<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 JUNE 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)

<TABLE>
<S>                                                       <C>
                       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)
</TABLE>


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

829 AXP FINANCIAL CENTER, MINNEAPOLIS, MINNESOTA
------------------------------------------------------------------------------
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
                                                           ---    ---

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 -- June 30, 2005 and
                  December 31, 2004                                       1

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

                  Consolidated Statements of Income -- Six Months
                  Ended June 30, 2005 and 2004                            3

                  Consolidated Statements of Cash Flows --
                  Six Months Ended June 30, 2005 and 2004                 4

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

                  Notes to Consolidated Financial Statements            6-8

         Item 2.  Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                  9-16

         Item 4.  Controls and Procedures                             17-18

PART II. Other Information

         Item 1.  Legal Proceedings                                      19

         Item 6.  Exhibits and Reports on Form 8-K                       19

         Signatures                                                      20

         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>
                                                                                       June 30,              December 31,
                                                                                        2005                     2004
                                                                                     -----------             ------------
                                                                                     (Unaudited)
<S>                                                                                  <C>                     <C>
Assets
------
Investments:
  Available-for-Sale:
    Fixed maturities, at fair value (amortized cost: 2005, $27,060,062;
     2004, $27,400,640)                                                              $27,737,220             $28,131,195
    Preferred and common stocks, at fair value (cost: 2005 and 2004, $30,019)             31,800                  31,256
    Mortgage loans on real estate, at cost (less reserves: 2005, $41,347
     and 2004, $45,347)                                                                2,849,178               2,923,542
    Policy loans                                                                         593,103                 588,574
    Trading and other investments                                                        681,686                 802,096
                                                                                     -----------             -----------
        Total investments                                                             31,892,987              32,476,663

Cash and cash equivalents                                                              1,019,382                 131,427
Restricted cash                                                                          208,310                 535,821
Reinsurance recoverables                                                                 947,956                 876,408
Amounts due from brokers                                                                  43,742                   7,109
Other accounts receivable                                                                 57,526                  52,527
Accrued investment income                                                                338,501                 351,522
Deferred policy acquisition costs                                                      3,748,720               3,637,956
Deferred sales inducement costs                                                          329,671                 302,997
Other assets                                                                             118,712                 259,600
Separate account assets                                                               33,821,783              32,454,032
                                                                                     -----------             -----------
        Total assets                                                                 $72,527,290             $71,086,062
                                                                                     ===========             ===========

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

Liabilities:
  Future policy benefits:
    Fixed annuities                                                                  $26,697,459             $26,978,596
    Variable annuity guarantees                                                           31,966                  32,955
    Universal life insurance                                                           3,707,431               3,689,639
    Traditional life insurance                                                           283,783                 271,516
    Disability income and long-term care insurance                                     2,049,625               1,942,656
  Policy claims and other policyholders' funds                                            79,655                  69,884
  Amounts due to brokers                                                                 246,275                 162,609
  Deferred income taxes, net                                                             166,745                 141,202
  Other liabilities                                                                      346,672                 437,418
  Separate account liabilities                                                        33,821,783              32,454,032
                                                                                     -----------             -----------
        Total liabilities                                                             67,431,394              66,180,507
                                                                                     -----------             -----------

Stockholder's equity:
  Capital stock, $30 par value;
    100,000 shares authorized, issued and outstanding                                      3,000                   3,000
  Additional paid-in capital                                                           1,370,388               1,370,388
  Retained earnings                                                                    3,407,479               3,190,474
  Accumulated other comprehensive income, net of tax:
    Net unrealized securities gains                                                      351,959                 370,615
    Net unrealized derivative losses                                                     (36,930)                (28,922)
                                                                                     -----------             -----------
      Total accumulated other comprehensive income                                       315,029                 341,693
                                                                                     -----------             -----------
        Total stockholder's equity                                                     5,095,896               4,905,555
                                                                                     -----------             -----------
  Total liabilities and stockholder's equity                                         $72,527,290             $71,086,062
                                                                                     ===========             ===========


                                     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
                                                                               June 30,
                                                                      --------------------------
                                                                        2005              2004
                                                                      --------          --------
<S>                                                                   <C>               <C>
Revenues:
  Premiums:
    Traditional life insurance                                        $ 19,267          $ 17,003
    Disability income and long-term care insurance                      72,776            70,268
                                                                      --------          --------
      Total premiums                                                    92,043            87,271

  Net investment income                                                422,922           464,644
  Contractholder and policyholder charges                              142,757           138,181
  Mortality and expense risk and other fees                            108,390           101,740
  Net realized gain on investments                                      37,645             8,867
                                                                      --------          --------
      Total                                                            803,757           800,703
                                                                      --------          --------

Benefits and Expenses:
  Death and other benefits:
    Traditional life insurance                                           8,511             9,528
    Investment contracts and universal life-type insurance              66,437            58,474
    Disability income and long-term care insurance                      19,022            16,178
  Increase in liabilities for future policy benefits:
    Traditional life insurance                                           1,472               649
    Disability income and long-term care insurance                      29,969            34,566
  Interest credited to account values                                  280,359           280,009
  Amortization of deferred policy acquisition costs                     98,193            88,206
  Separation costs                                                      25,772                 -
  Other insurance and operating expenses                               148,171           119,824
                                                                      --------          --------
      Total                                                            677,906           607,434
                                                                      --------          --------
Income before income tax provision                                     125,851           193,269
Income tax provision                                                    34,387            70,165
                                                                      --------          --------

Net income                                                            $ 91,464          $123,104
                                                                      ========          ========

                         See Notes to Consolidated Financial Statements
</TABLE>

                                      2


<PAGE>
<PAGE>

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

<CAPTION>
                                                                                Six Months Ended
                                                                                    June 30,
                                                                        --------------------------------
                                                                           2005                  2004
                                                                        ----------            ----------
<S>                                                                     <C>                   <C>
Revenues:
  Premiums:
    Traditional life insurance                                          $   36,757            $   34,054
    Disability income and long-term care insurance                         144,119               138,366
                                                                        ----------            ----------
      Total premiums                                                       180,876               172,420

  Net investment income                                                    881,710               879,817
  Contractholder and policyholder charges                                  285,814               274,384
  Mortality and expense risk and other fees                                223,168               208,982
  Net realized gain on investments                                          37,839                17,513
                                                                        ----------            ----------
      Total                                                              1,609,407             1,553,116
                                                                        ----------            ----------

Benefits and Expenses:
  Death and other benefits:
    Traditional life insurance                                              20,580                20,090
    Investment contracts and universal life-type insurance                 118,724               116,707
    Disability income and long-term care insurance                          36,199                31,536
  Increase (decrease) in liabilities for future policy benefits:
    Traditional life insurance                                               2,410                  (616)
    Disability income and long-term care insurance                          59,566                54,686
  Interest credited to account values                                      553,621               563,080
  Amortization of deferred policy acquisition costs                        197,275               111,784
  Separation costs                                                          25,772                     -
  Other insurance and operating expenses                                   285,695               245,412
                                                                        ----------            ----------
      Total                                                              1,299,842             1,142,679
                                                                        ----------            ----------
Income before income tax provision and accounting change                   309,565               410,437
Income tax provision                                                        92,560               140,536
                                                                        ----------            ----------
Income before accounting change                                            217,005               269,901
Cumulative effect of accounting change, net of tax (Note 1)                      -               (70,568)
                                                                        ----------            ----------

Net income                                                              $  217,005            $  199,333
                                                                        ==========            ==========

                             See Notes to Consolidated Financial Statements
</TABLE>

                                      3


<PAGE>
<PAGE>

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

<CAPTION>
                                                                                          Six Months Ended
                                                                                              June 30,
                                                                                 --------------------------------
                                                                                     2005                 2004
                                                                                 -----------          -----------
<S>                                                                              <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income                                                                     $   217,005          $   199,333
  Adjustments to reconcile net income to net cash provided by operating
   activities:
    Policy loans, excluding universal life-type insurance
      Repayment                                                                       18,265               19,370
      Issuance                                                                       (18,500)             (19,101)
    Change in reinsurance recoverables                                               (71,548)             (54,109)
    Change in other accounts receivable                                               (4,999)              (4,148)
    Change in accrued investment income                                               13,021                9,528
    Change in deferred policy acquisition costs, net                                (106,155)            (151,457)
    Change in deferred sales inducement costs, net                                   (25,858)             (20,112)
    Change in liabilities for future policy benefits for traditional
     life, disability income and long-term care insurance                            119,236              100,690
    Change in policy claims and other policyholders' funds                             9,771               14,089
    Deferred income taxes                                                             39,900               32,367
    Change in other assets and liabilities, net                                       47,587               48,803
    Amortization of premium, net                                                      46,370               43,069
    Net realized gain on investments                                                 (37,839)             (17,513)
    Trading securities and equity method investments in hedge funds, net             116,791              (29,345)
    Net realized gain on trading securities                                           (4,962)             (16,087)
    Contractholder and policyholder charges, non-cash                               (115,827)            (115,062)
    Cumulative effect of accounting change, net of tax (Note 1)                            -               70,568
                                                                                  -----------          -----------
  NET CASH PROVIDED BY OPERATING ACTIVITIES                                          242,258              110,883
                                                                                 -----------          -----------

CASH FLOWS FROM INVESTING ACTIVITIES
  Available-for-Sale securities:
    Sales                                                                          1,907,590              795,643
    Maturities, sinking fund payments and calls                                      887,324            1,026,235
    Purchases                                                                     (2,458,636)          (2,041,103)
  Other investments, excluding policy loans:
    Sales, maturities, sinking fund payments and calls                               308,521              307,311
    Purchases                                                                       (227,876)            (198,010)
  Change in amounts due to and from brokers, net                                      47,033              (36,033)
  Change in restricted cash                                                          327,511               10,929
                                                                                 -----------          -----------
  NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES                                791,467             (135,028)
                                                                                 -----------          -----------
CASH FLOWS FROM FINANCING ACTIVITIES
  Activity related to investment contracts and universal life-type
   insurance:
    Considerations received                                                          883,552            1,127,947
    Interest credited to account values                                              553,621              563,080
    Surrenders and other benefits                                                 (1,578,649)          (1,400,677)
  Universal life-type insurance policy loans:
    Repayment                                                                         46,477               46,102
    Issuance                                                                         (50,771)             (46,397)
  Cash dividend to parent                                                                  -             (430,000)
                                                                                 -----------          -----------
  NET CASH USED IN FINANCING ACTIVITIES                                             (145,770)            (139,945)
                                                                                 -----------          -----------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                 887,955             (164,090)
Cash and cash equivalents at beginning of period                                     131,427              400,294
                                                                                 -----------          -----------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                       $ 1,019,382          $   236,204
                                                                                 ===========          ===========

SUPPLEMENTAL DISCLOSURES:
  Income taxes paid                                                              $    99,798          $    83,261
  Interest paid on borrowings                                                    $        63          $       379


                                  See Notes to Consolidated Financial Statements
</TABLE>

                                      4



<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 loss:
  Net income                                     199,333                                                               199,333
  Change in net unrealized holding
   gains on Available-for-Sale
   securities, net of reclassification
   adjustments and other adjustments
   to deferred policy acquisition costs,
   deferred sales inducement costs and
   fixed annuity liabilities, net of
   related deferred income taxes                (368,405)                                           (368,405)
  Reclassification adjustment for
   gains on derivatives included in
   net income, net of related
   deferred income taxes                         (12,227)                                            (12,227)
                                               ---------
  Total comprehensive loss                      (181,299)
  Dividends to parent                           (430,000)                                                             (430,000)
-------------------------------------------------------------------------------------------------------------------------------

Balances at June 30, 2004                     $4,786,537        $3,000         $1,370,388          $  18,979        $3,394,170
===============================================================================================================================

Balances at December 31, 2004                 $4,905,555        $3,000         $1,370,388          $ 341,693        $3,190,474
Comprehensive income:
  Net income                                     217,005                                                               217,005
  Change in net unrealized holding
   gains on Available-for-Sale
   securities, net of reclassification
   adjustments and other adjustments
   to deferred policy acquisition costs,
   deferred sales inducement costs and
   fixed annuity liabilities, net of
   related deferred income taxes                 (18,656)                                            (18,656)
  Reclassification adjustment for
   gains on derivatives included in
   net income, net of related
   deferred income taxes                          (8,008)                                             (8,008)
                                               ---------
Total comprehensive income                       190,341
-------------------------------------------------------------------------------------------------------------------------------

Balances at June 30, 2005                     $5,095,896        $3,000         $1,370,388          $ 315,029        $3,407,479
===============================================================================================================================


                                        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 (AEFC). Ameriprise Financial is a wholly owned subsidiary
     of American Express Company (American Express).

     Ameriprise Financial changed its name on August 1, 2005 as a
     consequence of the plans announced by American Express on February 1,
     2005, to pursue a spin off of the businesses now being operated under
     the Ameriprise Financial name. The separation from American Express is
     expected to be completed on or after September 30, 2005, subject to
     certain regulatory and other approvals, including final approval by the
     board of directors of American Express. After the expected separation
     from American Express, Ameriprise Financial and its subsidiaries will
     no longer be affiliated with American Express. Ameriprise Financial and
     American Express will be independent companies, with separate public
     ownership, boards of directors and management.

     In connection with the separation, IDS Life will be allocated certain
     separation and distribution-related expenses incurred as a result of
     Ameriprise Financial becoming an independent company. Cumulatively, the
     expenses allocated to IDS Life are expected to be significant to IDS
     Life. Ameriprise Financial will provide additional capital to IDS Life
     to support its current financial strength ratings.

     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. During the quarter
     ended June 30, 2005, IDS Life recorded $25.8 million in allocated
     separation costs. Had this allocation method been applied for the
     quarter ended March 31, 2005, approximately $6.7 million of these costs
     would have been charged to IDS Life during that period. Separation
     costs generally consist of 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.

                                     6

<PAGE>
<PAGE>

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


     Application of Recently Issued Accounting Standards
     ---------------------------------------------------
     In July 2003, the American Institute of Certified Public Accountants
     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.

     In November 2003, the Financial Accounting Standards Board (FASB)
     ratified a consensus on the disclosure provisions of Emerging Issues
     Task Force (EITF) Issue 03-1, "The Meaning of Other-Than-Temporary
     Impairment and Its Application to Certain Investments" (EITF 03-1). IDS
     Life complied with the disclosure provisions of this rule in Note 2 to
     the Consolidated Financial Statements included in its Annual Report on
     Form 10-K for the years ended December 31, 2004 and 2003. In March
     2004, the FASB reached a consensus regarding the application of a
     three-step impairment model to determine whether investments accounted
     for in accordance with SFAS No. 115, "Accounting for Certain
     Investments in Debt and Equity Securities" (SFAS No. 115), and other
     cost method investments are other-than-temporarily impaired. However,
     with the issuance of FASB Staff Position (FSP) No. EITF 03-1-1,
     "Effective Date of Paragraphs 10-20 of EITF 03-1," on September 30,
     2004, the provisions of the consensus relating to the measurement and
     recognition of other-than-temporary impairments will be deferred
     pending further clarification from the FASB. The remaining provisions
     of this rule, which primarily relate to disclosure requirements, are
     required to be applied prospectively to all current and future
     investments accounted for in accordance with SFAS No. 115 and other
     cost method investments. IDS Life will evaluate the potential impact of
     EITF 03-1 after the FASB completes its reassessment.


                                     7

<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 six months ended June 30:

<TABLE>
<CAPTION>
                                                         Three Months Ended                 Six Months Ended
                                                              June 30,                          June 30,
                                                       ----------------------            ----------------------
                                                         2005          2004                2005          2004
                                                       --------       -------            --------       -------
     (Thousands)
<S>                                                    <C>            <C>                <C>           <C>
     Gross realized gains on sales                     $ 63,529       $ 10,543           $ 72,363      $ 23,769
     Gross realized (losses) on sales                  $(24,153)      $ (2,663)          $(32,247)     $ (6,389)
     Realized (losses) recognized for
      other-than-temporary impairments                 $      -       $      -           $   (636)     $   (130)
</TABLE>

3.   COMMITMENTS AND CONTINGENCIES

     At June 30, 2005 and December 31, 2004, IDS Life had commitments to
     fund mortgage loans on real estate of $217 million and $92.5 million,
     respectively.

     The Securities and Exchange Commission (SEC), the National Association
     of Securities Dealers (NASD) and several state attorneys general have
     brought proceedings challenging several mutual fund and variable
     account financial practices, generally including suitability, late
     trading, market timing, disclosure of revenue sharing arrangements and
     inappropriate sales of B shares. IDS Life and its subsidiaries have
     received requests for information and have been contacted by regulatory
     authorities concerning its practices and is cooperating fully with
     these inquiries.

     IDS Life and its subsidiaries are involved in a number of other legal
     and arbitration proceedings concerning matters arising in connection
     with the conduct of their respective business activities. IDS Life
     believes it has meritorious defenses to each of these actions and
     intends to defend them vigorously. IDS Life believes that it is not a
     party to, nor are any of its properties the subject of, any pending
     legal or arbitration proceedings that would have a material adverse
     effect on IDS Life's 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 is
     currently conducting an audit 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 as a result of these audits.

                                     8

<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 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 (AEFC). Ameriprise Financial is
     a wholly owned subsidiary of American Express Company (American
     Express).

     Ameriprise Financial changed its name on August 1, 2005 as a
     consequence of the plans announced by American Express on February 1,
     2005, to pursue a spin off of the businesses now being operated under
     the Ameriprise Financial name. The separation from American Express is
     expected to be completed on or after September 30, 2005, subject to
     certain regulatory and other approvals, including final approval by the
     board of directors of American Express. After the expected separation
     from American Express, Ameriprise Financial and its subsidiaries will
     no longer be affiliated with American Express. Ameriprise Financial and
     American Express will be independent companies, with separate public
     ownership, boards of directors and management.

     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. (formerly
     known as American Express Financial Advisors Inc. (AEFAI)) 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 Ameriprise
     Financial Services, Inc. retail sales force. American Enterprise Life
     provides clients of financial institutions and regional and/or
     independent broker-dealers with financial products and wholesaling
     services to support its retail insurance and annuity operations.
     American Enterprise Life underwrites fixed and variable annuity
     contracts primarily through regional and national financial
     institutions and regional and/or independent broker-dealers, in all
     states except 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. IDS Life Insurance Company and its
     six subsidiaries are referred to collectively as "IDS Life" in this
     Form 10-Q.

     In connection with the separation, American Express has indicated that
     it will provide additional capital to Ameriprise Financial of
     approximately $1 billion. This capital contribution is intended to
     provide adequate support for Ameriprise Financial's senior debt rating
     on the distribution date, to allow Ameriprise Financial to have
     efficient access to the capital markets, and to support the current
     financial strength ratings of Ameriprise Financial's insurance
     subsidiaries.

                                     9

<PAGE>
<PAGE>

     IDS Life will be allocated certain separation and distribution-related
     expenses incurred as a result of Ameriprise Financial becoming an
     independent company. Cumulatively, the expenses allocated to IDS Life
     are expected to be significant to IDS Life. Ameriprise Financial will
     provide additional capital to IDS Life to support its current financial
     strength ratings.

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

     Certain of the statements below are forward-looking statements within
     the meaning of the Private Securities Litigation Reform Act of 1995.
     See the Forward-Looking Statements section below.

     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(1) (a) of Form 10-Q.

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

     Net income was $91.5 million for the three months ended June 30, 2005,
     compared to $123.1 million for the three months ended June 30, 2004.
     The decrease in net income primarily reflects separation costs and
     higher insurance and operating expenses partially offset by a lower
     effective tax rate, as further described below.

     The effective tax rate decreased to 27 percent in the three months
     ended June 30, 2005 from 36 percent in the three months ended June 30,
     2004 reflecting higher dividend exclusions and other tax-advantaged
     items. The effective tax rate in the three months ended June 30, 2004
     included a reduction in net deferred tax assets which increased the
     effective rate.

     REVENUES

     Net investment income decreased $41.7 million or 9 percent primarily
     reflecting a decline in overall investment yields and a lower benefit
     related to the liquidation of structured investments. More
     specifically, net investment income for the current quarter includes a
     $4.8 million benefit on the liquidation of structured investments
     compared to an $18.4 million benefit in the same period a year ago.

     Contractholder and policyholder charges increased $4.6 million or
     3 percent reflecting an increase in the amount of cost of insurance
     charges on variable universal life products, as well as a slight
     increase in the amount of surrender charges on variable annuity
     products.

     Mortality and expense risk and other fees increased $6.7 million or
     7 percent reflecting higher average market values of separate account
     assets.


                                     10

<PAGE>
<PAGE>

     Net realized gain on investments was $37.6 million for the three months
     ended June 30, 2005 compared to $8.9 million for the three months ended
     June 30, 2004. For the three months ended June 30, 2005, $63.6 million
     of total investment gains were partially offset by $26.0 million of
     losses and impairments. Included in these total net investment gains
     and losses were $63.5 million of gross realized gains partially offset
     by $24.2 million of gross realized losses from sales of securities,
     classified as Available-for-Sale. Included in net realized gain on
     investments classified as Available-for-Sale for the three months ended
     June 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 collateralized debt obligation (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 three months ended June 30, 2004, $11.6 million of total
     investment gains were partially offset by $2.7 million of losses.
     Included in these total net investment gains and losses were $10.5
     million of gross realized gains and $2.7 million of gross realized
     losses from sales of securities, classified as Available-for-Sale.

     BENEFITS AND EXPENSES

     Death and other benefits for investment contracts and universal
     life-type insurance increased $8 million or 14 percent primarily
     related to guaranteed minimum withdrawal benefit (GMWB) riders on
     variable annuity contracts.

     Amortization of deferred policy acquisition costs (DAC) increased to
     $98.2 million for the three months ended June 30, 2005 from $88.2
     million for the three months ended June 30, 2004. The increase
     primarily reflects higher insurance and annuity DAC balances and the
     impact on amortization of improved equity markets for the three months
     ended June 30, 2005. These increases were partially offset by a
     decrease of $2 million in DAC amortization related to the quarterly
     recalculation of benefit ratios which are used to estimate the cost of
     certain variable annuity guarantee features.

     Separation costs generally consist of 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 June 30, 2005, IDS Life recorded $25.8 million in allocated
     separation costs.

     Other insurance and operating expenses increased $28.3 million or 24
     percent primarily reflecting a $20 million increase in non-deferrable
     distribution costs due to increased sales related costs and other
     spending through our distribution channel.

     RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2005 AND 2004

     Income before accounting change was $217 million for the six months
     ended June 30, 2005, compared to $269.9 million for the six months
     ended June 30, 2004. The decrease in income before accounting change
     primarily reflects higher amortization of deferred policy acquisition
     costs and separation costs partially offset by a lower effective tax
     rate, as further described below.

                                     11

<PAGE>
<PAGE>

     Net income was $217 million for the six months ended June 30, 2005
     compared to $199.3 million for the six months ended June 30, 2004. Net
     income for the six months ended June 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.

     The effective tax rate decreased to 30 percent in the six months ended
     June 30, 2005 from 34 percent in the six months ended June 30, 2004
     reflecting higher dividend exclusions and other tax-advantaged items.
     The effective tax rate in the six months ended June 30, 2004 included a
     reduction in net deferred tax assets which increased the effective
     rate.

     REVENUES

     Disability income and long-term care insurance premiums increased
     $5.8 million or 4 percent reflecting higher disability income insurance
     inforce levels as well as a $1.6 million (net of reinsurance) increase
     in long-term care premiums as a result of rate increases implemented
     during the first six months of 2005.

     Contractholder and policyholder charges increased $11.4 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 $14.2 million or
     7 percent reflecting higher average market values of separate account
     assets.

     Net realized gain on investments was $37.8 million for the six months
     ended June 30, 2005 compared to $17.5 million for the six months ended
     June 30, 2004. For the six months ended June 30, 2005, $72.5 million of
     total investment gains were partially offset by $34.7 million of
     losses and impairments. Included in these total net investment gains
     and losses were $72.4 million of gross realized gains partially offset
     by $32.2 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 six months
     ended June 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 six months ended June 30, 2004, $26.5 million of total
     investment gains were partially offset by $9.0 million of losses and
     impairments. Included in these total net investment gains and losses
     were $23.7 million of gross realized gains and $6.4 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

     Interest credited to account values decreased $9.5 million or
     2 percent, primarily reflecting lower interest crediting rates on
     annuity products and the effect of depreciation during the current
     period versus appreciation in the same period a year ago in the S&P 500
     on equity index annuities, partially offset by higher life insurance
     inforce levels and average annuity accumulation values.

                                     12

<PAGE>
<PAGE>

     Amortization of deferred policy acquisition costs (DAC) increased to
     $197.3 million for the six months ended June 30, 2005 from $111.8
     million for the six months ended June 30, 2004 primarily reflecting 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.

     Separation costs generally consist of 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 2005, IDS Life
     recorded $25.8 million in allocated separation costs.

     Other insurance and operating expenses increased $40.3 million or
     16 percent reflecting a $26.6 million increase in non-deferrable
     distribution costs due to increased sales related costs and other
     spending through our distribution channel.

     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.

     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.

                                     13

<PAGE>
<PAGE>

     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.

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

<TABLE>
<CAPTION>
     (Millions)                             June 30, 2005    December 31, 2004
                                            -------------    -----------------
                                             (Unaudited)

<S>                                            <C>                <C>
     Life and health insurance                 $1,807             $1,766
     Annuities                                  1,942              1,872
                                               ------             ------
     Total                                     $3,749             $3,638
                                               ======             ======
</TABLE>

     LIQUIDITY AND CAPITAL RESOURCES

     Risk Management
     IDS Life 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 products 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 annuity. As part of this approach, IDS Life
     develops specific investment guidelines outlining the minimum required
     investment return and liquidity requirements 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.

                                     14

<PAGE>
<PAGE>

     Capital Strategy
     The liquidity requirements of IDS Life are generally met by funds
     provided by deposits, premiums, investment income, proceeds from sales
     of investments as well as maturities and periodic repayments of
     investments and 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.

     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). At June 30, 2005, there were no line of
     credit borrowings outstanding with Ameriprise Financial and no
     outstanding reverse repurchase agreements. 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, $2.3 billion and $2.7
     billion of below investment grade securities (excluding net unrealized
     appreciation and depreciation) at June 30, 2005, December 31, 2004 and
     June 30, 2004, respectively. These investments represent 7 percent, 7
     percent and 9 percent of IDS Life's investment portfolio at June 30,
     2005, December 31, 2004 and June 30, 2004, respectively.

     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.

     During the second quarter 2005, IDS Life sold all of its retained
     interest in a CDO securitization trust and recognized a net realized
     gain of $24.9 million. As of December 31, 2004, the carrying value of
     this retained interest was $526.2 million of which $389.9 million was
     considered investment grade.

     As of June 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
     FIN 46 as IDS Life was not considered the primary beneficiary. 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 June 30,
     2005, the carrying values of the CDO residual tranches, managed by an
     affiliate, were $3.2 million. CDOs are illiquid investments. 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.

                                     15

<PAGE>
<PAGE>

     The carrying value of the CDO residual tranches, as well as derivatives
     recorded on the balance sheet as a result of consolidating the two
     secured loan trusts (SLTs), which are in the process of being
     liquidated, and IDS Life's projected return are based on discounted
     cash flow projections that require a significant degree of management
     judgment as to assumptions primarily related to default and recovery
     rates of the high-yield bonds and/or bank loans either held directly by
     the CDOs or in the reference portfolio of the SLTs and, as such, are
     subject to change. Although the exposure associated with IDS Life's
     investment in CDOs is limited to the carrying value of such
     investments, the CDOs have significant volatility associated with them
     because the amount of the initial value of the loans and/or other debt
     obligations in the related portfolios is significantly greater than IDS
     Life's exposure. In the event of significant deterioration of a
     portfolio, the relevant CDO may be subject to early liquidation, which
     could result in further deterioration of the investment return or, in
     severe cases, loss of the CDO carrying amount. The derivatives recorded
     as a result of consolidating and now liquidating certain SLTs under FIN
     46 are primarily valued based on the expected gains and losses from
     liquidating a reference portfolio of high-yield loans. The overall
     exposure to loss related to these derivatives is represented by the
     pretax net assets of the SLTs, which is $164.6 million at June 30,
     2005. However, because the portfolio has been substantially liquidated,
     the net assets within the structure is cash and cash equivalents and,
     as a result, the overall market exposure is considered negligible.

     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) and certain other variable annuity benefits, asset
     management 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 and other variable annuity benefit provisions and asset
     management 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.

                                     16

<PAGE>
<PAGE>

     ITEM 4.  CONTROLS AND PROCEDURES

     IDS Life's management, with the participation of IDS Life's Chief
     Executive Officer and Chief Financial Officer, has evaluated the
     effectiveness of IDS Life's disclosure controls and procedures (as such
     term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities
     Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of
     the period covered by this report. Based on such evaluation, IDS Life's
     Chief Executive Officer and Chief Financial Officer have concluded
     that, as of the end of such period, IDS Life's disclosure controls and
     procedures are effective. There have not been any 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 that 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: 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
     Policy Acquisition Costs (DAC), as well as the timing of such DAC
     amortization, in connection with the sale of annuity and insurance
     products; changes in assumptions relating to DAC, which could impact
     the amount of DAC amortization; the ability to improve investment
     performance in IDS Life's businesses, including attracting and
     retaining high-quality personnel; the success, timeliness and financial
     impact, including costs, cost savings and other benefits including
     increased revenues, of reengineering initiatives being implemented or
     considered by IDS Life, including cost management, structural and
     strategic measures such as vendor, process, facilities and operations
     consolidation, outsourcing (including, among others, technologies
     operations), relocating certain functions to lower-cost overseas
     locations, moving internal and external functions to the Internet to
     save costs, and planned staff reductions relating to certain of such
     reengineering actions; the ability to control and manage operating,
     infrastructure, advertising and promotion and other expenses as
     business expands or changes, including balancing the need for
     longer-term investment spending; 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; IDS Life's ability to develop and roll out new and attractive
     products to clients in a timely manner; successfully cross-selling
     insurance and annuity products and services to Ameriprise Financial's
     customer base; fluctuations in interest rates, which impacts IDS Life's
     spreads in the insurance and annuity businesses; credit trends and the
     rate of bankruptcies which can affect returns on IDS Life's investment
     portfolios; lower than anticipated spreads in the insurance and annuity
     business; the types and the value of certain death 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 to protect IDS Life against
     losses; negative changes in IDS Life Insurance Company's and its four
     life insurance company subsidiaries' credit ratings; increasing
     competition in all of IDS Life's insurance and annuity business; the
     adoption of recently issued rules related to the consolidation of
     variable interest entities, including those involving SLTs that IDS
     Life invests in which could affect both IDS Life's financial condition
     and results of operations; changes in laws or government regulations;
     outcomes associated with litigation and compliance and regulatory
     matters. A further description of these and other risks and

                                     17


<PAGE>
<PAGE>

     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 (SEC).

                                     18


<PAGE>
<PAGE>


PART II - OTHER INFORMATION

IDS LIFE INSURANCE COMPANY

Item 1.  Legal Proceedings

         The Securities and Exchange Commission (SEC), the National
         Association of Securities Dealers (NASD) and several state
         attorneys general have brought proceedings challenging several
         mutual fund and variable account financial practices, generally
         including suitability, late trading, market timing, disclosure of
         revenue sharing arrangements and inappropriate sales of B shares.
         IDS Life and its subsidiaries have received requests for
         information and have been contacted by regulatory authorities
         concerning its practices and is cooperating fully with these
         inquiries.

         IDS Life and its subsidiaries are involved in a number of other
         legal and arbitration proceedings concerning matters arising in
         connection with the conduct of their respective business
         activities. IDS Life believes it has meritorious defenses to each
         of these actions and intends to defend them vigorously. IDS Life
         believes that it is not a party to, nor are any of its properties
         the subject of, any pending legal or arbitration proceedings that
         would have a material adverse effect on IDS Life's 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 and Reports on Form 8-K

         (a) Exhibits

             See Exhibit Index on page E-1 hereof.

         (b) Reports on Form 8-K.

             Form 8-K, filed May 23, 2005, item 5.02, reporting that on May
             18, 2005, Arthur H. Berman resigned his position as Executive
             Vice President - Finance of the Company. Mr. Berman resigned
             to assume the role of Senior Vice President and Treasurer of
             American Express Financial Advisors, Inc. (n/k/a Ameriprise
             Financial Services, Inc.) and American Express Financial
             Corporation (n/k/a Ameriprise Financial, Inc.) and not due to
             any disagreements with the Board, auditors or officers of the
             Company. In the interim period, Jeryl A. Millner will assume the
             role of Executive Vice President - Finance of the company until
             the board of the Company can appoint a new Executive Vice
             President - Finance. Mr. Berman will continue to serve upon the
             board of the Company.


                                     19

<PAGE>
<PAGE>

                                 SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                      IDS LIFE INSURANCE COMPANY
                                      --------------------------
                                             (Registrant)



Date: August 11, 2005                  By /s/ Mark E. Schwarzmann
                                          ------------------------------------
                                          Mark E. Schwarzmann
                                          Director, Chairman of the Board and
                                          Chief Executive Officer



Date: August 11, 2005                  By /s/ Jeryl A. Millner
                                          ------------------------------------
                                          Jeryl A. Millner
                                          Executive Vice President-Finance and
                                          Chief Financial Officer


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                                EXHIBIT INDEX

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

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

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

 31.2       Certification of Jeryl A. Millner pursuant to Rule 13a-14(a)
            promulgated under the Securities Exchange Act of 1934, as
            amended.

 32.1       Certification of Mark E. Schwarzmann and Jeryl A. Millner pursuant
            to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
            of the Sarbanes-Oxley Act of 2002.


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