<PAGE>


                                         SECURITIES AND EXCHANGE COMMISSION

                                                WASHINGTON, D.C.  20549

                                                       FORM 10-Q

(Mark one)

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

      For the quarterly period ended March 31, 1998




                             OR

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

For the transition period from               to


                   COMMISSION FILE NUMBER 33-13375

                         IDS LIFE ACCOUNT RE
                                 OF
                     IDS LIFE INSURANCE COMPANY

         (Exact name of registrant as specified in its charter)


               MINNESOTA                         41-0823832

   (State or other jurisdiction of           (I.R.S. Employer
    incorporation or organization)            Identification No.)


      IDS TOWER 10, MINNEAPOLIS, MINNESOTA                    55440-0010


(Address of principal executive offices)                              (Zip Code)


Registrant's telephone number, including area code   (612) 671-3309



Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange 
Act of 1934 during the preceding 12 months (or for shorter period that the 
registrant was required to file such reports), and (2) has been subject to such 
filing requirements for the past 90 days.
Yes   X     No


<PAGE>



The Registrant is a separate  account of IDS Life  Insurance  Company (IDS Life)
established  pursuant to the  insurance  laws of the State of Minnesota  for the
purposes of funding real estate variable  annuity  contracts.  Unless  otherwise
specifically  noted,  the  information  set forth  herein  only  relates  to the
operations of the  Registrant  (the  "Account") and not to the operations of IDS
Life.


<PAGE>


                  PART 1 - FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS
                               IDS LIFE ACCOUNT RE
                                                         of
                                   IDS LIFE INSURANCE COMPANY

                                 BALANCE SHEETS

<TABLE>
                                                                  March 31,          December 31,
                                                                     1998               1997


                                                              ------------------   ----------------
Assets:
<S>                                                                <C>                <C>    
   Cash                                                                 $70,633            $82,887
   Investments in securities, at value (Note 1)
       (identified cost of $5,481,622 and $5,282,201
       at March 31, 1998 and December 31, 1997,
       respectively)                                                  5,481,622          5,282,201
   Investments  in  unconsolidated  joint  ventures,  at  fair  value  (cost  of
       $36,175,066  and  $36,218,770  at March 31, 1998 and  December  31, 1997,
       respectively)                                                 23,091,060         23,134,763

                                                              ------------------   ----------------
          Total assets                                              $28,643,315        $28,499,851
                                                              ==================   ================

Liabilities:
   Payable to IDS Life for:
       Operating expenses                                                92,187             72,008
       Contract terminations                                                 --             22,567
   Accrued mortality and expense risk fee                                27,776             28,961
   Accrued asset management fee                                          34,720             36,200

                                                              ------------------   ----------------
          Total liabilities                                            $154,683           $159,736
                                                              ==================   ================

Contract Owners' Equity:
   Net assets applicable to Variable Annuity
       contracts in accumulation period                             $28,488,632        $28,340,115
                                                              ==================   ================

Accumulation units outstanding                                       27,038,343         27,339,211
                                                              ==================   ================

Net asset value per accumulation unit                                     $1.05              $1.04
                                                              ==================   ================


See accompanying notes to financial statements.
</TABLE>



<PAGE>



                                                           IDS LIFE ACCOUNT RE
                                                                       of
                                                     IDS LIFE INSURANCE COMPANY

                                                     STATEMENTS OF OPERATIONS
                                                           (unaudited)




<TABLE>
                                                             For the three months ended

                                                            --------------------   ----------------------
                                                                 March 31,               March 31,
                                                                    1998                    1997
                                                            --------------------   ----------------------
Income:
<S>                                                                   <C>                  <C>          
    Interest income                                                   $  73,239            $     138,137
    Account's equity in earnings of
          unconsolidated joint ventures                                 546,976                  598,261
    Other income                                                              --                  54,266

                                                            --------------------   ----------------------
               Total income
                                                                        620,215                  790,664

                                                            --------------------   ----------------------

Expenses:
    Asset management fee                                                 97,461                  113,414
    Mortality and expense risk fee                                       77,969                   90,732
    Other operating expenses                                             29,196                   23,629

                                                            --------------------   ----------------------
               Total expenses                                           204,626                  227,775

                                                            --------------------   ----------------------

Net income                                                            $ 415,589                $ 562,889

                                                            ====================   ======================
See accompanying notes to financial statements.
</TABLE>



<PAGE>






                                                             IDS LIFE ACCOUNT RE

                                   of
                                                      IDS LIFE INSURANCE COMPANY

                                                      STATEMENTS OF CASH FLOWS

                                   (unaudited)


<TABLE>
                                                                                For the three months ended

                                                                      ---------------------    ---------------------
                                                                            March 31,                March 31,
                                                                              1998                     1997

                                                                      ---------------------    ---------------------
Cash flows from operating activities:
<S>                                                                              <C>                      <C>    
    Net Income                                                                   415,589                  562,889

    Adjustments   to  reconcile  net  income  to  net  cash  used  in  operating
    activities:
          Account's equity in earnings of unconsolidated
            joint ventures                                                       (546,976)                (598,261)
          Change in other assets                                                       --                    4,277
          Change in payable to IDS Life for operating expenses                     20,179                   16,851
          Change in accrued mortality and expense risk fee                         (1,185)                  32,505
          Change in accrued asset management fee                                   (1,480)                  40,632
          Change in payables and other liabilities related
            to wholly-owned real estate property                                       --                  (79,090)

                                                                      ---------------------    ---------------------
          Total adjustments to net income                                        (529,462)                (583,086)

                                                                      ---------------------    ---------------------
          Net cash used in operating activities                                  (113,873)                 (20,197)

                                                                      ---------------------    ---------------------

Cash flows from investing activities:
    Net sales (purchases) of short-term securities                               (199,421)                (339,382)
    Distributions received from joint ventures                                    590,680                  874,920

                                                                      ---------------------    ---------------------
          Net cash provided by investing activities                               391,259                  535,538

                                                                      ---------------------    ---------------------
Cash flows from financing activities:
    Proceeds from sales of contracts                                                2,402                    8,426
    Payments for contract terminations                                           (292,042)                (460,310)

                                                                      ---------------------    ---------------------
          Net cash used in financing activities                                  (289,640)                (451,884)

                                                                      ---------------------    ---------------------
Net increase in cash                                                              (12,254)                   63,457
Balance of cash at beginning of year                                               82,887                   23,647

                                                                      ---------------------    ---------------------
Balance of cash at end of period                                                   70,633                   87,104





See accompanying notes to financial statements.
</TABLE>



<PAGE>



                                                     IDS LIFE ACCOUNT RE
                                       of
                                                     IDS LIFE INSURANCE COMPANY

                                                          March 31, 1998

                                                   NOTES TO FINANCIAL STATEMENTS
                                                     (unaudited)

1.       GENERAL

         In  the  opinion  of  the  management  of IDS  Life,  the  accompanying
         unaudited financial  statements for IDS Life Account RE (the "Account")
         contain  all   adjustments   (consisting   of  only  normal   recurring
         adjustments) necessary to present fairly its balance sheets as of March
         31, 1998 and December 31, 1997;  statements of operations for the three
         months ended March 31, 1998 and 1997;  and the statements of cash flows
         for the three  months ended March 31, 1998 and 1997.  These  statements
         are condensed and therefore do not include all of the  information  and
         footnotes  required by generally  accepted  accounting  principles  for
         complete financial statement disclosure.  The statements should be read
         in conjunction  with the Account's  financial  statements as of and for
         the year ended December 31, 1997 and the notes thereto contained in the
         Account's  prospectus  dated April 30, 1998.  The results of operations
         for  the  three  months  ended  March  31,  1998  are  not  necessarily
         indicative of the results expected for the full year.


2.       INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

         Unconsolidated Joint Ventures - Summary Information

         Summary   information   for  the   Account   of  its   investments   in
unconsolidated joint ventures for the three months ended March 31, 1998 and 1997
is as follows:

                                             For the three months ended
                                                              March  31
                                                    1998          1997

      Account's share of net
       investment income from
       unconsolidated joint ventures        $        546,976           $ 598,261

      Total net investment income of
       unconsolidated joint ventures        $    6,671,524         $ 7,276,612

      Total income of unconsolidated
       joint ventures                $            12,093,000        $ 11,293,000




<PAGE>


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


Financial Condition and Results of Operations

For the Three Months Ended March 31, 1998 Compared to the 
Three Months Ended March 31, 1997 -

Net assets  increased  from  $28,499,851  at December 31, 1997 to $28,643,315 at
March 31,  1998.  During  this same time  period,  the  accumulation  unit value
increased  from  $1.04  to  $1.05.  The  Account  experienced  net  terminations
amounting  to $289,640 for the three  months  ended  March  31,  1998  compared
to net terminations  of $451,884 for the three  months  ended March 31,  1997. 
The net terminations  for the three months ended March 31, 1997  included  
approximately $1,100,000 for accumulation units purchased by IDS Life, which
have been used to pay for contract surrenders,  as discussed more fully below.
In the three months endeded March 31, 1998, IDS Life had not purchased any 
accumulation units.

Recorded  net income for the three  months  ended  March 31,  1998 was  $415,589
compared to $562,889 for the three months ended March 31, 1997.

Interest income represents income earned in 1998 on the Account's  investment in
short-term  securities.  Interest  generated  from  short-term  investments  was
$73,239 for the three months ended March 31, 1998. Interest income for the three
months ended March 31, 1997 was $138,137.

For the three months  ended March 31, 1998,  the  Account's  recorded  equity in
earnings  of  its  unconsolidated  joint  ventures  (N/S  Associates,   Monmouth
Associates and 1225 Connecticut) was $546,976 compared to $598,261 for the three
months  ended March 31,  1997.  The  decrease is due  primarily  to lower rental
income achieved at Northridge Mall due to lower effective rents.

Northridge Mall continues to be adversely  affected by the perception that it is
an unsafe place to shop.  This  perception  has resulted in declining  sales and
occupancy over a three-year  period.  Compounding the problem of declining sales
are the high  operating  costs for tenants at the mall.  Occupancy has also been
affected  by tenant  bankruptcies  over the past  years.  As of March 31,  1998,
occupancy of the mall shops was approximately 68%,  including  temporary tenants
under short term leases.

To  counter  the  negative   perception  of  Northridge   Mall,  N/S  Associates
implemented certain capital improvements and operational programs to improve the
shopping center's safety and appearance, as well as instituted certain marketing
and public relation efforts to enhance its image.  Certain recent positive sales
trends  appear to indicate a modest  improvement;  however,  elimination  of the
negative  perception is expected to take some time. In addition,  N/S Associates
is  seeking  to  increase  occupancy  at the  shopping  center  by  aggressively
marketing space for new and renewal tenants through leasing incentives,  as well
as  continuing  to cooperate  with  existing  tenants who need  short-term  rent
reductions  in order to retain  occupancy  of their  space.  Part of the leasing
strategy includes  targeting certain  well-recognized  retailers as a group that
would become  tenants at the shopping  center.  It is expected  that the draw of
this group of tenants would help the shopping  center gain leasing  momentum and
aid in future leasing efforts.

As of  March  31,  1998,  occupancy  of  Southridge  Mall  which is owned by N/S
Associates was approximately 94 %, including  temporary tenants under short-term
leases.

The Account paid asset  management  and mortality  expense risk fees of $175,430
and $204,146 for the three months ended March 31, 1998 and 1997, respectively.

Liquidity and Capital Resources

For the Three Months Ended March 31, 1998 Compared to the Three Months Ended 
March 31, 1997 -

At March 31, 1998, the Account had cash of approximately  $71,000 as compared to
approximately $83,000 at December 31, 1997.

The  liquidity  requirements  of the Account  have  generally  been met by funds
provided from the Account's  short-term  investments,  cash  distributions  from
unconsolidated  joint ventures,  operating cash flow, interest income,  proceeds
from the sale of West Springfield  Terrace  apartments,  the loan repayment from
Riverpoint  Center,  proceeds from sales of contracts,  and borrowings under the
line of credit from IDS Life and  purchases  of  accumulation  units by IDS Life
discussed  below.  The primary  uses of funds  currently  are expected to be for
asset  management  and mortality and expense risk fees and payments for contract
terminations and redemption units held by IDS Life.

Effective  May 1, 1995,  new contract  sales of the Account  were  discontinued.
Additional  purchase payments continue to be accepted for existing  contracts in
amounts  specified  in  the  Account's  prospectus,  whether  by  means  of  the
previously established bank authorizations or otherwise. Existing contracts also
continue to be serviced and surrender requests will be honored.

IDS Life has purchased  accumulation  units in order to maintain the Account and
its liquidity.  IDS Life made these payments so that no contract holder would be
disadvantaged because sales of new contracts have been discontinued. The initial
payments for accumulation units that IDS Life made into the Account were used to
pay off the amount that the Account had  borrowed  under its  revolving  line of
credit.  As of March 31, 1997, IDS Life had purchased  approximately  26,700,000
accumulation units.

By  purchasing  accumulation  units,  IDS Life has an ownership  interest in the
Account.  Since IDS Life does not  purchase  a  contract,  it is not  subject to
surrender  charges.   However,  IDS  Life,  as  holder  of  accumulation  units,
participates  in the  increase  or  decrease  in  the  value  of  the  Account's
investments just as other owners of accumulation  units do. IDS Life may realize
a gain or loss on its accumulation units when redeemed.

IDS Life currently expects to hold the accumulation units it purchases until the
surrender of all outstanding contracts or until the Account's liquidity improves
(through,  for example,  one or more sales of real estate  related  investments)
thereby permitting the Account to satisfy its anticipated contract  obligations.
Because IDS Life may purchase a significant  amount of accumulation  units,  IDS
Life may be subject to certain conflicts of interest it would not otherwise have
if it had not purchased such accumulation units, including,  among other things,
a conflict in approving  periodic  valuations of real estate investments made by
the Investment Adviser.

Since the Account has experienced substantial net contract terminations over the
past  several  years,  the Account  does not intend to acquire  additional  real
estate related investments.  During 1996, the Account liquidated two real estate
related  investments.  Further, the Account intends to liquidate the real estate
related  investments  that it currently  holds when it becomes  advantageous  or
necessary  to do so.  To the  extent  funds of the  Account  are not used to pay
obligations of the Account,  including  those under existing  contracts,  or the
redemption  of  accumulation  units  purchased  by IDS Life,  such funds will be
invested in short-term  debt  instruments and possibly  intermediate-term  bonds
with maturities of up to five years.

Through March 31, 1997, Monmouth Associates had funded approximately $25,905,000
of the renovation loan for Monmouth Mall. Fundings of principal on the loan have
been  made  from  cash  reserves  held by  Monmouth  Associates,  cash flow from
interest and ground rent payments received from the  borrower/lessee and capital
contributions  made to Monmouth  Associates  by its partners pro rata based upon
their respective  interests.  The aggregate  amount of capital  contributions to
finance  the loan is  approximately  $9,830,000.  The  Account's  share of these
capital  contributions  is approximately  $685,000.  The aggregate amount of the
renovation  loan,  including  accrued and  deferred  interest  of  approximately
$1,300,000,  is currently  expected to be approximately  $29,100,000.  Remaining
fundings  for the  renovation  loan are  expected  to be made from cash flow and
funds  currently held by Monmouth  Associates.  Monmouth  Associates may also be
required  to make  certain  additional  loans to pay a  portion  of the costs of
certain tenant improvements or other ordinary capital expenditures. In addition,
Monmouth  Associates may provide additional  financing to the borrower/lessee in
order to pay  costs to be  incurred  in  connection  with the  replacement  of a
department store tenant at Monmouth Mall.  However, it is not currently expected
that this would occur during 1998.

The renovation is nearing completion with tenant improvement work for one of the
larger  tenants and retainage  work  remaining.  The occupancy of mall shops and
outparcel  space at the shopping  center as of March 31, 1998 was  approximately
85%.  However,  the mall shops and outparcel space are approximately 91% leased.
Leasing and  occupancy at the shopping  center have been  adversely  affected by
tenant bankruptcies occurring over the past several years.

N/S Associates currently expects that it will incur approximately  $1,710,000 in
1998 for  tenant  improvement,  asbestos  removal  and  other  capital  items at
Northridge  and  Southridge  Malls.  Actual  amounts  expended  in 1998 may vary
depending on a number of factors,  including actual leasing activity, results of
property  operations,  liquidity  considerations  and market conditions over the
course of the year. N/S Associates undertakes asbestos removal from time to time
at portions of the Northridge and Southridge  Malls as tenant spaces are vacated
and prior to occupancy by new tenants. The cost of tenant improvements, asbestos
removal and other  capital  items  generally  will be provided out of cash flows
from the properties. N/S Associates expended approximately $1,629,000 for tenant
improvements, asbestos removal and other capital projects in 1997.

In the first quarter of 1998, N/S  Associates has selected a third-party  broker
and has started  marketing the Northridge and Southridge Malls for sale. 
However, there can be no assurance that a sale of either of these malls will be
consumated.

At March 31, 1998, real property  investments  (through two unconsolidated joint
ventures, N/S Associates and 1225 Connecticut),  land sale-leaseback investments
(through an unconsolidated  joint venture,  Monmouth  Associates) and short-term
investments represented 50.4 percent, 30.2 percent and 19.4 percent of total
assets, respectively. At March 31, 1997, real property  investments, mortgage 
loan and land sale-leaseback investments and short-term investments represented
50.4 percent, 30.2 percent and 19.4 percent of total assets, respectively.


<PAGE>



                      PART II.  OTHER INFORMATION
                      ---------------------------

Item 1. LEGAL PROCEEDINGS

        There are no material  current or pending  legal  proceedings  which the
Registrant is a party to, or to which the Registrant's assets are subject.

Item 2. CHANGES IN SECURITIES

        Not applicable

Item 3. DEFAULTS UPON SENIOR SECURITIES

        Not applicable

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

        Not applicable

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

        (A) Exhibits

            4.1  Form  of   Deferred   Variable   Annuity   Contract  is  hereby
incorporated  herein by  reference  to Exhibit 4 to the  Account's  Form S-1 (as
amended), File Number 33-13375, filed July 17, 1987.

            4.2 Copy of mortgage  loan  documents  relating to West  Springfield
Terrace Apartments is hereby  incorporated herein by reference to Exhibit 4.2 to
the Account's Form S-1 (as amended), File Number 33-13375, filed April 12, 1990.

            4.3 Copy of the line of  credit  agreement,  dated  March  30,  1994
between IDS Life and the Account  (including a copy of the  executed  promissory
note,  dated March 30, 1994) is hereby  incorporated by reference to Exhibit 4.3
to the  Account's  Form 10-K Report for the year ended  December 31, 1993,  File
Number 33-13375, filed April 5, 1994.

           10.1 Copy of Investment  Advisory  Agreement between IDS Life and JMB
Annuity Advisors is hereby  incorporated  herein by reference to Exhibit 10.1 to
the Account's Form S-1 (as amended), File Number 33-13375, filed April 29, 1988.

           10.2 Copy of N/S  Associates  Joint Venture  Agreement  together with
certain documents  relating to the purchase of an interest in Northridge Mall is
hereby  incorporated  herein by reference to Exhibit 10.2 to the Account's  Form
S-1 (as amended), File Number 33-13375, filed April 29, 1988.

           10.2.1 Copy of Second Amended and Restated Articles of Partnership of
N/S Associates hereby  incorporated herein by reference to Exhibit 10.2.1 to the
Account's Form
           S-1 (as amended), File Number 33-13375, filed April 20, 1989.

           10.3 Copy of N/S  Associates  Joint Venture  Agreement  together with
certain documents  relating to the purchase of an interest in Southridge Mall is
hereby  incorporated  herein  by  reference  to  Exhibit  10.3 to  Form  S-1 (as
amended), File Number 33-13375, filed April 29, 1988.

           10.4  Copy  of  Commitment  Letter  relating  to  the  funding  of  a
participating  mortgage loan secured by Riverpoint Center is hereby incorporated
herein by  reference  to  Exhibit  10.4 to Form S-1 (as  amended),  File  Number
33-13375, filed October 11, 1988.

           10.5 Copy of Amended and Restated Articles of Partnership of Monmouth
Associates  are hereby  incorporated  herein by reference to Exhibit 10.5 to the
Account's Form S-1 (as amended), File Number 33-13375, filed April 12, 1990.

           10.6 Copy of Agreement together with certain other documents relating
to the purchase of West Springfield  Terrace  Apartments is hereby  incorporated
herein by  reference  to  Exhibit  10.6 to Form S-1 (as  amended),  File  Number
33-13375, filed October 16, 1989.

            10.7 Copy of Agreement  together with certain documents  relating to
the purchase of an interest in 1225  Connecticut  Avenue is hereby  incorporated
herein  by  reference  to the  Account's  Form  S-1 (as  amended),  File  Number
33-13375, filed June 29, 1990.

            10.8 Copy of Purchase Agreement for the sale of the West Springfield
Terrace  Apartments is hereby  incorporated  herein by reference to the Accounts
Report on Form 10-Q (File No.  33-13375) for  September 30, 1996 dated  November
14, 1996.

            27.1 Financial Data Schedule of the Account for the period ended 
March 31, 1998 is filed herewith.

          (B) Report on Form 8-K

          No reports on Form 8-K were required to be filed by the Registrant for
the three months ended March 31, 1998.


<PAGE>



                           SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


                         IDS LIFE ACCOUNT RE
                                 of
                      IDS LIFE INSURANCE COMPANY
                      ------------------------------
                             (Registrant)




Date:  May 13, 1998                       /S/ Stuart Sedlacek
                                         --------------------
                                                            Stuart A. Sedlacek
                                                Executive Vice President
                                                        and Controller