<PAGE>

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


                                   FORM 10-Q


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

                 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2005

                                       or

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

              For the Transition Period from ________ to ________

                        Commission file number 33-28976

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


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


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


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

                                     None
-------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report.

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


Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).            Yes              No  X
                                                          -----           -----



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.


<TABLE>
                               IDS LIFE INSURANCE COMPANY

                                        FORM 10-Q

                                          INDEX

<CAPTION>
                                                                                Page No.
                                                                                --------
<S>                                                                             <C>
PART I.   Financial Information:

          Item 1. Financial Statements

                  Consolidated Balance Sheets - March 31, 2005 and
                  December 31, 2004                                                 1

                  Consolidated Statements of Income - Three Months Ended
                  March 31, 2005 and 2004                                           2

                  Consolidated Statements of Cash Flows - Three Months
                  Ended March 31, 2005 and 2004                                     3

                  Consolidated Statements of Stockholder's Equity - Three
                  Months Ended March 31, 2005 and 2004                              4

                  Notes to Consolidated Financial Statements                      5-7

          Item 2. Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                            8-13

          Item 4. Controls and Procedures                                       14-15

PART II.  Other Information

          Item 1. Legal Proceedings                                                16

          Item 6. Exhibits and Reports on Form 8-K                                 16

          Signatures                                                               17

          Exhibit Index                                                           E-1
</TABLE>



PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS


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

<CAPTION>
                                                                                         March 31,              December 31,
                                                                                            2005                    2004
                                                                                     -------------------    ---------------------
Assets                                                                                  (Unaudited)
------
<S>                                                                                  <C>                    <C>
Investments:
    Available-for-Sale:
       Fixed maturities, at fair value (amortized cost: 2005, $27,268,249; 2004,
        $27,400,640)                                                                 $       27,436,247     $        28,131,195
       Preferred and common stocks, at fair value (cost: 2005 and 2004, $30,019)                 30,054                  31,256
    Mortgage loans on real estate, at cost (less reserves: 2005 and 2004, $45,347)            2,929,845               2,923,542
    Policy loans                                                                                590,830                 588,574
    Trading and other investments                                                               694,190                 753,298
                                                                                     -------------------    ---------------------
            Total investments                                                                31,681,166              32,427,865

Cash and cash equivalents                                                                       196,981                 131,427
Restricted cash                                                                                 576,085                 535,821
Reinsurance recoverables                                                                        910,299                 876,408
Amounts due from brokers                                                                        103,784                   7,109
Other accounts receivable                                                                        57,317                  52,527
Accrued investment income                                                                       358,552                 351,522
Deferred policy acquisition costs                                                             3,740,171               3,637,956
Deferred sales inducement costs                                                                 323,620                 302,997
Other assets                                                                                    185,651                 308,398
Separate account assets                                                                      32,491,964              32,454,032
                                                                                     -------------------    ---------------------
            Total assets                                                             $       70,625,590     $        71,086,062
                                                                                     ===================    =====================

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

Liabilities:
    Future policy benefits:
       Fixed annuities                                                               $       26,823,122     $        26,978,596
       Variable annuity guarantees                                                               24,820                  32,955
       Universal life insurance                                                               3,701,328               3,689,639
       Traditional life insurance                                                               277,463                 271,516
       Disability income and long-term care insurance                                         1,996,046               1,942,656
    Policy claims and other policyholders' funds                                                 77,746                  69,884
    Amounts due to brokers                                                                      137,509                 162,609
    Deferred income taxes, net                                                                   14,057                 141,202
    Other liabilities                                                                           367,156                 437,418
    Separate account liabilities                                                             32,491,964              32,454,032
                                                                                     -------------------    ---------------------
            Total liabilities                                                                65,911,211              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                                                                         3,316,015               3,190,474
    Accumulated other comprehensive income, net of tax:
       Net unrealized securities gains                                                           60,582                 370,615
       Net unrealized derivative losses                                                         (35,606)                (28,922)
                                                                                     -------------------    ---------------------
         Total accumulated other comprehensive income                                            24,976                 341,693
                                                                                     -------------------    ---------------------
            Total stockholder's equity                                                        4,714,379               4,905,555
                                                                                     -------------------    ---------------------
    Total liabilities and stockholder's equity                                       $       70,625,590     $        71,086,062
                                                                                     ===================    =====================


                                          See Notes to Consolidated Financial Statements
</TABLE>

                                     1

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

<CAPTION>
                                                                                             Three Months Ended
                                                                                                 March 31,
                                                                                  -----------------------------------------
                                                                                         2005                  2004
                                                                                  ------------------     ------------------
<S>                                                                               <C>                    <C>
Revenues:
    Premiums:
       Traditional life insurance                                                 $           17,490     $          17,051
       Disability income and long-term care insurance                                         71,343                68,098
                                                                                  ------------------     ------------------
           Total premiums                                                                     88,833                85,149

    Net investment income                                                                    458,788               415,173
    Contractholder and policyholder charges                                                  143,057               136,203
    Mortality and expense risk and other fees                                                114,778               107,242
    Net realized gain on investments                                                             194                 8,646
                                                                                  ------------------     ------------------
           Total                                                                             805,650               752,413
                                                                                  ------------------     ------------------

Benefits and Expenses:
    Death and other benefits:
       Traditional life insurance                                                             12,069                10,562
       Investment contracts and universal life-type insurance                                 52,287                58,233
       Disability income and long-term care insurance                                         17,177                15,358
    Increase (decrease) in liabilities for future policy benefits:
       Traditional life insurance                                                                938                (1,265)
       Disability income and long-term care insurance                                         29,597                20,120
    Interest credited to account values                                                      273,262               283,071
    Amortization of deferred policy acquisition costs                                         99,082                23,578
    Other insurance and operating expenses                                                   137,524               125,588
                                                                                  ------------------     ------------------
           Total                                                                             621,936               535,245
                                                                                  ------------------     ------------------
Income before income tax provision and accounting change                                     183,714               217,168
Income tax provision                                                                          58,173                70,371
                                                                                  ------------------     ------------------
Income before accounting change                                                              125,541               146,797
Cumulative effect of accounting change, net of tax (Note 1)                                        -               (70,568)
                                                                                  ------------------     -------------------

Net income                                                                        $          125,541     $          76,229
                                                                                  ==================     ==================


                                          See Notes to Consolidated Financial Statements
</TABLE>

                                     2

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

<CAPTION>
                                                                                      Three Months Ended
                                                                                           March 31,
                                                                            ----------------------------------------
                                                                                  2005                  2004
                                                                            ------------------    ------------------
<S>                                                                          <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES
    Net income                                                               $      125,541        $       76,229
    Adjustments to reconcile net income to net cash provided by
         operating activities:
            Policy loans, excluding universal life-type insurance
               Repayment                                                              8,799                 9,761
               Issuance                                                              (8,856)               (8,475)
            Change in reinsurance recoverables                                      (33,891)              (18,730)
            Change in other accounts receivable                                      (4,790)               (6,398)
            Change in accrued investment income                                      (7,030)                4,281
            Change in deferred policy acquisition costs, net                        (42,456)             (102,534)
            Change in liabilities for future policy benefits for
               traditional life, disability income and long-term care
               insurance                                                             59,337                37,066
            Change in policy claims and other policyholders' funds                    7,862                11,578
            Deferred income taxes                                                    43,394                24,282
            Change in other assets and liabilities, net                              29,505                47,396
            Amortization of premium, net                                             22,719                25,364
            Net realized gain on investments                                           (194)               (8,646)
            Trading securities, net                                                  63,236               (20,937)
            Net realized gain on trading securities                                  (8,971)              (21,056)
            Contractholder and policyholder charges, non-cash                       (57,584)              (57,277)
            Cumulative effect of accounting change, net of tax (Note 1)                   -                70,568
                                                                            ------------------    ------------------
    NET CASH PROVIDED BY OPERATING ACTIVITIES                                       196,621                62,472
                                                                            ------------------    ------------------

CASH FLOWS FROM INVESTING ACTIVITIES
    Available-for-Sale securities:
            Sales                                                                   547,237               263,213
            Maturities, sinking fund payments and calls                             428,245               479,186
            Purchases                                                              (864,336)           (1,121,743)
    Other investments, excluding policy loans:
            Sales, maturities, sinking fund payments and calls                       98,233               167,346
            Purchases                                                               (99,298)              (59,634)
    Change in amounts due to and from brokers, net                                 (121,775)               72,529
    Change in restricted cash                                                       (40,264)                9,247
                                                                            ------------------    ------------------
    NET CASH USED IN INVESTING ACTIVITIES                                           (51,958)             (189,856)
                                                                            ------------------    ------------------

CASH FLOWS FROM FINANCING ACTIVITIES
    Activity related to investment contracts and universal life-type
       insurance:
            Considerations received                                                 443,345               565,352
            Interest credited to account values                                     273,262               283,071
            Surrenders and other benefits                                          (793,517)             (757,542)
    Universal life-type insurance policy loans:
            Repayment                                                                21,991                24,438
            Issuance                                                                (24,190)              (23,421)
                                                                            ------------------    ------------------
    NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES                             (79,109)               91,898
                                                                            ------------------    ------------------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                 65,554               (35,486)
Cash and cash equivalents at beginning of period                                    131,427               400,294
                                                                            ------------------    ------------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                   $      196,981        $      364,808
                                                                            ==================    ==================

SUPPLEMENTAL DISCLOSURES:
      Income taxes paid                                                      $       31,651        $       11,836
      Interest paid on borrowings                                            $           53        $          258


                                   See Notes to Consolidated Financial Statements
</TABLE>

                                     3

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

<CAPTION>
                                                                                                Accumulated
                                                                               Additional             Other
                                                                 Capital          Paid-In     Comprehensive        Retained
                                                    Total          Stock          Capital     Income/(Loss)        Earnings
---------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>                <C>            <C>              <C>              <C>
Balances at December 31, 2003            $      5,397,836   $      3,000   $    1,370,388   $      399,611   $    3,624,837
---------------------------------------------------------------------------------------------------------------------------
Comprehensive income:
   Net income                                      76,229                                                            76,229
   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                                        278,772                                          278,772
   Reclassification adjustment for
     gains on derivatives included
     in net income, net of related
     deferred income taxes                         (7,582)                                          (7,582)
                                         ----------------
Total comprehensive income                        347,419
---------------------------------------------------------------------------------------------------------------------------

Balances at March 31, 2004               $      5,745,255   $      3,000   $    1,370,388   $      670,801   $    3,701,066
===========================================================================================================================

Balances at December 31, 2004            $      4,905,555   $      3,000   $    1,370,388   $      341,693   $    3,190,474
Comprehensive loss:
   Net income                                     125,541                                                           125,541
   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                                       (310,033)                                        (310,033)
   Reclassification adjustment for
     gains on derivatives included
     in net income, net of related
     deferred income taxes                         (6,684)                                          (6,684)
                                         ----------------
Total comprehensive loss                         (191,176)
---------------------------------------------------------------------------------------------------------------------------

Balances at March 31, 2005               $      4,714,379   $      3,000   $    1,370,388   $       24,976   $    3,316,015
===========================================================================================================================



                                       See Notes to Consolidated Financial Statements
</TABLE>

                                     4

                         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.

     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

                                     5

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

     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.

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 months ended March 31:

<TABLE>
<CAPTION>
                                                                               -------------------------------
                                                                                     2005             2004
                                                                               --------------    -------------
<S>                                                                            <C>               <C>
     (Thousands)
     Gross realized gains on sales                                             $      8,834      $    13,226
     Gross realized (losses) on sales                                          $     (8,094)     $    (3,726)
     Realized (losses) recognized for other-than-temporary impairments         $       (636)     $      (130)
</TABLE>

3.   COMMITMENTS AND CONTINGENCIES

     At March 31, 2005 and December 31, 2004, IDS Life had commitments to
     fund mortgage loans on real estate of $96.1 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, including suitability generally, 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

                                     6

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

     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 1993 through 1996 tax years and
     in February 2005 began the examination of 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.


                                     7

     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 American Express Financial Corporation
     (AEFC), which is a wholly owned subsidiary of American Express Company.
     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 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 AEFAI's
     retail sales force. American Enterprise Life provides clients of
     financial institutions and regional and/or independent broker-dealers
     with American Express branded 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. Effective in December 2004, American Enterprise
     Life received a Certificate of Authority to transact business in the
     State of New Hampshire. 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.

     On February 1, 2005, American Express Company announced plans to pursue
     a tax-free spin-off of the common stock of AEFC through a special
     dividend to American Express common shareholders. The final
     transaction, which is subject to certain conditions including receipt
     of a favorable tax ruling and approval by American Express Company's
     Board of Directors, is expected to close in the third quarter of 2005.
     In connection with the spin-off, American Express Company intends to
     provide additional capital to IDS Life to confirm 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.


                                     8

     RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004

     Net income for the three months ended March 31, 2005 was $125.5 million
     compared to $76.2 million for the three months ended March 31, 2004.
     Net income for the three months ended March 31, 2004 reflects the $70.6
     million ($108.6 million pretax) impact of IDS Life's January 1, 2004
     adoption of the American Institute of Certified Public Accountants
     Statement of Position 03-1, "Accounting and Reporting by Insurance
     Enterprises for Certain Nontraditional Long-Duration contracts and for
     Separate Accounts" (SOP 03-1). SOP 03-1 requires insurance enterprises
     to establish liabilities for benefits that may become payable under
     variable annuity death benefit guarantees or other insurance or annuity
     contract provisions. See "Application of Recently Issued Accounting
     Standards" section in Note 1 to the Consolidated Financial Statements
     regarding the impact of adoption of SOP 03-1.

     REVENUES
     Net investment income increased $43.6 million or 11 percent. Net
     investment income for the three months ended March 31, 2005 includes a
     $7.8 million benefit from lower than expected losses resulting from
     management's fourth quarter 2004 decision to liquidate the remaining
     two structured investments. Net investment income for the three months
     ended March 31, 2004 includes management's first quarter 2004 decision
     to further improve IDS Life's portfolio risk profile by liquidating a
     structured investment before maturity resulting in a $49 million pretax
     charge. Offsetting the impacts related to the structured securities,
     the mark-to-market impact of trading securities was $17 million lower
     during the current quarter compared to the same period a year ago, as
     well as the effect of depreciation during the current quarter versus
     appreciation in the same period a year ago in the S&P 500 on the value
     of options hedging equity indexed annuities.

     Contractholder and policyholder charges increased $6.9 million or 5
     percent reflecting increased 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 $7.5 million or 7
     percent reflecting higher average market values of separate account
     assets.

     Net realized gain on investments was $0.2 million for the three months
     ended March 31, 2005 compared to $8.6 million for the three months
     ended March 31, 2004. For the three months ended March 31, 2005, $8.8
     million of gross realized gains were partially offset by $8.1 million
     of gross realized losses from sales of securities, as well as $0.6
     million of other-than-temporary impairment losses on investments,
     classified as Available-for-Sale.

     For the three months ended March 31, 2004, $15 million of investment
     gains were partially offset by $6.4 million of losses and impairments.
     Included in these total investment gains and losses are $13.2 million
     of gross realized gains and $3.7 million of gross realized losses from
     sales of securities, as well as $0.1 million of other-than-temporary
     impairment losses on investments, classified as Available-for-Sale.

     BENEFITS AND EXPENSES
     Interest credited to account values decreased $9.8 million or 3
     percent, reflecting lower interest crediting rates on annuity products
     and the effect of depreciation during the current quarter 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.

     Amortization of deferred policy acquisition costs (DAC) increased to
     $99.1 million for the three months ended March 31, 2005 from $23.6
     million for the three months ended March 31, 2004

                                     9

     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. These increases were
     partially offset by changes made to the benefit ratios which are used
     to estimate the cost of certain variable annuity guarantee features.

     Other insurance and operating expenses increased $11.9 million or 10
     percent reflecting increases in certain non-deferrable product
     distribution costs.

     DEFERRED POLICY ACQUISITION COSTS
     DAC represent the costs of acquiring new business, principally direct
     sales commissions and other distribution and underwriting costs that
     have been deferred on the sale of annuity and life and health insurance
     products. These costs are deferred to the extent they are recoverable
     from future profits. For annuity and insurance 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 annuity and insurance 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.

     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.


                                     10

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

<TABLE>
<CAPTION>
     (Millions)                                    March 31, 2005            December 31, 2004
                                               -----------------------    ----------------------
                                                     (Unaudited)
<S>                                                    <C>                    <C>
     Life and health insurance                         $        1,792         $         1,766
     Annuities                                                  1,948                   1,872
                                               -----------------------    ----------------------
     Total                                             $        3,740         $         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.

     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 AEFC. The primary uses of
     funds are policy benefits, commissions, other product-related
     acquisition and sales inducement costs, operating expenses, policy
     loans, dividends to AEFC 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
     AEFC aggregating $295 million ($195 million committed and $100 million
     uncommitted). At March 31, 2005, there were no line of credit
     borrowings outstanding with AEFC and no outstanding reverse repurchase


                                     11

     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 $2.5
     billion of below investment grade securities (excluding net unrealized
     appreciation and depreciation) at March 31, 2005, December 31, 2004 and
     March 31, 2004, respectively. These investments represent 7 percent, 7
     percent and 8 percent of IDS Life's investment portfolio at March 31,
     2005, December 31, 2004 and March 31, 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.

     As of March 31, 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 March 31,
     2005, the carrying values of the CDO residual tranches, managed by an
     affiliate, were $4.1 million. IDS Life also has an interest in a CDO
     securitization with a carrying value of $487.5 million of which $351.2
     million is considered investment grade. 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.

     The carrying value of the CDOs, 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 $465 million at March 31, 2005.
     However, because the portfolio has been substantially liquidated, a
     significant portion of the net assets within the structure is cash and
     cash equivalents and, as a result, the overall market exposure has been
     reduced to approximately $20 million.

     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) and certain other variable
     annuity benefits, asset management fees and structured investments. The
     direction and


                                     12

     magnitude of the changes in equity markets can increase or decrease
     amortization of DAC and deferred sales inducement benefits, incurred
     amounts under GMDB 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.


                                     13

     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 AEFC'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

                                     14


     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).





                                     15

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, including
         suitability generally, 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.

             Reports on Form 8-K filed by IDS Life during the quarterly
             period ended March 31, 2005 were previously disclosed on Form
             10-K. There were no additional reports on Form 8-K filed by IDS
             Life during the quarterly period ended March 31, 2005.


                                     16

                                 SIGNATURES

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

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






Date: May 5, 2005                   By /s/ Mark E. Schwarzmann
                                       ---------------------------------------
                                       Mark E. Schwarzmann
                                       Director, Chairman of the Board and
                                       Chief Executive Officer



Date: May 5, 2005                   By /s/ Arthur H. Berman
                                       ---------------------------------------
                                       Arthur H. Berman
                                       Director and Executive Vice President -
                                       Finance and Chief Financial Officer


                                     17

                                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 Arthur H. Berman pursuant to Rule 13a-14(a)
           promulgated under the Securities Exchange Act of 1934, as
           amended.

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



                                    E-1