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 March 31, 1998
                                       OR

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

 For the transition period from                     to

                        Commission file number 33-28976

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

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

 IDS TOWER 10, MINNEAPOLIS, MINNESOTA                           55440-0010
  (Address of principal executive offices)                      (Zip Code)

      (Registrant's telephone number, including area code) (612) 671-1257

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

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


<PAGE>





                       IDS LIFE INSURANCE COMPANY

                                 FORM 10-Q

                  For the Quarter Ended March 31, 1998

                              Table of Contents

PART I - FINANCIAL INFORMATION                                         Page

         Item 1.  Financial Statements

                  Consolidated Balance Sheets as of
                  March  31, 1998 (unaudited) and
                  December 31, 1997                                      3 - 4

                  Consolidated Statements of Income for the
                  three months ended March 31, 1998 and 1997
                  (unaudited)                                                5

                  Consolidated Statements of Cash Flows for the
                  three months ended March 31, 1998 and 1997
                  (unaudited)                                            6 - 7

                  Notes to Consolidated Financial Statements
                  (unaudited)                                           8 - 10

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

PART II - OTHER INFORMATION                                                 13

SIGNATURES                                                                  14

<PAGE>

<TABLE>
<CAPTION>


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


                                                            March  31,     December 31,
ASSETS                                                          1998           1997
                                                         ----------------- -------------
                                                            (unaudited)
<S>                                                          <C>           <C>
Investments:
    Fixed maturities:
        Held to maturity, at amortized cost (Fair value:
            1998, $9,384,517; 1997, $9,743,410) .........    $ 8,966,973   $ 9,315,450
        Available for sale, at fair value (Amortized cost:
            1998, $12,825,477; 1997, $12,515,030) ........    13,188,741    12,876,694
                                                             -----------   -----------

                                                              22,155,715    22,192,144

    Mortgage loans on real estate ........................     3,663,748     3,618,647
    Policy loans .........................................       502,865       498,874
    Other investments ....................................       261,387       318,591
                                                             -----------   -----------

                     Total investments ...................    26,583,715    26,628,256

Cash and cash equivalents ................................             0        19,686

Amounts recoverable from reinsurers ......................       218,979       205,716

Amounts due from brokers .................................         3,694         8,400

Other accounts receivable ................................        45,556        37,895

Accrued investment income ................................       350,417       357,390

Deferred policy acquisition costs ........................     2,479,349     2,479,577

Other assets .............................................        37,086        22,700

Separate account assets ..................................    25,999,780    23,214,504
                                                             -----------   -----------

                     Total assets ........................   $55,718,576   $52,974,124
                                                             ===========   ===========
</TABLE>



<PAGE>

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


                                                           March 31,     December 31,
LIABILITIES AND STOCKHOLDER'S EQUITY                           1998         1997
                                                      ------------------ ------------
                                                           (unaudited)
<S>                                                         <C>           <C>
Liabilities:
    Future policy benefits:
        Fixed annuities .................................   $21,823,622   $22,009,747
        Universal life-type insurance ...................     3,302,028     3,280,489
        Traditional life insurance ......................       215,182       213,676
        Disability income and
            long-term care insurance ....................       563,767       533,124
    Policy claims and other
        policyholders' funds ............................        36,728        68,345
    Amounts due to brokers ..............................       364,225       381,458
    Deferred income taxes ...............................        67,670        61,582
    Other liabilities ...................................       409,287       345,383
    Separate account liabilities ........................    25,999,780    23,214,504
                                                            -----------   -----------

                     Total liabilities ..................    52,782,289    50,108,308
                                                            -----------   -----------

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 ..........................       288,327       290,847
    Accumulated other comprehensive income
      Net unrealized gain on investments ..................     227,394       226,359
    Retained earnings ...................................     2,417,566     2,345,610
                                                            -----------   -----------

                     Total stockholder's equity .........     2,936,287     2,865,816
                                                            -----------   -----------

Total liabilities and stockholder's equity ..............   $55,718,576   $52,974,124
                                                            ===========   ===========

                       See accompanying notes .
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

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

                                                                           Three months ended
                                                                              March 31,
                                                                             1998       1997
                                                                        ------------- ---------
<S>                                                                       <C>         <C>
Revenues:
    Premiums:
        Traditional life insurance ....................................   $  13,315   $  13,078
        Disability income and
          long-term care insurance ....................................      40,791      37,349
                                                                          ---------   ---------
                     Total premiums ...................................      54,106      50,427

    Policyholder and contractholder charges ...........................      93,624      82,893
    Management and other fees .........................................      99,096      76,540
    Net investment income .............................................     501,885     494,604
    Net realized loss on investments ..................................      (2,823)     (5,258)
                                                                          ---------   ---------
                     Total revenues ...................................     745,888     699,206
                                                                          ---------   ---------

Benefits and expenses:
    Death and other benefits:
        Traditional life insurance ....................................       7,683       5,723
        Universal life-type insurance
            and investment contracts ..................................      23,991      21,329
        Disability income and
            long-term care insurance ..................................       7,219       5,016
    Increase in liabilities for
        future policy benefits:
            Traditional life insurance ................................       1,555         574
            Disability income and
                 long-term care insurance .............................      16,730      13,353
    Interest credited on universal life-type
        insurance and investment contracts ............................     338,814     346,904
    Amortization of deferred policy
        acquisition costs .............................................      97,246      76,730
    Other insurance and operating expenses ............................      55,401      47,677
                                                                          ---------   ---------
                     Total benefits and expenses ......................     548,639     517,306
                                                                          ---------   ---------

Income before income taxes ............................................     197,249     181,900

Income taxes ..........................................................      65,292      61,330
                                                                          ---------   ---------

Net income ............................................................   $ 131,957   $ 120,570
                                                                          =========   =========

                             See accompanying notes
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

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

                                                                        Three months ended
                                                                             March 31,
                                                                        1998        1997
                                                                    -----------  -----------
<S>                                                                  <C>          <C>
Cash flows from operating activities:
    Net income ...................................................   $ 131,957    $ 120,570
    Adjustments to reconcile net income to
        net cash provided by operating activities:
            Policy loans, excluding universal
               life-type insurance:
                  Issuance .......................................     (12,315)     (12,205)
                  Repayment ......................................      15,246       10,800
            Change in reinsurance recoverable ....................     (13,263)     (10,575)
            Change in other accounts receivable ..................      (7,661)       1,053
            Change in accrued investment income ..................       6,973        3,330
            Change in deferred policy
               acquisition costs, net ............................         174      (36,725)
            Change in liabilities for future policy
               benefits for  traditional life,
               disability income and
               long-term care insurance ..........................      32,150       24,463
            Change in policy claims and other
               policyholders' funds ..............................     (31,617)       6,969
            Change in deferred income taxes ......................       3,023           28
            Change in other liabilities ..........................      63,904       52,137
            Accretion of discount, net ...........................      (1,166)      (2,701)
            Net realized loss on investments .....................       2,823        5,258
            Policyholder and contractholder charges,
               non-cash ..........................................    (41,934)     ( 39,487)
            Other, net ...........................................       5,784          218
                                                                     ---------    ---------

               Net cash provided by (used in) operating activities   $ 154,078    $ 123,133
                                                                     ---------    ---------
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

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

                                                                                 Three months ended
                                                                                       March 31,
                                                                                 1998          1997
                                                                           ---------------   ---------
<S>                                                                         <C>            <C>
Cash flows from investing activities:
    Fixed maturities held to maturity:
        Purchases .......................................................   $         0     $        0
        Maturities, sinking fund payments and calls .....................       293,104        205,803
        Sales ...........................................................        56,007         29,789
    Fixed maturities available for sale:
        Purchases .......................................................      (891,593)      (946,213)
        Maturities, sinking fund payments and calls .....................       464,058        247,601
        Sales ...........................................................       111,604        155,972
    Other investments, excluding policy loans:
        Purchases .......................................................      (123,188)      (133,886)
        Sales ...........................................................       118,370         63,557
    Change in amounts due from broker ...................................         4,706          8,200
    Change in amounts due to broker .....................................       (17,233)       116,968
                                                                            -----------    -----------

               Net cash provided by (used in) investing activities ......        15,835       (252,209)
                                                                            -----------    -----------

Cash flows from financing activities:
    Activity related to universal life-type insurance
     and investment contracts:
        Considerations received .........................................       485,547        709,723
        Surrenders and death benefits ...................................      (947,015)      (897,537)
        Interest credited to account balances ...........................       338,815        346,904
    Universal life-type insurance policy loans:
        Issuance ........................................................       (25,429)       (23,572)
        Repayment .......................................................        18,483         18,926
    Cash dividends to parent ............................................       (60,000)       (45,000)
                                                                            -----------    -----------

               Net cash (used in) provided by financing activities .....       (189,599)       109,444
                                                                            -----------    -----------

Net decrease in cash and cash equivalents ...............................       (19,686)       (19,632)

Cash and cash equivalents at beginning of period ........................        19,686        224,603
                                                                            -----------    -----------

Cash and cash equivalents at end of period ..............................   $         0     $  204,971
                                                                            ===========    ===========

                                                  See accompanying notes
</TABLE>

<PAGE>

                           IDS LIFE INSURANCE COMPANY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                 March 31, 1998
                                  ($ thousands)
                                   (unaudited)

1.       General

         In the opinion of the management of IDS Life Insurance Company (the
         Company), the accompanying unaudited consolidated financial statements
         contain all adjustments (consisting of normal recurring adjustments)
         necessary to present fairly its balance sheet as of March 31, 1998,
         statements of income for the three months ended March 31, 1998 and 1997
         and statements of cash flows for the three months ended March 31, 1998
         and 1997.

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

         Purchased and written index options are carried at market value and
         included in other investments. Gains or losses on index options are
         recognized in management and other fees in the same period as the
         hedged fee income.

2.       Nature of business

         The Company is engaged in the life insurance and annuity business. The
         Company sells various forms of fixed and variable individual life
         insurance, group life insurance, individual and group disability income
         insurance, long-term care insurance, and single and installment premium
         fixed and variable annuities.

3.       Statements of cash flows

         The Company considers investments with a maturity at the date of their
         acquisition of three months or less to be cash equivalents. These
         securities are carried principally at amortized cost which approximates
         market value.

         Cash paid for interest on borrowings totaled $3,094 and $319 for the
         three months ended March 31, 1998, and 1997, respectively. Cash
         refunded for income taxes totaled $12,715 and $32,369 for the three
         months ended March 31, 1998 and 1997, respectively.


<PAGE>


                           IDS LIFE INSURANCE COMPANY

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

4.       Commitments and contingencies

         At March 31, 1998, the Company had commitments to purchase affordable
         housing limited partnership investments of $17,728, which are included
         in other liabilities. Commitments for purchases of investments in the
         ordinary course of business at March 31, 1998 aggregated $171,926.

         The maximum amount of risk retained by the Company on any one life is
         $750 of life and waiver of premium benefits plus $50 of accidental
         death benefits. The excesses are reinsured with other life insurance
         companies on a yearly renewable term basis.

         A number of lawsuits have been filed against life and health insurers
         in jurisdictions in which the Company and AEFC do business involving
         insurers' sales practices, alleged agent misconduct, failure to
         properly supervise agents, and other matters. The Company and AEFC,
         like other life and health insurers, from time to time are involved in
         such litigation. On December 13, 1996, an action entitled Lesa
         Benacquisto and Daniel Benacquisto vs. IDS Life Insurance Company and
         American Express Financial Corporation was commenced in Minnesota state
         court. The action is brought by individuals who replaced an existing
         Company insurance policy with a new Company policy. The plaintiffs
         purport to represent a class consisting of all persons who replaced
         existing Company policies with new policies from and after January 1,
         1985. The complaint puts at issue various alleged sales practices and
         misrepresentations, alleged breaches of fiduciary duties and alleged
         violations of consumer fraud statutes. Plaintiffs seek damages in an
         unspecified amount and also seek to establish a claims resolution
         facility for the determination of individual issues. The Company and
         AEFC filed an answer to the Complaint on February 18, 1997. A similar
         action entitled Mork and Melchert, et ux. vs. IDS Life Insurance
         Company involving the replacement of existing IDS Life insurance
         policies and annuity contracts was filed in the same court on March 21,
         1997.

         The Company is a defendant in various other lawsuits, none of which, in
         the opinion of the Company counsel, will result in a material
         liability.


<PAGE>


                           IDS LIFE INSURANCE COMPANY

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

5.       Accounting Changes

         Effective January 1, 1998, the Company adopted Statement of Financial
         Accounting Standards (SFAS) No. 130, "Reporting Comprehensive Income,".

         SFAS No. 130 requires the display of comprehensive income and its
         components. Comprehensive Income is defined as the aggregate change in
         shareholders' equity excluding changes in ownership interests. For the
         Company, it is the sum of unrealized gains or losses on
         available-for-sale securities, and net income. The components of
         comprehensive income, net of related tax, for the three month periods
         ended March 31, 1998 and 1997 were as follows (in millions):
<TABLE>
<CAPTION>

                                                                      1998                    1997
                                                               --------------------    --------------------
           <S>                                                      <C>                     <C>

           Net income                                               $131,957                $120,570
           Unrealized gains(losses) on securities                    ( 2,823)                ( 5,258)
                                                               ====================    ====================
           Total                                                    $129,134                $115,312
                                                               ====================    ====================
</TABLE>

         



<PAGE>


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

Results of Operations

Three Months Ended March 31, 1998 Compared to Three Months Ended March 31, 1997:

         Consolidated net income increased 9.4 percent to $132 million for the
three months ended March 31, 1998, compared to $121 million in 1997. Earnings
growth resulted primarily from increases in management fees and policyholder and
contractholder charges, partially offset by the impact of somewhat lower spread
rates.

         Premiums received totaled $1.1 billion for the three months ended March
31, 1998, compared to $1.3 billion a year ago. Increased sales of variable
annuities and life insurance were offset by decreased sales of fixed annuities,
reflecting current market conditions.

         Net investment income was $502 million for the three months ended March
31, 1998, compared to $495 million in 1997. The increase reflects slightly
higher average total investments partially offset by lower yields.

         Policyholder and contractholder charges increased to $94 million for
the three months ended March 31, 1998, compared with $83 million a year ago.
This increase is primarily due to higher life insurance in force.

         Management and other fees increased to $99 million for the three months
ended March 31, 1998, compared with $77 million a year ago. This is primarily
due to an increase in separate account assets, which grew 44 percent over the
past 12 months to $26 billion at March 31, 1998, due to market appreciation and
sales. The Company provides investment management services for the mutual funds
which are used as investment options for variable annuities and variable life
insurance. The Company also receives a mortality and expense risk fee from the
separate accounts.

         Total benefits and expenses were $549 billion for the three months
ended March 31, 1998, an increase of 6.1 percent from a year ago. The largest
component of expenses, interest credited on universal life-type insurance and
investment contracts, decreased to $339 million, compared with $347 million for
the corresponding period in 1997. This is due to lower aggregate amounts of
fixed annuities in force and lower crediting rates, reflecting market
conditions. Increases in amortization of DAC and other insurance and operating
expenses are primarily due to an increase in business in force.

<PAGE>

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

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 totaling
$100 million. This line of credit is used strictly as a short-term source of
funds. At March 31, 1998, outstanding borrowings under this agreement were $nil.
The Company also uses reverse repurchase agreements for short-term liquidity
needs. Outstanding reverse repurchase agreements totaled $203 million at March
31, 1998.

         At March 31, 1998, approximately 9.6 percent of the Company's invested
assets were below-investment-grade bonds, compared to 11 percent at December 31,
1997. These investments may be subject to a higher degree of risk than
higher-rated issues because of the borrowers' generally greater sensitivity to
adverse economic conditions, such as recession or increasing interest rates, and
in certain instances the lack of an active secondary market. Expected returns on
below-investment-grade bonds reflect consideration of such factors. The Company
has identified those fixed maturities for which a decline in fair value is
determined to be other than temporary, and has written them down to fair value
with a charge to earnings.

         For the three months ended March 31, 1998, sales of fixed maturities
held to maturity were due to significant deterioration in the issuers'
creditworthiness.

         At March 31, 1998, the Company had an allowance for losses on mortgage
loans of $44 million.

         The Company paid $60 million in dividends to its parent during the
three months ended March 31, 1998.

Accounting Change

         In March 1998, the American Institute of Certified Public Accountants
issued Statement of Position (SOP) 98-1, Accounting for the Costs of Computer
Software Developed or Obtained for Internal Use. The SOP is effective for the
Company beginning January 1, 1999. The SOP will require the capitalization of
certain costs incurred subsequent to December 31, 1998, in connection with 
developing or obtaining software for internal use. Adoption of the SOP will
not have a material impact on the Company's future earnings or financial
position.
<PAGE>


PART II - OTHER INFORMATION

Item 1.    LEGAL PROCEEDINGS

           Reference is made to Note 4 of the Notes to Consolidated Financial
           Statements (unaudited) contained in the Report filed on Form 10-Q for
           the quarterly period ended March 31, 1998.

Item 2.    CHANGES IN SECURITIES

           Not applicable.

Item 3.    DEFAULTS UPON SENIOR SECURITIES

           Not applicable.

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

           Not applicable.

Item 5.    OTHER INFORMATION

           Not applicable.

Item 6.    EXHIBITS AND REPORTS ON FORM 8-K

           (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.

                  4.1  Copy of 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 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.

<PAGE>

                  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 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.

                  4.6  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.
 
                  4.7  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.

                  4.8  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.

                  27.  Financial data schedule is filed electronically herewith.

     (b)  No reports on Form 8-K were  required  to be filed by the  Company for
          the three months ended March 31, 1998.
<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

NAME AND TITLE                 Stuart A. Sedlacek
                               Executive Vice President and Controller

DATE                           May 11, 1998