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                            FORM 10-K
                                
               SECURITIES AND EXCHANGE COMMISSION
                                
                     WASHINGTON, D.C.  20549

(Mark One)

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

           For the fiscal year ended December 31, 1995
                                
                               OR

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

           For the transition period from           to
                                
                 Commission file number 33-28976
                                
                    IDS LIFE INSURANCE COMPANY             
     (Exact name of registrant as specified in its charter)
                                
              MINNESOTA                       41-0823832      
   (State or other jurisdiction of         (I.R.S. Employer
   incorporation or organization)          Identification No.)

   IDS TOWER 10, MINNEAPOLIS, MINNESOTA            55440-0534
 (Address of principal executive offices)          (Zip Code)

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

Securities registered pursuant to Section 12(b) of the Act:  None

Securities registered pursuant to Section 12(g) of the Act:  None

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

Indicate by check mark if disclosure of delinquent filers pursuant
to Item 405 of Regulation S-K is not contained herein, and will not
be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part
III of this Form 10-K or any amendment to this Form 10-K.  [Not
Applicable]

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

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                             PART I

ITEM 1.  BUSINESS

IDS Life Insurance Company (the Company) is a stock life insurance
company organized under the laws of the State of Minnesota.  The
Company is a wholly owned subsidiary of American Express Financial
Corporation, which is a wholly owned subsidiary of American Express
Company.  The Company serves residents of all states except New
York.  IDS Life Insurance Company of New York and American
Centurion Life Assurance Company are wholly owned subsidiaries of
the Company and serve New York State residents.  The Company also
wholly owns American Enterprise Life Insurance Company and American
Partners Life Insurance Company.

The Company's principal products are deferred annuities and
universal life insurance, which are issued primarily to
individuals.  It offers single premium and annual premium deferred
annuities on both a fixed and variable dollar basis.  Immediate
annuities are offered as well.  The Company's insurance products
include universal life (fixed and variable), whole life, single
premium life and term products (including waiver of premium and
accidental death benefits).  The Company also markets disability
income and long-term care insurance.

The Company's principal annuity product in terms of amount in force
is the fixed deferred annuity.  The annuity contract guarantees a
minimum interest rate during the accumulation period (the time
before annuity payments begin), although the Company normally pays
a higher rate reflective of current market rates.  The Company has
also adopted a practice whereby the higher current rate is
guaranteed for a specified period.  The Company also offers a
variable annuity product under the name Flexible Annuity.  This is
a fixed/variable annuity offering the purchaser a choice among
mutual funds with portfolios of equities, bonds, managed assets
and/or short-term securities, and the Company's general account, as
the underlying investment vehicle.  With respect to funds applied
to the variable portion of the annuity, the purchaser, rather than
the Company, assumes the investment risks and receives the rewards
inherent in the ownership of the underlying investment.  The
Flexible Annuity provides for a surrender charge during the first
six years after a purchase payment is made.  At December 31, 1995,
the Company had $32.9 billion of deferred annuities in force, an
increase of 17 percent from the prior year end.

The Company's principal insurance product is the flexible-premium,
adjustable-benefit universal life insurance policy.  In this type
of insurance policy, each premium payment accumulates interest in a
cash value account.  The policyholder has access to the cash
surrender value in whole or in part after the first year.  The size
of the cash value of the fund can also be controlled by the
policyholder by increasing or decreasing premiums, subject only to
maintaining a required minimum to keep the policy in force. 
Monthly deductions from the cash value of the policy are made for
the cost of insurance, expense charges and any policy riders.  At
December 31, 1995, the Company had $43.1 billion of universal
life-type insurance in force, up 14 percent from December 31, 1994.
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Assets held in segregated accounts which fund the variable annuity
and variable life insurance products totaled $15.0 billion at
December 31, 1995, a 38 percent increase from December 31, 1994.

IDS Life Insurance Company, American Enterprise Life Insurance
Company and American Partners Life Insurance Company are subject to
comprehensive regulation by the Minnesota Department of Commerce
(Insurance Division), the Indiana Department of Insurance and the
Arizona Department of Insurance, respectively.  IDS Life Insurance
Company of New York and American Centurion Life Assurance Company
are both subject to comprehensive regulation by the New York
Department of Insurance.  The laws of the other states in which the
Company does business regulate such matters as the licensing of
sales personnel and, in some cases, the contents of insurance
policies.  The purpose of such regulation and supervision is
primarily to protect the interests of policyholders.  In the United
States, the McCarran-Ferguson Act provides that the primary
regulation of the insurance industry is left to the individual
states.  Typically, states regulate such matters as company
licensing, agent licensing, cancellation or nonrenewal of policies,
minimum health insurance policy benefits, life insurance cost
disclosure, solicitation and replacement practices, unfair trade
and claims practices, rates, forms, advertising, investment type
and quality, minimum capital and surplus levels and changes in
control.  Virtually all states mandate participation in insurance
guaranty associations, which assess insurance companies in order to
fund claims of policyholders of insolvent insurance companies.  In
addition to state laws, the Company is affected by a variety of
federal laws, and there is periodic federal interest in various
aspects of the insurance industry including taxation, solvency and
accounting procedures, as well as the treatment of persons
differently because of sex, with respect to terms, conditions,
rates or benefits of an insurance contract.  If any of these issues
were resolved unsatisfactorily, there could be an adverse effect
upon the Company.

As a distributor of variable contracts, the Company is registered
as a broker-dealer.  As the investment manager for various
investment companies, the Company is registered as an investment
advisor under applicable federal laws and is a member of the
National Association of Securities Dealers, Inc.

The insurance and annuity business is highly competitive and the
Company's competitors consist of insurance companies and other
financial institutions.  Competitive factors applicable to the
business of the Company include the interest rates credited to its
products, the financial strength of the organization and the
services provided to policyholders.

For additional information, see Note 10, Segment information, in
the "Notes to Consolidated Financial Statements".

ITEM 2.  PROPERTIES

The Company occupies office space in Minneapolis, Minnesota, which
is leased by its parent, American Express Financial Corporation. 
The Company reimburses American Express Financial Corporation for 
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rent based on direct and indirect allocation methods.  IDS Life
Insurance Company of New York and American Centurion Life Assurance
Company rent office space in Albany, New York.  Facilities occupied
by the Company and its subsidiaries are believed to be adequate for
the purposes for which they are used and are well maintained.

ITEM 3.  LEGAL PROCEEDINGS

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

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

Not applicable.

                             PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
         STOCKHOLDER MATTERS

Not applicable.

ITEM 6.  SELECTED FINANCIAL DATA

Item omitted pursuant to General Instructions J(2) (a) of Form
10-K.
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ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operations
1995 Compared to 1994:

Consolidated net income increased 8.6 percent to $365 million in
1995, compared to $336 million in 1994.  Earnings growth resulted
primarily from increases in management fees and policyholder and
contractholder charges partially offset by a slight decrease in
investment margins.  These increases reflect higher average
insurance and annuities in force during 1995. Investment margins
were below prior year levels primarily due to higher interest
credited rates during the first two quarters of 1995.

Consolidated income before income taxes totaled $561 million in
1995, compared with $513 million in 1994.  In 1995, $125 million
was from the life, disability income, health and long-term care
insurance segment, compared with $123 million in 1994.  In 1995,
$440 million was from the annuity segment, compared with $394
million in 1994.  There was a $4.9 million net realized loss on
investments in 1995, compared with a net realized loss on
investments of $4.3 million in 1994.

Total premiums received decreased to $5.0 billion in 1995, compared
with $5.7 billion in 1994.  This decrease is primarily due to a
decrease in sales of variable annuities, reflecting very strong
sales of variable products during 1994.

Total revenues increased to $2.5 billion in 1995, compared with
$2.3 billion in 1994.  The increase is primarily due to increases
in net investment income, policyholder and contractholder charges,
and management fees.  Net investment income, the largest component
of revenues, increased from the prior year, reflecting an increase
in investments owned.

Policyholder and contractholder charges, which consist primarily of
cost of insurance charges on universal life-type policies,
increased 16 percent to $256 million in 1995, compared with $220
million in 1994.  This increase reflects higher total life
insurance in force which grew 13 percent to $59.4 billion at
December 31, 1995.

Management and other fees increased 32 percent to $216 million in
1995, compared with $164 million in 1994.  This is primarily due to
an increase in separate account assets, which grew 38 percent to
$15 billion at December 31, 1995, due to market appreciation and
sales.  The Company provides investment management services for the
mutual funds used as investment options for variable annuities and
variable life insurance.  The Company also receives a mortality and
expense risk fee from the separate accounts.

Total benefits and expenses increased to $2.0 billion in 1995.  The
largest component of expenses, interest credited to policyholder
accounts for universal life-type insurance and investment
contracts, increased to $1.3 billion.  This was due to higher
aggregate amounts in force and an increase in average interest
credited rates.
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1994 Compared to 1993:

Consolidated net income increased 24 percent to $336 million in
1994, compared to $270 million in 1993.  Earnings growth resulted
primarily from increases in spread income, policyholder and
contractholder charges, and management fees.  These increases
reflect higher average insurance and annuities in force during
1994.  For the full year, investment margins were comparable to
1993 levels, although investment margins for the fourth quarter of
1994 were below prior year levels.

Consolidated income before income taxes totaled $513 million in
1994, compared with $413 million in 1993.  In 1994, $123 million
was from the life, disability income, health and long-term care
insurance segment, compared with $104 million in 1993.  In 1994,
$394 million was from the annuity segment, compared with $315
million in 1993.  There was a $4.3 million net realized loss on
investments in 1994, compared with a net realized loss on
investments of $6.7 million in 1993.

Total premiums received increased to $5.7 billion in 1994, compared
with $5.3 billion in 1993.  This increase is primarily due to
continued strong sales of variable annuities.  In addition, the
Company reported small increases in its fixed single premium
deferred annuity line.  Universal life-type insurance and variable
universal life insurance premiums received also increased from the
prior year.

Total revenues increased to $2.3 billion in 1994, compared with
$2.2 billion in 1993.  The increase is primarily due to increases
in policyholder and contractholder charges, and management fees.
Net investment income, the largest component of revenues, was
basically unchanged from the prior year, reflecting a slight
increase in investments owned offset by a decrease in the rate
earned on those investments.

Policyholder and contractholder charges, which consist primarily of
cost of insurance charges on universal life-type policies,
increased 19 percent to $220 million in 1994, compared with $184
million in 1993.  This increase reflects higher total life
insurance in force which grew 14 percent to $52.7 billion at
December 31, 1994.

Management and other fees increased 37 percent to $164 million in
1994, compared with $120 million in 1993.  This is primarily due to
an increase in separate account assets, which grew 21 percent to
$11 billion at December 31, 1994, resulting from strong sales of
variable products.  The Company provides investment management
services for the mutual funds used as investment options for
variable annuities and variable life insurance.  The Company also
receives a mortality and expense risk fee from the separate
accounts.

Total benefits and expenses decreased slightly to $1.8 billion in
1994.  The largest component of expenses, interest credited to
policyholder accounts for universal life-type insurance and
investment contracts, decreased to $1.2 billion.  This is primarily
due to a decrease in interest credited rates, partially offset by
higher aggregate amounts in force.<PAGE>
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Amortization of deferred policy acquisition costs increased to $280
million in 1994, compared with $212 million in 1993.  This increase
is a result of a higher level of amortizable deferred costs and a
high level of surrenders as a result of an exchange plan announced
during the first quarter of 1994 and completed prior to the end of
1994.

Other insurance and operating expenses, which include non-
capitalized commissions and indirect selling expenses, direct and
indirect operating expenses, premium taxes and guaranty association
expenses, decreased to $210 million in 1994, compared with $242
million in 1993.  This decrease primarily reflects a decrease in
amounts accrued for future guaranty association assessments.

Risk Management

The Company primarily invests in fixed income securities over a
broad range of maturities for the purpose of providing fixed
annuity clients with a competitive rate of return on their
investments while minimizing risk, and to provide a dependable
and targeted spread between the interest rate earned on investments
and the interest rate credited to clients' accounts.  The Company
does not invest in securities to generate trading profits.

The Company has an investment committee that holds regularly
scheduled meetings and, when necessary, special meetings.  At these
meetings, the committee reviews models projecting different
interest rate scenarios and their impact on profitability.  The
objective of the committee is to structure the investment security
portfolio based upon the type and behavior of products in the
liability portfolio so as to achieve targeted levels of
profitability.

Rates credited to clients' accounts are generally reset at shorter
intervals than the maturity of underlying investments.  Therefore,
margins may be negatively impacted by increases in the general
level of interest rates.  Part of the committee's strategy includes
the purchase of some types of derivatives, such as interest rate
caps, for hedging purposes.  These derivatives protect margins by
increasing investment returns if there is a sudden and severe rise
in interest rates, thereby mitigating the impact of an increase in
rates credited to clients' accounts.

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, dividends and investment
purchases.
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The Company has available lines of credit with three banks
aggregating $100 million, which are used strictly as short-term
sources of funds.  Borrowings outstanding under the agreements were
$nil at December 31, 1995.  At December 31, 1995, outstanding
reverse repurchase agreements totalled $103 million.

At December 31, 1995, investments in fixed maturities comprised 86
percent of the Company's total invested assets.  Of the fixed
maturity portfolio, approximately 43 percent is invested in GNMA,
FNMA and FHLMC mortgage-backed securities which are considered
AAA/Aaa quality.

At December 31, 1995, approximately 9.2 percent of the Company's
investments in fixed maturities were below investment grade bonds. 
These investments may be subject to a higher degree of risk than
the high-rated issues because of the borrower's generally greater
sensitivity to adverse economic conditions, such as recession or
increasing interest rates, and in certain instances, the lack of an
active secondary market.  Expected returns on below investment
grade bonds reflect consideration of such factors.  The Company has
identified those fixed maturities for which a decline in fair value
is determined to be other than temporary, and has written them down
to fair value with a charge to earnings.

At December 31, 1995, net unrealized appreciation on fixed
maturities held to maturity included $667 million of gross
unrealized appreciation and $47 million of gross unrealized
depreciation.  Net unrealized appreciation on fixed maturities
available for sale included $398 million of gross unrealized
appreciation and $28 million of gross unrealized depreciation.

At December 31, 1995, the Company had an allowance for losses for
mortgage loans totaling $37 million and for real estate investments
totaling $4.7 million.

The economy and other factors have caused an increase in the number
of insurance companies that are under regulatory supervision.  This
circumstance has resulted in an increase in assessments by state
guaranty associations to cover losses to policyholders of insolvent
or rehabilitated companies.  Some assessments can be partially
recovered through a reduction in future premium taxes in certain
states.  The Company established an asset for guaranty association
assessments paid to those states allowing a reduction in future
premium taxes over a reasonable period of time.  The asset will be
amortized as future premium taxes are reduced.  The Company has
also estimated the potential effect of future assessments on the
Company's financial position and results of operations and has
established a reserve for such potential assessments.

In the first quarter of 1996, the Company paid a $40 million
dividend to its parent.  In 1995, dividends paid to its parent were
$180 million.

The National Association of Insurance Commissioners has established
risk-based capital standards to determine the capital requirements
of a life insurance company based upon the risks inherent in its
operations.  These standards require the computation of a
risk-based capital amount which is then compared to a company's 
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PAGE 9
actual total adjusted capital.  The computation involves applying
factors to various statutory financial data to address four primary
risks: asset default, adverse insurance experience, interest rate
risk and external events.  These standards provide for regulatory
attention when the percentage of total adjusted capital to
authorized control level risk-based capital is below certain
levels.  As of December 31, 1995, the Company's total adjusted
capital was well in excess of the levels requiring regulatory
attention.

Segment Information

The Company's operations consist of two business segments:
Individual and group life, disability income, long-term care and
health insurance; and fixed and variable annuity products designed
for individuals, pension plans, small businesses and
employer-sponsored groups.  The Company is not dependent upon any
single customer and no single customer accounted for more than 10
percent of revenue in 1995, 1994 or 1993.  Additionally, no single
distributor accounted for more than 10 percent of premiums received
in 1995, 1994 or 1993.(See Note 10, Segment information, in the
"Notes to Consolidated Financial Statements".)

Reinsurance

Reinsurance arrangements are used to reduce exposure to large
losses.  The maximum amount of risk retained by the Company on any
one life is $750,000 of life and waiver of premium benefits plus
$50,000 of accidental death benefits.  The excesses are reinsured
with other life insurance companies.  At December 31, 1995,
traditional life and universal life-type insurance in force
aggregated $59.7 billion, of which $3.8 billion was reinsured.

Investments

Of the Company's consolidated total investments of $25.3 billion at
December 31, 1995, 39 percent was invested  in mortgage-backed
securities, 46 percent in corporate and other bonds, 12 percent in
primary mortgage loans on real estate, 1.7 percent in policy loans
and the remaining 1.3 percent in other investments.
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ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The response to this item is submitted in a separate section of
this report.

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
         ACCOUNTING AND FINANCIAL DISCLOSURE

None.
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                            PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

Item omitted pursuant to General Instructions J(2) (c) of Form
10-K.

ITEM 11. EXECUTIVE COMPENSATION

Item omitted pursuant to General Instructions J(2) (c) of Form
10-K.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
         MANAGEMENT

Item omitted pursuant to General Instructions J(2) (c) of Form
10-K.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Item omitted pursuant to General Instructions J(2) (c) of Form
10-K.
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                             PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
         FORM 8-K

   (a)   (1) Financial Statements

             See Index to Financial Statements and Financial
             Statement Schedules.

         (2) Financial Statement Schedules

             See Index to Financial Statements and Financial
             Statement Schedules.

         (3) Exhibits

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

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

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

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

            4.2   Copy of Group Annuity Certificate, Form 30360C,
                  filed electronically as Exhibit 4.2 to
                  Post-Effective Amendmnet 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.

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PAGE 13
            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.

            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.

            23.   Consent of Independent Auditors is filed
                  electronically herewith.

            27.   Financial data shedule is filed electronically
                  herewith.

   (b) Reports on Form 8-K filed in the fourth quarter of 1995

       No reports on Form 8-K were required to be filed by the
       Company for the quarter ended December 31, 1995.
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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

                                IDS LIFE INSURANCE COMPANY
                                        Registrant


       3/27/96            By /s/ James A. Mitchell                 
        Date                     James A. Mitchell, Chairman of the
                                 Board and Chief Executive Officer

       3/27/96            By /s/ Melinda S. Urion                  
        Date                     Melinda S. Urion, Executive Vice
                                 President and Controller

Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been duly signed below by the following
persons on behalf of the registrant and in the capacities and on
the dates indicated.

       3/27/96            By /s/ David R. Hubers                   
        Date                     David R. Hubers, Director

       3/27/96            By /s/ Richard W. Kling                  
        Date                     Richard W. Kling, President

       3/27/96            By /s/ Paul F. Kolkman                   
        Date                     Paul F. Kolkman, Executive Vice
                                 President

       3/27/96            By /s/ James A. Mitchell                 
        Date                     James A. Mitchell, Chairman of the
                                 Board and Chief Executive Officer

       3/27/96            By /s/ Stuart A. Sedlacek                
        Date                     Stuart A. Sedlacek, Executive Vice
                                 President, Assured Assets

       3/27/96            By /s/ Melinda S. Urion                  
        Date                     Melinda S. Urion, Executive Vice
                                 President and Controller
<PAGE>
PAGE 15

                    ANNUAL REPORT ON FORM 10-K
                                
            ITEM 8 and ITEM 14(a) (1) and (2) and (d)
                                
  LIST OF FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES
                                
                  FINANCIAL STATEMENT SCHEDULES
                                
                  YEAR ENDED DECEMBER 31, 1995
                                
                   IDS LIFE INSURANCE COMPANY
                                
                     MINNEAPOLIS, MINNESOTA
                                
<PAGE>
PAGE 16
                   IDS LIFE INSURANCE COMPANY
                                
    INDEX TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES



The following consolidated financial statements of IDS Life
Insurance Company are included in Item 8:

     Report of Independent Auditors

     Responsibility for Preparation of Financial Statements

     Consolidated Balance Sheets at December 31, 1995 and 1994

     Consolidated Statements of Income for the years ended December
         31, 1995, 1994 and 1993

     Consolidated Statements of Stockholder's Equity for the years
         ended December 31, 1995, 1994 and 1993

     Consolidated Statements of Cash Flows for the years ended
         December 31, 1995, 1994 and 1993

     Notes to Consolidated Financial Statements

The following consolidated financial statement schedules of IDS
Life Insurance Company are included in Item 14(d):

       I.  Summary of Investments - Other than Investments in
           Related Parties

     III.  Supplementary Insurance Information

      IV.  Reinsurance

       V.  Valuation and Qualifying Accounts

All other schedules to the consolidated financial statements
required by Article 7 of Regulation S-X are not required under the
related instructions or are inapplicable and therefore have been
omitted.
<PAGE>
PAGE 17

Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company



We have audited the accompanying consolidated balance sheets of IDS
Life Insurance Company (a wholly owned subsidiary of American
Express Financial Corporation) as of December 31, 1995 and 1994 and
the related consolidated statements of income, stockholder's equity
and cash flows for each of the three years in the period ended
December 31, 1995.  Our audits also included the financial
statement schedules listed in the index at Item 14(a).  These
financial statements and schedules are the responsibility of the
Company's management.  Our responsibility is to express an opinion
on these financial statements and schedules based on our audits.

We conducted our audits in accordance with generally accepted
auditing standards.  Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.  An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements.  An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation.  We believe that our audits
provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to
above present fairly, in all material respects, the consolidated
financial position of IDS Life Insurance Company at December 31,
1995 and 1994, and the consolidated results of its operations and
its cash flows for each of the three years in the period ended
December 31, 1995, in conformity with generally accepted accounting
principles.  Also, in our opinion, the related financial statement
schedules, when considered in relation to the basic financial
statements taken as a whole, present fairly in all material
respects the information set forth therein.

As discussed in Note 1 to the consolidated financial statements,
the Company changed its method of accounting for certain
investments in debt and equity securities in 1994.



Ernst & Young LLP

Minneapolis, Minnesota
February 2, 1996
<PAGE>
PAGE 18

IDS Life Insurance Company

Responsibility for Preparation of Financial Statements

The management of IDS Life Insurance Company is responsible for
the preparation of the financial statements and related notes
included in this Form 10-K.  The statements have been prepared in
conformity with generally accepted accounting principles
appropriate in the circumstances, and include amounts based on
the best judgment of management.  Financial information included
elsewhere in this Form 10-K is consistent with these financial
statements.

In recognition of its responsibility for the integrity and
objectivity of data in the financial statements, management
maintains a system of internal accounting controls.  This system
includes an organizational structure with clearly defined lines
of responsibility and delegation of authority.  To ensure the
effective administration of internal control, employees are
carefully selected and trained, written policies and procedures
are developed and disseminated, and appropriate communication
channels are provided to foster an environment conducive to the
effective functioning of controls.

The system is supported by an internal auditing function that
reports its findings to management throughout the year.  IDS Life
Insurance Company's independent auditors are engaged to express
an opinion on the year-end financial statements.  They
objectively and independently review the performance of
management in carrying out its responsibility for reporting
operating results and financial condition.  With the coordinated
support of the internal auditors, they review and test the system
of internal accounting controls and the data contained in the
financial statements.
<PAGE>
PAGE 19
<TABLE>
<CAPTION>
                   IDS LIFE INSURANCE COMPANY
                   CONSOLIDATED BALANCE SHEETS
                          December 31,

ASSETS                                                           1995             1994  
                                                                      (thousands)
<S>                                                           <C>              <C>
Investments:
  Fixed maturities:
      Held to maturity, at amortized cost (Fair value:
          1995, $11,878,377; 1994, $10,694,800)               $11,257,591      $11,269,861
      Available for sale, at fair value (Amortized cost:
           1995, $10,146,136; 1994, $8,459,128)
                                                               10,516,212        8,017,555
                                                               21,773,803       19,287,416

  Mortgage loans on real estate
    (Fair value: 1995, $3,184,666; 1994, $2,342,520)            2,945,495        2,400,514
  Policy loans                                                    424,019          381,912
  Other investments                                               146,894           51,795

          Total investments                                    25,290,211       22,121,637

Cash and cash equivalents                                          72,147          267,774

Receivables:
  Reinsurance                                                     114,387           80,304
  Amounts due from brokers                                              -            7,933
  Other accounts receivable                                        33,667           49,745
  Premiums due                                                      5,441            1,594

          Total receivables                                       153,495          139,576

Accrued investment income                                         348,008          317,510

Deferred policy acquisition costs                               2,025,725        1,865,324

Deferred income taxes                                                   -          124,061

Other assets                                                       36,410           30,426

Separate account assets                                        14,974,082       10,881,235

          Total assets                                        $42,900,078      $35,747,543
                                                               ==========       ==========
<PAGE>
PAGE 20
                   IDS LIFE INSURANCE COMPANY
             CONSOLIDATED BALANCE SHEETS (continued)
                          December 31,
                                


LIABILITIES AND STOCKHOLDER'S EQUITY                             1995             1994  
                                                                      (thousands)

Liabilities:
  Future policy benefits:
    Fixed annuities                                           $21,404,836      $19,361,979
    Universal life-type insurance                               3,076,847        2,896,100
    Traditional life insurance                                    209,249          206,754
    Disability income, health and
      long-term care insurance                                    327,157          244,077
  Policy claims and other
    policyholders' funds                                           56,323           50,068
  Deferred income taxes                                           112,904                -
  Amounts due to brokers                                          121,618          226,737
  Other liabilities                                               285,354          291,902
  Separate account liabilities                                 14,974,082       10,881,235

          Total liabilities                                    40,568,370       34,158,852

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                                      278,814          222,000
  Net unrealized gain (loss) on investments                       230,129         (275,708)
  Retained earnings                                             1,819,765        1,639,399

          Total stockholder's equity                            2,331,708        1,588,691

Total liabilities and stockholder's equity                    $42,900,078      $35,747,543
                                                               ==========       ==========

Commitments and contingencies (Note 6)

                        See accompanying notes.
</TABLE>
<PAGE>
PAGE 21
<TABLE>
<CAPTION>
                   IDS LIFE INSURANCE COMPANY
                CONSOLIDATED STATEMENTS OF INCOME
                    Years ended December 31,

                                                   1995         1994          1993  
                                                             (thousands)
<S>                                           <C>           <C>           <C>
Revenues:
  Premiums:
    Traditional life insurance                $   50,193    $   48,184    $   48,137
    Disability income and
      long-term care insurance                   111,337        96,456        79,108

           Total premiums                        161,530       144,640       127,245

  Policyholder and contractholder
    charges                                      256,454       219,936       184,205
  Management and other fees                      215,581       164,169       120,139
  Net investment income                        1,907,309     1,781,873     1,783,219
  Net realized loss on investments                (4,898)       (4,282)       (6,737)

           Total revenues                      2,535,976     2,306,336     2,208,071

Benefits and expenses:
  Death and other benefits:
    Traditional life insurance                    29,528        28,263        32,136
    Universal life-type insurance
      and investment contracts                    71,691        52,027        49,692
    Disability income, health and
      long-term care insurance                    16,259        13,393        13,148
  Increase (decrease) in liabilities for
    future policy benefits:
      Traditional life insurance                  (1,315)       (3,229)       (4,513)
      Disability income, health and
        long-term care insurance                  51,279        37,912        32,528
  Interest credited on universal life-type
    insurance and investment contracts         1,315,989     1,174,985     1,218,647
  Amortization of deferred policy
    acquisition costs                            280,121       280,372       211,733
  Other insurance and operating expenses         211,642       210,101       241,974

           Total benefits and expenses         1,975,194     1,793,824     1,795,345

Income before income taxes                       560,782       512,512       412,726

Income taxes                                     195,842       176,343       142,647

Net income                                    $  364,940    $  336,169    $  270,079
                                                 =======       =======       =======

                        See accompanying notes.
</TABLE>
<PAGE>
PAGE 22
<TABLE>
<CAPTION>
                   IDS LIFE INSURANCE COMPANY
         CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY
               Three years ended December 31, 1995
                           (thousands)
                                
                                                Additional   Net Unrealized
                                     Capital      Paid-In    Gain (Loss) on     Retained
                                      Stock       Capital      Investments      Earnings        Total
<S>                                  <C>        <C>            <C>             <C>           <C>
Balance, December 31, 1992           $3,000     $ 22,000       $     214       $1,223,151    $1,248,365
  Net income                                                                      270,079       270,079
  Change in net unrealized
     gain (loss) on  investments          -            -            (100)               -          (100)
  Capital contribution from parent        -      200,000               -                -       200,000
  Cash dividends                          -            -               -          (25,000)      (25,000)

Balance, December 31, 1993            3,000      222,000             114        1,468,230     1,693,344
  Net income                              -            -               -          336,169       336,169
  Change in net unrealized
     gain (loss) on investments           -            -        (275,822)               -      (275,822)
  Cash dividends                          -            -               -         (165,000)     (165,000)

Balance, December 31, 1994            3,000      222,000        (275,708)       1,639,399     1,588,691
  Net income                              -            -               -          364,940       364,940
  Change in net unrealized
     gain (loss) on investments           -            -         505,837                -       505,837
  Capital contribution from parent        -       56,814               -                -        56,814
  Loss on reinsurance transaction
     with affiliate                       -            -               -           (4,574)       (4,574)
  Cash dividends                          -            -               -         (180,000)     (180,000)

Balance, December 31, 1995           $3,000     $278,814       $ 230,129       $1,819,765    $2,331,708
                                      =====      =======         =======        =========     =========

                     See accompanying notes.
</TABLE>
<PAGE>
PAGE 23
<TABLE>
<CAPTION>
                   IDS LIFE INSURANCE COMPANY
              CONSOLIDATED STATEMENTS OF CASH FLOWS
                    Years ended December 31,

                                                          1995          1994         1993  
                                                                     (thousands)
<S>                                                  <C>            <C>          <C>
Cash flows from operating activities:
  Net income                                         $   364,940    $  336,169   $  270,079
  Adjustments to reconcile net income to
    net cash provided by operating activities:
      Policy loans, excluding universal
        life-type insurance:
          Issuance                                       (46,011)      (37,110)     (35,886)
          Repayment                                       36,416        33,384       29,557
      Change in reinsurance receivable                   (34,083)      (25,006)     (55,298)
      Change in other accounts receivable                 16,078       (28,286)      (1,364)
      Change in accrued investment income                (30,498)      (10,333)     (22,057)
      Change in deferred policy acquisition
        costs, net                                      (196,963)     (192,768)    (211,509)
      Change in liabilities for future policy
        benefits for traditional life,
        disability income, health and
        long-term care insurance                          85,575        55,354       79,695
      Change in policy claims and other
        policyholders' funds                               6,255         5,552       (5,383)
      Change in deferred income taxes                    (33,810)      (19,176)     (44,237)
      Change in other liabilities                         (6,548)         (122)      56,515
      Amortization of premium
        (accretion of discount), net                     (22,528)       30,921      (27,438)
      Net realized loss on investments                     4,898         4,282        6,737
      Activity related to universal
        life-type insurance:
          Premiums                                       465,631       409,035      397,883
          Surrenders and death benefits                 (306,600)     (290,427)    (255,133)
          Interest credited to account
            balances                                     162,222       150,955      156,885
      Policyholder and contractholder
        charges, non-cash                               (140,506)     (126,918)    (115,140)
      Other, net                                               2        (8,974)      (1,907)

          Net cash provided by operating
            activities                               $   324,470    $  286,532   $  221,999
<PAGE>
PAGE 24
                   IDS LIFE INSURANCE COMPANY
        CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
                    Years ended December 31,


                                                          1995          1994         1993  
                                                                    (thousands)
Cash flows from investing activities:
    Fixed maturities held to maturity:
        Purchases                                    $(1,007,208)   $ (879,740)  $        -
        Maturities, sinking fund payments and calls      538,219     1,651,762            -
        Sales                                            332,154        58,001            -
    Fixed maturities available for sale:
        Purchases                                     (2,452,181)   (2,763,278)           -
        Maturities, sinking fund payments and calls      861,545     1,234,401            -
        Sales                                            136,825       374,564            -
    Fixed maturities:
        Purchases                                              -             -   (6,548,852)
        Maturities, sinking fund payments and calls            -             -    3,934,055
        Sales                                                  -             -      487,983
    Other investments, excluding policy loans:
        Purchases                                       (823,131)     (634,807)    (553,694)
        Sales                                            160,521       243,862      123,352
  Change in amounts due from brokers                       7,933        (2,214)      14,483
  Change in amounts due to brokers                      (105,119)     (124,749)      92,832

          Net cash used in investing activities       (2,350,442)     (842,198)  (2,449,841)

Cash flows from financing activities:
  Activity related to investment contracts:
      Considerations received                          3,723,894     3,157,778    2,843,668
      Surrenders and death benefits                   (2,834,804)   (3,311,965)  (1,765,869)
      Interest credited to account balances            1,153,767     1,024,031    1,071,917
  Universal life-type insurance policy loans:
    Issuance                                             (84,700)      (78,239)     (70,304)
    Repayment                                             52,188        50,554       46,148
  Capital contribution from parent                             -             -      200,000
  Dividend paid                                         (180,000)     (165,000)     (25,000)

          Net cash provided by financing activities    1,830,345       677,159    2,300,560

Net (decrease) increase in cash and
  cash equivalents                                      (195,627)      121,493       72,718

Cash and cash equivalents at
  beginning of year                                      267,774       146,281       73,563

Cash and cash equivalents at
  end of year                                        $    72,147    $  267,774   $  146,281
                                                          ======       =======      =======

                            See accompanying notes.
</TABLE>
<PAGE>
PAGE 25
                   IDS LIFE INSURANCE COMPANY
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                          ($ thousands)

1.   Summary of significant accounting policies

     Nature of business

     IDS Life Insurance Company (the Company) is a stock life
     insurance company organized under the laws of the State of
     Minnesota.  The Company is a wholly owned subsidiary of
     American Express Financial Corporation, which is a wholly
     owned subsidiary of American Express Company.  The Company
     serves residents of all states except New York.  IDS Life
     Insurance Company of New York is a wholly owned subsidiary
     of the Company and serves New York State residents.  The
     Company also wholly owns American Enterprise Life Insurance
     Company, American Centurion Life Assurance Company (ACLAC),
     and American Partners Life Insurance Company.
     
     The Company's principal products are deferred annuities and
     universal life insurance, which are issued primarily to
     individuals.  It offers single premium and annual premium
     deferred annuities on both a fixed and variable dollar
     basis.  Immediate annuities are offered as well.  The
     Company's insurance products include universal life (fixed
     and variable), whole life, single premium life and term
     products (including waiver of premium and accidental death
     benefits).  The Company also markets disability income and
     long-term care insurance.
     
     The Company's principal annuity product in terms of amount
     in force is the fixed deferred annuity.  The annuity
     contract guarantees a minimum interest rate during the
     accumulation period (the time before annuity payments
     begin), although the Company normally pays a higher rate
     reflective of current market rates.  The fixed annuity
     provides for a surrender charge during the first seven to
     ten years after a purchase payment is made.  The Company has
     also adopted a practice whereby the higher current rate is
     guaranteed for a specified period.  The Company also offers
     a variable annuity product under the name Flexible Annuity.
     This is a fixed/variable annuity offering the purchasers a
     choice among mutual funds with portfolios of equities,
     bonds, managed assets and/or short-term securities, and the
     Company's general account, as the underlying investment
     vehicles.  With respect to funds applied to the variable
     portion of the annuity, the purchaser, rather than the
     Company, assumes the investment risks and receives the
     rewards inherent in the ownership of the underlying
     investment.  The Flexible Annuity provides for a surrender
     charge during the first six years after a purchase payment
     is made.
<PAGE>
PAGE 26
1.   Summary of significant accounting policies (continued)

     The Company's principal insurance product is the flexible-
     premium, adjustable-benefit universal life insurance policy.
     In this type of insurance policy, each premium payment
     accumulates interest in a cash value account.  The
     policyholder has access to the cash surrender value in whole
     or in part after the first year.  The size of the cash value
     of the fund can also be controlled by the policyholder by
     increasing or decreasing premiums, subject only to
     maintaining a required minimum to keep the policy in force.
     Monthly deductions from the cash value of the policy are
     made for the cost of insurance, expense charges and any
     policy riders.

     Basis of presentation

     The accompanying consolidated financial statements include
     the accounts of the Company and its wholly owned
     subsidiaries, IDS Life Insurance Company of New York,
     American Enterprise Life Insurance Company, American
     Centurion Life Assurance Company and American Partners Life
     Insurance Company.  All material intercompany accounts and
     transactions have been eliminated in consolidation.

     The accompanying consolidated financial statements have been
     prepared in conformity with generally accepted accounting
     principles which vary in certain respects from reporting
     practices prescribed or permitted by state insurance
     regulatory authorities.
     
     The preparation of financial statements in conformity with
     generally accepted accounting principles requires management
     to make estimates and assumptions that affect the reported
     amounts of assets and liabilities and disclosure of
     contingent assets and liabilities at the date of the
     financial statements and the reported amounts of revenues
     and expenses during the reporting period.  Actual results
     could differ from those estimates.
     
     Investments

     Fixed maturities that the Company has both the positive
     intent and the ability to hold to maturity are classified as
     held to maturity and carried at amortized cost.  All other
     fixed maturities and all marketable equity securities are
     classified as available for sale and carried at fair value.
     Unrealized gains and losses on securities classified as
     available for sale are carried as a separate component of
     stockholder's equity.
     
     Management determines the appropriate classification of
     fixed maturities at the time of purchase and reevaluates the
     classification at each balance sheet date.
     
<PAGE>
PAGE 27
1.   Summary of significant accounting policies (continued)

     Mortgage loans on real estate are carried principally at the
     unpaid principal balances of the related loans.  Policy
     loans are carried at the aggregate of the unpaid loan
     balances which do not exceed the cash surrender values of
     the related policies.  Other investments include interest
     rate caps, equity securities and real estate investments.
     When evidence indicates a decline, which is other than
     temporary, in the underlying value or earning power of
     individual investments, such investments are written down to
     the fair value by a charge to income.  Equity securities are
     carried at market value and the related net unrealized
     appreciation or depreciation is reported as a credit or
     charge to stockholder's equity.

     Realized investment gain or loss is determined on an
     identified cost basis.

     Prepayments are anticipated on certain investments in
     mortgage-backed securities in determining the constant
     effective yield used to recognize interest income.
     Prepayment estimates are based on information received from
     brokers who deal in mortgage-backed securities.

     Statement of cash flows
     
     The Company considers investments with a maturity at the
     date of their acquisition of three months or less to be cash
     equivalents.  These securities are carried principally at
     amortized cost which approximates fair value.
     
     Supplementary information to the consolidated statement of
     cash flows for the years ended December 31 is summarized as
     follows:

                                        1995       1994      1993 

     Cash paid during the year for:
       Income taxes                   $191,011  $226,365   $188,204
       Interest on borrowings            5,524     1,553      2,661

     Recognition of profits on fixed annuity contracts and
     insurance policies

     The Company issues single premium deferred annuity contracts
     that provide for a service fee (surrender charge) at
     annually decreasing rates upon withdrawal of the annuity
     accumulation value by the contract owner.  No sales fee is
     deducted from the contract considerations received on these
     contracts ("no load" annuities).  All of the Company's
     single premium deferred annuity contracts provide for
     crediting the contract owners' accumulations at specified
     rates of interest.  Such rates are revised by the Company
     from time to time based on changes in the market investment
     yield rates for fixed-income securities.
     
<PAGE>
PAGE 28
1.   Summary of significant accounting policies (continued)

     Profits on single premium deferred annuities and installment
     annuities are recognized by the Company over the lives of
     the contracts and represent the excess of investment income
     earned from investment of contract considerations over
     interest credited to contract owners and other expenses.
     
     The retrospective deposit method is used in accounting for
     universal life-type insurance.  This method recognizes
     profits over the lives of the policies in proportion to the
     estimated gross profits expected to be realized.

     Premiums on traditional life, disability income, health and
     long-term care insurance policies are recognized as revenue
     when collected or due, and related benefits and expenses are
     associated with premium revenue in a manner that results in
     recognition of profits over the lives of the insurance
     policies.  This association is accomplished by means of the
     provision for future policy benefits and the deferral and
     subsequent amortization of policy acquisition costs.

     Deferred policy acquisition costs

     The costs of acquiring new business, principally sales
     compensation, policy issue costs, underwriting and certain
     sales expenses, have been deferred on insurance and annuity
     contracts.  The deferred acquisition costs for single premium
     deferred annuities and installment annuities are amortized
     based upon surrender charge revenue and a portion of the
     excess of investment income earned from investment of the
     contract considerations over the interest credited to contract
     owners.  The costs for universal life-type insurance are
     amortized over the lives of the policies as a percentage of
     the estimated gross profits expected to be realized on the
     policies.  For traditional life, disability income, health
     and long-term care insurance policies, the costs are
     amortized over an appropriate period in proportion to
     premium revenue.
     
     Liabilities for future policy benefits
     
     Liabilities for universal life-type insurance, single
     premium deferred annuities and installment annuities are
     accumulation values.
     
     Liabilities for fixed annuities in a benefit status are
     based on the Progressive Annuity Table with interest at 5
     percent, the 1971 Individual Annuity Table with interest at
     7 percent or 8.25 percent, or the 1983a Table with various
     interest rates ranging from 5.5 percent to 9.5 percent,
     depending on year of issue.
<PAGE>
PAGE 29
1.   Summary of significant accounting policies (continued)
     
     Liabilities for future benefits on traditional life
     insurance have been computed principally by the net level
     premium method, based on anticipated rates of mortality
     (approximating the 1965-1970 Select and Ultimate Basic Table
     for policies issued after 1980 and the 1955-1960 Select and
     Ultimate Basic Table for policies issued prior to 1981 and
     the 1975-1980 Select and Ultimate Basic Table for term
     insurance policies issued after 1984), policy persistency
     derived from Company experience data (first year rates
     ranging from approximately 70 percent to 90 percent and
     increasing rates thereafter), and estimated future
     investment yields of 4 percent for policies issued before
     1974 and 5.25 percent for policies issued from 1974 to 1980.
     Cash value plans issued in 1980 and later assume future
     investment rates that grade from 9.5 percent to 5 percent
     over 20 years.  Term insurance issued from 1981 to 1984
     assumes an 8 percent level investment rate, term insurance
     issued from 1985-1993 assumes investment rates that grade
     from 10 percent to 6 percent over 20 years and term
     insurance issued after 1993 assumes investment rates that
     grade from 8 percent to 6.5 percent over 7 years.
     
     Liabilities for future disability income policy benefits
     have been computed principally by the net level premium
     method, based on the 1964 Commissioners Disability Table
     with the 1958 Commissioners  Standard Ordinary Mortality
     Table at 3 percent interest for persons disabled in 1980 and
     prior, 8 percent interest for persons disabled from 1981 to
     1991, 7 percent interest for persons disabled in 1992 and 6
     percent interest for persons disabled after 1992.
     
     Liabilities for future benefits on long-term care insurance
     have been computed principally by the net level premium
     method, using morbidity rates based on the 1985 National
     Nursing Home Survey and mortality rates based on the 1983a
     Table.  The interest rate basis is 9.5 percent grading to 7
     percent over ten years for policies issued from 1989 to
     1992, 7.75 percent grading to 7 percent over four years for
     policies issued after 1992, 8 percent for claims incurred in
     1989 to 1991, 7 percent for claims incurred in 1992 and 6
     percent for claims incurred after 1992.
     
     Reinsurance
     
     The maximum amount of life insurance risk retained by the
     Company on any one life is $750 of life and waiver of
     premium benefits plus $50 of accidental death benefits.  The
     maximum amount of disability income risk retained by the
     Company on any one life is $6 of monthly benefit for benefit
     periods longer than three years.  The excesses are reinsured
     with other life insurance companies on a yearly renewable
     term basis.  Graded premium whole life and long-term care
     policies are primarily reinsured on a coinsurance basis.
     
<PAGE>
PAGE 30
1.   Summary of significant accounting policies (continued)

     Federal income taxes
     
     The Company's taxable income is included in the consolidated
     federal income tax return of American Express Company.  The
     Company provides for income taxes on a separate return
     basis, except that, under an agreement between American
     Express Financial Corporation and American Express Company,
     tax benefit is recognized for losses to the extent they can
     be used on the consolidated tax return.  It is the policy of
     American Express Financial Corporation to reimburse a
     subsidiary for any tax benefit.
     
     Included in other liabilities at December 31, 1995 is
     $13,415 payable to American Express Financial Corporation
     for federal income taxes.  Included in other receivables at
     December 31, 1994 is $22,034 receivable from American
     Express Financial Corporation for federal income taxes.
     
     Separate account business

     The separate account assets and liabilities represent funds
     held for the exclusive benefit of the variable annuity and
     variable life insurance contract owners.  The Company
     receives investment management and mortality and expense
     assurance fees from the variable annuity and variable life
     insurance mutual funds and separate accounts.  The Company
     also deducts a monthly cost of insurance charge and receives
     a minimum death benefit guarantee fee and issue and
     administrative fee from the variable life insurance separate
     accounts.
     
     The Company makes contractual mortality assurances to the
     variable annuity contract owners that the net assets of the
     separate accounts will not be affected by future variations
     in the actual life expectancy experience of the annuitants
     and the beneficiaries from the mortality assumptions
     implicit in the annuity contracts.  The Company makes
     periodic fund transfers to, or withdrawals from, the
     separate accounts for such actuarial adjustments for
     variable annuities that are in the benefit payment period.
     The Company guarantees, for the variable life insurance
     policyholders, the contractual insurance rate and that the
     death benefit will never be less than the death benefit at
     the date of issuance.
     
     Accounting changes
     
     The Financial Accounting Standards Board's (FASB) SFAS No.
     121, "Accounting for the Impairment of Long-Lived Assets and
     for Long-Lived Assets to Be Disposed Of," is effective
     January 1, 1996.  The new rule is not expected to have a
     material impact on the Company's results of operations or
     financial condition.
     
     The Company's adoption of SFAS No. 114 as of January 1, 1995
     is discussed in Note 2.
<PAGE>
PAGE 31
1.   Summary of significant accounting policies (continued)

     The Company adopted SFAS No. 115, "Accounting for Certain
     Investments in Debt and Equity Securities."  The effect of
     adopting the new rule was to increase stockholder's equity
     by approximately $181 million, net of tax, as of January 1,
     1994, but the adoption had no impact on the Company's net
     income.
     
     Reclassification
     
     Certain 1994 and 1993 amounts have been reclassified to
     conform to the 1995 presentation.

2.   Investments

     Fair values of investments in fixed maturities represent
     quoted market prices and estimated values when quoted prices
     are not available.  Estimated values are determined by
     established procedures involving, among other things, review
     of market indices, price levels of current offerings of
     comparable issues, price estimates and market data from
     independent brokers and financial files.
     
     Net realized gain (loss) on investments for the years ended
     December 31 is summarized as follows:

                               1995      1994        1993 
     Fixed maturities       $  9,973   $(1,575)   $ 20,583
     Mortgage loans          (13,259)   (3,013)    (25,056)
     Other investments        (1,612)      306      (2,264)
                            $ (4,898)  $(4,282)   $ (6,737)

     Changes in net unrealized appreciation (depreciation) of
     investments for the years ended December 31 are summarized
     as follows:

                                1995         1994          1993 
     Fixed maturities:
       Held to maturity      $1,195,847  $(1,329,740)   $     --
       Available for sale       811,649     (720,449)         --
       Investment securities         --           --     323,060
     Equity securities            3,118       (2,917)       (156)

     The amortized cost, gross unrealized gains and losses and
     fair values of investments in fixed maturities and equity
     securities at December 31, 1995 are as follows:
     <TABLE>
     <CAPTION>
                                                               Gross        Gross
                                               Amortized    Unrealized    Unrealized      Fair
     Held to maturity                             Cost         Gains        Losses        Value
     <S>                                     <C>             <C>          <C>        <C>
     U.S. Government agency obligations      $    64,523     $  3,919     $    --    $    68,442
     State and municipal obligations              11,936          362          32         12,266
     Corporate bonds and obligations           8,921,431      620,327      36,786      9,504,972
     Mortgage-backed securities                2,259,701       42,684       9,688      2,292,697
                                             $11,257,591     $667,292     $46,506    $11,878,377
     
<PAGE>
PAGE 32
2.   Investments (continued)
                                                               Gross        Gross
                                               Amortized    Unrealized    Unrealized      Fair
     Available for sale                           Cost         Gains        Losses        Value
     
     U.S. Government agency obligations      $    84,082     $  3,248     $    50    $    87,280
     State and municipal obligations              11,020        1,476          --         12,496
     Corporate bonds and obligations           2,514,308      186,596       3,451      2,697,453
     Mortgage-backed securities                7,536,726      206,288      24,031      7,718,983
     Total fixed maturities                   10,146,136      397,608      27,532     10,516,212
     Equity securities                             3,156          361          --          3,517
                                             $10,149,292     $397,969     $27,532    $10,519,729
     </TABLE>

     The amortized cost, gross unrealized gains and losses and
     fair values of investments in fixed maturities and equity
     securities at December 31, 1994 are as follows:
     <TABLE><CAPTION>
                                                               Gross       Gross
                                               Amortized    Unrealized   Unrealized     Fair
     Held to maturity                             Cost         Gains       Losses       Value
     <S>                                     <C>            <C>         <C>         <C>
     U.S. Government agency obligations      $    21,500    $     43    $  4,372    $    17,171
     State and municipal obligations               9,687         132          --          9,819
     Corporate bonds and obligations           8,806,707     100,468     459,568      8,447,607
     Mortgage-backed securities                2,431,967      10,630     222,394      2,220,203
                                             $11,269,861    $111,273    $686,334    $10,694,800
     
                                                               Gross       Gross
                                               Amortized    Unrealized   Unrealized     Fair
     Available for sale                           Cost         Gains       Losses       Value
     
     U.S. Government agency obligations      $   128,093    $    756    $  1,517    $   127,332
     State and municipal obligations              11,008         702          --         11,710
     Corporate bonds and obligations           1,142,321      24,166       7,478      1,159,009
     Mortgage-backed securities                7,177,706       9,514     467,716      6,719,504
     Total fixed maturities                    8,459,128      35,138     476,711      8,017,555
     Equity securities                             4,663          --       2,757          1,906
                                             $ 8,463,791    $ 35,138    $479,468    $ 8,019,461
     </TABLE>

     The amortized cost and fair value of investments in fixed
     maturities at December 31, 1995 by contractual maturity are
     shown below.  Expected maturities will differ from
     contractual maturities because borrowers may have the right
     to call or prepay obligations with or without call or
     prepayment penalties.

                                       Amortized        Fair
    Held to maturity                     Cost           Value
   
    Due in one year or less          $   268,363     $   272,808
    Due from one to five years         1,692,030       1,783,047
    Due from five to ten years         5,467,302       5,833,309
    Due in more than ten years         1,570,195       1,696,516
    Mortgage-backed securities         2,259,701       2,292,697
                                     $11,257,591     $11,878,377
   
                                       Amortized        Fair
    Available for sale                   Cost           Value
   
    Due in one year or less          $   118,996     $   120,019
    Due from one to five years           849,800         913,175
    Due from five to ten years         1,301,191       1,397,237
    Due in more than ten years           339,423         366,798
    Mortgage-backed securities         7,536,726       7,718,983
                                     $10,146,136     $10,516,212
<PAGE>
PAGE 33
2.   Investments (continued)
     
     During the year ended December 31, 1995, fixed maturities
     classified as held to maturity were sold with proceeds of
     $332,154 and gross realized gains and losses on such sales
     were $14,366 and $15,720, respectively.  The sale of these
     fixed maturities was due to significant deterioration in the
     issuers' creditworthiness.  As a result of adopting the FASB
     Special Report, "A Guide to Implementation of Statement 115
     on Accounting for Certain Investments in Debt and Equity
     Securities," the Company reclassified securities with a book
     value of $91,760 and net unrealized gains of $881 from held
     to maturity to available for sale in December 1995.
     
     In addition, fixed maturities available for sale were sold
     during 1995 with proceeds of $136,825 and gross realized
     gains and losses on such sales were $nil and $5,781,
     respectively.
     
     During the year ended December 31, 1994, fixed maturities
     classified as held to maturity were sold with proceeds of
     $58,001 and gross realized gains and losses on such sales
     were $226 and $3,515, respectively.  The sale of these fixed
     maturities was due to significant deterioration in the
     issuers' creditworthiness.
     
     In addition, fixed maturities available for sale were sold
     during 1994 with proceeds of $374,564 and gross realized
     gains and losses on such sales were $1,861 and $7,602,
     respectively.
     
     At December 31, 1995, bonds carried at $12,761 were on
     deposit with various states as required by law.
     
     Net investment income for the years ended December 31 is
     summarized as follows:
     
                                    1995         1994        1993 

Interest on fixed maturities     $1,656,136  $1,556,756  $1,589,802
Interest on mortgage loans          232,827     196,521     175,063
Other investment income              35,936      38,366      29,345
Interest on cash equivalents          5,363       6,872       2,137
                                  1,930,262   1,798,515   1,796,347
Less investment expenses             22,953      16,642      13,128
                                 $1,907,309  $1,781,873  $1,783,219
     
     At December 31, 1995, investments in fixed maturities
     comprised 86 percent of the Company's total invested assets.
     These securities are rated by Moody's and Standard & Poor's
     (S&P), except for securities carried at approximately
     $2.3 billion which are rated by American Express Financial
     Corporation internal analysts using criteria similar to
     Moody's and S&P.  A summary of investments in fixed
     maturities, at amortized cost, by rating on December 31 is
     as follows:
<PAGE>
PAGE 34
2.   Investments (continued)

        Rating                       1995           1994 
     Aaa/AAA                    $ 9,907,664     $ 9,708,047
     Aaa/AA                           3,112              --
     Aa/AA                          279,403         242,914
     Aa/A                           154,846         119,952
     A/A                          3,104,122       2,567,947
     A/BBB                          871,782         725,755
     Baa/BBB                      4,417,654       3,849,188
     Baa/BB                         657,633         796,063
     Below investment grade       2,007,511       1,719,123
                                $21,403,727     $19,728,989
     
     At December 31, 1995, 95 percent of the securities rated
     Aaa/AAA are GNMA, FNMA and FHLMC mortgage-backed securities.
     No holdings of any other issuer are greater than 1 percent
     of the Company's  total investments in fixed maturities.
     
     At December 31, 1995, approximately 11.6 percent of the
     Company's invested assets were mortgage loans on real
     estate.  Summaries of mortgage loans by region of the United
     States and by type of real estate at December 31, 1995 and
     1994 are as follows:
<TABLE>
<CAPTION>
                                      December 31, 1995           December 31, 1994   
                                  On Balance   Commitments    On Balance   Commitments
          Region                    Sheet      to Purchase      Sheet      to Purchase
     <S>                        <C>            <C>           <C>            <C>
     East North Central         $  720,185     $ 67,206      $  581,142     $ 62,291
     West North Central            303,113       34,411         257,996        7,590
     South Atlantic                732,529      111,967         597,896       63,010
     Middle Atlantic               508,634       37,079         408,940       34,478
     New England                   244,816       40,452         209,867       23,087
     Pacific                       168,272       23,161         138,900           --
     West South Central             61,860       27,978          50,854           --
     East South Central             58,462       10,122          67,503           --
     Mountain                      184,964       16,774         122,668       18,750
                                 2,982,835      369,150       2,435,766      209,206
     Less allowance for losses      37,340           --          35,252           --
                                $2,945,495     $369,150      $2,400,514     $209,206

                                      December 31, 1995           December 31, 1994   
                                  On Balance   Commitments    On Balance   Commitments
       Property type                Sheet      to Purchase      Sheet      to Purchase
     Apartments                 $1,038,446     $ 84,978      $  904,012     $ 56,964
     Department/retail stores      985,660      134,538         802,522       88,325
     Office buildings              464,381       62,664         321,761       21,691
     Industrial buildings          255,469       22,721         232,962       18,827
     Nursing/retirement homes       80,864        4,378          89,304        4,649
     Mixed Use                      53,169           --              --           --
     Hotels/motels                  31,335       48,816          32,666           --
     Medical buildings              57,772        2,495          36,490       15,651
     Other                          15,739        8,560          16,049        3,099
                                 2,982,835      369,150       2,435,766      209,206
     Less allowance for losses      37,340           --          35,252           --
                                $2,945,495     $369,150      $2,400,514     $209,206
</TABLE>

     Mortgage loan fundings are restricted by state insurance
     regulatory authorities to 80 percent or less of the market
     value of the real estate at the time of origination of the
     loan.  The Company holds the mortgage document, which gives
     the right to take possession of the property if the borrower
<PAGE>
PAGE 35
2.   Investments (continued)

     fails to perform according to the terms of the agreement.
     The fair value of the mortgage loans is determined by a
     discounted cash flow analysis using mortgage interest rates
     currently offered for mortgages of similar maturities.
     Commitments to purchase mortgages are made in the ordinary
     course of business.  The fair value of the mortgage
     commitments is $nil.

     As of January 1, 1995, the Company adopted Statement of
     Financial Accounting Standards No. 114, "Accounting by
     Creditors for Impairment of a Loan" (SFAS No. 114), as
     amended by Statement of Financial Accounting Standards No.
     118, "Accounting by Creditors for Impairment of a Loan -
     Income Recognition and Disclosures".  The adoption of the
     new rules did not have a material impact on the Company's
     results of operations or financial condition.
     
     SFAS No. 114 applies to all loans except for smaller-balance
     homogeneous loans, that are collectively evaluated for
     impairment.  Impairment is measured as the excess of the
     loan's recorded investment over its present value of
     expected principal and interest payments discounted at the
     loan's effective interest rate, or the fair value of
     collateral.  The amount of the impairment is recorded as a
     reserve for investment losses.
     
     Based on management's judgment as to the ultimate
     collectibility of principal, interest payments received are
     either recognized as income or applied to the recorded
     investment in the loan until it has been recovered.  Once
     the recorded investment has been recovered, any additional
     payments are recognized as interest income.
     
     The reserve for investment losses is maintained at a level
     that management believes is adequate to absorb estimated
     credit losses in the portfolio.  The level of the reserve
     account is determined based on several factors, including
     historical experience, expected future principal and
     interest payments, estimated collateral values, and current
     and anticipated economic and political conditions.
     Management regularly evaluates the adequacy of the reserve
     for investment losses.
     
     At December 31, 1995, the Company's recorded investment in
     impaired loans was $83,874 with a reserve of $19,307.
     During the year, the average recorded investment in impaired
     loans was $74,567.
     
     The Company recognized $5,014 of interest income related to
     impaired loans for the year ended December 31, 1995.
     
     The following table presents changes in the reserve for
     investment losses related to all loans:
     
<PAGE>
PAGE 36
2.   Investments (continued)

                                                 1995 
     Balance, January 1                        $35,252
     
     Provision for investment losses            15,900
     Sales of related loans                     (6,600)
     Loan payoffs                               (5,300)
     Other                                      (1,912)
     
     Balance, December 31                      $37,340
     
     At December 31, 1995, the Company had commitments to
     purchase real estate investments for $54,897.  Commitments
     to purchase real estate investments are made in the ordinary
     course of business.  The fair value of these commitments is
     $nil.
     
3.   Income taxes

     The Company qualifies as a life insurance company for
     federal income tax purposes.  As such, the Company is
     subject to the Internal Revenue Code provisions applicable
     to life insurance companies.
     
     Income tax expense consists of the following:
     
                                  1995        1994        1993 
     Federal income taxes:
      Current                   $218,040    $186,508    $180,558
      Deferred                   (33,810)    (19,175)    (44,237)
                                 184,230     167,333     136,321
     
     State income taxes-current   11,612       9,010       6,326
     Income tax expense         $195,842    $176,343    $142,647
     
     Increases (decreases) to the federal tax provision
     applicable to pretax income based on the statutory rate are
     attributable to:
     <TABLE>
     <CAPTION>
                                      1995               1994                1993     
                               Provision  Rate     Provision  Rate     Provision  Rate
     <S>                       <C>        <C>      <C>        <C>      <C>        <C>
     Federal income
       taxes based on
       the statutory rate      $196,274   35.0%    $179,379   35.0%    $144,454   35.0%
     Increases (decreases)
     are attributable to:
     Tax-excluded interest
       and dividend income       (8,524)  (1.5)      (9,939)  (2.0)     (11,002)  (2.7)
     Other, net                  (3,520)  (0.6)      (2,107)  (0.4)       2,869    0.7
     Federal income taxes      $184,230   32.9%    $167,333   32.6%    $136,321   33.0%
     </TABLE>

     A portion of life insurance company income earned prior to
     1984 was not subject to current taxation but was
     accumulated, for tax purposes, in a policyholders' surplus
     account.  At December 31, 1995, the Company had a
     policyholders' surplus account balance of $20,114.  The
     policyholder's surplus account balance increased in 1995 due
<PAGE>
PAGE 37
3.   Income taxes (continued)

     to the acquisition of ACLAC.  The policyholders' surplus
     account is only taxable if dividends to the stockholder
     exceed the stockholder's surplus account or if the Company
     is liquidated.  Deferred income taxes of $7,040 have not
     been established because no distributions of such amounts
     are contemplated.

     Significant components of the Company's deferred tax assets
     and liabilities as of December 31 are as follows:
     
                                               1995        1994 
     Deferred tax assets:
     Policy reserves                        $ 600,176    $533,433
     Investments                                   --     116,736
     Life insurance guarantee
     fund assessment reserve                   26,785      32,235
     Total deferred tax assets                626,961     682,404
     
     Deferred tax liabilities:
     Deferred policy acquisition costs        590,762     553,722
     Investments                              146,805          --
     Other                                      2,298       4,621
     Total deferred tax
     liabilities                              739,865     558,343
     Net deferred tax assets (liabilities)  $(112,904)   $124,061

     The Company is required to establish a valuation allowance
     for any portion of the deferred tax assets that management
     believes will not be realized.  In the opinion of management,
     it is more likely than not that the Company will realize the
     benefit of the deferred tax assets, and, therefore, no such
     valuation allowance has been established.

4.   Stockholder's equity

     During 1995, the Company received a $39,700 capital
     contribution from its parent, American Express Financial
     Corporation, in the form of investments in fixed maturities
     and mortgage loans.  In addition, effective January 1, 1995,
     the Company began consolidating the financial results of
     ACLAC.  This change reflected the transfer of ownership of
     ACLAC from Amex Life Assurance Company (Amex Life), a former
     affiliate, to the Company prior to the sale of Amex Life to
     an unaffiliated third party on October 2, 1995.  This
     transfer of ownership to the Company has been reflected as a
     capital contribution of $17,114 in the accompanying
     financial statements.  The effect of this change in
     reporting entity was not significant and prior periods have
     not been restated.
     
     As discussed in Note 5, the Company entered into a
     reinsurance agreement with Amex Life during 1995.  As a
     result of this transaction, a loss of $4,574 was realized
     and reported as a direct charge to retained earnings.
     
<PAGE>
PAGE 38
4.   Stockholder's equity (continued)

     Retained earnings available for distribution as dividends to
     the parent are limited to the Company's surplus as
     determined in accordance with accounting practices
     prescribed by state insurance regulatory authorities.
     Statutory unassigned surplus aggregated $1,103,993 as of
     December 31, 1995 and $1,020,981 as of December 31, 1994
     (see Note 3 with respect to the income tax effect of certain
     distributions).  In addition, any dividend distributions in
     1996 in excess of approximately $290,988 would require
     approval of the Department of Commerce of the State of
     Minnesota.
     
     Statutory net income for the years ended December 31 and
     capital and surplus as of December 31 are summarized as
     follows:
     
                                    1995         1994        1993 
Statutory net income            $  326,799   $  294,699  $  275,015
Statutory capital and surplus    1,398,649    1,261,958   1,157,022

     Dividends paid to American Express Financial Corporation
     were $180,000 in 1995, $165,000 in 1994, and $25,000 in
     1993.

5.   Related party transactions

     The Company has loaned funds to American Express Financial
     Corporation under two loan agreements.  The balance of the
     first loan was $25,800 and $40,000 at December 31, 1995 and
     1994, respectively.  This loan can be increased to a maximum
     of $75,000 and pays interest at a rate equal to the
     preceding month's effective new money rate for the Company's
     permanent investments.  It is collateralized by equities
     valued at $122,978 at December 31, 1995.  The second loan
     was used to fund the construction of the IDS Operations
     Center.  This loan was paid off during 1994.  The loan was
     secured by a first lien on the IDS Operations Center
     property and had an interest rate of 9.89 percent.  The
     Company also had a loan to an affiliate which was used to
     fund construction of the IDS Learning Center.  This loan was
     sold to the American Express Financial Corporation during
     1994.  The loan was secured by a first lien on the IDS
     Learning Center property and had an interest rate of 9.82
     percent.  Interest income on the above loans totaled $1,371,
     $2,894 and $11,116 in 1995, 1994 and 1993, respectively.
     
     The Company purchased a five year secured note from an
     affiliated company which had an outstanding balance of
     $19,444 and $23,333 at December 31, 1995 and 1994,
     respectively.  The note bears a fixed rate of 8.42 percent.
     Interest income on the above note totaled $1,937, $2,278 and
     $2,605 in 1995, 1994 and 1993, respectively.

<PAGE>
PAGE 39
5.   Related party transactions (continued)

     The Company has a reinsurance agreement whereby it assumed
     100 percent of a block of single premium life insurance
     business from Amex Life.  The accompanying consolidated
     balance sheets at December 31, 1995 and 1994 include
     $764,663 and $765,366, respectively, of future policy
     benefits related to this agreement.

     The Company has a reinsurance agreement to cede 50 percent
     of its long-term care insurance business to Amex Life. The
     accompanying consolidated balance sheets at December 31,
     1995 and 1994 include $95,484 and $65,123, respectively, of
     reinsurance receivables related to this agreement.  Premiums
     ceded amounted to $25,553, $20,360 and $16,230 and
     reinsurance recovered from reinsurers amounted to $760, $62
     and $404 for the years ended December 31, 1995, 1994 and
     1993, respectively.
     
     The Company has a reinsurance agreement to assume deferred
     annuity contracts from Amex Life.  At October 1, 1995 a
     $803,618 block of deferred annuities and $28,327 of deferred
     policy acquisition costs were transferred to the Company.
     The accompanying consolidated balance sheet at December 31,
     1995 includes $828,298 of future policy benefits related to
     this agreement.

     Until July 1, 1995 the Company participated in the IDS
     Retirement Plan of American Express Financial Corporation
     which covered all permanent employees age 21 and over who
     had met certain employment requirements.  Effective July 1,
     1995, the IDS Retirement Plan was merged with American
     Express Company's American Express Retirement Plan, which
     simultaneously was amended to include a cash balance formula
     and a lump sum distribution option.  Employer contributions
     to the plan are based on participants' age, years of service
     and total compensation for the year.  Funding of retirement
     costs for this plan complies with the applicable minimum
     funding requirements specified by ERISA.  The Company's
     share of the total net periodic pension cost was $nil in
     1995, 1994 and 1993.
     
     The Company also participates in defined contribution
     pension plans of American Express Company which cover all
     employees who have met certain employment requirements.
     Company contributions to the plans are a percent of either
     each employee's eligible compensation or basic
     contributions.  Costs of these plans charged to operations
     in 1995, 1994 and 1993 were $815, $957 and $2,008,
     respectively.
     
     The Company participates in defined benefit health care
     plans of American Express Financial Corporation that provide
     health care and life insurance benefits to retired employees
     and retired financial advisors.  The plans include
     participant contributions and service related eligibility
     requirements.  Upon retirement, such employees are
<PAGE>
PAGE 40
5.   Related party transactions (continued)

     considered to have been employees of American Express
     Financial Corporation.  American Express Financial
     Corporation expenses these benefits and allocates the
     expenses to its subsidiaries.  Accordingly, costs of such
     benefits to the Company are included in employee
     compensation and benefits and cannot be identified on a
     separate company basis.  At December 31, 1995 and 1994, the
     total accumulated post retirement benefit obligation has
     been recorded as a liability by American Express Financial
     Corporation.
     
     Charges by American Express Financial Corporation for use of
     joint facilities, marketing services and other services
     aggregated $377,139, $335,183, and $243,346 for 1995, 1994
     and 1993, respectively.  Certain of these costs are included
     in deferred policy acquisition costs.  In addition, the
     Company rents its home office space from American Express
     Financial Corporation on an annual renewable basis.

6.   Commitments and contingencies

     At December 31, 1995 and 1994, traditional life insurance
     and universal life-type insurance in force aggregated
     $59,683,532 and $52,666,567, respectively, of which
     $3,771,204 and $3,246,608 were reinsured at the respective
     year ends.  The Company also reinsures a portion of the
     risks assumed under disability income policies. Under the
     agreements, premiums ceded to reinsurers amounted to
     $29,146, $29,489 and $28,276 and reinsurance recovered from
     reinsurers amounted to $5,756, $5,505, and $3,345 for the
     years ended December 31, 1995, 1994 and 1993.
     
     Reinsurance contracts do not relieve the Company from its
     primary obligation to policyholders.
     
     The Company is a defendant in various lawsuits, none of
     which, in the opinion of Company counsel, will result in a
     material liability.

     The IRS has completed its audit of the Company's 1987
     through 1989 tax years.  The Company is currently contesting
     one issue at the IRS Appeals Level.  Management does not
     believe there will be a  material impact as a result of this
     audit.

7.   Lines of credit

     The Company has available lines of credit with three banks
     aggregating $100,000 at 40 to 80 basis points over the
     banks' cost of funds or equal to the prime rate, depending
     on which line of credit agreement is used.  Borrowings
     outstanding under these agreements were $nil at December 31,
     1995 and 1994, respectively.

<PAGE>
PAGE 41
8.   Derivative financial instruments
     
     The Company enters into transactions  involving derivative
     financial instruments to manage its exposure to interest
     rate risk, including hedging specific transactions.  The
     Company manages risks associated with these instruments as
     described below.  The Company does not hold derivative
     instruments for trading purposes.
     
     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.  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 exposure related to derivative financial instruments
     through established approval procedures, including setting
     concentration limits by counterparty and industry, 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 notional or contract amount of a derivative financial
     instrument is generally used to calculate the cash flows
     that are received or paid over the life of the agreement.
     Notional amounts are not recorded on the balance sheet.
     Notional amounts far exceed the related credit exposure.
     
     Credit exposure related to interest rate caps is measured by
     the replacement cost of the contracts.   The replacement
     cost represents the fair value of the instruments.
     Financial futures contracts are settled in cash daily.
     <TABLE>
     <CAPTION>
                                        Notional    Carrying     Fair    Total Credit
     December 31, 1995                   Amount       Value      Value     Exposure  
     <S>                               <C>           <C>       <C>        <C>
     Assets:
       Interest rate caps              $5,100,000    $26,680   $ 8,366    $ 8,366
     
     December 31, 1994
     
     Assets:
       Financial futures contracts     $  159,800    $ 2,072   $ 2,072    $    --
       Interest rate caps               4,400,000     29,054    42,365     42,365
                                       $4,559,800    $31,126   $44,437    $42,365
     </TABLE>

     The fair values of derivative financial instruments are
     based on market values, dealer quotes or pricing models.
     The financial futures contracts expired in 1995.  The
     interest rate caps expire on various dates from 1996 to
     2000.
     
<PAGE>
PAGE 42
8.   Derivative financial instruments (continued)

     Financial futures contracts and interest rate caps are used
     principally to manage the Company's exposure to rising
     interest rates.  These instruments are used primarily to
     protect the margin between interest rates earned on
     investments and the interest rates credited to related
     annuity contract holders.

     Changes in the fair value of financial futures contracts are
     accounted for as adjustments to the carrying amount of the
     hedged investments and amortized over the remaining lives of
     such investments.  The cost of interest rate caps is
     amortized to interest expense over the life of the contracts
     and payments received as a result of these agreements are
     recorded as a reduction of interest expense when realized.
     The amortized cost of interest rate cap contracts is
     included in other investments.

9.   Fair values of financial instruments

     The Company discloses fair value information for most on-
     and off-balance sheet financial instruments for which it is
     practical to estimate that value.  Fair values of life
     insurance obligations and all non-financial instruments,
     such as deferred acquisition costs are excluded.  Off-
     balance sheet intangible assets, such as the value of the
     field force, are also excluded.  Management believes the
     value of excluded assets is significant.  The fair value of
     the Company, therefore, cannot be estimated by aggregating
     the amounts presented.
     <TABLE>
     <CAPTION>
                                                1995                           1994         
                                      Carrying          Fair         Carrying          Fair
     Financial Assets                   Value           Value          Value           Value
     <S>                              <C>            <C>            <C>            <C>
     Investments:
       Fixed maturities (Note 2):
         Held to maturity             $11,257,591    $11,878,377    $11,269,861    $10,694,800
         Available for sale            10,516,212     10,516,212      8,017,555      8,017,555
       Mortgage loans on
         real estate (Note 2)           2,945,495      3,184,666      2,400,514      2,342,520
       Other:
         Equity securities (Note 2)         3,517          3,517          1,906          1,906
         Derivative financial
           instruments (Note 8)            26,680          8,366         31,126         44,437
         Other                             52,182         52,182             --             --
     Cash and
       cash equivalents (Note 1)           72,147         72,147        267,774        267,774
     Separate account assets
       (Note 1)                        14,974,082     14,974,082     10,881,235     10,881,235
     
     Financial Liabilities
       Future policy benefits
         for fixed annuities           20,259,265     19,603,114     18,325,870     17,651,897
       Separate account liabilities    14,208,619     13,665,636     10,398,861      9,943,672
     </TABLE>

     At December 31, 1995 and 1994, the carrying amount and fair
     value of future policy benefits for fixed annuities exclude
     life insurance-related contracts carried at $1,070,598 and
     $971,897, respectively, and policy loans of $74,973 and
     $64,212, respectively.  The fair value of these benefits is
<PAGE>
PAGE 43
9.   Fair values of financial instruments (continued)

     based on the status of the annuities at December 31, 1995
     and 1994.  The fair value of deferred annuities is estimated
     as the carrying amount less any applicable surrender charges
     and related loans.  The fair value for annuities in non-life
     contingent payout status is estimated as the present value
     of projected benefit payments at rates appropriate for
     contracts issued in 1995 and 1994.

     At December 31, 1995 and 1994, the fair value of liabilities
     related to separate accounts is estimated as the carrying
     amount less any applicable surrender charges and less
     variable insurance contracts carried at $765,463 and
     $482,374, respectively.

10.  Segment information

     The Company's operations consist of two business segments;
     first, individual and group life insurance, disability
     income, health and long-term care insurance, and second,
     annuity products designed for individuals, pension plans,
     small businesses and employer-sponsored groups.  The
     consolidated condensed statements of income for the years
     ended December 31, 1995, 1994 and 1993 and total assets at
     December 31, 1995, 1994 and 1993 by segment are summarized
     as follows:
     <TABLE>
     <CAPTION>
                                                1995           1994          1993 
     <S>                                   <C>            <C>            <C>
     Net investment income:
     Life, disability income, health
       and long-term care insurance        $   256,242    $   247,047    $   250,224
     Annuities                               1,651,067      1,534,826      1,532,995
                                           $ 1,907,309    $ 1,781,873    $ 1,783,219
     Premiums, charges and fees:
     Life, disability income, health
       and long-term care insurance        $   384,008    $   335,375    $   287,713
     Annuities                                 249,557        193,370        143,876
                                           $   633,565    $   528,745    $   431,589
     Income before income taxes:
     Life, disability income, health
       and long-term care insurance        $   125,402    $   122,677    $   104,127
     Annuities                                 440,278        394,117        315,336
     Net loss on investments                    (4,898)        (4,282)        (6,737)
                                           $   560,782    $   512,512    $   412,726
     Total assets:
     Life, disability income, health
       and long-term care insurance        $ 6,195,870    $ 5,269,188    $ 4,810,145
     Annuities                              36,704,208     30,478,355     28,247,608
                                           $42,900,078    $35,747,543    $33,057,753
     </TABLE>
     Allocations of net investment income and certain general
     expenses are based on various assumptions and estimates.
     
     Assets are not individually identifiable by segment and have
     been allocated principally based on the amount of future
     policy benefits by segment.

     Capital expenditures and depreciation expense are not
     material, and consequently, are not reported.
<PAGE>
PAGE 44
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS
OTHER THAN INVESTMENTS IN RELATED PARTIES ($ thousands)
AS OF DECEMBER 31, 1995


Column A                                      Column B          Column C          Column D

Type of Investment                              Cost              Value       Amount at which
                                                                               shown in the
                                                                               balance sheet
<S>                                          <C>               <C>              <C>
Fixed maturities:
    Held to maturity:                                 
        United States Government and                                    
          government agencies and                                 
          authorities (a)                    $ 1,237,093       $ 1,253,115      $ 1,237,093
        States, municipalities and
           political subdivisions                 11,936            12,266           11,936
        All other corporate bonds             10,008,562        10,612,996       10,008,562
              Total held to maturity          11,257,591        11,878,377       11,257,591
                                    
    Available for sale:                               
        United States Government and                                    
          government agencies and                                 
          authorities (b)                      4,092,563         4,176,080        4,176,080
        States, municipalities and
           political subdivisions                 11,020            12,496           12,496
        All other corporate bonds              6,042,553         6,327,636        6,327,636
              Total available for sale        10,146,136        10,516,212       10,516,212
                                    
Mortgage loans on real estate                  2,945,495         XXXXXXXXX        2,945,495
Policy loans                                     424,019         XXXXXXXXX          424,019
Other investments                                146,894         XXXXXXXXX          146,894
                                    
              Total investments              $24,920,135       $ XXXXXXXXX      $25,290,211
                                    
(a) - Includes mortgage-backed securities with a cost and market value of $1,172,570 and
      $1,184,673, respectively.                                    
(b) - Includes mortgage-backed securities with a cost and market value of $4,008,481 and
      $4,088,800, respectively.
</TABLE>
<PAGE>
PAGE 45
<TABLE>
<CAPTION>

IDS LIFE INSURANCE COMPANY
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1995

Column A               Column B          Column C          Column D          Column E           Column F          Column G

Segment                Deferred          Future            Unearned          Other policy        Premium            Net
                        policy           policy            premiums           claims and         revenue         investment
                      acquisition       benefits,                              benefits                            income
                         cost            losses,                               payable
                                       claims and
                                          loss
                                        expenses

<S>                  <C>               <C>               <C>                  <C>                <C>            <C>
Annuities            $1,227,169        $21,404,836       $      -             $28,191            $      -       $1,651,067

Life, DI,
Long-term Care and
Health Insurance        798,556          3,613,253              -              28,132             161,530          256,242

Total                $2,025,725        $25,018,089       $      -             $56,323            $161,530       $1,907,309

                       Column H          Column I          Column J          Column K

                       Benefits,       Amortization          Other           Premiums
                        claims,        of deferred         operating         written
                      losses and         policy             expenses
                      settlement       acquisition
                       expenses           costs

Annuities            $    2,693        $   189,626       $166,191              N/A

Life, DI,
Long-term Care and
Health Insurance        164,749             90,495         45,451              N/A

Total                $  167,442        $   280,121       $211,642              N/A

</TABLE>
<PAGE>
PAGE 46
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1994

Column A               Column B          Column C          Column D          Column E           Column F          Column G

Segment                Deferred           Future           Unearned         Other policy        Premium              Net
                        policy            policy           premiums          claims and         revenue           investment
                     acquisition         benefits,                            benefits                              income
                         cost             losses,                              payable
                                        claims and
                                           loss
                                         expenses

<S>                   <C>              <C>               <C>                  <C>             <C>                <C>
Annuities             $1,150,585       $19,361,979       $      -             $23,888         $      -           $1,534,826

Life, DI,
Long-term Care and
Health Insurance         714,739         3,346,931              -              26,180          144,640              247,047

Total                 $1,865,324       $22,708,910       $      -             $50,068         $144,640           $1,781,873

                       Column H          Column I          Column J          Column K

                       Benefits,       Amortization          Other           Premiums
                        claims,        of deferred         operating         written
                      losses and         policy             expenses
                      settlement       acquisition
                       expenses           costs

Annuities             $   (5,762)      $   194,060       $131,515              N/A

Life, DI,
Long-term Care and
Health Insurance         134,128            86,312         78,586              N/A

Total                 $  128,366       $   280,372       $210,101              N/A

</TABLE>
<PAGE>
PAGE 47
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1993

Column A               Column B          Column C          Column D          Column E           Column F

Segment                Deferred           Future           Unearned        Other policy         Premium
                        policy            policy           premiums         claims and          revenue
                     acquisition         benefits,                           benefits
                         cost             losses,                             payable
                                        claims and
                                           loss
                                          expenses
<S>                   <C>              <C>                <C>                <C>               <C>
Annuities             $1,008,378       $18,492,135        $      -           $ 21,508          $      -

Life, DI,
Long-term Care and
Health Insurance         644,006         3,148,932               -             23,008           127,245

Total                 $1,652,384       $21,641,067        $      -           $ 44,516          $127,245

                       Column G          Column H          Column I          Column J          Column K

                          Net            Benefits,       Amortization          Other           Premiums
                      investment          claims,        of deferred         operating         written
                        income          losses and         policy             expenses
                                        settlement       acquisition
                                         expenses           costs

Annuities             $1,532,995       $     3,656        $139,602           $122,999            N/A

Life, DI,
Long-term Care and
Health Insurance         250,224           119,335          72,131            118,975            N/A

Total                 $1,783,219       $   122,991        $211,733           $241,974            N/A

</TABLE>
<PAGE>
PAGE 48
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY
SCHEDULE IV - REINSURANCE ($ thousands)
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993

Column A                         Column B          Column C          Column D         Column E       Column F

                               Gross amount      Ceded to other    Assumed from          Net        % of amount
                                                   companies      other companies       Amount     assumed to net

<S>                            <C>                <C>               <C>               <C>             <C>
For the year ended
  December 31, 1995

Life insurance in force        $57,895,180        $3,771,204        $1,788,352        $55,912,328      3.20%

Premiums:
  Life insurance               $    53,089        $    2,648        $     (248)       $    50,193     -0.49%
  DI & health insurance            137,016            25,679                --            111,337      0.00%
Total premiums                 $   190,105        $   28,327        $     (248)       $   161,530     -0.15%

For the year ended
  December 31, 1994

Life insurance in force        $50,814,651        $3,246,608        $1,851,916        $49,419,959      3.75%

Premiums:
  Life insurance               $    51,219        $    3,354        $      319        $    48,184      0.66%
  DI & health insurance            114,049            17,593                --             96,456      0.00%
Total premiums                 $   165,268        $   20,947        $      319        $   144,640      0.22%

For the year ended
  December 31, 1993

Life insurance in force        $44,188,493        $3,038,426        $1,937,022        $43,087,089      4.50%

Premiums:
  Life insurance               $    51,764        $    3,627        $       --        $    48,137      0.00%
  DI & health insurance             96,250            17,142                --             79,108      0.00%
Total premiums                 $   148,014        $   20,769        $       --        $   127,245      0.00%

</TABLE>
<PAGE>
PAGE 49
<TABLE>
<CAPTION>                                                                     
IDS LIFE INSURANCE COMPANY
SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS ($ thousands)
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993

          Column A                  Column B          Column C                          Column D            Column E

                                                      Additions
                                                      ---------
                                   Balance at                          Charged to
        Description                Beginning          Charged to     Other Accounts-   Deductions-       Balance at End
                                   of Period       Costs & Expenses     Describe       Describe *          of Period
<S>                                 <C>                <C>                 <C>          <C>                 <C>
For the year ended
  December 31, 1995
-------------------------
Reserve for Mortgage Loans          $35,252             $ 1,088            $0           ($1,000)            $37,340
Reserve for Other Investments       $ 7,515            ($ 2,802)           $0            $    0             $ 4,713

For the year ended
  December 31, 1994
-------------------------
Reserve for Mortgage Loans          $35,020             $   232            $0            $    0             $35,252
Reserve for Fixed Maturities        $22,777            ($16,777)           $0            $6,000             $     0
Reserve for Other Investments       $10,700            ($ 3,185)           $0            $    0             $ 7,515

For the year ended
  December 31, 1993
-------------------------
Reserve for Mortgage Loans          $23,595             $13,635            $0            $2,210             $35,020
Reserve for Fixed Maturities        $37,899            ($15,122)           $0                               $22,777
Reserve for Other Investments       $12,834            ($ 4,344)           $0           ($2,210)            $10,700

* 1995 amount represents a reserve on mortgage loans which were transferred from an affiliate.  1994 amount represents
  a direct writedown of the related investments in fixed maturities.  1993 amounts represent transfers between reserve accounts.

</TABLE>
<PAGE>