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 June 30, 2002

                                       OR

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

For the transition period from                                     to

                         Commission file number 33-28976

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

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

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

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

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

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


<PAGE>

                           IDS LIFE INSURANCE COMPANY

                                    FORM 10-Q

                       For the Quarter Ended June 30, 2002

                                Table of Contents

PART I - FINANCIAL INFORMATION                                             Page

   Item 1.  Financial Statements

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

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

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

            Notes to Consolidated Financial Statements
            (unaudited)                                                  9 - 12

   Item 2.  Management's Discussion and Analysis of
            Consolidated Financial Condition and
            Results of Operations                                       13 - 15

PART II - OTHER INFORMATION                                             16 - 20

SIGNATURES                                                                   21




<PAGE>

<TABLE>
<CAPTION>
                           IDS LIFE INSURANCE COMPANY
                           CONSOLIDATED BALANCE SHEETS
                                 (In thousands)


                                                                  June 30,            December 31,
ASSETS                                                              2002                  2001
                                                                 (unaudited)
Investments:
    Available for sale:
       Fixed maturities, at fair value (Amortized cost:
<S>                                                           <C>                     <C>
            2002, $20,059,945; 2001, $20,022,072)             $20,384,521             $20,157,137
       Common stocks, at fair value (Cost: 2002,
       $21,451; 2001, $805)                                        21,794                   1,704
    Mortgage loans on real estate                               3,591,370               3,680,394
    Policy loans                                                  603,741                 619,571
    Other investments                                             709,772                 621,897
                                                              -----------             -----------

                  Total investments                            25,311,198              25,080,703

Cash and cash equivalents                                       1,106,536               1,150,251

Amounts recoverable from reinsurers                               586,738                 529,166

Amounts due from brokers                                          148,221                  90,794

Other accounts receivable                                          63,084                  46,349

Accrued investment income                                         278,864                 278,199

Deferred policy acquisition costs                               3,236,427               3,107,187

Deferred income taxes                                              84,450                 156,308

Other assets                                                      114,145                 123,246

Separate account assets                                        24,569,120              27,333,697
                                                              -----------             -----------

                  Total assets                                $55,498,783             $57,895,900
                                                              ===========             ===========
</TABLE>
                             See accompanying notes.

                                      -3-
<PAGE>

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

                                                                 June 30,            December 31,
LIABILITIES AND STOCKHOLDER'S EQUITY                               2002                  2001
                                                               (unaudited)
Liabilities:
    Future policy benefits:
<S>                                                            <C>                    <C>
       Fixed annuities                                         $20,621,461            $19,592,273
       Universal life-type insurance                             3,459,044              3,433,904
       Traditional life insurance                                  258,616                241,165
       Disability income and
           long-term care insurance                              1,340,877              1,227,172
    Policy claims and other
       policyholders' funds                                         79,124                 71,879
    Amounts due to brokers                                         759,874              1,740,031
    Other liabilities                                              340,672                437,017
    Separate account liabilities                                24,569,120             27,333,697
                                                               ------------           ------------

                     Total liabilities                          51,428,788             54,077,138
                                                               ------------           ------------

Stockholder's equity:
    Capital stock, $30 par value per share;
       100,000 shares authorized, issued and outstanding             3,000                  3,000
    Additional paid-in capital                                     688,327                688,327
    Accumulated other comprehensive income,
        net of tax:
        Net unrealized securities gains                            204,391                 85,549
        Net unrealized derivative losses                              (448)                  (774)
                                                               ------------           ------------

            Total accumulated other comprehensive income           203,943                 84,775
    Retained earnings                                            3,174,725              3,042,660
                                                               ------------           ------------

                     Total stockholder's equity                  4,069,995              3,818,762
                                                               ------------           ------------

Total liabilities and stockholder's equity                     $55,498,783            $57,895,900
                                                               ============           ============
</TABLE>

                             See accompanying notes.

                                      -4-
<PAGE>

<TABLE>
<CAPTION>
                           IDS LIFE INSURANCE COMPANY
                        CONSOLIDATED STATEMENTS OF INCOME
                                 (In thousands)
                                   (unaudited)
                                                                                Three months ended
                                                                                     June 30,
                                                                             2002                   2001
Revenues:
    Premiums:
<S>                                                                       <C>                   <C>
       Traditional life insurance                                         $ 16,752              $  15,003
       Disability income and
       long-term care insurance                                             66,335                 62,196
                                                                            ------                 ------
                                      Total premiums                        83,087                 77,199

    Policyholder and contractholder charges                                129,764                121,451
    Management and other fees                                              108,835                120,921
    Net investment income                                                  381,953                256,510
    Net realized loss on investments                                       (40,590)              (488,289)
                                                                           -------               --------
                                      Total revenues                       663,049                 87,792
                                                                           -------                 ------
Benefits and expenses:
    Death and other benefits:
       Traditional life insurance                                           10,992                  8,796
       Universal life-type insurance
         and investment contracts                                           51,328                 30,500
    Disability income and
         long-term care insurance                                           12,610                 11,137
Increase in liabilities for
    future policy benefits:
         Traditional life insurance                                          2,636                  1,656
         Disability income and
              long-term care insurance                                      34,943                 29,174
Interest credited on universal life-type
    insurance and investment contracts                                     274,640                291,027
Amortization of deferred policy
    acquisition costs                                                       90,502                 71,128
Other insurance and operating expenses                                     105,752                 97,326
                                                                           -------                 ------
                                      Total benefits and expenses          583,403                540,744
                                                                           -------                -------

Income (loss) before income tax expense (benefit)                           79,646               (452,952)
Income tax expense (benefit)                                                 7,915               (177,626)
                                                                             -----               --------
Net income (loss)                                                         $ 71,731              $(275,326)
                                                                          ========              =========
</TABLE>

                             See accompanying notes.

                                      -5-
<PAGE>

<TABLE>
<CAPTION>
                           IDS LIFE INSURANCE COMPANY
                        CONSOLIDATED STATEMENTS OF INCOME
                                 (In thousands)
                                   (unaudited)
                                                                           Six months ended
                                                                                June 30,
                                                                        2002              2001
Revenues:
    Premiums:
<S>                                                                  <C>               <C>
       Traditional life insurance                                    $   32,664        $   29,460
       Disability income and
         long-term care insurance                                       131,720           122,685
                                                                      ----------       -----------
                                   Total premiums                       164,384           152,145

    Policyholder and contractholder charges                             254,815           241,105
    Management and other fees                                           220,005           245,516
    Net investment income                                               781,854           673,944
    Net realized loss on investments                                   (45,314)          (615,206)
                                                                      -----------     ------------
                                   Total revenues                     1,375,744           697,504
                                                                      -----------     ------------
Benefits and expenses:
    Death and other benefits:
       Traditional life insurance                                        18,187            17,469
       Universal life-type insurance
             and investment contracts                                    97,719            76,319
       Disability income and
             long-term care insurance                                    24,778            21,456
    Increase in liabilities for
       future policy benefits:
             Traditional life insurance                                   4,425             3,261
             Disability income and
                long-term care insurance                                 64,017            53,865
    Interest credited on universal life-type
       insurance and investment contracts                               553,920           568,501
    Amortization of deferred policy
       acquisition costs                                                165,674           227,374
    Other insurance and operating expenses                              200,482           213,683
                                                                      ----------       -----------
                                   Total benefits and expenses        1,129,202         1,181,928
                                                                      ----------       -----------

Income (loss) before income tax expense (benefit)                       246,542          (484,424)

Income tax expense (benefit)                                             46,581          (205,580)
                                                                      ----------       -----------

Net income (loss) before cumulative effect of accounting change         199,961          (278,844)

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

Net income (loss)                                                    $   199,961       $ (300,254)
                                                                      ==========       ===========
</TABLE>

                             See accompanying notes.

                                      -6-
<PAGE>

<TABLE>
<CAPTION>
                           IDS LIFE INSURANCE COMPANY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In thousands)
                                   (unaudited)
                                                                        Six months ended
                                                                            June 30,
                                                                    2002             2001
Cash flows from operating activities:
<S>                                                              <C>                 <C>
    Net income (loss)                                            $ 199,961           $(300,254)
    Adjustments to reconcile net income (loss) to
       net cash provided by operating activities:
             Cumulative effect of accounting change, net of
                Tax                                                     --              21,410
             Policy loans, excluding universal
                life-type insurance:
                  Issuance                                         (18,974)            (25,302)
                  Repayment                                         25,028              27,873
             Change in amounts recoverable from reinsurers         (57,572)            (48,002)
             Change in other accounts receivable                   (16,735)            (30,843)
             Change in accrued investment income                      (665)             23,419
             Change in deferred policy
                acquisition costs, net                            (135,362)            (43,297)
             Change in liabilities for future policy
                benefits for traditional life,
                disability income and
                long-term care insurance                           131,156              99,121
             Change in policy claims and other
                policyholders' funds                                 7,245              25,121
             Change in deferred income taxes                         7,690            (339,915)
             Change in other assets                                  9,101             (98,753)
             Change in other liabilities                           (96,345)            109,490
             Accretion of discount, net                             31,399             192,475
             Net realized loss on investments                       45,314             615,206
             Contractholder charges, non-cash                     (112,063)           (108,454)
             Other, net                                             (9,816)             (2,939)
                                                                  ----------         ----------

                Net cash provided by operating activities        $   9,362           $ 116,356
                                                                  ----------         ----------
</TABLE>

                                      -7-
<PAGE>

<TABLE>
<CAPTION>
                           IDS LIFE INSURANCE COMPANY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In thousands)
                                   (unaudited)
                                   (continued)
                                                                          Six months ended
                                                                              June 30,
                                                                      2002                2001
Cash flows from investing activities:
    Fixed maturities available for sale:
<S>                                                               <C>                 <C>
       Purchases                                                  $(4,894,562)        $(3,603,262)
       Maturities, sinking fund payments and calls                  1,604,836           1,126,799
       Sales                                                        3,226,222           1,925,753
    Other investments, excluding policy loans:
       Purchases                                                     (279,229)           (135,864)
       Sales                                                          222,646             191,850
    Change in amounts due from broker                                 (57,427)            (12,107)
    Change in amounts due to broker                                  (980,157)            502,091
                                                                  ------------        ------------

       Net cash used in investing activities                       (1,157,671)             (4,740)
                                                                  ------------        ------------

Cash flows from financing activities:
    Activity related to universal life-type insurance
     and investment contracts:
       Considerations received                                      1,633,285             983,260
       Surrenders and death benefits                               (1,022,386)         (1,622,820)
       Interest credited to account balances                          553,920             568,501
    Universal life-type insurance policy loans:
       Issuance                                                       (39,107)            (51,221)
       Repayment                                                       48,882              46,447
     Cash dividends to parent                                         (70,000)                 --
                                                                  ------------        ------------

         Net cash provided by (used in) financing activities        1,104,594             (75,833)
                                                                  ------------        ------------

Net (decrease) increase in cash and cash equivalents                  (43,715)             35,783

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

Cash and cash equivalents at end of period                        $ 1,106,536         $   352,757
                                                                  ============        ============
</TABLE>
                             See accompanying notes.

                                      -8-
<PAGE>

                           IDS LIFE INSURANCE COMPANY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                  June 30, 2002
                                 (In 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 June 30, 2002,
         statements of income for the three and six months ended June 30, 2002
         and 2001 and statements of cash flows for the six months ended June 30,
         2002 and 2001.

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

2.       Comprehensive Income

         Total comprehensive income (loss) was $324,264 and $(172,222) for the
         three months and $319,129 and $113,700 for the six months ended June
         30, 2002 and 2001, respectively.

3.       Statements of cash flows

         Cash paid for interest on borrowings totaled $4,648 and $11,422 for the
         six months ended June 30, 2002, and 2001, respectively. Cash paid for
         income taxes totaled $106,687 for the six months ended June 30, 2002
         compared to cash received of $64,551 for the six months ended June 30,
         2001.

                                      -9-


<PAGE>


                           IDS LIFE INSURANCE COMPANY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (In 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 adopted 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 consensus primarily affects certain
         high-yield investments contained in structured securities. Adoption of
         the consensus required the Company to adjust the carrying amount of
         these investments downward by $21,410, net of tax, upon adoption.

5.       Commitments and contingencies

         Commitments to fund mortgage loan  investments in the ordinary  course
         of business at June 30, 2002 aggregated $40,550.

         The maximum amount of life insurance risk retained by the Company is
         $750 on any policy insuring a single life and $1,500 on any policy
         insuring a joint-life combination. The Company retains only 20% of the
         mortality risk on new variable universal life insurance policies and
         10% of the mortality risk on new term insurance policies. Risk not
         retained is reinsured with other life insurance companies, 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.



                                      -10-
<PAGE>

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

5.       Commitments and contingencies (continued)

         A number of lawsuits involving insurance sales practices, alleged agent
         misconduct, failure to properly supervise agents and other matters
         relating to life insurance policies and annuity contracts have been
         filed against life and health insurers in jurisdictions in which the
         Company and its affiliates do business. The Company and its affiliates,
         like other life and health insurers, are involved in such litigation.
         The Company was a named defendant in three class action lawsuits of
         this nature. 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. 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. 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. These three class action lawsuits included
         allegations of improper insurance and annuity sales practices including
         improper replacement of existing annuity contracts and insurance
         policies, improper use of annuities to fund tax deferred contributory
         retirement plans, alleged agent misconduct, failure to properly
         supervise agents and other matters relating to life insurance policies
         and annuity contracts.

         In January 2000, AEFC and its subsidiaries reached an agreement in
         principle to settle the three class action lawsuits described above. It
         is expected the settlement will provide $215 million of benefits to
         more than two million participants in exchange for a release by class
         members of all insurance and annuity 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.


                                      -11-
<PAGE>

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

5.       Commitments and contingencies (continued)

         In May 2001, the United States District Court for the District of
         Minnesota and the District Court, Fourth Judicial District for the
         State of Minnesota, Hennepin County entered orders approving the
         settlement as tentatively reached in January 2000. Appeals were filed
         in both federal and state court but subsequently dismissed by the
         parties filing the appeals. The orders approving the settlement were
         final as of September 24, 2001. Implementation of the settlement
         commenced October 15, 2001.

         Numerous individuals opted out of the settlement described above and
         therefore did not release their claims against AEFC and its
         subsidiaries. Some of these class members who opted out were
         represented by counsel and presented separate claims to the Company.
         Most of their claims have been settled.

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

                                      -12-
<PAGE>

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

Results of Operations

Six Months Ended June 30, 2002 Compared to Six Months Ended June 30, 2001:

Consolidated net income was $200 million for the six months ended June 30, 2002,
compared to a net loss of $300 million in 2001. 2001 results reflect
approximately $615 million of pretax losses from the recognition of impairment
losses and sale of certain high-yield securities and a $67 million pretax
increase in the amortization of deferred policy acquisition costs (DAC's). The
favorable relative impact in 2002 of these 2001 items was partially offset by
lower management fees reflecting continued weakness in equity markets in 2002.

Premiums and investment contract deposits increased to $3.5 billion compared to
$2.9 billion for the six months ended June 30, 2001. The increase was primarily
due to increases in sales of fixed annuities.

Management and other fees decreased to $220 million for the six months ended
June 30, 2002 compared with $246 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 increased to $782 million for the six months ended June
30, 2002 compared to $674 million a year ago. This increase was primarily due to
the credit-related yield adjustments on fixed maturity investments in 2001,
which was partially offset by lower portfolio rates in 2002.

Net realized loss on investments decreased to $45 million for the six months
ended June 30, 2001 compared to $615 million a year ago. The 2002 amount is
primarily comprised of losses on WorldCom debt holdings. The 2001 loss was
primarily due to the write-down and sale of certain high-yield investments.

Total benefits and expenses were $1.1 billion for the six months ended June 30,
2002, a decrease of 4 percent from a year ago. The largest component of
expenses, interest credited on universal life-type insurance and investment
contracts, decreased 3 percent to $554 million. This was primarily due to lower
interest credited rates. Amortization of deferred policy acquisition costs
decreased 27 percent for the six months ended June 30, 2002 compared to the same
period in 2001, due primarily to a $67 million increase in the first quarter of
2001 to the amortization of DAC's for variable annuity and insurance products as
a result of the decline in equity markets. Other insurance and operating
expenses decreased 6 percent, primarily reflecting the impact of re-engineering
initiatives.

                                      -13-
<PAGE>

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

IMPACT OF RECENT MARKET VOLATILITY ON RESULTS OF OPERATIONS

Various aspects of the Company's business are impacted by equity market levels
and other market-based events. Two areas in particular involve DAC and
structured investments. Each quarter management evaluates various factors, and
makes certain assumptions based on those factors, to determine the proper
amortization schedule for the Company's DAC, including mortality rates, product
persistency rates, maintenance expense levels, interest margins, and market
performance with respect to variable products. Changes in these factors can
affect management's assumptions in various ways. Depending on the direction and
magnitude of the changes they can increase or decrease DAC expense levels and
results of operations in any particular quarter. Similarly, the value of the
Company's structured investment portfolio is impacted by various market factors.
These investments include collateralized debt obligations and structured loan
trusts (backed by high-yield bonds and bank loans, respectively), which are held
by the Company through interests in special purpose entities. The carrying value
of these investments is based on cash flow projections, which are affected by
factors such as default rates, persistency of defaults, recovery rates and
interest rates, among others. The valuation of these investments assumes high
levels of defaults through 2002, relative to historical default rates.
Persistency or increases in these default rates could result in negative
adjustments to the market values of these investments in the future, which would
adversely impact results of operations. Conversely, a decline in the default
rates would benefit future 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 June 30, 2002, outstanding
borrowings under this agreement totaled $50 million uncommitted. The Company
also uses reverse repurchase agreements for short-term liquidity needs. There
were no outstanding reverse repurchase agreements at June 30, 2002.

At June 30, 2002, approximately 6 percent of the Company's invested assets were
below-investment-grade bonds, compared to 9 percent at June 30, 2001. These
investments may be subject to a higher degree of risk than higher-rated issues
because of the borrowers' generally greater sensitivity to adverse economic
conditions, such as recession or increasing interest rates, and in certain
instances the lack of an active secondary market. Expected returns on
below-investment-grade bonds reflect consideration of such factors.


                                      -14-

<PAGE>

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

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

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

Forward-Looking Statements

Certain statements in the management's discussion and analysis of consolidated
financial condition and results of operations section of this Form 10-Q contain
forward-looking statements which are subject to risks and uncertainties that
could cause results to differ materially from such statements. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date on which they are made. The Company undertakes no
obligation to update publicly or revise any forward-looking statements.
Important factors that could cause actual results to differ materially from the
Company's forward-looking statements include, among other things, fluctuations
in the equity and interest rate environment and changes in the ability of
issuers of investment securities held by the Company to meet their debt
obligations, which could result in further losses in the Company's investment
portfolio.

                                      -15-
<PAGE>

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

PART II - OTHER INFORMATION

Item 1.     LEGAL PROCEEDINGS

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

Item 2.     CHANGES IN SECURITIES AND USE OF PROCEEDS

            Not applicable.

Item 3.     DEFAULTS UPON SENIOR SECURITIES

            Not applicable.

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

            Not applicable.

Item 5.     OTHER INFORMATION

            Not applicable.

Item 6.     EXHIBITS AND REPORTS ON FORM 10-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.

                                      -16-
<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.

                                      -17-
<PAGE>

PART II - OTHER INFORMATION (continued)

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

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

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

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

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

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

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

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

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

                                      -18-
<PAGE>

PART II - OTHER INFORMATION (continued)

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

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

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

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

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

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

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

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

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


                                      -19-
<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 six months ended June 30, 2002.

Item 7.  Exhibits 99.1 and 99.2

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

                                      -20-

<PAGE>


SIGNATURES

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

REGISTRANT          IDS LIFE INSURANCE COMPANY

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



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

DATE                August 13, 2002



                                      -21-