<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 September 30, 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 September 30, 1997

                              Table of Contents

PART I - FINANCIAL INFORMATION                                            Page

         Item 1.  Financial Statements

                  Consolidated Balance Sheets as of
                  September 30, 1997 (unaudited) and
                  December 31, 1996                                      3 - 4

                  Consolidated Statements of Income for the
                  three months ended September 30, 1997 and 1996
                  (unaudited)                                                5

                  Consolidated Statements of Income for the
                  nine months ended September 30, 1997 and 1996
                  (unaudited)                                                6

                  Consolidated Statements of Cash Flows for the
                  nine months ended September 30, 1997 and 1996
                  (unaudited)                                            7 - 8

                  Notes to Consolidated Financial Statements
                  (unaudited)                                           9 - 10

         Item 2.  Management's Discussion and Analysis of
                  Consolidated Financial Condition and
                  Results of Operations                                11 - 12

PART II - OTHER INFORMATION                                                 13

SIGNATURES                                                                  14

<PAGE>

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

<TABLE>
<CAPTION>

                                                            September 30,  December 31,
ASSETS                                                          1997           1996
                                                         ----------------- -------------
                                                            (unaudited)
<S>                                                          <C>           <C>    
Investments:
    Fixed maturities:
        Held to maturity, at amortized cost (Fair value:
    
            1997, $9,905,788; 1996, $10,521,650) .........   $ 9,537,884   $10,236,379
        Available for sale, at fair value (Amortized cost:
            1997, $12,172,758; 1996, $11,008,622) ........    12,472,475    11,146,845
                                                             -----------   -----------

                                                              22,010,359    21,383,224

    Mortgage loans on real estate ........................     3,605,715     3,493,364
    Policy loans .........................................       489,596       459,902
    Other investments ....................................       295,985       251,465
                                                             -----------   -----------

                     Total investments ...................    26,401,655    25,587,955

Cash and cash equivalents ................................       239,039       224,603

Amounts recoverable from reinsurers ......................       191,116       157,722

Amounts due from brokers .................................        10,000        11,047

Other accounts receivable ................................        40,507        44,089

Accrued investment income ................................       349,656       343,313

Deferred policy acquisition costs ........................     2,435,719     2,330,805

Deferred income taxes ....................................            --        33,923

Other assets .............................................        34,033        37,364

Separate account assets ..................................    23,222,925    18,535,160
                                                             -----------   -----------

                     Total assets ........................   $52,924,650   $47,305,981
                                                             ===========   ===========
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>

                                                           September 30, December 31,
LIABILITIES AND STOCKHOLDER'S EQUITY                           1997         1996
                                                      ------------------ ------------
                                                           (unaudited)
<S>                                                         <C>           <C>       
Liabilities:
    Future policy benefits:
        Fixed annuities .................................   $22,109,704   $21,838,008
        Universal life-type insurance ...................     3,256,855     3,177,149
        Traditional life insurance ......................       212,310       209,685
        Disability income and
            long-term care insurance ....................       500,227       424,200
    Policy claims and other
        policyholders' funds ............................        71,830        83,634
    Amounts due to brokers ..............................       412,690       261,987
    Deferred income taxes ...............................        36,668            --
    Other liabilities ...................................       321,793       332,078
    Separate account liabilities ........................    23,222,925    18,535,160
                                                            -----------   -----------

                     Total liabilities ..................    50,145,002    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 ..........................       290,847       283,615
    Net unrealized gain on investments ..................       186,817        86,102
    Retained earnings ...................................     2,298,984     2,071,363
                                                            -----------   -----------

                     Total stockholder's equity .........     2,779,648     2,444,080
                                                            -----------   -----------

Total liabilities and stockholder's equity ..............   $52,924,650   $47,305,981
                                                            ===========   ===========

                       See accompanying notes.
</TABLE>

<PAGE>

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

                                                                           Three months ended
                                                                              September 30,
                                                                             1997       1996
                                                                        ------------- ---------
<S>                                                                       <C>         <C>      
Revenues:
    Premiums:
        Traditional life insurance ....................................   $  13,046   $  12,692
        Disability income and
          long-term care insurance ....................................      37,922      33,342
                                                                          ---------   ---------
                     Total premiums ...................................      50,968      46,034

    Policyholder and contractholder charges ...........................      85,137      77,047
    Management and other fees .........................................      91,438      68,539
    Net investment income .............................................     478,852     486,051
    Net realized gain (loss) on investments ...........................       4,460      (1,687)
                                                                          ---------   ---------
                     Total revenues ...................................     710,855     675,984
                                                                          ---------   ---------

Benefits and expenses:
    Death and other benefits:
        Traditional life insurance ....................................       7,593       6,460
        Universal life-type insurance
            and investment contracts ..................................      23,453      19,864
        Disability income and
            long-term care insurance ..................................       5,344       5,599
    Increase in liabilities for
        future policy benefits:
            Traditional life insurance ................................       1,006         436
            Disability income and
                 long-term care insurance .............................      16,407      12,923
    Interest credited on universal life-type
        insurance and investment contracts ............................     349,274     343,875
    Amortization of deferred policy
        acquisition costs .............................................      80,481      69,066
    Other insurance and operating expenses ............................      49,378      62,397
                                                                          ---------   ---------
                     Total benefits and expenses ......................     532,936     520,620
                                                                          ---------   ---------

Income before income taxes ............................................     177,919     155,364

Income taxes ..........................................................      53,003      49,118
                                                                          ---------   ---------

Net income ............................................................   $ 124,916   $ 106,246
                                                                          =========   =========

                                                See accompanying notes 
</TABLE>

<PAGE>

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

                                                                              Nine months ended
                                                                                September 30,
                                                                              1997        1996
                                                                          ------------ ----------
<S>                                                                       <C>          <C>       
Revenues:
    Premiums:
        Traditional life insurance ....................................   $   39,470   $   38,074
        Disability income and
          long-term care insurance ....................................      111,940       96,717
                                                                          ----------   ----------
                     Total premiums ...................................      151,410      134,791

    Policyholder and contractholder charges ...........................      252,092      223,388
    Management and other fees .........................................      248,891      195,701
    Net investment income .............................................    1,483,508    1,467,482
    Net realized gain on investments ..................................        1,785        1,117
                                                                          ----------   ----------
                     Total revenues ...................................    2,137,686    2,022,479
                                                                          ----------   ----------

Benefits and expenses:
    Death and other benefits:
        Traditional life insurance ....................................       22,241       21,289
        Universal life-type insurance
            and investment contracts ..................................       69,755       63,281
        Disability income and
            long-term care insurance ..................................       16,168       13,356
    Increase in liabilities for
        future policy benefits:
            Traditional life insurance ................................        2,351          545
            Disability income and
                 long-term care insurance .............................       44,412       42,351
    Interest credited on universal life-type
        insurance and investment contracts ............................    1,041,749    1,019,826
    Amortization of deferred policy
        acquisition costs .............................................      234,793      205,780
    Other insurance and operating expenses ............................      186,389      187,619
                                                                          ----------   ----------
                     Total benefits and expenses ......................    1,617,858    1,554,047
                                                                          ----------   ----------

Income before income taxes ............................................      519,828      468,432

Income taxes ..........................................................      157,207      156,976
                                                                          ----------   ----------

Net income ............................................................   $  362,621   $  311,456
                                                                          ==========   ==========

                                                See accompanying notes 
</TABLE>

<PAGE>

                           IDS LIFE INSURANCE COMPANY
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 ($thousands)
                                 (unaudited)

<TABLE>
<CAPTION>

                                                                        Nine months ended
                                                                          September 30,
                                                                        1997        1996
                                                                    -----------  -----------
<S>                                                                  <C>          <C>      
Cash flows from operating activities:
    Net income ...................................................   $ 362,621    $ 311,456
    Adjustments to reconcile net income to
        net cash provided by operating activities:
            Policy loans, excluding universal
               life-type insurance:
                  Issuance .......................................     (42,190)     (37,373)
                  Repayment ......................................      33,619       30,482
            Change in reinsurance recoverable ....................     (33,394)     (30,154)
            Change in other accounts receivable ..................       3,582       (2,790)
            Change in accrued investment income ..................      (6,343)       7,885
            Change in deferred policy
               acquisition costs, net ............................    (111,434)    (187,144)
            Change in liabilities for future policy
               benefits for  traditional life,
               disability income and
               long-term care insurance ..........................      78,652       72,176
            Change in policy claims and other
               policyholders' funds ..............................     (11,804)      36,907
            Change in deferred income taxes ......................      16,361      (57,411)
            Change in other liabilities ..........................     (10,285)     (39,511)
            Accretion of discount, net ...........................      (7,960)      (7,046)
            Net realized gain on investments .....................      (1,785)      (1,117)
            Policyholder and contractholder charges,
               non-cash ..........................................    (118,737)    (114,156)
            Other, net ...........................................      (5,138)       4,217
                                                                     ---------    ---------

               Net cash provided by (used in) operating activities   $ 145,765    ($ 13,579)
                                                                     ---------    ---------
</TABLE>

<PAGE>

                          IDS LIFE INSURANCE COMPANY
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                ($ thousands)
                                 (unaudited)
                                 (continued)

<TABLE>
<CAPTION>
                                                                                 Nine months ended
                                                                                  September 30,
                                                                                 1997          1996
                                                                           ---------------   ---------
<S>                                                                         <C>            <C>         
Cash flows from investing activities:
    Fixed maturities held to maturity:
        Purchases .......................................................   ($    1,011)   ($   41,724)
        Maturities, sinking fund payments and calls .....................       548,185        548,298
        Sales ...........................................................       168,671        115,832
    Fixed maturities available for sale:
        Purchases .......................................................    (2,394,019)    (1,396,732)
        Maturities, sinking fund payments and calls .....................       804,215        995,666
        Sales ...........................................................       452,315        177,253
    Other investments, excluding policy loans:
        Purchases .......................................................      (413,096)      (753,578)
        Sales ...........................................................       237,645        157,985
    Change in amounts due from broker ...................................         1,047        (19,313)
    Change in amounts due to broker .....................................       150,703         16,012
                                                                            -----------    -----------

               Net cash used in investing activities ....................      (445,345)      (200,301)
                                                                            -----------    -----------

Cash flows from financing activities:
    Activity related to universal life-type insurance
     and investment contracts:
        Considerations received .........................................     2,176,376      2,693,055
        Surrenders and death benefits ...................................    (2,747,986)    (3,304,238)
        Interest credited to account balances ...........................     1,041,749      1,019,826
    Universal life-type insurance policy loans:
        Issuance ........................................................       (71,654)       (65,179)
        Repayment .......................................................        50,531         43,403
    Cash dividends to parent ............................................      (135,000)      (125,000)
                                                                            -----------    -----------

               Net cash provided by financing activities ................       314,016        261,867
                                                                            -----------    -----------

Net increase in cash and cash equivalents ...............................        14,436         47,987

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

Cash and cash equivalents at end of period ..............................   $   239,039    $   120,134
                                                                            ===========    ===========

                                                  See accompanying notes 
</TABLE>

<PAGE>

                          IDS LIFE INSURANCE COMPANY
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                              September 30, 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 September 30, 1997,
      statements of income for the three and nine months ended September 30,
      1997 and 1996 and statements of cash flows for the nine months ended
      September 30, 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, American
      Partners Life Insurance Company and American Express Corporation.  All
      material intercompany accounts and transactions have been eliminated in
      consolidation.

      Purchased and written index options are carried at market value and
      included in other investments.  Gains or losses on index options are
      recognized currently and included in insurance and other operating
      expenses.

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 $5,726 and $3,610 for the
      nine months ended September 30, 1997 and 1996, respectively.  Cash paid
      for income taxes totaled $113,939 and $274,418 for the nine months ended
      September 30, 1997 and 1996, respectively.

<PAGE>

                          IDS LIFE INSURANCE COMPANY

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

4.    Commitments and contingencies

      At September 30, 1997, the Company had commitments to purchase
      affordable housing limited partnership investments of $18,840, which are
      included in other liabilities.  Commitments for purchases of investments
      in the ordinary course of business at September 30, 1997 aggregated
      $136,573.

      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

Nine Months Ended September 30, 1997 Compared to Nine Months Ended
September 30, 1996:

      Consolidated net income increased 17 percent to $363 million for the
nine months ended September 30, 1997, compared to $311 million in 1996.
Earnings growth resulted primarily from increases in management fees and
policyholder and contractholder charges.

      Premiums received totaled $4.0 billion for the nine months ended
September 30, 1997, compared to $4.6 billion a year ago.  Increased sales of
fixed annuities and life insurance were offset by decreased sales of variable
annuities.

      Net investment income increased slightly to $1.5 billion for the nine
months ended September 30.  The increase primarily reflects slightly higher
total investments of $26 billion at September 30, 1997.

      Policyholder and contractholder charges increased to $252 million for
the nine  months ended September 30, 1997, compared with $223 million a year
ago.  This increase is primarily due to higher life insurance in force.

     Management  and other fees  increased  to $249  million for the nine months
ended  September  30,  1997,  compared  with $196  million  a year ago.  This is
primarily due to an increase in separate  account assets,  which grew 33 percent
over the past 12 months to $23  billion at  September  30,  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 $1.6 billion for the nine months ended
September 30, 1997, a slight increase over a year ago.  The largest component
of expenses, interest credited on universal life-type insurance and
investment contracts, increased slightly to $1.0 billion.  This is due to
higher aggregate amounts in force partially offset by slightly lower interest
credited rates. The increases in amortization of deferred policy acquisition
costs is primarily due to an increase in business in force.

<PAGE>

Liquidity and Capital Resources

      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 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 September 30, 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 $286 million at September 30, 1997.

      At September 30, 1997, approximately 9.3 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.

      For the nine months ended September 30, 1997, sales of fixed maturities
held to maturity were due to significant deterioration in the issuers'
creditworthiness.

      At September 30, 1997, the Company had an allowance for losses on
mortgage loans of $43 million, compared to $37 million at December 31, 1996.

      The Company paid $135 million in dividends to its parent during the nine
months ended September 30, 1997.  During the 4th quarter of 1997, the Company
expects to pay an additional $65 million in dividends.

      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 September 30, 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 nine
months ended September 30, 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                           October 12, 1997