<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 SEPTEMBER 30, 2005

                                     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)


829 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 an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).              Yes     No 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 November 14, 2005
---------------------------------------      --------------------------------
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>


                    IDS LIFE INSURANCE COMPANY

                             FORM 10-Q

                               INDEX

                                                                       Page No.
                                                                       --------
PART I.   Financial Information:

          Item 1.  Financial Statements

                   Consolidated Balance Sheets -- September 30, 2005
                   and December 31, 2004                                      1

                   Consolidated Statements of Income -- Three Months
                   Ended September 30, 2005 and 2004                          2

                   Consolidated Statements of Income -- Nine Months
                   Ended September 30, 2005 and 2004                          3

                   Consolidated Statements of Cash Flows -- Nine Months
                   Ended September 30, 2005 and 2004                          4

                   Consolidated Statements of Stockholder's Equity --
                   Nine Months Ended September 30, 2005 and 2004              5

                   Notes to Consolidated Financial Statements              6-11

          Item 2.  Management's Discussion and Analysis of Financial
                   Condition and Results of Operations                    12-20

          Item 4.  Controls and Procedures                                21-22

PART II.  Other Information

          Item 1.  Legal Proceedings                                         23

          Item 6.  Exhibits                                                  23

          Signatures                                                         24

          Exhibit Index                                                     E-1




<PAGE>
<PAGE>

PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS


<TABLE>
                                                   IDS LIFE INSURANCE COMPANY
                                                  CONSOLIDATED BALANCE SHEETS
                                                 (thousands, except share data)

<CAPTION>
                                                                                           September 30,            December 31,
                                                                                               2005                     2004
                                                                                           -------------            ------------
                                                                                            (Unaudited)
<S>                                                                                         <C>                     <C>
Assets
------
Investments:
    Available-for-Sale:
       Fixed maturities, at fair value (amortized cost: 2005, $27,530,031;
        2004, $27,400,640)                                                                  $27,685,727             $28,131,195
       Preferred and common stocks, at fair value (cost: 2005 and 2004, $30,019)                 31,087                  31,256
    Mortgage loans on real estate, at cost (less reserves: 2005, $41,347; 2004,
     $45,347)                                                                                 2,867,434               2,923,542
    Policy loans                                                                                596,352                 588,574
    Trading and other investments                                                               605,432                 802,096
                                                                                            -----------             -----------
            Total investments                                                                31,786,032              32,476,663

Cash and cash equivalents                                                                     1,195,830                 131,427
Restricted cash                                                                                       -                 535,821
Reinsurance recoverables                                                                        942,763                 876,408
Amounts due from brokers                                                                         10,006                   7,109
Other accounts receivable                                                                        62,233                  52,527
Accrued investment income                                                                       337,256                 351,522
Deferred policy acquisition costs                                                             3,944,432               3,637,956
Deferred sales inducement costs                                                                 357,726                 302,997
Other assets                                                                                    123,663                 186,003
Separate account assets                                                                      36,210,399              32,454,032
                                                                                            -----------             -----------
Total assets                                                                                $74,970,340             $71,012,465
                                                                                            ===========             ===========

Liabilities and Stockholder's Equity
------------------------------------

Liabilities:
    Future policy benefits:
       Fixed annuities                                                                      $26,460,685             $26,978,596
       Variable annuity guarantees                                                               23,683                  32,955
       Universal life insurance                                                               3,702,216               3,689,639
       Traditional life insurance                                                               291,363                 271,516
       Disability income and long-term care insurance                                         2,092,272               1,942,656
    Policy claims and other policyholders' funds                                                 83,145                  69,884
    Amounts due to brokers                                                                      104,221                 162,609
    Deferred income taxes, net                                                                   71,578                 141,202
    Other liabilities                                                                           378,664                 363,821
    Separate account liabilities                                                             36,210,399              32,454,032
                                                                                            -----------             -----------
            Total liabilities                                                                69,418,226              66,106,910
                                                                                            -----------             -----------

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               1,370,388
    Retained earnings                                                                         3,532,550               3,190,474
    Accumulated other comprehensive (loss) income, net of tax:
        Net unrealized securities gains                                                          34,541                 370,615
        Net unrealized derivative losses                                                        (38,365)                (28,922)
                                                                                            -----------             -----------
            Total accumulated other comprehensive (loss) income                                  (3,824)                341,693
                                                                                            -----------             -----------
                Total stockholder's equity                                                    5,552,114               4,905,555
                                                                                            -----------             -----------
Total liabilities and stockholder's equity                                                  $74,970,340             $71,012,465
                                                                                            ===========             ===========

                                         See Notes to Consolidated Financial Statements
</TABLE>

                                                               1

<PAGE>
<PAGE>

<TABLE>
                                                IDS LIFE INSURANCE COMPANY
                                            CONSOLIDATED STATEMENTS OF INCOME
                                                       (thousands)
                                                       (Unaudited)


<CAPTION>
                                                                                                  Three Months Ended
                                                                                                     September 30,
                                                                                            ------------------------------
                                                                                              2005                  2004
                                                                                            --------              --------
<S>                                                                                         <C>                   <C>
Revenues:
    Premiums:
       Traditional life insurance                                                           $ 15,933              $ 17,040
       Disability income and long-term care insurance                                         74,310                71,879
                                                                                            --------              --------
           Total premiums                                                                     90,243                88,919

    Net investment income                                                                    461,450               443,534
    Contractholder and policyholder charges                                                  145,477               139,449
    Mortality and expense risk and other fees                                                125,559               106,420
    Net realized gain on investments                                                           8,070                   788
                                                                                            --------              --------
           Total                                                                             830,799               779,110
                                                                                            --------              --------

Benefits and Expenses:
    Death and other benefits:
       Traditional life insurance                                                             10,144                 6,921
       Investment contracts and universal life-type insurance                                 49,453                51,442
       Disability income and long-term care insurance                                         18,895                18,726
    Increase in liabilities for future policy benefits:
       Traditional life insurance                                                                517                   104
       Disability income and long-term care insurance                                         49,200                33,067
    Interest credited to account values                                                      278,623               278,902
    Amortization of deferred policy acquisition costs                                         24,543                63,446
    Separation costs                                                                          38,915                     -
    Other insurance and operating expenses                                                   152,414               128,754
                                                                                            --------              --------
           Total                                                                             622,704               581,362
                                                                                            --------              --------
Income before income tax provision                                                           208,095               197,748
Income tax provision                                                                          83,024                65,245
                                                                                            --------              --------

Net income                                                                                  $125,071              $132,503
                                                                                            ========              ========

                                       See Notes to Consolidated Financial Statements
</TABLE>

                                                             2

<PAGE>
<PAGE>

<TABLE>
                                                IDS LIFE INSURANCE COMPANY
                                            CONSOLIDATED STATEMENTS OF INCOME
                                                       (thousands)
                                                       (Unaudited)

<CAPTION>
                                                                                                  Nine Months Ended
                                                                                                    September 30,
                                                                                          --------------------------------
                                                                                             2005                  2004
                                                                                          ----------            ----------
<S>                                                                                       <C>                   <C>
Revenues:
    Premiums:
       Traditional life insurance                                                         $   52,690            $   51,094
       Disability income and long-term care insurance                                        218,429               210,245
                                                                                          ----------            ----------
           Total premiums                                                                    271,119               261,339

    Net investment income                                                                  1,343,160             1,323,351
    Contractholder and policyholder charges                                                  431,291               413,833
    Mortality and expense risk and other fees                                                348,727               315,402
    Net realized gain on investments                                                          45,909                18,301
                                                                                          ----------            ----------
           Total                                                                           2,440,206             2,332,226
                                                                                          ----------            ----------

Benefits and Expenses:
    Death and other benefits:
       Traditional life insurance                                                             30,724                27,011
       Investment contracts and universal life-type insurance                                168,177               168,149
       Disability income and long-term care insurance                                         55,094                50,262
    Increase (decrease) in liabilities for future policy benefits:
       Traditional life insurance                                                              2,927                  (512)
       Disability income and long-term care insurance                                        108,766                87,753
    Interest credited to account values                                                      832,244               841,982
    Amortization of deferred policy acquisition costs                                        221,818               175,230
    Separation costs                                                                          64,687                     -
    Other insurance and operating expenses                                                   438,109               374,166
                                                                                          ----------            ----------
           Total                                                                           1,922,546             1,724,041
                                                                                          ----------            ----------
Income before income tax provision and accounting change                                     517,660               608,185
Income tax provision                                                                         175,584               205,781
                                                                                          ----------            ----------
Income before accounting change                                                              342,076               402,404
Cumulative effect of accounting change, net of tax                                                 -               (70,568)
                                                                                          ----------            ----------

Net income                                                                                $  342,076            $  331,836
                                                                                          ==========            ==========

                                      See Notes to Consolidated Financial Statements
</TABLE>

                                                             3

<PAGE>
<PAGE>

<TABLE>
                                              IDS LIFE INSURANCE COMPANY
                                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                    (thousands)
                                                    (Unaudited)

<CAPTION>
                                                                                             Nine Months Ended
                                                                                               September 30,
                                                                                    ----------------------------------
                                                                                       2005                   2004
                                                                                    -----------            -----------
<S>                                                                                 <C>                    <C>
CASH FLOWS FROM OPERATING ACTIVITIES
    Net income                                                                      $   342,076            $   331,836
    Adjustments to reconcile net income to net cash provided by operating
     activities:
            Policy loans, excluding universal life-type insurance
               Repayment                                                                 27,239                 28,693
               Issuance                                                                 (29,061)               (29,587)
            Change in reinsurance recoverables                                          (66,355)               (88,877)
            Change in other accounts receivable                                          (9,706)                30,773
            Change in accrued investment income                                          14,266                 (3,602)
            Change in deferred policy acquisition costs, net                           (246,578)              (222,936)
            Change in deferred sales inducement costs, net                              (45,183)               (28,833)
            Change in liabilities for future policy benefits for traditional
             life, disability income and long-term care insurance                       169,463                165,220
            Change in policy claims and other policyholders' funds                       13,261                  9,749
            Deferred income taxes                                                       116,423                 54,248
            Change in other assets and liabilities, net                                  98,979                (12,935)
            Amortization of premium, net                                                 66,363                 68,107
            Net realized gain on investments                                            (45,909)               (18,301)
            Trading securities and equity method investments in hedge funds,
             net                                                                        187,944                (12,275)
            Net realized gain on trading securities                                     (19,236)               (21,982)
            Contractholder and policyholder charges, non-cash                          (175,430)              (174,704)
            Cumulative effect of accounting change, net of tax                                -                 70,568
                                                                                    -----------            -----------
    NET CASH PROVIDED BY OPERATING ACTIVITIES                                           398,556                145,162
                                                                                    -----------            -----------

CASH FLOWS FROM INVESTING ACTIVITIES
    Available-for-Sale securities:
            Sales                                                                     2,394,030              1,235,236
            Maturities, sinking fund payments and calls                               1,527,979              1,577,817
            Purchases                                                                (4,065,968)            (3,037,184)
    Other investments, excluding policy loans:
            Sales, maturities, sinking fund payments and calls                          501,096                517,035
            Purchases                                                                  (419,774)              (301,334)
    Change in amounts due to and from brokers, net                                      (61,285)              (236,195)
    Change in restricted cash                                                           535,821                323,949
                                                                                    -----------            -----------
    NET CASH PROVIDED BY INVESTING ACTIVITIES                                           411,899                 79,324
                                                                                    -----------            -----------

CASH FLOWS FROM FINANCING ACTIVITIES
    Activity related to investment contracts and universal life-type
     insurance:
            Considerations received                                                   1,227,285              1,768,159
            Interest credited to account values                                         832,244                841,982
            Surrenders and other benefits                                            (2,449,625)            (2,015,188)
    Universal life-type insurance policy loans:
            Repayment                                                                    71,228                 66,526
            Issuance                                                                    (77,184)               (69,370)
    Cash dividend to Ameriprise Financial, Inc.                                               -               (430,000)
    Capital contribution from Ameriprise Financial, Inc.                                650,000                      -
                                                                                    -----------            -----------
    NET CASH PROVIDED BY FINANCING ACTIVITIES                                           253,948                162,109
                                                                                    -----------            -----------

NET INCREASE IN CASH AND CASH EQUIVALENTS                                             1,064,403                386,595
Cash and cash equivalents at beginning of period                                        131,427                400,294
                                                                                    -----------            -----------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                          $ 1,195,830            $   786,889
                                                                                    ===========            ===========

SUPPLEMENTAL DISCLOSURES:
      Income taxes paid                                                             $   100,707            $   154,716
      Interest paid on borrowings                                                   $        84            $       379

                                    See Notes to Consolidated Financial Statements
</TABLE>

                                                           4

<PAGE>
<PAGE>

<TABLE>
                                                  IDS LIFE INSURANCE COMPANY
                                       CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY
                                                         (thousands)
                                                         (Unaudited)

<CAPTION>
                                                                                                Accumulated
                                                                                Additional            Other
                                                                  Capital          Paid-In    Comprehensive          Retained
                                                    Total           Stock          Capital    Income/(Loss)          Earnings
------------------------------------------------------------------------------------------------------------------------------
<S>                                            <C>                 <C>          <C>               <C>              <C>
Balances at December 31, 2003                  $5,397,836          $3,000       $1,370,388        $ 399,611        $3,624,837
------------------------------------------------------------------------------------------------------------------------------
Comprehensive income:
   Net income                                     331,836                                                             331,836
   Change in net unrealized holding
     gains on Available-for-Sale
     securities, net                               39,304                                            39,304
   Reclassification adjustment for gains
     on derivatives included in net
     income, net                                  (18,857)                                          (18,857)
                                               ----------
Total comprehensive income                        352,283
Cash dividends to Ameriprise
   Financial, Inc.                               (430,000)                                                           (430,000)
...............................................................................................................................

Balances at September 30, 2004                 $5,320,119          $3,000       $1,370,388        $ 420,058        $3,526,673
==============================================================================================================================


------------------------------------------------------------------------------------------------------------------------------
Balances at December 31, 2004                  $4,905,555          $3,000       $1,370,388        $ 341,693        $3,190,474
------------------------------------------------------------------------------------------------------------------------------
Comprehensive loss:
   Net income                                     342,076                                                             342,076
   Change in net unrealized holding
     losses on Available-for-Sale
     securities, net                             (336,074)                                         (336,074)
   Reclassification adjustment for gains
     on derivatives included in net
     income, net                                   (9,443)                                           (9,443)
                                               ----------
Total comprehensive loss                           (3,441)
Capital contribution from Ameriprise
  Financial, Inc.                                 650,000                          650,000
...............................................................................................................................

Balances at September 30, 2005                 $5,552,114          $3,000       $2,020,388        $  (3,824)       $3,532,550
==============================================================================================================================

                                        See Notes to Consolidated Financial Statements
</TABLE>

                                                               5

<PAGE>
<PAGE>


                         IDS LIFE INSURANCE COMPANY
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (Unaudited)


1.   BASIS OF PRESENTATION

     The accompanying Consolidated Financial Statements should be read in
     conjunction with the financial statements in the Annual Report on Form
     10-K of IDS Life Insurance Company (IDS Life) for the year ended
     December 31, 2004. Certain reclassifications of prior period amounts
     have been made to conform to the current presentation.

     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.

     Separation of Ameriprise Financial
     ----------------------------------
     IDS Life Insurance Company is a wholly-owned subsidiary of Ameriprise
     Financial, Inc. (Ameriprise Financial). Prior to August 1, 2005,
     Ameriprise Financial was known as American Express Financial
     Corporation. Effective as of the close of business on September 30,
     2005, American Express Company (American Express) completed the
     separation of Ameriprise Financial and the distribution of the
     Ameriprise Financial common stock to American Express shareholders
     in a tax free spin-off (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 separation and distribution-related expenses
     incurred as a result of Ameriprise Financial becoming an independent
     company. IDS Life received a capital contribution of $650 million from
     Ameriprise Financial during the third quarter of 2005 to support its
     current financial strength ratings and to cover the allocated
     separation costs.

     Separation Costs
     ----------------
     During the quarter ended June 30, 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 financial advisor and employee retention
     program costs, information technology costs, re-branding and marketing
     costs and certain consulting expenses related to the separation and
     distribution of Ameriprise Financial. For the three and nine months
     ended September 30, 2005, IDS Life was allocated $38.9 million and
     $64.7 million, respectively, in separation costs.


                                     6

<PAGE>
<PAGE>

                         IDS LIFE INSURANCE COMPANY
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (Unaudited)


     Application of Recently Issued Accounting Standards
     ---------------------------------------------------

     On November 3, 2005, the Financial Accounting Standards Board (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 addresses 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. IDS Life is currently
     evaluating the impact of FSP FAS 115-1 and FAS 124-1 on IDS Life's
     results of operations and financial position.

     In September 2005, the American Institute of Certified Public
     Accountants (AICPA) 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 Statement of
     Financial Accounting Standards (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 results of
     operations and financial position.

     In June 2004, the FASB issued FSP No. 97-1, "Situations in Which
     Paragraphs 17(b) and 20 of FASB Statement No. 97, Accounting and
     Reporting by Insurance Enterprises for Certain Long-Duration Contracts
     and for Realized Gains and Losses from the Sale of Investments (SFAS
     No. 97), Permit or Require Accrual of an Unearned Revenue Liability"
     (FSP 97-1). The implementation of the AICPA SOP 03-1, "Accounting and
     Reporting by Insurance Enterprises for Certain Nontraditional
     Long-Duration Contracts and for Separate Accounts" (SOP 03-1)


                                     7

<PAGE>
<PAGE>

                         IDS LIFE INSURANCE COMPANY
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (Unaudited)


raised a question regarding the interpretation of the requirements of SFAS
No. 97 concerning when it is appropriate to record an unearned revenue
liability. FSP 97-1 clarifies that SFAS No. 97 is clear in its intent and
language, and requires the recognition of an unearned revenue liability for
amounts that have been assessed to compensate insurers for services to be
performed over future periods. SOP 03-1 describes one situation, when
assessments result in profits followed by losses, where an unearned revenue
liability is required. SOP 03-1 does not amend SFAS No. 97 or limit the
recognition of an unearned revenue liability to the situation described in
SOP 03-1. The guidance in FSP 97-1 is effective for financial statements for
fiscal periods beginning after June 18, 2004. The adoption of FSP 97-1 did
not have a material impact on IDS Life's consolidated financial condition or
results of operations.

In July 2003, the AICPA issued SOP 03-1 effective for fiscal years beginning
after December 15, 2003. SOP 03-1 provides guidance on separate account
presentation and accounting for interests in separate accounts.
Additionally, SOP 03-1 provides clarifying guidance as to the recognition of
bonus interest and other sales inducement benefits and the presentation of
any deferred amounts in the financial statements. Lastly, SOP 03-1 requires
insurance enterprises to establish additional liabilities for benefits that
may become payable under variable annuity death benefit guarantees or other
insurance or annuity contract provisions. Where an additional liability is
established, the recognition of this liability will then be considered in
amortizing deferred policy acquisition costs (DAC) and any deferred sales
inducement costs associated with those insurance or annuity contracts.

The adoption of SOP 03-1 as of January 1, 2004, resulted in a cumulative
effect of accounting change that reduced the first quarter 2004 results by
$70.6 million ($108.6 million pretax). The cumulative effect of accounting
change consisted of: (i) $42.9 million pretax from establishing additional
liabilities for certain variable annuity guaranteed benefits ($32.8 million)
and from considering these liabilities in valuing DAC and deferred sales
inducement costs associated with those contracts ($10.1 million) and (ii)
$65.7 million pretax from establishing additional liabilities for certain
variable universal life and single pay universal life insurance contracts
under which contractual cost of insurance charges are expected to be less
than future death benefits ($92 million) and from considering these
liabilities in valuing DAC associated with those contracts ($26.3 million
offset). Prior to the adoption of SOP 03-1, amounts paid in excess of
contract value were expensed when payable. IDS Life's accounting for
separate accounts was already consistent with the provisions of SOP 03-1
and, therefore, there was no impact related to this requirement.

The AICPA released a series of technical practice aids (TPAs) in September
2004, which provide additional guidance related to, among other things, the
definition of an insurance benefit feature and the definition of policy
assessments in determining benefit liabilities, as described within SOP
03-1. The TPAs did not have a material effect on IDS Life's calculation of
liabilities that were recorded in the first quarter of 2004 upon adoption of
SOP 03-1.


                                     8

<PAGE>
<PAGE>

                         IDS LIFE INSURANCE COMPANY
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (Unaudited)


2.   INVESTMENT SECURITIES

     Gross realized gains and losses on sales and losses recognized for
     other-than-temporary impairments of securities classified as
     Available-for-Sale, using the specific identification method, were as
     follows for the three and nine months ended September 30:

<TABLE>
<CAPTION>
                                                 Three Months Ended               Nine Months Ended
                                                    September 30,                   September 30,
                                               ----------------------         -----------------------
                                                 2005          2004             2005           2004
                                               -------        -------         --------       --------
     (thousands)
<S>                                            <C>            <C>             <C>            <C>
     Gross realized gains on sales             $11,350        $10,102         $ 83,713       $ 33,871
     Gross realized losses on sales            $(3,121)       $(5,265)        $(35,368)      $(11,654)
     Other-than-temporary impairments          $     -        $     -         $   (636)      $   (130)
</TABLE>

3.   DEFERRED POLICY ACQUISITION COSTS

     The balances and changes in deferred policy acquisition costs were as
     follows:

<TABLE>
<CAPTION>
                                                                   Nine Months Ended                 Year Ended
                                                                   September 30, 2005             December 31, 2004
                                                                   ------------------             -----------------
     (thousands)                                                      (Unaudited)
<S>                                                                    <C>                           <C>
     Balance, beginning of period                                      $3,637,956                    $3,336,208
     Impact of SOP 03-1                                                         -                        19,600
     Capitalization of acquisition costs                                  468,397                       534,069
     Amortization, excluding impact of changes in assumptions            (288,818)                     (340,578)
     Amortization, impact of annual third quarter changes in
        DAC-related assumptions                                            67,000                        23,700
     Amortization, impact of other quarter changes in
        DAC-related assumptions (a)                                             -                        56,100
     Impact of changes in net unrealized securities losses                 59,897                         8,857
                                                                       ----------                    ----------
     Balance, end of period                                            $3,944,432                    $3,637,956
                                                                       ==========                    ==========

<FN>
     (a) Primarily relates to a $65.7 million reduction in DAC amortization
         expense to reflect the lengthening of the amortization periods for
         certain annuity and life insurance products impacted by IDS Life's
         adoption of SOP 03-1 on January 1, 2004, partially offset by a $9.6
         million increase in amortization expense due to a long-term care DAC
         valuation system conversion.
</TABLE>


                                     9

<PAGE>
<PAGE>

                         IDS LIFE INSURANCE COMPANY
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (Unaudited)


4.   INCOME TAXES

     IDS Life's effective tax rate was 40 percent during the three months
     ended September 30, 2005 compared to 33 percent in the three months
     ended September 30, 2004. The increased effective tax rate primarily
     reflects a $20 million tax expense applicable to prior years partially
     offset by a $9 million tax benefit related to the finalization of the
     prior year tax return. IDS Life's effective tax rate was 34 percent for
     the nine months ended September 30, 2005, which resulted from
     relatively lower levels of pretax income compared to tax-advantaged
     items in 2005, partially offset by a $20 million tax expense applicable
     to prior years and a $9 million tax benefit related to the finalization
     of the prior year tax return. IDS Life's effective tax rate was 34
     percent for the nine months ended September 30, 2004, which included a
     reduction in net deferred tax assets.

     IDS Life is required to establish a valuation allowance for any portion
     of the deferred tax assets that management believes will not be
     realized. Among our 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 has less than $50
     million in capital loss carryforwards that must be utilized by December
     31, 2005, as well as additional capital loss carryforwards that expire
     on 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 has been established.

     As a result of the separation of Ameriprise Financial from American
     Express, IDS Life will be required to file a short period income tax
     return through September 30, 2005 which will be included as part of
     the American Express consolidated income tax return for the year ending
     December 31, 2005. IDS Life will also be required to file a separate
     short period consolidated life insurance company income tax return for
     the period October 1, 2005 through December 31, 2005.

5.   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:

<TABLE>
<CAPTION>
                                                                                                        Regulatory Capital
                                                                          Actual Capital                    Requirement
                                                               -----------------------------------      ------------------
                                                               September 30,          December 31,          December 31,
                                                                   2005                   2004                  2004
    (thousands)                                                -------------          ------------       -----------------
<S>                                                            <C>                    <C>                     <C>
    IDS Life Insurance Company                                 $3,583,159             $2,650,820              $745,861
    American Enterprise Life Insurance Company                    631,493                584,958               138,836
    IDS Life Insurance Company of New York                        240,807                238,155                44,076
    American Partners Life Insurance Company                       66,393                 58,721                10,898
    American Centurion Life Assurance Company                      61,333                 53,437                13,770
</TABLE>

                                     10

<PAGE>
<PAGE>

                         IDS LIFE INSURANCE COMPANY
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (Unaudited)


6.   COMMITMENTS AND CONTINGENCIES

     At September 30, 2005 and December 31, 2004, IDS Life had commitments
     to fund mortgage loans on real estate of $121.8 million and $92.5
     million, respectively.

     The Securities and Exchange Commission, the National Association of
     Securities Dealers and several state attorneys general have brought
     proceedings challenging several mutual fund and variable product
     financial practices, generally including suitability, late trading,
     market timing 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 a number of other legal and arbitration
     proceedings concerning matters arising in connection with the conduct
     of its business activities. In addition, IDS Life is subject to
     periodic state insurance department regulatory action, through
     examinations or other proceedings. 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 impact on results of
     operations in any particular reporting period as the proceedings are
     resolved.

     The IRS routinely examines IDS Life's federal income tax returns and
     recently completed its audit of IDS Life for the 1993 through 1996 tax
     years. The IRS is currently conducting an audit of IDS Life for the
     1997 through 2002 tax years. Management does not believe there will be
     a material adverse effect on IDS Life's consolidated financial position
     or results of operations as a result of these audits.


                                     11

<PAGE>
<PAGE>


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

     IDS Life Insurance Company is a stock life insurance company organized
     under the laws of the State of Minnesota. IDS Life Insurance Company
     and its six subsidiaries are referred to collectively as "IDS Life" in
     this Form 10-Q. IDS Life Insurance Company is a wholly-owned subsidiary
     of Ameriprise Financial, Inc. (Ameriprise Financial). Prior to August
     1, 2005, Ameriprise Financial was known as American Express Financial
     Corporation.

     The following 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 below under
     "Forward-Looking Statements."

     IDS Life Insurance Company serves residents of the District of Columbia
     and all states except New York. IDS Life Insurance Company distributes
     its fixed and variable insurance and annuity products almost
     exclusively through the Ameriprise Financial Services, Inc. (AFSI)
     (formerly known as American Express Financial Advisors Inc.) retail
     sales force. IDS Life Insurance Company has four wholly-owned life
     insurance company subsidiaries: IDS Life Insurance Company of New York,
     a New York stock life insurance company (IDS Life of New York);
     American Partners Life Insurance Company, an Arizona stock life
     insurance company (American Partners Life); American Enterprise Life
     Insurance Company, an Indiana stock life insurance company (American
     Enterprise Life); and American Centurion Life Assurance Company, a New
     York stock life insurance company (American Centurion Life). IDS Life
     of New York serves New York State residents and distributes its fixed
     and variable insurance and annuity products exclusively through the
     AFSI retail sales force. American Enterprise Life issues fixed and
     variable annuity contracts primarily through regional and national
     financial institutions and regional and/or independent broker-dealers,
     outside New York. American Centurion Life offers fixed and variable
     annuity contracts directly to American Express(R) Cardmembers and
     others in New York, as well as fixed and variable annuity contracts for
     sale through non-affiliated representatives and agents of third party
     distributors, in New York. American Partners Life offers fixed and
     variable annuity contracts directly to American Express(R) Cardmembers
     and others who reside in states other than New York. IDS Life Insurance
     Company also owns IDS REO 1, LLC and IDS REO 2, LLC which hold real
     estate investments.

     Effective as of the close of business on September 30, 2005, American
     Express Company (American Express) completed the separation of
     Ameriprise Financial and the distribution of the Ameriprise Financial
     common stock to American Express shareholders in a tax free spin-off
     (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 separation and distribution-related expenses
     incurred as a result of Ameriprise Financial becoming an independent
     company. IDS Life received a capital contribution of $650 million from
     Ameriprise Financial during the third quarter of 2005 to support its
     current financial strength ratings and to cover the allocated
     separation costs.


                                     12

<PAGE>
<PAGE>

     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 management's discussion and analysis of financial
     condition and results of operations, pursuant to General Instructions
     H(2)(a) of Form 10-Q.

     RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005
     AND 2004

     Net income was $125.1 million for the three months ended September 30,
     2005 compared to $132.5 million for the three months ended September
     30, 2004. The decrease in net income primarily reflects separation
     costs, higher other insurance and operating expenses and a higher
     effective tax rate, partially offset by a reduction in amortization of
     deferred policy acquisition costs.

     REVENUES

     Net investment income increased $17.9 million or 4 percent reflecting
     $7.1 million higher mark-to-market gains on trading securities and
     equity method investments in hedge funds, as well as a net $7.7 million
     increase due to the effect of appreciation during the current quarter
     versus depreciation in the same period a year ago in the S&P on the
     value of options hedging equity indexed annuities, which was offset in
     related benefits and expenses. The average level of invested assets and
     the average yield on invested assets were comparable in both periods.

     Contractholder and policyholder charges increased $6.0 million or 4
     percent reflecting an increase in the amount of cost of insurance
     charges on variable universal life products, as well as an increase in
     the amount of surrender charges on variable annuity products.

     Mortality and expense risk and other fees increased $19.1 million or 18
     percent reflecting higher average market values of separate account
     assets.

     Net realized gain on investments was $8.1 million for the three months
     ended September 30, 2005 compared to $0.8 million for the three months
     ended September 30, 2004. For the three months ended September 30,
     2005, $11.4 million of total investment gains were partially offset by
     $3.3 million of losses. Included in these total net investment gains
     and losses were $11.4 million of gross realized gains partially offset
     by $3.1 million of gross realized losses from sales of securities,
     classified as Available-for-Sale.

     For the three months ended September 30, 2004, $13.7 million of total
     investment gains were partially offset by $12.9 million of losses and
     impairments. Included in these total net investment gains and losses
     were $10.1 million of gross realized gains and $5.3 million of gross
     realized losses from sales of securities, classified as
     Available-for-Sale.


                                     13

<PAGE>
<PAGE>

     BENEFITS AND EXPENSES

     Increase in liabilities for future policy benefits for disability
     income and long-term care insurance increased $16.1 million or 49
     percent primarily reflecting inclusion of a $13.3 million maintenance
     reserve adjustment for long-term care insurance.

     Amortization of deferred policy acquisition costs (DAC) decreased to
     $24.5 million for the three months ended September 30, 2005 from $63.4
     million for the three months ended September 30, 2004. The decrease
     primarily reflects a net $67.0 million DAC amortization expense
     reduction in the third quarter of 2005 compared to a net $23.7 million
     DAC amortization expense reduction in the third quarter of 2004, both
     as a result of IDS Life's annual third quarter review of various DAC
     assumptions and practices. See the DAC section below for further
     discussion of DAC and related third quarter 2005 and 2004 adjustments.

     Separation costs generally consist of allocated financial advisor and
     employee retention program costs, information technology costs,
     re-branding and marketing costs and certain consulting expenses related
     to the separation and distribution of Ameriprise Financial. During the
     quarter ended September 30, 2005, IDS Life was allocated $38.9 million
     in separation costs.

     Other insurance and operating expenses increased $23.7 million or 18
     percent primarily reflecting increased non-deferrable distribution
     costs.

     INCOME TAXES

     IDS Life's effective tax rate was 40 percent during the three months
     ended September 30, 2005 compared to 33 percent in the three months
     ended September 30, 2004. The increased effective tax rate primarily
     reflects a $20 million tax expense applicable to prior years partially
     offset by a $9 million tax benefit related to the finalization of the
     prior year tax return.

     RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004

     Income before accounting change was $342.1 million for the nine months
     ended September 30, 2005 compared to $402.4 million for the nine months
     ended September 30, 2004. The decrease in income before accounting
     change reflects separation costs, higher other insurance and operating
     expenses and amortization of deferred policy acquisition costs,
     partially offset by higher mortality and expense risk and other fees.

     Net income was $342.1 million for the nine months ended September 30,
     2005 compared to $331.8 million for the nine months ended September 30,
     2004. Net income for the nine months ended September 30, 2004 reflects
     the $70.6 million after-tax ($108.6 million pretax) cumulative effect
     of accounting change as a result of IDS Life's adoption of SOP 03-1.
     See "Application of Recently Issued Accounting Standards" section of
     Note 1 to the Consolidated Financial Statements for discussion
     regarding the impact of adoption of SOP 03-1.


                                     14

<PAGE>
<PAGE>

     REVENUES

     Disability income and long-term care insurance premiums increased $8.2
     million or 4 percent reflecting higher disability income insurance
     inforce levels.

     Net investment income increased $19.8 million or 1 percent. The
     increase reflects a $13.9 million pretax gain for 2005 compared to a
     $24.2 million pretax charge in 2004 all related to the liquidation of
     structured investments, partially offset by a $14.5 million decrease
     primarily related to lower interest on mortgage investments and
     $5.7 million lower mark-to-market gains on trading securities and equity
     method investments in hedge funds. The average level of invested assets
     and the average yield on invested assets were comparable in both periods.

     Contractholder and policyholder charges increased $17.5 million or 4
     percent reflecting an increase in the amount of cost of insurance
     charges on variable universal life products, as well as an increase in
     the amount of surrender charges on variable annuity products.

     Mortality and expense risk and other fees increased $33.3 million or 11
     percent reflecting higher average market values of separate account
     assets.

     Net realized gain on investments was $45.9 million for the nine months
     ended September 30, 2005 compared to $18.3 million for the nine months
     ended September 30, 2004. For the nine months ended September 30, 2005,
     $83.8 million of total investment gains were partially offset by $37.9
     million of losses and impairments. Included in these total net
     investment gains and losses were $83.7 million of gross realized gains
     partially offset by $35.4 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.
     Included in net realized gain on investments classified as
     Available-for-Sale for the nine months ended September 30, 2005 were
     gross realized gains and losses of $39.2 million and $14.3 million,
     respectively, related to the sale of all of IDS Life's retained
     interest in a CDO securitization trust, reflecting management's
     decision to continue to improve the investment portfolio's risk profile
     through the liquidation of certain structured investments.

     For the nine months ended September 30, 2004, $40.2 million of total
     investment gains were partially offset by $21.9 million of losses and
     impairments. Included in these total net investment gains and losses
     were $33.9 million of gross realized gains and $11.7 million of gross
     realized losses from sales of securities, as well as $0.1 million of
     other-than-temporary impairment losses on investments, classified as
     Available-for-Sale.

     BENEFITS AND EXPENSES

     Increase in liabilities for future policy benefits for disability
     income and long-term care insurance increased $21.0 million or 24
     percent primarily reflecting inclusion of a $13.3 million maintenance
     reserve adjustment for long-term care insurance.

     Interest credited to account values decreased $9.7 million or 1
     percent, primarily reflecting lower interest crediting rates on annuity
     products, partially offset by higher average accumulation values and
     inforce levels of life insurance products, as well as the effect of
     higher appreciation during the first nine months of 2005 compared to
     the same period a year ago in the S&P on equity indexed annuities.


                                     15

<PAGE>
<PAGE>

     Amortization of DAC increased to $221.8 million for the nine months
     ended September 30, 2005 from $175.2 million for the nine months ended
     September 30, 2004. The increase reflects the first quarter 2004 $65.7
     million pretax DAC valuation benefit reflecting an adjustment
     associated with the lengthening of amortization periods for certain
     insurance and annuity products in conjunction with the adoption of SOP
     03-1, as well as higher insurance and annuity DAC balances, partially
     offset by the impact of IDS Life's annual third quarter review of
     various DAC assumptions and practices. See the DAC section below for
     further discussion of DAC and related third quarter 2005 and 2004
     adjustments.

     Separation costs generally consist of allocated financial advisor and
     employee retention program costs, information technology costs,
     re-branding and marketing costs and certain consulting expenses related
     to the separation and distribution of Ameriprise Financial. For the
     nine months ended September 30, 2005, IDS Life was allocated $64.7
     million in separation costs.

     Other insurance and operating expenses increased $63.9 million or 17
     percent primarily reflecting increased non-deferrable distribution
     costs and business reinvestment initiatives.

     INCOME TAXES

     IDS Life's effective tax rate was 34 percent for the nine months ended
     September 30, 2005, which resulted from relatively lower levels of
     pretax income compared to tax-advantaged items in 2005, partially
     offset by a $20 million tax expense applicable to prior years and a $9
     million tax benefit related to the finalization of the prior year tax
     return. IDS Life's effective tax rate was 34 percent for the nine
     months ended September 30, 2004, which included a reduction in net
     deferred tax assets.

     DEFERRED POLICY ACQUISITION COSTS

     Deferred policy acquisition costs (DAC) represent the costs of
     acquiring new business, principally direct sales commissions and other
     distribution and underwriting costs that have been deferred on the sale
     of annuity and life and health insurance products. These costs are
     deferred to the extent they are recoverable from future profits. For
     insurance and annuity products, DAC are amortized over periods
     approximating the lives of the business, generally as a percentage of
     premiums or estimated gross profits or as a portion of product interest
     margins depending on the product's characteristics.

     For IDS Life's insurance and annuity products, the projections
     underlying the amortization of DAC require the use of certain
     assumptions, including interest margins, mortality rates, persistency
     rates, maintenance expense levels and customer asset value growth rates
     for variable products. Management routinely monitors a wide variety of
     trends in the business, including comparisons of actual and assumed
     experience. The customer asset value growth rate is the rate at which
     contract values are assumed to appreciate in the future. The rate is
     net of asset fees and anticipates a blend of equity and fixed income
     investments. Management reviews and, where appropriate, adjusts its
     assumptions with respect to customer asset value growth rates on a
     quarterly basis.

                                     16

<PAGE>
<PAGE>

     Management monitors other principal DAC assumptions, such as
     persistency, mortality rates, interest margin and maintenance expense
     level assumptions, each quarter. Unless management identifies a
     material deviation over the course of the quarterly monitoring,
     management reviews and updates these DAC assumptions annually in the
     third quarter of each year. When assumptions are changed, the
     percentage of estimated gross profits or portion of interest margins
     used to amortize DAC might also change. A change in the required
     amortization percentage is applied retrospectively; an increase in
     amortization percentage will result in an increase in DAC amortization
     expense while a decrease in amortization percentage will result in a
     decrease in DAC amortization expense. The impact on results of
     operations of changing assumptions with respect to the amortization of
     DAC can be either positive or negative in any particular period and is
     reflected in the period in which such changes are made. As a result of
     these reviews, IDS Life took actions in the third quarters of 2005 and
     2004 that impacted DAC balances and expenses. In the third quarter
     2005, these actions resulted in a net $67.0 million DAC amortization
     expense reduction consisting of the following:

     o  A $31.7 million reduction reflecting changes in previously assumed
        mortality rates.

     o  A $32.8 million reduction reflecting lower than previously assumed
        surrender rates and higher associated surrender charges.

     o  A $6.0 million reduction from improved average fee revenues.

     o  A $5.6 million reduction from the annual extension of the mean
        reversion period by one year.

     o  A $9.1 million increase reflecting changes from previously assumed
        interest rate spreads, modeling changes, account maintenance
        expenses, and other miscellaneous items.

     In the third quarter 2004, these actions resulted in a net $23.7
     million DAC amortization expense reduction consisting of the following:

     o  A $4.2 million reduction reflecting changes in previously assumed
        mortality rates.

     o  A $12.7 million reduction reflecting changes from previously assumed
        surrender and lapse rates.

     o  A $3.3 million reduction from the annual extension of the mean
        reversion period by one year.

     o  A $3.5 million reduction reflecting higher than previously assumed
        interest rate spreads and other miscellaneous items.

     During the first quarter of 2004 and in conjunction with the adoption
     of SOP 03-1, IDS Life (1) established additional liabilities for
     insurance benefits that may become payable under variable annuity death
     benefit guarantees or on single pay universal life contracts, which
     prior to January 1, 2004, were expensed when payable; and (2) extended
     the time periods over which DAC associated with certain insurance and
     annuity products are amortized to coincide with the liability funding
     periods in order to establish the proper relationships between these
     liabilities and DAC associated with the same contracts. As a result,
     IDS Life recognized a $108.6 million pretax charge due to accounting
     change on establishing the future liability under death benefit
     guarantees and recognized a $65.7 million pretax reduction in DAC
     amortization expense to reflect the lengthening of the amortization
     periods for certain products impacted by SOP 03-1.

                                     17

<PAGE>
<PAGE>

     DAC balances for various insurance and annuity products sold by IDS
     Life are set forth below:

<TABLE>
<CAPTION>
                                                 September 30, 2005    December 31, 2004
                                                 ------------------    -----------------
     (millions)                                     (Unaudited)
<S>                                                    <C>                  <C>
     Life and health insurance                         $1,895               $1,766
     Annuities                                          2,049                1,872
                                                       ------               ------
     Total                                             $3,944               $3,638
                                                       ======               ======
</TABLE>

     LIQUIDITY AND CAPITAL RESOURCES

     Risk Management
     IDS Life Insurance Company and its subsidiaries through their
     respective Board of Directors' investment committees or staff
     functions, review models projecting different interest rate scenarios,
     risk/return measures, and their effect on profitability. They also
     review the distribution of assets in the portfolio by type and credit
     risk sector. The objective is to structure the investment security
     portfolios based upon the type and behavior of the liabilities
     underlying the product portfolios to achieve targeted levels of
     profitability within defined risk parameters and to meet contractual
     obligations.

     IDS Life has developed an asset/liability management approach with
     separate investment objectives to support specific product liabilities,
     such as insurance and annuities. As part of this approach, IDS Life
     develops specific investment guidelines that are designed to optimize
     trade-offs between risk and return and help ensure IDS Life is able to
     support future benefit payments under its insurance and annuity
     obligations. These same objectives must be consistent with management's
     overall investment objectives for the general account investment
     portfolio.

     IDS Life's owned investment securities are primarily invested in
     long-term and intermediate-term fixed maturity securities to provide
     clients with a competitive rate of return on their investments while
     controlling risk. Investment in fixed maturity securities is designed
     to provide IDS Life with a targeted margin between the yield earned on
     investments and the interest rate credited to clients' accounts. IDS
     Life does not trade in securities to generate short-term profits for
     its own account.

     As part of IDS Life's investment process, management, with the
     assistance of its investment advisors, conducts a quarterly review of
     investment performance. The review process conducted by IDS Life's
     Investment Committee involves the review of certain invested assets
     which the committee evaluates to determine whether or not any
     investments are other than temporarily impaired and/or which specific
     interest earning investments should be put on an interest non-accrual
     basis.

     Capital Strategy
     The liquidity requirements of IDS Life are generally met by funds
     provided by investment income, maturities and periodic repayments of
     investments, deposits, premiums, 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 ended September 30, 2005.


                                     18

<PAGE>
<PAGE>

     Funding Strategy
     IDS Life, on a consolidated basis, has available lines of credit with
     Ameriprise Financial aggregating $295 million ($195 million committed
     and $100 million uncommitted). There were no line of credit borrowings
     outstanding with Ameriprise Financial at September 30, 2005 and 2004.
     At September 30, 2005, IDS Life had outstanding reverse repurchase
     agreements of $1.5 million. Both the line of credit and the reverse
     repurchase agreements are used strictly as short-term sources of funds.

     Investment securities include $2.2 billion and $2.3 billion of below
     investment grade securities (excluding net unrealized appreciation and
     depreciation) at September 30, 2005 and December 31, 2004,
     respectively. These investments represent 7 percent of IDS Life's
     investment portfolio at September 30, 2005 and December 31, 2004.

     Separate account assets represent funds held for the exclusive benefit
     of variable annuity contractholders and variable life insurance
     policyholders. These assets are generally carried at market value, and
     separate account liabilities are equal to separate account assets. IDS
     Life earns fees from the related accounts.

     As of September 30, 2005, IDS Life continued to hold investments in
     collateralized debt obligations (CDOs), some of which are also managed
     by an affiliate, and were not consolidated pursuant to the adoption of
     FASB Interpretation No. 46 (FIN 46) as IDS Life was not considered the
     primary beneficiary. As an investor in the residual tranche of CDOs,
     IDS Life's return correlates to the performance of portfolios of
     high-yield bonds and/or bank loans comprising the CDOs. IDS Life
     invested in CDOs as part of its investment strategy in order to offer a
     competitive rate to contractholders' accounts. IDS Life's exposure as
     an investor is limited solely to its aggregate investment in the CDOs,
     and it has no obligations or commitments, contingent or otherwise, that
     could require any further funding of such investments. As of September
     30, 2005, the carrying values of the CDO residual tranches, managed by
     an affiliate, were $3.4 million.

     IDS Life's exposure to CDOs and other structured investments, namely
     secured loan trusts (SLTs), was significantly higher in prior periods.
     During the second quarter of 2005, IDS Life sold all of its retained
     interest in a CDO-related securitization trust and realized a pretax
     gain of $24.9 million. The carrying value of this retained interest was
     $526.2 million at December 31, 2004, of which $389.9 million was
     considered investment grade. Additionally, IDS Life liquidated its
     interest in all three SLTs which were previously consolidated under FIN
     46. One SLT was liquidated in 2004, resulting in a cumulative net
     pretax charge of $24.2 million during the year ended December 31, 2004
     and the other two SLTs were liquidated in 2004 and 2005 resulting in a
     $3.7 million pretax charge in 2004 and a $13.9 million pretax gain for
     the nine months ended September 30, 2005. There is no remaining
     exposure related to these SLTs as of September 30, 2005.


                                     19

<PAGE>
<PAGE>

     IMPACT OF MARKET VOLATILITY ON RESULTS OF OPERATIONS

     As discussed above, various aspects of IDS Life's business are impacted
     by equity market levels and other market-based events. Several areas in
     particular involve DAC and deferred sales inducements, recognition of
     guaranteed minimum death benefits (GMDB), guaranteed minimum withdrawal
     benefits (GMWB), guaranteed minimum income benefits (GMIB), guaranteed
     minimum accumulation benefits (GMAB) and certain other variable annuity
     benefits, asset management fees, mortality and expense risk and other
     fees and structured investments. The direction and magnitude of the
     changes in equity markets can increase or decrease amortization of DAC
     and deferred sales inducement benefits, incurred amounts under GMDB,
     GMWB, GMIB, GMAB and other variable annuity benefit provisions and
     asset management fees and mortality and expense risk and other fees and
     correspondingly affect results of operations in any particular period.
     Similarly, the value of IDS Life's structured investment portfolios are
     impacted by various market factors. Persistency of, or increases in,
     bond and loan default rates, among other factors, could result in
     negative adjustments to the market values of these investments in the
     future, which would adversely impact results of operations.

     OTHER REPORTING MATTERS

     Accounting Developments
     See "Application of Recently Issued Accounting Standards" section of
     Note 1 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, evaluated the effectiveness of the
     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 September 30, 2005.

     CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
     American Express has historically provided a variety of corporate and
     other support services for IDS Life, including information technology,
     treasury, accounting, financial reporting, tax administration, human
     resources, marketing, legal, procurement and other services. American
     Express will continue to provide IDS Life with many of these services
     pursuant to a transition services agreement for a transition period of
     up to two years following the separation and distribution. IDS Life is
     now relying upon American Express as a third party to perform these
     services, many of which may impact our financial reporting processes.
     During this transition there have been some changes in personnel and in
     relative responsibility for oversight of the processes. IDS Life
     considers this a material change in internal controls 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, outsourcing (including, among others,
     technologies operations), moving internal and external functions to the
     Internet to save costs, and planned staff reductions relating to certain


                                     21

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     of such reengineering actions; 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 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 deferred
     acquisition costs (DAC), as well as the timing of such DAC
     amortization, in connection with the sale of annuity and insurance
     products, and the level of guaranteed minimum death 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
     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 in IDS Life's
     Annual Report on Form 10-K for the year ended December 31, 2004, and
     its other reports filed with the Securities and Exchange Commission.


                                     22

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PART II - OTHER INFORMATION

IDS LIFE INSURANCE COMPANY

Item 1.  Legal Proceedings

         The Securities and Exchange Commission, the National Association of
         Securities Dealers and several state attorneys general have brought
         proceedings challenging several mutual fund and variable product
         financial practices, generally including suitability, late trading,
         market timing 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 a number of other legal and arbitration
         proceedings concerning matters arising in connection with the
         conduct of its business activities. In addition, IDS Life is subject
         to periodic state insurance department regulatory action, through
         examinations or other proceedings. 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 impact on results of operations in any particular
         reporting period as the proceedings are resolved.

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: November 14, 2005        By   /s/ Mark E. Schwarzmann
                                    -----------------------------------
                                    Mark E. Schwarzmann
                                    Director, Chairman of the Board and
                                    Chief Executive Officer



Date: November 14, 2005        By   /s/ Brian J. McGrane
                                    -----------------------------------
                                    Brian J. McGrane
                                    Executive Vice President and
                                    Chief Financial Officer


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                                EXHIBIT INDEX

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

Exhibit                          Description
-------                          -----------

*10.1   Copy of Gross Administrative Charge Agreement by and between
        Ameriprise Financial, Inc. and RiverSource Investments, LLC, dated
        October 1, 2005.

*10.2   Copy of Investment Management and Services Agreement by and between
        IDS Life Insurance Company and RiverSource Investments, LLC, dated
        October 1, 2005.

*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.

<FN>
*       Filed electronically herewith.

                                     E-1