose fines and penalties for unintended errors or mistakes, and otherwise expand overall regulation of insurance products and the insurance industry. In addition, the Company is subject to laws and regulations administered and enforced by federal agencies and other organizations, including but not limited to the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor, and the U.S. Department of Justice. The Company has established procedures and policies to facilitate compliance with laws and regulations, to foster prudent business operations, and to support financial reporting. The Company routinely reviews its practices to validate compliance with laws and regulations and with internal procedures and policies. As a result of these reviews, from time to time the Company may decide to modify some of its procedures and policies. Such modifications, and the reviews that led to them, may be accompanied by payments being made and costs being incurred. The ultimate changes and eventual effects of these actions on the Company’s business, if any, are uncertain.

41


12. Income Taxes

The Company joins with the Corporation and its other subsidiaries (the “Allstate Group”) in the filing of a consolidated federal income tax return and is party to a federal income tax allocation agreement (the “Allstate Tax Sharing Agreement”). Under the Allstate Tax Sharing Agreement, the Company pays to or receives from the Corporation the amount, if any, by which the Allstate Group’s federal income tax liability is affected by virtue of inclusion of the Company in the consolidated federal income tax return. Effectively, this results in the Company’s annual income tax provision being computed, with adjustments, as if the Company filed a separate return.

The Internal Revenue Service (“IRS”) is currently examining the Allstate Group’s 2013 and 2014 federal income tax returns and the exam is expected to be complete in the first quarter of 2018.  The IRS has also begun their examination of the Allstate Group’s 2015 and 2016 federal income tax returns.  The Allstate Group’s tax years prior to 2013 have been examined by the IRS and the statute of limitations has expired on those years.  Any adjustments that may result from IRS examinations of the Company’s tax returns are not expected to have a material effect on the results of operations, cash flows or financial position of the Company.

The Company had no liability for unrecognized tax benefits as of December 31, 2017, 2016 or 2015, and believes it is reasonably possible that the liability balance will not significantly increase within the next twelve months. No amounts have been accrued for interest or penalties.

Tax Reform

On December 22, 2017, Public Law 115-97, known as the Tax Cuts and Jobs Act of 2017 (“Tax Legislation”) became effective. The Tax Legislation impacts the Company generally in three areas:

1.Amends the U.S. Internal Revenue Code of 1986, as amended, which among other items, permanently reduces the corporate income tax rate from a maximum of 35% to 21% beginning January 1, 2018. 

2.Contains several other provisions, such as limitations of deductibility of meals and entertainment and lobbying expenses and changes to the dividends received deduction.

3.Affects the timing of certain tax deductions for reserves and deferred acquisition costs, but does not impact the Company’s overall income tax expense.

Deferred income taxes result from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are adjusted through income tax expense as changes in tax laws or rates are enacted.

The Company revalued its deferred tax assets and liabilities at the new corporate income tax rate. The Company recorded a net tax benefit of $102.5 million, recognized as a reduction to income tax expense in the Company’s Consolidated Statements of Operations for the year ended December 31, 2017. The net benefit was primarily due to re-measurement of the Company’s deferred tax assets and liabilities. The Company’s effective income tax rate benefit for 2017 was 29.7% and included this one-time benefit of 65.1%.

The impact of the Tax Legislation may differ from the Company’s preliminary estimates due to, among other things, changes in interpretations and assumptions the Company has made, guidance that may be issued and actions the Company may take as a result of the Tax Legislation. Any potential adjustments made could be material in relation to the preliminary estimates recorded.

The components of the deferred income tax assets and liabilities as of December 31 are as follows:

42


($ in thousands)
 
2017
 
2016
Deferred assets
 
 
 
 
Unrealized foreign currency translation adjustments on limited partnerships
 
$
—

 
$
378

Accrued liabilities
 
25

 
41

Other assets
 
5

 
55

Total deferred assets (1)
 
30

 
474

Deferred liabilities
 
 

 
 

Difference in tax bases of investments
 
(66,807
)
 
(77,505
)
Unrealized net capital gains
 
(37,520
)
 
(98,184
)
Life and annuity reserves
 
(28,526
)
 
(40,491
)
DAC
 
(19,240
)
 
(29,807
)
Unrealized foreign currency translation adjustments on limited partnerships
 
(552
)
 
—

Other liabilities
 
(1,111
)
 
(2,139
)
Total deferred liabilities
 
(153,756
)
 
(248,126
)
Net deferred liability (1)
 
$
(153,726
)
 
$
(247,652
)
___________
(1)
Changes in deferred tax assets and liabilities primarily relate to the Tax Legislation.

Although realization is not assured, management believes it is more likely than not that the deferred tax assets will be realized based on the Company’s assessment that the deductions ultimately recognized for tax purposes will be fully utilized.

The components of income tax (benefit) expense for the years ended December 31 are as follows:
($ in thousands)
 
2017
 
2016
 
2015
Current
 
$
12,837

 
$
9,694

 
$
31,062

Deferred
 
(59,572
)
 
18,314

 
9,915

Total income tax (benefit) expense
 
$
(46,735
)
 
$
28,008

 
$
40,977


The Company paid income taxes of $6.8 million, $9.6 million and $53.3 million in 2017, 2016 and 2015, respectively.

A reconciliation of the statutory federal income tax rate to the effective income tax rate on income from operations for the years ended December 31 is as follows:
 
 
2017
 
2016
 
2015
Statutory federal income tax rate - expense
 
35.0
 %
 
35.0
%
 
35.0
%
State income taxes
 
0.7

 
1.2

 
1.5

Tax Legislation adjustment
 
(65.1
)
 
—

 
—

Other
 
(0.3
)
 
(0.9
)
 
(0.7
)
Effective income tax rate - (benefit) expense
 
(29.7
)%
 
35.3
%
 
35.8
%
13. Statutory Financial Information and Dividend Limitations

The Company prepares its statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the State of New York. Prescribed statutory accounting practices include a variety of publications of the National Association of Insurance (“NAIC”), as well as state laws, regulations and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed.

The State of New York requires insurance companies domiciled in its state to prepare statutory-basis financial statements in conformity with the NAIC Accounting Practices and Procedures Manual, subject to any deviations prescribed or permitted by the State of New York Insurance Superintendent. Statutory accounting practices differ from GAAP primarily since they require charging policy acquisition and certain sales inducement costs to expense as incurred, establishing life insurance reserves based on different actuarial assumptions, and valuing certain investments and establishing deferred taxes on a different basis.

Statutory net income (loss) was $50.8 million, $(12.6) million and $(63.9) million in 2017, 2016 and 2015, respectively. Statutory capital and surplus was $603.1 million and $520.1 million as of December 31, 2017 and 2016, respectively.

43


Dividend Limitations

The ability of the Company to pay dividends is dependent on business conditions, income, cash requirements and other relevant factors. The payment of shareholder dividends by the Company without the prior approval of the New York Department of Financial Services (“NYDFS”) is limited to formula amounts based on capital and surplus and net gain from operations excluding realized capital gains and losses, determined in conformity with statutory accounting practices, as well as the timing and amount of dividends paid in the preceding twelve months. The Company did not pay any dividends in 2017. The maximum amount of dividends the Company will be able to pay without prior NYDFS approval at a given point in time during 2017 is $60.3 million. Any dividend must be paid out of unassigned surplus excluding unrealized appreciation from investments, which totaled $353.0 million as of December 31, 2017, and cannot result in capital and surplus being less than the minimum amount required by law.

Under state insurance laws, insurance companies are required to maintain paid up capital of not less than the minimum capital requirement applicable to the types of insurance they are authorized to write. Insurance companies are also subject to risk-based capital (“RBC”) requirements adopted by state insurance regulators. A company’s “authorized control level RBC” is calculated using various factors applied to certain financial balances and activity. Companies that do not maintain adjusted statutory capital and surplus at a level in excess of the company action level RBC, which is two times authorized control level RBC, are required to take specified actions. Company action level RBC is significantly in excess of the minimum capital requirements. Total adjusted statutory capital and surplus and authorized control level RBC of the Company were $656.5 million and $74.4 million, respectively, as of December 31, 2017.
14. Benefit Plans

Pension and other postretirement plans

Defined benefit pension plans, sponsored by the Corporation, cover most full-time employees, certain part-time employees and employee-agents. Benefits under the pension plans are based upon the employee’s length of service and eligible annual compensation. The cost allocated to the Company for the pension plans was $1.2 million, $1.0 million and $804 thousand in 2017, 2016 and 2015, respectively.

The Corporation has reserved the right to modify or terminate its benefit plans at any time and for any reason.

Allstate 401(k) Savings Plan

Employees of AIC are eligible to become members of the Allstate 401(k) Savings Plan (“Allstate Plan”). The Corporation’s contributions are based on the Corporation’s matching obligation and certain performance measures. The cost allocated to the Company for the Allstate Plan was $895 thousand, $842 thousand and $811 thousand in 2017, 2016 and 2015, respectively.

15. Other Comprehensive Income

The components of other comprehensive (loss) income on a pre-tax and after-tax basis for the years ended December 31 are as follows:
($ in thousands)
 
2017
 
2016
 
2015
 
 
Pre-
tax
 
Tax
 
After-
tax
 
Pre-
tax
 
Tax
 
After-
tax
 
Pre-
tax
 
Tax
 
After-
tax
Unrealized net holding gains arising during the period, net of related offsets
 
$
(89,152
)
 
$
31,203

 
$
(57,949
)
 
$
15,344

 
$
(5,370
)
 
$
9,974

 
$
13,084

 
$
(4,580
)
 
$
8,504

Less: reclassification adjustment of realized capital gains and losses
 
12,710

 
(4,449
)
 
8,261

 
(22,431
)
 
7,851

 
(14,580
)
 
32,308

 
(11,308
)
 
21,000

Unrealized net capital gains and losses
 
(101,862
)
 
35,652

 
(66,210
)
 
37,775

 
(13,221
)
 
24,554

 
(19,224
)
 
6,728

 
(12,496
)
Unrealized foreign currency translation adjustments
 
3,706

 
(1,297
)
 
2,409

 
1,751

 
(613
)
 
1,138

 
(1,803
)
 
631

 
(1,172
)
Other comprehensive (loss) income
 
$
(98,156
)
 
$
34,355

 
$
(63,801
)
 
$
39,526

 
$
(13,834
)
 
$
25,692

 
$
(21,027
)
 
$
7,359

 
$
(13,668
)

44


ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE I - SUMMARY OF INVESTMENTS
OTHER THAN INVESTMENTS IN RELATED PARTIES
DECEMBER 31, 2017
($ in thousands)
 
Cost/
amortized
cost
 
Fair
value
 
Amount at
which shown
in the
Balance Sheet
Type of investment
 
 

 
 

 
 

Fixed maturities:
 
 

 
 

 
 

Bonds:
 
 

 
 

 
 

United States government, government agencies and authorities
 
$
115,747

 
$
128,052

 
$
128,052

States, municipalities and political subdivisions
 
615,231

 
729,333

 
729,333

Foreign governments
 
166,043

 
179,765

 
179,765

Public utilities
 
648,182

 
722,099

 
722,099

All other corporate bonds
 
2,921,833

 
3,073,632

 
3,073,632

Asset-backed securities
 
41,725

 
41,808

 
41,808

Residential mortgage-backed securities
 
20,666

 
21,955

 
21,955

Commercial mortgage-backed securities
 
11,855

 
11,408

 
11,408

Redeemable preferred stocks
 
8,726

 
9,673

 
9,673

Total fixed maturities
 
4,550,008

 
$
4,917,725

 
4,917,725

Equity securities:
 
 

 
 

 
 

Common stocks:
 
 

 
 

 
 

Public utilities
 
4,015

 
$
4,553

 
4,553

Banks, trusts and insurance companies
 
25,323

 
32,263

 
32,263

Industrial, miscellaneous and all other
 
120,903

 
155,736

 
155,736

Nonredeemable preferred stocks
 
1,922

 
1,981

 
1,981

Total equity securities
 
152,163

 
$
194,533

 
194,533

Mortgage loans on real estate (none acquired in satisfaction of debt)
 
629,142

 
$
655,601

 
629,142

Policy loans
 
39,589

 
 

 
39,589

Derivative instruments
 
3,106

 
$
3,106

 
3,106

Limited partnership interests
 
363,237

 
 
 
363,237

Short-term investments
 
88,799

 
$
88,786

 
88,786

Total investments
 
$
5,826,044

 
 

 
$
6,236,118


45


ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE IV - REINSURANCE
($ in thousands)
 
Gross
amount
 
Ceded to
other
companies (1)
 
Assumed
from other
companies
 
Net
amount
 
Percentage
of amount
assumed
to net
Year ended December 31, 2017
 
 

 
 

 
 

 
 

 
 

Life insurance in force
 
$
41,866,862

 
$
9,142,525

 
$
467,937

 
$
33,192,274

 
1.4
%
Premiums and contract charges:
 
 

 
 

 
 

 
 

 
 
Life insurance
 
$
149,811

 
$
18,316

 
$
672

 
$
132,167

 
0.5
%
Accident and health insurance
 
36,064

 
1,119

 
—

 
34,945

 
—

Total premiums and contract charges
 
$
185,875

 
$
19,435

 
$
672

 
$
167,112

 
0.4
%
Year ended December 31, 2016
 
 

 
 

 
 

 
 

 
 

Life insurance in force
 
$
41,053,412

 
$
9,300,738

 
$
480,632

 
$
32,233,306

 
1.5
%
Premiums and contract charges:
 
 

 
 

 
 

 
 

 
 

Life insurance
 
$
146,274

 
$
18,584

 
$
652

 
$
128,342

 
0.5
%
Accident and health insurance
 
17,471

 
1,223

 
—

 
16,248

 
—

Total premiums and contract charges
 
$
163,745

 
$
19,807

 
$
652

 
$
144,590

 
0.5
%
Year ended December 31, 2015
 
 

 
 

 
 

 
 

 
 

Life insurance in force
 
$
40,103,353

 
$
9,581,863

 
$
511,360

 
$
31,032,850

 
1.6
%
Premiums and contract charges:
 
 

 
 

 
 

 
 

 
 

Life insurance
 
$
142,994

 
$
20,251

 
$
741

 
$
123,484

 
0.6
%
Accident and health insurance
 
15,842

 
1,160

 
—

 
14,682

 
—

Total premiums and contract charges
 
$
158,836

 
$
21,411

 
$
741

 
$
138,166

 
0.5
%
__________________
(1) No reinsurance or coinsurance income was netted against premiums ceded in 2017, 2016 or 2015.

ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE V - VALUATION ALLOWANCES AND QUALIFYING ACCOUNTS
($ in thousands) 
 
 
 
Additions
 
 
 
 
Description
 
Balance
as of
beginning
of period
 
Charged
to costs
and
expenses
 
Other
additions
 
Deductions
 
Balance
as of
end of
period
Year ended December 31, 2017
 
 

 
 

 
 

 
 

 
 

Allowance for estimated losses on mortgage loans
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Year ended December 31, 2016
 
 

 
 

 
 

 
 

 
 

Allowance for estimated losses on mortgage loans
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Year ended December 31, 2015
 
 

 
 

 
 

 
 

 
 

Allowance for estimated losses on mortgage loans
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—



46
 
 
Allstate Life of New York Variable Life Separate Account A
Financial Statements as of December 31, 2017 and for the years ended December 31, 2017 and 2016, and Report of Independent Registered Public Accounting Firm





REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors of
Allstate Life Insurance Company of New York and
Policyholders of Allstate Life of New York Variable Life Separate Account A:

Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of net assets of each of the individual sub-accounts disclosed in Note 1 which comprise the Allstate Life of New York Variable Life Separate Account A (the “Account”) as of December 31, 2017, and the related statements of operations for the year or the period then ended, the statements of changes in net assets for each of the periods presented in the two years then ended, and the financial highlights presented in Note 7 for each of the periods presented. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the individual sub-accounts disclosed in Note 1 as of December 31, 2017, the results of their operations for the year or period then ended, the changes in its net assets for each of the periods presented in the two years then ended, and the financial highlights as presented in Note 7 for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Account's management. Our responsibility is to express an opinion on each of the individual sub-account’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Account is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Account’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2017, by correspondence with the Account’s fund managers. We believe that our audits provide a reasonable basis for our opinion.

/s/ DELOITTE & TOUCHE LLP

Chicago, Illinois
March 30, 2018


We have served as the auditor of Allstate Life Insurance Company of New York (the sponsor Company) since 1995.










ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A


STATEMENT OF NET ASSETS
As of December 31, 2017
 

















AIM Variable

AIM Variable

AIM Variable

AIM Variable

AIM Variable

AIM Variable

Insurance

Insurance

Insurance

Insurance

Insurance

Insurance

Funds

Funds

Funds

Funds

Funds

Funds

(Invesco Variable

(Invesco Variable

(Invesco Variable

(Invesco Variable

(Invesco Variable

(Invesco Variable

Insurance Funds)

Insurance Funds)

Insurance Funds)

Insurance Funds)

Insurance Funds)

Insurance Funds)

Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account









Invesco V.I.



Invesco V.I.

Invesco V.I.



Invesco V.I.

Growth and



American

American

Invesco V.I.

Government

Income Fund

Invesco V.I.

Franchise

Value

Core Equity

Securities

Series I

High Yield












ASSETS











Investments, at fair value
$
262,283


$
5,808


$
21,787


$
46,174


$
295,510


$
30,518













    Total assets
$
262,283


$
5,808


$
21,787


$
46,174


$
295,510


$
30,518

























NET ASSETS











Accumulation units
$
262,283


$
5,808


$
21,787


$
46,174


$
295,510


$
30,518













    Total net assets
$
262,283


$
5,808


$
21,787


$
46,174


$
295,510


$
30,518













FUND SHARE INFORMATION











Number of shares
4,165


316


593


4,047


13,018


5,539













Cost of investments
$
184,599


$
5,241


$
18,223


$
47,818


$
257,797


$
29,625













ACCUMULATION UNIT VALUE (1)











    Lowest
$
20.26


$
20.86


$
21.68


$
11.50


$
21.68


$
14.07













    Highest
$
20.26


$
20.86


$
21.68


$
11.50


$
42.67


$
14.07

 (1) The high and low accumulation unit value ("AUV") are reported at the same amount where there is only one policy offered for investment in the Sub-Account. Otherwise, when more than one policy is available for investment, a high and low AUV is reported.



See notes to financial statements.

2



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A


STATEMENT OF NET ASSETS
As of December 31, 2017
 

















AIM Variable

AIM Variable

AIM Variable







Insurance

Insurance

Insurance







Funds

Funds

Funds







(Invesco Variable

(Invesco Variable

(Invesco Variable

AllianceBernstein

AllianceBernstein

AllianceBernstein

Insurance Funds)

Insurance Funds)

Insurance Funds)

Fund

Fund

Fund

Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account



Invesco V.I.



VPS

VPS

VPS

Invesco V.I.

Mid Cap

Invesco V.I.

Growth

International

International

Mid Cap

Growth

Value

and Income

Growth

Value

Core Equity

Fund-Series II

Opportunity

Class A

Class A

Class A












ASSETS











Investments, at fair value
$
113,482


$
67,149


$
89,320


$
16,757


$
24,255


$
19,372













    Total assets
$
113,482


$
67,149


$
89,320


$
16,757


$
24,255


$
19,372

























NET ASSETS











Accumulation units
$
113,482


$
67,149


$
89,320


$
16,757


$
24,255


$
19,372













    Total net assets
$
113,482


$
67,149


$
89,320


$
16,757


$
24,255


$
19,372













FUND SHARE INFORMATION











Number of shares
7,875


12,143


11,784


502


1,048


1,188













Cost of investments
$
100,501


$
47,808


$
84,340


$
13,411


$
18,871


$
16,345













ACCUMULATION UNIT VALUE











    Lowest
$
26.63


$
30.15


$
20.60


$
21.89


$
11.17


$
9.26













    Highest
$
26.63


$
30.15


$
20.60


$
21.89


$
11.17


$
9.26









See notes to financial statements.

3



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A


STATEMENT OF NET ASSETS
As of December 31, 2017
 




 











 











 











 




Alps Variable

Alps Variable

Alps Variable

Alps Variable
 
AllianceBernstein

AllianceBernstein

Investments

Investments

Investments

Investments
 
Fund

Fund

Trust

Trust

Trust

Trust
 
Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account
 
VPS

VPS

Morningstar

Morningstar

Morningstar

Morningstar
 
Small Cap

Small/Mid Cap

Aggressive Growth

Balanced

Conservative ETF

Growth ETF
 
Growth

Value

ETF Asset Allocation

ETF Asset Allocation

Asset Allocation

Asset Allocation
 
Class A

Class A

Portfolio Class I

Portfolio Class I

Portfolio Class I

Portfolio Class I
 











ASSETS











Investments, at fair value
$
32,826


$
2,591


$
295,675


$
341,249


$
55,380


$
494,512













    Total assets
$
32,826


$
2,591


$
295,675


$
341,249


$
55,380


$
494,512

























NET ASSETS











Accumulation units
$
32,826


$
2,591


$
295,675


$
341,249


$
55,380


$
494,512













    Total net assets
$
32,826


$
2,591


$
295,675


$
341,249


$
55,380


$
494,512













FUND SHARE INFORMATION











Number of shares
1,873


120


22,692


30,226


4,962


40,701













Cost of investments
$
30,044


$
2,337


$
260,425


$
331,731


$
55,514


$
439,207













ACCUMULATION UNIT VALUE











    Lowest
$
28.64


$
24.91


$
17.05


$
16.13


$
13.80


$
16.83













    Highest
$
28.64


$
24.91


$
26.41


$
21.27


$
14.92


$
24.49









See notes to financial statements.

4



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A


STATEMENT OF NET ASSETS
As of December 31, 2017
 




 











 


Deutsche

Deutsche






 


Investments

Investments



Fidelity

Fidelity
 
Alps Variable

Variable

Variable

Deutsche

Variable

Variable
 
Investments

Insurance

Insurance

Variable

Insurance

Insurance
 
Trust

Trust

Trust

Series II

Products Fund

Products Fund
 
Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account
 
Morningstar Income

Deutsche

Deutsche

Deutsche




 
and Growth ETF

Equity 500

Small Cap

Global Income




 
Asset Allocation

Index VIP

Index VIP

Builder VIP

VIP Asset

VIP
 
Portfolio Class I

Class A

Class A

Class A

Manager

Contrafund
 











ASSETS











Investments, at fair value
$
132,374


$
209,200


$
64,216


$
86,255


$
86,030


$
943,832













    Total assets
$
132,374


$
209,200


$
64,216


$
86,255


$
86,030


$
943,832

























NET ASSETS











Accumulation units
$
132,374


$
209,200


$
64,216


$
86,255


$
86,030


$
943,832













    Total net assets
$
132,374


$
209,200


$
64,216


$
86,255


$
86,030


$
943,832













FUND SHARE INFORMATION











Number of shares
12,902


9,428


3,511


3,248


5,649


24,877













Cost of investments
$
136,167


$
148,685


$
47,526


$
73,163


$
84,303


$
683,638













ACCUMULATION UNIT VALUE











    Lowest
$
14.92


$
42.11


$
49.75


$
20.40


$
27.05


$
21.28













    Highest
$
14.92


$
42.11


$
49.75


$
20.40


$
27.05


$
48.93




See notes to financial statements.

5



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A


STATEMENT OF NET ASSETS
As of December 31, 2017
 




 

 

 

 

 

 

 

 

 

 

 

 

 
Fidelity
 
Fidelity
 
Fidelity
 
Fidelity
 
Fidelity
 
Fidelity
 
Variable
 
Variable
 
Variable
 
Variable
 
Variable
 
Variable
 
Insurance
 
Insurance
 
Insurance
 
Insurance
 
Insurance
 
Insurance
 
Products Fund
 
Products Fund
 
Products Fund
 
Products Fund
 
Products Fund
 
Products Fund
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 

 

 
VIP Government
 

 

 

 
VIP
 

 
Money Market
 

 
VIP
 
VIP
 
Emerging
 
VIP
 
Portfolio
 

 
Growth
 
High
 
Markets
 
Equity-Income
 
Initial Class
 
VIP Growth
 
& Income
 
Income
 

 

 

 

 

 

ASSETS

 

 

 

 

 

Investments, at fair value
$
15,939

 
$
866,752

 
$
493,404

 
$
1,015,154

 
$
46,402

 
$
17,899



 

 

 

 

 

    Total assets
$
15,939

 
$
866,752

 
$
493,404

 
$
1,015,154

 
$
46,402

 
$
17,899



 

 

 

 

 



 

 

 

 

 

NET ASSETS

 

 

 

 

 

Accumulation units
$
15,939

 
$
866,752

 
$
493,404

 
$
1,015,154

 
$
46,402

 
$
17,899



 

 

 

 

 

    Total net assets
$
15,939

 
$
866,752

 
$
493,404

 
$
1,015,154

 
$
46,402

 
$
17,899



 

 

 

 

 

FUND SHARE INFORMATION

 

 

 

 

 

Number of shares
1,303

 
36,281


493,404


13,709


2,043


3,284



 









Cost of investments
$
12,083

 
$
757,125


$
493,404


$
603,456


$
37,045


$
18,354



 

 

 

 

 

ACCUMULATION UNIT VALUE

 

 

 

 

 

    Lowest
$
14.90

 
$
18.63

 
$
10.40

 
$
23.24

 
$
20.98

 
$
18.24



 

 

 

 

 

    Highest
$
14.90

 
$
33.76

 
$
14.78

 
$
34.73

 
$
20.98

 
$
18.24









See notes to financial statements.

6



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A


STATEMENT OF NET ASSETS
As of December 31, 2017
 




 











 











 
Fidelity

Fidelity

Fidelity

Fidelity

Fidelity

Fidelity
 
Variable

Variable

Variable

Variable

Variable

Variable
 
Insurance

Insurance

Insurance

Insurance

Insurance

Insurance
 
Products Fund

Products Fund

Products Fund

Products Fund

Products Fund

Products Fund
 
Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account
 











 


VIP

VIP

VIP



VIP
 
VIP

Index 500 -

Investment

Mid

VIP

Real
 
Index 500

Service Class

Grade Bond

Cap

Overseas

Estate
 











ASSETS











Investments, at fair value
$
874,263


$
210,281


$
319,857


$
52,729


$
290,343


$
28,546













    Total assets
$
874,263


$
210,281


$
319,857


$
52,729


$
290,343


$
28,546

























NET ASSETS











Accumulation units
$
874,263


$
210,281


$
319,857


$
52,729


$
290,343


$
28,546













    Total net assets
$
874,263


$
210,281


$
319,857


$
52,729


$
290,343


$
28,546













FUND SHARE INFORMATION











Number of shares
3,224


778


24,989


1,354


12,695


1,468













Cost of investments
$
572,619


$
147,814


$
319,457


$
44,579


$
225,588


$
27,038













ACCUMULATION UNIT VALUE











    Lowest
$
34.83


$
23.06


$
15.35


$
22.75


$
25.40


$
18.63













    Highest
$
34.83


$
23.06


$
18.67


$
22.75


$
25.40


$
18.63









See notes to financial statements.

7



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A


STATEMENT OF NET ASSETS
As of December 31, 2017
 




 

 

 

 

 

 

 

 

 

 

 

 

 
Fidelity
 

 

 

 

 

 
Variable
 
Franklin
 
Franklin
 
Franklin
 
Franklin
 
Franklin
 
Insurance
 
Templeton
 
Templeton
 
Templeton
 
Templeton
 
Templeton
 
Products Fund
 
Investments
 
Investments
 
Investments
 
Investments
 
Investments
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 

 
Franklin
 
Franklin Mutual
 
Franklin
 
Franklin
 
Franklin
 
VIP
 
Income
 
Global
 
Mutual
 
Small
 
Small-Mid
 
Value
 
VIP
 
Discovery
 
Shares
 
Cap Value
 
Cap Growth
 
Strategies
 
Fund Class 1
 
VIP Fund Class 1
 
VIP Fund Class 1
 
VIP Fund Class 1
 
VIP Fund Class 1
 

 

 

 

 

 

ASSETS

 

 

 

 

 

Investments, at fair value
$
8,549

 
$
19,102

 
$
4,585

 
$
5,382

 
$
45,516

 
$
19,280



 

 

 

 

 

    Total assets
$
8,549

 
$
19,102

 
$
4,585

 
$
5,382

 
$
45,516

 
$
19,280



 

 

 

 

 



 

 

 

 

 

NET ASSETS

 

 

 

 

 

Accumulation units
$
8,549

 
$
19,102

 
$
4,585

 
$
5,382

 
$
45,516

 
$
19,280



 

 

 

 

 

    Total net assets
$
8,549

 
$
19,102

 
$
4,585

 
$
5,382

 
$
45,516

 
$
19,280



 

 

 

 

 

FUND SHARE INFORMATION

 

 

 

 

 

Number of shares
599


1,142


225


260


2,228


978













Cost of investments
$
8,077


$
17,993


$
4,612


$
4,992


$
41,302


$
19,689



 

 

 

 

 

ACCUMULATION UNIT VALUE

 

 

 

 

 

    Lowest
$
21.16

 
$
17.44

 
$
18.40

 
$
17.66

 
$
23.20

 
$
22.02



 

 

 

 

 

    Highest
$
21.16

 
$
17.44

 
$
18.40

 
$
17.66

 
$
23.20

 
$
22.02









See notes to financial statements.

8



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A


STATEMENT OF NET ASSETS
As of December 31, 2017
 




 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Franklin
 
Franklin
 
Franklin
 

 

 

 
Templeton
 
Templeton
 
Templeton
 
Janus Aspen
 
Janus Aspen
 
Janus Aspen
 
Investments
 
Investments
 
Investments
 
Series
 
Series
 
Series
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Franklin
 
Franklin
 
Templeton
 
Janus Henderson
 
Janus Henderson
 
Janus Henderson
 
Strategic
 
U.S. Government
 
Global
 
Balanced
 
Enterprise
 
Flexible
 
Income
 
Securities
 
Bond
 
Portfolio
 
Portfolio
 
Bond Portfolio
 
VIP Fund Class 1
 
VIP Fund Class 1
 
VIP Fund Class 1
 
Institutional Shares
 
Institutional Shares
 
Institutional Shares
 

 

 

 

 

 

ASSETS

 

 

 

 

 

Investments, at fair value
$
9,922

 
$
16,527

 
$
25,673

 
$
20,852

 
$
22,362

 
$
18,326



 

 

 

 

 

    Total assets
$
9,922

 
$
16,527

 
$
25,673

 
$
20,852

 
$
22,362

 
$
18,326



 

 

 

 

 



 

 

 

 

 

NET ASSETS

 

 

 

 

 

Accumulation units
$
9,922

 
$
16,527

 
$
25,673

 
$
20,852

 
$
22,362

 
$
18,326



 

 

 

 

 

    Total net assets
$
9,922

 
$
16,527

 
$
25,673

 
$
20,852

 
$
22,362

 
$
18,326



 

 

 

 

 

FUND SHARE INFORMATION

 

 

 

 

 

Number of shares
887


1,337


1,496


591


317


1,568













Cost of investments
$
10,193


$
17,777


$
27,406


$
17,879


$
18,593


$
19,339



 

 

 

 

 

ACCUMULATION UNIT VALUE

 

 

 

 

 

    Lowest
$
16.34

 
$
13.03

 
$
16.65

 
$
21.34

 
$
25.97

 
$
16.27



 

 

 

 

 

    Highest
$
16.34

 
$
13.03

 
$
16.65

 
$
21.34

 
$
25.97

 
$
16.27









See notes to financial statements.

9



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A


STATEMENT OF NET ASSETS
As of December 31, 2017
 




 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Janus Aspen
 
Janus Aspen
 
Janus Aspen
 
Janus Aspen
 
Janus Aspen
 
Janus Aspen
 
Series
 
Series
 
Series
 
Series
 
Series
 
Series
 
(Service Shares)
 
(Service Shares)
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Janus Henderson
 
Janus Henderson
 
Janus Henderson
 
Janus Henderson
 

 
Janus Henderson
 
Forty
 
Global
 
Mid
 
Overseas
 
Janus Henderson
 
Global Research
 
Portfolio
 
Technology Portfolio
 
Cap Value Portfolio
 
Portfolio
 
Balanced Portfolio
 
Portfolio
 
Institutional Shares
 
Institutional Shares
 
Institutional Shares
 
Institutional Shares
 
Service Shares
 
Service Shares
 

 

 

 

 

 

ASSETS

 

 

 

 

 

Investments, at fair value
$
132,267

 
$
17,151

 
$
9,626

 
$
28,197

 
$
379,423

 
$
46,827



 

 

 

 

 

    Total assets
$
132,267

 
$
17,151

 
$
9,626

 
$
28,197

 
$
379,423

 
$
46,827



 

 

 

 

 



 

 

 

 

 

NET ASSETS

 

 

 

 

 

Accumulation units
$
132,267

 
$
17,151

 
$
9,626

 
$
28,197

 
$
379,423

 
$
46,827



 

 

 

 

 

    Total net assets
$
132,267

 
$
17,151

 
$
9,626

 
$
28,197

 
$
379,423

 
$
46,827



 

 

 

 

 

FUND SHARE INFORMATION

 

 

 

 

 

Number of shares
3,327


1,504

 
534


882


10,230


933





 







Cost of investments
$
118,464

 
$
11,829

 
$
8,923

 
$
28,491

 
$
301,038

 
$
28,925



 

 

 

 

 

ACCUMULATION UNIT VALUE

 

 

 

 

 

    Lowest
$
21.02

 
$
33.09

 
$
21.38

 
$
9.18

 
$
34.81

 
$
29.84



 

 

 

 

 

    Highest
$
41.89

 
$
33.09

 
$
21.38

 
$
9.18

 
$
34.81

 
$
29.84









See notes to financial statements.

10



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A


STATEMENT OF NET ASSETS
As of December 31, 2017
 




 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Legg Mason
 
Legg Mason
 

 
Janus Aspen
 
Janus Aspen
 
Lazard
 
Partners
 
Partners
 
MFS Variable
 
Series
 
Series
 
Retirement
 
Variable
 
Variable
 
Insurance
 
(Service Shares)
 
(Service Shares)
 
Series, Inc.
 
Portfolios I, Inc.
 
Portfolios I, Inc.
 
Trust
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Janus Henderson
 
Janus Henderson
 

 
ClearBridge
 
Western Assets
 

 
Mid Cap Value
 
Overseas
 
Emerging
 
Variable
 
Variable Global
 

 
Portfolio
 
Portfolio
 
Markets
 
Large Cap Value
 
High Yield Bond
 
MFS High
 
Service Shares
 
Service Shares
 
Equity
 
Portfolio Class I
 
Portfolio Class I
 
Yield Portfolio
 

 

 

 

 

 

ASSETS

 

 

 

 

 

Investments, at fair value
$
163,365

 
$
99,849

 
$
36,893

 
$
164,337

 
$
108,521

 
$
57,313



 

 

 

 

 

    Total assets
$
163,365

 
$
99,849

 
$
36,893

 
$
164,337

 
$
108,521

 
$
57,313



 

 

 

 

 



 

 

 

 

 

NET ASSETS

 

 

 

 

 

Accumulation units
$
163,365

 
$
99,849

 
$
36,893

 
$
164,337

 
$
108,521

 
$
57,313


 
 
 
 
 
 
 
 
 
 
 
    Total net assets
$
163,365

 
$
99,849

 
$
36,893

 
$
164,337

 
$
108,521

 
$
57,313



 

 

 

 

 

FUND SHARE INFORMATION

 

 

 

 

 

Number of shares
9,340


3,248


1,564


7,669


14,866


9,933













Cost of investments
$
145,550


$
112,225


$
30,642


$
151,810


$
114,786


$
60,067



 

 

 

 

 

ACCUMULATION UNIT VALUE

 

 

 

 

 

    Lowest
$
32.69

 
$
9.02

 
$
64.10

 
$
28.91

 
$
23.45

 
$
12.44



 

 

 

 

 

    Highest
$
32.69

 
$
9.02

 
$
64.10

 
$
28.91

 
$
23.45

 
$
12.44









See notes to financial statements.

11



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A


STATEMENT OF NET ASSETS
As of December 31, 2017
 




 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
MFS Variable
 
MFS Variable
 
MFS Variable
 
MFS Variable
 
MFS Variable
 
MFS Variable
 
Insurance
 
Insurance
 
Insurance
 
Insurance
 
Insurance
 
Insurance
 
Trust
 
Trust
 
Trust
 
Trust
 
Trust
 
Trust
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 

 
MFS Mass
 

 

 

 

 

 
Investors Growth
 

 

 

 

 
MFS Investors
 
Stock Series -
 
MFS New
 
MFS Total
 

 

 
Trust
 
Initial Class
 
Discovery
 
Return
 
MFS Utilities
 
MFS Value
 

 

 

 

 

 

ASSETS

 

 

 

 

 

Investments, at fair value
$
20,992

 
$
63,699

 
$
197,484

 
$
107,102

 
$
73,217

 
$
73,094



 

 

 

 

 

    Total assets
$
20,992

 
$
63,699

 
$
197,484

 
$
107,102

 
$
73,217

 
$
73,094



 

 

 

 

 



 

 

 

 

 

NET ASSETS

 

 

 

 

 

Accumulation units
$
20,992

 
$
63,699

 
$
197,484

 
$
107,102

 
$
73,217

 
$
73,094



 

 

 

 

 

    Total net assets
$
20,992

 
$
63,699

 
$
197,484

 
$
107,102

 
$
73,217

 
$
73,094



 

 

 

 

 

FUND SHARE INFORMATION

 

 

 

 

 

Number of shares
698


3,425


9,825


4,336


2,482


3,494













Cost of investments
$
16,588


$
59,381


$
144,895


$
91,615


$
67,628


$
55,143



 

 

 

 

 

ACCUMULATION UNIT VALUE

 

 

 

 

 

    Lowest
$
31.34

 
$
13.43

 
$
57.20

 
$
33.93

 
$
60.70

 
$
33.71



 

 

 

 

 

    Highest
$
31.34

 
$
13.43

 
$
57.20

 
$
33.93

 
$
60.70

 
$
33.71









See notes to financial statements.

12



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A


STATEMENT OF NET ASSETS
As of December 31, 2017
 




 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Morgan Stanley
 
Morgan Stanley
 
Morgan Stanley
 
Oppenheimer
 
Oppenheimer
 
Oppenheimer
 
Variable Insurance
 
Variable Insurance
 
Variable Insurance
 
Variable
 
Variable
 
Variable
 
Fund, Inc.
 
Fund, Inc.
 
Fund, Inc.
 
Account Funds
 
Account Funds
 
Account Funds
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Morgan Stanley
 
Morgan Stanley
 
Morgan Stanley
 

 

 

 
VIF Emerging
 
VIF
 
VIF U.S.
 
Oppenheimer
 
Oppenheimer
 

 
Markets Equity
 
Growth
 
Real Estate
 
Conservative
 
Discovery
 
Oppenheimer
 
Portfolio Class I
 
Portfolio Class I
 
Portfolio Class I
 
Balance Fund
 
MidCap Growth
 
Global
 

 

 

 

 

 

ASSETS

 

 

 

 

 

Investments, at fair value
$
21,670

 
$
100,950

 
$
129,378

 
$
17,661

 
$
134,186

 
$
15,517



 

 

 

 

 

    Total assets
$
21,670

 
$
100,950

 
$
129,378

 
$
17,661

 
$
134,186

 
$
15,517



 

 

 

 

 



 

 

 

 

 

NET ASSETS

 

 

 

 

 

Accumulation units
$
21,670

 
$
100,950

 
$
129,378

 
$
17,661

 
$
134,186

 
$
15,517



 

 

 

 

 

    Total net assets
$
21,670

 
$
100,950

 
$
129,378

 
$
17,661

 
$
134,186

 
$
15,517



 

 

 

 

 

FUND SHARE INFORMATION

 

 

 

 

 

Number of shares
1,228


3,118


5,957


1,109


1,593


327













Cost of investments
$
16,953


$
71,894


$
93,061


$
15,676


$
91,189


$
11,853



 

 

 

 

 

ACCUMULATION UNIT VALUE

 

 

 

 

 

    Lowest
$
11.12

 
$
29.48

 
$
48.57

 
$
12.89

 
$
26.58

 
$
20.82



 

 

 

 

 

    Highest
$
11.12

 
$
45.69

 
$
48.57

 
$
12.89

 
$
26.58

 
$
20.82









See notes to financial statements.

13



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A


STATEMENT OF NET ASSETS
As of December 31, 2017
 




 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Oppenheimer
 
Oppenheimer
 
Oppenheimer
 
Oppenheimer
 
Oppenheimer
 
Oppenheimer
 
Variable
 
Variable
 
Variable
 
Variable
 
Variable
 
Variable
 
Account Funds
 
Account Funds
 
Account Funds
 
Account Funds
 
Account Funds
 
Account Funds
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 

 
Oppenheimer
 

 

 
Oppenheimer
 

 
Oppenheimer
 
Global
 
Oppenheimer
 

 
Main Street
 
Oppenheimer
 
Global Fund/VA-
 
Strategic
 
International
 
Oppenheimer
 
Small
 
Total Return
 
Service Shares
 
Income
 
Growth Fund/VA
 
Main Street
 
Cap
 
Bond Fund/VA
 

 

 

 

 

 

ASSETS

 

 

 

 

 

Investments, at fair value
$
434,663

 
$
5,586

 
$
114,642

 
$
9,901

 
$
726,061

 
$
6,918



 

 

 

 

 

    Total assets
$
434,663

 
$
5,586

 
$
114,642

 
$
9,901

 
$
726,061

 
$
6,918



 

 

 

 

 



 

 

 

 

 

NET ASSETS

 

 

 

 

 

Accumulation units
$
434,663

 
$
5,586

 
$
114,642

 
$
9,901

 
$
726,061

 
$
6,918



 

 

 

 

 

    Total net assets
$
434,663

 
$
5,586

 
$
114,642

 
$
9,901

 
$
726,061

 
$
6,918



 

 

 

 

 

FUND SHARE INFORMATION

 

 

 

 

 

Number of shares
9,272


1,089


44,263


307


28,153


884













Cost of investments
$
298,909


$
5,596


$
84,975


$
9,365


$
558,119


$
6,898



 

 

 

 

 

ACCUMULATION UNIT VALUE

 

 

 

 

 

    Lowest
$
32.44

 
$
14.78

 
$
16.14

 
$
10.91

 
$
25.39

 
$
10.38



 

 

 

 

 

    Highest
$
32.44

 
$
14.78

 
$
53.15

 
$
10.91

 
$
55.56

 
$
10.38









See notes to financial statements.

14



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A


STATEMENT OF NET ASSETS
As of December 31, 2017
 




 

 

 

 

 

 

 

 

 

 

 

 

 
PIMCO
 
PIMCO
 
PIMCO
 
Putnam
 
Putnam
 

 
Variable
 
Variable
 
Variable
 
Variable
 
Variable
 
Rydex
 
Insurance
 
Insurance
 
Insurance
 
Trust
 
Trust
 
Variable
 
Trust
 
Trust
 
Trust
 
(Class IA)
 
(Class IA)
 
Trust
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 

 

 

 

 

 
Guggenheim
 

 

 

 

 
VT International
 
VT U.S.
 

 
PIMCO
 
PIMCO
 
VT High Yield
 
Value Fund
 
Long Short
 
Foreign Bond
 
Real Return
 
Total Return
 
(Class IA)
 
(Class IA)
 
Equity Fund
 

 

 

 

 

 

ASSETS

 

 

 

 

 

Investments, at fair value
$
45,606

 
$
119,121

 
$
238,806

 
$
84,303

 
$
29,353

 
$
32,960



 

 

 

 

 

    Total assets
$
45,606

 
$
119,121

 
$
238,806

 
$
84,303

 
$
29,353

 
$
32,960



 

 

 

 

 



 

 

 

 

 

NET ASSETS

 

 

 

 

 

Accumulation units
$
45,606

 
$
119,121

 
$
238,806

 
$
84,303

 
$
29,353

 
$
32,960


 
 
 
 
 
 
 
 
 
 
 
    Total net assets
$
45,606

 
$
119,121

 
$
238,806

 
$
84,303

 
$
29,353

 
$
32,960



 

 

 

 

 

FUND SHARE INFORMATION

 

 

 

 

 

Number of shares
4,227


9,591


21,829


12,871


2,505


1,874













Cost of investments
$
44,166


$
123,307


$
238,167


$
84,029


$
22,705


$
23,920



 

 

 

 

 

ACCUMULATION UNIT VALUE

 

 

 

 

 

    Lowest
$
22.76

 
$
17.70

 
$
22.04

 
$
31.71

 
$
30.56

 
$
27.24



 

 

 

 

 

    Highest
$
22.76

 
$
17.70

 
$
22.04

 
$
31.71

 
$
30.56

 
$
27.24









See notes to financial statements.

15



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A


STATEMENT OF NET ASSETS
As of December 31, 2017
 






 

 

 

 

 



 

 

 

 

 



 

 

 

 

 


T. Rowe Price
 
T. Rowe Price
 
The
 
The
 
The
 
The

Equity
 
Equity
 
Alger
 
Alger
 
Alger
 
Alger

Series, Inc.
 
Series, Inc.
 
Portfolios
 
Portfolios
 
Portfolios
 
Portfolios
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account


 

 

 
Alger
 
Alger
 
Alger

T. Rowe Price
 

 
Alger
 
Capital
 
Large Cap
 
MidCap

Blue Chip
 
T. Rowe Price
 
Balanced
 
Appreciation
 
Growth
 
Growth

Growth
 
Equity Income
 
Class I-2
 
Class I-2
 
Class I-2
 
Class I-2


 

 

 

 

 

ASSETS

 

 

 

 

 

Investments, at fair value
$
254,468

 
$
475,764

 
$
6,660

 
$
305,653

 
$
280,802

 
$
402,569


 
 
 
 
 
 
 
 
 
 
 
    Total assets
$
254,468

 
$
475,764

 
$
6,660

 
$
305,653

 
$
280,802

 
$
402,569



 

 

 

 

 



 

 

 

 

 

NET ASSETS

 

 

 

 

 

Accumulation units
$
254,468

 
$
475,764

 
$
6,660

 
$
305,653

 
$
280,802

 
$
402,569



 

 

 

 

 

    Total net assets
$
254,468

 
$
475,764

 
$
6,660

 
$
305,653

 
$
280,802

 
$
402,569



 

 

 

 

 

FUND SHARE INFORMATION

 

 

 

 

 

Number of shares
8,151


16,254


387


3,699


4,558


16,103













Cost of investments
$
100,375


$
390,899


$
6,109


$
222,757


$
224,294


$
250,847



 

 

 

 

 

ACCUMULATION UNIT VALUE

 

 

 

 

 

    Lowest
$
38.32

 
$
39.71

 
$
17.28

 
$
26.71

 
$
20.74

 
$
17.57



 

 

 

 

 

    Highest
$
38.32

 
$
39.71

 
$
17.28

 
$
60.98

 
$
31.16

 
$
44.69









See notes to financial statements.

16



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A


STATEMENT OF NET ASSETS
As of December 31, 2017
 




 

 

 
 

 

 
 

 

 
 
VanEck
 
VanEck
 
 
VIP
 
VIP
 
 
Trust
 
Trust
 
 
Sub-Account
 
Sub-Account
 
 
VanEck VIP
 
VanEck VIP
 
 
Emerging
 
Global
 
 
Markets
 
Hard Assets
 
 
Fund Initial Class
 
Fund Initial Class
 
 

 

 
ASSETS

 

 
Investments, at fair value
$
141,927

 
$
47,522

 


 

 
    Total assets
$
141,927

 
$
47,522

 


 

 


 

 
NET ASSETS

 

 
Accumulation units
$
141,927

 
$
47,522

 


 

 
    Total net assets
$
141,927

 
$
47,522

 


 

 
FUND SHARE INFORMATION

 

 
Number of shares
9,080


2,003







Cost of investments
$
106,565


$
47,866




 

 
ACCUMULATION UNIT VALUE

 

 
    Lowest
$
42.98

 
$
27.61

 


 

 
    Highest
$
42.98

 
$
27.61

 








See notes to financial statements.

17



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2017
 














AIM Variable

AIM Variable

AIM Variable

AIM Variable

AIM Variable

AIM Variable

Insurance

Insurance

Insurance

Insurance

Insurance

Insurance

Funds

Funds

Funds

Funds

Funds

Funds

(Invesco Variable

(Invesco Variable

(Invesco Variable

(Invesco Variable

(Invesco Variable

(Invesco Variable

Insurance Funds)*

Insurance Funds)*

Insurance Funds)*

Insurance Funds)*

Insurance Funds)*

Insurance Funds)*

Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account









Invesco V.I.



Invesco V.I.

Invesco V.I.



Invesco V.I.

Growth and



American

American

Invesco V.I.

Government

Income Fund

Invesco V.I.

Franchise

Value

Core Equity

Securities

Series I

High Yield












NET INVESTMENT INCOME (LOSS)











Dividends
$
203


$
44


$
215


$
951


$
4,195


$
1,213













    Net investment income (loss)
203


44


215


951


4,195


1,213

























NET REALIZED AND UNREALIZED











  GAINS (LOSSES) ON INVESTMENTS











Realized gains (losses) on











  fund shares:











    Proceeds from sales
21,569


607


412


2,882


6,946


1,287

    Cost of investments sold
14,100


581


328


2,972


6,295


1,229













      Realized gains (losses)











        on fund shares
7,469


26


84


(90
)

651


58













Realized gain distributions
19,842


63


1,076


—


11,525


—













    Net realized gains (losses)
27,311


89


1,160


(90
)

12,176


58













Change in unrealized gains (losses)
30,259


379


1,114


(3
)

20,402


535













    Net realized and change in unrealized











      gains (losses) on investments
57,570


468


2,274


(93
)

32,578


593

























INCREASE (DECREASE) IN NET











  ASSETS FROM OPERATIONS
$
57,773


$
512


$
2,489


$
858


$
36,773


$
1,806

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.


See notes to financial statements.

18



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2017
 

 











 
AIM Variable

AIM Variable

AIM Variable






 
Insurance

Insurance

Insurance






 
Funds

Funds

Funds






 
(Invesco Variable

(Invesco Variable

(Invesco Variable

AllianceBernstein

AllianceBernstein

AllianceBernstein
 
Insurance Funds)*

Insurance Funds)*

Insurance Funds)*

Fund

Fund

Fund
 
Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account
 


Invesco V.I.



VPS

VPS

VPS
 
Invesco V.I.

Mid Cap

Invesco V.I.

Growth

International

International
 
Mid Cap

Growth

Value

and Income

Growth

Value
 
Core Equity

Fund-Series II*

Opportunity

Class A

Class A

Class A
 











NET INVESTMENT INCOME (LOSS)











Dividends
$
564


$
—


$
335


$
209


$
251


$
403













    Net investment income (loss)
564


—


335


209


251


403

























NET REALIZED AND UNREALIZED











  GAINS (LOSSES) ON INVESTMENTS











Realized gains (losses) on











  fund shares:











    Proceeds from sales
5,023


4,576


10,465


821


2,547


945

    Cost of investments sold
4,713


3,119


10,965


599


2,105


850













      Realized gains (losses)











        on fund shares
310


1,457


(500
)

222


442


95













Realized gain distributions
2,184


4,139


—


1,238


—


—













    Net realized gains (losses)
2,494


5,596


(500
)

1,460


442


95













Change in unrealized gains (losses)
11,460


6,795


13,717


836


5,651


3,455













    Net realized and change in unrealized











      gains (losses) on investments
13,954


12,391


13,217


2,296


6,093


3,550

























INCREASE (DECREASE) IN NET











  ASSETS FROM OPERATIONS
$
14,518


$
12,391


$
13,552


$
2,505


$
6,344


$
3,953

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.



See notes to financial statements.

19



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2017
 

 











 











 











 




Alps Variable

Alps Variable

Alps Variable

Alps Variable
 
AllianceBernstein

AllianceBernstein

Investments

Investments

Investments

Investments
 
Fund

Fund

Trust*

Trust*

Trust*

Trust*
 
Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account
 
VPS

VPS

Morningstar

Morningstar

Morningstar

Morningstar
 
Small Cap

Small/Mid Cap

Aggressive Growth

Balanced

Conservative ETF

Growth ETF
 
Growth

Value

ETF Asset Allocation

ETF Asset Allocation

Asset Allocation

Asset Allocation
 
Class A

Class A

Portfolio Class I

Portfolio Class I

Portfolio Class I

Portfolio Class I
 











NET INVESTMENT INCOME (LOSS)











Dividends
$
—


$
12


$
3,927


$
6,162


$
1,090


$
7,240













    Net investment income (loss)
—


12


3,927


6,162


1,090


7,240

























NET REALIZED AND UNREALIZED











  GAINS (LOSSES) ON INVESTMENTS











Realized gains (losses) on











  fund shares:











    Proceeds from sales
2,642


1,813


11,738


20,387


3,592


37,840

    Cost of investments sold
3,151


1,725


9,886


18,884


3,620


33,589













      Realized gains (losses)











        on fund shares
(509
)

88


1,852


1,503


(28
)

4,251













Realized gain distributions
—


133


16,173


20,042


258


24,137













    Net realized gains (losses)
(509
)

221


18,025


21,545


230


28,388













Change in unrealized gains (losses)
8,527


125


24,197


11,207


1,746


34,308













    Net realized and change in unrealized











      gains (losses) on investments
8,018


346


42,222


32,752


1,976


62,696

























INCREASE (DECREASE) IN NET











  ASSETS FROM OPERATIONS
$
8,018


$
358


$
46,149


$
38,914


$
3,066


$
69,936

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.

See notes to financial statements.

20



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2017
 

 











 


Deutsche

Deutsche






 


Investments

Investments



Fidelity

Fidelity
 
Alps Variable

Variable

Variable

Deutsche

Variable

Variable
 
Investments

Insurance

Insurance

Variable

Insurance

Insurance
 
Trust*

Trust

Trust

Series II

Products Fund

Products Fund
 
Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account
 
Morningstar Income

Deutsche

Deutsche

Deutsche




 
and Growth ETF

Equity 500

Small Cap

Global Income




 
Asset Allocation

Index VIP

Index VIP

Builder VIP

VIP Asset

VIP
 
Portfolio Class I

Class A

Class A

Class A

Manager

Contrafund
 











NET INVESTMENT INCOME (LOSS)











Dividends
$
2,644


$
3,258


$
697


$
2,334


$
1,543


$
8,755













    Net investment income (loss)
2,644


3,258


697


2,334


1,543


8,755

























NET REALIZED AND UNREALIZED











  GAINS (LOSSES) ON INVESTMENTS











Realized gains (losses) on











  fund shares:











    Proceeds from sales
33,868


8,218


18,624


2,848


4,717


46,531

    Cost of investments sold
34,286


6,001


14,189


2,511


4,680


34,131













      Realized gains (losses)











        on fund shares
(418
)

2,217


4,435


337


37


12,400













Realized gain distributions
6,058


9,152


2,698


—


8,720


45,203













    Net realized gains (losses)
5,640


11,369


7,133


337


8,757


57,603













Change in unrealized gains (losses)
3,384


22,269


1,541


9,498


234


103,031













    Net realized and change in unrealized











      gains (losses) on investments
9,024


33,638


8,674


9,835


8,991


160,634

























INCREASE (DECREASE) IN NET











  ASSETS FROM OPERATIONS
$
11,668


$
36,896


$
9,371


$
12,169


$
10,534


$
169,389

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.


See notes to financial statements.

21



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2017
 

 











 











 
Fidelity

Fidelity

Fidelity

Fidelity

Fidelity

Fidelity
 
Variable

Variable

Variable

Variable

Variable

Variable
 
Insurance

Insurance

Insurance

Insurance

Insurance

Insurance
 
Products Fund

Products Fund

Products Fund

Products Fund

Products Fund

Products Fund
 
Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account
 




VIP Government






 
VIP



Money Market



VIP

VIP
 
Emerging

VIP

Portfolio



Growth

High
 
Markets

Equity-Income

Initial Class*

VIP Growth

& Income

Income
 











NET INVESTMENT INCOME (LOSS)











Dividends
$
88


$
14,054


$
3,311


$
1,960


$
537


$
934













    Net investment income (loss)
88


14,054


3,311


1,960


537


934

























NET REALIZED AND UNREALIZED











  GAINS (LOSSES) ON INVESTMENTS











Realized gains (losses) on











  fund shares:











    Proceeds from sales
1,032


24,970


124,775


39,759


5,789


3,164

    Cost of investments sold
867


22,927


124,775


23,397


4,637


3,170













      Realized gains (losses)











        on fund shares
165


2,043


—


16,362


1,152


(6
)












Realized gain distributions
14


16,240


—


63,145


921


—













    Net realized gains (losses)
179


18,283


—


79,507


2,073


(6
)












Change in unrealized gains (losses)
4,211


65,540


—


182,628


3,726


249













    Net realized and change in unrealized











      gains (losses) on investments
4,390


83,823


—


262,135


5,799


243

























INCREASE (DECREASE) IN NET











  ASSETS FROM OPERATIONS
$
4,478


$
97,877


$
3,311


$
264,095


$
6,336


$
1,177

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.





See notes to financial statements.

22



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2017
 

 











 











 
Fidelity

Fidelity

Fidelity

Fidelity

Fidelity

Fidelity
 
Variable

Variable

Variable

Variable

Variable

Variable
 
Insurance

Insurance

Insurance

Insurance

Insurance

Insurance
 
Products Fund

Products Fund

Products Fund

Products Fund

Products Fund

Products Fund
 
Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account
 











 


VIP

VIP

VIP



VIP
 
VIP

Index 500 -

Investment

Mid

VIP

Real
 
Index 500

Service Class

Grade Bond
 
Cap
 
Overseas
 
Estate
 











NET INVESTMENT INCOME (LOSS)











Dividends
$
14,416


$
3,336


$
7,530


$
350


$
3,816


$
484













    Net investment income (loss)
14,416


3,336


7,530


350


3,816


484

























NET REALIZED AND UNREALIZED











  GAINS (LOSSES) ON INVESTMENTS











Realized gains (losses) on











  fund shares:











    Proceeds from sales
134,246


67,817


25,557


16,205


24,006


3,754

    Cost of investments sold
93,152


43,396


25,353


15,038


19,277


3,390













      Realized gains (losses)











        on fund shares
41,094


24,421


204


1,167


4,729


364













Realized gain distributions
2,359


676


1,354


2,436


249


1,342













    Net realized gains (losses)
43,453


25,097


1,558


3,603


4,978


1,706













Change in unrealized gains (losses)
96,730


15,040


3,628


5,794


60,262


(1,286
)












    Net realized and change in unrealized











      gains (losses) on investments
140,183


40,137


5,186


9,397


65,240


420

























INCREASE (DECREASE) IN NET











  ASSETS FROM OPERATIONS
$
154,599


$
43,473


$
12,716


$
9,747


$
69,056


$
904





See notes to financial statements.

23



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2017
 

 











 











 
Fidelity










 
Variable

Franklin

Franklin

Franklin

Franklin

Franklin
 
Insurance

Templeton

Templeton

Templeton

Templeton

Templeton
 
Products Fund

Investments

Investments

Investments

Investments

Investments
 
Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account
 


Franklin

Franklin

Franklin Mutual

Franklin

Franklin
 
VIP

High Income

Income

Global

Mutual

Small
 
Value

VIP

VIP

Discovery VIP

Shares VIP

Cap Value VIP
 
Strategies

Fund Class 1*

Fund Class 1

Fund Class 1

Fund Class 1

Fund Class 1
 











NET INVESTMENT INCOME (LOSS)











Dividends
$
117


$
8,261


$
804


$
83


$
132


$
309













    Net investment income (loss)
117


8,261


804


83


132


309

























NET REALIZED AND UNREALIZED











  GAINS (LOSSES) ON INVESTMENTS











Realized gains (losses) on











  fund shares:











    Proceeds from sales
1,422


15,347


3,158


742


680


5,331

    Cost of investments sold
1,322


23,732


3,046


770


613


5,069













      Realized gains (losses)











        on fund shares
100


(8,385
)

112


(28
)

67


262













Realized gain distributions
1,801


—


—


231


216


2,890













    Net realized gains (losses)
1,901


(8,385
)

112


203


283


3,152













Change in unrealized gains (losses)
(683
)

512


847


46


10


1,111













    Net realized and change in unrealized











      gains (losses) on investments
1,218


(7,873
)

959


249


293


4,263

























INCREASE (DECREASE) IN NET











  ASSETS FROM OPERATIONS
$
1,335


$
388


$
1,763


$
332


$
425


$
4,572

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.






See notes to financial statements.

24



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2017
 

 











 











 











 
Franklin

Franklin

Franklin

Franklin




 
Templeton

Templeton

Templeton

Templeton

Janus Aspen

Janus Aspen
 
Investments

Investments

Investments

Investments

Series

Series
 
Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account

Sub-Account
 
Franklin

Franklin

Franklin

Templeton

Janus Henderson

Janus Henderson
 
Small-Mid

Strategic

U.S. Government

Global

Balanced

Enterprise
 
Cap Growth VIP

Income VIP

Securities VIP

Bond VIP

Portfolio

Portfolio
 
Fund Class 1

Fund Class 1

Fund Class 1

Fund Class 1

Institutional Shares*

Institutional Shares*
 











NET INVESTMENT INCOME (LOSS)











Dividends
$
—


$
302


$
457


$
—


$
305


$
51













    Net investment income (loss)
—


302


457


—


305


51

























NET REALIZED AND UNREALIZED











  GAINS (LOSSES) ON INVESTMENTS











Realized gains (losses) on











  fund shares:











    Proceeds from sales
1,761


1,645


538


1,535


2,655


6,827

    Cost of investments sold
2,026


1,755


580


1,647


2,290


5,582













      Realized gains (losses)











        on fund shares
(265
)

(110
)

(42
)

(112
)

365


1,245













Realized gain distributions
1,525


—


—


77


38


1,252













    Net realized gains (losses)
1,260


(110
)

(42
)

(35
)

403


2,497













Change in unrealized gains (losses)
2,099


249


(149
)

529


2,422


1,975













    Net realized and change in unrealized











      gains (losses) on investments
3,359


139


(191
)

494


2,825


4,472

























INCREASE (DECREASE) IN NET











  ASSETS FROM OPERATIONS
$
3,359


$
441


$
266


$
494


$
3,130


$
4,523

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.


See notes to financial statements.

25



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2017
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Janus Aspen
 
Janus Aspen
 
Janus Aspen
 
Janus Aspen
 
Janus Aspen
 
Janus Aspen
 
Series
 
Series
 
Series
 
Series
 
Series
 
Series
 
(Service Shares)
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Janus Henderson
 
Janus Henderson
 
Janus Henderson
 
Janus Henderson
 
Janus Henderson
 

 
Flexible
 
Forty
 
Global
 
Mid
 
Overseas
 
Janus Henderson
 
Bond Portfolio
 
Portfolio
 
Technology Portfolio
 
Cap Value Portfolio
 
Portfolio
 
Balanced Portfolio
 
Institutional Shares*
 
Institutional Shares*
 
Institutional Shares*
 
Institutional Shares*
 
Institutional Shares*
 
Service Shares*
 

 

 

 

 

 

NET INVESTMENT INCOME (LOSS)

 

 

 

 

 

Dividends
$
529

 
$
—

 
$
—

 
$
69

 
$
424

 
$
4,841



 

 

 

 

 

    Net investment income (loss)
529


—

 
—


69


424


4,841





 











 







NET REALIZED AND UNREALIZED



 







  GAINS (LOSSES) ON INVESTMENTS



 







Realized gains (losses) on



 







  fund shares:



 







    Proceeds from sales
1,106


4,325

 
3,669


352


4,093


9,577

    Cost of investments sold
1,170


4,189

 
2,548


352


5,157


7,893





 







      Realized gains (losses)



 







        on fund shares
(64
)

136

 
1,121


—


(1,064
)

1,684





 







Realized gain distributions
—


6,344

 
947


312


—


664





 







    Net realized gains (losses)
(64
)

6,480

 
2,068


312


(1,064
)

2,348





 







Change in unrealized gains (losses)
166


23,974

 
3,101


758


6,682


50,053





 







    Net realized and change in unrealized



 







      gains (losses) on investments
102


30,454

 
5,169


1,070


5,618


52,401





 











 







INCREASE (DECREASE) IN NET



 







  ASSETS FROM OPERATIONS
$
631


$
30,454

 
$
5,169


$
1,139


$
6,042


$
57,242

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.


See notes to financial statements.

26



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2017
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Legg Mason
 
Legg Mason
 
Janus Aspen
 
Janus Aspen
 
Janus Aspen
 
Lazard
 
Partners
 
Partners
 
Series
 
Series
 
Series
 
Retirement
 
Variable
 
Variable
 
(Service Shares)
 
(Service Shares)
 
(Service Shares)
 
Series, Inc.
 
Portfolios I, Inc.
 
Portfolios I, Inc.
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Janus Henderson
 
Janus Henderson
 
Janus Henderson
 

 
ClearBridge
 
Western Assets
 
Global Research
 
Mid Cap Value
 
Overseas
 
Emerging
 
Variable
 
Variable Global
 
Portfolio
 
Portfolio
 
Portfolio
 
Markets
 
Large Cap Value
 
High Yield Bond
 
Service Shares*
 
Service Shares*
 
Service Shares*
 
Equity
 
Portfolio Class I
 
Portfolio Class I
 

 

 

 

 

 

NET INVESTMENT INCOME (LOSS)

 

 

 

 

 

Dividends
$
299

 
$
962

 
$
1,442

 
$
592

 
$
2,172

 
$
5,649



 

 

 

 

 

    Net investment income (loss)
299


962


1,442


592


2,172


5,649

























NET REALIZED AND UNREALIZED











  GAINS (LOSSES) ON INVESTMENTS











Realized gains (losses) on











  fund shares:











    Proceeds from sales
3,719


8,125


5,344


2,796


7,364


3,591

    Cost of investments sold
2,427


7,548


7,161


2,529


6,915


3,727













      Realized gains (losses)











        on fund shares
1,292


577


(1,817
)

267


449


(136
)












Realized gain distributions
—


5,619


—


—


4,661


—













    Net realized gains (losses)
1,292


6,196


(1,817
)

267


5,110


(136
)












Change in unrealized gains (losses)
8,433


12,344


23,761


6,924


14,026


2,971













    Net realized and change in unrealized











      gains (losses) on investments
9,725


18,540


21,944


7,191


19,136


2,835

























INCREASE (DECREASE) IN NET











  ASSETS FROM OPERATIONS
$
10,024


$
19,502


$
23,386


$
7,783


$
21,308


$
8,484

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.

 


See notes to financial statements.

27



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2017
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
MFS Variable
 
MFS Variable
 
MFS Variable
 
MFS Variable
 
MFS Variable
 
MFS Variable
 
Insurance
 
Insurance
 
Insurance
 
Insurance
 
Insurance
 
Insurance
 
Trust
 
Trust
 
Trust
 
Trust
 
Trust
 
Trust
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 

 

 
MFS Mass
 

 

 

 

 

 
Investors Growth
 

 

 

 
MFS High
 
MFS Investors
 
Stock Series -
 
MFS New
 
MFS Total
 

 
Yield Portfolio
 
Trust
 
Initial Class
 
Discovery
 
Return
 
MFS Utilities
 

 

 

 

 

 

NET INVESTMENT INCOME (LOSS)

 

 

 

 

 

Dividends
$
3,566

 
$
142

 
$
379

 
$
—

 
$
2,346

 
$
3,025



 

 

 

 

 

    Net investment income (loss)
3,566


142


379


—


2,346


3,025

























NET REALIZED AND UNREALIZED











  GAINS (LOSSES) ON INVESTMENTS











Realized gains (losses) on











  fund shares:











    Proceeds from sales
2,496


1,549


3,325


14,742


4,794


9,594

    Cost of investments sold
2,565


1,253


3,363


11,322


4,061


8,486













      Realized gains (losses)











        on fund shares
(69
)

296


(38
)

3,420


733


1,108













Realized gain distributions
—


765


3,020


3,501


2,730


—













    Net realized gains (losses)
(69
)

1,061


2,982


6,921


3,463


1,108













Change in unrealized gains (losses)
30


2,816


10,782


35,531


5,690


5,069













    Net realized and change in unrealized











      gains (losses) on investments
(39
)

3,877


13,764


42,452


9,153


6,177

























INCREASE (DECREASE) IN NET











  ASSETS FROM OPERATIONS
$
3,527


$
4,019


$
14,143


$
42,452


$
11,499


$
9,202









See notes to financial statements.

28



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2017
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
MFS Variable
 
Morgan Stanley
 
Morgan Stanley
 
Morgan Stanley
 
Oppenheimer
 
Oppenheimer
 
Insurance
 
Variable Insurance
 
Variable Insurance
 
Variable Insurance
 
Variable
 
Variable
 
Trust
 
Fund, Inc.*
 
Fund, Inc.*
 
Fund, Inc.*
 
Account Funds
 
Account Funds
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 

 
Morgan Stanley
 
Morgan Stanley
 
Morgan Stanley
 

 

 

 
VIF Emerging
 
VIF
 
VIF U.S.
 
Oppenheimer
 
Oppenheimer
 

 
Markets Equity
 
Growth
 
Real Estate
 
Conservative
 
Discovery
 
MFS Value
 
Portfolio Class I*
 
Portfolio Class I*
 
Portfolio Class I*
 
Balance Fund
 
MidCap Growth
 

 

 

 

 

 

NET INVESTMENT INCOME (LOSS)

 

 

 

 

 

Dividends
$
1,285

 
$
141

 
$
—

 
$
1,862

 
$
265

 
$
37



 

 

 

 

 

    Net investment income (loss)
1,285


141


—


1,862


265


37

























NET REALIZED AND UNREALIZED











  GAINS (LOSSES) ON INVESTMENTS











Realized gains (losses) on











  fund shares:











    Proceeds from sales
14,469


485


8,914


3,219


634


8,572

    Cost of investments sold
10,792


423


6,606


2,217


533


5,677













      Realized gains (losses)











        on fund shares
3,677


62


2,308


1,002


101


2,895













Realized gain distributions
2,630


—


7,625


—


—


12,086













    Net realized gains (losses)
6,307


62


9,933


1,002


101


14,981













Change in unrealized gains (losses)
3,867


5,202


21,733


1,045


870


15,401













    Net realized and change in unrealized











      gains (losses) on investments
10,174


5,264


31,666


2,047


971


30,382

























INCREASE (DECREASE) IN NET











  ASSETS FROM OPERATIONS
$
11,459


$
5,405


$
31,666


$
3,909


$
1,236


$
30,419

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.


See notes to financial statements.

29



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2017
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Oppenheimer
 
Oppenheimer
 
Oppenheimer
 
Oppenheimer
 
Oppenheimer
 
Oppenheimer
 
Variable
 
Variable
 
Variable
 
Variable
 
Variable
 
Variable
 
Account Funds
 
Account Funds
 
Account Funds
 
Account Funds
 
Account Funds
 
Account Funds
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 

 

 

 
Oppenheimer
 

 

 

 

 
Oppenheimer
 
Global
 
Oppenheimer
 

 
Oppenheimer
 
Oppenheimer
 
Global Fund/VA-
 
Strategic
 
International
 
Oppenheimer
 
Equity Income*
 
Global
 
Service Shares*
 
Income
 
Growth Fund/VA*
 
Main Street*
 

 

 

 

 

 

NET INVESTMENT INCOME (LOSS)

 

 

 

 

 

Dividends
$
189

 
$
118

 
$
2,769

 
$
120

 
$
1,515

 
$
107



 

 

 

 

 

    Net investment income (loss)
189


118


2,769

 
120


1,515


107







 











 





NET REALIZED AND UNREALIZED





 





  GAINS (LOSSES) ON INVESTMENTS





 





Realized gains (losses) on





 





  fund shares:





 





    Proceeds from sales
8,724


1,187


22,703

 
1,395


8,692


638

    Cost of investments sold
7,988


937


17,267

 
1,461


6,623


625







 





      Realized gains (losses)





 





        on fund shares
736


250


5,436

 
(66
)

2,069


13







 





Realized gain distributions
—


—


—

 
—


—


144







 





    Net realized gains (losses)
736


250


5,436

 
(66
)

2,069


157







 





Change in unrealized gains (losses)
(669
)

3,569


108,169

 
256


20,470


537







 





    Net realized and change in unrealized





 





      gains (losses) on investments
67


3,819


113,605

 
190


22,539


694







 











 





INCREASE (DECREASE) IN NET





 





  ASSETS FROM OPERATIONS
$
256


$
3,937


$
116,374

 
$
310


$
24,054


$
801

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.


See notes to financial statements.

30



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2017
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
PIMCO
 
PIMCO
 
PIMCO
 
Putnam
 
Oppenheimer
 
Oppenheimer
 
Variable
 
Variable
 
Variable
 
Variable
 
Variable
 
Variable
 
Insurance
 
Insurance
 
Insurance
 
Trust
 
Account Funds
 
Account Funds
 
Trust
 
Trust
 
Trust
 
(Class IA)
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Oppenheimer
 

 

 

 

 

 
Main Street
 
Oppenheimer
 

 

 

 

 
Small
 
Total Return
 

 
PIMCO
 
PIMCO
 
VT High Yield
 
Cap
 
Bond Fund/VA*
 
Foreign Bond
 
Real Return
 
Total Return
 
(Class IA)
 

 

 

 

 

 

NET INVESTMENT INCOME (LOSS)

 

 

 

 

 

Dividends
$
5,814

 
$
130

 
$
2,173

 
$
2,685

 
$
4,598

 
$
4,741



 

 

 

 

 

    Net investment income (loss)
5,814


130


2,173


2,685


4,598


4,741

























NET REALIZED AND UNREALIZED











  GAINS (LOSSES) ON INVESTMENTS











Realized gains (losses) on











  fund shares:











    Proceeds from sales
36,343


371


3,239


6,117


12,459


9,982

    Cost of investments sold
28,673


373


2,992


6,403


12,499


10,192













      Realized gains (losses)











        on fund shares
7,670


(2
)

247


(286
)

(40
)

(210
)












Realized gain distributions
35,687


—


—


—


—


—













    Net realized gains (losses)
43,357


(2
)

247


(286
)

(40
)

(210
)












Change in unrealized gains (losses)
41,103


111


(1,188
)

1,629


6,132


1,079













    Net realized and change in unrealized











      gains (losses) on investments
84,460


109


(941
)

1,343


6,092


869

























INCREASE (DECREASE) IN NET











  ASSETS FROM OPERATIONS
$
90,274


$
239


$
1,232


$
4,028


$
10,690


$
5,610

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.


See notes to financial statements.

31



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2017
 

 

 

 

 

 

 

 

 

 

 

 

 

 
Putnam
 

 

 

 

 

 
Variable
 
Rydex
 
T. Rowe Price
 
T. Rowe Price
 
The
 
The
 
Trust
 
Variable
 
Equity
 
Equity
 
Alger
 
Alger
 
(Class IA)
 
Trust
 
Series, Inc.
 
Series, Inc.
 
Portfolios
 
Portfolios
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 

 
Guggenheim
 

 

 

 
Alger
 
VT International
 
VT U.S.
 
T. Rowe Price
 

 
Alger
 
Capital
 
Value Fund
 
Long Short
 
Blue Chip
 
T. Rowe Price
 
Balanced
 
Appreciation
 
(Class IA)
 
Equity Fund
 
Growth
 
Equity Income
 
Class I-2
 
Class I-2
 

 

 

 

 

 

NET INVESTMENT INCOME (LOSS)

 

 

 

 

 

Dividends
$
422

 
$
115

 
$
—

 
$
8,167

 
$
172

 
$
465



 

 

 

 

 

    Net investment income (loss)
422


115


—


8,167


172


465

























NET REALIZED AND UNREALIZED











  GAINS (LOSSES) ON INVESTMENTS











Realized gains (losses) on











  fund shares:











    Proceeds from sales
1,134


3,877


9,817


56,550


598


13,371

    Cost of investments sold
939


2,921


3,949


42,055


491


9,907













      Realized gains (losses)











        on fund shares
195


956


5,868


14,495


107


3,464













Realized gain distributions
—


—


2,901


44,664


—


18,080













    Net realized gains (losses)
195


956


8,769


59,159


107


21,544













Change in unrealized gains (losses)
5,050


3,394


59,495


1,981


339


49,620













    Net realized and change in unrealized











      gains (losses) on investments
5,245


4,350


68,264


61,140


446


71,164

























INCREASE (DECREASE) IN NET











  ASSETS FROM OPERATIONS
$
5,667


$
4,465


$
68,264


$
69,307


$
618


$
71,629









See notes to financial statements.

32



ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2017
 

 

 

 

 

 
 

 

 

 

 
 

 

 

 

 
 
The
 
The
 
VanEck
 
VanEck
 
 
Alger
 
Alger
 
VIP
 
VIP
 
 
Portfolios
 
Portfolios
 
Trust*
 
Trust*
 
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
Sub-Account
 
 
Alger
 
Alger
 
VanEck VIP
 
VanEck VIP
 
 
Large Cap
 
MidCap
 
Emerging
 
Global
 
 
Growth
 
Growth
 
Markets
 
Hard Assets
 
 
Class I-2
 
Class I-2
 
Fund Initial Class*
 
Fund Initial Class*
 
 

 

 

 

 
NET INVESTMENT INCOME (LOSS)

 

 

 

 
Dividends
$
—

 
$
—

 
$
480

 
$
—

 


 

 

 

 
    Net investment income (loss)
—


—


480


—




















NET REALIZED AND UNREALIZED








  GAINS (LOSSES) ON INVESTMENTS








Realized gains (losses) on








  fund shares:








    Proceeds from sales
48,993


41,432


3,371


3,833


    Cost of investments sold
35,463


25,425


3,047


4,699











      Realized gains (losses)








        on fund shares
13,530


16,007


324


(866
)










Realized gain distributions
25,081


8,858


—


—











    Net realized gains (losses)
38,611


24,865


324


(866
)










Change in unrealized gains (losses)
30,674


72,162


46,797


1,002











    Net realized and change in unrealized








      gains (losses) on investments
69,285


97,027


47,121


136




















INCREASE (DECREASE) IN NET








  ASSETS FROM OPERATIONS
$
69,285


$
97,027


$
47,601


$
136


* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.

See notes to financial statements.

33


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 


 AIM Variable

 AIM Variable

 AIM Variable

Insurance Funds

Insurance Funds

Insurance Funds

(Invesco Variable Insurance Funds)*

(Invesco Variable Insurance Funds)*

(Invesco Variable Insurance Funds)*

Sub-Account

Sub-Account

Sub-Account







Invesco V.I.

Invesco V.I.



American

American

Invesco V.I.

Franchise

Value

Core Equity

2017

2016

2017

2016

2017

2016
INCREASE (DECREASE) IN NET ASSETS











FROM OPERATIONS











Net investment income (loss)
$
203


$
—


$
44


$
16


$
215


$
133

Net realized gains (losses)
27,311


22,744


89


204


1,160


1,950

Change in unrealized gains (losses)
30,259


(17,901
)

379


420


1,114


(268
)












Increase (decrease) in net assets











from operations
57,773


4,843


512


640


2,489


1,815













INCREASE (DECREASE) IN NET ASSETS











   FROM POLICY TRANSACTIONS











Deposits
18,091


18,783


1,885


1,899


2,510


3,040

Benefit payments
—


—


—


—


—


—

Payments on termination
(10,490
)

(6,039
)

—


(84
)

(2
)

(113
)
Loans - net
1,238


(3,517
)

(10
)

(10
)

62


415

Policy maintenance charge
(15,539
)

(14,869
)

(1,324
)

(1,339
)

(1,026
)

(1,142
)
Transfers among the sub-accounts











and with the Fixed Account - net
(970
)

4,487


64


(55
)

(742
)

(4,410
)












Increase (decrease) in net assets











from policy transactions
(7,670
)

(1,155
)

615


411


802


(2,210
)












INCREASE (DECREASE) IN NET ASSETS
50,103


3,688


1,127


1,051


3,291


(395
)












NET ASSETS AT BEGINNING OF PERIOD
212,180


208,492


4,681


3,630


18,496


18,891













NET ASSETS AT END OF PERIOD
$
262,283


$
212,180


$
5,808


$
4,681


$
21,787


$
18,496

























ACCUMULATION UNITS OUTSTANDING











   Units outstanding at beginning of











      period
13,335


13,400


247


221


966


1,088

         Units issued
726


878


63


71


60


113

         Units redeemed
(1,116
)

(943
)

(31
)

(45
)

(20
)

(235
)
   Units outstanding at end of period
12,945


13,335


279


247


1,006


966

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.




See notes to financial statements.

34


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 AIM Variable
 
 AIM Variable
 
 AIM Variable
 
Insurance Funds
 
Insurance Funds
 
Insurance Funds
 
(Invesco Variable Insurance Funds)*
 
(Invesco Variable Insurance Funds)*
 
(Invesco Variable Insurance Funds)*
 
Sub-Account

Sub-Account

Sub-Account
 

 
Invesco V.I.
 

 
Invesco V.I.
 
Growth and
 

 
Government
 
Income Fund
 
Invesco V.I.
 
Securities
 
Series I
 
High Yield
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

FROM OPERATIONS

 

 

 

 

 

Net investment income (loss)
$
951


$
856


$
4,195


$
2,612


$
1,213


$
1,115

Net realized gains (losses)
(90
)

(189
)

12,176


21,545


58


(2
)
Change in unrealized gains (losses)
(3
)

(217
)

20,402


18,439


535


1,669













Increase (decrease) in net assets











from operations
858


450


36,773


42,596


1,806


2,782



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

   FROM POLICY TRANSACTIONS

 

 

 

 

 

Deposits
6,995

 
6,975

 
22,632

 
21,007

 
2,578

 
2,839

Benefit payments
—

 
—

 
—

 
—

 
—

 
—

Payments on termination
(3,845
)
 
(5,885
)
 
(1,124
)
 
(22,111
)
 
(285
)
 
—

Loans - net
1,978

 
(88
)
 
(2,452
)
 
(1,045
)
 
(500
)
 
—

Policy maintenance charge
(4,541
)
 
(4,817
)
 
(14,177
)
 
(13,647
)
 
(1,998
)
 
(2,038
)
Transfers among the sub-accounts

 

 

 

 

 

and with the Fixed Account - net
2,489

 
1,542

 
(404
)
 
(493
)
 
653

 
633



 

 

 

 

 

Increase (decrease) in net assets

 

 

 

 

 

from policy transactions
3,076

 
(2,273
)
 
4,475

 
(16,289
)
 
448

 
1,434



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS
3,934

 
(1,823
)
 
41,248

 
26,307

 
2,254

 
4,216



 

 

 

 

 

NET ASSETS AT BEGINNING OF PERIOD
42,240

 
44,063

 
254,262

 
227,955

 
28,264

 
24,048



 

 

 

 

 

NET ASSETS AT END OF PERIOD
$
46,174

 
$
42,240

 
$
295,510

 
$
254,262

 
$
30,518

 
$
28,264



 

 

 

 

 



 

 

 

 

 

ACCUMULATION UNITS OUTSTANDING

 

 

 

 

 

   Units outstanding at beginning of

 

 

 

 

 

      period
3,745

 
3,955

 
7,131

 
7,599

 
2,135

 
2,020

         Units issued
522

 
456

 
357

 
370

 
126

 
149

         Units redeemed
(251
)
 
(666
)
 
(207
)
 
(838
)
 
(93
)
 
(34
)
   Units outstanding at end of period
4,016


3,745


7,281


7,131


2,168


2,135

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.



See notes to financial statements.

35


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 AIM Variable

 AIM Variable

 AIM Variable
 
Insurance Funds

Insurance Funds

Insurance Funds
 
(Invesco Variable Insurance Funds)*

(Invesco Variable Insurance Funds)*

(Invesco Variable Insurance Funds)*
 
Sub-Account

Sub-Account

Sub-Account
 


Invesco V.I.


 
Invesco V.I.

Mid Cap

Invesco V.I.
 
Mid Cap

Growth

Value
 
Core Equity

Fund-Series II*

Opportunity
 
2017

2016

2017

2016

2017

2016
INCREASE (DECREASE) IN NET ASSETS











FROM OPERATIONS











Net investment income (loss)
$
564


$
70


$
—


$
—


$
335


$
283

Net realized gains (losses)
2,494


5,679


5,596


7,514


(500
)

20,272

Change in unrealized gains (losses)
11,460


5,458


6,795


(7,232
)

13,717


(8,464
)












Increase (decrease) in net assets











from operations
14,518


11,207


12,391


282


13,552


12,091













INCREASE (DECREASE) IN NET ASSETS











   FROM POLICY TRANSACTIONS











Deposits
9,226


9,719


6,241


6,453


8,507


10,003

Benefit payments
—


—


—


—


—


—

Payments on termination
(2,833
)

(4,530
)

(2,167
)

(4,566
)

(6,946
)

(3,588
)
Loans - net
(884
)

(1,519
)

(1,192
)

378


1,442


(1,519
)
Policy maintenance charge
(5,086
)

(5,117
)

(3,713
)

(3,817
)

(5,556
)

(5,271
)
Transfers among the sub-accounts











and with the Fixed Account - net
1,304


257


133


92


(2,034
)

3,567













Increase (decrease) in net assets











from policy transactions
1,727


(1,190
)

(698
)

(1,460
)

(4,587
)

3,192













INCREASE (DECREASE) IN NET ASSETS
16,245


10,017


11,693


(1,178
)

8,965


15,283













NET ASSETS AT BEGINNING OF PERIOD
97,237


87,220


55,456


56,634


80,355


65,072













NET ASSETS AT END OF PERIOD
$
113,482


$
97,237


$
67,149


$
55,456


$
89,320


$
80,355

























ACCUMULATION UNITS OUTSTANDING











   Units outstanding at beginning of











      period
4,195


4,269


2,246


2,307


4,582


4,391

         Units issued
271


534


139


194


314


1,049

         Units redeemed
(206
)

(608
)

(157
)

(255
)

(559
)

(858
)
   Units outstanding at end of period
4,260


4,195


2,228


2,246


4,337


4,582

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.



See notes to financial statements.

36


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 
 
 
 
 
 
 
 
 
 
 
 
AllianceBernstein Fund
 
AllianceBernstein Fund
 
AllianceBernstein Fund
 
Sub-Account

Sub-Account

Sub-Account
 
VPS
 
VPS
 
VPS
 
Growth
 
International
 
International
 
and Income
 
Growth
 
Value
 
Class A
 
Class A
 
Class A
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

FROM OPERATIONS

 

 

 

 

 

Net investment income (loss)
$
209


$
150


$
251


$
—


$
403


$
201

Net realized gains (losses)
1,460


1,806


442


293


95


(144
)
Change in unrealized gains (losses)
836


(545
)

5,651


(1,382
)

3,455


(144
)












Increase (decrease) in net assets











from operations
2,505


1,411


6,344


(1,089
)

3,953


(87
)


 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

   FROM POLICY TRANSACTIONS

 

 

 

 

 

Deposits
4,212

 
4,848

 
3,830

 
3,502

 
1,179

 
1,577

Benefit payments
—

 
—

 
—

 
—

 
—

 
—

Payments on termination
(138
)
 
—

 
—

 
(175
)
 
(135
)
 
(1,483
)
Loans - net
(37
)
 
(4,226
)
 
(11
)
 
(2,740
)
 
—

 
—

Policy maintenance charge
(2,881
)
 
(2,842
)
 
(2,606
)
 
(2,483
)
 
(870
)
 
(860
)
Transfers among the sub-accounts

 

 

 

 

 

and with the Fixed Account - net
555

 
(59
)
 
(531
)
 
845

 
(329
)
 
1,153



 

 

 

 

 

Increase (decrease) in net assets

 

 

 

 

 

from policy transactions
1,711

 
(2,279
)
 
682

 
(1,051
)
 
(155
)
 
387



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS
4,216

 
(868
)
 
7,026

 
(2,140
)
 
3,798

 
300



 

 

 

 

 

NET ASSETS AT BEGINNING OF PERIOD
12,541

 
13,409

 
17,229

 
19,369

 
15,574

 
15,274



 

 

 

 

 

NET ASSETS AT END OF PERIOD
$
16,757

 
$
12,541

 
$
24,255

 
$
17,229

 
$
19,372

 
$
15,574



 

 

 

 

 



 

 

 

 

 

ACCUMULATION UNITS OUTSTANDING

 

 

 

 

 

   Units outstanding at beginning of

 

 

 

 

 

      period
681

 
811

 
2,082

 
2,180

 
2,110

 
2,059

         Units issued
126

 
150

 
340

 
350

 
94

 
299

         Units redeemed
(42
)
 
(280
)
 
(251
)
 
(448
)
 
(111
)
 
(248
)
   Units outstanding at end of period
765


681


2,171


2,082


2,093


2,110






See notes to financial statements.

37


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 
 
 
 
 
 
 
 
 
 
 Alps Variable
 
AllianceBernstein Fund
 
AllianceBernstein Fund
 
Investments Trust*
 
Sub-Account

Sub-Account

Sub-Account
 
VPS
 
VPS
 
Morningstar
 
Small Cap
 
Small/Mid Cap
 
Aggressive Growth
 
Growth
 
Value
 
ETF Asset Allocation
 
Class A
 
Class A
 
Portfolio Class I
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

FROM OPERATIONS

 

 

 

 

 

Net investment income (loss)
$
—


$
—


$
12


$
13


$
3,927


$
3,056

Net realized gains (losses)
(509
)

5,616


221


98


18,025


10,619

Change in unrealized gains (losses)
8,527


(4,169
)

125


374


24,197


6,426













Increase (decrease) in net assets











from operations
8,018


1,447


358


485


46,149


20,101



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

   FROM POLICY TRANSACTIONS

 

 

 

 

 

Deposits
7,054

 
6,019

 
1,558

 
961

 
96,124

 
87,976

Benefit payments
—

 
—

 
—

 
—

 
—

 
—

Payments on termination
(875
)
 
(317
)
 
(643
)
 
(87
)
 
(5,863
)
 
(6,655
)
Loans - net
529

 
—

 
—

 
—

 
(77
)
 
(902
)
Policy maintenance charge
(3,482
)
 
(3,660
)
 
(676
)
 
(711
)
 
(54,135
)
 
(48,398
)
Transfers among the sub-accounts

 

 

 

 

 

and with the Fixed Account - net
(1,222
)
 
(212
)
 
(437
)
 
(17
)
 
3,394

 
3,212



 

 

 

 

 

Increase (decrease) in net assets

 

 

 

 

 

from policy transactions
2,004

 
1,830

 
(198
)
 
146

 
39,443

 
35,233



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS
10,022

 
3,277

 
160

 
631

 
85,592

 
55,334



 

 

 

 

 

NET ASSETS AT BEGINNING OF PERIOD
22,804

 
19,527

 
2,431

 
1,800

 
210,083

 
154,749



 

 

 

 

 

NET ASSETS AT END OF PERIOD
$
32,826

 
$
22,804

 
$
2,591

 
$
2,431

 
$
295,675

 
$
210,083



 

 

 

 

 



 

 

 

 

 

ACCUMULATION UNITS OUTSTANDING

 

 

 

 

 

   Units outstanding at beginning of

 

 

 

 

 

      period
1,067

 
973

 
110

 
102

 
14,804

 
12,152

         Units issued
188

 
201

 
72

 
28

 
3,278

 
3,640

         Units redeemed
(109
)
 
(107
)
 
(78
)
 
(20
)
 
(744
)
 
(988
)
   Units outstanding at end of period
1,146


1,067


104


110


17,338


14,804

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.




See notes to financial statements.

38


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 

 

 
 
 Alps Variable

 Alps Variable

 Alps Variable
 
Investments Trust*

Investments Trust*

Investments Trust*
 
Sub-Account

Sub-Account

Sub-Account
 
Morningstar

Morningstar

Morningstar
 
Balanced

Conservative ETF

Growth ETF
 
ETF Asset Allocation

Asset Allocation

Asset Allocation
 
Portfolio Class I

Portfolio Class I

Portfolio Class I
 
2017

2016

2017

2016

2017

2016
INCREASE (DECREASE) IN NET ASSETS











FROM OPERATIONS











Net investment income (loss)
$
6,162


$
5,264


$
1,090


$
782


$
7,240


$
6,260

Net realized gains (losses)
21,545


13,241


230


1,087


28,388


16,493

Change in unrealized gains (losses)
11,207


1,981


1,746


289


34,308


8,081













Increase (decrease) in net assets











from operations
38,914


20,486


3,066


2,158


69,936


30,834













INCREASE (DECREASE) IN NET ASSETS











   FROM POLICY TRANSACTIONS











Deposits
111,141


108,660


20,821


21,495


143,851


120,315

Benefit payments
—


—


—


—


—


—

Payments on termination
(13,884
)

(48,720
)

(1,020
)

(10,472
)

(32,106
)

(12,365
)
Loans - net
(1,840
)

(2,225
)

—


—


—


4,266

Policy maintenance charge
(69,504
)

(65,576
)

(11,090
)

(10,177
)

(75,927
)

(62,331
)
Transfers among the sub-accounts











and with the Fixed Account - net
7,359


5,252


(884
)

1,231


12,208


11,268













Increase (decrease) in net assets











from policy transactions
33,272


(2,609
)

7,827


2,077


48,026


61,153













INCREASE (DECREASE) IN NET ASSETS
72,186


17,877


10,893


4,235


117,962


91,987













NET ASSETS AT BEGINNING OF PERIOD
269,063


251,186


44,487


40,252


376,550


284,563













NET ASSETS AT END OF PERIOD
$
341,249


$
269,063


$
55,380


$
44,487


$
494,512


$
376,550

























ACCUMULATION UNITS OUTSTANDING











   Units outstanding at beginning of











      period
18,962


18,929


3,431


3,256


25,922


21,478

         Units issued
3,523


4,022


847


1,130


5,508


5,963

         Units redeemed
(1,325
)

(3,989
)

(266
)

(955
)

(2,476
)

(1,519
)
   Units outstanding at end of period
21,160


18,962


4,012


3,431


28,954


25,922

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.




See notes to financial statements.

39


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 

 Deutsche

 Deutsche
 
 Alps Variable

Investments Variable

Investments Variable
 
Investments Trust*

Insurance Trust

Insurance Trust
 
Sub-Account

Sub-Account

Sub-Account
 
Morningstar Income

Deutsche

Deutsche
 
and Growth ETF

Equity 500

Small Cap
 
Asset Allocation

Index VIP

Index VIP
 
Portfolio Class I

Class A

Class A
 
2017

2016

2017

2016

2017

2016
INCREASE (DECREASE) IN NET ASSETS











FROM OPERATIONS











Net investment income (loss)
$
2,644


$
2,441


$
3,258


$
3,166


$
697


$
654

Net realized gains (losses)
5,640


6,129


11,369


12,779


7,133


4,941

Change in unrealized gains (losses)
3,384


(2,046
)

22,269


1,789


1,541


6,865













Increase (decrease) in net assets











from operations
11,668


6,524


36,896


17,734


9,371


12,460













INCREASE (DECREASE) IN NET ASSETS











   FROM POLICY TRANSACTIONS











Deposits
53,961


49,786


13,572


14,093


4,578


4,672

Benefit payments
—


—


—


—


—


—

Payments on termination
(29,827
)

(373
)

(2,763
)

(387
)

(11,755
)

(170
)
Loans - net
—


—


(932
)

(308
)

(4,099
)

542

Policy maintenance charge
(22,683
)

(20,824
)

(8,019
)

(7,953
)

(3,796
)

(4,020
)
Transfers among the sub-accounts











and with the Fixed Account - net
1,128


(2,904
)

(1,360
)

(370
)

(791
)

(532
)












Increase (decrease) in net assets











from policy transactions
2,579


25,685


498


5,075


(15,863
)

492













INCREASE (DECREASE) IN NET ASSETS
14,247


32,209


37,394


22,809


(6,492
)

12,952













NET ASSETS AT BEGINNING OF PERIOD
118,127


85,918


171,806


148,997


70,708


57,756













NET ASSETS AT END OF PERIOD
$
132,374


$
118,127


$
209,200


$
171,806


$
64,216


$
70,708

























ACCUMULATION UNITS OUTSTANDING











   Units outstanding at beginning of











      period
8,717


6,766


4,958


4,799


1,625


1,607

         Units issued
2,536


2,255


231


303


60


99

         Units redeemed
(2,383
)

(304
)

(221
)

(144
)

(395
)

(81
)
   Units outstanding at end of period
8,870


8,717


4,968


4,958


1,290


1,625

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.
 



See notes to financial statements.

40


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 

 

 
 
 Deutsche

Fidelity Variable

Fidelity Variable
 
Variable Series II

Insurance Products Fund

Insurance Products Fund
 
Sub-Account

Sub-Account

Sub-Account
 
Deutsche




 
Global Income




 
Builder VIP

VIP Asset

VIP
 
Class A

Manager

Contrafund
 
2017

2016

2017

2016

2017

2016
INCREASE (DECREASE) IN NET ASSETS











FROM OPERATIONS











Net investment income (loss)
$
2,334


$
2,704


$
1,543


$
1,104


$
8,755


$
6,115

Net realized gains (losses)
337


33


8,757


3,267


57,603


70,426

Change in unrealized gains (losses)
9,498


1,779


234


(2,120
)

103,031


(18,817
)












Increase (decrease) in net assets











from operations
12,169


4,516


10,534


2,251


169,389


57,724













INCREASE (DECREASE) IN NET ASSETS











   FROM POLICY TRANSACTIONS











Deposits
8,664


8,440


8,162


9,825


84,100


85,064

Benefit payments
—


—


—


—


—


—

Payments on termination
(1,231
)

—


(3,342
)

(7,549
)

(27,131
)

(53,953
)
Loans - net
—


625


80


(29
)

222


(5,233
)
Policy maintenance charge
(5,567
)

(5,340
)

(4,474
)

(4,685
)

(51,338
)

(51,011
)
Transfers among the sub-accounts











and with the Fixed Account - net
372


(11
)

242


148


(4,284
)

(4,878
)












Increase (decrease) in net assets











from policy transactions
2,238


3,714


668


(2,290
)

1,569


(30,011
)












INCREASE (DECREASE) IN NET ASSETS
14,407


8,230


11,202


(39
)

170,958


27,713













NET ASSETS AT BEGINNING OF PERIOD
71,848


63,618


74,828


74,867


772,874


745,161













NET ASSETS AT END OF PERIOD
$
86,255


$
71,848


$
86,030


$
74,828


$
943,832


$
772,874

























ACCUMULATION UNITS OUTSTANDING











   Units outstanding at beginning of











      period
4,106


3,882


3,156


3,255


20,795


21,582

         Units issued
271


320


211


279


1,242


1,304

         Units redeemed
(148
)

(96
)

(187
)

(378
)

(1,133
)

(2,091
)
   Units outstanding at end of period
4,229


4,106


3,180


3,156


20,904


20,795

 
 



See notes to financial statements.

41


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 

 

 
 
Fidelity Variable

Fidelity Variable

Fidelity Variable
 
Insurance Products Fund

Insurance Products Fund

Insurance Products Fund
 
Sub-Account

Sub-Account

Sub-Account
 




VIP Government
 
VIP



Money Market
 
Emerging

VIP

Portfolio
 
Markets

Equity-Income

Initial Class*
 
2017

2016

2017

2016

2017

2016
INCREASE (DECREASE) IN NET ASSETS











FROM OPERATIONS











Net investment income (loss)
$
88


$
40


$
14,054


$
16,160


$
3,311


$
800

Net realized gains (losses)
179


(27
)

18,283


41,442


—


—

Change in unrealized gains (losses)
4,211


136


65,540


57,268


—


—













Increase (decrease) in net assets











from operations
4,478


149


97,877


114,870


3,311


800













INCREASE (DECREASE) IN NET ASSETS











   FROM POLICY TRANSACTIONS











Deposits
7,213


4,820


76,747


74,468


84,168


66,531

Benefit payments
—


—


—


—


—


—

Payments on termination
(159
)

—


(10,299
)

(23,276
)

(81,666
)

(19,803
)
Loans - net
(150
)

—


(3,392
)

(2,992
)

656


(4,518
)
Policy maintenance charge
(3,549
)

(2,332
)

(43,253
)

(43,616
)

(40,084
)

(33,954
)
Transfers among the sub-accounts











and with the Fixed Account - net
34


246


2,133


(5,643
)

21,974


190,868













Increase (decrease) in net assets











from policy transactions
3,389


2,734


21,936


(1,059
)

(14,952
)

199,124













INCREASE (DECREASE) IN NET ASSETS
7,867


2,883


119,813


113,811


(11,641
)

199,924













NET ASSETS AT BEGINNING OF PERIOD
8,072


5,189


746,939


633,128


505,045


305,121













NET ASSETS AT END OF PERIOD
$
15,939


$
8,072


$
866,752


$
746,939


$
493,404


$
505,045

























ACCUMULATION UNITS OUTSTANDING











   Units outstanding at beginning of











      period
798


530


26,037


26,131


36,157


22,336

         Units issued
352


315


1,606


1,751


8,318


24,307

         Units redeemed
(79
)

(47
)

(891
)

(1,845
)

(8,638
)

(10,486
)
   Units outstanding at end of period
1,071


798


26,752


26,037


35,837


36,157

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.



See notes to financial statements.

42


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 

 

 
 
Fidelity Variable

Fidelity Variable

Fidelity Variable
 
Insurance Products Fund

Insurance Products Fund

Insurance Products Fund
 
Sub-Account

Sub-Account

Sub-Account
 





 


VIP

VIP
 


Growth

High
 
VIP Growth

& Income

Income
 
2017

2016

2017

2016

2017

2016
INCREASE (DECREASE) IN NET ASSETS











FROM OPERATIONS











Net investment income (loss)
$
1,960


$
289


$
537


$
556


$
934


$
846

Net realized gains (losses)
79,507


81,678


2,073


1,716


(6
)

(115
)
Change in unrealized gains (losses)
182,628


(75,745
)

3,726


2,322


249


1,213













Increase (decrease) in net assets











from operations
264,095


6,222


6,336


4,594


1,177


1,944













INCREASE (DECREASE) IN NET ASSETS











   FROM POLICY TRANSACTIONS











Deposits
88,880


84,491


11,363


9,659


5,617


5,662

Benefit payments
—


—


—


—


—


—

Payments on termination
(15,281
)

(29,789
)

(2,212
)

(493
)

(2,648
)

(174
)
Loans - net
(3,129
)

(3,673
)

1,538


241


427


474

Policy maintenance charge
(56,341
)

(52,741
)

(6,471
)

(5,262
)

(3,677
)

(4,149
)
Transfers among the sub-accounts











and with the Fixed Account - net
(9,899
)

3,101


590


536


475


(19
)












Increase (decrease) in net assets











from policy transactions
4,230


1,389


4,808


4,681


194


1,794













INCREASE (DECREASE) IN NET ASSETS
268,325


7,611


11,144


9,275


1,371


3,738













NET ASSETS AT BEGINNING OF PERIOD
746,829


739,218


35,258


25,983


16,528


12,790













NET ASSETS AT END OF PERIOD
$
1,015,154


$
746,829


$
46,402


$
35,258


$
17,899


$
16,528

























ACCUMULATION UNITS OUTSTANDING











   Units outstanding at beginning of











      period
30,064


29,998


1,965


1,681


969


860

         Units issued
1,590


1,972


552


417


188


174

         Units redeemed
(1,327
)

(1,906
)

(305
)

(133
)

(176
)

(65
)
   Units outstanding at end of period
30,327


30,064


2,212


1,965


981


969







See notes to financial statements.

43


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 

 

 
 
Fidelity Variable

Fidelity Variable

Fidelity Variable
 
Insurance Products Fund

Insurance Products Fund

Insurance Products Fund
 
Sub-Account

Sub-Account

Sub-Account
 





 


VIP

VIP
 
VIP

Index 500 -

Investment
 
Index 500

Service Class

Grade Bond
 
2017

2016

2017

2016

2017

2016
INCREASE (DECREASE) IN NET ASSETS











FROM OPERATIONS











Net investment income (loss)
$
14,416


$
10,973


$
3,336


$
2,618


$
7,530


$
7,059

Net realized gains (losses)
43,453


44,760


25,097


1,449


1,558


450

Change in unrealized gains (losses)
96,730


25,591


15,040


15,805


3,628


5,836













Increase (decrease) in net assets











from operations
154,599


81,324


43,473


19,872


12,716


13,345













INCREASE (DECREASE) IN NET ASSETS











   FROM POLICY TRANSACTIONS











Deposits
72,442


76,122


52,429


47,958


45,694


46,434

Benefit payments
—


—


—


—


—


—

Payments on termination
(82,204
)

(16,945
)

(281
)

(1,565
)

(21,454
)

(10,935
)
Loans - net
(6,786
)

787


(65,528
)

(439
)

(1,489
)

(5,610
)
Policy maintenance charge
(45,921
)

(46,930
)

(24,211
)

(21,804
)

(21,101
)

(22,560
)
Transfers among the sub-accounts











and with the Fixed Account - net
961


(87,335
)

6,906


2,598


8,065


(5,093
)












Increase (decrease) in net assets











from policy transactions
(61,508
)

(74,301
)

(30,685
)

26,748


9,715


2,236

 











INCREASE (DECREASE) IN NET ASSETS
93,091


7,023


12,788


46,620


22,431


15,581













NET ASSETS AT BEGINNING OF PERIOD
781,172


774,149


197,493


150,873


297,426


281,845













NET ASSETS AT END OF PERIOD
$
874,263


$
781,172


$
210,281


$
197,493


$
319,857


$
297,426

























ACCUMULATION UNITS OUTSTANDING











   Units outstanding at beginning of











      period
27,297


30,259


10,414


8,890


17,126


16,971

         Units issued
2,315


3,932


1,767


1,834


1,991


1,464

         Units redeemed
(4,511
)

(6,894
)

(3,061
)

(310
)

(1,427
)

(1,309
)
   Units outstanding at end of period
25,101


27,297


9,120


10,414


17,690


17,126

 



See notes to financial statements.

44


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 

 

 
 
Fidelity Variable

Fidelity Variable

Fidelity Variable
 
Insurance Products Fund

Insurance Products Fund

Insurance Products Fund
 
Sub-Account

Sub-Account

Sub-Account
 





 
VIP



VIP
 
Mid

VIP

Real
 
Cap

Overseas

Estate
 
2017

2016

2017

2016

2017

2016
INCREASE (DECREASE) IN NET ASSETS











FROM OPERATIONS











Net investment income (loss)
$
350


$
248


$
3,816


$
3,395


$
484


$
335

Net realized gains (losses)
3,603


2,102


4,978


1,072


1,706


320

Change in unrealized gains (losses)
5,794


3,224


60,262


(15,852
)

(1,286
)

462













Increase (decrease) in net assets











from operations
9,747


5,574


69,056


(11,385
)

904


1,117













INCREASE (DECREASE) IN NET ASSETS











   FROM POLICY TRANSACTIONS











Deposits
12,294


19,429


31,142


30,535


7,100


6,698

Benefit payments
—


—


—


—


—


—

Payments on termination
(10,571
)

(381
)

(15,803
)

(9,152
)

(1,554
)

—

Loans - net
(3,124
)

(60
)

(1,814
)

(391
)

221


124

Policy maintenance charge
(7,692
)

(8,962
)

(16,229
)

(16,144
)

(3,062
)

(2,945
)
Transfers among the sub-accounts











and with the Fixed Account - net
303


1,669


(1,921
)

4,768


1,531


278













Increase (decrease) in net assets











from policy transactions
(8,790
)

11,695


(4,625
)

9,616


4,236


4,155













INCREASE (DECREASE) IN NET ASSETS
957


17,269


64,431


(1,769
)

5,140


5,272













NET ASSETS AT BEGINNING OF PERIOD
51,772


34,503


225,912


227,681


23,406


18,134













NET ASSETS AT END OF PERIOD
$
52,729


$
51,772


$
290,343


$
225,912


$
28,546


$
23,406

























ACCUMULATION UNITS OUTSTANDING











   Units outstanding at beginning of











      period
2,750


2,057


11,589


11,088


1,308


1,071

         Units issued
361


806


855


1,186


434


279

         Units redeemed
(793
)

(113
)

(1,012
)

(685
)

(209
)

(42
)
   Units outstanding at end of period
2,318


2,750


11,432


11,589


1,533


1,308

 
 
 




See notes to financial statements.

45


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 


 

 

 

Fidelity Variable

 Franklin

 Franklin

Insurance Products Fund

Templeton Investments

Templeton Investments

Sub-Account

Sub-Account

Sub-Account



Franklin

Franklin

VIP

High Income

Income

Value

VIP

VIP

Strategies

Fund Class 1*

Fund Class 1

2017

2016

2017

2016

2017

2016
INCREASE (DECREASE) IN NET ASSETS











FROM OPERATIONS











Net investment income (loss)
$
117


$
74


$
8,261


$
806


$
804


$
728

Net realized gains (losses)
1,901


151


(8,385
)

(208
)

112


(45
)
Change in unrealized gains (losses)
(683
)

379


512


1,277


847


1,337













Increase (decrease) in net assets











from operations
1,335


604


388


1,875


1,763


2,020













INCREASE (DECREASE) IN NET ASSETS











   FROM POLICY TRANSACTIONS











Deposits
2,310


2,153


1,619


3,169


4,628


3,833

Benefit payments
—


—


—


—


—


—

Payments on termination
(1,043
)

(583
)

—


(451
)

(846
)

—

Loans - net
427


473


113


474


(1,677
)

—

Policy maintenance charge
(1,403
)

(1,437
)

(801
)

(1,836
)

(2,329
)

(1,968
)
Transfers among the sub-accounts











and with the Fixed Account - net
(18
)

(9
)

(14,972
)

96


474


116













Increase (decrease) in net assets











from policy transactions
273


597


(14,041
)

1,452


250


1,981













INCREASE (DECREASE) IN NET ASSETS
1,608


1,201


(13,653
)

3,327


2,013


4,001













NET ASSETS AT BEGINNING OF PERIOD
6,941


5,740


13,653


10,326


17,089


13,088













NET ASSETS AT END OF PERIOD
$
8,549


$
6,941


$
—


$
13,653


$
19,102


$
17,089

























ACCUMULATION UNITS OUTSTANDING











   Units outstanding at beginning of











      period
392


355


793


703


1,077


944

         Units issued
87


104


75


181


204


181

         Units redeemed
(74
)

(67
)

(868
)

(91
)

(186
)

(48
)
   Units outstanding at end of period
405


392


—


793


1,095


1,077

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.



See notes to financial statements.

46


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 

 

 
 
 Franklin

 Franklin

 Franklin
 
Templeton Investments

Templeton Investments

Templeton Investments
 
Sub-Account

Sub-Account

Sub-Account
 
Franklin Mutual

Franklin

Franklin
 
Global

Mutual

Small
 
Discovery VIP

Shares VIP

Cap Value VIP
 
Fund Class 1

Fund Class 1

Fund Class 1
 
2017

2016

2017

2016

2017

2016
INCREASE (DECREASE) IN NET ASSETS











FROM OPERATIONS











Net investment income (loss)
$
83


$
61


$
132


$
97


$
309


$
405

Net realized gains (losses)
203


219


283


373


3,152


5,401

Change in unrealized gains (losses)
46


146


10


199


1,111


4,435













Increase (decrease) in net assets











from operations
332


426


425


669


4,572


10,241













INCREASE (DECREASE) IN NET ASSETS











   FROM POLICY TRANSACTIONS











Deposits
1,552


1,655


1,800


1,692


7,984


8,433

Benefit payments
—


—


—


—


—


—

Payments on termination
(359
)

—


(331
)

—


(3,521
)

(354
)
Loans - net
(4
)

(4
)

—


—


(38
)

(4,226
)
Policy maintenance charge
(1,044
)

(924
)

(1,387
)

(1,307
)

(5,243
)

(4,854
)
Transfers among the sub-accounts











and with the Fixed Account - net
294


232


49


(46
)

702


(1,449
)












Increase (decrease) in net assets











from policy transactions
439


959


131


339


(116
)

(2,450
)












INCREASE (DECREASE) IN NET ASSETS
771


1,385


556


1,008


4,456


7,791













NET ASSETS AT BEGINNING OF PERIOD
3,814


2,429


4,826


3,818


41,060


33,269













NET ASSETS AT END OF PERIOD
$
4,585


$
3,814


$
5,382


$
4,826


$
45,516


$
41,060

























ACCUMULATION UNITS OUTSTANDING











   Units outstanding at beginning of











      period
226


161


297


273


1,964


2,077

         Units issued
66


83


47


46


244


283

         Units redeemed
(42
)

(18
)

(39
)

(22
)

(246
)

(396
)
   Units outstanding at end of period
250


226


305


297


1,962


1,964








See notes to financial statements.

47


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 

 

 
 
 Franklin

 Franklin

 Franklin
 
Templeton Investments

Templeton Investments

Templeton Investments
 
Sub-Account

Sub-Account

Sub-Account
 
Franklin

Franklin

Franklin
 
Small-Mid

Strategic

U.S. Government
 
Cap Growth VIP

Income VIP

Securities VIP
 
Fund Class 1

Fund Class 1

Fund Class 1
 
2017

2016

2017

2016

2017

2016
INCREASE (DECREASE) IN NET ASSETS











FROM OPERATIONS











Net investment income (loss)
$
—


$
—


$
302


$
271


$
457


$
428

Net realized gains (losses)
1,260


1,230


(110
)

(78
)

(42
)

(33
)
Change in unrealized gains (losses)
2,099


(550
)

249


414


(149
)

(252
)












Increase (decrease) in net assets











from operations
3,359


680


441


607


266


143













INCREASE (DECREASE) IN NET ASSETS











   FROM POLICY TRANSACTIONS











Deposits
4,221


4,070


2,558


2,696


985


948

Benefit payments
—


—


—


—


—


—

Payments on termination
(700
)

(81
)

(122
)

—


—


—

Loans - net
(4
)

(4
)

(839
)

—


—


—

Policy maintenance charge
(2,890
)

(2,647
)

(940
)

(941
)

(1,070
)

(1,040
)
Transfers among the sub-accounts











and with the Fixed Account - net
165


269


101


(118
)

402


70













Increase (decrease) in net assets











from policy transactions
792


1,607


758


1,637


317


(22
)
 











INCREASE (DECREASE) IN NET ASSETS
4,151


2,287


1,199


2,244


583


121













NET ASSETS AT BEGINNING OF PERIOD
15,129


12,842


8,723


6,479


15,944


15,823













NET ASSETS AT END OF PERIOD
$
19,280


$
15,129


$
9,922


$
8,723


$
16,527


$
15,944

























ACCUMULATION UNITS OUTSTANDING











   Units outstanding at beginning of











      period
837


742


560


450


1,244


1,246

         Units issued
126


156


150


153


66


51

         Units redeemed
(88
)

(61
)

(103
)

(43
)

(42
)

(53
)
   Units outstanding at end of period
875


837


607


560


1,268


1,244








See notes to financial statements.

48


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 

 

 
 
 Franklin

 

 
 
Templeton Investments

Janus Aspen Series

Janus Aspen Series
 
Sub-Account

Sub-Account

Sub-Account
 
Templeton

Janus Henderson

Janus Henderson
 
Global

Balanced

Enterprise
 
Bond VIP

Portfolio

Portfolio
 
Fund Class 1

Institutional Shares*

Institutional Shares*
 
2017

2016

2017

2016

2017

2016
INCREASE (DECREASE) IN NET ASSETS











FROM OPERATIONS











Net investment income (loss)
$
—


$
—


$
305


$
329


$
51


$
114

Net realized gains (losses)
(35
)

(182
)

403


281


2,497


1,393

Change in unrealized gains (losses)
529


911


2,422


153


1,975


295













Increase (decrease) in net assets











from operations
494


729


3,130


763


4,523


1,802













INCREASE (DECREASE) IN NET ASSETS











   FROM POLICY TRANSACTIONS











Deposits
4,217


3,021


7,956


7,213


4,368


3,880

Benefit payments
—


—


—


—


—


—

Payments on termination
—


—


(132
)

(520
)

(4,075
)

(1,823
)
Loans - net
(843
)

(4
)

(887
)

(645
)

2,359


708

Policy maintenance charge
(2,649
)

(2,213
)

(4,913
)

(4,364
)

(1,815
)

(1,822
)
Transfers among the sub-accounts











and with the Fixed Account - net
811


(232
)

(2
)

1,541


4


(47
)












Increase (decrease) in net assets











from policy transactions
1,536


572


2,022


3,225


841


896

 











INCREASE (DECREASE) IN NET ASSETS
2,030


1,301


5,152


3,988


5,364


2,698













NET ASSETS AT BEGINNING OF PERIOD
23,643


22,342


15,700


11,712


16,998


14,300













NET ASSETS AT END OF PERIOD
$
25,673


$
23,643


$
20,852


$
15,700


$
22,362


$
16,998

























ACCUMULATION UNITS OUTSTANDING











   Units outstanding at beginning of











      period
1,451


1,415


871


680


834


789

         Units issued
182


111


237


345


327


197

         Units redeemed
(91
)

(75
)

(131
)

(154
)

(300
)

(152
)
   Units outstanding at end of period
1,542


1,451


977


871


861


834

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.




See notes to financial statements.

49


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 

 

 
 
 

 

 
 
Janus Aspen Series

Janus Aspen Series

Janus Aspen Series
 
Sub-Account

Sub-Account

Sub-Account
 
Janus Henderson

Janus Henderson

Janus Henderson
 
Flexible

Forty

Global
 
Bond Portfolio

Portfolio

Technology Portfolio
 
Institutional Shares*

Institutional Shares*

Institutional Shares*
 
2017

2016

2017

2016

2017

2016
INCREASE (DECREASE) IN NET ASSETS











FROM OPERATIONS











Net investment income (loss)
$
529


$
507


$
—


$
775


$
—


$
22

Net realized gains (losses)
(64
)

(34
)

6,480


11,345


2,068


583

Change in unrealized gains (losses)
166


(48
)

23,974


(9,899
)

3,101


860













Increase (decrease) in net assets











from operations
631


425


30,454


2,221


5,169


1,465













INCREASE (DECREASE) IN NET ASSETS











   FROM POLICY TRANSACTIONS











Deposits
1,867


1,867


11,835


11,747


3,003


2,636

Benefit payments
—


—


—


—


—


—

Payments on termination
(321
)

—


(1,014
)

—


(1,191
)

—

Loans - net
—


—


273


251


958


114

Policy maintenance charge
(1,846
)

(1,871
)

(6,759
)

(6,209
)

(2,209
)

(1,922
)
Transfers among the sub-accounts











and with the Fixed Account - net
205


(33
)

(1,295
)

(869
)

(595
)

(90
)












Increase (decrease) in net assets











from policy transactions
(95
)

(37
)

3,040


4,920


(34
)

738













INCREASE (DECREASE) IN NET ASSETS
536


388


33,494


7,141


5,135


2,203













NET ASSETS AT BEGINNING OF PERIOD
17,790


17,402


98,773


91,632


12,016


9,813













NET ASSETS AT END OF PERIOD
$
18,326


$
17,790


$
132,267


$
98,773


$
17,151


$
12,016

























ACCUMULATION UNITS OUTSTANDING











   Units outstanding at beginning of











      period
1,132


1,135


3,203


3,029


527


492

         Units issued
63


50


217


272


124


93

         Units redeemed
(68
)

(53
)

(152
)

(98
)

(133
)

(58
)
   Units outstanding at end of period
1,127


1,132


3,268


3,203


518


527

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.



See notes to financial statements.

50


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 

 

 
 
 

 

 Janus Aspen
 
Janus Aspen Series

Janus Aspen Series

Series (Service Shares)
 
Sub-Account

Sub-Account

Sub-Account
 
Janus Henderson

Janus Henderson


 
Mid

Overseas

Janus Henderson
 
Cap Value Portfolio

Portfolio

Balanced Portfolio
 
Institutional Shares*

Institutional Shares*

Service Shares*
 
2017

2016

2017

2016

2017

2016
INCREASE (DECREASE) IN NET ASSETS











FROM OPERATIONS











Net investment income (loss)
$
69


$
69


$
424


$
805


$
4,841


$
5,729

Net realized gains (losses)
312


823


(1,064
)

30


2,348


5,311

Change in unrealized gains (losses)
758


292


6,682


(1,819
)

50,053


1,556













Increase (decrease) in net assets











from operations
1,139


1,184


6,042


(984
)

57,242


12,596













INCREASE (DECREASE) IN NET ASSETS











   FROM POLICY TRANSACTIONS











Deposits
1,874


2,267


5,344


4,869


38,862


37,279

Benefit payments
—


—


—


—


—


—

Payments on termination
—


(85
)

(1,257
)

—


(3,911
)

(10,580
)
Loans - net
(31
)

(30
)

1,927


250


(221
)

(4,002
)
Policy maintenance charge
(994
)

(1,019
)

(2,269
)

(1,912
)

(22,259
)

(22,659
)
Transfers among the sub-accounts











and with the Fixed Account - net
(88
)

(127
)

(580
)

669


847


(1,045
)












Increase (decrease) in net assets











from policy transactions
761


1,006


3,165


3,876


13,318


(1,007
)












INCREASE (DECREASE) IN NET ASSETS
1,900


2,190


9,207


2,892


70,560


11,589













NET ASSETS AT BEGINNING OF PERIOD
7,726


5,536


18,990


16,098


308,863


297,274













NET ASSETS AT END OF PERIOD
$
9,626


$
7,726


$
28,197


$
18,990


$
379,423


$
308,863

























ACCUMULATION UNITS OUTSTANDING











   Units outstanding at beginning of











      period
412


351


2,711


2,150


10,481


10,523

         Units issued
56


80


862


674


713


562

         Units redeemed
(18
)

(19
)

(503
)

(113
)

(295
)

(604
)
   Units outstanding at end of period
450


412


3,070


2,711


10,899


10,481

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.



See notes to financial statements.

51


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 
 
 
 
 
 
 Janus Aspen
 
 Janus Aspen
 
 Janus Aspen
 
Series (Service Shares)
 
Series (Service Shares)
 
Series (Service Shares)
 
Sub-Account

Sub-Account

Sub-Account
 
Janus Henderson
 
Janus Henderson
 
Janus Henderson
 
Global Research
 
Mid Cap Value
 
Overseas
 
Portfolio
 
Portfolio
 
Portfolio
 
Service Shares*
 
Service Shares*
 
Service Shares*
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

FROM OPERATIONS

 

 

 

 

 

Net investment income (loss)
$
299


$
355


$
962


$
1,194


$
1,442


$
3,606

Net realized gains (losses)
1,292


412


6,196


16,676


(1,817
)

(1,227
)
Change in unrealized gains (losses)
8,433


(58
)

12,344


4,397


23,761


(6,689
)












Increase (decrease) in net assets











from operations
10,024


709


19,502


22,267


23,386


(4,310
)


 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

   FROM POLICY TRANSACTIONS

 

 

 

 

 

Deposits
3,763

 
3,735

 
14,688

 
15,245

 
10,411

 
11,544

Benefit payments
—

 
—

 
—

 
—

 
—

 
—

Payments on termination
(1,888
)
 
(1,362
)
 
(3,830
)
 
(4,695
)
 
(4,357
)
 
(3,133
)
Loans - net
(749
)
 
(4
)
 
(1,035
)
 
(4,474
)
 
590

 
(1,249
)
Policy maintenance charge
(1,720
)
 
(1,808
)
 
(7,742
)
 
(8,104
)
 
(5,420
)
 
(6,047
)
Transfers among the sub-accounts

 

 

 

 

 

and with the Fixed Account - net
(966
)
 
467

 
(383
)
 
(1,008
)
 
503

 
5,466



 

 

 

 

 

Increase (decrease) in net assets

 

 

 

 

 

from policy transactions
(1,560
)
 
1,028

 
1,698

 
(3,036
)
 
1,727

 
6,581



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS
8,464

 
1,737

 
21,200

 
19,231

 
25,113

 
2,271



 

 

 

 

 

NET ASSETS AT BEGINNING OF PERIOD
38,363

 
36,626

 
142,165

 
122,934

 
74,736

 
72,465



 

 

 

 

 

NET ASSETS AT END OF PERIOD
$
46,827

 
$
38,363

 
$
163,365

 
$
142,165

 
$
99,849

 
$
74,736



 

 

 

 

 



 

 

 

 

 

ACCUMULATION UNITS OUTSTANDING

 

 

 

 

 

   Units outstanding at beginning of

 

 

 

 

 

      period
1,628

 
1,584

 
4,942

 
5,075

 
10,837

 
9,803

         Units issued
81

 
120

 
323

 
718

 
874

 
1,869

         Units redeemed
(140
)
 
(76
)
 
(268
)
 
(851
)
 
(642
)
 
(835
)
   Units outstanding at end of period
1,569


1,628


4,997


4,942


11,069


10,837

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.



See notes to financial statements.

52


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 
 
 
 
 
 
 Lazard
 
Legg Mason Partners
 
Legg Mason Partners
 
Retirement Series, Inc.
 
Variable Portfolios I, Inc.
 
Variable Portfolios I, Inc.
 
Sub-Account

Sub-Account

Sub-Account
 

 
ClearBridge
 
Western Assets
 
Emerging
 
Variable
 
Variable Global
 
Markets
 
Large Cap Value
 
High Yield Bond
 
Equity
 
Portfolio Class I
 
Portfolio Class I
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

FROM OPERATIONS

 

 

 

 

 

Net investment income (loss)
$
592


$
276


$
2,172


$
2,118


$
5,649


$
5,943

Net realized gains (losses)
267


(537
)

5,110


1,103


(136
)

(1,906
)
Change in unrealized gains (losses)
6,924


5,130


14,026


13,317


2,971


9,330













Increase (decrease) in net assets











from operations
7,783


4,869


21,308


16,538


8,484


13,367



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

   FROM POLICY TRANSACTIONS

 

 

 

 

 

Deposits
3,276

 
3,464

 
14,642

 
15,641

 
10,087

 
10,864

Benefit payments
—

 
—

 
—

 
—

 
—

 
—

Payments on termination
(400
)
 
(2,840
)
 
(5,009
)
 
(13,968
)
 
(1,370
)
 
(9,621
)
Loans - net
201

 
270

 
(88
)
 
(3,801
)
 
393

 
(842
)
Policy maintenance charge
(1,310
)
 
(1,254
)
 
(9,493
)
 
(9,349
)
 
(6,894
)
 
(7,166
)
Transfers among the sub-accounts

 

 

 

 

 

and with the Fixed Account - net
(282
)
 
(512
)
 
538

 
307

 
1,552

 
345



 

 

 

 

 

Increase (decrease) in net assets

 

 

 

 

 

from policy transactions
1,485

 
(872
)
 
590

 
(11,170
)
 
3,768

 
(6,420
)


 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS
9,268

 
3,997

 
21,898

 
5,368

 
12,252

 
6,947



 

 

 

 

 

NET ASSETS AT BEGINNING OF PERIOD
27,625

 
23,628

 
142,439

 
137,071

 
96,269

 
89,322



 

 

 

 

 

NET ASSETS AT END OF PERIOD
$
36,893

 
$
27,625

 
$
164,337

 
$
142,439

 
$
108,521

 
$
96,269



 

 

 

 

 



 

 

 

 

 

ACCUMULATION UNITS OUTSTANDING

 

 

 

 

 

   Units outstanding at beginning of

 

 

 

 

 

      period
551

 
569

 
5,658

 
6,152

 
4,460

 
4,784

         Units issued
73

 
78

 
297

 
355

 
323

 
343

         Units redeemed
(48
)
 
(96
)
 
(270
)
 
(849
)
 
(156
)
 
(667
)
   Units outstanding at end of period
576


551


5,685


5,658


4,627


4,460


 

 


See notes to financial statements.

53


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 
 
 
 
 
 
 MFS Variable
 
 MFS Variable
 
 MFS Variable
 
Insurance Trust
 
Insurance Trust
 
Insurance Trust
 
Sub-Account

Sub-Account

Sub-Account
 

 

 
MFS Mass
 

 

 
Investors Growth
 
MFS High
 
MFS Investors
 
Stock Series -
 
Yield Portfolio
 
Trust
 
Initial Class
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

FROM OPERATIONS

 

 

 

 

 

Net investment income (loss)
$
3,566


$
3,376


$
142


$
141


$
379


$
292

Net realized gains (losses)
(69
)

(532
)

1,061


1,867


2,982


5,422

Change in unrealized gains (losses)
30


3,708


2,816


(616
)

10,782


(2,821
)












Increase (decrease) in net assets











from operations
3,527


6,552


4,019


1,392


14,143


2,893



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

   FROM POLICY TRANSACTIONS

 

 

 

 

 

Deposits
6,274

 
6,887

 
1,347

 
1,548

 
4,226

 
4,680

Benefit payments
—

 
—

 
—

 
—

 
—

 
—

Payments on termination
(2,388
)
 
(4,763
)
 
(418
)
 
—

 
(2,396
)
 
(591
)
Loans - net
511

 
(531
)
 
(228
)
 
144

 
649

 
(779
)
Policy maintenance charge
(4,018
)
 
(4,314
)
 
(960
)
 
(911
)
 
(3,088
)
 
(3,390
)
Transfers among the sub-accounts

 

 

 

 

 

and with the Fixed Account - net
868

 
(401
)
 
(108
)
 
(17
)
 
164

 
(325
)


 

 

 

 

 

Increase (decrease) in net assets

 

 

 

 

 

from policy transactions
1,247

 
(3,122
)
 
(367
)
 
764

 
(445
)
 
(405
)


 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS
4,774

 
3,430

 
3,652

 
2,156

 
13,698

 
2,488



 

 

 

 

 

NET ASSETS AT BEGINNING OF PERIOD
52,539

 
49,109

 
17,340

 
15,184

 
50,001

 
47,513



 

 

 

 

 

NET ASSETS AT END OF PERIOD
$
57,313

 
$
52,539

 
$
20,992

 
$
17,340

 
$
63,699

 
$
50,001



 

 

 

 

 



 

 

 

 

 

ACCUMULATION UNITS OUTSTANDING

 

 

 

 

 

   Units outstanding at beginning of

 

 

 

 

 

      period
4,507

 
4,794

 
682

 
649

 
4,781

 
4,819

         Units issued
308

 
284

 
42

 
56

 
237

 
303

         Units redeemed
(207
)
 
(571
)
 
(54
)
 
(23
)
 
(275
)
 
(341
)
   Units outstanding at end of period
4,608


4,507


670


682


4,743


4,781

 
 
 


See notes to financial statements.

54


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 
 
 
 
 
 
 MFS Variable
 
 MFS Variable
 
 MFS Variable
 
Insurance Trust
 
Insurance Trust
 
Insurance Trust
 
Sub-Account

Sub-Account

Sub-Account
 

 

 

 

 

 

 
MFS New
 
MFS Total
 

 
Discovery
 
Return
 
MFS Utilities
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

FROM OPERATIONS

 

 

 

 

 

Net investment income (loss)
$
—


$
—


$
2,346


$
2,546


$
3,025


$
2,340

Net realized gains (losses)
6,921


7,024


3,463


3,489


1,108


1,162

Change in unrealized gains (losses)
35,531


5,943


5,690


1,570


5,069


2,711













Increase (decrease) in net assets











from operations
42,452


12,967


11,499


7,605


9,202


6,213



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

   FROM POLICY TRANSACTIONS

 

 

 

 

 

Deposits
19,109

 
17,579

 
10,776

 
11,797

 
5,987

 
6,507

Benefit payments
—

 
—

 
—

 
—

 
—

 
—

Payments on termination
(11,192
)
 
(6,763
)
 
(515
)
 
(2,643
)
 
(561
)
 
(3,656
)
Loans - net
(391
)
 
(351
)
 
(2,708
)
 
(29
)
 
163

 
(257
)
Policy maintenance charge
(9,581
)
 
(9,303
)
 
(6,518
)
 
(6,906
)
 
(3,939
)
 
(3,943
)
Transfers among the sub-accounts

 

 

 

 

 

and with the Fixed Account - net
(449
)
 
54

 
1,221

 
(20
)
 
(216
)
 
(1,677
)


 

 

 

 

 

Increase (decrease) in net assets

 

 

 

 

 

from policy transactions
(2,504
)
 
1,216

 
2,256

 
2,199

 
1,434

 
(3,026
)


 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS
39,948

 
14,183

 
13,755

 
9,804

 
10,636

 
3,187



 

 

 

 

 

NET ASSETS AT BEGINNING OF PERIOD
157,536

 
143,353

 
93,347

 
83,543

 
62,581

 
59,394



 

 

 

 

 

NET ASSETS AT END OF PERIOD
$
197,484

 
$
157,536

 
$
107,102

 
$
93,347

 
$
73,217

 
$
62,581



 

 

 

 

 



 

 

 

 

 

ACCUMULATION UNITS OUTSTANDING

 

 

 

 

 

   Units outstanding at beginning of

 

 

 

 

 

      period
3,489

 
3,462

 
3,089

 
3,016

 
1,185

 
1,253

         Units issued
241

 
261

 
219

 
259

 
184

 
91

         Units redeemed
(277
)
 
(234
)
 
(151
)
 
(186
)
 
(163
)
 
(159
)
   Units outstanding at end of period
3,453


3,489


3,157


3,089


1,206


1,185







See notes to financial statements.

55


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 
 
 
 
 
 
 MFS Variable
 
 Morgan Stanley
 
 Morgan Stanley
 
Insurance Trust
 
Variable Insurance Fund, Inc.*
 
Variable Insurance Fund, Inc.*
 
Sub-Account

Sub-Account

Sub-Account
 

 
Morgan Stanley
 
Morgan Stanley
 

 
VIF Emerging
 
VIF
 

 
Markets Equity
 
Growth
 
MFS Value
 
Portfolio Class I*
 
Portfolio Class I*
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

FROM OPERATIONS

 

 

 

 

 

Net investment income (loss)
$
1,285


$
1,417


$
141


$
70


$
—


$
—

Net realized gains (losses)
6,307


6,491


62


(10
)

9,933


12,046

Change in unrealized gains (losses)
3,867


1,172


5,202


834


21,733


(13,041
)












Increase (decrease) in net assets











from operations
11,459


9,080


5,405


894


31,666


(995
)


 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

   FROM POLICY TRANSACTIONS

 

 

 

 

 

Deposits
7,345

 
8,784

 
3,262

 
3,220

 
6,743

 
7,215

Benefit payments
—

 
—

 
—

 
—

 
—

 
—

Payments on termination
(13,886
)
 
(2,435
)
 
—

 
—

 
(6,215
)
 
(1,576
)
Loans - net
32

 
(989
)
 
(15
)
 
(13
)
 
84

 
(73
)
Policy maintenance charge
(3,914
)
 
(4,009
)
 
(1,586
)
 
(1,445
)
 
(4,543
)
 
(4,259
)
Transfers among the sub-accounts

 

 

 

 

 

and with the Fixed Account - net
114

 
1,245

 
(376
)
 
(143
)
 
(959
)
 
2,035



 

 

 

 

 

Increase (decrease) in net assets

 

 

 

 

 

from policy transactions
(10,309
)
 
2,596

 
1,285

 
1,619

 
(4,890
)
 
3,342



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS
1,150

 
11,676

 
6,690

 
2,513

 
26,776

 
2,347



 

 

 

 

 

NET ASSETS AT BEGINNING OF PERIOD
71,944

 
60,268

 
14,980

 
12,467

 
74,174

 
71,827



 

 

 

 

 

NET ASSETS AT END OF PERIOD
$
73,094

 
$
71,944

 
$
21,670

 
$
14,980

 
$
100,950

 
$
74,174



 

 

 

 

 



 

 

 

 

 

ACCUMULATION UNITS OUTSTANDING

 

 

 

 

 

   Units outstanding at beginning of

 

 

 

 

 

      period
2,511

 
2,400

 
1,819

 
1,617

 
2,388

 
2,244

         Units issued
134

 
265

 
178

 
268

 
121

 
249

         Units redeemed
(476
)
 
(154
)
 
(49
)
 
(66
)
 
(229
)
 
(105
)
   Units outstanding at end of period
2,169


2,511


1,948


1,819


2,280


2,388

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.



See notes to financial statements.

56


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 
 
 
 
 
 
 Morgan Stanley
 
 Oppenheimer
 
 Oppenheimer
 
Variable Insurance Fund, Inc.*
 
Variable Account Funds
 
Variable Account Funds
 
Sub-Account

Sub-Account

Sub-Account
 
Morgan Stanley
 

 

 
VIF U.S.
 
Oppenheimer
 
Oppenheimer
 
Real Estate
 
Conservative
 
Discovery
 
Portfolio Class I*
 
Balance Fund
 
MidCap Growth
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

FROM OPERATIONS

 

 

 

 

 

Net investment income (loss)
$
1,862


$
1,500


$
265


$
268


$
37


$
—

Net realized gains (losses)
1,002


7,617


101


263


14,981


14,396

Change in unrealized gains (losses)
1,045


(1,516
)

870


63


15,401


(11,488
)












Increase (decrease) in net assets











from operations
3,909


7,601


1,236


594


30,419


2,908



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

   FROM POLICY TRANSACTIONS

 

 

 

 

 

Deposits
13,854

 
14,466

 
7,088

 
5,234

 
12,145

 
12,184

Benefit payments
—

 
—

 
—

 
—

 
—

 
—

Payments on termination
(3,556
)
 
(21,425
)
 
889

 
(1,583
)
 
(4,157
)
 
(5,867
)
Loans - net
2,518

 
(2,504
)
 
—

 
—

 
(2,927
)
 
(3,162
)
Policy maintenance charge
(7,503
)
 
(8,926
)
 
(3,570
)
 
(3,309
)
 
(8,066
)
 
(8,719
)
Transfers among the sub-accounts

 

 

 

 

 

and with the Fixed Account - net
1,256

 
442

 
193

 
137

 
(297
)
 
(7,605
)


 

 

 

 

 

Increase (decrease) in net assets

 

 

 

 

 

from policy transactions
6,569

 
(17,947
)
 
4,600

 
479

 
(3,302
)
 
(13,169
)


 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS
10,478

 
(10,346
)
 
5,836

 
1,073

 
27,117

 
(10,261
)


 

 

 

 

 

NET ASSETS AT BEGINNING OF PERIOD
118,900

 
129,246

 
11,825

 
10,752

 
107,069

 
117,330



 

 

 

 

 

NET ASSETS AT END OF PERIOD
$
129,378

 
$
118,900

 
$
17,661

 
$
11,825

 
$
134,186

 
$
107,069



 

 

 

 

 



 

 

 

 

 

ACCUMULATION UNITS OUTSTANDING

 

 

 

 

 

   Units outstanding at beginning of

 

 

 

 

 

      period
2,523

 
2,931

 
1,003

 
959

 
5,188

 
5,818

         Units issued
208

 
175

 
419

 
229

 
223

 
273

         Units redeemed
(68
)
 
(583
)
 
(51
)
 
(185
)
 
(362
)
 
(903
)
   Units outstanding at end of period
2,663


2,523


1,371


1,003


5,049


5,188

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.



See notes to financial statements.

57


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 
 
 
 
 
 
 Oppenheimer
 
 Oppenheimer
 
 Oppenheimer
 
Variable Account Funds
 
Variable Account Funds
 
Variable Account Funds
 
Sub-Account

Sub-Account

Sub-Account
 

 

 

 

 

 
Oppenheimer
 
Oppenheimer
 
Oppenheimer
 
Global Fund/VA-
 
Equity Income*
 
Global
 
Service Shares*
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

FROM OPERATIONS

 

 

 

 

 

Net investment income (loss)
$
189


$
427


$
118


$
92


$
2,769


$
2,371

Net realized gains (losses)
736


(4
)

250


580


5,436


26,789

Change in unrealized gains (losses)
(669
)

700


3,569


(513
)

108,169


(31,487
)












Increase (decrease) in net assets











from operations
256


1,123


3,937


159


116,374


(2,327
)


 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

   FROM POLICY TRANSACTIONS

 

 

 

 

 

Deposits
416

 
2,123

 
3,320

 
2,959

 
41,596

 
43,572

Benefit payments
—

 
—

 
—

 
—

 
—

 
—

Payments on termination
—

 
—

 
—

 
—

 
(11,332
)
 
(37,379
)
Loans - net
—

 
(4
)
 
—

 
—

 
(1,048
)
 
745

Policy maintenance charge
(495
)
 
(1,491
)
 
(1,903
)
 
(1,558
)
 
(22,300
)
 
(21,788
)
Transfers among the sub-accounts

 

 

 

 

 

and with the Fixed Account - net
(8,521
)
 
(67
)
 
(154
)
 
1,334

 
(8,803
)
 
(17,251
)


 

 

 

 

 

Increase (decrease) in net assets

 

 

 

 

 

from policy transactions
(8,600
)
 
561

 
1,263

 
2,735

 
(1,887
)
 
(32,101
)


 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS
(8,344
)
 
1,684

 
5,200

 
2,894

 
114,487

 
(34,428
)


 

 

 

 

 

NET ASSETS AT BEGINNING OF PERIOD
8,344

 
6,660

 
10,317

 
7,423

 
320,176

 
354,604



 

 

 

 

 

NET ASSETS AT END OF PERIOD
$
—

 
$
8,344

 
$
15,517

 
$
10,317

 
$
434,663

 
$
320,176



 

 

 

 

 



 

 

 

 

 

ACCUMULATION UNITS OUTSTANDING

 

 

 

 

 

   Units outstanding at beginning of

 

 

 

 

 

      period
450

 
415

 
677

 
487

 
13,454

 
14,876

         Units issued
7

 
84

 
129

 
206

 
743

 
1,146

         Units redeemed
(457
)
 
(49
)
 
(61
)
 
(16
)
 
(799
)
 
(2,568
)
   Units outstanding at end of period
—


450


745


677


13,398


13,454

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.
 
 


See notes to financial statements.

58


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 



See notes to financial statements.

59


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 
 
 
 
 
 
 Oppenheimer
 
 Oppenheimer
 
 Oppenheimer
 
Variable Account Funds
 
Variable Account Funds
 
Variable Account Funds
 
Sub-Account

Sub-Account

Sub-Account
 
Oppenheimer
 

 

 
Global
 
Oppenheimer
 

 
Strategic
 
International
 
Oppenheimer
 
Income
 
Growth Fund/VA*
 
Main Street*
 
2017
 
2016
 
2017
 
2016
 
2017
INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

FROM OPERATIONS

 

 

 

 

Net investment income (loss)
$
120


$
248


$
1,515


$
1,024


$
107

Net realized gains (losses)
(66
)

(90
)

2,069


4,323


157

Change in unrealized gains (losses)
256


148


20,470


(7,372
)

537











Increase (decrease) in net assets









from operations
310


306


24,054


(2,025
)

801



 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

   FROM POLICY TRANSACTIONS

 

 

 

 

Deposits
1,753

 
1,497

 
13,834

 
15,697

 
1,773

Benefit payments
—

 
—

 
—

 
—

 
—

Payments on termination
(327
)
 
—

 
(5,839
)
 
(5,515
)
 
(135
)
Loans - net
—

 
—

 
873

 
(3,173
)
 
(4
)
Policy maintenance charge
(1,397
)
 
(1,358
)
 
(8,498
)
 
(8,558
)
 
(1,147
)
Transfers among the sub-accounts

 

 

 

 

and with the Fixed Account - net
300

 
(52
)
 
241

 
(935
)
 
8,613



 

 

 

 

Increase (decrease) in net assets

 

 

 

 

from policy transactions
329

 
87

 
611

 
(2,484
)
 
9,100



 

 

 

 

INCREASE (DECREASE) IN NET ASSETS
639

 
393

 
24,665

 
(4,509
)
 
9,901



 

 

 

 

NET ASSETS AT BEGINNING OF PERIOD
4,947

 
4,554

 
89,977

 
94,486

 
—



 

 

 

 

NET ASSETS AT END OF PERIOD
$
5,586

 
$
4,947

 
$
114,642

 
$
89,977

 
$
9,901



 

 

 

 



 

 

 

 

ACCUMULATION UNITS OUTSTANDING

 

 

 

 

   Units outstanding at beginning of

 

 

 

 

      period
356

 
350

 
3,609

 
3,515

 
—

         Units issued
119

 
89

 
362

 
497

 
969

         Units redeemed
(97
)
 
(83
)
 
(263
)
 
(403
)
 
(61
)
   Units outstanding at end of period
378


356


3,708


3,609


908

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.
 
          

See notes to financial statements.

60


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 
 
 
 
 
 
 Oppenheimer
 
 Oppenheimer
 
PIMCO Variable
 
Variable Account Funds
 
Variable Account Funds
 
Insurance Trust
 
Sub-Account

Sub-Account

Sub-Account
 
Oppenheimer
 

 

 
Main Street
 
Oppenheimer
 

 
Small
 
Total Return
 

 
Cap
 
Bond Fund/VA*
 
Foreign Bond
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

FROM OPERATIONS

 

 

 

 

 

Net investment income (loss)
$
5,814


$
2,986


$
130


$
158


$
2,173


$
632

Net realized gains (losses)
43,357


32,404


(2
)

—


247


786

Change in unrealized gains (losses)
41,103


65,365


111


(36
)

(1,188
)

1,381













Increase (decrease) in net assets











from operations
90,274


100,755


239


122


1,232


2,799



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

   FROM POLICY TRANSACTIONS

 

 

 

 

 

Deposits
57,874

 
60,537

 
2,205

 
1,629

 
6,311

 
6,754

Benefit payments
—

 
—

 
—

 
—

 
—

 
—

Payments on termination
(26,686
)
 
(43,525
)
 
—

 
—

 
(4,158
)
 
(10,959
)
Loans - net
3,198

 
(11,496
)
 
—

 
—

 
1,532

 
(2,763
)
Policy maintenance charge
(36,097
)
 
(35,654
)
 
(1,012
)
 
(834
)
 
(3,066
)
 
(3,217
)
Transfers among the sub-accounts

 

 

 

 

 

and with the Fixed Account - net
(3,566
)
 
(15,028
)
 
707

 
40

 
497

 
78



 

 

 

 

 

Increase (decrease) in net assets

 

 

 

 

 

from policy transactions
(5,277
)
 
(45,166
)
 
1,900

 
835

 
1,116

 
(10,107
)


 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS
84,997

 
55,589

 
2,139

 
957

 
2,348

 
(7,308
)


 

 

 

 

 

NET ASSETS AT BEGINNING OF PERIOD
641,064

 
585,475

 
4,779

 
3,822

 
43,258

 
50,566



 

 

 

 

 

NET ASSETS AT END OF PERIOD
$
726,061

 
$
641,064

 
$
6,918

 
$
4,779

 
$
45,606

 
$
43,258



 

 

 

 

 



 

 

 

 

 

ACCUMULATION UNITS OUTSTANDING

 

 

 

 

 

   Units outstanding at beginning of

 

 

 

 

 

      period
13,735

 
14,711

 
482

 
398

 
1,953

 
2,431

         Units issued
810

 
1,017

 
221

 
109

 
194

 
173

         Units redeemed
(837
)
 
(1,993
)
 
(36
)
 
(25
)
 
(144
)
 
(651
)
   Units outstanding at end of period
13,708


13,735


667


482


2,003


1,953

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.




See notes to financial statements.

61


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 
 
 
 
 
 
PIMCO Variable
 
PIMCO Variable
 
Putnam Variable
 
Insurance Trust
 
Insurance Trust
 
Trust (Class IA)
 
Sub-Account

Sub-Account

Sub-Account
 

 

 

 

 

 

 
PIMCO
 
PIMCO
 
VT High Yield
 
Real Return
 
Total Return
 
(Class IA)
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

FROM OPERATIONS

 

 

 

 

 

Net investment income (loss)
$
2,685


$
2,335


$
4,598


$
4,328


$
4,741


$
4,390

Net realized gains (losses)
(286
)

(527
)

(40
)

(233
)

(210
)

(226
)
Change in unrealized gains (losses)
1,629


3,436


6,132


1,081


1,079


6,025













Increase (decrease) in net assets











from operations
4,028


5,244


10,690


5,176


5,610


10,189



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

   FROM POLICY TRANSACTIONS

 

 

 

 

 

Deposits
13,014

 
14,179

 
24,781

 
25,290

 
7,142

 
7,147

Benefit payments
—

 
—

 
—

 
—

 
—

 
—

Payments on termination
(4,972
)
 
(5,119
)
 
(5,938
)
 
(6,236
)
 
(316
)
 
(975
)
Loans - net
494

 
82

 
(2,449
)
 
324

 
(1,399
)
 
215

Policy maintenance charge
(6,734
)
 
(7,590
)
 
(12,745
)
 
(12,992
)
 
(4,095
)
 
(4,179
)
Transfers among the sub-accounts

 

 

 

 

 

and with the Fixed Account - net
7,894

 
(3,482
)
 
12,617

 
4,311

 
1,555

 
(864
)


 

 

 

 

 

Increase (decrease) in net assets

 

 

 

 

 

from policy transactions
9,696

 
(1,930
)
 
16,266

 
10,697

 
2,887

 
1,344



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS
13,724

 
3,314

 
26,956

 
15,873

 
8,497

 
11,533



 

 

 

 

 

NET ASSETS AT BEGINNING OF PERIOD
105,397

 
102,083

 
211,850

 
195,977

 
75,806

 
64,273



 

 

 

 

 

NET ASSETS AT END OF PERIOD
$
119,121

 
$
105,397

 
$
238,806

 
$
211,850

 
$
84,303

 
$
75,806



 

 

 

 

 



 

 

 

 

 

ACCUMULATION UNITS OUTSTANDING

 

 

 

 

 

   Units outstanding at beginning of

 

 

 

 

 

      period
6,172

 
6,289

 
10,083

 
9,578

 
2,564

 
2,514

         Units issued
907

 
501

 
1,323

 
1,051

 
416

 
157

         Units redeemed
(350
)
 
(618
)
 
(572
)
 
(546
)
 
(322
)
 
(107
)
   Units outstanding at end of period
6,729


6,172


10,834


10,083


2,658


2,564







See notes to financial statements.

62


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 
 
 
 
 
 
Putnam Variable
 
 Rydex
 
 T. Rowe Price
 
Trust (Class IA)
 
Variable Trust
 
Equity Series, Inc.
 
Sub-Account

Sub-Account

Sub-Account
 

 
Guggenheim
 

 
VT International
 
VT U.S.
 
T. Rowe Price
 
Value Fund
 
Long Short
 
Blue Chip
 
(Class IA)
 
Equity Fund
 
Growth
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

FROM OPERATIONS

 

 

 

 

 

Net investment income (loss)
$
422


$
530


$
115


$
—


$
—


$
—

Net realized gains (losses)
195


78


956


521


8,769


7,699

Change in unrealized gains (losses)
5,050


(328
)

3,394


(381
)

59,495


(6,232
)












Increase (decrease) in net assets











from operations
5,667


280


4,465


140


68,264


1,467



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

   FROM POLICY TRANSACTIONS

 

 

 

 

 

Deposits
3,350

 
3,433

 
2,710

 
3,202

 
17,697

 
17,902

Benefit payments
—

 
—

 
—

 
—

 
—

 
—

Payments on termination
(157
)
 
(923
)
 
(3,372
)
 
(2,472
)
 
(1,774
)
 
(9,429
)
Loans - net
(3
)
 
(10
)
 
9

 
(30
)
 
(2,397
)
 
(2,289
)
Policy maintenance charge
(1,468
)
 
(1,480
)
 
(1,617
)
 
(1,759
)
 
(14,624
)
 
(14,206
)
Transfers among the sub-accounts

 

 

 

 

 

and with the Fixed Account - net
(114
)
 
272

 
(42
)
 
15

 
(2,656
)
 
450



 

 

 

 

 

Increase (decrease) in net assets

 

 

 

 

 

from policy transactions
1,608

 
1,292

 
(2,312
)
 
(1,044
)
 
(3,754
)
 
(7,572
)


 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS
7,275

 
1,572

 
2,153

 
(904
)
 
64,510

 
(6,105
)


 

 

 

 

 

NET ASSETS AT BEGINNING OF PERIOD
22,078

 
20,506

 
30,807

 
31,711

 
189,958

 
196,063



 

 

 

 

 

NET ASSETS AT END OF PERIOD
$
29,353

 
$
22,078

 
$
32,960

 
$
30,807

 
$
254,468

 
$
189,958



 

 

 

 

 



 

 

 

 

 

ACCUMULATION UNITS OUTSTANDING

 

 

 

 

 

   Units outstanding at beginning of

 

 

 

 

 

      period
904

 
851

 
1,300

 
1,346

 
6,750

 
7,020

         Units issued
98

 
128

 
64

 
96

 
182

 
285

         Units redeemed
(41
)
 
(75
)
 
(153
)
 
(142
)
 
(292
)
 
(555
)
   Units outstanding at end of period
961


904


1,211


1,300


6,640


6,750







See notes to financial statements.

63


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 


 
 
 
 
 

 T. Rowe Price
 
 The
 
 The

Equity Series, Inc.
 
Alger Portfolios
 
Alger Portfolios

Sub-Account

Sub-Account

Sub-Account
 

 

 
Alger
 

 
Alger
 
Capital

T. Rowe Price
 
Balanced
 
Appreciation

Equity Income
 
Class I-2
 
Class I-2

2017
 
2016
 
2017
 
2016
 
2017
 
2016
INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

FROM OPERATIONS

 

 

 

 

 

Net investment income (loss)
$
8,167


$
9,471


$
172


$
59


$
465


$
442

Net realized gains (losses)
59,159


47,706


107


56


21,544


5,824

Change in unrealized gains (losses)
1,981


15,219


339


96


49,620


(5,108
)












Increase (decrease) in net assets











from operations
69,307


72,396


618


211


71,629


1,158



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

   FROM POLICY TRANSACTIONS

 

 

 

 

 

Deposits
38,536

 
41,907

 
3,676

 
2,105

 
30,562

 
30,238

Benefit payments
—

 
—

 
—

 
—

 
—

 
—

Payments on termination
(50,004
)
 
(21,983
)
 
—

 
—

 
(5,691
)
 
(15,660
)
Loans - net
93

 
163

 
—

 
—

 
(384
)
 
(5,107
)
Policy maintenance charge
(22,146
)
 
(22,127
)
 
(1,691
)
 
(1,185
)
 
(19,081
)
 
(18,672
)
Transfers among the sub-accounts

 

 

 

 

 

and with the Fixed Account - net
(178
)
 
(5,635
)
 
853

 
157

 
(626
)
 
4,099



 

 

 

 

 

Increase (decrease) in net assets

 

 

 

 

 

from policy transactions
(33,699
)
 
(7,675
)
 
2,838

 
1,077

 
4,780

 
(5,102
)


 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS
35,608

 
64,721

 
3,456

 
1,288

 
76,409

 
(3,944
)


 

 

 

 

 

NET ASSETS AT BEGINNING OF PERIOD
440,156

 
375,435

 
3,204

 
1,916

 
229,244

 
233,188



 

 

 

 

 

NET ASSETS AT END OF PERIOD
$
475,764

 
$
440,156

 
$
6,660

 
$
3,204

 
$
305,653

 
$
229,244



 

 

 

 

 



 

 

 

 

 

ACCUMULATION UNITS OUTSTANDING

 

 

 

 

 

   Units outstanding at beginning of

 

 

 

 

 

      period
12,861

 
13,073

 
214

 
139

 
5,689

 
5,573

         Units issued
631

 
701

 
209

 
123

 
560

 
754

         Units redeemed
(1,510
)
 
(913
)
 
(37
)
 
(48
)
 
(306
)
 
(638
)
   Units outstanding at end of period
11,982


12,861


386


214


5,943


5,689







See notes to financial statements.

64


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A

STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
 

 
 
 
 
 
 
 
 The
 
 The
 
 VanEck
 
Alger Portfolios
 
Alger Portfolios
 
VIP Trust*
 
Sub-Account

Sub-Account

Sub-Account
 
Alger
 
Alger
 
VanEck VIP
 
Large Cap
 
MidCap
 
Emerging
 
Growth
 
Growth
 
Markets
 
Class I-2
 
Class I-2
 
Fund Initial Class*
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

FROM OPERATIONS

 

 

 

 

 

Net investment income (loss)
$
—


$
—


$
—


$
—


$
480


$
440

Net realized gains (losses)
38,611


1,672


24,865


4,722


324


(2,043
)
Change in unrealized gains (losses)
30,674


(3,568
)

72,162


(822
)

46,797


1,785













Increase (decrease) in net assets











from operations
69,285


(1,896
)

97,027


3,900


47,601


182



 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

 

 

 

 

   FROM POLICY TRANSACTIONS

 

 

 

 

 

Deposits
23,084

 
24,150

 
36,793

 
38,858

 
12,148

 
13,285

Benefit payments
—

 
—

 
—

 
—

 
—

 
—

Payments on termination
(42,614
)
 
(9,953
)
 
(29,484
)
 
(8,864
)
 
(578
)
 
(16,672
)
Loans - net
920

 
384

 
(3,484
)
 
(8,723
)
 
170

 
(654
)
Policy maintenance charge
(14,625
)
 
(14,085
)
 
(21,940
)
 
(21,563
)
 
(6,887
)
 
(7,912
)
Transfers among the sub-accounts

 

 

 

 

 

and with the Fixed Account - net
(638
)
 
3,864

 
(4,878
)
 
4,813

 
(2,627
)
 
1,922



 
 
 

 
 
 

 
 
Increase (decrease) in net assets

 

 

 

 

 

from policy transactions
(33,873
)
 
4,360

 
(22,993
)
 
4,521

 
2,226

 
(10,031
)


 

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS
35,412

 
2,464

 
74,034

 
8,421

 
49,827

 
(9,849
)


 

 

 

 

 

NET ASSETS AT BEGINNING OF PERIOD
245,390

 
242,926

 
328,535

 
320,114

 
92,100

 
101,949



 

 

 

 

 

NET ASSETS AT END OF PERIOD
$
280,802

 
$
245,390

 
$
402,569

 
$
328,535

 
$
141,927

 
$
92,100



 

 

 

 

 



 

 

 

 

 

ACCUMULATION UNITS OUTSTANDING

 

 

 

 

 

   Units outstanding at beginning of

 

 

 

 

 

      period
10,266

 
10,118

 
10,009

 
9,909

 
3,236

 
3,586

         Units issued
588

 
910

 
597

 
924

 
159

 
300

         Units redeemed
(1,671
)
 
(762
)
 
(1,044
)
 
(824
)
 
(93
)
 
(650
)
   Units outstanding at end of period
9,183


10,266


9,562


10,009


3,302


3,236

* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.


 
 
 
 
 VanEck
 
 
VIP Trust*
 
 
Sub-Account

 
VanEck VIP
 
 
Global
 
 
Hard Assets
 
 
Fund Initial Class*
 
 
2017
 
2016
 
INCREASE (DECREASE) IN NET ASSETS

 

 
FROM OPERATIONS

 

 
Net investment income (loss)
$
—


$
121


Net realized gains (losses)
(866
)

(4,105
)

Change in unrealized gains (losses)
1,002


16,066







Increase (decrease) in net assets




from operations
136


12,082




 

 
INCREASE (DECREASE) IN NET ASSETS

 

 
   FROM POLICY TRANSACTIONS

 

 
Deposits
9,759

 
10,256

 
Benefit payments
—

 
—

 
Payments on termination
(429
)
 
(4,027
)
 
Loans - net
736

 
943

 
Policy maintenance charge
(4,302
)
 
(5,150
)
 
Transfers among the sub-accounts

 

 
and with the Fixed Account - net
3,125

 
(4,057
)
 


 

 
Increase (decrease) in net assets

 

 
from policy transactions
8,889

 
(2,035
)
 


 

 
INCREASE (DECREASE) IN NET ASSETS
9,025

 
10,047

 


 

 
NET ASSETS AT BEGINNING OF PERIOD
38,497

 
28,450

 


 

 
NET ASSETS AT END OF PERIOD
$
47,522

 
$
38,497

 


 

 


 

 
ACCUMULATION UNITS OUTSTANDING

 

 
   Units outstanding at beginning of

 

 
      period
1,371

 
1,456

 
         Units issued
500

 
449

 
         Units redeemed
(149
)
 
(534
)
 
   Units outstanding at end of period
1,722


1,371


* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.




See notes to financial statements.

65

 

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 


1. Organization
Allstate Life of New York Variable Life Separate Account A (the “Account”), a unit investment trust registered with the Securities and Exchange Commission under the Investment Company Act of 1940, is a Separate Account of Allstate Life Insurance Company of New York (“Allstate New York”). The assets of the Account are legally segregated from those of Allstate New York. Allstate New York is wholly owned by Allstate Life Insurance Company, which is a wholly owned subsidiary of Allstate Insurance Company, which is wholly owned by Allstate Insurance Holdings, LLC, which is wholly owned by The Allstate Corporation. These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).
The assets within the Account are legally segregated from each other into sub-accounts (the “sub-accounts”). Allstate New York issues three life insurance policies: the Consultant Protector, the Consultant Accumulator, and the Total Accumulator (collectively the “Policies”), the deposits of which are invested at the direction of the policyholders in the sub-accounts that comprise the Account. All of the policies, except the Total Accumulator, are closed to new policyholders, but continue to accept deposits from existing policyholders. Absent any policy provisions wherein Allstate New York contractually guarantees a specified death benefit, variable life policyholders bear the investment risk that the sub-accounts may not meet their stated investment objectives. The sub-account names listed below correspond to the underlying mutual fund portfolios (Fund or Funds) in which they invest:
AIM Variable Insurance Funds (Invesco Variable Insurance Funds)* 
Invesco V.I. American Franchise
Invesco V.I. American Value
Invesco V.I. Core Equity
Invesco V.I. Government Securities
Invesco V.I. Growth and Income
Fund-Series I
Invesco V.I. High Yield
Invesco V.I. Mid Cap Core Equity
Invesco V.I. Mid Cap Growth Fund Series II* 
Invesco V.I. Value Opportunity
AllianceBernstein Fund
VPS Growth and Income Class A
VPS International Growth Class A
VPS International Value Class A
VPS Small Cap Growth Class A
VPS Small/Mid Cap Value Class A
Alps Variable Investments Trust* 
Morningstar Aggressive Growth ETF Asset Allocation Portfolio Class I
Morningstar Balanced ETF Asset Allocation Portfolio Class I
Morningstar Conservative ETF Asset Allocation Portfolio Class I
Morningstar Growth ETF Asset Allocation Portfolio Class I
Morningstar Income and Growth ETF Asset Allocation Portfolio Class I
Deutsche Investments Variable Insurance Trust
Deutsche Equity 500 Index VIP Class A
Deutsche Small Cap Index VIP Class A
Deutsche Variable Series II
Deutsche Global Income Builder VIP
Class A

 
Fidelity Variable Insurance Products Fund
VIP Asset Manager
VIP Contrafund
VIP Emerging Markets
VIP Equity-Income
VIP Government Money Market Portfolio Initial Class* 
VIP Growth
VIP Growth & Income
VIP High Income
VIP Index 500
VIP Index 500 - Service Class
VIP Investment Grade Bond
VIP Mid Cap
VIP Overseas
VIP Real Estate
VIP Value Strategies
Franklin Templeton Investments
Franklin High Income VIP Fund Class 1* 
Franklin Income VIP Fund Class 1
Franklin Mutual Global Discovery
VIP Fund Class 1
Franklin Mutual Shares VIP Fund Class 1
Franklin Small Cap Value VIP Fund Class 1
Franklin Small-Mid Cap Growth VIP
Fund Class 1
Franklin Strategic Income VIP Fund Class 1
Franklin U.S. Government Securities VIP
Fund Class 1
Templeton Global Bond VIP Fund Class 1
Janus Aspen Series
Janus Henderson Balanced Portfolio Institutional Shares* 
Janus Henderson Enterprise Portfolio Institutional Shares* 




66


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 


1. Organization (continued)
Janus Aspen Series (continued)
Janus Henderson Flexible Bond Portfolio Institutional Shares* 
Janus Henderson Forty Portfolio Institutional Shares* 
Janus Henderson Global Technology Portfolio Institutional Shares* 
Janus Henderson Mid Cap Value Portfolio Institutional Shares* 
Janus Henderson Overseas Portfolio Institutional Shares* 
Janus Aspen Series (Service Shares)
Janus Henderson Balanced Portfolio
Service Shares* 
Janus Henderson Global Research Portfolio Service Shares* 
Janus Henderson Mid Cap Value Portfolio Service Shares* 
Janus Henderson Overseas Portfolio
Service Shares* 
Lazard Retirement Series, Inc.
Emerging Markets Equity
Legg Mason Partners Variable Portfolios I, Inc.
ClearBridge Variable Large Cap Value Portfolio Class I
Western Assets Variable Global High
Yield Bond Portfolio Class I
MFS Variable Insurance Trust
MFS High Yield Portfolio
MFS Investors Trust
MFS Mass Investors Growth Stock Series - Initial Class
MFS New Discovery
MFS Total Return
MFS Utilities
MFS Value
Morgan Stanley Variable Insurance Fund, Inc.* 
Morgan Stanley VIF Emerging Markets Equity Portfolio Class I* 
 
Morgan Stanley Variable Insurance Fund, Inc.* (continued)
Morgan Stanley VIF Growth Portfolio Class I* 
Morgan Stanley VIF U.S. Real Estate Portfolio Class I*
Oppenheimer Variable Account Funds
Oppenheimer Conservative Balance Fund
Oppenheimer Discovery MidCap Growth
Oppenheimer Equity Income* 
Oppenheimer Global
Oppenheimer Global Fund/VA - Service Shares* 
Oppenheimer Global Strategic Income
Oppenheimer International Growth Fund/VA* 
Oppenheimer Main Street* 
Oppenheimer Main Street Small Cap
Oppenheimer Total Return Bond Fund/VA* 
PIMCO Variable Insurance Trust
Foreign Bond
PIMCO Real Return
PIMCO Total Return
Putnam Variable Trust (Class IA)
VT High Yield (Class IA)
VT International Value Fund (Class IA)
Rydex Variable Trust
Guggenheim VT U.S. Long Short Equity Fund
T. Rowe Price Equity Series, Inc.
T. Rowe Price Blue Chip Growth
T. Rowe Price Equity Income
The Alger Portfolios
Alger Balanced Class I-2
Alger Capital Appreciation Class I-2
Alger Large Cap Growth Class I-2
Alger MidCap Growth Class I-2
VanEck VIP Trust* 
VanEck VIP Emerging Markets Fund Initial Class* 
VanEck VIP Global Hard Assets Fund Initial Class* 
* See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.
The net assets are affected by the investment results of each Fund, transactions by policyholders and certain contract expenses (see Note 5). Policyholders’ interests consist of accumulation units of the sub-account. The accompanying financial statements include only policyholders’ purchase payments applicable to the variable portions of their policies and exclude any purchase payments directed by the policyholder to the “Fixed Account” in which the policyholders’ deposits are included in the Allstate New York general account assets and earn a fixed rate of return.
A policyholder may choose from among a number of different Fund options. The Funds are not available to the general public directly. These Funds are available as investment options in variable annuity contracts or variable life insurance policies issued by life insurance companies, or in certain cases, through participation in certain qualified pension or retirement plans.


67


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 


1.Organization (continued)
Some of these Funds have been established by investment advisers that manage publicly traded mutual funds that have similar names and investment objectives. While some of the Funds may be similar to and may in fact be modeled after publicly traded mutual funds, the Funds are not otherwise directly related to any publicly traded mutual fund. Consequently, the investment performance of publicly traded mutual funds and any corresponding Funds may differ substantially.
2. Portfolio changes
The operations of the following sub-accounts were affected by the following changes that occurred during the year ended December 31, 2017:
The following sub-accounts were closed during the year ended December 31, 2017:
•
Oppenheimer Equity Income (sub-account ceased operations on April 28, 2017)
•
Franklin High Income VIP Fund Class 1 (sub-account ceased operations on April 28, 2017)
The following sub-account was opened during the year ended December 31, 2017:
•
Oppenheimer Main Street (sub-account became available for investments on April 28, 2017)
The following sub-accounts changed their name during the year ended December 31, 2017:
Former fund manager and/or fund name
New fund manager and/or fund name
Fidelity Variable Insurance Products Fund
VIP Money Market
VIP Government Money Market Portfolio Initial Class
Ibbotson Fund
Alps Variable Investments Trust
Invesco Funds
AIM Variable Insurance Funds (Invesco Variable Insurance Funds)
Invesco Funds (Class II)
AIM Variable Insurance Funds (Invesco Variable Insurance Funds)
Invesco V.I. Mid Cap Growth
Invesco V.I. Mid Cap Growth Fund Series II
Janus Aspen Series
Balanced
Janus Henderson Balanced Portfolio Institutional Shares
Enterprise
Janus Henderson Enterprise Portfolio Institutional Shares
Flexible Bond
Janus Henderson Flexible Bond Portfolio Institutional Shares
Forty Portfolio
Janus Henderson Forty Portfolio Institutional Shares
Global Technology
Janus Henderson Global Technology Portfolio Institutional Shares
Mid Cap Value
Janus Henderson Mid Cap Value Portfolio Institutional Shares
Overseas
Janus Henderson Overseas Portfolio Institutional Shares
Janus Aspen Series (Service Shares)
Balanced (Service Shares)
Janus Henderson Balanced Portfolio Service Shares
Global Research (Service Shares)
Janus Henderson Global Research Portfolio Service Shares
Mid Cap Value (Service Shares)
Janus Henderson Mid Cap Value Portfolio Service Shares
Overseas (Service Shares)
Janus Henderson Overseas Portfolio Service Shares
Oppenheimer Variable Account Funds
Oppenheimer Core Bond
Oppenheimer Total Return Bond Fund/VA
Oppenheimer International Growth
Oppenheimer International Growth Fund/VA
Oppenheimer Variable Account Funds (SS)
Oppenheimer Variable Account Funds
Oppenheimer Global (SS)
Oppenheimer Global Fund/VA - Service Shares
The Universal Institutional Funds, Inc.
Morgan Stanley Variable Insurance Fund, Inc.
Morgan Stanley UIF Emerging Markets Class I
Morgan Stanley VIF Emerging Markets Equity Portfolio Class I
Morgan Stanley UIF Growth Class I
Morgan Stanley VIF Growth Portfolio Class I
Morgan Stanley UIF U.S. Real Estate
Morgan Stanley VIF U.S. Real Estate Portfolio Class I

68


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 


2. Portfolio changes (continued)
Former fund manager and/or fund name
New fund manager and/or fund name
Van Eck Worldwide Insurance Trust
VanEck VIP Trust
Van Eck Worldwide Emerging Markets
VanEck VIP Emerging Markets Initial Class
Van Eck Worldwide Hard Assets
VanEck VIP Global Hard Assets Initial Class
3. Summary of Significant Accounting Policies
The Account is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification Topic 946 - Investment Companies, which is part of GAAP.
Investments – Investments consist of shares of the Funds and are stated at fair value based on the reported net asset values of each corresponding Fund, which in turn value their investment securities at fair value. The difference between cost and fair value of shares owned on the day of measurement is recorded as unrealized gain or loss on investments.
Dividends – Dividends declared by the Funds are recognized on the ex-dividend date.
Net Realized Gains and Losses – Net realized gains and losses on Fund shares represent the difference between the proceeds from sales of shares of the Funds by the sub-accounts and the cost of such shares, which is determined on a weighted average basis, and realized gain distributions received from the underlying Fund. Transactions are recorded on a trade date basis. Distributions of net realized gains are recorded on the Funds’ ex-distribution date.
Federal Income Taxes – The Account intends to qualify as a segregated asset account as defined by the Internal Revenue Code of 1986 (“Code”). In order to qualify as a segregated asset account, each sub-account is required to satisfy the diversification requirements of Section 817(h) of the Code. The Code provides that the “adequately diversified” requirement may be met if the underlying investments satisfy either the statutory safe harbor test or diversification requirements set forth in regulations issued by the Secretary of the Treasury. The operations of the Account are included in the tax return of Allstate New York. Allstate New York is taxed as a life insurance company under the Code and joins with The Allstate Corporation and its eligible domestic subsidiaries in the filing of a consolidated federal income tax return. No income taxes are allocable to the Account. The Account had no liability for unrecognized tax benefits as of December 31, 2017. The Account believes that it is reasonably possible that the liability balance will not significantly increase within the next twelve months. No amounts have been accrued for interest or penalties related to unrecognized tax benefits.
Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported at the date of the financial statements and the reported amounts of increases and decreases in net assets resulting from operations and the accompanying notes. Actual results could differ from those estimates.
4.    Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets recorded on the Statements of Net Assets at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:
Level 1:
Assets whose values are based on unadjusted quoted prices for identical assets in an active market that the Account can access.
Level 2:
Assets whose values are based on the following:
(a) Quoted prices for similar assets in active markets;
(b) Quoted prices for identical or similar assets in markets that are not active; or
(c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset.



69


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 


4.    Fair Value Measurements (continued)
Level 3:
Assets whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect the Account’s estimates of the assumptions that market participants would use in valuing the assets.
In determining fair value, the Account uses the market approach which generally utilizes market transaction data for the same or similar instruments. All investments during the reporting period consist of shares of the Funds that have daily quoted net asset values for identical assets that the sub-account can access and are categorized as Level 1. Net asset values for these actively traded Funds are obtained daily from the Funds’ managers. The Account’s policy is to recognize transfers of securities among the levels at the beginning of the reporting period. During the year ended December 31, 2017, there were no transfers between fair value levels.
5. Expenses
Surrender charge - In the event the policy is surrendered, a withdrawal charge may be imposed. The charge is assessed if the policy is surrendered during a specified time, which ranges from the first 9 years to the first 14 years depending upon the policy, and varies based upon several variables, including the policyholder’s age and Account value at the time of surrender. This charge ranges from $3.32 to $49.00 per $1,000 of face amount. These amounts are included in payments on termination on the Statements of Changes in Net Assets.
Monthly Deductions - On each monthly deduction day (the same day in each month as the Issue Date, or the last day of the month if a month does not have that day), Allstate New York will deduct from the policy value an amount to cover certain charges and expenses incurred in connection with the policy. The monthly deduction is intended to compensate Allstate New York for expenses incurred in connection with the cost of insurance, mortality and expense risk charges, administrative expense charges, and policy fees. The monthly deductions are recognized as a redemption of units and are included in policy maintenance charge reported in the Statements of Changes in Net Assets. They are as follows:
Cost of Insurance - On all policies, Allstate New York charges each policyholder monthly for cost of insurance. The cost of insurance is determined based upon several variables, including the policyholder’s age and gender, the policy year, the face amount and the underwriting class.
Mortality and Expense Risk Charge - The mortality and expense risk charge covers insurance benefits available with the policies and certain expenses of the policies. It also covers the risk that the current charges will not be sufficient in the future to cover the cost of administering the policies. Allstate New York deducts charges daily at a rate ranging from 0.05% to 0.55% per annum of the net policy value and vary based on the policy year.
Administrative Expense Charge - Allstate New York deducts an administrative expense charge on a monthly basis to cover expenses incurred in evaluating the insured person’s risk, issuing the policy, and sales expenses. The annual amount of this charge ranges from $0.09 to $2.50 per $1,000 of face amount depending upon the policy and the policy year.
Policy Fee - On all policies, Allstate New York deducts a policy fee on a monthly basis to cover expenses such as salaries, postage and periodic reports. This fee ranges from $10 to $15 per month, depending upon the policy and the policy year.











70


ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 


6. Purchases of Investments:
The cost of investments purchased during the year ended December 31, 2017 was as follows:
Fund Manager
Sub-Account
Purchases
AIM Variable Insurance Funds (Invesco
Invesco V.I. American Franchise
$
33,944

 Variable Insurance Funds)*
Invesco V.I. American Value
1,328


Invesco V.I. Core Equity
2,505


Invesco V.I. Government Securities
6,910


Invesco V.I. Growth and Income Fund Series I
27,141


Invesco V.I. High Yield
2,948


Invesco V.I. Mid Cap Core Equity
9,498


Invesco V.I. Mid Cap Growth Fund-Series II*
8,017


Invesco V.I. Value Opportunity
6,213

AllianceBernstein Fund
VPS Growth and Income Class A
3,979


VPS International Growth Class A
3,480


VPS International Value Class A
1,194


VPS Small Cap Growth Class A
4,647


VPS Small/Mid Cap Value Class A
1,760

Alps Variable Investments Trust*
Morningstar Aggressive Growth ETF Asset Allocation Portfolio Class I
71,281


Morningstar Balanced ETF Asset Allocation Portfolio Class I
79,863


Morningstar Conservative ETF Asset Allocation Portfolio Class I
12,768


Morningstar Growth ETF Asset Allocation Portfolio Class I
117,242


Morningstar Income and Growth ETF Asset Allocation Portfolio Class I
45,149

Deutsche Investments Variable Insurance
Deutsche Equity 500 Index VIP Class A
21,125

Trust
Deutsche Small Cap Index VIP Class A
6,156

Deutsche Variable Series II
Deutsche Global Income Builder VIP Class A
7,420

Fidelity Variable Insurance Products Fund
VIP Asset Manager
15,647


VIP Contrafund
102,058


VIP Emerging Markets
4,523


VIP Equity-Income
77,201


VIP Government Money Market Portfolio Initial Class*
113,133


VIP Growth
109,093


VIP Growth & Income
12,055


VIP High Income
4,291


VIP Index 500
89,513


VIP Index 500 - Service Class
41,144


VIP Investment Grade Bond
44,156

                                                                                                                                                                                                                                                                                                                                                                    * See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.




71

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 


6.    Purchases of Investments (continued):
Fund Manager
Sub-Account
Purchases
Fidelity Variable Insurance Products Fund
VIP Mid Cap
$
10,202

(continued)
VIP Overseas
23,446


VIP Real Estate
9,817


VIP Value Strategies
3,613

Franklin Templeton Investments
Franklin High Income VIP Fund Class 1*
9,567


Franklin Income VIP Fund Class 1
4,212


Franklin Mutual Global Discovery VIP Fund Class 1
1,494


Franklin Mutual Shares VIP Fund Class 1
1,159


Franklin Small Cap Value VIP Fund Class 1
8,413


Franklin Small-Mid Cap Growth VIP Fund Class 1
4,078


Franklin Strategic Income VIP Fund Class 1
2,706


Franklin U.S. Government Securities VIP Fund Class 1
1,311


Templeton Global Bond VIP Fund Class 1
3,147

Janus Aspen Series
Janus Henderson Balanced Portfolio Institutional Shares*
5,020


Janus Henderson Enterprise Portfolio Institutional Shares*
8,970


Janus Henderson Flexible Bond Portfolio Institutional Shares*
1,540


Janus Henderson Forty Portfolio Institutional Shares*
13,709


Janus Henderson Global Technology Portfolio Institutional Shares*
4,581


Janus Henderson Mid Cap Value Portfolio Institutional Shares*
1,495


Janus Henderson Overseas Portfolio Institutional Shares*
7,682

Janus Aspen Series (Service Shares)
Janus Henderson Balanced Portfolio Service Shares*
28,401


Janus Henderson Global Research Portfolio Service Shares*
2,458


Janus Henderson Mid Cap Value Portfolio Service Shares*
16,404


Janus Henderson Overseas Portfolio Service Shares*
8,514

Lazard Retirement Series, Inc.
Emerging Markets Equity
4,873

Legg Mason Partners Variable Portfolios I,
ClearBridge Variable Large Cap Value Portfolio Class I
14,787

 Inc.
Western Assets Variable Global High Yield Bond Portfolio Class I
13,007

MFS Variable Insurance Trust
MFS High Yield Portfolio
7,308


MFS Investors Trust
2,089


MFS Mass Investors Growth Stock Series - Initial Class
6,279


MFS New Discovery
15,740


MFS Total Return
12,126


MFS Utilities
14,053


MFS Value
8,075

                                                                                                                                                                                                                                                                                                                                                                    * See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.


72

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 


6.    Purchases of Investments (continued):
Fund Manager
Sub-Account
Purchases
Morgan Stanley Variable Insurance Fund, Inc.*
Morgan Stanley VIF Emerging Markets Equity Portfolio Class I*
$
1,910


Morgan Stanley VIF Growth Portfolio Class I*
11,649


Morgan Stanley VIF U.S. Real Estate Portfolio Class I*
11,650

Oppenheimer Variable Account Funds
Oppenheimer Conservative Balance Fund
5,499


Oppenheimer Discovery MidCap Growth
17,393


Oppenheimer Equity Income*
314


Oppenheimer Global
2,567


Oppenheimer Global Fund/VA- Service Shares*
23,585


Oppenheimer Global Strategic Income
1,845


Oppenheimer International Growth Fund/VA*
10,819


Oppenheimer Main Street*
9,990


Oppenheimer Main Street Small Cap
72,567


Oppenheimer Total Return Bond Fund/VA*
2,400

PIMCO Variable Insurance Trust
Foreign Bond
6,528


PIMCO Real Return
18,499


PIMCO Total Return
33,323

Putnam Variable Trust (Class IA)
VT High Yield (Class IA)
17,610


VT International Value Fund (Class IA)
3,163

Rydex Variable Trust
Guggenheim VT U.S. Long Short Equity Fund
1,681

T. Rowe Price Equity Series, Inc.
T. Rowe Price Blue Chip Growth
8,966


T. Rowe Price Equity Income
75,681

The Alger Portfolios
Alger Balanced Class I-2
3,608


Alger Capital Appreciation Class I-2
36,696


Alger Large Cap Growth Class I-2
40,200


Alger MidCap Growth Class I-2
27,298

VanEck VIP Trust*
VanEck VIP Emerging Markets Fund Initial Class*
6,078


VanEck VIP Global Hard Assets Fund Initial Class*
12,722

                                                                                                                                                                                                                                                                                                                                                                    * See Note 2 for disclosure of changes in sub-accounts and to the names of Funds during 2017.


73

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7.     Financial Highlights
A summary of accumulation units outstanding, accumulation unit values, net assets, net investment income ratios, and total return ratios by sub-account is presented below for each of the five years in the period ended December 31, 2017.
Items in the following table are notated as follows:
* Investment Income Ratio - These amounts represent dividends, excluding realized gain distributions, received by the sub-account from the Fund, net of management fees assessed by the Fund manager, divided by the average net assets. These ratios exclude those expenses that result in a reduction in the accumulation unit values or redemption of units. The recognition of investment income by the sub-account is affected by the timing of the declaration of dividends by the Fund in which the sub-account invests. The investment income ratio for each product may differ due to the timing of policy transactions.
Sub-accounts with a date notation indicate the effective date of that investment option in the Account. Consistent with the total return the investment income ratio is calculated for the period or from the effective date through the end of the reporting period. The investment income ratio for closed sub-accounts is calculated from the beginning of period, or from the effective date, through the last day the sub-account was open. The investment income ratio is reported at zero when no dividend is received in the sub-account during the period or the net asset value at the end of the period is zero.
** Total Return - These amounts represent the total return for periods indicated, including changes in the value of the Fund. The products currently sold through the Account do not contain expenses assessed through the reduction in the accumulation unit values. The ratio does not include any expenses assessed through the redemption of units. The total return is calculated as the change in the accumulation unit value during the reporting period, or the effective period if less than the reporting period, divided by the beginning of period accumulation unit value or the accumulation unit value on the effective date.

74

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7.     Financial Highlights (continued)    
 
Consultant Accumulator and Consultant Protector
 
At December 31,
 
For the year ended December 31,
 
 
Accumulation Units
 
Accumulation Unit Value
 
Net Assets
 
Investment Income Ratio*
 
Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
 
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) - Invesco V.I. American Franchise
2017
12,945


$20.26

$262,283

0.09
%

27.34
%
2016
13,335


15.91


212,180


0.00


2.27
 
2015
13,400


15.56


208,492


0.00


5.01
 
2014
14,569


14.82


215,867


0.04


8.44
 
2013
15,676


13.66


214,181


0.43


40.14
 
 
 
 
 
 
 
 
 
 
 
 
 
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) - Invesco V.I. Core Equity
2017
1,006


21.68


21,787


1.07


13.17
 
2016
966


19.15


18,496


0.71


10.26
 
2015
1,088


17.37


18,891


1.07


-5.77
 
2014
1,234


18.44


22,750


0.88


8.15
 
2013
1,179


17.05


20,099


1.44


29.25
 
 
 
 
 
 
 
 
 
 
 
 
 
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) - Invesco V.I. Government Securities
2017
4,004


11.50


46,040


2.15


1.96
 
2016
3,743


11.28


42,220


1.98


1.23
 
2015
3,955


11.14


44,063


2.26


0.34
 
2014
3,722


11.10


41,327


3.21


4.14
 
2013
3,569


10.66


38,053


3.57


-2.62
 
 
 
 
 
 
 
 
 
 
 
 
 
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) - Invesco V.I. Growth and Income Fund Series I
2017
6,559


42.67


279,873


1.53


14.32
 
2016
6,485


37.32


242,020


1.08


19.69
 
2015
7,011


31.18


218,639


2.99


-3.06
 
2014
6,759


32.17


217,428


1.76


10.28
 
2013
6,709


29.17


195,702


1.54


34.08
 
 
 
 
 
 
 
 
 
 
 
 
 
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) - Invesco V.I. High Yield
2017
2,168


14.07


30,518


4.13


6.30
 
2016
2,135


13.24


28,264


4.26


11.21
 
2015
2,020


11.90


24,048


5.52


-3.17
 
2014
1,980


12.29


24,342


5.00


1.73
 
2013
2,035


12.08


24,591


5.00


7.01
 
 
 
 
 
 
 
 
 
 
 
 
 
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) - Invesco V.I. Mid Cap Core Equity
2017
4,260


26.63


113,482


0.54


14.92
 
2016
4,195


23.18


97,237


0.08


13.43
 
2015
4,269


20.43


87,220


0.34


-4.03
 
2014
4,604


21.29


98,018


0.04


4.43
 
2013
4,704


20.39


95,896


0.73


28.81
 
 
 
 
 
 
 
 
 
 
 
 
 
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) - Invesco V.I. Mid Cap Growth Fund-Series II
2017
2,228


30.15


67,149


0.00


22.14
 
2016
2,246


24.69


55,456


0.00


0.57
 
2015
2,307


24.54


56,634


0.00


1.04
 
2014
9,058


24.29


220,029


0.00


7.69
 
2013
9,954


22.56


224,533


0.22


36.60
 

75

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7.     Financial Highlights (continued)
 
Consultant Accumulator and Consultant Protector
 
At December 31,

For the year ended December 31,
 
 
Accumulation Units

Accumulation Unit Value

Net Assets

Investment Income Ratio*

Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
 
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) - Invesco V.I. Value Opportunity
2017
4,337


$20.60

$89,320

0.39
%

17.44
%
2016
4,582


17.54


80,355


0.39


18.34
 
2015
4,391


14.82


65,072


2.66


-10.40
 
2014
4,497


16.54


74,381


1.33


6.62
 
2013
5,047


15.51


78,297


1.47


33.75
 
 
 
 
 
 
 
 
 
 
 
 
 
Alps Variable Investments Trust - Morningstar Aggressive Growth ETF Asset Allocation Portfolio Class I
2017
—


N/A


—


1.55


20.17
 
2016
—


N/A


—


1.68


N/A
 
2015
—


N/A


—


1.58


N/A
 
2014
—


N/A


—


N/A


N/A
 
2013
—


N/A


—


N/A


N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
Alps Variable Investments Trust - Morningstar Balanced ETF Asset Allocation Portfolio Class I
2017
—


N/A


—


2.02


13.65
 
2016
—


N/A


—


2.02


N/A
 
2015
977


17.22


16,825


1.81


-1.97
 
2014
877


17.56


 15,406


 1.49


 4.79
 
2013
769


16.76


 12,889


 2.22


 12.19
 
 
 
 
 
 
 
 
 
 
 
 
 
Alps Variable Investments Trust - Morningstar Conservative ETF Asset Allocation Portfolio Class I
2017
—


14.92


—


2.18


6.45
 
2016
—


N/A


—


 1.84


N/A
 
2015
—


N/A


—


1.53


N/A
 
2014
—


N/A


—


N/A


N/A
 
2013
—


N/A


—


N/A


N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
Alps Variable Investments Trust - Morningstar Growth ETF Asset Allocation Portfolio Class I
2017
938


24.49


22,988


1.66


17.68
 
2016
894


20.81


18,614


1.89


9.88
 
2015
846


18.94


16,028


1.69


-2.22
 
2014
966


19.37


18,715


1.29


4.85
 
2013
874


18.47


16,143


1.53


16.78
 
 
 
 
 
 
 
 
 
 
 
 
 
Deutsche Investments Variable Insurance Trust - Deutsche Equity 500 Index VIP Class A
2017
4,968


42.11


209,200


1.71


21.53
 
2016
4,958


34.65


171,806


1.97


11.61
 
2015
4,799


31.05


148,997


1.66


1.13
 
2014
4,488


30.70


137,771


1.78


13.39
 
2013
4,717


27.07


127,698


1.78


31.93
 
 
 
 
 
 
 
 
 
 
 
 
 
Deutsche Investments Variable Insurance Trust - Deutsche Small Cap Index VIP Class A
2017
1,290


49.75


64,216


1.03


14.33
 
2016
1,625


43.52


70,708


1.02


21.03
 
2015
1,607


35.96


57,756


1.05


-4.60
 
2014
1,809


37.69


68,175


0.94


4.74
 
2013
1,843


35.98


66,338


1.57


38.64
 

76

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7.     Financial Highlights (continued)
 
Consultant Accumulator and Consultant Protector
 
At December 31,
 
For the year ended December 31,
 
 
Accumulation Units
 
Accumulation Unit Value
 
Net Assets
 
Investment Income Ratio*
 
Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
 
Deutsche Variable Series II - Deutsche Global Income Builder VIP Class A
2017
4,229


$20.40

$86,255

2.95
%

16.54
%
2016
4,106


17.50


71,848


3.99


6.81
 
2015
3,882


16.38


63,618


3.00


-1.44
 
2014
4,030


16.62


67,001


3.02


3.83
 
2013
3,795


16.01


60,758


2.07


16.63
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Asset Manager
2017
3,180


27.05


86,030


1.92


14.10
 
2016
3,156


23.71


74,828


1.48


3.07
 
2015
3,255


23.00


74,867


1.68


0.14
 
2014
3,021


22.97


69,393


1.43


5.83
 
2013
3,552


21.70


77,084


1.61


15.71
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Contrafund
2017
18,046


48.93


883,011


1.02


21.88

2016
18,060


40.15


725,130


0.81


8.01
 
2015
18,863


37.17


701,210


0.91


0.67
 
2014
26,133


36.93


964,990


0.98


11.94
 
2013
26,365


32.99


869,664


1.11


31.29
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Equity-Income
2017
24,351


33.76


822,031


1.74


12.89
 
2016
23,677


29.90


707,994


2.34


18.02
 
2015
23,582


25.34


597,488


3.30


-3.96
 
2014
23,241


26.38


613,172


2.87


8.72
 
2013
24,399


24.27


592,107


2.58


28.15
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Government Money Market Portfolio Initial Class
2017
27,579


14.78


407,537


0.66


0.67
 
2016
30,251


14.68


444,048


0.20


0.20
 
2015
17,252


14.65


252,717


0.03


0.03
 
2014
15,589


14.64


228,288


0.01


0.01
 
2013
14,799


14.64


216,706


0.03


0.03
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Growth
2017
27,011


34.73


938,090


0.22


35.13
 
2016
27,021


25.70


694,502


0.04


0.80
 
2015
26,958


25.50


687,352


0.26


7.17
 
2014
27,994


23.79


665,996


0.19


11.30
 
2013
30,053


21.38


642,390


0.29


36.34
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Index 500
2017
25,101


34.83


874,263


1.74


21.71
 
2016
27,297


28.62


781,172


1.41


11.86
 
2015
30,259


25.58


774,149


1.85


1.33
 
2014
36,671


25.25


925,817


1.74


13.57
 
2013
33,418


22.23


742,871


1.93


32.24
 

77

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7.     Financial Highlights (continued)
 
Consultant Accumulator and Consultant Protector
 
At December 31,
 
For the year ended December 31,
 
 
Accumulation Units
 
Accumulation Unit Value
 
Net Assets
 
Investment Income Ratio*
 
Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Investment Grade Bond
2017
14,559


$18.67

$271,791

2.44
%

4.22
%
2016
14,189


17.91


254,186


2.44


4.74
 
2015
14,209


17.10


243,019


2.65


-0.60
 
2014
13,940


17.21


239,851


2.19


5.83
 
2013
14,651


16.26


238,188


2.46


-1.78
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Overseas
2017
11,432


25.40


290,343


1.48


30.28
 
2016
11,589


19.49


225,912


1.50


-5.06
 
2015
11,088


20.53


227,681


1.38


3.63
 
2014
11,743


19.81


232,695


1.39


-8.08
 
2013
11,329


21.56


244,219


1.39


30.44
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Janus Aspen Series - Janus Henderson Forty Portfolio Institutional Shares
2017
3,047


41.89


127,615


0.00


30.31
 
2016
2,944


32.14


94,593


0.81


2.20
 
2015
2,797


31.45


87,970


0.00


12.22
 
2014
2,692


28.03


75,458


0.15


8.73
 
2013
2,593


25.78


66,837


0.70


31.23
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Janus Aspen Series (Service Shares) - Janus Henderson Balanced Portfolio Service Shares
2017
10,899


34.81


379,423


1.41


18.13
 
2016
10,481


29.47


308,863


1.89


4.32
 
2015
10,523


28.25


297,274


1.66


0.41
 
2014
10,621


28.13


298,792


1.54


8.24
 
2013
10,225


25.99


265,744


1.35


19.80
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Janus Aspen Series (Service Shares) - Janus Henderson Global Research Portfolio Service Shares
2017
1,569


29.84


46,827


0.70


26.68
 
2016
1,628


23.56


38,363


0.95


1.82
 
2015
1,584


23.14


36,626


0.55


-2.53
 
2014
1,526


23.74


36,220


0.95


7.18
 
2013
1,517


22.15


33,591


1.09


28.08
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Janus Aspen Series (Service Shares) - Janus Henderson Mid Cap Value Portfolio Service Shares
2017
4,997


32.69


163,365


0.63


13.63
 
2016
4,942


28.77


142,165


0.90


18.76
 
2015
5,075


24.22


122,934


1.02


-3.69
 
2014
5,279


25.15


132,766


1.25


8.44
 
2013
5,328


23.19


123,575


1.15


25.81
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Janus Aspen Series (Service Shares) - Janus Henderson Overseas Portfolio Service Shares
2017
11,069


9.02


99,849


1.65


30.80
 
2016
10,837


6.90


74,736


4.90


-6.71
 
2015
9,803


7.39


72,465


0.54


-8.80
 
2014
9,012


8.11


73,048


3.03


-12.10
 
2013
8,709


9.22


80,310


3.15


14.28
 

78

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7. Financial Highlights (continued)
 
Consultant Accumulator and Consultant Protector
 
At December 31,
 
For the year ended December 31,
 
 
Accumulation Units
 
Accumulation Unit Value
 
Net Assets
 
Investment Income Ratio*
 
Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
Lazard Retirement Series, Inc. - Emerging Markets Equity
2017
576


$64.10

$36,893

1.84
%

27.82
%
2016
551


50.15


27,625


1.08


20.78
 
2015
569


41.52


23,628


1.23


-20.05
 
2014
510


51.94


26,483


1.75


-4.64
 
2013
507


54.46


27,631


1.42


-1.24
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Legg Mason Partners Variable Portfolios I, Inc. - ClearBridge Variable Large Cap Value Portfolio Class I
2017
5,685


28.91


164,337


1.42


14.84
 
2016
5,658


25.17


142,439


1.52


13.00
 
2015
6,152


22.28


137,071


1.49


-2.87
 
2014
6,319


22.94


144,933


2.92


11.71
 
2013
1,199


20.53


24,616


1.72


32.37
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Legg Mason Partners Variable Portfolios I, Inc. - Western Assets Variable Global High Yield Bond Portfolio Class I
2017
4,627


23.45


108,521


5.52


8.65
 
2016
4,460


21.59


96,269


6.40


15.60
 
2015
4,784


18.67


89,322


6.23


-5.84
 
2014
4,986


19.83


98,874


7.13


-1.15
 
2013
5,387


20.06


108,071


6.14


6.27
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MFS Variable Insurance Trust - MFS High Yield Portfolio (Fund launched on August 16, 2013)
2017
4,608


12.44


57,313


6.49


6.69
 
2016
4,507


11.66


52,539


6.64


13.82
 
2015
4,794


10.24


49,109


7.24


-4.22
 
2014
5,047


10.69


53,969


5.54


2.81
 
2013
6,368


10.40


66,243


4.69


4.02
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MFS Variable Insurance Trust - MFS Investors Trust
2017
670


31.34


20,992


0.74


23.35
 
2016
682


25.41


17,340


0.86


8.59
 
2015
649


23.40


15,184


0.95


0.22
 
2014
620


23.35


14,484


0.96


11.01
 
2013
579


21.03


12,162


1.15


32.05
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MFS Variable Insurance Trust - MFS Mass Investors Growth Stock Series - Initial Class (Fund launched on March 27, 2015)
2017
4,743


13.43


63,699


0.67


28.42
 
2016
4,781


10.46


50,001


0.60


6.08
 
2015
4,819


9.86


47,513


1.00


-1.40
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MFS Variable Insurance Trust - MFS New Discovery
2017
3,453


57.20


197,484


0.00


26.65
 
2016
3,489


45.16


157,536


0.00


9.05
 
2015
3,462


41.41


143,353


0.00


-1.89
 
2014
7,095


42.21


299,458


0.00


-7.26
 
2013
7,122


45.51


324,146


0.00


41.52
 

79

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7. Financial Highlights (continued)
 
Consultant Accumulator and Consultant Protector
 
At December 31,
 
For the year ended December 31,
 
 
Accumulation Units
 
Accumulation Unit Value
 
Net Assets
 
Investment Income Ratio*
 
Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
 
MFS Variable Insurance Trust - MFS Total Return
2017
3,157


$33.93

$107,102

2.34
%

12.30
%
2016
3,089


30.22


93,347


2.88


9.09
 
2015
3,016


27.70


83,543


2.67


-0.37
 
2014
2,824


27.80


78,518


2.09


8.50
 
2013
3,272


25.62


83,835


1.78


19.05
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MFS Variable Insurance Trust - MFS Utilities
2017
1,206


60.70


73,217


4.46


14.83
 
2016
1,185


52.86


62,581


3.84


11.47
 
2015
1,253


47.42


59,394


4.40


-14.52
 
2014
1,261


55.47


69,946


2.31


12.73
 
2013
1,432


49.21


70,434


2.40


20.52
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MFS Variable Insurance Trust - MFS Value
2017
2,169


33.71


73,094


1.77


17.65
 
2016
2,511


28.65


71,944


2.14


14.09
 
2015
2,400


25.11


60,268


2.36


-0.74
 
2014
2,242


25.30


56,724


1.82


10.51
 
2013
3,364


22.89


77,021


1.48


35.89
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Morgan Stanley Variable Insurance Fund, Inc. - Morgan Stanley VIF Growth Portfolio Class I
2017
2,082


45.69


95,111


0.00


43.15
 
2016
2,209


31.92


70,483


0.00


-1.64
 
2015
2,158


32.45


70,026


0.00


12.24
 
2014
2,104


28.91


60,823


0.00


6.36
 
2013
2,173


27.18


59,074


0.44


48.07
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Morgan Stanley Variable Insurance Fund, Inc. - Morgan Stanley VIF U.S. Real Estate Portfolio Class I
2017
2,663


48.57


129,378


1.50


3.11
 
2016
2,523


47.11


118,900


1.21


6.81
 
2015
2,931


44.10


129,246


1.32


2.17
 
2014
2,846


43.17


122,837


1.44


29.72
 
2013
2,860


33.28


95,174


1.12


2.05
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oppenheimer Variable Account Funds - Oppenheimer Discovery MidCap Growth
2017
5,049


26.58


134,186


0.03


28.79
 
2016
5,188


20.64


107,069


0.00


2.33
 
2015
5,818


20.17


117,330


0.00


6.61
 
2014
6,030


18.92


114,077


0.00


5.78
 
2013
6,351


17.88


113,572


0.01


35.98
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oppenheimer Variable Account Funds - Oppenheimer Global Fund/VA- Service Shares
2017
13,398


32.44


434,663


0.73


36.32
 
2016
13,454


23.80


320,176


0.70


-0.16
 
2015
14,876


23.84


354,604


1.12


3.67
 
2014
15,222


22.99


349,994


0.84


2.06
 
2013
15,993


22.53


360,308


1.20


26.99
 

80

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7. Financial Highlights (continued)
 
Consultant Accumulator and Consultant Protector
 
At December 31,
 
For the year ended December 31,
 
 
Accumulation Units
 
Accumulation Unit Value
 
Net Assets
 
Investment Income Ratio*
 
Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
 
Oppenheimer Variable Account Funds - Oppenheimer International Growth Fund/VA
2017
1,480


$53.15

$78,692

1.48
%

26.29
%
2016
1,496


42.08


62,966


1.11


-2.12
 
2015
1,623


42.99


69,787


0.85


3.43
 
2014
3,253


41.57


135,221


1.18


-7.22
 
2013
3,155


44.80


141,359


1.31


25.87
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oppenheimer Variable Account Funds - Oppenheimer Main Street Small Cap
2017
12,530


55.56


696,128


0.85


14.16
 
2016
12,699


48.67


618,014


0.49


18.07
 
2015
13,774


41.22


567,812


0.90


-5.90
 
2014
14,011


43.81


613,814


0.84


11.93
 
2013
14,848


39.14


581,117


0.91


41.01
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PIMCO Variable Insurance Trust - Foreign Bond
2017
2,003


22.76


45,606


4.89


2.76
 
2016
1,953


22.15


43,258


1.35


6.48
 
2015
2,431


20.80


50,566


3.14


0.29
 
2014
2,394


20.74


49,645


1.80


11.17
 
2013
2,446


18.65


45,629


1.90


0.50
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PIMCO Variable Insurance Trust - PIMCO Real Return
2017
6,729


17.70


119,121


2.39


3.66
 
2016
6,172


17.08


105,397


2.25


5.20
 
2015
6,289


16.23


102,083


4.16


-2.71
 
2014
6,536


16.68


109,041


1.47


3.89
 
2013
6,313


16.06


101,380


1.88


-9.91
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PIMCO Variable Insurance Trust - PIMCO Total Return
2017
10,834


22.04


238,806


2.04


4.92
 
2016
10,083


21.01


211,850


2.12


2.68
 
2015
9,578


20.46


195,977


5.05


0.45
 
2014
9,433


20.37


192,141


2.26


4.45
 
2013
8,935


19.50


174,241


2.23


-2.11
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Putnam Variable Trust (Class IA) - VT High Yield (Class IA)
2017
2,658


31.71


84,303


5.92


7.22
 
2016
2,564


29.57


75,806


6.27


15.66
 
2015
2,514


25.57


64,273


7.02


-5.14
 
2014
2,544


26.95


68,567


6.13


1.91
 
2013
2,376


26.45


62,842


7.23


8.10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Putnam Variable Trust (Class IA) - VT International Value Fund (Class IA)
2017
961


30.56


29,353


1.64


25.06
 
2016
904


24.44


22,078


2.49


1.28
 
2015
851


24.13


20,506


0.59


-1.71
 
2014
3,479


24.55


85,382


1.54


-9.29
 
2013
3,418


27.06


92,505


2.66


22.63
 

81

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7. Financial Highlights (continued)
 
Consultant Accumulator and Consultant Protector
 
At December 31,
 
For the year ended December 31,
 
 
Accumulation Units
 
Accumulation Unit Value
 
Net Assets
 
Investment Income Ratio*
 
Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
 
Rydex Variable Trust - Guggenheim VT U.S. Long Short Equity Fund
2017
1,211


$27.24

$32,960

0.36
%

14.85
%
2016
1,300


23.72


30,807


0.00


0.65
 
2015
1,346


23.56


31,711


0.00


1.26
 
2014
1,427


23.27


33,202


0.00


2.79
 
2013
1,421


22.64


32,170


0.00


17.46
 
 
 
 
 
 
 
 
 
 
 
 
 
 
T. Rowe Price Equity Series, Inc. - T. Rowe Price Blue Chip Growth
2017
6,640


38.32


254,468


0.00


36.17
 
2016
6,750


28.14


189,958


0.00


0.78
 
2015
7,020


27.93


196,063


0.00


11.05
 
2014
7,926


25.15


199,316


0.00


9.17
 
2013
8,637


23.03


198,961


0.03


41.15
 
 
 
 
 
 
 
 
 
 
 
 
 
 
T. Rowe Price Equity Series, Inc. - T. Rowe Price Equity Income
2017
11,982


39.71


475,764


1.78


16.02
 
2016
12,861


34.22


440,156


2.32


19.17
 
2015
13,073


28.72


375,435


1.82


-6.85
 
2014
13,974


30.83


430,833


1.75


7.38
 
2013
14,273


28.71


409,846


1.58


29.72
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Alger Portfolios - Alger Capital Appreciation Class I-2
2017
4,287


60.98


261,403


0.17


31.08
 
2016
4,335


46.52


201,660


0.19


0.50
 
2015
4,622


46.29


213,908


0.08


6.19
 
2014
5,180


43.59


225,805


0.09


13.75
 
2013
5,343


38.32


204,771


0.37


35.19
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Alger Portfolios - Alger Large Cap Growth Class I-2
2017
8,675


31.16


270,291


0.00


28.46
 
2016
9,827


24.25


238,305


0.00


-0.83
 
2015
9,564


24.46


233,914


0.00


1.72
 
2014
10,320


24.04


248,120


0.16


10.99
 
2013
10,783


21.66


233,589


0.79


35.08
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Alger Portfolios - Alger MidCap Growth Class I-2
2017
8,651


44.69


386,554


0.00


29.79
 
2016
9,240


34.43


318,126


0.00


0.97
 
2015
9,051


34.10


308,612


0.00


-1.56
 
2014
9,555


34.64


330,967


0.00


8.01
 
2013
9,677


32.07


310,350


0.33


35.84
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Van Eck VIP Trust - Van Eck VIP Emerging Markets Funds Initial Class
2017
3,302


42.98


141,927


0.41


51.03
 
2016
3,236


28.46


92,100


0.45


0.10
 
2015
3,586


28.43


101,949


0.56


-13.99
 
2014
3,502


33.06


115,762


0.51


-0.41
 
2013
3,733


33.19


123,900


1.44


12.02
 

82

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7. Financial Highlights (continued)
 
Consultant Accumulator and Consultant Protector
 
At December 31,
 
For the year ended December 31,
 
 
Accumulation Units
 
Accumulation Unit Value
 
Net Assets
 
Investment Income Ratio*
 
Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
 
Van Eck VIP Trust - Van Eck VIP Global Hard Assets Fund Initial Class
2017
1,722


$27.61

$47,522

0.00
%

-1.70
%
2016
1,371


28.08


38,497


0.36


43.71
 
2015
1,456


19.54


28,450


0.04


-33.45
 
2014
1,987


29.36


58,329


0.10


-19.10
 
2013
1,894


36.29


68,747


0.66


10.53
 
 
 
 
 
 
 
 
 
 
 
 
 


83

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7. Financial Highlights (continued)
 
Total Accumulator
 
At December 31,
 
For the year ended December 31,
 
 
Accumulation Units
 
Accumulation Unit Value
 
Net Assets
 
Investment Income Ratio*
 
Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) - Invesco V.I. American Value
2017
279


$20.86

$5,808

0.84
%

9.96
%
2016
247


18.97


4,681


0.38


15.49

2015
221


16.42


3,630


0.29


-9.13

2014
250


18.07


4,514


0.48


9.75

2013
228


16.47


3,759


0.72


34.27

 
 
 
 
 
 
 
 
 
 
 
 
 
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) - Invesco V.I. Government Securities
2017
12

 
11.50
 
134

 
2.15
 
 
1.96
 
2016
2

 
11.28

 
20

 
1.98
 
 
1.23
 
2015
—

 
N/A

 
—

 
2.26
 
 
N/A
 
2014
—

 
N/A

 
—

 
3.21
 
 
N/A
 
2013
—

 
N/A

 
—

 
3.57
 
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) - Invesco V.I. Growth and Income Fund Series I
2017
722

 
21.68

 
15,637

 
1.53
 
 
14.32
 
2016
646

 
18.96

 
12,242

 
1.08
 
 
19.69
 
2015
588

 
15.84

 
9,316

 
2.99
 
 
-3.06
 
2014
595

 
16.34

 
9,722

 
1.76
 
 
10.28
 
2013
1,180

 
14.82

 
17,481

 
1.54
 
 
34.08
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AllianceBernstein Fund - VPS Growth and Income Class A
2017
765

 
21.89

 
16,757

 
1.43
 
 
18.92
 
2016
681

 
18.41

 
12,541

 
1.16
 
 
11.30
 
2015
811

 
16.54

 
13,409

 
1.47
 
 
1.70
 
2014
676

 
16.26

 
11,003

 
1.33
 
 
9.54
 
2013
610

 
14.85

 
9,056

 
1.26
 
 
34.96
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AllianceBernstein Fund - VPS International Growth Class A
2017
2,171

 
11.17

 
24,255

 
1.21
 
 
35.02
 
2016
2,082

 
8.27

 
17,229

 
0.00
 
 
-6.87
 
2015
2,180

 
8.88

 
19,369

 
0.36
 
 
-1.87
 
2014
2,025

 
9.05

 
18,335

 
0.00
 
 
-1.19
 
2013
1,806

 
9.16

 
16,550

 
1.04
 
 
13.60
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AllianceBernstein Fund - VPS International Value Class A
2017
2,093

 
9.26

 
19,372

 
2.31
 
 
25.42
 
2016
2,110

 
7.38

 
15,574

 
1.30
 
 
-0.50
 
2015
2,059

 
7.42

 
15,274

 
2.69
 
 
2.59
 
2014
1,925

 
7.23

 
13,921

 
4.18
 
 
-6.21
 
2013
1,485

 
7.71

 
11,446

 
6.68
 
 
23.00
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AllianceBernstein Fund - VPS Small Cap Growth Class A
2017
1,146

 
28.64

 
32,826

 
0.00
 
 
34.12
 
2016
1,067

 
21.36

 
22,804

 
0.00
 
 
6.46
 
2015
973

 
20.06

 
19,527

 
0.00
 
 
-1.25
 
2014
825

 
20.31

 
16,760

 
0.00
 
 
-1.81
 
2013
815

 
20.69

 
16,854

 
0.00
 
 
45.66
 

84

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7. Financial Highlights (continued)
 
Total Accumulator
 
At December 31,
 
For the year ended December 31,
 
 
Accumulation Units
 
Accumulation Unit Value
 
Net Assets
 
Investment Income Ratio*
 
Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AllianceBernstein Fund - VPS Small/Mid Cap Value Class A
2017
104


$24.91

$2,591

0.48
%

13.15
%
2016
110


22.01


2,431


0.63


25.09
 
2015
102


17.60


1,800


0.83


-5.49
 
2014
89


18.62


1,658


0.73


9.20
 
2013
74


17.05


1,268


0.60


38.06
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alps Variable Investments Trust - Morningstar Aggressive Growth ETF Asset Allocation Portfolio Class I
2017
17,338


17.05


295,675


1.55


20.17
 
2016
14,804


14.19


210,083


1.68


11.45
 
2015
12,152


12.73


154,749


1.58


-2.65
 
2014
10,261


13.08


134,215


1.21


4.74
 
2013
9,419


12.49


117,622


1.44


18.53
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alps Variable Investments Trust - Morningstar Balanced ETF Asset Allocation Portfolio Class I
2017
21,160


16.13


341,249


2.02


13.65
 
2016
18,962


14.19


269,063


2.02


8.69
 
2015
17,952


13.06


234,361


1.81


-1.97
 
2014
15,386


13.32


204,897


1.49


4.79
 
2013
13,410


12.71


170,416


2.22


12.19
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alps Variable Investments Trust - Morningstar Conservative ETF Asset Allocation Portfolio Class I
2017
4,012


13.80


55,380


2.18


6.45
 
2016
3,431


12.97


44,487


1.84


4.88
 
2015
3,256


12.36


40,252


1.53


-0.96
 
2014
2,919


12.48


36,432


1.47


3.10
 
2013
2,109


12.11


25,529


1.72


2.77
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alps Variable Investments Trust - Morningstar Growth ETF Asset Allocation Portfolio Class I
2017
28,016


16.83


471,524


1.66


17.68
 
2016
25,028


14.30


357,936


1.89


9.88
 
2015
20,632


13.02


268,535


1.69


-2.22
 
2014
16,875


13.31


224,626


1.29


4.85
 
2013
15,604


12.70


198,116


1.53


16.78
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alps Variable Investments Trust - Morningstar Income and Growth ETF Asset Allocation Portfolio Class I
2017
8,870


14.92


132,374


2.11


10.12
 
2016
8,717


13.55


118,127


2.39


6.73
 
2015
6,766


12.70


85,918


2.05


-1.52
 
2014
5,461


12.89


70,414


1.66


3.63
 
2013
3,991


12.44


49,659


1.94


7.58
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Contrafund
2017
2,858


21.28


60,821


1.02


21.88
 
2016
2,735


17.46


47,744


0.81


8.01
 
2015
2,719


16.17


43,951


0.91


0.67
 
2014
2,665


16.06


42,796


0.98


11.94
 
2013
2,701


14.34


38,749


1.11


31.29
 


85

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7. Financial Highlights (continued)
 
Total Accumulator
 
At December 31,
 
For the year ended December 31,
 
 
Accumulation Units
 
Accumulation Unit Value
 
Net Assets
 
Investment Income Ratio*
 
Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Emerging Markets
2017
1,071


$14.90

$15,939

0.73
%

47.40
%
2016
798


10.11


8,072


0.61
 
 
3.24
 
2015
530


9.79


5,189


0.60
 
 
-9.97
 
2014
491


10.88


5,344


0.45
 
 
1.38
 
2013
288


10.73


3,086


0.68
 
 
3.85
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Equity-Income
2017
2,401


18.63


44,721


1.74


12.89
 
2016
2,360


16.50


38,945


2.34
 
 
18.02
 
2015
2,549


13.98


35,640


3.30
 
 
-3.96
 
2014
2,435


14.56


35,450


2.87
 
 
8.72
 
2013
2,173


13.39


29,118


2.58
 
 
28.15
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Government Money Market Portfolio Initial Class
2017
8,258


10.40


85,867


0.66


0.67
 
2016
5,906


10.33


60,997


0.20
 
 
0.20
 
2015
5,084


10.31


52,404


0.03
 
 
0.03
 
2014
4,280


10.30


44,107


0.01
 
 
0.01
 
2013
3,672


10.30


37,836


0.03
 
 
0.03
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Growth
2017
3,316


23.24


77,064


0.22


35.13
 
2016
3,043


17.20


52,327


0.04
 
 
0.80
 
2015
3,040


17.06


51,866


0.26
 
 
7.17
 
2014
3,149


15.92


50,120


0.19
 
 
11.30
 
2013
2,887


14.30


41,294


0.29
 
 
36.34
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Growth & Income
2017
2,212


20.98


46,402


1.32


16.90
 
2016
1,965


17.95


35,258


1.81
 
 
16.08
 
2015
1,681


15.46


25,983


2.36
 
 
-2.27
 
2014
1,394


15.82


22,053


1.60
 
 
10.47
 
2013
1,768


14.32


25,322


1.95
 
 
33.56
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP High Income
2017
981


18.24


17,899


5.43


6.93
 
2016
969


17.06


16,528


5.77
 
 
14.61
 
2015
860


14.89


12,790


6.44
 
 
-3.63
 
2014
934


15.45


14,422


4.91
 
 
1.16
 
2013
1,335


15.27


20,395


6.47
 
 
5.95
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Index 500 - Service Class
2017
9,120


23.06


210,281


1.64


21.59
 
2016
10,414


18.96


197,493


1.50
 
 
11.75
 
2015
8,890


16.97


150,873


1.81
 
 
1.24
 
2014
10,162


16.76


170,361


1.70
 
 
13.46
 
2013
8,682


14.78


128,293


2.00
 
 
32.11
 

86

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7. Financial Highlights (continued)
 
Total Accumulator
 
At December 31,
 
For the year ended December 31,
 
 
Accumulation Units
 
Accumulation Unit Value
 
Net Assets
 
Investment Income Ratio*
 
Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Investment Grade Bond
2017
3,131


$15.35

$48,066

2.44
%

4.22
%
2016
2,937


14.72


43,240


2.44


4.74
 
2015
2,762


14.06


38,826


2.65


-0.60
 
2014
2,755


14.14


38,958


2.19


5.83
 
2013
2,628


13.36


35,120


2.46


-1.78
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Mid Cap
2017
2,318


22.75


52,729


0.67


20.81
 
2016
2,750


18.83


51,772


0.57


12.23
 
2015
2,057


16.78


34,503


0.53


-1.39
 
2014
1,950


17.01


33,169


0.26


6.29
 
2013
1,991


16.01


31,856


0.57


36.23
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Real Estate
2017
1,533


18.63


28,546


1.86


4.07
 
2016
1,308


17.90


23,406


1.62


5.75
 
2015
1,071


16.92


18,134


2.16


3.71
 
2014
862


16.32


14,071


1.35


30.18
 
2013
1,645


12.54


20,628


2.02


1.82
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fidelity Variable Insurance Products Fund - VIP Value Strategies
2017
405


21.16


8,549


1.51


19.36
 
2016
392


17.73


6,941


1.17


9.62
 
2015
355


16.17


5,740


1.15


-2.99
 
2014
376


16.67


6,266


1.14


6.80
 
2013
328


15.61


5,119


0.87


30.49
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Franklin Templeton Investments - Franklin High Income VIP Fund Class 1 (sub-account ceased operations on April 28, 2017)
2017
N/A


17.69


N/A


57.52


2.75
 
2016
793


17.22


13,653


6.72


17.25
 
2015
703


14.69


10,326


6.25


-8.88
 
2014
640


16.12


10,323


8.45


0.21
 
2013
1,028


16.08


16,518


7.91


8.17
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Franklin Templeton Investments - Franklin Income VIP Fund Class 1
2017
1,095


17.44


19,102


4.44


9.94
 
2016
1,077


15.86


17,089


4.82


14.33
 
2015
944


13.87


13,088


4.24


-6.84
 
2014
1,063


14.89


15,824


4.62


4.92
 
2013
761


14.19


10,804


6.07


14.18
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Franklin Templeton Investments - Franklin Mutual Global Discovery VIP Fund Class 1
2017
250


18.40


4,585


1.98


8.88
 
2016
226


16.90


3,814


1.96


12.44
 
2015
161


15.03


2,429


3.22


-3.39
 
2014
120


15.56


1,871


1.98


5.98
 
2013
134


14.68


1,962


2.83


27.95
 

87

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7. Financial Highlights (continued)
 
Total Accumulator
 
At December 31,
 
For the year ended December 31,
 
 
Accumulation Units
 
Accumulation Unit Value
 
Net Assets
 
Investment Income Ratio*
 
Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
 
Franklin Templeton Investments - Franklin Mutual Shares VIP Fund Class 1
2017
305


$17.66

$5,382

2.59
%

8.64
%
2016
297


16.26


4,826


2.24


16.35
 
2015
273


13.98


3,818


3.36


-4.69
 
2014
267


14.66


3,921


2.32


7.38
 
2013
245


13.66


3,347


2.39


28.53
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Franklin Templeton Investments - Franklin Small Cap Value VIP Fund Class 1
2017
1,962


23.20


45,516


0.71


10.92
 
2016
1,964


20.91


41,060


1.09


30.54
 
2015
2,077


16.02


33,269


0.90


-7.18
 
2014
1,853


17.26


31,981


0.83


0.88
 
2013
1,700


17.11


29,087


1.57


36.50
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Franklin Templeton Investments - Franklin Small-Mid Cap Growth VIP Fund Class 1
2017
875


22.02


19,280


0.00


21.75
 
2016
837


18.09


15,129


0.00


4.40
 
2015
742


17.33


12,842


0.00


-2.44
 
2014
806


17.76


14,307


0.00


7.78
 
2013
726


16.48


11,970


0.00


38.50
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Franklin Templeton Investments - Franklin Strategic Income VIP Fund Class 1
2017
607


16.34


9,922


3.24


4.74
 
2016
560


15.60


8,723


3.56


8.25
 
2015
450


14.41


6,479


6.86


-3.62
 
2014
376


14.95


5,620


4.68


2.12
 
2013
486


14.64


7,117


5.36


3.52
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Franklin Templeton Investments - Franklin U.S. Government Securities VIP Fund Class 1
2017
1,268


13.03


16,527


2.81


1.66
 
2016
1,244


12.82


15,944


2.70


0.90
 
2015
1,246


12.70


15,823


2.63


0.71
 
2014
1,314


12.61


 16,575


2.89


3.64
 
2013
1,306


12.17


 15,897


2.93


-1.99
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Franklin Templeton Investments - Templeton Global Bond VIP Fund Class 1
2017
1,542


16.65


     25,673


0.00


2.15
 
2016
1,451


16.30


23,643


0.00


3.21
 
2015
1,415


15.79


22,342


7.73


-4.10
 
2014
1,358


16.47


22,358


4.86


2.12
 
2013
1,504


16.12


24,246


4.71


1.89
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Janus Aspen Series - Janus Henderson Balanced Portfolio Institutional Shares
2017
977


21.34


20,852


1.67


18.43
 
2016
871


18.02


15,700


2.40


4.60
 
2015
680


17.22


11,712


1.85


0.62
 
2014
663


17.12


11,350


1.82


8.51
 
2013
773


15.78


12,195


1.31


20.15
 

88

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7. Financial Highlights (continued)
 
Total Accumulator
 
At December 31,
 
For the year ended December 31,
 
 
Accumulation Units
 
Accumulation Unit Value
 
Net Assets
 
Investment Income Ratio*
 
Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
 
Janus Aspen Series - Janus Henderson Enterprise Portfolio Institutional Shares
2017
861


$25.97

$22,362

0.26
%

27.42
%
2016
834


20.38


16,998


0.73


12.36
 
2015
789


18.14


14,300


0.85


4.03
 
2014
744


17.44


12,973


0.12


12.52
 
2013
1,039


15.50


16,101


0.52


32.38
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Janus Aspen Series - Janus Henderson Flexible Bond Portfolio Institutional Shares
2017
1,127


16.27


18,326


2.93


3.62
 
2016
1,132


15.70


17,790


2.88


2.46
 
2015
1,135


15.33


17,402


2.35


0.22
 
2014
1,084


15.29


16,580


3.51


4.94
 
2013
1,063


14.57


15,492


2.45


-0.14
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Janus Aspen Series - Janus Henderson Forty Portfolio Institutional Shares
2017
221


21.02


4,652


0.00


30.31
 
2016
259


16.13


4,180


0.81


2.20
 
2015
232


15.78


3,662


0.00


12.22
 
2014
190


14.07


2,675


0.15


8.73
 
2013
180


12.94


2,327


0.70


31.23
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Janus Aspen Series - Janus Henderson Global Technology Portfolio Institutional Shares
2017
518


33.09


17,151


0.00


45.09
 
2016
527


22.81


12,016


0.20


14.21
 
2015
492


19.97


9,813


0.00


4.85
 
2014
469


19.05


8,924


0.00


9.64
 
2013
671


17.37


11,654


0.00


35.76
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Janus Aspen Series - Janus Henderson Mid Cap Value Portfolio Institutional Shares
2017
450


21.38


9,626


0.80


13.94
 
2016
412


18.77


7,726


1.05


19.03
 
2015
351


15.77


5,536


1.27


-3.47
 
2014
267


16.33


4,362


1.08


8.77
 
2013
366


15.01


5,497


1.32


26.09
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Janus Aspen Series - Janus Henderson Overseas Portfolio Institutional Shares
2017
3,070


9.18


28,197


1.80


31.12
 
2016
2,711


7.01


18,990


4.59


-6.45
 
2015
2,150


7.49


16,098


0.63


-8.59
 
2014
1,972


8.19


16,152


2.77


-11.87
 
2013
2,727


9.30


25,353


3.09


14.56
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Morgan Stanley Variable Insurance Fund, Inc. - Morgan Stanley VIF Emerging Markets Equity Portfolio Class I
2017
1,948


11.12


21,670


0.77


35.06
 
2016
1,819


8.23


14,980


0.51


6.74
 
2015
1,617


7.71


12,467


0.83


-10.69
 
2014
1,309


8.64


11,305


0.41


-4.49
 
2013
1,221


9.04


11,042


1.17


-1.02
 


89

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7. Financial Highlights (continued)
 
Total Accumulator
 
At December 31,
 
For the year ended December 31,
 
 
Accumulation Units
 
Accumulation Unit Value
 
Net Assets
 
Investment Income Ratio*
 
Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
 
Morgan Stanley Variable Insurance Fund, Inc. - Morgan Stanley VIF Growth Portfolio Class I
2017
198


$29.48

$5,839

0.00
%

43.15
%
2016
179


20.59


3,691


0.00


-1.64
 
2015
86


20.94


1,801


0.00


12.24
 
2014
118


18.65


2,198


0.00


6.36
 
2013
102


17.54


1,791


0.44


48.07
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oppenheimer Variable Account Funds - Oppenheimer Conservative Balance Fund
2017
1,371


12.89


17,661


1.80


9.25
 
2016
1,003


11.79


11,825


2.37


5.26
 
2015
959


11.20


10,752


1.98


0.83
 
2014
809


11.11


8,995


1.93


8.20
 
2013
728


10.27


7,481


2.39


13.17
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oppenheimer Variable Account Funds - Oppenheimer Equity Income (Sub-account ceased operations on April 28, 2017)
2017
N/A


19.12


N/A


2.24


3.06
 
2016
450


18.55


8,344


5.69


15.31
 
2015
415


16.09


6,660


3.06


-9.58
 
2014
402


17.79


7,146


1.35


11.08
 
2013
618


16.02


9,907


1.41


28.93
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oppenheimer Variable Account Funds - Oppenheimer Global
2017
745


20.82


15,517


0.91


36.66
 
2016
677


15.24


10,317


1.03


0.08
 
2015
487


15.22


7,423


1.23


3.94
 
2014
414


14.65


6,066


1.13

 
2.29
 
2013
394


14.32


5,640


1.30


27.31
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oppenheimer Variable Account Funds - Oppenheimer Global Strategic Income
2017
378


14.78


5,586


2.28


6.27
 
2016
356


13.91


4,947


5.21


6.53
 
2015
350


13.06


4,554


5.98


-2.26
 
2014
321


13.36


4,284


4.29


2.84
 
2013
310


12.99


4,024


5.23


-0.13
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oppenheimer Variable Account Funds - Oppenheimer International Growth Fund/VA
2017
2,228


16.14


35,950


1.48


26.29
 
2016
2,113


12.78


27,011


1.11


-2.12
 
2015
1,892


13.05


24,699


0.85


3.43
 
2014
1,763


12.62


22,248


1.18


-7.22
 
2013
1,577


13.60


21,457


1.31


25.87
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oppenheimer Variable Account Funds - Oppenheimer Main Street (Sub-account become available for investments on April 28, 2017)
2017
908


10.91


9,901


2.16


9.08
 

90

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
 
 
 

7. Financial Highlights (continued)
 
Total Accumulator
 
At December 31,
 
For the year ended December 31,
 
 
Accumulation Units
 
Accumulation Unit Value
 
Net Assets
 
Investment Income Ratio*
 
Total
Return**
 
 
 
 
 
 
 
 
 
 
 
 
 
Oppenheimer Variable Account Funds - Oppenheimer Main Street Small Cap
2017
1,178


$25.39

$29,933

0.85
%

14.16
%
2016
1,036


22.24


23,050


0.49


18.05
 
2015
937


18.84


17,663


0.90


-5.90
 
2014
928


20.02


18,577


0.84


11.93
 
2013
1,324


17.89


23,688


0.91


41.01
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oppenheimer Variable Account Funds - Oppenheimer Total Return Bond Fund/VA
2017
667


10.38


6,918


2.22


4.59
 
2016
482


9.92


4,779


3.66


3.27
 
2015
398


9.61


3,822


3.94


0.96
 
2014
328


9.52


3,118


5.04


7.27
 
2013
282


8.87


2,504


4.77


-0.10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Alger Portfolios - Alger Balanced Class I-2
2017
386


17.28


6,660


3.49


15.44
 
2016
214


14.97


3,204


2.31


8.51
 
2015
139


13.79


1,916


2.11


1.47
 
2014
103


13.59


1,399


2.01


9.43
 
2013
103


12.42


1,280


1.11


15.28
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Alger Portfolios - Alger Capital Appreciation Class I-2
2017
1,656


26.71


44,250


0.17


31.08
 
2016
1,354


20.38


27,584


0.19


0.50
 
2015
951


20.28


19,280


0.08


6.19
 
2014
732


19.09


13,970


0.09


13.75
 
2013
962


16.78


16,141


0.37


35.19
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Alger Portfolios - Alger Large Cap Growth Class I-2
2017
508


20.74


10,511


0.00


28.46
 
2016
439


16.15


7,085


0.00


-0.83
 
2015
554


16.28


9,012


0.00


1.72
 
2014
448


16.01


7,164


0.16


10.99
 
2013
404


14.42


5,826


0.79


35.08
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Alger Portfolios - Alger MidCap Growth Class I-2
2017
911


17.57


16,015


0.00


29.79
 
2016
769


13.54


10,409


0.00


0.97
 
2015
858


13.40


11,502


0.00


-1.56
 
2014
744


13.62


10,131


0.00


8.01
 
2013
662


12.61


8,349


0.33


35.84
 








91
 
PART C
OTHER INFORMATION
Item 26. FINANCIAL STATEMENTS AND EXHIBITS
(a)
Resolution of the Board of Directors of Allstate Life Insurance Company of New York authorizing establishment of the Allstate Life of New York Variable Life Separate Account A dated August 1, 1996./1
(b)
Not Applicable
(c)
(i)    Form of Principal Underwriting Agreement. /2
(ii)
Form of Selling Agreement. /2
(iii)
Form of Schedule of Sales Commissions. /2
(d)
Form of the TotalAccumulator Flexible Premium Variable Adjustable Life Policy. /3
(e)
Form of Application for the TotalAccumulator Flexible Premium Variable Adjustable Life Policy /3
(f)
Restated Certificate of Incorporation of Allstate Life Insurance Company of New York (Previously filed in Depositor's Form 10-K annual report dated March 30, 1999 and incorporated herein by reference).
(g)
Contracts of Reinsurance - Not Applicable
(h)
Fund Participation Agreements:
(1)
Form of Participation Agreement between The Alger American Fund and Allstate Life Insurance Company of New York /1

(2)
Form of Participation Agreement between Alliance Bernstein Variable Products Series Fund, Inc. and Allstate Life Insurance Company of New York /4

(3)
Form of Participation Agreement between Fidelity(R) Variable Insurance Products and Allstate Life Insurance Company of New York /7

(4)
Form of Participation Agreement between Franklin Templeton Variable Insurance Products Trust and Allstate Life Insurance Company of New York /5

(5)
Form of Participation Agreement between Financial Investors Variable Insurance Trust and Allstate Life Insurance Company of New York /7

(6)
Form of Participation Agreement between Janus Aspen Series and Allstate Life Insurance Company of New York /1

(7)
Form of Participation Agreement between Oppenheimer Variable Account Funds and Allstate Life Insurance Company of New York /1

(8)
Form of Participation Agreement between Panorama Series Funds, Inc. and Allstate Life Insurance Company of New York /1

(9)
Form of Participation Agreement between Van Kampen Life Investment Trust and Allstate Life Insurance Company of New York /1

(10)
Form of Participation Agreement between The Universal Institutional Funds, Inc. and Allstate Life Insurance Company of New York /1
(i)
Administrative Contracts - Not Applicable
(j)
Other Material Contracts - Not Applicable


(k)
Opinion and Consent of Angela K. Fontana, Vice President, Secretary and General Counsel of Allstate Life Insurance Company of New York. (file herewith)
(l)
Actuarial Opinion and Consent. /6
(m)
Sample Calculation. /3
(n)
Other Consents:
(1)
Consent of Independent Registered Public Accounting Firm (file herewith)
(o)
Omitted Financial Statements - Not Applicable
(p)
Initial Capital Arrangements - Not Applicable
(q)
Procedures Memorandum pursuant to Rule 6e-3(T)(b)(12)(ii). /3
(99)(a) Powers of Attorney for Maureen A. Buckley, Angela K. Fontana, Mary Jane Fortin, John R. Hurley, Mario Imbarrato, Samuel H. Pilch, John R. Raben, Jr., P. John Rugel, Brian P. Stricker, Eric K. Ferren (file herewith).
/1 Incorporated by reference from Registration Statement on Form N-6 for Allstate Life of New York Variable Life Separate Account A, filed November 1, 2002 (File No. 333-100934).
/2 Incorporated by reference from Pre-Effective Amendment No. 1 to Registration Statement on Form N6 for Allstate Life of New York Variable Life Separate Account A, File No. 333-100935, dated June 30, 2003.
/3 Incorporated by reference from Registration Statement on Form N6 for Allstate Life of New York Variable Life Separate Account A, File No. 333-148225, 811-21250, filed December 12, 2007.
/4 Incorporated by reference from Post-Effective Amendment No. 16 to Form N-4 Registration Statement (File No. 033-35445) dated May 1, 2000.
/5 Incorporated by reference from Post-Effective Amendment No. 9 to Form N-4 Registration Statement (File No. 333-74411) dated October 31, 2002.
/6 Incorporated by reference from Pre-Effective Amendment No. 1 to Registration Statement on Form N-6 for Allstate Life of New York Variable Life Separate Account A, filed March 21, 2008 (File No. 333-148225, 811-21250).
/7 Incorporated by reference from Pre-Effective Amendment No. 2 to Registration Statement on Form N-6 for Allstate Life of New York Variable Life Separate Account A, filed April 25, 2008 (File No. 333-148225, 811-21250).



Item 27. EXECUTIVE OFFICERS AND DIRECTORS OF THE DEPOSITOR
NAME AND PRINCIPAL
BUSINESS ADDRESS*
 
POSITION AND OFFICE WITH
DEPOSITOR OF THE ACCOUNT
Buckley, Maureen A.
 
Director
Fontana, Angela K.
 
Director, Vice President, General Counsel and Secretary
Fortin, Mary Jane
 
Director, Chairman of the Board, President and Chief Executive Officer
Hurley, John R.
 
Director
Imbarrato, Mario
 
Director, Vice President and Chief Financial Officer 
Stricker, Brian P.
 
Director and Senior Vice President
Pilch, Samuel H.
 
Director and Senior Group Vice President
Raben, Jr., John R.
 
Director 
Rugel, P. John
 
Director, Senior Vice President and Chief Administrative Officer
Ferren, Eric K.
 
Senior Vice President and Controller
Dugenske, John E.
 
Executive Vice President and Chief Investment and Corporate Strategy Officer
Merten, Jesse E.
 
Executive Vice President and Treasurer
Flewellen, James M.
 
Senior Vice President
Prindiville, Mark Q.
 
Senior Vice President
Trudan, Dan E.
 
Senior Vice President
Wright, Jeffrey S.
 
Senior Vice President and Chief Information Security Officer 
Noll, P. Kelly
 
Senior Vice President and Chief Privacy and Ethics Officer
Andrew, Grant S.
 
Vice President 
DeCoursey, Randal
 
Vice President 
Miller, Merlin L.
 
Vice President and Illustration Actuary
Neely, Stephanie D.
 
Vice President and Assistant Treasurer
Lundal, Carol E.
 
Vice President and Assistant Treasurer
Nelson, Mary K.
 
Vice President
Resnick, Theresa M.
 
Vice President and Appointed Actuary 
Gordon, Daniel G.
 
Assistant Secretary
Stultz, Elliot A.
 
Assistant Secretary
Willemsen, Lisette S.
 
Assistant Secretary
Ludwig, Jillian K.
 
Assistant Secretary
Quinn, Mary Jo
 
Assistant Secretary
Helsdingen, Thomas H.
 
Assistant Treasurer
Lopez, Alma D.
 
Assistant Treasurer
Quadros, Cynthia I.
 
Assistant Treasurer 
Raphael, Patricia A.
 
Assistant Treasurer
Seaman, Laura A.
 
Assistant Treasurer
Kirchhoff, Tracy M.
 
Chief Compliance Officer
* The principal address of Ms. Buckley is 26 Huntleigh Drive, Loudonville, New York, 12211. The principal business address of Mr. Hurley, Esq. is 29 St. Agnes Lane, Loudonville, NY 12211. The principal business address of the other foregoing officers and directors is 3075 Sanders Road, Northbrook, Illinois 60062.
Item 28. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR
REGISTRANT


orgcharta06.jpg


Item 29: INDEMNIFICATION
The Articles of Incorporation of Allstate Life Insurance Company of New York (Depositor) provide for the indemnification of its directors and officers against expenses, judgments, fines and amounts paid in settlement as incurred by such person, so long as such person shall not have been adjudged to be liable for negligence or misconduct in the performance of a duty to the Company. This right of indemnity is not exclusive of other rights to which a director or officer may otherwise be entitled.
The By-Laws of ADLLC (Distributor) provide that the corporation will indemnify a director, officer, employee or agent of the corporation to the full extent of Delaware law. In general, Delaware law provides that a corporation may indemnify a director, officer, employee or agent against expenses, judgments, fines and amounts paid in settlement if that individual acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the corporation, and with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful.
No indemnification shall be made for expenses, including attorney's fees, if the person shall have been judged to be liable to the corporation unless a court determines such person is entitled to such indemnity. Expenses incurred by such individual in defending any action or proceeding may be advanced by the corporation so long as the individual agrees to repay the corporation if it is later determined that he or she is not entitled to such indemnification.
Under the terms of the form of Underwriting Agreement, the Depositor agrees to indemnify the distributor for any liability that the latter may incur to a Policy Owner or party-in-interest under a Policy, (a) arising out of any act or omission in the course of or in connection with rendering services under such Agreement, or (b) arising out of the purchase, retention or surrender of a Policy; provided, that the Depositor will not indemnify the Distributor for any such liability that results from the latter's willful misfeasance, bad faith or gross negligence, or from the reckless disregard by the latter of its duties and obligations under the Underwriting Agreement.
Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the forgoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public Policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public Policy as expressed in the Act and will be governed by the final adjudication of such issue.

Item 30. PRINCIPAL UNDERWRITERS
Allstate Distributors, LLC, ("ADLLC") serves as principal underwriter and distributor of the Policies. ADLLC is a wholly-owned subsidiary of Allstate Life Insurance Company. ADLLC is a registered broker dealer under the Securities and Exchange Act of 1934, as amended ("Exchange Act"), and is a member of FINRA.
Allstate Life Insurance Company of New York does not pay ADLLC any commission or other compensation. As stated in the SAI, under the underwriting agreement for the Policies, Allstate Life Insurance Company of New York reimburses ADLLC for expenses incurred in distributing the Policies, including liability arising from services Allstate Life Insurance Company of New York provides on the Policies.
In addition to Allstate Life Insurance Company of New York Variable Life Separate Account A, ADLLC serves as the principal distributor of certain life insurance policies and the following separate accounts:
     
Allstate Life Variable Life Separate Account A
Allstate Life Insurance Co Variable Annuity Separate Account C
   Intramerica Variable Annuity Account
Allstate Assurance Company Variable Life Separate Account
Lincoln Benefit Life Variable Life Account



The following are the directors and officers of ADLLC. The principal business address of each of the officers and directors listed below is 3075 Sanders Road, Northbrook, IL 60062.
Name
Position with Distributor
GRANT S. ANDREW
MANAGER
JAMES M. FLEWELLEN
MANAGER AND CHAIRMAN OF THE BOARD
ANGELA K. FONTANA
MANAGER, VICE PRESIDENT, GENERAL COUNSEL AND SECRETARY
MARY JANE FORTIN
MANAGER
MARIO IMBARRATO
MANAGER
MARY K. NELSON
MANAGER AND PRESIDENT
P. JOHN RUGEL
MANAGER
 BRIAN P. STRICKER
 MANAGER
ERIC K. FERREN
SENIOR VICE PRESIDENT AND CONTROLLER
JESSE E. MERTEN
EXECUTIVE VICE PRESIDENT AND ASSISTANT TREASURER
P. KELLY NOLL
SENIOR VICE PRESIDENT AND CHIEF PRIVACY AND ETHICS OFFICER
MARIAN GOLL
VICE PRESIDENT AND TREASURER
STEPHANIE D. NEELY
VICE PRESIDENT AND ASSISTANT TREASURER
DANA GOLDSTEIN
CHIEF COMPLIANCE OFFICER
DANIEL G. GORDON
ASSISTANT SECRETARY
LISETTE S. WILLEMSEN
ASSISTANT SECRETARY

Item 31. LOCATION OF ACCOUNTS AND RECORDS
The Depositor, Allstate Life Insurance Company of New York, is located at 878 Veteran's Memorial Highway, Suite 400, Hauppauge, New York 11788 with additional mailing addresses and service center addresses in Nebraska. The Principal Underwriter, ADLLC, is located at 3075 Sanders Road, Northbrook, Illinois 60062.
Each company maintains those accounts and records required to be maintained pursuant to Section 31(a) of the Investment Company Act and the rules promulgated thereunder.
Item 32. MANAGEMENT SERVICES
None.
Item 33. REPRESENTATION OF REASONABLENESS OF FEES
Allstate Life Insurance Company of New York hereby represents that the aggregate fees and charges deducted under the Policy are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Allstate Life Insurance Company of New York.


SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant, Allstate Life of New York Variable Life Separate Account A, certifies that it meets all of the requirements for effectiveness of this Registration Statement under Rule 485(b) under the Securities Act and has caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized in the Township of Northfield, State of Illinois, on the day of April 16, 2018.

ALLSTATE LIFE OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT A
(REGISTRANT)



BY: ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
(DEPOSITOR)



By: /s/ ANGELA K. FONTANA
-----------------------------------
Angela K. Fontana
Vice President, General Counsel and Secretary

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the day of April 16, 2018.


(Signature)
 
(Title)
 
 
 
*/ MARY JANE FORTIN
Director, Chairman of the Board, President and Chief Executive Officer
Mary Jane Fortin
(Principal Executive Officer)
 
 
*/ MAUREEN A. BUCKLEY
Director
Maureen A. Buckley
 
 
 
/s/ ANGELA K. FONTANA
Director, Vice President, General Counsel and Secretary
Angela K. Fontana
 
 
 
*/ JOHN R. HURLEY
Director
John R. Hurley
 
 
 
*/ MARIO IMBARRATO
Director, Vice President and Chief Financial Officer
Mario Imbarrato
(Principal Financial Officer)
 
 
*/ BRIAN P. STRICKER
Director and Senior Vice President
Brian P. Stricker
 
 
 
*/SAMUEL H. PILCH
Director and Senior Group Vice President
Samuel H. Pilch
 
 
 
*/JOHN R. RABEN, JR.
Director
John R. Raben, Jr.
 
 
 
*/P. JOHN RUGEL
Director, Senior Vice President and Chief Administrative Officer
P. John Rugel

 
*/ERIC K. FERREN
Senior Vice President and Controller
Eric K. Ferren
(Principal Accounting Officer)

*/ By Angela K. Fontana, pursuant to Power of Attorney, filed herewith.

EXHIBIT INDEX
Exhibit No.
Description
(26)(k)
Opinion and Consent of Counsel
(26)(n)(1)
Consent of Independent Registered Public Accounting Firm


(99)(a)
Powers of Attorney for Maureen A. Buckley, Angela K. Fontana, Mary Jane Fortin, John R. Hurley, Mario Imbarrato, Samuel H. Pilch, John R. Raben, Jr., P. John Rugel, Brian P. Stricker, Eric K. Ferren