<PAGE>

                                   UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q


Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 
1934

(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, 1997

                                       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 33-28976

                           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) 671-1257
                                                            --------------

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 such  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 ___

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND
(b) OF  FORM  10-Q  AND  IS  THEREFORE  FILING  THIS  FORM  WITH  THE  PERMITTED
ABBREVIATED NARRATIVE DISCLOSURE.


<PAGE>


                           IDS LIFE INSURANCE COMPANY

                                    FORM 10-Q

                      For the Quarter Ended March 31, 1997

                                Table of Contents

PART I - FINANCIAL INFORMATION                                         Page
                                                                       ----
         Item 1.  Financial Statements

                  Consolidated Balance Sheets as of
                  March 31, 1997 (unaudited) and
                  December 31, 1996                                   3 - 4

                  Consolidated Statements of Income for the
                  three months ended March 31, 1997 and 1996
                  (unaudited)                                           5

                  Consolidated Statements of Cash Flows for the
                  three months ended March 31, 1997 and 1996
                  (unaudited)                                         6 - 7

                  Notes to Consolidated Financial Statements
                  (unaudited)                                         8 - 9

         Item 2.  Management's Discussion and Analysis of
                  Consolidated Financial Condition and
                  Results of Operations                              10 - 12

PART II - OTHER INFORMATION                                             13

SIGNATURES                                                              14

<PAGE>


                                              IDS LIFE INSURANCE COMPANY
                                              CONSOLIDATED BALANCE SHEETS
                                                     ($ thousands)

<TABLE>
<CAPTION>
                                                                             March 31,                 December 31,
ASSETS                                                                         1997                        1996
                                                                         ------------------        ---------------------
                                                                            (unaudited)
<S>                                                                            <C>                          <C>      
Investments:
    Fixed Maturities:
        Held to maturity, at amortized cost (Fair value:
            1997, $10,089,364; 1996,$10,521,650)                               $10,002,346                  $10,236,379
        Available for sale, at fair value (Amortized cost:
            1997, $11,553,065; 1996, $11,008,622)                               11,479,554                   11,146,845
                                                                         ------------------        ---------------------

                                                                                21,481,900                   21,383,224

    Mortgage loans on real estate                                                3,517,454                    3,493,364
    Policy loans                                                                   465,953                      459,902
    Other investments                                                              292,645                      251,465
                                                                         ------------------        ---------------------

                     Total investments                                          25,757,952                   25,587,955

Cash and cash equivalents                                                          204,971                      224,603

Amounts recoverable from reinsurers                                                168,297                      157,722

Amounts due from brokers                                                             2,847                       11,047

Other accounts receivable                                                           43,036                       44,089

Accrued investment income                                                          339,983                      343,313

Deferred policy acquisition costs                                                2,376,726                    2,330,805

Deferred income taxes                                                              104,823                       33,923

Other assets                                                                        36,175                       37,364

Separate account assets                                                         18,412,971                   18,535,160
                                                                         ------------------        ---------------------

                     Total assets                                              $47,447,781                  $47,305,981
                                                                         ==================        =====================
</TABLE>

<PAGE>


                                              IDS LIFE INSURANCE COMPANY
                                              CONSOLIDATED BALANCE SHEETS
                                        ($ thousands, except per share amount)
                                                      (continued)


<TABLE>
<CAPTION>
                                                                             March 31,                 December 31,
LIABILITIES AND STOCKHOLDER'S EQUITY                                           1997                        1996
                                                                         ------------------        ---------------------
                                                                            (unaudited)
<S>                                                                            <C>                          <C>        
Liabilities:
    Future policy benefits:
        Fixed annuities                                                        $21,926,135                  $21,838,008
        Universal life-type insurance                                            3,208,625                    3,177,149
        Traditional life insurance                                                 210,489                      209,685
        Disability income and
            long-term care insurance                                               447,859                      424,200
    Policy claims and other
        policyholders' funds                                                        90,603                       83,634
    Amounts due to brokers                                                         378,955                      261,987
    Other liabilities                                                              384,215                      332,078
    Separate account liabilities                                                18,412,971                   18,535,160
                                                                         ------------------        ---------------------

                     Total liabilities                                          45,059,852                   44,861,901
                                                                         ------------------        ---------------------

Stockholder's equity:
    Capital stock, $30 par value per share;
        100,000 shares authorized, issued and outstanding                            3,000                        3,000
    Additional paid-in capital                                                     283,615                      283,615
    Net unrealized gain (loss) on investments                                      (45,619)                      86,102
    Retained earnings                                                            2,146,933                    2,071,363
                                                                         ------------------        ---------------------

                     Total stockholder's equity                                  2,387,929                    2,444,080
                                                                         ------------------        ---------------------

Total liabilities and stockholder's equity                                     $47,447,781                  $47,305,981
                                                                         ==================        =====================
</TABLE>

                                 See accompanying notes.
<PAGE>

                                              IDS LIFE INSURANCE COMPANY
                                           CONSOLIDATED STATEMENTS OF INCOME
                                                     ($ thousands)
                                                      (unaudited)
<TABLE>
<CAPTION>

                                                                                       Three months ended
                                                                                           March 31,
                                                                               1997                        1996
                                                                         ------------------        ---------------------
<S>                                                                              <C>                          <C>    
Revenues:
    Premiums:
        Traditional life insurance                                               $  13,078                    $  12,440
        Disability income and
          long-term care insurance                                                  37,349                       31,639
                                                                         ------------------        ---------------------
                     Total premiums                                                 50,427                       44,079

    Policyholder and contractholder charges                                         82,893                       71,453
    Management and other fees                                                       76,540                       62,602
    Net investment income                                                          494,604                      493,830
    Net realized gain (loss) on investments                                         (5,258)                       2,492
                                                                         ------------------        ---------------------
                     Total revenues                                                699,206                      674,456
                                                                         ------------------        ---------------------

Benefits and expenses:
    Death and other benefits:
        Traditional life insurance                                                   5,723                        7,223
        Universal life-type insurance
            and investment contracts                                                21,329                       23,625
        Disability income and
            long-term care insurance                                                 5,016                        4,301
    Increase (decrease) in liabilities for
        future policy benefits:
            Traditional life insurance                                                 574                         (246)
            Disability income and
               long-term care insurance                                             13,353                       14,616
    Interest credited on universal life-type
        insurance and investment contracts                                         346,904                      338,075
    Amortization of deferred policy
        acquisition costs                                                           76,730                       68,245
    Other insurance and operating expenses                                          47,677                       69,267
                                                                         ------------------        ---------------------
                     Total benefits and expenses                                   517,306                      525,106
                                                                         ------------------        ---------------------

Income before income taxes                                                         181,900                      149,350

Income taxes                                                                        61,330                       51,508
                                                                         ------------------        ---------------------

Net income                                                                       $ 120,570                     $ 97,842
                                                                         ==================        =====================
</TABLE>

                                                See accompanying notes.
<PAGE>

                                

                                              IDS LIFE INSURANCE COMPANY
                                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                     ($thousands)
                                                      (unaudited)
<TABLE>
<CAPTION>
                                                                                       Three months ended
                                                                                           March 31,
                                                                               1997                        1996
                                                                         ------------------        ---------------------
<S>                                                                               <C>                           <C>    
Cash flows from operating activities:
    Net income                                                                    $120,570                      $97,842
    Adjustments to reconcile net income to
        net cash provided by operating activities:
            Policy loans, excluding universal
               life-type insurance:
                  Issuance                                                         (12,205)                     (10,345)
                  Repayment                                                         10,800                        9,888
            Change in reinsurance receivable                                       (10,575)                     (11,011)
            Change in other accounts receivable                                      1,053                       (8,315)
            Change in accrued investment income                                      3,330                        6,682
            Change in deferred policy
               acquisition costs, net                                              (36,725)                     (58,647)
            Change in liabilities for future policy
               benefits for  traditional life,
               disability income and
               long-term care insurance                                             24,463                       23,826
            Change in policy claims and other
               policyholders' funds                                                  6,969                       20,123
            Change in deferred income taxes                                             28                      (17,150)
            Change in other liabilities                                             52,137                       96,613
            Accretion of discount, net                                              (2,701)                      (4,340)
            Net realized (gain) loss on investments                                  5,258                       (2,492)
            Policyholder and contractholder charges,
               non-cash                                                            (39,487)                     (37,500)
            Other, net                                                                 218                       (6,463)
                                                                         ------------------        ---------------------

               Net cash provided by operating activities                          $123,133                      $98,711
                                                                         ------------------        ---------------------
</TABLE>

<PAGE>



                                              IDS LIFE INSURANCE COMPANY
                                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                     ($ thousands)
                                                      (unaudited)
                                                      (continued)
<TABLE>
<CAPTION>
                                                                                       Three months ended
                                                                                           March 31,
                                                                               1997                        1996
                                                                         ------------------        ---------------------
<S>                                                                               <C>                        <C>     
Cash flows from investing activities:
    Fixed maturities held to maturity:
        Purchases                                                                 $      0                   $   (5,481)
        Maturities, sinking fund payments and calls                                205,803                      241,436
        Sales                                                                       29,789                       60,564
    Fixed maturities available for sale:
        Purchases                                                                 (946,213)                    (444,871)
        Maturities, sinking fund payments and calls                                247,601                      269,315
        Sales                                                                      155,972                      140,507
    Other investments, excluding policy loans:
        Purchases                                                                 (133,886)                    (264,621)
        Sales                                                                       63,557                       30,720
    Change in amounts due from broker                                                8,200                      (49,219)
    Change in amounts due to broker                                                116,968                       (4,467)
                                                                         ------------------        ---------------------

               Net cash used in investing activities                              (252,209)                     (26,117)
                                                                         ------------------        ---------------------

Cash flows from financing activities:
    Activity related to universal life-type insurance
     and investment contracts:
        Considerations received                                                    709,723                      992,081
        Surrenders and death benefits                                             (897,537)                  (1,386,055)
        Interest credited to account balances                                      346,904                      338,075
    Universal life-type insurance policy loans:
        Issuance                                                                   (23,572)                     (21,218)
        Repayment                                                                   18,926                       15,244
    Cash dividends to parent                                                       (45,000)                     (40,000)
                                                                         ------------------        ---------------------

               Net cash provided by (used in) financing activities                 109,444                     (101,873)
                                                                         ------------------        ---------------------

Net increase (decrease) in cash and cash equivalents                               (19,632)                     (29,279)

Cash and cash equivalents at beginning of period                                   224,603                       72,147
                                                                         ------------------        ---------------------

Cash and cash equivalents at end of period                                        $204,971                      $42,868
                                                                         ==================        =====================
</TABLE>

                                                  See accompanying notes.

<PAGE>

                           IDS LIFE INSURANCE COMPANY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                 March 31, 1997
                                  ($ thousands)
                                   (unaudited)

1.       General
         -------

         In the opinion of the  management  of IDS Life  Insurance  Company (the
         Company),  the accompanying unaudited consolidated financial statements
         contain all adjustments  (consisting of normal  recurring  adjustments)
         necessary  to present  fairly its balance  sheet as of March 31,  1997,
         statements of income for the three months ended March 31, 1997 and 1996
         and  statements of cash flows for the three months ended March 31, 1997
         and 1996.

         The Company is a wholly owned subsidiary of American Express  Financial
         Corporation  (AEFC)  which is a wholly  owned  subsidiary  of  American
         Express Company.  The accompanying  consolidated  financial  statements
         include the accounts of the Company and its wholly owned  subsidiaries,
         IDS Life  Insurance  Company  of New  York,  American  Enterprise  Life
         Insurance  Company,  American  Centurion  Life  Assurance  Company  and
         American  Partners Life Insurance  Company.  All material  intercompany
         accounts and transactions have been eliminated in consolidation.

2.       Nature of business
         ------------------

         The Company is engaged in the life insurance and annuity business.  The
         Company  sells  various  forms of fixed and  variable  individual  life
         insurance, group life insurance, individual and group disability income
         insurance, long-term care insurance, and single and installment premium
         fixed and variable annuities.

3.       Statements of cash flows
         ------------------------

         The Company considers  investments with a maturity at the date of their
         acquisition  of  three  months  or less to be cash  equivalents.  These
         securities are carried principally at amortized cost which approximates
         market value.

         Cash paid for  interest on  borrowings  totaled $319 and $1,172 for the
         three  months  ended March 31, 1997 and 1996,  respectively.  Cash paid
         (refunded) for income taxes totaled ($32,369) and $20,222 for the three
         months ended March 31, 1997 and 1996, respectively.


<PAGE>


                           IDS LIFE INSURANCE COMPANY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  ($ thousands)
                                   (unaudited)
                                   (continued)

4.       Commitments and contingencies
         -----------------------------

         At March 31, 1997, the Company had  commitments to purchase  affordable
         housing limited partnership  investments of $28,476,  which is recorded
         as a liability in the  accompanying  balance  sheets.  Commitments  for
         purchases of  investments  in the ordinary  course of business at March
         31, 1997 aggregated $192,830.

         The maximum  amount of risk  retained by the Company on any one life is
         $750 of life and  waiver of  premium  benefits  plus $50 of  accidental
         death  benefits.  The excesses are reinsured  with other life insurance
         companies on a yearly renewable term basis.

         A number of lawsuits have been filed  against life and health  insurers
         in  jurisdictions  in which the Company and AEFC do business  involving
         insurers'  sales  practices,  alleged  agent  misconduct,   failure  to
         properly  supervise  agents,  and other matters.  The Company and AEFC,
         like other life and health insurers,  from time to time are involved in
         such  litigation.  On  December  13,  1996,  an  action  entitled  Lesa
         Benacquisto and Daniel  Benacquisto vs. IDS Life Insurance  Company and
         American Express Financial Corporation was commenced in Minnesota state
         court.  The action is brought by  individuals  who replaced an existing
         Company  insurance  policy with a new Company  policy.  The  plaintiffs
         purport to  represent a class  consisting  of all persons who  replaced
         existing  Company  policies with new policies from and after January 1,
         1985. The complaint puts at issue various  alleged sales  practices and
         misrepresentations,  alleged  breaches of fiduciary  duties and alleged
         violations of consumer fraud  statutes.  Plaintiffs  seek damages in an
         unspecified  amount  and also  seek to  establish  a claims  resolution
         facility for the  determination of individual  issues.  The Company and
         AEFC filed an answer to the  Complaint  on February 18, 1997. A similar
         action  entitled  Mork and  Melchert,  et ux.  vs.  IDS Life  Insurance
         Company  involving  the  replacement  of  existing  IDS Life  insurance
         policies and annuity contracts was filed in the same court on March 21,
         1997.

         The Company is a defendant in various other lawsuits, none of which, in
         the  opinion  of  the  Company  counsel,  will  result  in  a  material
         liability.


<PAGE>

MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

Results of Operations
---------------------

Three Months Ended March 31, 1997 Compared to Three Months Ended March 31, 1996:

         Consolidated  net income  increased  23 percent to $121 million for the
three  months ended March 31,  1997,  compared to $98 million in 1996.  Earnings
growth resulted primarily from increases in management fees and policyholder and
contractholder charges,  partially offset by the impact of somewhat lower spread
rates. It is expected that spread rates will continue to decrease throughout the
year.

         Premiums received totaled $1.3 billion for the three months ended March
31,  1997,  compared  to $1.5  billion a year ago.  Increased  sales of variable
annuities and life insurance were offset by decreased sales of fixed  annuities,
reflecting current market conditions.

         Net investment income was $495 million for the three months ended March
31, 1997, a small  increase  from a year ago.  The  increase  reflects  slightly
higher total  investments of $26 billion at March 31, 1997,  partially offset by
lower yields.

         Policyholder and  contractholder  charges  increased to $83 million for
the three  months ended March 31,  1997,  compared  with $71 million a year ago.
This increase is primarily due to higher life insurance in force.

         Management and other fees increased to $77 million for the three months
ended March 31, 1997,  compared  with $63 million a year ago.  This is primarily
due to an increase in separate  account  assets,  which grew 17 percent over the
past 12 months to $18 billion at March 31, 1997, due to market  appreciation and
sales. The Company provides investment  management services for the mutual funds
which are used as  investment  options for variable  annuities and variable life
insurance.  The Company also  receives a mortality and expense risk fee from the
separate accounts.

         Total  benefits  and  expenses  were $517  billion for the three months
ended March 31,  1997,  a decrease  from a year ago.  The largest  component  of
expenses,  interest  credited on universal  life-type  insurance and  investment
contracts,  increased  to $347  million,  compared  with  $338  million  for the
corresponding  period in 1996. This is due to higher aggregate amounts in force.
Other insurance and operating expenses  decreased to $48 million,  compared with
$69 million for the corresponding  period in 1996. This is due to a reduction in
accrued expenses related to future guarantee fund assessments.



<PAGE>

Liquidity and Capital Resources
-------------------------------

         The  liquidity  requirements  of the Company are met by funds  provided
from  operations and investment  activity.  The primary  components of the funds
provided are premiums,  investment income, proceeds from sales of investments as
well as maturities and periodic repayments of investment principal.

         The  primary  uses  of  funds  are  policy  benefits,  commissions  and
operating  expenses,  policy loans,  new  investment  purchases and dividends to
parent.

         The Company has available  lines of credit with one bank and its parent
aggregating  $125 million of which $100 million is with its parent.  These lines
of credit are used strictly as short-term  sources of funds.  At March 31, 1997,
outstanding  borrowings  under these agreements were $nil. The Company also uses
reverse  repurchase  agreements  for  short-term  liquidity  needs.  Outstanding
reverse repurchase agreements totaled $6 million at March 31, 1997.

         At March 31, 1997,  approximately 8.2 percent of the Company's invested
assets were  below-investment-grade  bonds,  compared to 8.1 percent at December
31,  1996.  These  investments  may be subject  to a higher  degree of risk than
higher-rated  issues because of the borrowers'  generally greater sensitivity to
adverse economic conditions, such as recession or increasing interest rates, and
in certain instances the lack of an active secondary market. Expected returns on
below-investment-grade  bonds reflect consideration of such factors. The Company
has  identified  those  fixed  maturities  for which a decline  in fair value is
determined to be other than  temporary,  and has written them down to fair value
with a charge to earnings.

         At March 31, 1997, net unrealized  depreciation on investments in fixed
maturities  increased  due to an  increase in  interest  rates  during the first
quarter of 1997.  For the three  months  ended  March 31,  1997,  sales of fixed
maturities  held  to  maturity  were  due to  significant  deterioration  in the
issuers' creditworthiness.

         At March 31, 1997,  the Company had an allowance for losses on mortgage
loans of $42 million.

         The Company  paid $45  million in  dividends  to its parent  during the
three months ended March 31, 1997.


<PAGE>


         The economy and other  factors have caused an increase in the number of
insurance companies that are under regulatory supervision. This circumstance has
resulted  in  assessments  by state  guaranty  associations  to cover  losses to
policyholders of insolvent or rehabilitated  companies.  Some assessments can be
partially  recovered  through a  reduction  in future  premium  taxes in certain
states.   The  Company  has  established  an  asset  for  guaranty   association
assessments  paid to those states  allowing a reduction in future  premium taxes
over a reasonable  period of time. The asset will be amortized as future premium
taxes  are  reduced.  The  Company  has also  estimated  the  effect  of  future
assessments  on the Company's  financial  position and results of operations and
has established a reserve for such assessments.


<PAGE>
PART II - OTHER INFORMATION

Item 1.           LEGAL PROCEEDINGS

                  Reference  is  made  to Note 4 of the  Notes  to  Consolidated
                  Financial Statements (unaudited) contained in the Report filed
                  on Form 10-Q for the quarterly period ended March 31, 1997.

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 5.           OTHER INFORMATION

                  Not applicable.

Item 6.           EXHIBITS AND REPORTS ON FORM 8-K

                  Not applicable.

No reports on Form 8-K were  required  to be filed by the  Company for the three
months ended March 31, 1997.

<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.

REGISTRANT                               IDS LIFE INSURANCE COMPANY

BY                                       /s/ Melinda S. Urion
                                         ------------------------------------

NAME AND TITLE                           Melinda S. Urion
                                         Executive Vice President and Controller

DATE                                     May 12, 1997