UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

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

(Mark one)

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

                For the quarterly period ended September 30, 2002

                                       OR

[ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR  15(d)  OF THE  SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from                                     to

                         Commission file number 33-28976

                           IDS LIFE INSURANCE COMPANY
           ----------------------------------------------------------
             (Exact name of registrant as specified in its charter)


         MINNESOTA                                               41-0823832
--------------------------------                             ------------------
(State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                              Identification No.)


 AXP FINANCIAL CENTER, MINNEAPOLIS, MINNESOTA                        55474
-------------------------------------------------                -------------
   (Address of principal executive offices)                       (Zip Code)


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

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No

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

                           IDS LIFE INSURANCE COMPANY

                                    FORM 10-Q

                    For the Quarter Ended September 30, 2002

                                Table of Contents

PART I - FINANCIAL INFORMATION                                             Page
                                                                           ----

      Item 1. Financial Statements

              Consolidated Balance Sheets as of
              September 30, 2002 (unaudited) and
              December 31, 2001                                            3 - 4

              Consolidated Statements of Income for the
              three and nine months ended September 30, 2002
              and 2001 (unaudited)                                         5 - 6

              Consolidated Statements of Cash Flows for the
              nine months ended September 30, 2002 and 2001
              (unaudited)                                                  7 - 8

              Notes to Consolidated Financial Statements
              (unaudited)                                                 9 - 11

              Item 2. Management's Discussion and Analysis of
              Consolidated Financial Condition and
              Results of Operations                                      12 - 16

PART II - OTHER INFORMATION                                              17 - 21

SIGNATURES                                                                    22

EXHIBITS                                                                 23 - 28
<PAGE>

                                   IDS LIFE INSURANCE COMPANY
                                   CONSOLIDATED BALANCE SHEETS
                                         (In thousands)
<TABLE>
<CAPTION>
                                                               September 30,        December 31,
ASSETS                                                             2002                 2001
------
                                                                (unaudited)
                                                              ----------------     ---------------
Investments:
    Available for sale:
       Fixed maturities, at fair value (Amortized cost:
<S>                                                               <C>                <C>
            2002, $21,182,407; 2001, $20,022,072)                 $22,018,437        $20,157,137
       Common stocks, at fair value (Cost: 2002,
            $21,451; 2001, $805)                                       22,133              1,704
    Mortgage loans on real estate                                   3,497,425          3,680,394
    Policy loans                                                      595,880            619,571
    Other investments                                                 734,489            621,897
                                                                  -----------        -----------

                  Total investments                                26,868,364         25,080,703

Cash and cash equivalents                                           1,900,655          1,150,251

Amounts recoverable from reinsurers                                   602,035            529,166

Amounts due from brokers                                              899,623             90,794

Other accounts receivable                                              53,513             46,349

Accrued investment income                                             268,521            278,199

Deferred policy acquisition costs                                   3,267,436          3,107,187

Deferred income taxes                                                      --            156,308

Other assets                                                          113,609            123,246

Separate account assets                                            21,069,961         27,333,697
                                                                  -----------        -----------

                  Total assets                                    $55,043,717        $57,895,900
                                                                  ===========        ===========

</TABLE>
                                      See accompanying notes.

                                      -3-
<PAGE>

                                      IDS LIFE INSURANCE COMPANY
                                      CONSOLIDATED BALANCE SHEETS
                                 (In thousands, except share amounts)
                                              (continued)

<TABLE>
<CAPTION>
                                                                September 30,           December 31,
LIABILITIES AND STOCKHOLDER'S EQUITY                                 2002                   2001
------------------------------------
                                                                   (unaudited)
                                                               -----------------      ------------------
Liabilities:
    Future policy benefits:
<S>                                                               <C>                     <C>
       Fixed annuities                                            $22,316,337             $19,592,273
       Universal life-type insurance                                3,485,140               3,433,904
       Traditional life insurance                                     245,158                 241,165
       Disability income and
           long-term care insurance                                 1,401,701               1,227,172
    Policy claims and other
       policyholders' funds                                            97,242                  71,879
    Amounts due to brokers                                          1,203,998               1,740,031
    Deferred income taxes                                             130,420                      --
    Other liabilities                                                 373,942                 437,017
    Separate account liabilities                                   21,069,961              27,333,697
                                                                  ------------            ------------

                      Total liabilities                            50,323,899              54,077,138
                                                                  ------------            ------------

Stockholder's equity:
    Capital stock, $30 par value per share;
       100,000 shares authorized, issued and outstanding                3,000                   3,000
    Additional paid-in capital                                        938,327                 688,327
    Accumulated other comprehensive income,
        net of tax:
        Net unrealized securities gains                               517,880                  85,549
        Net unrealized derivative gains (losses)                        1,821                    (774)
                                                                  ------------            ------------
            Total accumulated other comprehensive income              519,701                  84,775

    Retained earnings                                               3,258,790               3,042,660
                                                                  ------------            ------------

                      Total stockholder's equity                    4,719,818               3,818,762
                                                                  ------------            ------------

Total liabilities and stockholder's equity                        $55,043,717             $57,895,900
                                                                  ============            ============
</TABLE>

                                       See accompanying notes.

                                      -4-
<PAGE>

                                          IDS LIFE INSURANCE COMPANY
                                      CONSOLIDATED STATEMENTS OF INCOME
                                                (In thousands)
                                                 (unaudited)
<TABLE>
<CAPTION>
                                                                                   Three months ended
                                                                                      September 30,
                                                                                 2002                 2001
Revenues:
    Premiums:
<S>                                                                          <C>                  <C>
         Traditional life insurance                                          $ 17,549             $ 14,939
         Disability income and
              long-term care insurance                                         69,893               64,914
                                                                               ------               ------
                                            Total premiums                     87,442               79,853
                                                                               ------              -------

    Policyholder and contractholder charges                                   126,068              121,849
    Management and other fees                                                  93,723              113,906
    Net investment income                                                     385,491              390,826
    Net realized gain (loss) on investments                                    11,619              (47,530)
                                                                              -------              --------
                                            Total revenues                    704,343              658,904
                                                                             --------              -------
Benefits and expenses:
    Death and other benefits:
         Traditional life insurance                                             9,247                7,059
         Universal life-type insurance
              and investment contracts                                         58,425               58,259
         Disability income and
              long-term care insurance                                         13,636               11,717
    Increase (decrease) in liabilities for
    future policy benefits:
         Traditional life insurance                                            (2,407)               1,515
         Disability income and
              long-term care insurance                                         34,104               36,832
    Interest credited on universal life-type
    insurance and investment contracts                                        280,840              280,817
    Amortization of deferred policy
    acquisition costs                                                          78,930               75,729
    Other insurance and operating expenses                                    129,716              105,721
                                                                             --------              -------
                                            Total benefits and expenses       602,491              577,649
                                                                             --------              -------

Income before income tax expense                                              101,852               81,255

Income tax expense                                                             15,681                6,899

Net income                                                                    $86,171              $74,356
                                                                              =======              =======
</TABLE>

                                      -5-
<PAGE>
                                          IDS LIFE INSURANCE COMPANY
                                      CONSOLIDATED STATEMENTS OF INCOME
                                                (In thousands)
                                                 (unaudited)

<TABLE>
<CAPTION>
                                                                                 Nine months ended
                                                                                   September 30,
                                                                           2002                    2001
                                                                      ----------------       ------------------
Revenues:
    Premiums:
<S>                                                                     <C>                   <C>
       Traditional life insurance                                       $   50,213            $   44,399
       Disability income and
         long-term care insurance                                          201,613               187,599
                                                                        -----------           -----------
                                   Total premiums                          251,826               231,998

    Policyholder and contractholder charges                                380,883               362,953
    Management and other fees                                              313,728               359,422
    Net investment income                                                1,167,344             1,064,770
    Net realized loss on investments                                       (33,695)             (662,736)
                                                                        -----------           -----------
                                   Total revenues                        2,080,086             1,356,407
                                                                        -----------           -----------

Benefits and expenses:
    Death and other benefits:
       Traditional life insurance                                           27,434                24,528
       Universal life-type insurance
             and investment contracts                                      156,144               134,578
       Disability income and
             long-term care insurance                                       38,414                33,173
    Increase in liabilities for
       future policy benefits:
             Traditional life insurance                                      2,018                 4,776
             Disability income and
                long-term care insurance                                    98,121                90,697
    Interest credited on universal life-type
       insurance and investment contracts                                  834,760               849,318
    Amortization of deferred policy
       acquisition costs                                                   244,604               303,103
    Other insurance and operating expenses                                 330,199               319,405
                                                                        -----------           -----------
                                   Total benefits and expenses           1,731,694             1,759,578
                                                                        -----------           -----------

Income (loss) before income tax expense (benefit)                          348,392              (403,171)

Income tax expense (benefit)                                                62,262              (198,682)
                                                                        -----------           -----------

Net income (loss) before cumulative effect of accounting change            286,130              (204,489)

Cumulative effect of accounting change (net of tax of $11,647)                  --               (21,410)
                                                                        -----------           -----------

Net income (loss)                                                       $  286,130            $ (225,899)
                                                                        ==========            ===========
</TABLE>


                             See accompanying notes.

                                      -6-
<PAGE>

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

<TABLE>
<CAPTION>
                                                                       Nine months ended
                                                                          September 30,
                                                                    2002                  2001
                                                              -----------------      ---------------
Cash flows from operating activities:
<S>                                                               <C>                     <C>
    Net income (loss)                                             $(225,899)              $286,130
    Adjustments to reconcile net income (loss) to
        net cash provided by operating activities:
             Cumulative effect of accounting change, net of
                Tax                                                      --                 21,410
             Policy loans, excluding universal
                life-type insurance:
                  Issuance                                          (28,126)               (35,977)
                  Repayment                                          37,939                 41,446
             Change in amounts recoverable from reinsurers          (72,869)               (78,256)
             Change in other accounts receivable                     (7,164)                31,466
             Change in accrued investment income                      9,678                 47,626
             Change in deferred policy
                acquisition costs, net                             (195,873)               (98,787)
             Change in liabilities for future policy
                benefits for traditional life,
                disability income and
                long-term care insurance                            178,522                162,561
             Change in policy claims and other
                policyholders' funds                                 25,363                 12,959
             Change in deferred income taxes                         53,671                (51,897)
             Change in other assets                                   9,637                (88,934)
             Change in other liabilities                            (63,075)              (220,183)
             Accretion of discount, net                              48,874                 90,538
             Net realized loss on investments                        33,695                662,736
             Contractholder charges, non-cash                      (172,811)              (159,857)
             Other, net                                              (8,449)                22,739
                                                                  ----------             ----------

                Net cash provided by operating activities         $ 135,142               $133,691
                                                                  ----------             ----------
</TABLE>

                                       -7-
<PAGE>
                                      IDS LIFE INSURANCE COMPANY
                                CONSOLIDATED STATEMENTS OF CASH FLOWS
                                            (In thousands)
                                             (unaudited)
                                             (continued)

<TABLE>
<CAPTION>
                                                                         Nine months ended
                                                                           September 30,
                                                                   2002                    2001
                                                              ----------------      -------------------
Cash flows from investing activities:
    Fixed maturities available for sale:
<S>                                                             <C>                   <C>
       Purchases                                                $(10,031,715)         $ (5,773,000)
       Maturities, sinking fund payments and calls                 2,276,303             1,896,793
       Sales                                                       6,581,196             3,015,367
    Other investments, excluding policy loans:
       Purchases                                                    (362,979)             (335,523)
       Sales                                                         355,323               273,411
    Change in amounts due from broker                               (808,829)                6,113
    Change in amounts due to broker                                 (536,033)               42,164
                                                                --------------        -------------

       Net cash used in investing activities                      (2,526,734)             (874,675)
                                                                ---------------       --------------
Cash flows from financing activities:
    Activity related to universal life-type insurance
     and investment contracts:
       Considerations received                                     3,315,296             1,513,678
       Surrenders and death benefits                              (1,205,070)           (2,201,427)
       Interest credited to account balances                         837,893               850,158
    Universal life-type insurance policy loans:
       Issuance                                                      (57,875)              (75,764)
       Repayment                                                      71,752                66,066
     Cash dividends to parent                                        (70,000)                   --
     Capital contribution from parent                                250,000               400,000
                                                                --------------        -------------

         Net cash provided by financing activities                 3,141,996               552,711
                                                                --------------        --------------

Net increase (decrease) in cash and cash equivalents                 750,404              (188,273)

Cash and cash equivalents at beginning of period                   1,150,251               316,974
                                                                --------------        -------------

Cash and cash equivalents at end of period                        $1,900,655              $128,701
                                                                ==============        =============
</TABLE>

                                         See accompanying notes.


                                      -8-
<PAGE>

                           IDS LIFE INSURANCE COMPANY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                               September 30, 2002
                                 (In thousands)
                                   (unaudited)

1.       General

         The interim financial information in this report has not been audited.
         In the opinion of the management of IDS Life Insurance Company (the
         Company), the accompanying unaudited consolidated financial statements
         contain all adjustments (consisting of normal recurring adjustments)
         necessary to present fairly its balance sheet as of September 30, 2002,
         statements of income for the three and nine months ended September 30,
         2002 and 2001 and statements of cash flows for the nine months ended
         September 30, 2002 and 2001. Results of operations reported for the
         interim periods are not necessarily indicative of results for the
         entire year. The consolidated financial statements should be read in
         conjunction with the financial statements in the Annual Report on Form
         10-K of the Company for the year ended December 31, 2001. Certain prior
         year amounts have been reclassified to conform to the current year's
         presentation.

         The Company is a wholly owned subsidiary of American Express Financial
         Corporation (AEFC), which is a wholly-owned subsidiary of American
         Express Company. The accompanying unaudited consolidated financial
         statements include the accounts of the Company and its wholly owned
         subsidiaries, IDS Life Insurance Company of New York, American
         Enterprise Life Insurance Company, American Centurion Life Assurance
         Company, American Partners Life Insurance Company, American Express
         Corporation and IDS REO 1, LLC. All material intercompany accounts and
         transactions have been eliminated in consolidation.

2.       Comprehensive Income

         Total comprehensive income was $401,929 and $336,313 for the three
         months and $721,056 and $459,890 for the nine months ended September
         30, 2002 and 2001, respectively. The significant difference between net
         income and total other comprehensive income is a result of unrealized
         gains that arose during the year on fixed maturity holdings.

3.       Statements of cash flows

         Cash paid for interest on borrowings totaled $6,277 and $17,734 for the
         nine months ended September 30, 2002, and 2001, respectively. Cash paid
         for income taxes totaled $80,372 for the nine months ended September
         30, 2002 compared to cash received of $69,751 for the nine months ended
         September 30, 2001.

                                      -9-
<PAGE>

                           IDS LIFE INSURANCE COMPANY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (In thousands)
                                   (unaudited)
                                   (continued)

4.       Accounting developments

         In July 2000, the Financial Accounting Standards Board's (FASB)
         Emerging Issues Task Force (EITF) issued a consensus on Issue 99-20,
         "Recognition of Interest Income and Impairment on Purchased and
         Retained Beneficial Interests in Securitized Financial Assets". The
         Company adopted the consensus as of January 1, 2001. Issue 99-20
         prescribes procedures for recording interest income and measuring
         impairment on retained and purchased beneficial interests. The
         consensus primarily affects certain high-yield investments contained in
         structured securities. Adoption of the consensus required the Company
         to adjust the carrying amount of these investments downward by $21,410,
         net of tax, upon adoption.

         The FASB is currently considering rules that could affect the future
         accounting for special purpose vehicles. Such vehicles could
         potentially include collateralized debt obligations, structured loan
         trusts, mutual funds, hedge funds and limited partnerships. The effect
         could include adjustments to current carrying values and/or
         consolidation of underlying assets and liabilities. While such rules
         would not change the economic value inherent in these operations, the
         financial statement effect of any changes cannot be determined until
         the rules are finalized.

5.       Commitments and contingencies

         Commitments to fund mortgage loan investments in the ordinary course of
         business at September 30, 2002 aggregated $86,240.

         The maximum amount of life insurance risk retained by the Company is
         $750 on any policy insuring a single life and $1,500 on any policy
         insuring a joint-life combination. The Company retains only 20% of the
         mortality risk on new variable universal life insurance policies and
         10% of the mortality risk on new term insurance policies. Risk not
         retained is reinsured with other life insurance companies. Universal
         life and variable universal life policies are primarily reinsured on a
         yearly renewable basis. New term insurance and long-term care policies
         are primarily reinsured on a coinsurance basis. The Company retains all
         accidental death benefit, disability income and waiver of premium risk.

                                      -10-
<PAGE>

                           IDS LIFE INSURANCE COMPANY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (In thousands)
                                   (unaudited)
                                   (continued)

5.       Commitments and contingencies (continued)

         The Company is a party to litigation and arbitration proceedings in the
         ordinary course of its business, none of which is expected to have a
         material adverse affect on the Company.

         In  recent  years,  life  insurance   companies  have  been  named  as
         defendants  in lawsuits,  including  class action  lawsuits,  alleging
         improper life insurance  sales  practices,  alleged agent  misconduct,
         failure to properly  supervise  agents and other  matters  relating to
         life  insurance  policies and annuity  contracts.  The Company and its
         affiliates  were  named  defendants  in three  purported  class-action
         lawsuits  alleging  improper  insurance  and annuity  sales  practices
         including  improper  replacement  of existing  annuity  contracts  and
         insurance  policies,  improper  use of  annuities to fund tax deferred
         contributory  retirement plans,  alleged agent misconduct,  failure to
         properly supervise agents and other matters relating to life insurance
         policies and annuity contracts. A fourth lawsuit was filed against the
         Company and its  affiliates  in federal  court.  In January  2000,  we
         reached an  agreement  in  principle  to settle the three class action
         lawsuits  described  above. It is expected the settlement will provide
         $215  million of  benefits to more than two  million  participants  in
         exchange for a release by class  members of all  insurance and annuity
         state and federal  market  conduct  claims  dating  back to 1985.  The
         settlement  received court approval.  Implementation of the settlement
         commenced  October 15,  2001.  Numerous  individuals  opted out of the
         settlement  described above and therefore did not release their claims
         against the  Company.  Some of these class  members who opted out were
         represented by counsel and presented  separate  claims to the Company.
         Most of their claims have been settled.

         The outcome of any litigation or threatened litigation cannot be
         predicted with any certainty. However, in the aggregate, the Company
         does not consider any lawsuits in which it is named as a defendant to
         have a material impact on the Company's financial position or operating
         results.

6.       Stockholder's equity

         During the third quarter of 2002, the Company received a $250 million
         capital contribution from AEFC to further strengthen its equity
         position.

                                      -11-
<PAGE>

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

Results of Operations

Nine Months Ended September 30, 2002 Compared to Nine Months Ended September 30,
2001:

Consolidated net income was $286 million for the nine months ended September 30,
2002, compared to a net loss of $226 million in 2001. 2001 results reflect
approximately $615 million of pretax losses from the recognition of impairment
losses and sale of certain high-yield securities and a $67 million pretax
increase in the amortization of deferred policy acquisition costs (DAC's). The
favorable relative impact in 2002 of these 2001 items was partially offset by
lower management and other fees, primarily reflecting continued weakness in
equity markets in 2002.

Premiums and investment contract deposits increased to $6.1 billion compared to
$4.3 billion for the nine months ended September 30, 2001. The increase was
primarily due to an increase in fixed annuity sales.

Management and other fees decreased to $314 million for the nine months ended
September 30, 2002 compared with $359 million a year ago. This was primarily due
to a decrease in average separate account assets outstanding, resulting
primarily from market depreciation of equity securities as weak equity markets
continue. The Company provides investment management services for many of the
mutual funds which are used as investment options for variable annuities and
variable life insurance. The Company also receives a mortality and expense risk
fee from the separate accounts based on the level of assets.

Net investment income increased to $1,167 million for the nine months ended
September 30, 2002 compared to $1,065 million a year ago. This increase was
primarily due to the credit-related yield adjustments on fixed maturity
investments in 2001 and higher invested asset levels in 2002, which were
partially offset by lower portfolio yields in 2002.

Net realized loss on investments decreased to $34 million for the nine months
ended September 30, 2001 compared to $663 million a year ago. The 2002 net
realized losses include $45 million from direct losses on WorldCom debt
holdings. The 2001 loss was primarily due to the write-down and sale of certain
high-yield investments.

Total benefits and expenses were $1.7 billion for the nine months ended
September 30, 2002, a decrease of 2 percent from a year ago. The largest
component of expenses, interest credited on universal life-type insurance and
investment contracts, decreased 2 percent to $835 million. This was primarily
due to lower interest credited rates. Total death and other benefits increased
$30 million. This increase is primarily due to business growth, although $12
million of this increase is due to greater guaranteed minimum death benefits
paid this year ($22 million) versus last year ($10 million).

                                      -12-
<PAGE>

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

Amortization of deferred policy acquisition costs decreased 19 percent for the
nine months ended September 30, 2002 compared to the same period in 2001, due
primarily to a $67 million increase in the first quarter of 2001 to the
amortization of DAC's for variable annuity and insurance products as a result of
the decline in equity markets. Current quarter's results also include a net
expense increase related to DAC that is further described below.

Other insurance and operating expenses increased 3 percent, primarily due to the
increased DAC expenses described below.

Deferred Acquisition Costs

The Company's DAC represents the cost of acquiring new business, principally
sales and other distribution and underwriting costs, that have been deferred on
the sale of annuity and insurance products. DAC's are amortized over periods
approximating the lives of the business, generally as a percentage of premiums
or estimated gross profits or as a percentage of the liabilities associated with
the 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. As actual experience differs from the current assumptions,
management considers on a quarterly basis the need to change key assumptions
underlying the amortization models prospectively. For example, if the stock
market trend rose or declined appreciably, it could impact assumptions made
about customer asset value growth rates and result in an adjustment to income,
either positively or negatively. The impact on results of operations of changing
prospective 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.

During the third quarter, the Company completed a comprehensive review of its
DAC related practices. This review, which included benchmarking assistance from
an industry specialist, analyzed various historical DAC dynamics in addition to
the industry benchmarks. The specific areas reviewed included costs deferred,
customer asset value growth rates, including reversion to mean assumptions, DAC
amortization periods, mortality rates and product persistency. As a result of
this review, the Company made certain revisions related to DAC that resulted in
a net $37 million increase in expenses this quarter. This net expense increase
reflected revisions within three key drivers of DAC.

     o    The Company reset its customer asset value growth rate assumptions for
          variable  annuity and variable life  products to anticipate  near-term
          and long-term market performance  consistent with long-term historical
          averages.  The  customer  asset value growth rate is the rate at which
          contract  values are assumed to appreciate in the future.  The Company
          is now projecting  growth in customer contract values at 7%. This rate
          is net of asset  fees,  and  anticipates  a blend of equity  and fixed
          income investments.  Prior to resetting these assumptions, the Company
          was  projecting  long-term  customer  asset  value  growth at 7.5% and
          near-term  growth at  approximately  twice  that  rate.  The impact of
          resetting these assumptions, along

                                      -13-
<PAGE>

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

          with  the  impact  of   unfavorable   third   quarter   equity  market
          performance,  was  an  acceleration  of  $173  million  pretax  of DAC
          amortization.

          Going forward, the Company intends to continue to use a mean reversion
          method as a guideline in setting the  near-term  customer  asset value
          growth rate,  also referred to as the mean reversion  rate. In periods
          when market  performance  results in actual contract value growth at a
          rate  different  than that  assumed,  the Company  will  reassess  the
          near-term  rate in order to continue  to project its best  estimate of
          long-term growth. For example,  if actual contract value growth during
          the fourth quarter is less than 7% on an annualized basis, the Company
          would  increase the mean  reversion rate assumed over the near-term to
          the rate needed to achieve the long-term  growth rate of 7% by the end
          of that period, assuming this long-term view is still appropriate.

     o    The Company  also  revised  its  persistency  assumptions  for certain
          annuity  products  and  persistency  and  mortality   assumptions  for
          universal and variable  universal life insurance  products,  to better
          reflect actual  experience and future  expectations.  As part of this,
          the Company observed that the persistency of advisor-distributed fixed
          annuity business  supported an amortization  period longer than the 10
          years  the  Company  had been  using as the  approximate  life of this
          business. As a result, the Company extended the amortization period to
          15 years and increased the DAC balance accordingly. This change, along
          with revised  assumptions  projecting  more favorable  persistency and
          mortality rates, resulted in a decrease in DAC expense of $155 million
          pretax in the quarter.

     o    Finally,  the Company reviewed its acquisition  costs to clarify those
          costs that vary with and are primarily  related to the  acquisition of
          new and renewable annuity and insurance contracts. The Company revised
          the types and amounts of costs deferred, in part to reflect the impact
          of advisor platform changes and the effects of related  reengineering.
          This  resulted  in an  increase  in  expense  of  $19  million  pretax
          recognized during the quarter.

The first two categories of revised assumptions relating to customer asset value
growth rates, DAC amortization periods, mortality rates and insurance and
annuity lapse rates should reduce the risk of adverse DAC adjustments going
forward. The third revised category, relating to the types and amounts of costs
deferred, will somewhat increase ongoing expenses, although these additional
expenses should be offset to some extent as reengineering and other cost control
initiatives are expected to mitigate their impact.

Impact of Recent Market Volatility on Results of Operations

Various aspects of the Company's business can be significantly impacted by
equity levels and other market-based factors. One of these items is the
management fee revenue which is based on the market value of separate account
assets. Other areas impacted by market volatility involve deferred acquisitions
costs (as noted above), structured investments and the variable annuity
guaranteed minimum death benefit feature. The value of the Company's structured
investment portfolio is impacted by various market factors. These investments
include collateralized debt obligations and structured loan trusts (backed by
high-yield bonds and bank loans), which are

                                      -14-
<PAGE>

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

held by the Company through interests in special purpose entities. The carrying
value of these investments is based on cash flow projections, which are affected
by factors such as default rates, persistency of defaults, recovery rates and
interest rates, among others. The current valuation of these investments assumes
high levels of near-term defaults, relative to historical default rates.
Persistency of or increases in these default rates could result in negative
adjustments to the market values of these investments in the future, which would
adversely impact results of operations. Conversely, a decline in the default
rates would result in higher values and would benefit future results of
operations.

The majority of the variable annuity contracts offered by the Company contain
guaranteed minimum death benefit (GMDB) provisions. At time of issue, these
contracts typically guarantee the death benefit payable will not be less than
the amount invested, regardless of the performance of the customer's account.
Most contracts also provide for some type of periodic adjustment of the
guaranteed amount based on the change in the value of the contract. A large
portion of the Company's contracts containing a GMDB provision adjust once every
six years. The periodic adjustment of these contracts can either increase or
decrease the guaranteed amount though not below the amount invested adjusted for
withdrawals. When market values of the customer's accounts decline, the death
benefit payable on a contract with a GMDB may exceed the accumulated contract
value. Currently, the amount paid in excess of contract value is expensed in the
period the payment occurs.

Liquidity and Capital Resources

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

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

The Company has an available line of credit with its parent of $200 million
($100 million committed and $100 million uncommitted). This line of credit is
used strictly as a short-term source of funds. At September 30, 2002,
outstanding borrowings under this agreement totaled $nil. The Company also uses
reverse repurchase agreements for short-term liquidity needs. Outstanding
reverse repurchase agreements totaled $225 million at September 30, 2002.

                                      -15-
<PAGE>

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

At September 30, 2002, approximately 6 percent of the Company's invested assets
were below-investment-grade bonds, compared to 5 percent at September 30, 2001.
These investments may be subject to a higher degree of risk than higher-rated
issues because of the borrowers' generally greater sensitivity to adverse
economic conditions, such as recession or increasing interest rates, and in
certain instances the lack of an active secondary market. Expected returns on
below-investment-grade bonds reflect consideration of such factors.

The Company has identified those fixed maturities for which a decline in fair
value is determined to be other than temporary, and has written them down to
fair value with a charge to earnings.

At September 30, 2002, the Company had a reserve for losses on mortgage loans of
$40 million.

Forward-Looking Statements

Certain statements in the management's discussion and analysis of consolidated
financial condition and results of operations section of this Form 10-Q contain
forward-looking statements which are subject to risks and uncertainties that
could cause results to differ materially from such 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. The Company undertakes no
obligation to update publicly or revise any forward-looking statements.
Important factors that could cause actual results to differ materially from the
Company's forward-looking statements include, among other things, fluctuations
in the equity and interest rate environment and changes in the ability of
issuers of investment securities held by the Company to meet their debt
obligations, which could result in further losses in the Company's investment
portfolio.

                                      -16-
<PAGE>

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

PART II - OTHER INFORMATION

Item 1.    LEGAL PROCEEDINGS

           Reference is made to Note 5 of the Notes to Consolidated
           Financial Statements (unaudited) contained in the Report filed
           on Form 10-Q for the quarterly period ended September 30,
           2002.

Item 2.    CHANGES IN SECURITIES AND USE OF PROCEEDS

           Not applicable.

Item 3.    DEFAULTS UPON SENIOR SECURITIES

           Not applicable.

Item 4.    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

           Not applicable.

Item 5.    OTHER INFORMATION

           Not applicable.

Item 6.    EXHIBITS AND REPORTS ON FORM 8-K

               (a)  Exhibits

               3.1  Copy of Certificate of  Incorporation  of IDS Life Insurance
                    Company  filed   electronically   as  Exhibit  3.1  to  Post
                    Effective  Amendment  No. 5 to  Registration  Statement  No.
                    33-28976 is incorporated herein by reference.

               3.2  Copy of the Amended  By-laws of IDS Life  Insurance  Company
                    filed   electronically  as  Exhibit  3.2  to  Post-Effective
                    Amendment No. 5 to  Registration  Statement No.  33-28976 is
                    incorporated herein by reference.

               3.3  Copy of  Resolution  of the Board of  Directors  of IDS Life
                    Insurance Company, dated May 5, 1989,  establishing IDS Life
                    Account   MGA  filed   electronically   as  Exhibit  3.3  to
                    Post-Effective Amendment No. 5 to Registration Statement No.
                    33-28976 is incorporated herein by reference.

                                      -17-
<PAGE>

PART II - OTHER INFORMATION (continued)

               4.1  Copy of  Non-tax  qualified  Group  Annuity  Contract,  Form
                    30363C,    filed    electronically   as   Exhibit   4.1   to
                    Post-Effective Amendment No. 5 to Registration Statement No.
                    33-28976 is incorporated herein by reference.

               4.2  Copy of Non-tax  qualified Group Annuity  Certificate,  Form
                    30360C,    filed    electronically   as   Exhibit   4.2   to
                    Post-Effective Amendment No. 5 to Registration Statement No.
                    33-28976 is incorporated herein by reference.

               4.3  Copy of  Endorsement  No.  30340C-GP  to the  Group  Annuity
                    Contract   filed    electronically   as   Exhibit   4.3   to
                    Post-Effective Amendment No. 5 to Registration Statement No.
                    33-28976 is incorporated herein by reference.

               4.4  Copy  of  Endorsement   No.  30340C  to  the  Group  Annuity
                    Certificate   filed   electronically   as  Exhibit   4.4  to
                    Post-Effective Amendment No. 5 to Registration Statement No.
                    33-28976 is incorporated herein by reference.

               4.5  Copy of Tax qualified Group Annuity  Contract,  Form 30369C,
                    filed   electronically  as  Exhibit  4.5  to  Post-Effective
                    Amendment No. 10 to  Registration  Statement No. 33-28976 is
                    incorporated herein by reference.

               4.6  Copy  of  Tax  qualified  Group  Annuity  Certificate,  Form
                    30368C,    filed    electronically   as   Exhibit   4.6   to
                    Post-Effective  Amendment No. 10 to  Registration  Statement
                    No. 33-28976 is incorporated herein by reference.

               4.7  Copy of Group  IRA  Annuity  Contract,  Form  30372C,  filed
                    electronically  as Exhibit 4.7 to  Post-Effective  Amendment
                    No.  10  to   Registration   Statement   No.   33-28976   is
                    incorporated herein by reference.

               4.8  Copy of Group IRA Annuity  Certificate,  Form 30371C,  filed
                    electronically  as Exhibit 4.8 to  Post-Effective  Amendment
                    No.  10  to   Registration   Statement   No.   33-28976   is
                    incorporated herein by reference.

               4.9  Copy of Non-tax qualified Individual Annuity Contract,  Form
                    30365D,    filed    electronically   as   Exhibit   4.9   to
                    Post-Effective  Amendment No. 10 to  Registration  Statement
                    No. 33-28976 is incorporated herein by reference.

                                      -18-
<PAGE>

PART II - OTHER INFORMATION (continued)

               4.10 Copy of  Endorsement  No.  30379 to the  Individual  Annuity
                    Contract,   filed   electronically   as   Exhibit   4.10  to
                    Post-Effective  Amendment No. 10 to  Registration  Statement
                    No. 33-28976 is incorporated herein by reference.

               4.11 Copy of Tax  qualified  Individual  Annuity  Contract,  Form
                    30370C,    filed   electronically   as   Exhibit   4.11   to
                    Post-Effective  Amendment No. 10 to  Registration  Statement
                    No. 33-28976 is incorporated herein by reference.

               4.12 Copy of Individual IRA Annuity Contract,  Form 30373C, filed
                    electronically as Exhibit 4.12 to  Post-Effective  Amendment
                    No.  10  to   Registration   Statement   No.   33-28976   is
                    incorporated herein by reference.

               4.13 Copy  of  Endorsement  No.  33007  filed  electronically  as
                    Exhibit  4.13  to   Post-Effective   Amendment   No.  12  to
                    Registration  Statement No. 33-28976 is incorporated  herein
                    by reference.

               4.14 Copy  of  Group  Annuity   Contract,   Form  30363D,   filed
                    electronically  as Exhibit 4.1 to  Post-Effective  Amendment
                    No. 2 to Registration Statement No. 33-50968 is incorporated
                    herein by reference.

               4.15 Copy  of  Group  Annuity  Certificate,  Form  30360D,  filed
                    electronically  as Exhibit 4.2 to  Post-Effective  Amendment
                    No. 2 to Registration Statement No. 33-50968 is incorporated
                    herein by reference.

               4.16 Form  of  Deferred  Annuity  Contract,  Form  30365E,  filed
                    electronically  as Exhibit 4.3 to  Post-Effective  Amendment
                    No. 2 to Registration Statement No. 33-50968 is incorporated
                    herein by reference.

               4.17 Form of  Group  Deferred  Variable  Annuity  Contract,  Form
                    34660, filed electronically as Exhibit 4.1 to Post-Effective
                    Amendment No. 2 to  Registration  Statement No.  33-48701 is
                    incorporated herein by reference.

               4.18 Copy of  Non-tax  qualified  Group  Annuity  Contract,  Form
                    33111,  filed  electronically as Exhibit 4.1 to Registration
                    Statement No. 333-42793 is incorporated herein by reference.

                                      -19-
<PAGE>

PART II - OTHER INFORMATION (continued)

               4.19 Copy of Non-tax  qualified Group Annuity  Certificate,  Form
                    33114,  filed  electronically as Exhibit 4.2 to Registration
                    Statement No. 333-42793 is incorporated herein by reference.

               4.20 Copy of Tax qualified  Group Annuity  Contract,  Form 33112,
                    filed   electronically   as  Exhibit  4.3  to   Registration
                    Statement No. 333-42793 is incorporated herein by reference.

               4.21 Copy of Tax qualified Group Annuity Certificate, Form 33115,
                    filed   electronically   as  Exhibit  4.4  to   Registration
                    Statement No. 333-42793 is incorporated herein by reference.

               4.22 Copy of  Group  IRA  Annuity  Contract,  Form  33113,  filed
                    electronically as Exhibit 4.5 to Registration  Statement No.
                    333-42793 is incorporated herein by reference.

               4.23 Copy of Group IRA Annuity  Certificate,  Form  33116,  filed
                    electronically as Exhibit 4.6 to Registration  Statement No.
                    333-42793 is incorporated herein by reference.

               4.24 Copy of Non-tax qualified Individual Annuity Contract,  Form
                    30484, filed electronically as Exhibit 4.7 to Post-Effective
                    Amendment No. 1 to Registration  Statement No.  333-42793 is
                    incorporated herein by reference.

               4.25 Copy of Tax  qualified  Individual  Annuity  Contract,  Form
                    30485, filed electronically as Exhibit 4.8 to Post-Effective
                    Amendment No. 1 to Registration  Statement No.  333-42793 is
                    incorporated herein by reference.

               4.26 Copy  of  Individual   IRA  Contract,   Form  30486,   filed
                    electronically  as Exhibit 4.9 to  Post-Effective  Amendment
                    No.  1  to   Registration   Statement   No.   333-42793   is
                    incorporated herein by reference.

               21.  Copy of List of Subsidiaries filed electronically as Exhibit
                    22  to  Post-Effective   Amendment  No.  8  to  Registration
                    Statement No. 33-28976 is herein incorporated by reference.

                                      -20-
<PAGE>

PART II - OTHER INFORMATION (continued)

               27.  Financial data schedule is filed electronically herewith.

               (b)  Reports on Form 8-K.

                    Form 8-K,  dated  September 6, 2002,  Item 5, reporting that
                    Moody's Investor Services has changed its outlook on the Aa3
                    insurance financial strength rating to negative from stable.

Item 7.   Exhibits 99.1 and 99.2

          Certification  pursuant to 18 U.S.C. Section 1350, as adopted pursuant
          to section 906 of the Sarbanes-Oxley Act of 2002.

          Exhibits 99.3 and 99.4

          Certification pursuant to 15 U.S.C. as adopted pursuant to section 302
          of the Sarbanes-Oxley Act of 2002.


                                      -21-
<PAGE>

SIGNATURES

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

REGISTRANT                                 IDS LIFE INSURANCE COMPANY

BY                                     /s/ Philip C. Wentzel
                                       -----------------------
NAME AND TITLE                             Philip C. Wentzel
                                           Vice President and Controller



BY                                     /s/ Barbara H. Fraser
                                       ------------------------
NAME AND TITLE                             Barbara H. Fraser
                                           Chief Executive Officer

DATE                                       November 14, 2002

                                      -22-