Supplement Dated November 10, 2000*
to the Prospectus Dated May 1, 2000
of American Express Signature Variable AnnuitySM 43444 C (5/00)
and American Express Signature One Variable AnnuitySM 240192 C (5/00)
The following revision applies to the "American Enterprise Life Insurance
Company Financial Information" section of the prospectus. The following
"Statements of Cash Flows" is added immediately following the "Statements of
Stockholder's Equity."
<TABLE>
<CAPTION>
American Enterprise Life Insurance Company
Statements of Cash Flows
Years ended December 31, ($ thousands) 1999 1998 1997
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income $ 33,987 $ 22,026 $ 28,313
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Change in accrued investment income 5,064 (2,152) (8,017)
Change in accounts receivable (102) 349 9,304
Change in deferred policy acquisition costs, net 16,191 28,022 (21,276)
Change in other assets 34 74 4,840
Change in policy claims and other policyholders' funds 4,708 (3,939) (16,099)
Deferred income tax (benefit) provision 711 (9,591) (2,485)
Change in other liabilities (7,064) 7,595 1,255
Amortization of premium (accretion of discount), net 2,315 122 (2,316)
Net realized (gain) loss on investments (6,565) 4,788 509
Other, net (1,562) 2,544 959
-------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 47,717 49,838 (5,013)
Cash flows from investing activities:
Fixed maturities held to maturity:
Purchases -- -- (1,996)
Maturities 65,705 73,601 41,221
Sales 8,466 31,117 30,601
Fixed maturities available for sale:
Purchases (593,888) (298,885) (688,050)
Maturities 248,317 335,357 231,419
Sales 469,126 48,492 73,366
Other investments:
Purchases (28,520) (161,252) (199,593)
Sales 57,548 78,681 29,139
Change in amounts due to brokers (29,132) 19,412 (53,796)
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Net cash provided by (used in) investing activities 197,622 126,523 (537,689)
Cash flows from financing activities:
Activity related to investment contracts:
Considerations received 299,899 302,158 783,339
Surrenders and other benefits (753,821) (707,052) (552,903)
Interest credited to account balances 208,583 228,533 231,437
Capital contribution from parent -- -- 40,000
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Net cash (used in) provided by financing activities (245,339) (176,361) 501,873
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Net decrease in cash and cash equivalents -- -- (40,829)
Cash and cash equivalents at beginning of year -- -- 40,829
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Cash and cash equivalents at end of year $-- $-- $--
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</TABLE>
See accompanying notes.
43444-21 A (11/00)
*Valid until April 30, 2001.
