UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    Form 13F
                               Form 13F COVER PAGE
Report for the Calendar Year or Quarter Ended: 3/31/2010
Check here if Amendment []; Amendment Number:
                                               -------
This Amendment (Check only one.):               [] is a restatement.
                                                [] adds new holdings entries.

Institutional Investment Manager Filing this Report:


Name:      ALLSTATE LIFE INSURANCE COMPANY

Address:   3075 SANDERS ROAD, SUITE G4A
           NORTHBROOK, IL.  60062-7127


Form 13F File Number: 28-01037


The institutional investment manager filing this report and the person by whom
it is signed hereby represent that the person signing the report is authorized
to submit it, that all information contained herein is true, correct and
complete, and that it is understood that all required items, statements,
schedules, lists, and tables, are considered integral parts of this form.

Persons Signing this Report on Behalf of Reporting Manager:

Name:   PAUL SCHUTT
Title:  ASSISTANT VICE PRESIDENT INVESTMENT OPERATIONS
Phone:  847-402-5169

Signature,  Place,  and  Date  of  Signing:

/s/ PAUL SCHUTT                    NORTHBROOK,IL.                     5/12/2010
- ---------------------------------  ---------------------------------  ----------
[Signature]                        [City, State]                      [Date]



Report  Type  (Check  only  one):

[X]     13F HOLDINGS REPORT. (Check here if all holdings of this reporting
        manager are reported in this report.)

[ ]     13F NOTICE. (Check here if no holdings reported are in this report,
        and all holdings are reported by other reporting manager(s).)

[ ]     13F COMBINATION REPORT. (Check here if a portion of the holdings for
        this reporting manager are reported in this report and a portion are
        reported by other reporting manager(s).)

List of Other Managers Reporting for this Manager:



Form 13F SUMMARY PAGE Report Summary: Number of Other Included Managers: 1 Form 13F Information Table Entry Total: 44 Form 13F Information Table Value Total: $ 307,861 -------------- (In Thousands) List of Other Included Managers: Provide a numbered list of the name(s) and 13F file number(s) of all institutional investment managers with respect to which this report is filed, other than the manager filing this report. No. Form 13F File Number Name 1 028-10298 ALLSTATE INVESTMENTS LLC - ---- -------------------- ----------------------------------------------------

FORM 13F INFORMATION TABLE COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 COLUMN 8 - ------------------------------------------- -------------- --------- -------- ----------------- ---------- -------- ---------------- VALUE SHRS OR SH/ PUT/ INVESTMENT OTHER VOTING AUTHORITY NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DISCRETION MANAGERS SOLE SHARED NONE - ------------------------------------------- -------------- --------- -------- -------- --- ---- ---------- -------- ---- ------ ---- 3M COMPANY 0% 11/21/2032 DEBT 88579YAB7 10,288 11198000 PRN DEFINED 1 X 0 0 AFFILIATED MANAGERS GROU 3.950000% DEBT 008252AL2 11,109 11250000 PRN DEFINED 1 X 0 0 08/15/2038 ALLEGHENY TECHNOLOGIES 4.250000% 06/01/2014 DEBT 01741RAD4 11,344 7750000 PRN DEFINED 1 X 0 0 ALLERGAN INC 1.500000% 04/01/2026 DEBT 018490AL6 13,710 12000000 PRN DEFINED 1 X 0 0 ALZA CORP 0% 07/28/2020 DEBT 02261WAB5 9,648 10250000 PRN DEFINED 1 X 0 0 AMGEN INC .375000% 02/01/2013 DEBT 031162AQ3 13,179 13000000 PRN DEFINED 1 X 0 0 ARCHER DANIELS .875000% 02/15/2014 DEBT 039483AW2 12,738 12850000 PRN DEFINED 1 X 0 0 BECKMAN COULTER INC 2.500000% 12/15/2036 DEBT 075811AD1 11,200 10000000 PRN DEFINED 1 X 0 0 BEST BUY 2.250000% 01/15/2022 DEBT 086516AF8 2,230 2000000 PRN DEFINED 1 X 0 0 CAMERON INTL CORP 2.500000% 06/15/2026 DEBT 13342BAB1 15,870 12000000 PRN DEFINED 1 X 0 0 CARNIVAL CORP 2.000000% 04/15/2021 DEBT 143658AN2 9,641 9000000 PRN DEFINED 1 X 0 0 CHESAPEAKE ENERGY CORP 2.250000% 12/15/2038 DEBT 165167CB1 1,091 1500000 PRN DEFINED 1 X 0 0 CMS ENERGY CORP 2.875000% 12/01/2024 DEBT 125896AW0 905 750000 PRN DEFINED 1 X 0 0 COSTCO WHOLESALE CORP 0% 08/19/2017 DEBT 22160QAC6 432 320000 PRN DEFINED 1 X 0 0 DANAHER CORP 0% 01/22/2021 DEBT 235851AF9 12,185 10550000 PRN DEFINED 1 X 0 0 DOMINION RES INC VA COMMON 25746U109 411 10000 PRN DEFINED 1 X 0 0 DOMINION RESOURCES INC 2.125000% 12/15/2023 DEBT 25746UAT6 7,994 6840000 PRN DEFINED 1 X 0 0 DST SYSTEMS INC 4.125000% 08/15/2023 DEBT 233326AB3 1,539 1500000 PRN DEFINED 1 X 0 0 EMC CORP 1.750000% 12/01/2013 DEBT 268648AM4 14,250 11400000 PRN DEFINED 1 X 0 0 FISHER SCIENTIFIC INTL 3.250000% 03/01/2024 DEBT 338032AX3 11,220 8350000 PRN DEFINED 1 X 0 0 FLUOR CORP 1.500000% 02/15/2024 DEBT 343412AA0 293 175000 PRN DEFINED 1 X 0 0 HCC INSURANCE HOLDINGS INC COMMON 404132102 1,541 55827 PRN DEFINED 1 X 0 0 HENRY SCHEIN INC 3.000000% 08/15/2034 DEBT 806407AB8 1,291 1000000 PRN DEFINED 1 X 0 0 HOLOGIC INC 2.000000% 12/15/2037 DEBT 436440AA9 895 1000000 PRN DEFINED 1 X 0 0 INGERSOLL-RAND CO LTD 4.500000% 04/15/2012 DEBT 45687AAD4 998 500000 PRN DEFINED 1 X 0 0 INTEL CORP 2.950000% 12/15/2035 DEBT 458140AD2 12,364 12600000 PRN DEFINED 1 X 0 0 JEFFERIES GROUP INC 3.875000% 11/01/2029 DEBT 472319AG7 2,981 3000000 PRN DEFINED 1 X 0 0 LABORATORY CORP AMERICA HOLDINGS DEBT 50540RAG7 6,347 6246000 PRN DEFINED 1 X 0 0 MEDTRONIC INC 1.625000% 04/15/2013 DEBT 585055AM8 15,334 14500000 PRN DEFINED 1 X 0 0 MYLAN LABORATORIES INC 1.250000% 03/15/2012 DEBT 628530AG2 1,110 1000000 PRN DEFINED 1 X 0 0 NABORS INDUSTRIES INC .940000% 05/15/2011 DEBT 629568AP1 9,417 9500000 PRN DEFINED 1 X 0 0 NASDAQ STOCK MARKET INC 2.500000% DEBT 631103AA6 4,620 4800000 PRN DEFINED 1 X 0 0 08/15/2013 NEWMONT MINING CORP 1.250000% 07/15/2014 DEBT 651639AH9 4,461 3475000 PRN DEFINED 1 X 0 0 NEWMONT MINING CORP 1.625000% 07/15/2017 DEBT 651639AJ5 6,133 4750000 PRN DEFINED 1 X 0 0 OLD REPUBLIC INTL CORP 8.000000% 05/15/2012 DEBT 680223AF1 5,636 4500000 PRN DEFINED 1 X 0 0 OMNICOM GROUP INC 0% 07/01/2038 DEBT 681919AT3 11,385 11500000 PRN DEFINED 1 X 0 0 RAYONIER TRS HOLDINGS IN 3.750000% DEBT 75508AAB2 7,639 7000000 PRN DEFINED 1 X 0 0 10/15/2012 SCHLUMBERGER LIMITED 2.125000% 06/01/2023 DEBT 806857AD0 316 200000 PRN DEFINED 1 X 0 0 SPDR S&P 500 ETF TRUST COMMON 78462F103 2,961 25309 PRN DEFINED 1 X 0 0 TEVA PHARMACEUT FIN BV 1.750000% 02/01/2026 DEBT 88165FAA0 9,546 7400000 PRN DEFINED 1 X 0 0 TEVA PHARMACEUT FIN LLC .250000% 02/01/2024 DEBT 88164RAB3 4,944 2700000 DEFINED 1 X 0 0 TJX COMPANIES INC COMMON 872540109 2,126 50000 DEFINED 1 X 0 0 TRANSOCEAN INC 1.500000% 12/15/2037 DEBT 893830AV1 15,132 15500000 DEFINED 1 X 0 0 US BANCORP 1.231250% 12/11/2035 DEBT 902973AM8 9,405 9500000 DEFINED 1 X 0 0