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, 2001

                                       OR

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

For the transition period from                                     to

                            Commission file number 33-28976

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

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

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

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

     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, 2001

                                Table of Contents

PART I - FINANCIAL INFORMATION                                         Page

         Item 1. Financial Statements

                  Consolidated Balance Sheets as of
                  March 31, 2001 (unaudited) and
                  December 31, 2000                                   3 - 4

                  Consolidated Statements of Income for the
                  three months ended March 31, 2001 and 2000
                  (unaudited)                                             5

                  Consolidated Statements of Cash Flows for the
                  three months ended March 31, 2001 and 2000
                  (unaudited)                                         6 - 7

                  Notes to Consolidated Financial Statements
                  (unaudited)                                         8 - 14

         Item 2. Management's Discussion and Analysis of
                  Consolidated Financial Condition and
                  Results of Operations                              15 - 16

PART II - OTHER INFORMATION                                          17 - 21

SIGNATURES                                                                22


<PAGE>

                                     IDS LIFE INSURANCE COMPANY
                                    CONSOLIDATED BALANCE SHEETS
                                           ($ thousands)

<TABLE>
<CAPTION>
<S>                                                          <C>                   <C>

                                                                March 31,            December 31,
ASSETS                                                            2001                   2000
                                                             ----------------      ------------------
                                                               (unaudited)
Investments:
    Fixed Maturities:
       Held to maturity, at amortized cost (Fair value:
            2001, $0; 2000, $6,471,798)                             $     --              $6,463,613
       Available for sale, at fair value (Amortized cost:
            2001, $19,084,958; 2000, $12,929,870)                 19,097,980              12,399,990
                                                             ----------------      ------------------

                                                                  19,097,980              18,863,603

    Mortgage loans on real estate                                  3,740,299               3,738,091
    Policy loans                                                     618,580                 618,973
    Other investments                                                598,365                 635,880
                                                             ----------------      ------------------

                  Total investments                               24,055,224              23,856,547

Cash and cash equivalents                                            389,019                 316,974

Amounts recoverable from reinsurers                                  438,220                 416,480

Amounts due from brokers                                              10,904                  15,302

Other accounts receivable                                             61,502                  42,324

Accrued investment income                                            303,891                 334,928

Deferred policy acquisition costs                                  2,914,016               2,951,655

Deferred income taxes                                                 31,618                 136,588

Other assets                                                         122,180                  25,919

Separate account assets                                           27,386,105              32,349,347
                                                             ----------------      ------------------

                  Total assets                                   $55,712,679             $60,446,064
                                                             ================      ==================
</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>
<S>                                                           <C>                   <C>
                                                                 March 31,            December 31,
LIABILITIES AND STOCKHOLDER'S EQUITY                               2001                   2000
                                                              ----------------      ------------------
                                                                (unaudited)
Liabilities:
    Future policy benefits:
       Fixed annuities                                            $19,224,059             $19,417,446
       Universal life-type insurance                                3,413,597               3,410,871
       Traditional life insurance                                     234,570                 232,913
       Disability income and
           long-term care insurance                                 1,055,941               1,012,247
    Policy claims and other
       policyholders' funds                                            66,748                  52,067
    Amounts due to brokers                                            510,091                 446,347
    Other                                                             470,244                 459,422
    liabilities
    Separate account liabilities                                   27,386,105              32,349,347
                                                              ----------------      ------------------

                     Total liabilities                             52,361,355              57,380,660
                                                              ----------------      ------------------

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                 288,327
    Accumulated other comprehensive loss, net of tax:
        Net unrealized securities losses                             (20,280)              (333,734)
        Net unrealized derivative losses                               (2,606)                     --
    Retained earnings                                               3,082,883               3,107,811
                                                              ----------------      ------------------

                     Total stockholder's equity                     3,351,324               3,065,404
                                                              ----------------      ------------------

Total liabilities and stockholder's equity                        $55,712,679             $60,446,064
                                                              ================      ==================






</TABLE>


                             See accompanying notes.

<PAGE>

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

<TABLE>
<CAPTION>
<S>                                                                   <C>                   <C>
                                                                                Three months ended
                                                                                     March 31,
                                                                           2001                   2000
                                                                      ---------------       ------------------
Revenues:
    Premiums:
       Traditional life insurance                                            $14,457                 $13,719
       Disability income and
         long-term care insurance                                             60,489                  54,277
                                                                      ---------------       ------------------
                                   Total premiums                             74,946                  67,996

    Policyholder and contractholder charges                                  119,654                 120,027
    Management and other fees                                                124,595                 144,192
    Net investment income                                                    417,947                 463,263
    Net realized loss on investments                                        (127,430)                (20,895)
                                                                      ----------------      ------------------
                                   Total revenues                            609,712                 774,583

                                                                      ----------------      ------------------

Benefits and expenses:
    Death and other benefits:
       Traditional life insurance                                              8,673                   8,499
       Universal life-type insurance
             and investment contracts                                         45,819                  31,747
       Disability income and
             long-term care insurance                                         10,319                   9,448
    Increase in liabilities for
       future policy benefits:
             Traditional life insurance                                        1,605                   1,838
             Disability income and
                long-term care insurance                                      24,691                  24,732
    Interest credited on universal life-type
       insurance and investment contracts                                    277,474                 299,293
    Amortization of deferred policy
       acquisition costs                                                     156,246                  95,187
    Other insurance and operating expenses                                   116,356                  89,339
                                                                      ---------------       ------------------
                                   Total benefits and expenses               641,183                 560,083
                                                                      ---------------       ------------------

Income (loss) before income tax expense (benefit)                           (31,471)                 214,500

Income tax expense     (benefit)                                            (27,954)                  62,154
                                                                      ---------------       ------------------

Net income (loss) before cumulative effect of accounting change              (3,517)                 152,346

Cumulative effect of accounting change (net of tax of $11,647):             (21,410)                      --
(note 4)

                                                                      ---------------       ------------------
Net income    (loss)                                                       $(24,927)                $152,346
                                                                      ===============       ==================
</TABLE>

                             See accompanying notes.

<PAGE>

                                    IDS LIFE INSURANCE COMPANY
                               CONSOLIDATED STATEMENTS OF CASH FLOWS
                                           ($thousands)
                                            (unaudited)
<TABLE>
<CAPTION>
<S>                                                           <C>                   <C>
                                                                       Three months ended
                                                                            March 31,
                                                                   2001                  2000
                                                              ----------------      ----------------
Cash flows from operating activities:
    Net income (loss)                                                                      $152,346
                                                              $(24,927)
    Adjustments  to  reconcile  net  income to net cash  provided  by  operating
       activities:
             Cumulative effect of accounting change, net of
                tax                                                    21,410                   --
             Policy loans, excluding universal
                life-type insurance:
                  Issuance                                            (12,610)             (14,519)
                  Repayment                                            13,689                13,482
             Change in amounts recoverable from reinsurers            (21,740)             (16,335)
             Change in other accounts receivable                      (19,178)             (23,215)
             Change in accrued investment income                       31,037                 2,740
             Change in deferred policy
                acquisition costs, net                                 22,352              (41,037)
             Change in liabilities for future policy
                benefits for  traditional life,
                disability income and
                long-term care insurance                               45,351                48,878
             Change in policy claims and other
                policyholders' funds                                   14,681                21,582
             Change in deferred income taxes                          (62,409)               (8,772)
             Change in other assets                                   (84,099)               (4,322)
             Change in other liabilities                               10,822               142,452
             Accretion of discount, net                                16,013                (6,266)
             Net realized loss on investments                         127,430                20,895
             Policyholder and contractholder charges,
                non-cash                                              (55,090)              (39,074)
             Other, net                                                (3,065)                6,990
                                                              -----------------     -----------------

                Net cash provided by operating activities              $19,667            $255,825
                                                              -----------------     ----------------

</TABLE>



<PAGE>

                                     IDS LIFE INSURANCE COMPANY
                                CONSOLIDATED STATEMENTS OF CASH FLOWS
                                            ($ thousands)
                                             (unaudited)
                                             (continued)
<TABLE>
<CAPTION>
<S>                                                           <C>                   <C>
                                                                        Three months ended
                                                                             March 31,
                                                                   2001                   2000
                                                              ----------------      ------------------
Cash flows from investing activities: Fixed maturities held to maturity:
       Maturities, sinking fund payments and calls                    $    --                $127,344
       Sales                                                                --                  8,193
    Fixed maturities available for sale:
       Purchases                                                     (699,732)              (418,496)
       Maturities, sinking fund payments and calls                    501,736                 284,047
       Sales                                                          325,666                 161,170
    Other investments, excluding policy loans:
       Purchases                                                     (103,070)              (136,419)
       Sales                                                           95,893                 110,564
    Change in amounts due from broker                                   4,398                   (362)
    Change in amounts due to broker                                    63,744                 (6,450)
                                                              -----------------      -----------------

              Net cash provided by investing activities               188,635                129,591
                                                              -----------------      -----------------

Cash flows from financing activities:
    Activity related to universal life-type insurance
     and investment contracts:
       Considerations received                                        460,607                 432,063
       Surrenders and death benefits                                 (873,652)            (1,023,136)
       Interest credited to account balances                          277,474                 299,293
    Universal life-type insurance policy loans:
       Issuance                                                       (25,484)               (31,885)
       Repayment                                                       24,798                  19,337
    Cash dividends to parent                                               --                (70,000)
                                                              -----------------      -----------------

              Net cash used in financing activities                  (136,257)              (374,328)
                                                              -----------------      -----------------

Net increase in cash and cash equivalents                              72,045                  11,088

Cash and cash equivalents at beginning of period                      316,974                 32,333
                                                              -----------------      -----------------

Cash and cash equivalents at end of period                            $389,019                $43,421
                                                              =================      =================


</TABLE>


                             See accompanying notes.




<PAGE>

                           IDS LIFE INSURANCE COMPANY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                 March 31, 2001
                                  ($ 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, 2001,  statements of income for
the three months ended March 31, 2001 and 2000 and  statements of cash flows for
the three months ended March 31, 2001 and 2000.

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

2. Comprehensive Income

     Total  comprehensive  income was $285,921 and $100,211 for the three months
ended March 31, 2001 and 2000 respectively.

3. Statements of cash flows

     Cash paid for  interest  on  borrowings  totaled  $5,188 and $1,208 for the
three months ended March 31, 2001,  and 2000,  respectively.  Cash received from
income taxes totaled  $49,468 for the three months ended March 31, 2001 compared
to cash paid of $(915) for the three months ended March 31, 2000.




<PAGE>

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

4. Accounting developments

     In July 2000,  the  FASB's  Emerging  Issues  Task  Force  (EITF)  issued a
consensus on Issue 99-20,  "Recognition  of Interest  Income and  Impairment  on
Purchased and Retained Beneficial Interests in Securitized Financial Assets. The
Company elected to early adopt the consensus as of January 1, 2001." Issue 99-20
prescribes new procedures for recording interest income and measuring impairment
on retained and  purchased  beneficial  interests.  The rule  primarily  affects
certain high-yield  investments contained in certain structured securities whose
cash flows have been negatively affected by credit experience. The rule required
the  Company to adjust the  carrying  amount of these  investments  downward  by
$21,410, net of tax.

     In June 1998, the Financial  Accounting  Standards Board (FASB) issued, and
subsequently  amended,  Statement of Financial  Accounting  Standards (SFAS) No.
133,  "Accounting for Derivative  Instruments and Hedging Activities," which the
Company  adopted on January 1, 2001. This Statement  establishes  accounting and
reporting standards for derivative instruments, including some embedded in other
contracts,  and hedging  activities.  It requires  that an entity  recognize all
derivatives  as either  assets or  liabilities  on the balance sheet and measure
those  instruments  at fair  value.  Derivatives  that  are not  hedges  must be
adjusted to fair value through income.

     Changes  in the fair  value of a  derivative  are  recorded  in  income  or
directly to equity,  depending  on the  instrument's  designated  use. For those
derivative  instruments  that are designated and qualify as hedging  instruments
under SFAS 133, a company must designate the hedging instrument,  based upon the
exposure being hedged,  as either a fair value hedge, cash flow hedge or a hedge
of a net  investment in a foreign  operation.  For  derivative  instruments  not
designated  as  hedging  instruments  per SFAS 133,  changes  in fair  value are
adjusted   immediately  through  earnings.   Currently,   IDSL  does  not  carry
derivatives  that are  designated or qualify as hedging  instruments  under SFAS
133.

     Because of changes to the rules for  hedging  investments,  the  transition
provisions of SFAS 133, as amended, permitted held-to-maturity  securities under
SFAS  No.  115,   "Accounting  for  Certain   Investments  in  Debt  and  Equity
Securities," to be reclassified at the date of adoption to available-for-sale or
trading.   The  Company   reclassified   all   held-to-maturity   securities  to
available-for-sale upon adoption.

     The adoption of SFAS 133 did not have a significant impact on the Company's
financial condition or results of operations.


<PAGE>

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

5. Derivative instruments and hedging activities

     IDSL maintains an overall risk management  strategy that  incorporates  the
use of derivative  instruments to minimize significant unplanned fluctuations in
earnings  that are caused by interest rate and equity  market  volatility.  IDSL
enters  into  interest  rate  swaps,  caps and  floors to manage  the  Company's
interest  rate risk and  options and futures to manage  equity-based  risk.  The
Company manages risks associated with these instruments as described below.

     Market risk is the possibility  that the value of the derivative  financial
instruments  will  change  due  to  fluctuations  in a  factor  from  which  the
instrument derives its value, primarily an interest rate or equity market index.
The  Company is not  impacted  by market risk  related to  derivatives  held for
non-trading   purposes  beyond  that  inherent  in  cash  market   transactions.
Derivatives held for purposes other than trading are largely used to manage risk
and, therefore,  the cash flow and income effects of the derivatives are inverse
to the effects of the underlying transactions.

     Credit risk is the possibility that the  counterparty  will not fulfill the
terms of the contract.  The Company  monitors  credit risk related to derivative
financial instruments through established approval procedures, including setting
concentration   limits  by  counterparty,   and  requiring   collateral,   where
appropriate.  A vast  majority of the  Company's  counterparties  are rated A or
better by Moody's and Standard & Poor's.

     The carrying values of derivative financial instruments are based on market
values,  dealer quotes or pricing  models.  The interest  rate caps,  floors and
swaps  expire on various  dates from 2001 to 2003.  The  purchased  and  written
options expire on various dates from 2001 to 2006.

     Interest  rate caps,  swaps and floors are used  principally  to manage the
Company's  interest rate risk. These  instruments are used to protect the margin
between  interest rates earned on investments and the interest rates credited to
related annuity contract holders.


<PAGE>

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

5. Derivative instruments and hedging activities (continued)

     The Company  also uses  interest  rate swaps to manage  interest  rate risk
related  to the level of fee income  earned on the  management  of fixed  income
securities in separate  accounts and the underlying  mutual funds. The amount of
fee income received is based upon the daily market value of the separate account
and mutual fund assets.  As a result,  changing  interest rate conditions  could
impact the Company's fee income significantly. The Company entered into interest
rate swaps to hedge anticipated fee income for 2000 related to separate accounts
and mutual funds which invest in fixed income securities.  Interest was reported
in management and other fees.

     The Company  offers an annuity  product that pays  interest  based upon the
relative  change in a major stock market index  between the beginning and end of
the  product's  term.  This  annuity  product  contains an embedded  derivative,
essentially the equity based return on the annuity,  that must be separated from
the host contract and accounted for as a derivative instrument per SFAS No. 133.
As a result of fluctuations in the equity markets, the corresponding  changes in
value of the embedded  derivative will negatively or positively  impact reported
earnings.  As a means of reducing volatility  associated with this product,  the
Company  purchases  and writes  options on the major  stock  market  index.  The
Company  views  this   strategy  as  a  prudent   management  of  equity  market
sensitivity,  such that  earnings  are not  exposed to undue risk  presented  by
changes in equity market levels.

     Index  options are used to manage the equity market risk related to the fee
income that the Company  receives from its separate  accounts and the underlying
mutual  funds.  The  amount of the fee income  received  is based upon the daily
market value of the separate  account and mutual fund assets.  As a result,  the
Company's  fee income could be impacted  significantly  by  fluctuations  in the
equity  market.  There are no index  options  outstanding  as of March 31,  2001
related to this strategy.

6. Commitments and contingencies

     Commitments for purchases of investments in the ordinary course of business
at March 31, 2001 aggregated $62,873.


<PAGE>

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

6. Commitments and contingencies (continued)

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

     A number of lawsuits  have been filed  against life and health  insurers in
jurisdictions in which IDS Life and AEFC do business  involving  insurers' sales
practices,  alleged agent misconduct,  failure to properly  supervise agents and
other matters. IDS Life 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 v. 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 IDS Life
insurance policy with a new IDS Life policy. The plaintiffs purport to represent
a class  consisting of all persons who replaced  existing IDS Life policies with
new IDS Life 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.  IDS Life  and AEFC  filed an  answer  to the  complaint  on
February 18, 1997,  denying the  allegations.  A second action,  entitled Arnold
Mork,  Isabella Mork,  Ronald  Melchert and Susan Melchert v. IDS Life Insurance
Company and American  Express  Financial  Corporation  was commenced in the same
court on March  21,  1997.  In  addition  to  claims  that are  included  in the
Benacquisto  lawsuit,  the second  action  includes  an  allegation  of improper
replacement of an existing IDS Life annuity contract. It seeks similar relief to
the initial lawsuit.




<PAGE>

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

6. Commitments and contingencies (continued)

     On  October  13,  1998,  an action  entitled  Richard W. and  Elizabeth  J.
Thoresen v. American  Express  Financial  Corporation,  American  Centurion Life
Assurance Company, American Enterprise Life Insurance Company, American Partners
Life  Insurance  Company,  IDS Life  Insurance  Company  and IDS Life  Insurance
Company of New York was also commenced in Minnesota state court.  The action was
brought by individuals who purchased an annuity in a qualified plan. They allege
that the sale of annuities in tax-deferred  contributory  retirement  investment
plans (e.g., IRAs) is never  appropriate.  The plaintiffs purport to represent a
class consisting of all persons who made similar purchases.  The plaintiffs seek
damages in an  unspecified  amount,  including  restitution  of  allegedly  lost
investment earnings and restoration of contract values.

     In January 2000, AEFC reached an agreement in principle to settle the three
class-action  lawsuits  described  above.  It is expected  the  settlement  will
provide $215 million of benefits to more than two million  participants  and for
release by class  members of all  insurance and annuity  market  conduct  claims
dating back to 1985.

     In August,  2000 an action entitled Lesa Benacquisto,  Daniel  Benacquisto,
Richard  Thoresen,  Elizabeth  Thoresen,  Arnold  Mork,  Isabella  Mork,  Ronald
Melchert and Susan Melchert v. American Express Financial Corporation,  American
Express Financial Advisors,  American Centurion Life Assurance Company, American
Enterprise Life Insurance Company, American Partners Life Insurance Company, IDS
Life Insurance  Company and IDS Life Insurance Company of New York was commenced
in the United States District Court for the District of Minnesota. The complaint
put  at  issue  various  alleged  sales  practices  and  misrepresentations  and
allegations of violations of federal laws.

     In September,  2000 the plaintiffs filed a consolidated  complaint in State
Court alleging the same claims as the previous actions.

     On October 2, 2000 the District  Court,  Fourth  Judicial  District for the
State of Minnesota,  County of Hennepin and the United States District Court for
the District of Minnesota entered an order conditionally  certifying a class for
settlement purposes, preliminarily approving the class settlement, directing the
issuance of a class  notice to the class and  scheduling  a hearing to determine
the fairness of settlement for March, 2001.


<PAGE>

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

6. Commitments and contingencies (continued)

     On March 6, 2001 the District Court, Fourth Judicial District for the State
of Minnesota,  County of Hennepin and the United States  District  Court for the
District of  Minnesota  heard oral  arguments on  plaintiffs'  motions for final
approval of the class action  settlement.  Six motions to  intervene  were filed
together  with  objections to the proposed  settlement.  We are awaiting a final
order from the court.



<PAGE>


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

Results of Operations

Three Months Ended March 31, 2001 Compared to Three Months Ended March 31, 2000:

     Consolidated  net loss was $25 million for the three months ended March 31,
2001,  compared to net income of $152 million in 2000. This decline  reflects an
approximately  $140  million  pre-tax loss from  write-down  and sale of certain
high-yield securities, continued weakness in equity markets and narrower spreads
on the investment portfolio.

     Premiums received totaled $1.5 billion for the three months ended March 31,
2001,  compared to $1.7 billion in 2000. The premium  reduction is primarily due
to decreased sales of variable annuities.

     Management  and other fees  decreased  to $125 million for the three months
ended March 31, 2001  compared  with $144 million a year ago. This was primarily
due to a decrease in average  separate  account  assets  outstanding,  resulting
primarily from market  depreciation of equity  securities.  The Company provides
investment  management  services  for many of the mutual funds which are used as
investment  options for variable  annuities  and variable  life  insurance.  The
Company  also  receives  a  mortality  and  expense  risk fee from the  separate
accounts.

     Net investment  income decreased to $417 million for the three months ended
March 31, 2000  compared to $463 million a year ago.  This is  primarily  due to
lower investment yields, reflecting credit-related yield adjustments.

     Net realized  loss on  investments  increased to $127 million for the three
months  ended  March 31,  2000  compared  to $21  million  a year  ago.  This is
primarily due to the write-down and sale of certain high-yield investments.

     Total  benefits and  expenses  were $641 million for the three months ended
March 31,  2001,  an increase of 14 percent  from a year ago.  This  increase is
primarily  due to a $67  million  adjustment  to the  amortization  of  Deferred
Acquisition Costs (DAC) for variable annuity and insurance  products as a result
of the decline in equity markets.

     The largest component of expenses, interest credited on universal life-type
insurance and investment  contracts,  decreased 7 percent to $277 million.  This
was primarily due to lower aggregate amounts of fixed annuities in force.  Other
insurance  and operating  expenses  increased 33 percent as a result of business
growth and technology costs related to growth initiatives.


<PAGE>

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

Liquidity and Capital Resources

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

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

     The Company has an available line of credit with its parent of $200 million
($100 million  committed and $100 million  uncommitted).  This line of credit is
used strictly as a short-term  source of funds.  At March 31, 2001,  outstanding
borrowings under this agreement were $50 million.  The Company also uses reverse
repurchase  agreements  for  short-term  liquidity  needs.  Outstanding  reverse
repurchase agreements totaled $2 million at March 31, 2001.

     At March 31,  2001,  approximately  12  percent of the  Company's  invested
assets were below-investment-grade bonds, compared to 15 percent at December 31,
2000.  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.  In recent months, the industry-wide  default rate on
below-investment-grade  bonds  has  increased  significantly  and this  trend is
expected  to  continue  over the  next  several  months  and  possibly  beyond.*
Additional  investment  security  losses  throughout  the  remainder of 2001 are
likely but the amount of these  losses is  dependent  on a number of factors and
cannot be estimated at this time.* Management  believes that there will not be a
significant adverse impact on the Company's consolidated financial position.*

     At March 31,  2001,  the  Company had an  allowance  for losses on mortgage
loans of $12 million.




     * Statements  in this  discussion  of the  Company's  liquidity and capital
resources  marked  with an asterisk  are  forward-looking  statements  which are
subject to risks and  uncertainties.  Important factors that could cause results
to differ materially from these forward-looking  statements include, among other
things,  changes in the ability of issuers of investment  securities held by the
Company to meet their debt obligations.

<PAGE>

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

PART II - OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

     Reference  is  made  to  Note  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, 2001.

Item 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

        Not applicable.

Item 3. DEFAULTS UPON SENIOR SECURITIES

        Not applicable.

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

        Not applicable.

Item 5. OTHER INFORMATION

        Not applicable.

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

        (a)  Exhibits

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

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

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


<PAGE>

PART II - OTHER INFORMATION (continued)

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

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

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

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

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

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

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

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

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


<PAGE>

PART II - OTHER INFORMATION (continued)

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

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

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

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

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

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

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

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

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


<PAGE>
PART II - OTHER INFORMATION (continued)

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

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

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

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

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

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

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

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

     21.  Copy of List of  Subsidiaries  filed  electronically  as Exhibit 21 to
Post-Effective  Amendment No. 7 to Registration Statement No. 33-28976 is herein
incorporated by reference.

<PAGE>



PART II - OTHER INFORMATION (continued)


     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, 2001.


<PAGE>


SIGNATURES

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

REGISTRANT                                  IDS LIFE INSURANCE COMPANY

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

DATE                                       May 11, 2001