<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 June 30, 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>

                                                                                       June 30,                       December 31,
                                                                                          1998                               1997
                                                                                    (Unaudited)
                                                                                 --------------                  ----------------
Assets:
<S>                                                                               <C>                            <C> 
    Cash                                                                          $         88,686               $         82,887
    Investments in securities, at value (Note 1)
         (identified cost of $1,296,013 and $5,282,201
         at June 30, 1998 and December 31, 1997,
         respectively)                                                                   5,083,039                      5,282,201
    Investments in unconsolidated joint ventures,
         at fair value (cost of $36,245,210 and
         $36,218,770 at June 30, 1998
         and December 31, 1997, respectively)                                           23,161,203                     23,134,763

                                                                                   ----------------                --------------
              Total assets                                                        $     28,332,928               $     28,499,851
                                                                                   ================                ===============

Liabilities:
    Payable to IDS Life for:
         Operating expenses                                                       $        100,831               $        72,008
         Contract terminations                                                                   -                        22,567 
Accrued mortality and expense risk fee                                                      27,531                        28,961
Accrued asset management fee                                                                34,414                        36,200

                                                                                   ----------------               --------------
              Total liabilities                                                   $        162,776               $       159,736
                                                                                   ================               ==============

Contract Owners' Equity:
    Net assets applicable to Variable Annuity
         contracts in accumulation period                                         $     28,170,152              $     28,340,115
                                                                                  =================               ==============

Accumulation units outstanding                                                          26,384,346                    27,339,211
                                                                                  =================               ==============

Net asset value per accumulation unit                                                        $1.07                         $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

                                                                                   --------------------         --------------------
                                                                                        June 30,                     June 30,
                                                                                          1998                         1997
                                                                                   --------------------         --------------------
Income:                                                                           <C>                           <C>
<S>
     Interest income                                                             $              73,224      $               141,708
     Account's equity in earnings of
           unconsolidated joint ventures                                                       539,323                      592,603
                                                                                   --------------------         --------------------

                 Total income                                                    $             612,547      $               734,311
                                                                                   --------------------         --------------------

Expenses:
     Asset management fee                                                        $              98,438      $               113,845
     Mortality and expense risk fee                                                             78,750                       91,075
     Other operating expenses                                                                   12,436                        3,721
                                                                                   --------------------         --------------------

                 Total expenses                                                  $             189,624      $               208,641
                                                                                   --------------------         --------------------

Net income                                                                       $             422,923      $               525,670
                                                                                   ====================         ====================

See accompanying notes to financial statements.
</TABLE>

<PAGE>



                                                       IDS LIFE ACCOUNT RE
                                                                of
                                                 IDS LIFE INSURANCE COMPANY

                                                  STATEMENTS OF OPERATIONS
                                                           (Unaudited)


<TABLE>
                                                                                                 For the six months ended

                                                                                  -----------------------       -------------------
                                                                                          June 30,                     June 30,
                                                                                            1998                         1997
                                                                                  -----------------------       -------------------
Income:
<S>                                                                              <C>                              <C>
     Interest income                                                               $               146,462     $           279,853
     Account's equity in earnings of
           unconsolidated joint ventures                                                         1,086,300               1,190,864
     Other income                                                                                       --                  54,258
                                                                                   -----------------------      -------------------

                 Total income                                                     $              1,232,762     $         1,524,975
                                                                                  -------------------------    --------------------


Expenses:
     Asset management fee                                                                          195,899                  227,259
     Mortality and expense risk fee                                                                156,719                  181,807
     Other operating expenses                                                                       41,632                   27,350
                                                                                  -------------------------       -----------------

                 Total expenses                                               $                    394,250     $            436,416
                                                                                  -------------------------       -----------------


Net income                                                                    $                    838,512     $          1,088,559
                                                                                  =========================       =================


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 six months ended
                                                                                          June 30,                    June 30,
                                                                                            1998                        1997
                                                                                   -------------------------   --------------------
 Cash flows from operating activities:
<S>                                                                                 <C>                                 <C>
     Net Income                                                                      $               838,512   $          1,088,559

     Adjustments to reconcile net income to net cash  used  in  operating
     activities:
           Account's equity in earnings of unconsolidated
             joint ventures                                                                       (1,086,300)            (1,190,864)
           Change in other assets                                                                         --                  4,277
           Change in payable to IDS Life for operating expenses                                       28,823                (25,934)
           Change in accrued mortality and expense risk fee                                           (1,430)                (2,402)
           Change in accrued asset management fee                                                     (1,786)                (3,002)
           Change in payables and other liabilities related
             to wholly-owned real estate property                                                         --                (79,090)
                                                                                         --------------------     ------------------
           Total adjustments to net income                                                        (1,060,693)            (1,297,015)
                                                                                         --------------------     ------------------
           Net cash used in operating activities                                                    (222,181)              (208,456)
                                                                                         --------------------     ------------------

Cash flows from investing activities:
     Net sales (purchases) of short-term securities                                                  199,162              1,471,217
     Distributions received from joint ventures                                                    1,059,860              1,322,170
                                                                                         ---------------------   -------------------
           Net cash provided by investing activities                                               1,259,022              2,793,387
                                                                                         ---------------------   -------------------

Cash flows from financing activities:
     Proceeds from sales of contracts                                                                  3,054                 14,077
     Payments for contract terminations                                                           (1,034,096)            (2,565,222)
                                                                                         ---------------------   -------------------
           Net cash used in financing activities                                                  (1,031,042)            (2,551,145)
                                                                                         ---------------------   -------------------

Net increase in cash                                                                                   5,799                 33,786
Balance of cash at beginning of year                                                                  82,887                102,737
                                                                                         ---------------------   -------------------
Balance of cash at end of period                                                     $                88,686      $         136,523

Supplemental cash flow disclosure:
     Cash paid for mortgage interest & revolving loan                                $                    --      $              --
                                                                                         ======================   ==================

See accompanying notes to financial statements.
</TABLE>

<PAGE>


                                                       IDS LIFE ACCOUNT RE
                                                              of
                                                  IDS LIFE INSURANCE COMPANY

                                                         June 30, 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 June 30, 1998 and  December  31,  1997;  statements  of
            operations  for the three and six  months  ended  June 30,  1998 and
            1997; and the statements of cash flows for the six months ended June
            30, 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
            six months ended June 30, 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 six  months  ended  June 30,  1998 and 1997 is as
      follows:

                                            For the six months ended
                                                    June 30 
                                              1998           1997
                                              ----           ----

      Account's share of net
       investment income from
       unconsolidated joint ventures     $  1,086,300        $  1,190,864

      Total net investment income of
       unconsolidated joint ventures     $ 13,294,951        $ 14,426,910

      Total income of unconsolidated 
      joint ventures                     $ 22,772,000        $ 22,986,000




<PAGE>


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


Financial Condition and Results of Operations

For the Six Months  Ended June 30, 1998 Compared to the Six Months Ended
June 30, 1998 -

Net assets  decreased  from  $28,499,851  at December 31, 1997 to $28,332,928 at
June 30,  1998.  During  this same time  period,  the  accumulation  unit  value
increased  from  $1.04  to  $1.07.  The  Account  experienced  net  terminations
amounting to  $1,031,043  for the six months ended June 30, 1998 compared to net
terminations  of  $2,551,145  for the six months ended June 30, 1997. In the six
months ended June 30, 1998 and the six months ended June 30, 1997,  IDS Life had
not purchased any accumulation units.

Recorded net income for the six months ended June 30, 1998 was $838,512 compared
to $1,088,559 for the six months ended June 30, 1997.

Interest income represents income earned in 1998 on the Account's  investment in
short-term  securities.  Interest  generated  from  short-term  investments  was
$146,464  for the six months ended June 30,  1998.  Interest  income for the six
months  ended June 30,  1997 was  $279,853.  Interest  income for the six months
ended  June 30,  1998  compared  to the six months  ended June 30,  1997 was due
primarily to an increase in the average  short-term  balance in 1997. Short term
investments  decreased  towards  the end of 1997 due  primarily  to net  account
terminations as discussed below.

For the six  months  ended  June 30,  1998,  the  Account's  recorded  equity in
earnings  of  its  unconsolidated  joint  ventures  (N/S  Associates,   Monmouth
Associates and 1225  Connecticut) was $1,086,300  compared to $1,190,864 for the
six months  ended June 30, 1997.  The decrease is due  primarily to lower rental
income achieved at Southridge and Northridge Malls 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 June 30,  1998,
occupancy of the mall shops was approximately 59%,  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 June  30,  1998,  occupancy  of  Southridge  Mall  which  is  owned by N/S
Associates was approximately 88%,  including  temporary tenants under short-term
leases.

The Account paid asset  management  and mortality  expense risk fees of $352,618
and $409,066 for the six months ended June 30, 1998 and 1997, respectively.



Liquidity and Capital Resources

For the Three Months Ended June 30, 1998 Compared to the Three Months Ended 
June 30, 1997 -

At June 30, 1998, the Account had cash of  approximately  $89,000 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 June 30, 1998,  IDS Life had purchased  approximately  26,400,000
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 June 30, 1998, 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 June 30, 1998 was  approximately
86%.  However,  the mall shops and outparcel space are approximately 90% 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  $1,605,000 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 is marketing the Northridge and Southridge Malls.  However,  there can be no
assurance that a sale of either of these malls will be consumated.

The 1225 investment corporation has committed to a plan to sell the property and
during  the  second  quarter  of 1998 began  marketing  the  property  for sale.
However,  there can be no assurance that a sale  transaction on acceptable terms
will be consumated.

At June 30, 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 51 percent, 30.6 percent and 18 percent of total assets,
respectively.  At June 30, 1997,  real property  investments,  mortgage loan and
land  sale-leaseback  investments  and  short-term  investments  represented  45
percent, 27 percent and 28 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 June 30,
      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
      six months ended June 30, 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:  August 14, 1998                       /S/ Stuart Sedlacek
                                            --------------------
                                             Stuart A. Sedlacek
                                          Executive Vice President
                                             and Controller