<PAGE>

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

                                  FORM 10-Q

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

                FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2006

                                     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 Identification No.)
 incorporation or organization)

55 AMERIPRISE FINANCIAL CENTER, MINNEAPOLIS, MINNESOTA               55474
       (Address of principal executive offices)                    (Zip Code)

     Registrant's telephone number, including area code (612) 671-3131

                                    NONE
           (Former name, former address and former fiscal year, if
                        changed since last report.)

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 |_|

Indicate by check mark whether the registrant is a large accelerated filer,
an accelerated filer, or a non-accelerated filer. See definition of
"accelerated filer and large accelerated filer" in Rule 12b-2 of the
Exchange Act.

 Large accelerated filer |_| Accelerated filer |_| Non-accelerated filer |X|

Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act).
                                                              Yes |_| No |X|

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

                      CLASS                       OUTSTANDING AT MAY 9, 2006
------------------------------------------------- --------------------------
     Common Stock (par value $30 per share)             100,000 shares

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS H(1)
(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED
DISCLOSURE FORMAT.



<PAGE>
<PAGE>


<TABLE>
                                                 IDS LIFE INSURANCE COMPANY

                                                          FORM 10-Q

                                                            INDEX

<CAPTION>
                                                                                                                       PAGE NO.
                                                                                                                       --------
<C>                                                                                                                     <C>
Part I.  Financial Information:

         Item 1.   Financial Statements

                   Consolidated Balance Sheets - March 31, 2006 and December 31, 2005..................................     1

                   Consolidated Statements of Income - Three Months Ended March 31, 2006 and 2005......................     2

                   Consolidated Statements of Cash Flows - Three Months Ended March 31, 2006 and 2005..................     3

                   Consolidated Statements of Stockholder's Equity - Three Months Ended March 31, 2006 and 2005........     4

                   Notes to Consolidated Financial Statements..........................................................   5-8

         Item 2.   Management's Discussion and Analysis................................................................  9-12

         Item 4.   Controls and Procedures............................................................................. 13-14

Part II. Other Information:

         Item 1.   Legal Proceedings...................................................................................    14

         Item 1A.  Risk Factors........................................................................................    14

         Item 5.   Other Information...................................................................................    14

         Item 6.   Exhibits............................................................................................    14

         Signatures....................................................................................................    15

         Exhibit Index.................................................................................................   E-1
</TABLE>



<PAGE>
<PAGE>


<TABLE>
PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS

                                                   IDS LIFE INSURANCE COMPANY

                                                   CONSOLIDATED BALANCE SHEETS
                                              (in thousands, except share amounts)

<CAPTION>

                                                                                                 MARCH 31,         DECEMBER 31,
                                                                                                   2006               2005
                                                                                              ---------------    ---------------
                                                                                                (UNAUDITED)

<C>                                                                                            <C>                <C>
ASSETS
Investments:
Available-for-Sale:
   Fixed maturities, at fair value (amortized cost: 2006, $27,624,166; 2005, $27,817,021)      $  27,093,965      $  27,753,174
   Common stocks, at fair value (cost: 2006 and 2005, $13)...............................                 24                 21
Mortgage loans on real estate, at cost (less allowance for loan losses: 2006, $37,347;
   2005, $41,347)........................................................................          2,805,244          2,842,362
Policy loans.............................................................................            610,960            605,212
Trading securities and other investments.................................................            517,499            547,668
                                                                                              ---------------    ---------------
         Total investments...............................................................         31,027,692         31,748,437

Cash and cash equivalents................................................................             39,403            233,589
Reinsurance recoverables.................................................................          1,013,263            982,521
Amounts due from brokers.................................................................              3,015              4,166
Other accounts receivable................................................................             47,735             62,930
Accrued investment income................................................................            326,425            328,567
Deferred acquisition costs...............................................................          4,145,050          4,035,879
Deferred sales inducement costs..........................................................            393,938            370,166
Deferred income tax assets, net..........................................................            124,017                  -
Other assets.............................................................................            236,008            220,371
Separate account assets..................................................................         41,247,882         37,929,960
                                                                                              ---------------    ---------------
  Total assets...........................................................................      $  78,604,428      $  75,916,586
                                                                                              ===============    ===============
LIABILITIES AND STOCKHOLDER'S EQUITY
LIABILITIES:
Future policy benefits:
   Fixed annuities.......................................................................      $  25,528,620      $  26,126,068
   Variable annuity guarantees...........................................................             17,788             29,550
   Universal life insurance..............................................................          3,705,181          3,711,628
   Traditional life insurance............................................................            305,705            298,479
   Disability income and long-term care insurance........................................          2,216,833          2,145,969
Policy claims and other policyholders' funds.............................................             82,087             90,233
Amounts due to brokers...................................................................             31,296             31,772
Deferred income tax liabilities, net.....................................................                  -              9,099
Other liabilities........................................................................            460,214            381,938
Separate account liabilities.............................................................         41,247,882         37,929,960
                                                                                              ---------------    ---------------
  Total liabilities......................................................................         73,595,606         70,754,696
                                                                                              ---------------    ---------------
STOCKHOLDER'S EQUITY:
Capital stock, $30 par value;
  100,000 shares authorized, issued and outstanding......................................              3,000              3,000
Additional paid-in capital...............................................................          2,020,388          2,020,388
Retained earnings........................................................................          3,381,105          3,269,206
Accumulated other comprehensive loss, net of tax.........................................           (395,671)          (130,704)
                                                                                              ---------------    ---------------
  Total stockholder's equity.............................................................          5,008,822          5,161,890
                                                                                              ---------------    ---------------
  Total liabilities and stockholder's equity.............................................      $  78,604,428      $  75,916,586
                                                                                              ===============    ===============


                                        See Notes to Consolidated Financial Statements.
</TABLE>


                                     1

<PAGE>
<PAGE>


<TABLE>
                                                   IDS LIFE INSURANCE COMPANY

                                          CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                                                         (in thousands)
<CAPTION>

                                                                                                   THREE MONTHS ENDED
                                                                                                        MARCH 31,
                                                                                         ---------------------------------------
                                                                                               2006                   2005
                                                                                         ----------------      -----------------
<C>                                                                                       <C>                   <C>
REVENUES
   Premiums:
     Traditional life insurance......................................................     $       18,164        $        17,490
     Disability income and long-term care insurance..................................             74,343                 71,343
                                                                                         ----------------      -----------------
         Total premiums..............................................................             92,507                 88,833

   Net investment income.............................................................            444,475                458,788
   Contractholder and policyholder charges...........................................            152,408                143,057
   Mortality and expense risk and other fees.........................................            146,272                114,778
   Net realized gain on investments..................................................              5,839                    194
                                                                                         ----------------      -----------------

         Total revenues..............................................................            841,501                805,650
                                                                                         ----------------      -----------------

BENEFITS AND EXPENSES
   Death and other benefits:
     Traditional life insurance......................................................              5,418                 12,069
     Investment contracts and universal life-type insurance..........................             57,013                 52,287
     Disability income and long-term care insurance..................................             20,748                 17,177
   Increase (decrease) in liabilities for future policy benefits:
     Traditional life insurance......................................................               (219)                   938
     Disability income and long-term care insurance..................................             42,171                 29,597
   Interest credited to account values...............................................            269,551                273,262
   Amortization of deferred acquisition costs........................................            105,285                 99,082
   Separation costs..................................................................             24,607                      -
   Other insurance and operating expenses............................................            156,854                137,524
                                                                                         ----------------      -----------------
         Total benefits and expenses.................................................            681,428                621,936
                                                                                         ----------------      -----------------
Income before income tax provision...................................................            160,073                183,714
Income tax provision.................................................................             48,174                 58,173
                                                                                         ----------------      -----------------
Net income...........................................................................     $      111,899        $       125,541
                                                                                         ================      =================

                                         See Notes to Consolidated Financial Statements.
</TABLE>


                                     2

<PAGE>
<PAGE>


<TABLE>
                                                  IDS LIFE INSURANCE COMPANY

                                       CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                                        (in thousands)
<CAPTION>

                                                                                                    THREE MONTHS ENDED
                                                                                                         MARCH 31,
                                                                                             -----------------------------------
                                                                                                   2006               2005
                                                                                             ---------------     ---------------
<C>                                                                                           <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income...............................................................................     $     111,899       $     125,541
Adjustments to reconcile net income to net cash provided by (used in)
 operating activities:
  Amortization of deferred acquisition costs.............................................           105,285              99,082
  Amortization of deferred sales inducement costs........................................            11,285               9,633
  Capitalization of deferred acquisition costs...........................................          (172,463)           (141,538)
  Capitalization of deferred sales inducement costs......................................           (27,703)            (20,657)
  Amortization of premium, net...........................................................            18,460              22,719
  Deferred income taxes..................................................................             9,558              43,394
  Policyholder and contractholder charges, non-cash......................................           (55,164)            (57,584)
  Net realized gain on investments.......................................................            (5,839)               (194)
  Net realized gain on trading securities and equity method investments in hedge funds...           (21,201)             (8,971)
Change in operating assets and liabilities:
  Trading securities and equity method investments in hedge funds, net...................            68,928              63,236
  Future policy benefits for traditional life, disability income and long-term care
     insurance...........................................................................            78,090              59,337
  Policy claims and other policyholders' funds...........................................            (8,146)              7,862
  Policy loans, excluding universal life-type insurance:
     Repayment...........................................................................             8,573               8,799
     Issuance............................................................................            (9,027)             (8,856)
  Reinsurance recoverables...............................................................           (30,742)            (33,891)
  Other accounts receivable..............................................................            15,195              (4,790)
  Accrued investment income..............................................................             2,142              (7,030)
  Other assets and liabilities, net......................................................            52,678              40,529
                                                                                             ---------------     ---------------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES......................................           151,808             196,621
                                                                                             ---------------     ---------------

CASH FLOWS FROM INVESTING ACTIVITIES
Available-for-Sale securities:
  Proceeds from sales....................................................................           396,056             547,237
  Maturities, sinking fund payments and calls............................................           595,209             428,245
  Purchases..............................................................................          (810,097)           (864,336)
Other investments, excluding policy loans:
  Proceeds from sales, maturities, sinking fund payments and calls.......................           148,670              98,233
  Purchases..............................................................................          (128,756)            (99,298)
Change in amounts due to and from brokers, net...........................................               675            (121,775)
Change in restricted cash................................................................                 -             (40,264)
                                                                                             ---------------     ---------------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES......................................           201,757             (51,958)
                                                                                             ---------------     ---------------

CASH FLOWS FROM FINANCING ACTIVITIES
Activity related to investment contracts and universal life-type insurance:
  Considerations received................................................................           335,567             443,345
  Interest credited to account values....................................................           269,551             273,262
  Surrenders and other benefits..........................................................        (1,147,575)           (793,517)
Universal life-type insurance policy loans:
  Repayment..............................................................................            24,975              21,991
  Issuance...............................................................................           (30,269)            (24,190)
                                                                                             ---------------     ---------------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES......................................          (547,751)            (79,109)
                                                                                             ---------------     ---------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS.....................................          (194,186)             65,554
Cash and cash equivalents at beginning of period.........................................           233,589             131,427
                                                                                             ---------------     ---------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD...............................................     $      39,403       $     196,981
                                                                                             ===============     ===============

Supplemental disclosures:
  Income taxes paid......................................................................     $      13,106       $      31,651
  Interest paid on borrowings............................................................     $         146       $          53


                                        See Notes to Consolidated Financial Statements.
</TABLE>


                                     3

<PAGE>
<PAGE>

<TABLE>
                                                IDS LIFE INSURANCE COMPANY

                                CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY (UNAUDITED)
                                        THREE MONTHS ENDED MARCH 31, 2006 AND 2005
                                                      (in thousands)

<CAPTION>
                                                                                               ACCUMULATED
                                                               ADDITIONAL                         OTHER
                                                 CAPITAL        PAID-IN        RETAINED       COMPREHENSIVE
                                                  STOCK         CAPITAL        EARNINGS       INCOME (LOSS)         TOTAL
                                               -----------   -------------   ------------   -----------------   -------------
<C>                                             <C>           <C>             <C>            <C>                 <C>
BALANCES AT DECEMBER 31, 2004............       $   3,000     $ 1,370,388     $3,190,474     $       341,693     $ 4,905,555

Comprehensive loss:
   Net income............................                                        125,541                             125,541
   Change in unrealized holding
     losses on securities, net...........                                                           (310,033)       (310,033)
   Change in unrealized derivative
     losses, net.........................                                                             (6,684)         (6,684)
                                                                                                                -------------
Total comprehensive loss.................                                                                           (191,176)
                                               -----------   -------------   ------------   -----------------   -------------

BALANCES AT MARCH 31, 2005...............       $   3,000     $ 1,370,388     $3,316,015     $        24,976     $ 4,714,379
                                               ===========   =============   ============   =================   =============


BALANCES AT DECEMBER 31, 2005............       $   3,000     $ 2,020,388     $3,269,206     $      (130,704)    $ 5,161,890

Comprehensive loss:
   Net income............................                                        111,899                             111,899
   Change in unrealized holding
     losses on securities, net...........                                                           (265,680)       (265,680)
   Change in unrealized derivative
     losses, net.........................                                                                713             713
                                                                                                                -------------
Total comprehensive loss.................                                                                           (153,068)
                                               -----------   -------------   ------------   -----------------   -------------

BALANCES AT MARCH 31, 2006...............       $   3,000     $ 2,020,388     $3,381,105     $      (395,671)    $ 5,008,822
                                               ===========   =============   ============   =================   =============


                                       See Notes to Consolidated Financial Statements.
</TABLE>


                                     4

<PAGE>
<PAGE>

                         IDS LIFE INSURANCE COMPANY

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1.   BASIS OF PRESENTATION

     The accompanying Consolidated Financial Statements include the accounts
     of IDS Life Insurance Company and companies in which it directly or
     indirectly has a controlling financial interest. All material
     intercompany transactions and balances between or among IDS Life
     Insurance Company and its subsidiaries and affiliates have been
     eliminated in consolidation. IDS Life Insurance Company is a stock life
     insurance company with four wholly-owned operating subsidiaries: IDS
     Life Insurance Company of New York, American Partners Life Insurance
     Company, American Enterprise Life Insurance Company and American
     Centurion Life Assurance Company. IDS Life Insurance Company also owns
     IDS REO 1, LLC, IDS REO 2, LLC and American Enterprise REO 1, LLC which
     hold real estate investments. IDS Life Insurance Company and its seven
     subsidiaries are referred to collectively in this Form 10-Q as "IDS
     Life".

     The accompanying Consolidated Financial Statements have been prepared
     in accordance with U.S. generally accepted accounting principles
     ("GAAP"). The interim financial information in this report has not been
     audited. In the opinion of management, all adjustments necessary for a
     fair presentation of the consolidated financial position and the
     consolidated results of operations for the interim periods have been
     made. All adjustments made were of a normal, recurring nature. Results
     of operations reported for interim periods are not necessarily
     indicative of results for the entire year. These Consolidated Financial
     Statements and Notes should be read in conjunction with the Annual
     Report on Form 10-K of IDS Life for the year ended December 31, 2005,
     filed with the Securities and Exchange Commission ("SEC") on March 10,
     2006.

     Certain reclassifications of prior period amounts have been made to
     conform to the current presentation.

2.   RECENT ACCOUNTING PRONOUNCEMENTS

     In February 2006, the Financial Accounting Standards Board ("FASB")
     issued Statement of Financial Accounting Standards ("SFAS") No. 155,
     "Accounting for Certain Hybrid Financial Instruments-an amendment of
     FASB Statements No. 133 and 140." SFAS No. 155 improves financial
     reporting by eliminating the exemption from applying SFAS No. 133 to
     interests in securitized financial assets so that similar instruments
     are accounted for similarly regardless of the form of the instruments.
     It also improves financial reporting by allowing a preparer to elect
     fair value measurement at acquisition, at issuance, or when a
     previously recognized financial instrument is subject to a
     remeasurement (new basis) event, on an instrument-by-instrument basis,
     in cases in which a derivative would otherwise have to be bifurcated.
     SFAS No. 155 is effective for all financial instruments acquired or
     issued after the beginning of an entity's first fiscal year that begins
     after September 15, 2006. IDS Life is currently evaluating the impact
     of SFAS No. 155 on IDS Life's consolidated results of operations and
     financial condition.

     On November 3, 2005, the FASB issued FASB Staff Position ("FSP") FAS
     115-1 and FAS 124-1, "The Meaning of Other-Than-Temporary Impairment
     and Its Application to Certain Investments." FSP FAS 115-1 and FAS
     124-1 address the determination as to when an investment is considered
     impaired, whether that impairment is other-than-temporary and the
     measurement of loss. It also includes accounting considerations
     subsequent to the recognition of an other-than-temporary impairment and
     requires certain disclosures about unrealized losses that have not been
     recognized as other-than-temporary impairments. FSP FAS 115-1 and FAS
     124-1 are effective for reporting periods beginning after December 15,
     2005. The effect of adopting FSP FAS 115-1 and FAS 124-1 on IDS Life's
     consolidated results of operations and financial condition was not
     material.


                                     5

<PAGE>
<PAGE>

                         IDS LIFE INSURANCE COMPANY

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

2.   RECENT ACCOUNTING PRONOUNCEMENTS (CONTINUED)

     In September 2005, the American Institute of Certified Public
     Accountants issued Statement of Position 05-1, "Accounting by Insurance
     Enterprises for Deferred Acquisition Costs in Connection With
     Modifications or Exchanges of Insurance Contracts" ("SOP 05-1"). SOP
     05-1 provides guidance on accounting by insurance enterprises for
     deferred acquisition costs on internal replacements of insurance and
     investment contracts other than those specifically described in SFAS
     No. 97, "Accounting and Reporting by Insurance Enterprises for Certain
     Long-Duration Contracts and for Realized Gains and Losses from the Sale
     of Investments." SOP 05-1 is effective for internal replacements
     occurring in fiscal years beginning after December 15, 2006, with
     earlier adoption encouraged. IDS Life is currently evaluating the
     impact of SOP 05-1 on IDS Life's consolidated results of operations and
     financial condition.

     In May 2005, the FASB issued SFAS No. 154, "Accounting Changes and
     Error Corrections" ("SFAS 154"). This statement replaces Accounting
     Principles Board ("APB") Opinion No. 20, "Accounting Changes," and SFAS
     No. 3, "Reporting Accounting Changes in Interim Financial Statements"
     and changes the requirements for the accounting for and reporting of a
     change in accounting principle. SFAS 154 is effective for accounting
     changes and corrections of errors made in fiscal years beginning after
     December 15, 2005. The effect of adopting SFAS 154 on IDS Life's
     consolidated results of operations and financial condition was not
     material.

3.   SEPARATION OF AMERIPRISE FINANCIAL, INC.

     IDS Life Insurance Company is a wholly-owned subsidiary of Ameriprise
     Financial, Inc. ("Ameriprise Financial"). Prior to August 1, 2005,
     Ameriprise Financial was referred to as American Express Financial
     Corporation. On February 1, 2005, the American Express Company
     ("American Express") Board of Directors announced its intention to
     pursue the disposition of 100% of its shareholdings in what is now
     Ameriprise Financial ("the Separation") through a tax-free distribution
     to American Express shareholders. Effective as of the close of business
     on September 30, 2005, American Express completed the Separation and
     distribution of common shares to American Express shareholders ("the
     Distribution"). In connection with the Distribution, Ameriprise
     Financial entered into certain agreements with American Express to
     effect the separation of its business and to define the responsibility
     for obligations arising before and after the date of the Distribution,
     including, among others, obligations relating to transition services,
     taxes, and employees. IDS Life was allocated certain expenses incurred
     as a result of Ameriprise Financial becoming an independent company.
     Cumulatively, the expenses allocated to IDS Life are significant to IDS
     Life. IDS Life received a capital contribution of $650 million from
     Ameriprise Financial during the third quarter of 2005 to support its
     financial strength ratings and to cover separation costs.

     During 2005, Ameriprise Financial developed an allocation policy for
     separation costs resulting in the allocation of certain costs to IDS
     Life that it considered to be a reasonable reflection of separation
     costs benefiting IDS Life. Separation costs generally consist of
     allocated re-branding and marketing costs and costs to separate and
     reestablish technology platforms related to the separation and
     Distribution of Ameriprise Financial. For the three months ended March
     31, 2006, IDS Life incurred $24.6 million in separation costs.


                                     6

<PAGE>
<PAGE>

                         IDS LIFE INSURANCE COMPANY

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

4.   INVESTMENT SECURITIES

     Gross realized gains and losses on sales of Available-for-Sale
     securities and other-than-temporary impairment losses on
     Available-for-Sale securities included in net realized gains and losses
     were as follows:

<TABLE>
<CAPTION>
                                                                       THREE MONTHS ENDED
                                                                            MARCH 31,
                                                              ------------------------------------
                                                                    2006                  2005
                                                              ----------------       -------------
                                                                          (IN THOUSANDS)

<C>                                                               <C>                 <C>
     Gross realized gains from sales.........................     $    10,537         $     8,834
     Gross realized losses from sales........................          (5,172)             (8,094)
     Other-than-temporary impairments........................               -                (636)
</TABLE>

5.   INCOME TAXES

     IDS Life is required to establish a valuation allowance for any portion
     of the deferred tax assets that management believes will not be
     realized. Included in IDS Life's deferred tax assets is a significant
     deferred tax asset relating to capital losses realized for tax return
     purposes and capital losses that have been recognized for financial
     statement purposes but not yet for tax return purposes. Under current
     U.S. federal income tax law, capital losses generally must be used
     against capital gain income within five years of the year in which the
     capital losses are recognized for tax purposes. IDS Life's deferred tax
     assets include $231 million in capital loss carryforwards that expire
     December 31, 2009. Based on analysis of IDS Life's tax position,
     management believes it is more likely than not that the results of
     future operations and implementation of tax planning strategies will
     generate sufficient taxable income to enable IDS Life to utilize all of
     its deferred tax assets. Accordingly, no valuation allowance for
     deferred tax assets was established as of March 31, 2006 and December
     31, 2005.

6.   COMMITMENTS AND CONTINGENCIES

     At March 31, 2006 and December 31, 2005, IDS Life had commitments to
     fund mortgage loans on real estate of $94.6 million and $106.8 million,
     respectively.

     The SEC, the National Association of Securities Dealers and several
     state authorities have brought proceedings challenging several mutual
     fund and variable product financial practices, generally including
     suitability, late trading, market timing, compensation and disclosure
     of revenue sharing arrangements. IDS Life has received requests for
     information and has been contacted by regulatory authorities concerning
     its practices and is cooperating fully with these inquiries.

     IDS Life is involved in other proceedings concerning matters arising in
     connection with the conduct of its business activities. IDS Life
     believes that it is not a party to, nor are any of its properties the
     subject of, any pending legal, arbitration or regulatory proceedings
     that would have a material adverse effect on its consolidated financial
     condition, results of operations or liquidity. However, it is possible
     that the outcome of any such proceedings could have a material adverse
     impact on results of operations in any particular reporting period as
     the proceedings are resolved.


                                     7

<PAGE>
<PAGE>

                         IDS LIFE INSURANCE COMPANY

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

7.   REGULATORY REQUIREMENTS

     IDS Life Insurance Company and its wholly-owned life insurance
     subsidiaries are subject to regulatory capital requirements. Actual
     capital, determined on a statutory basis, and regulatory capital
     requirements, based on the most recent statutory risk-based capital
     filings for each of the life insurance entities are as follows:

<TABLE>
<CAPTION>
                                                                                                         REGULATORY CAPITAL
                                                                     ACTUAL CAPITAL AS OF(a)                REQUIREMENT
                                                            ----------------------------------------     -----------------
                                                                  MARCH 31,           DECEMBER 31,           DECEMBER 31,
                                                                    2006                  2005                    2005
                                                            -------------------    -----------------     -----------------
                                                                                     (IN THOUSANDS)
<C>                                                          <C>                    <C>                   <C>
     IDS Life Insurance Company..........................    $       3,376,810      $     3,270,285       $       750,975
     American Enterprise Life Insurance Company..........              585,731              583,303               125,285
     IDS Life Insurance Company of New York..............              254,712              246,001                39,880
     American Partners Life Insurance Company............               70,053               67,884                10,906
     American Centurion Life Assurance Company...........               64,058               61,748                12,654
</TABLE>

     --------------
     (a)  Actual capital, as defined by the National Association of
          Insurance Commissioners for purposes of meeting regulatory capital
          requirements, includes statutory capital and surplus, plus certain
          statutory valuation reserves.


                                     8

<PAGE>
<PAGE>

     ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS

     The following Management's Discussion and Analysis ("MD&A") should be
     read in conjunction with IDS Life Insurance Company's Consolidated
     Financial Statements and related notes presented in Item 1. IDS Life
     Insurance Company and its seven subsidiaries are referred to
     collectively in this Form 10-Q as "IDS Life". This discussion may
     contain forward-looking statements that reflect IDS Life's plans,
     estimates and beliefs. Actual results could differ materially from
     those discussed in these forward-looking statements. Factors that could
     cause or contribute to these differences include, but are not limited
     to, those discussed under "Forward-Looking Statements." IDS Life
     believes it is useful to read its MD&A in conjunction with its Annual
     Report on Form 10-K for the year ended December 31, 2005, filed with
     the Securities and Exchange Commission ("SEC") on March 10, 2006, as
     well as its current reports on Form 8-K and other publicly available
     information.

     IDS Life follows United States generally accepted accounting principles
     ("GAAP"), and the following discussion is presented on a consolidated
     basis consistent with GAAP.

     Management's narrative analysis of the results of operations is
     presented in lieu of MD&A, pursuant to General Instructions H(2) (a) of
     Form 10-Q.

     OVERVIEW

     IDS Life Insurance Company is a stock life insurance company with four
     wholly-owned operating subsidiaries: IDS Life Insurance Company of New
     York, American Partners Life Insurance Company, American Enterprise
     Life Insurance Company and American Centurion Life Assurance Company.
     IDS Life Insurance Company is a wholly-owned subsidiary of Ameriprise
     Financial, Inc. ("Ameriprise Financial").

     o   IDS Life Insurance Company is domiciled in Minnesota and holds
         Certificates of Authority in American Samoa, the District of
         Columbia and all states except New York. IDS Life Insurance Company
         issues insurance and annuity products.

     o   American Enterprise Life Insurance Company ("American Enterprise
         Life") is a stock life insurance company domiciled in Indiana,
         which holds Certificates of Authority in the District of Columbia
         and all states except New York. American Enterprise Life issues
         fixed and variable annuity contracts primarily through regional and
         national financial institutions and regional and/or independent
         broker-dealers. (In past years, American Enterprise Life issued a
         nominal number of variable universal life contracts.)

     o   American Partners Life Insurance Company ("American Partners Life")
         is a stock life insurance company domiciled in Arizona, which holds
         Certificates of Authority in the District of Columbia and all
         states except New York and New Hampshire. American Partners Life
         markets annuity products directly to customers, generally persons
         holding an American Express(R) Card.

     o   IDS Life Insurance Company of New York ("IDS Life of New York") is
         a stock life insurance company domiciled in New York, which holds
         Certificates of Authority in New York and North Dakota. IDS Life of
         New York issues insurance and annuity products.

     o   American Centurion Life Assurance Company ("American Centurion
         Life") is a stock life insurance company domiciled in New York,
         which holds Certificates of Authority in New York, Alabama and
         Delaware. American Centurion Life issues fixed and variable annuity
         contracts primarily through financial institutions and independent
         broker-dealers. American Centurion Life also markets annuity
         products directly, generally to persons holding an American
         Express(R) Card.

     IDS Life Insurance Company also owns IDS REO 1, LLC, IDS REO 2, LLC and
     American Enterprise REO 1, LLC which hold real estate investments.


                                     9

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     Prior to August 1, 2005, Ameriprise Financial was referred to as
     American Express Financial Corporation. On February 1, 2005 American
     Express Company ("American Express") announced its intention to pursue
     the disposition of 100% of its shareholdings in what is now Ameriprise
     Financial ("the Separation") through a tax-free distribution to
     American Express shareholders. Effective as of the close of business on
     September 30, 2005, American Express completed the Separation and
     distribution of common shares to American Express shareholders ("the
     Distribution"). In connection with the Distribution, Ameriprise
     Financial entered into certain agreements with American Express to
     effect the separation of its business and to define the responsibility
     for obligations arising before and after the date of the Distribution,
     including, among others, obligations relating to transition services,
     taxes, and employees. IDS Life was allocated certain expenses incurred
     as a result of Ameriprise Financial becoming an independent company.
     Cumulatively, the expenses allocated to IDS Life are significant to IDS
     Life. The majority of such costs are expected to be incurred by
     December 31, 2006. IDS Life received a capital contribution of $650
     million from Ameriprise Financial during the third quarter of 2005 to
     support its financial strength ratings and to cover separation costs.

     RESULTS OF OPERATIONS

     THREE MONTHS ENDED MARCH 31, 2006 COMPARED TO MARCH 31, 2005

     Overview

     Net income was $111.9 million for the three months ended March 31, 2006
     compared to $125.5 million for the three months ended March 31, 2005.
     The decrease in net income primarily resulted from increases in
     separation costs, amortization of deferred acquisition costs ("DAC")
     and other insurance and operating expenses, as well as a decrease in
     net investment income, partially offset by higher mortality and expense
     risk and other fees and contractholder and policyholder charges.

     Revenues

     Disability income ("DI") and long-term care ("LTC") insurance premiums
     increased $3.0 million or 4% reflecting higher DI insurance in force
     levels.

     Net investment income decreased $14.3 million or 3% reflecting a
     decrease in the average yield and unfavorable mark-to market
     adjustments on options hedging guaranteed minimum withdrawal benefit
     ("GMWB") provisions, partially offset by favorable mark-to-market
     adjustments on trading securities, equity method investments in hedge
     funds and options hedging equity index annuities ("EIA"). The decrease
     also reflects $7.8 million in income in the first quarter of 2005
     compared to $0.9 million in income in the first quarter of 2006 related
     to the liquidation of secured loan trusts. The impacts from options
     hedging EIA and GMWB were primarily offset in the interest credited to
     account values and death and other benefits for investment contracts
     and universal life-type insurance line items.

     Contractholder and policyholder charges increased $9.4 million or 7%
     reflecting an increase in the cost of insurance charges on variable
     universal life products, as well as an increase in surrender charges on
     annuities.

     Mortality and expense risk and other fees increased $31.5 million or
     27% reflecting higher average values of separate account assets due to
     increased inflows and market appreciation.

     Net realized gain on investments was $5.8 million for the three months
     ended March 31, 2006 compared to $0.2 million for the three months
     ended March 31, 2005. For the three months ended March 31, 2006, $11.0
     million of total investment gains were partially offset by $5.2 million
     of losses. Included in these total net investment gains and losses were
     $10.5 million of gross realized gains partially offset by $5.2 million
     of gross realized losses from sales of securities, classified as
     Available-for-Sale.

     For the three months ended March 31, 2005, $8.9 million of total
     investment gains were partially offset by $8.7 million of losses and
     impairments. Included in these total net investment gains and losses
     were $8.8 million of gross realized gains and $8.1 million of gross
     realized losses from sales of securities, as well as $0.6 million of
     other-than-temporary impairment losses on investments, classified as
     Available-for-Sale.


                                     10

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     Benefits and Expenses

     Death and other benefits for traditional life insurance decreased $6.7
     million or 55% reflecting lower claims volume.

     Death and other benefits for investment contracts and universal
     life-type insurance increased $4.7 million or 9% reflecting an increase
     in variable universal life benefits and increases in guaranteed minimum
     death benefit ("GMDB") reserves, partially offset by decreases in GMWB
     reserves.

     Increase in liabilities for future policy benefits for DI and LTC
     insurance increased $12.6 million or 42% reflecting a $5.1 million
     adjustment to the liabilities for incurred but not reported claims and
     unfavorable claims experience relative to the same period a year ago.

     Interest credited to account values decreased by $3.7 million or 1%
     primarily due to lower interest crediting rates and average
     accumulation values of annuities, partially offset by the effect of
     appreciation on equity indexed annuities linked to the S&P 500 Index in
     the first quarter of 2006 versus depreciation in the same period a year
     ago.

     Amortization of DAC increased to $105.3 million for the three months
     ended March 31, 2006 from $99.1 million for the three months ended
     March 31, 2005. The increase primarily reflects an adjustment to the
     unearned commission balance. Amortization of DAC associated with
     variable annuities was up only slightly in the first quarter of 2006
     compared to the first quarter of 2005. Increased amortization
     consistent with strong growth of the variable annuity business was
     mostly offset by the impact of more favorable equity market conditions.

     Separation costs generally consist of allocated re-branding and
     marketing costs and costs to separate and reestablish technology
     platforms related to the separation and Distribution of Ameriprise
     Financial. During the quarter ended March 31, 2006, IDS Life incurred
     $24.6 million in separation costs.

     Other insurance and operating expenses increased $19.3 million or 14%
     primarily reflecting increased non-deferrable distribution costs,
     compensation costs and corporate overhead expenses.

     Income Taxes

     IDS Life's effective tax rate was 30% for the three months ended March
     31, 2006 compared to 32% for the three months ended March 31, 2005. The
     decreased effective tax rate primarily reflects higher tax-advantaged
     items in the first quarter of 2006 compared to the same period a year
     ago.

                                     11

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     LIQUIDITY AND CAPITAL RESOURCES

     The liquidity requirements of IDS Life are generally met by funds
     provided by investment income, maturities and periodic repayments of
     investments, deposits, premiums and proceeds from sales of investments,
     as well as capital contributions from Ameriprise Financial. The primary
     uses of funds are policy benefits, commissions, other product-related
     acquisition and sales inducement costs, operating expenses, policy
     loans, dividends to Ameriprise Financial and investment purchases. IDS
     Life routinely reviews its sources and uses of funds in order to meet
     its ongoing obligations. In connection with the separation, IDS Life
     received a capital contribution of $650 million from Ameriprise
     Financial during the third quarter of 2005 to support its financial
     strength ratings and to cover separation costs. On April 5, 2006, IDS
     Life declared an extraordinary dividend of $100 million and has made
     the required advance notice to the Minnesota Department of Commerce,
     its primary state regulator. IDS Life received a response from the
     Minnesota Department of Commerce stating that they do not object to the
     payment of this dividend.

     At March 31, 2006 and December 31, 2005, IDS Life had outstanding
     reverse repurchase agreements totaling $5.0 million and $25.0 million,
     respectively. The reverse repurchase agreements are used strictly as
     short-term sources of funds.

     OTHER REPORTING MATTERS

     ACCOUNTING DEVELOPMENTS

     See Note 2 to the Consolidated Financial Statements.


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     ITEM 4.  CONTROLS AND PROCEDURES

     DISCLOSURE CONTROLS AND PROCEDURES
     IDS Life maintains disclosure controls and procedures (as defined in
     Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934,
     as amended ("the Exchange Act")) designed to provide reasonable
     assurance that the information required to be reported in the Exchange
     Act filings is recorded, processed, summarized and reported within the
     time periods specified and pursuant to the regulations of the
     Securities and Exchange Commission, including controls and procedures
     designed to ensure that this information is accumulated and
     communicated to IDS Life's management, including its Chief Executive
     Officer and Chief Financial Officer, as appropriate, to allow timely
     decisions regarding the required disclosure. It should be noted that,
     because of inherent limitations, IDS Life's disclosure controls and
     procedures, however well designed and operated, can provide only
     reasonable, and not absolute, assurance that the objectives of the
     disclosure controls and procedures are met.

     IDS Life's management, with the participation of its Chief Executive
     Officer and Chief Financial Officer, has evaluated the effectiveness of
     IDS Life's disclosure controls and procedures as of the end of the
     period covered by this report. Based upon that evaluation, IDS Life's
     Chief Executive Officer and Chief Financial Officer have concluded that
     IDS Life's disclosure controls and procedures were effective at a
     reasonable level of assurance as of March 31, 2006.

     CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
     American Express Company ("American Express") has historically provided
     a variety of corporate and other support services for Ameriprise
     Financial and its subsidiaries, including information technology,
     treasury, accounting, financial reporting, tax administration, human
     resources, marketing, legal, procurement and other services. American
     Express continues to provide Ameriprise Financial and its subsidiaries
     with some of these services pursuant to a transition services agreement
     for a transition period of up to two years following the Distribution.
     For the quarter ended December 31, 2005, IDS Life noted that many of
     these services performed by American Express had an impact on its
     financial reporting processes, which it considered a material change in
     its internal control over financial reporting. Since the quarter ended
     December 31, 2005, Ameriprise Financial has increased the staffing of
     its accounting and reporting functions and has taken steps to perform
     these functions on a basis independent from American Express. IDS Life
     considers this reduction in reliance on American Express to perform
     accounting and financial reporting related services a material change
     in its internal control over financial reporting.

     Other than the changes mentioned above, no other changes in IDS Life's
     internal control over financial reporting (as such term is defined in
     Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal
     quarter to which this report relates have materially affected, or are
     reasonably likely to materially affect, IDS Life's internal control
     over financial reporting.

     FORWARD-LOOKING STATEMENTS
     This report includes forward-looking statements, which are subject to
     risks and uncertainties. The words "believe," "expect," "anticipate,"
     "optimistic," "intend," "plan," "aim," "will," "may," "should,"
     "could," "would," "likely," and similar expressions are intended to
     identify forward-looking statements. Readers are cautioned not to place
     undue reliance on these forward-looking statements, which speak only as
     of the date on which they are made. IDS Life undertakes no obligation
     to update or revise any forward-looking statements. Factors that could
     cause actual results to differ materially from these forward-looking
     statements include, but are not limited to, the following: the success,
     timeliness and financial impact (including the amount of intercompany
     costs allocated to IDS Life, cost savings and other benefits including
     increased revenues), both in the short-term and over time, of
     reengineering initiatives being implemented or considered by Ameriprise
     Financial that could impact IDS Life, including cost management,
     structural and strategic measures such as vendor, process, facilities
     and operations consolidation and outsourcing (including, among others,
     technologies operations); the ability to control and manage operating
     infrastructure, advertising and promotion expenses as business expands
     or changes; a downturn in IDS Life's businesses and/or negative changes
     in IDS Life's credit or financial strength ratings, which could result
     in decreased liquidity, negative impact on marketing and sale of
     products, and higher borrowing costs; IDS Life's ability to improve
     investment performance, including attracting and retaining high-quality
     personnel, and reduce outflows of invested funds; IDS Life's ability to
     develop and introduce new and attractive products to clients in a
     timely manner and effectively manage the economics in selling a growing
     volume of non-proprietary mutual funds and other retail financial
     products to clients; fluctuation in the

                                     13

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     equity and fixed income markets, which can affect the amount and types
     of investment products sold by IDS Life, and other fees received based
     on the value of those assets; IDS Life's ability to recover DAC, as
     well as the timing of such DAC amortization, in connection with the
     sale of annuity and insurance products; the level of GMDB or living
     benefits paid to clients; changes in assumptions relating to DAC, which
     could impact the amount of DAC amortization; IDS Life's ability to
     avoid deterioration in its high-yield portfolio in order to mitigate
     losses in its investment portfolio; fluctuations in interest rates,
     which impact IDS Life's borrowing costs, return on lending products and
     spreads in the insurance and annuity products; accuracy of estimates
     for the fair value of the assets in IDS Life's investment portfolio
     and, in particular, those investments that are not readily marketable;
     the potential negative effect on IDS Life's businesses and
     infrastructure, including information technology, of terrorist attacks,
     disasters or other catastrophic events in the future; changes in laws
     or government regulations, including changes in tax laws or regulations
     that could result in the elimination of certain tax benefits; outcomes
     and costs associated with litigation and compliance and regulatory
     matters; successfully cross-selling insurance and annuity products and
     services to Ameriprise Financial's customer base; lower than
     anticipated spreads in the insurance and annuity business; the type and
     the value of certain benefit features on variable annuity contracts;
     the affect of assessments and other surcharges for guaranty funds; the
     response of reinsurance companies under reinsurance contracts; the
     impact of the separation of Ameriprise Financial from American Express;
     the impact of reinsurance rates and the availability and adequacy of
     reinsurance; and competitive pressures in IDS Life's business. A
     further description of these and other risks and uncertainties can be
     found under "Item 1A - Risk Factors" and elsewhere in IDS Life's Annual
     Report on Form 10-K for the year ended December 31, 2005, and its other
     reports filed with the Securities and Exchange Commission.

PART II. OTHER INFORMATION

IDS LIFE INSURANCE COMPANY

Item 1.     Legal Proceedings

            The information set forth in Note 6 to Consolidated
            Financial Statements in Part I, Item 1 is incorporated
            herein by reference.

Item 1A.    Risk Factors

            There have been no material changes in the risk factors
            provided in Part I, Item 1A of IDS Life's Annual Report on
            Form 10-K for the year ended December 31, 2005 filed with
            the SEC.

Item 5.     Other Information

            None.

Item 6.     Exhibits

            See Exhibit Index on page E-1 hereof.



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                                 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 INSURANCE COMPANY
                                                --------------------------
                                                        (Registrant)






Date:  May 9, 2006                  By /s/ Mark E. Schwarzmann
                                       -----------------------------------
                                       Mark E. Schwarzmann
                                       Director, Chairman of the Board and
                                       Chief Executive Officer



Date:  May 9, 2006                  By /s/ Brian J. McGrane
                                       -----------------------------------
                                       Brian J. McGrane
                                       Executive Vice President and
                                       Chief Financial Officer



                                     15

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                                EXHIBIT INDEX

The following exhibits are filed as part of this Quarterly Report:

EXHIBIT                                DESCRIPTION
-------       ----------------------------------------------------------------

 *31.1        Certification of Mark E. Schwarzmann pursuant to Rule 13a-14(a)
              promulgated under the Securities Exchange Act of 1934, as
              amended.

 *31.2        Certification of Brian J. McGrane pursuant to Rule 13a-14(a)
              promulgated under the Securities Exchange Act of 1934, as
              amended.

 *32.1        Certification of Mark E. Schwarzmann and Brian J. McGrane
              pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
              Section 906 of the Sarbanes-Oxley Act of 2002.


*   Filed electronically herewith.

                                     E-1