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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 6 (File No. 33-52518) X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 7 (File No. 811-3217) X
formerly known as
IDS LIFE ACCOUNT F IDS LIFE ACCOUNT F
IDS LIFE ACCOUNT IZ IDS LIFE ACCOUNT IZ
IDS LIFE ACCOUNT JZ IDS LIFE ACCOUNT JZ
IDS LIFE ACCOUNT G IDS LIFE ACCOUNT G
IDS LIFE ACCOUNT H IDS LIFE ACCOUNT H
IDS LIFE ACCOUNT N IDS LIFE ACCOUNT N
IDS LIFE ACCOUNT KZ
IDS LIFE ACCOUNT LZ
IDS LIFE ACCOUNT MZ
___________________________________________________________________
(Exact Name of Registrant)
IDS Life Insurance Company
___________________________________________________________________
(Name of Depositor)
IDS Tower 10, Minneapolis, MN 55440-0010
___________________________________________________________________
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (612) 671-3678
Mary Ellyn Minenko, IDS Tower 10, Minneapolis, MN 55440-0010
___________________________________________________________________
(Name and Address of Agent for Service)
It is proposed that this filing will become effective:
immediately upon filing pursuant to paragraph (b) of Rule 485
X on April 30, 1996, pursuant to paragraph (b) of Rule 485
60 days after filing pursuant to paragraph (a)(i) of Rule 485
on (date), pursuant to paragraph (a)(i) of Rule 485
____ 75 days after filing pursuant to paragraph (a)(ii) of Rule 485
____ on (date) pursuant to paragraph (a)(ii) of Rule 485
If appropriate, check the following box:
____ this post-effective amendment designates a new effective date
for previously filed post-effective amendment.
The Registrant has registered an indefinite number or amount of
securities under the Securities Act of 1933 pursuant to section
24f-2 of the Investment Company Act of 1940. Registrant's Rule
24f-2 Notice for its most recent fiscal year was filed on or about
February 23, 1996.
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<TABLE>
<CAPTION>
CROSS REFERENCE SHEET
Cross reference sheet showing location in the prospectus of the information
called for by the items enumerated in Part A and B of Form N-4.
Negative answers omitted from prospectus are so indicated.
PART A PART B
Section in
Section Statement of
Item No. in Prospectus Item No. Additional Information
<C> <C> <C> <C>
1 Cover page 15 Cover page
2 Key terms 16 Table of contents
3(a) Expense summary 17(a) NA
(b) The Employee Benefit (b) NA
Annuity in brief (c) About IDS Life*
4(a) Condensed financial information
(b) Performance information 18(a) NA
(c) Financial statements (b) NA
(c) Independent auditors
5(a) Cover page; About IDS Life (d) NA
(b) The variable accounts (e) NA
(c) The funds (f) Principal underwriter
(d) Cover page; The funds
(e) Voting rights 19(a) Distribution of the certificates*;
(f) NA About IDS Life*
(g) NA (b) Certificate charges*
6(a) Certificate charges 20(a) Principal underwriter
(b) Certificate charges (b) Principal underwriter
(c) Certificate charges (c) Principal underwriter
(d) Distribution of the certificates (d) NA
(e) The funds
(f) NA 21(a) Performance information
(b) Performance information
7(a) Buying the contract and certificate;
Benefits in case of death; 22 Calculating annuity payments
The annuity payout period
(b) The variable accounts; Making 23(a) Financial statements
the most of your annuity (b) Financial statements
(c) The funds; certificate charges
(d) Cover page
8(a) The annuity payout period
(b) Buying the contract and certificate
(c) The annuity payout period
(d) The annuity payout period
(e) The annuity payout period
(f) The annuity payout period
9(a) Benefits in case of death
(b) Benefits in case of death
10(a) Buying the contract and certificate; Valuing your investment
(b) Valuing your investment
(c) Buying the contract and certificate; Valuing your investment
(d) NA
11(a) Surrendering a certificate
(b) TSA - Special surrender provisions
(c) Surrendering a certificate
(d) Buying the contract and certificate
(e) The Employee Benefit Annuity in brief
12(a) Taxes
(b) Key terms
(c) NA
13 NA
14 Table of Contents of the Statement of Additional Information
*Designates section in the prospectus, which is hereby incorporated by
reference in this Statement of Additional Information.
</TABLE>
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IDS Life Employee Benefit Annuity
Prospectus
April 30, 1996
The Employee Benefit Annuity is a flexible premium group deferred
fixed/variable annuity contract (the contract) offered by IDS Life
Insurance Company (IDS Life) a subsidiary of American Express
Financial Corporation. Participation in the contract will be
accounted for separately by the issuance of a certificate showing
the participant's interest under the contract.
The contract is a group deferred annuity in which purchase payments
are accumulated on a fixed and/or variable basis and retirement
benefits are paid to the participant on a fixed or variable basis
or a combination of both. It is available for an employer-
sponsored plan and a salary-reduction plan that meets the
requirements of Section 403(b) of the Code (the plan).
IDS Life Accounts F, IZ, JZ, G, H, N, KZ, LZ and MZ
Sold by: IDS Life Insurance Company, IDS Tower 10, Minneapolis, MN
55440-0010 Telephone: 612-671-3131.
THIS PROSPECTUS CONTAINS THE INFORMATION ABOUT THE VARIABLE
ACCOUNTS THAT YOU SHOULD KNOW BEFORE INVESTING. Refer to "The
variable accounts" in this prospectus.
THE PROSPECTUS IS ACCOMPANIED OR PRECEDED BY THE RETIREMENT ANNUITY
MUTUAL FUND PROSPECTUS FOR IDS LIFE AGGRESSIVE GROWTH FUND, IDS
LIFE INTERNATIONAL EQUITY FUND, IDS LIFE CAPITAL RESOURCE FUND, IDS
LIFE MANAGED FUND, IDS LIFE SPECIAL INCOME FUND, IDS LIFE
MONEYSHARE FUND, IDS LIFE GROWTH DIMENSIONS FUND, IDS LIFE GLOBAL
YIELD FUND AND IDS LIFE INCOME ADVANTAGE FUND. PLEASE KEEP THESE
PROSPECTUSES FOR FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION, OR ANY STATE SECURITIES
COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
IDS LIFE IS NOT A FINANCIAL INSTITUTION AND THE SECURITIES IT
OFFERS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY ANY FINANCIAL INSTITUTION NOR ARE THEY INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR
ANY OTHER AGENCY.
A Statement of Additional Information (SAI) dated April 30, 1996
(incorporated by reference into this prospectus) has been filed
with the Securities and Exchange Commission (SEC), and is available
without charge by contacting IDS Life at the telephone number above
or by completing and sending the order form on the last page of
this prospectus. The table of contents of the SAI is on the last
page of this prospectus.
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Table of contents
Key Terms
The Employee Benefit Annuity in brief
Expense summary
Condensed financial information
Financial statements
Performance information
The variable accounts
The funds
Aggressive Growth Fund
International Equity Fund
Capital Resource Fund
Managed Fund
Special Income Fund
Moneyshare Fund
Growth Dimensions Fund
Global Yield Fund
Income Advantage Fund
The fixed account
Buying the contract and certificate
The retirement date
Beneficiary
How to make purchase payments
Certificate charges
Administrative charge
Mortality and expense risk fee
Surrender charge
Premium taxes
Valuing your investment
Number of units
Accumulation unit value
Net investment factor
Factors that affect variable account
accumulation units
Making the most of your certificate
Automated dollar-cost averaging
Transferring money between accounts
Transfer policies
How to request a transfer or a surrender
Surrendering a certificate
Surrender policies
Receiving payment when a participant
requests a surrender
TSA special surrender provisions
Changing ownership
Benefits in case of death
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The annuity payout period
Annuity payout plans
Death after annuity payouts begin
Taxes
Voting rights
Substitution
Distribution of the certificates
About IDS Life
Regular and special reports
Services
Table of contents of the Statement of
Additional Information
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Key terms
These terms can help you understand details about your annuity.
Annuity - A contract purchased from an insurance company that
offers tax-deferred growth of the investment until earnings are
withdrawn and that can be tailored to meet the specific needs of
the individual during retirement.
Accumulation unit - A measure of the value of each variable account
before annuity payouts begin.
Annuitant - The participant on whose life or life expectancy the
annuity payouts are based.
Annuity payouts - An amount paid at regular intervals under one of
several plans available to a participant and/or any other payee.
This amount may be paid on a variable or fixed basis or a
combination of both.
Annuity unit - A measure of the value of each variable account used
to calculate the annuity payouts a participant receives.
Beneficiary - The person designated to receive annuity benefits in
case of a participant's death. Each participant may name a
beneficiary in accordance with the applicable provisions of any
plan and the Code.
Certificate - The document delivered to each participant that
evidences the participant's coverage under the contract.
Certificate value - The total value of the certificate before any
applicable surrender charge and any administrative charge have been
deducted.
Certificate year - A period of 12 months, starting on the effective
date of the certificate and on each anniversary of the effective
date.
Close of business - When the New York Stock Exchange (NYSE) closes,
normally 3 p.m. Central time.
Code - Internal Revenue Code of 1986, as amended.
Contract owner (owner) - The person or party entitled to ownership
rights stated in the contract and in whose name the contract is
issued.
Fixed account - An account to which a participant may allocate
purchase payments. Amounts allocated to this account earn interest
at rates that are declared periodically by IDS Life.
IDS Life - In this prospectus, "we," "us," "our" and "IDS Life"
refer to IDS Life Insurance Company.
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Mutual funds (funds) - Nine IDS Life Retirement Annuity mutual
funds, each with a different investment objective. (See "The
funds.") Purchase payments can be allocated into variable accounts
investing in shares of any or all of these funds.
Participant - The person named in the certificate who is entitled
to exercise all rights and privileges of ownership under the
certificate, except as reserved by the owner. In this prospectus,
"you" and "your" refer to the participant.
Purchase payments - Payments made to IDS Life under the contract by
or on behalf of a participant.
Retirement date - The date when annuity payouts are scheduled to
begin. This date is first established when enrollment in the
certificates takes place, subject to the terms of the plan. It can
be changed in the future.
Surrender charge - A deferred sales charge that may be applied if a
participant surrenders the certificate before the retirement date.
Surrender value - The amount a participant is entitled to receive
if the certificate is surrendered. It is the certificate value
minus any applicable surrender charge and administrative charge.
Valuation date - Any normal business day, Monday through Friday,
that the NYSE is open. The value of each variable account is
calculated at the close of business on each valuation date.
Variable accounts - Nine separate accounts to which a participant
may allocate purchase payments; each invests in shares of one
mutual fund. (See "The variable accounts.") The value of your
investment in each variable account changes with the performance of
the particular fund.
The Employee Benefit Annuity in brief
Purpose: The Employee Benefit Annuity is designed to allow you to
build up funds for retirement. This is done by making one or more
investments (purchase payments) that may earn returns that increase
the value of your certificate. Beginning at a specified future
date (the retirement date), the contract and related certificate
provide you with lifetime or other forms of annuity payouts.
Ten-day free look: You may return a certificate to the financial
advisor or our Minneapolis office within 10 days after it is
delivered and receive a full refund of the certificate value. No
charges will be deducted. However, you bear the investment risk
from the time of purchase until return of the certificate; the
refund amount may be more or less than the payment made.
(Exception: If the law so requires, all of the purchase payment
will be refunded.)
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Accounts: You may allocate purchase payments among any or all of:
o nine variable accounts, each of which invests in mutual funds
with a particular investment objective. The value of each
variable account varies with the performance of the particular
fund. We cannot guarantee that the value at the retirement date
will equal or exceed the total of purchase payments allocated to
the variable accounts. (p.)
o one fixed account, which earns interest at rates that are
adjusted periodically by IDS Life. (p.)
Buying the contract and certificate: A financial advisor will help
the owner complete and submit an application for a contract and
help you complete and submit an enrollment form for the
certificate. Applications and enrollment forms are subject to
acceptance at our Minneapolis office. The maximum amount of
purchase payments is determined by any restrictions imposed by the
plan and the Code.
o Minimum purchase payment - ($1,000) unless you pay in
installments under a group billing arrangement such as a
payroll deduction.
o Minimum installment payment - $25 monthly or $300 annually.
o Maximum first-year payment(s) - $50,000 to $1,000,000 depending
on your age.
o Maximum payment for each subsequent year - $50,000. (p.)
Transfers: Subject to certain restrictions, you may redistribute
money among accounts without charge at any time until annuity
payouts begin and once per year among the variable accounts
thereafter. You may establish automated transfers among the fixed
and variable account(s). (p.)
Surrenders: You may surrender all or part of your certificate
value at any time before the retirement date subject to certain
restrictions imposed by the Code and the plan. Surrenders may be
subject to charges and tax penalties and may have other tax
consequences. (p.)
Changing ownership: Restrictions apply concerning change of
ownership of rights under a contract or certificate. (p.)
Benefits in case of death: If the participant dies before annuity
payouts begin, we will pay the beneficiary an amount at least equal
to the certificate value. (p.)
Annuity payouts: The certificate value of your investment can be
applied to an annuity payout plan that begins on the retirement
date. You may choose from a variety of plans to make sure that
payouts continue as long as they are needed. Payouts may be made
on a fixed or variable basis, or both. Total monthly payouts
include amounts from each variable account and the fixed account.
(p.)
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Taxes: Generally your certificate value grows tax deferred until
you surrender it or begin to receive payouts. (Under certain
circumstances, IRS penalty taxes may apply.) Even if you direct
payouts to someone else, you will still be taxed on the
distribution. (p.)
Certificate charges: Your certificate is subject to an annual
administrative charge of $30, a 1% mortality and expense risk
charge and an 8% declining surrender charge on purchase payments up
to 11 certificate years old, and any premium taxes that may be
imposed by state or local governments and deducted either from your
purchase payments or upon total withdrawal or when annuity payments
begin. (p.)
Expense summary
The purpose of this summary is to help the owner and participant
understand the various costs and expenses associated with the
contract and related certificates.
There is no sales charge when purchasing the contract or
certificate. All direct and indirect costs for the variable
accounts and underlying mutual funds are shown below. Some
expenses may vary as explained under "Certificate charges."
Direct charges. These are deducted directly from the certificate
value. They include:
Surrender charge: A surrender charge applies to surrenders within
the first 11 certificate years. The surrender charge is 8% of the
amount surrendered in the first through fourth certificate years,
and then declines by 1% per year from 7% in the fifth certificate
year to 1% in the 11th certificate year. The surrender charge is
further limited so that it will never exceed 8.5% of aggregate
purchase payments made to the certificate.
Annual administrative charge: $30.
Indirect charges. The variable account pays these expenses out of
its assets. They are reflected in the variable account's daily
accumulation unit value and are not charged directly to the
account. They include:
Mortality and expense risk fee: 1% per year, deducted from the
variable account as a percentage of the average daily net assets of
the underlying fund.
Operating expenses of underlying mutual funds: management fees and
other expenses deducted as a percentage of average net assets as
follows: *
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<TABLE>
<CAPTION>
Aggressive International Capital Special Growth Global Income
Growth Equity Resource Managed Income Moneyshare Dimensions Yield Advantage
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management fees .64% .86% .63% .62% .63% .54% .63% .84% .62%
Other expenses .04 .09 .04 .03 .04 .05 .05 .06 .05
Total** .68% .95% .67% .65% .67% .59% .68%# .90%# .67%#
</TABLE>
* Premium taxes imposed by some state and local governments are not
reflected in this table.
**Annualized operating expenses of underlying mutual funds at Dec.
31, 1995.
# This is a new fund, operating expenses are based on annualized
estimates of such expenses to be incurred in the current fiscal
year.
<TABLE>
<CAPTION>
Example:* As a participant, you would pay the following expenses on a $1,000 investment, assuming 5% annual return and surrender
at the end of each time period:
Aggressive International Capital Special Growth Global Income
Growth Equity Resource Managed Income Moneyshare Dimensions Yield Advantage
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 year $102.10 $104.64 $102.00 $101.81 $102.00 $101.25 $102.10 $104.17 $102.00
3 years 148.32 155.98 148.03 147.47 148.03 145.76 148.32 154.57 148.03
5 years 185.78 198.74 185.29 184.33 185.29 181.43 185.78 196.35 185.29
10 years 252.80 280.60 251.76 249.66 251.76 243.37 252.80 275.51 251.76
You would pay the following expenses on the same investment assuming no surrender or selection of an annuity payout plan at the end
of each time period:
Aggressive International Capital Special Growth Global Income
Growth Equity Resource Managed Income Moneyshare Dimensions Yield Advantage
1 year $19.67 $22.44 $19.57 $19.36 $19.57 $18.75 $19.67 $21.92 $19.57
3 years 60.82 69.18 60.51 59.88 60.51 58.02 60.82 67.64 60.51
5 years 104.50 118.54 103.98 102.93 103.98 99.78 104.50 115.65 103.98
10 years 225.83 254.35 224.76 222.62 224.76 216.16 225.83 249.13 224.76
</TABLE>
This example should not be considered a representation of past or
future expenses. Actual expenses may be more or less than those
shown.
* In this example, the $30 annual administrative charge is
approximated as a .239% charge based on our average certificate
size.
Condensed financial information
(unaudited)
The following tables give per-unit information about the financial
history of each variable account.
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<TABLE>
<CAPTION>
Years ended Dec. 31,
______________________________________________________________________________________
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
______________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Account F (investing in shares of Capital Resource Fund)
Accumulation unit value at
beginning of period.......... $4.94 $4.93 $4.82 $4.67 $3.22 $3.23 $2.57 $2.31 $2.07 $1.92
______________________________________________________________________________________________________________________
Accumulation unit value at
end of period................ $6.25 $4.94 $4.93 $4.82 $4.67 $3.22 $3.23 $2.57 $2.31 $2.07
______________________________________________________________________________________________________________________
Number of accumulation units
outstanding at end of period
(000 omitted)................ 641,903 576,724 488,632 402,977 309,984 242,767 204,645 186,639 180,907 148,626
______________________________________________________________________________________________________________________
Ratio of operating expense to
average net assets........... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
______________________________________________________________________________________________________________________
Account IZ1 (investing in shares of International Equity Fund)
Accumulation unit value at
beginning of period.......... $1.25 $1.29 $0.98 $1.00 - - - - - -
______________________________________________________________________________________________________________________
Accumulation unit value at
end of period................ $1.38 $1.25 $1.29 $0.98 - - - - - -
______________________________________________________________________________________________________________________
Number of accumulation units
outstanding at end of period
(000 omitted)................ 1,088,874 913,364 405,536 69,874 - - - - - -
______________________________________________________________________________________________________________________
Ratio of operating expense to
average net assets........... 1.00% 1.00% 1.00% 1.00% - - - - - -
______________________________________________________________________________________________________________________
Account JZ2 (investing in shares of Aggressive Growth Fund)
Accumulation unit value at
beginning of period.......... $1.12 $1.21 $1.08 $1.00 - - - - - -
______________________________________________________________________________________________________________________
Accumulation unit value at
end of period................ $1.46 $1.12 $1.21 $1.08 - - - - - -
______________________________________________________________________________________________________________________
Number of accumulation units
outstanding at end of period
(000 omitted)................ 1,007,976 780,423 347,336 115,574 - - - - - -
______________________________________________________________________________________________________________________
Ratio of operating expense to
average net assets........... 1.00% 1.00% 1.00% 1.00% - - - - - -
______________________________________________________________________________________________________________________
Account G (investing in shares of Special Income Fund)
Accumulation unit value at
beginning of period.......... $3.80 $3.99 $3.48 $3.21 $2.76 $2.67 $2.48 $2.27 $2.27 $1.93
______________________________________________________________________________________________________________________
Accumulation unit value at
end of period................ $4.59 $3.80 $3.99 $3.48 $3.21 $2.76 $2.67 $2.48 $2.27 $2.27
______________________________________________________________________________________________________________________
Number of accumulation units
outstanding at end of period
(000 omitted)................ 393,697 361,640 405,429 330,000 270,858 236,926 222,248 175,878 170,241 156,811
______________________________________________________________________________________________________________________
Ratio of operating expense to
average net assets........... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
______________________________________________________________________________________________________________________
Account H (investing in shares of Moneyshare Fund)
Accumulation unit value at
beginning of period.......... $2.18 $2.12 $2.09 $2.04 $1.95 $1.82 $1.69 $1.59 $1.51 $1.43
_______________________________________________________________________________________________________________________
Accumulation unit value at
end of period................ $2.27 $2.18 $2.12 $2.09 $2.04 $1.95 $1.82 $1.69 $1.59 $1.51
_______________________________________________________________________________________________________________________<PAGE>
PAGE 12
Number of accumulation units
outstanding at end of period
(000 omitted)................ 102,568 84,475 74,935 102,277 126,489 139,005 108,690 63,005 51,578 38,126
_______________________________________________________________________________________________________________________
Ratio of operating expense to
average net assets........... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
_______________________________________________________________________________________________________________________
Simple yield3 3.97% 4.12% -1.56% 1.67% 3.26% 6.25% 6.81% 7.30% 5.72% 4.14%
_______________________________________________________________________________________________________________________
Compound yield3 4.04% 4.21% -1.55% 1.69% 3.31% 6.44% 7.04% 7.57% 5.88% 4.22%
_______________________________________________________________________________________________________________________
Account N4 (investing in shares of Managed Fund)
Accumulation unit value at
beginning of period........... $2.09 $2.21 $1.98 $1.86 $1.45 $1.42 $1.14 $1.06 $1.01 $1.00
_______________________________________________________________________________________________________________________
Accumulation unit value at
end of period................ $2.56 $2.09 $2.21 $1.98 $1.86 $1.45 $1.42 $1.14 $1.06 $1.01
_______________________________________________________________________________________________________________________
Number of accumulation units
outstanding at end of period
(000 omitted)................1,212,021 1,127,834 910,254 650,797 496,554 400,961 331,315 325,918 321,395 101,678
_______________________________________________________________________________________________________________________
Ratio of operating expense to
average net assets........... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
_______________________________________________________________________________________________________________________
1Account IZ commenced operations on Jan. 13, 1992.
2Account JZ commenced operations on Jan. 13, 1992.
3Net of annual contract administrative charge and mortality and expense risk fee.
4Account N commenced operations on April 30, 1986.
</TABLE>
Financial statements
The SAI dated April 30, 1996, contains:
o complete audited financial statements of variable accounts
F, IZ, JZ, G, H and N* including:
- statements of net assets as of Dec. 31, 1995;
- statements of operations for the year ended Dec. 31, 1995;
and
- statements of changes in net assets for the years ended
Dec. 31, 1995 and Dec. 31, 1994.
o complete audited financial statements for IDS Life including:
- consolidated balance sheets as of Dec. 31, 1995 and Dec. 31,
1994; and
- related consolidated statements of income, stockholder's
equity and cash flows for each of the three years in the
period ended Dec. 31, 1995.
* No financial statements are provided for variable accounts KZ,
LZ and MZ. These accounts began operations on April 30, 1996
and therefore did not have any assets as of Dec. 31, 1995.
Performance information
Performance information for the variable accounts may appear from
time to time in advertisements or sales literature. In all cases,
such information reflects the performance of a hypothetical
investment in a particular account during a particular time period.
Calculations are performed as follows:<PAGE>
PAGE 13
Simple yield - Account H (investing in Moneyshare Fund): Income
over a given seven-day period (not counting any change in the
capital value of the investment) is annualized (multiplied by 52)
by assuming that the same income is received for 52 weeks. This
annual income is then stated as an annual percentage return on the
investment.
Compound yield - Account H: Calculated like simple yield, except
that, when annualized, the income is assumed to be reinvested.
Compounding of reinvested returns increases the yield as compared
to a simple yield.
Yield - For accounts investing in income funds: Net investment
income (income less expenses) per accumulation unit during a given
30-day period is divided by the value of the unit on the last day
of the period. The result is converted to an annual percentage.
Average annual total return: Expressed as an average annual
compounded rate of return of a hypothetical investment over a
period of one, five and 10 years (or up to the life of the account
if it is less than 10 years old). This figure reflects deduction
of all applicable charges, including the administrative charge,
mortality and expense risk fee and surrender charge, assuming a
surrender at the end of the illustrated period. Optional total
return quotations may be made that do not reflect a surrender
charge deduction (assuming no surrender).
Aggregate total return: Represents the cumulative change in the
value of an investment over a specified period of time (reflecting
change in an account's accumulation unit value). The calculation
assumes reinvestment of investment earnings and reflects the
deduction of all applicable charges, including the contract
administrative charge, mortality and expense risk fee and surrender
charge, assuming a surrender at the end of the illustrated period.
Optional total return quotations may be made that do not reflect a
surrender charge deduction (assuming no surrender). Aggregate
total return may be shown by means of schedules, charts or graphs.
Performance information should be considered in light of the
investment objectives and policies, characteristics and quality of
the fund in which the account invests and the market conditions
during the given time period. Such information is not intended to
indicate future performance. Because advertised yields and total
return figures include all charges attributable to the
certificates, which has the effect of decreasing advertised
performance, account performance should not be compared to that of
mutual funds that sell their shares directly to the public. (See
the SAI for a further description of methods used to determine
yield and total return for the accounts.)
If you would like additional information about actual performance,
contact your financial advisor.
The variable accounts
Purchase payments can be allocated to any or all of the variable
accounts that invest in shares of the following funds:<PAGE>
PAGE 14
IDS Life Account Established
Aggressive Growth Fund JZ Sept. 20, 1991
International Equity Fund IZ Sept. 20, 1991
Capital Resource Fund F May 13, 1981
Managed Fund N April 12, 1985
Special Income Fund G May 13, 1981
Moneyshare Fund H May 13, 1981
Growth Dimensions Fund MZ April 2, 1996
Global Yield Fund KZ April 2, 1996
Income Advantage Fund LZ April 2, 1996
Each variable account meets the definition of a separate account
under federal securities laws. Income, capital gains and capital
losses of each account are credited or charged to that account
alone. No variable account will be charged with liabilities of any
other account or of our general business. Each variable account's
net assets are held in relation to the contracts described in this
prospectus as well as other variable annuity contracts that we
issue that are not described in this prospectus. All obligations
arising under the contracts are general obligations of IDS Life.
All variable accounts were established under Minnesota law and are
registered together as a single unit investment trust under the
Investment Company Act of 1940 (the 1940 Act). This registration
does not involve any supervision of our management or investment
practices and policies by the SEC.
The funds
Aggressive Growth Fund
Objective: capital appreciation. Invests primarily in common stock
of small- and medium-size companies. The fund also may invest in
warrants or debt securities or in large well-established companies
when the portfolio manager believes such investments offer the best
opportunity for capital appreciation.
International Equity Fund
Objective: capital appreciation. Invests primarily in common stock
of foreign issuers and foreign securities convertible into common
stock. The fund also may invest in certain international bonds if
the portfolio manager believes they have a greater potential for
capital appreciation than equities.
Capital Resource Fund
Objective: capital appreciation. Invests primarily in U.S. common
stocks and other securities convertible into common stock,
diversified over many different companies in a variety of
industries.
Managed Fund
Objective: maximum total investment return. Invests primarily in
U.S. common stocks, securities convertible into common stock,
warrants, fixed income securities (primarily high-quality corporate
bonds) and money-market instruments. The fund invests in many
different companies in a variety of industries.<PAGE>
PAGE 15
Special Income Fund
Objective: to provide a high level of current income while
conserving the value of the investment for the longest time
period.Invests primarily in high-quality, lower-risk corporate
bonds issued by many different companies in a variety of industries
and in government bonds.
Moneyshare Fund
Objective: maximum current income consistent with liquidity and
conservation of capital. Invests in high-quality money market
securities with remaining maturities of 13 months or less. The
fund also will maintain a dollar-weighted average portfolio
maturity not exceeding 90 days. The fund attempts to maintain a
constant net asset value of $1 per share.
Growth Dimensions Fund
Objective: long-term growth of capital. Invests primarily in
common stocks of U.S. and foreign companies showing potential for
significant growth.
Global Yield Fund
Objective: high total return through income and growth of capital.
Invests primarily in a non-diversified portfolio of debt securities
of U.S. and foreign issuers.
Income Advantage Fund
Objective: high current income, with capital growth as a secondary
objective. Invests in long-term, high-yielding, high-risk debt
securities below investment grade issued by U.S. and foreign
corporations.
The Internal Revenue Service (IRS) has issued final regulations
relating to the diversification requirements under Section 817(h)
of the Code. Each mutual fund intends to comply with these
requirements.
The U.S. Treasury and the IRS have indicated they may provide
additional guidance concerning how many variable accounts may be
offered and how many exchanges among variable accounts may be
allowed before the participant is considered to have investment
control and thus is currently taxed on income earned within
variable account assets. We do not know at this time what
the additional guidance will be or when action will be taken. We
reserve the right to modify the contract/certificate, as necessary,
to ensure that the participant will not be subject to current
taxation as the owner of the variable account assets.
We intend to comply with all federal tax laws to ensure that the
contract/certificate continues to qualify as an annuity for federal
income tax purposes. We reserve the right to modify the
contract/certificate as necessary to comply with any new tax laws.
IDS Life is the investment advisor for each of the funds. IDS Life
cannot guarantee that the funds will meet their investment
objectives. Please read the Retirement Annuity Mutual Fund
prospectus for complete information on investment risks,
deductions, expenses and other facts you should know before
investing. It is available by contacting IDS Life at the address<PAGE>
PAGE 16
or telephone number on the front of this prospectus, or from your
financial advisor.
The fixed account
Purchase payments can also be allocated to the fixed account. The
cash value of the fixed account increases as interest is credited
to the account. Purchase payments and transfers to the fixed
account become part of the general account of IDS Life, the
company's main portfolio of investments. Interest is credited
daily and compounded annually. We may change the interest rates
from time to time.
Because of exemptive and exclusionary provisions, interests in the
fixed account have not been registered under the Securities Act of
1933 (1933 Act), nor is the fixed account registered as an
investment company under the 1940 Act. Accordingly, neither the
fixed account nor any interests in it are generally subject to the
provisions of the 1933 or 1940 Acts, and we have been advised that
the staff of the SEC has not reviewed the disclosures in this
prospectus that relate to the fixed account. Disclosures regarding
the fixed account, however, may be subject to certain generally
applicable provisions of the federal securities laws relating to
the accuracy and completeness of statements made in prospectuses.
Buying the contract and certificate
A financial advisor will help the owner prepare and submit an
application. The financial advisor will also help each participant
prepare and submit an enrollment form. These forms will be sent to
our Minneapolis office. Unless otherwise provided in the contract,
the owner has all rights under the contract. Your interest under
the contract, as evidenced by your certificate, is subject to the
terms of the owner's contract and the plan.
When you enroll in the certificate, you can select:
o the account(s) in which you want to invest;
o the date you want to start receiving annuity payouts (the
retirement date); and
o a beneficiary.
The owner selects the frequency with which it will make purchase
payments.
If the application and enrollment forms are complete, we will
process them within two days after we receive them. If the
application is accepted, we will send the owner a contract. If
your enrollment form is accepted, we will send you a certificate.
If we cannot accept an application or enrollment form within five
days, we will decline it and return any payment. We will credit
additional purchase payments to the account(s) at the next close of
business.
The retirement date
Upon processing your application we will establish the retirement
date to the maximum age or date as specified below. You can also<PAGE>
PAGE 17
select a date within the maximum limits. This date can be aligned
with your actual retirement from a job, or it can be a different
future date, depending on your needs and goals and on certain
restrictions. You can also change the date, provided you send us
written instructions at least 30 days before annuity payouts begin.
To avoid IRS penalty taxes, the retirement date generally must be:
o on or after you reach age 59 1/2; and
o by April 1 of the year following the calendar year when you
reach age 70 1/2.
If you are taking the minimum 403(b) plan distributions as required
by the Code from another tax-qualified investment, or in the form
of partial surrenders under the certificate, retirement payments
can start as late as your 85th birthday or the 10th contract
anniversary.
Certain restrictions on retirement dates apply to participants in
the Texas Optional Retirement Program, should the Employee Benefit
Annuity be available in the program. (See "Special surrender
provisions.")
Beneficiary
If death benefits become payable before the retirement date, your
named beneficiary will receive all or part of the certificate
value. If there is no named beneficiary, then your estate will be
the beneficiary. (See "Benefits in case of death" for more about
beneficiaries.)
Minimum purchase payments
$25 monthly
Installments must total at least $300 per year.*
*If no purchase payments have been made on a participant's behalf
for 24 months and previous payments total $600 or less, we have the
right to pay the participant the total value of the certificate in
a lump sum. This right does not apply to contracts sold to New
Jersey residents.
Minimum lump sum purchase payment
Initial payment: $1,000
Minimum additional purchase payment(s): $50
Maximum first - year payment(s):
This maximum is based on the participant's age on the effective
date of the certificate.
Up to age 75 $1 million
76 to 85 $500,000
86 to 90 $50,000
<PAGE>
PAGE 18
Maximum payment for each subsequent year: $50,000**
**These limits apply in total to all IDS Life annuities you own.
We reserve the right to increase maximum limits or reduce age
limits. The plan's limits on annual contribution also apply.
How to make purchase payments
By scheduled payment plan: A financial advisor can help the owner
set up an automatic salary reduction arrangement.
Certificate charges
Administrative charge
This fee is for establishing and maintaining records for each
certificate under the contract. We deduct $30 from the certificate
value at the end of each certificate year.
If a participant surrenders a certificate, the annual charge will
be deducted at the time of surrender. The annual charge cannot be
increased and does not apply after annuity payouts begin.
Mortality and expense risk fee
This fee is to cover the mortality risk and expense risk and is
applied daily to the variable accounts and reflected in the unit
values of the accounts. The variable accounts pay this fee at the
time that dividends are distributed from the funds in which they
invest. Annually, the fee totals 1% of the variable accounts'
average daily net assets. Approximately two-thirds of this amount
is for our assumption of mortality risk and one-third is for our
assumption of expense risk. This fee does not apply to the fixed
account.
Mortality risk arises because of our guarantee to pay a death
benefit and our guarantee to make annuity payouts according to the
terms of the contract and certificates, no matter how long a
specific annuitant lives and no matter how long the entire group of
IDS Life annuitants live.
Expense risk arises because the administrative charge cannot be
increased and may not cover our expenses. Any deficit would have
to be made up from our general assets.
We do not plan to profit from the administrative charge. However,
we do hope to profit from the mortality and expense risk fee. We
may use any profits realized from this fee for any proper corporate
purpose, including, among others, payment of distribution (selling)
expenses. We do not expect that the surrender charge, discussed in
the following paragraphs, will cover sales and distribution
expenses.<PAGE>
PAGE 19
Surrender charge
If part or all of a certificate is surrendered within the first 11
certificate years, the following surrender charge applies:
______________________________________________________________
Surrender Charge as
Percent of
Certificate Year Amount Surrendered
1 8%
2 8
3 8
4 8
5 7
6 6
7 5
8 4
9 3
10 2
11 1
12 and later 0
The surrender charge is further limited so that it will never
exceed 8.5% of aggregate purchase payments made to the certificate.
IDS Life reserves the right to reduce or eliminate the surrender
charge.
In the case of a partial surrender, the surrender charge is
deducted from the certificate value remaining after you are paid
the partial surrender amount requested. For example, if you
requested a partial surrender net check amount of $1,000 and the
surrender charge rate was 5%, you would receive the $1,000
requested and the surrender charge amount would be $52.63 for a
total withdrawal from the certificate of $1,052.63.
No surrender charge: There is no surrender charge on amounts
surrendered:
o after the 11th certificate year;
o due to a participant's retirement under the plan on or after age
55;
o due to the death of the participant; or
o upon settlement of the certificate under an annuity payout plan
Possible group reductions: In some cases lower sales and
administrative expenses may be incurred due to the size of the
group, the average contribution and the use of group enrollment
procedures. In such cases, we may be able to reduce or eliminate
the administrative and surrender charges. However, we expect this
to occur infrequently.
Premium taxes
Certain state and local governments may impose premium taxes. A
charge may be made by us against the certificate value for any
state premium taxes to the extent the taxes are payable.
Valuing your investment
Here is how your accounts are valued:<PAGE>
PAGE 20
Fixed account: The amounts allocated to the fixed account are
valued directly in dollars and equal the sum of your purchase
payments, plus interest earned, less any amounts surrendered or
transferred (including administrative charge).
Variable accounts: Amounts allocated to the variable accounts are
converted into accumulation units. Each time you make a purchase
payment or transfer amounts into one of the variable accounts, a
certain number of accumulation units are credited to your
certificate for that account. Conversely, each time you take a
partial surrender, transfer amounts out of a variable account or
are assessed an administrative charge, a certain number of
accumulation units are subtracted from your certificate.
The accumulation units are the true measure of investment value in
each account during the accumulation period. They are related to,
but not the same as, the net asset value of the underlying fund.
The dollar value of each accumulation unit can rise or fall daily
depending on the performance of the underlying mutual fund and on
certain fund expenses. Here is how unit values are calculated:
Number of units
To calculate the number of accumulation units for a particular
account, we divide the investment, after deduction of any premium
taxes, by the current accumulation unit value.
Accumulation unit value
The current accumulation unit value for each variable account
equals the last value times the account's current net investment
factor.
Net investment factor
o Determined each business day by adding the underlying mutual
fund's current net asset value per share, plus per share amount
of any current dividend or capital gain distribution; then
o dividing that sum by the previous net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
Because the net asset value of the underlying mutual fund may
fluctuate, the accumulation unit value may increase or decrease.
The owner bears this investment risk in a variable account.
Factors that affect variable account accumulation units
Accumulation units may change in two ways; in number and in value.
Here are the factors that influence those changes:
The number of accumulation units owned may fluctuate due to:
o additional purchase payments allocated to the variable
account(s);
o transfers into or out of the variable account(s);
o partial surrenders;
o surrender charges; and/or
o administrative charges.<PAGE>
PAGE 21
Accumulation unit values may fluctuate due to:
o changes in underlying mutual fund(s) net asset value;
o dividends distributed to the variable account(s);
o capital gains or losses of underlying mutual funds;
o mutual fund operating expenses; and/or
o mortality and expense risk fees.
Making the most of your certificate
Automated dollar-cost averaging
You can use automated transfers to take advantage of dollar-cost
averaging (investing a fixed amount at regular intervals). For
example, you might have a set amount transferred monthly from a
relatively conservative variable account to a more aggressive one
or to several others.
This systematic approach can help you benefit from fluctuations in
accumulation unit values caused by fluctuations in the market
value(s) of the underlying mutual fund(s). Since you invest the
same amount each period, you automatically acquire more units when
the market value falls, fewer units when it rises. The potential
effect is to lower the average cost per unit. For specific
features contact your financial advisor.
How dollar-cost averaging works
Amount Accumulation Number of units
Month invested unit value purchased
Jan $100 $20 5.00
Feb 100 18 5.56
March 100 17 5.88
April 100 15 6.67
May 100 16 6.25
June 100 18 5.56
July 100 17 5.88
Aug 100 19 5.26
Sept 100 21 4.76
Oct 100 20 5.00
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more units
when the per unit market price is low...
(arrow in table pointing to September) and fewer units when the per
unit market price is high.
You have paid an average price of only $17.91 per unit over the 10
months, while the average market price actually was $18.10.
Dollar-cost averaging does not guarantee that any variable account
will gain in value, nor will it protect against a decline in value
if market prices fall. However, if you can continue to invest
regularly throughout changing market conditions, it can be an
effective strategy to help meet your long term goals.<PAGE>
PAGE 22
Transferring money between accounts
You may transfer money from any one account, including the fixed
account, to another before the annuity payouts begin. If we
receive your request before the close of business, we will process
it that day. Requests received after the close of business will be
processed the next business day. There is no charge for transfers.
Before making a transfer, you should consider the risks involved in
switching investments.
We may suspend or modify transfer privileges at any time. Certain
restrictions apply to transfers involving the fixed account. In
addition, any restriction imposed by the plan will apply.
Transfer policies
o Subject to any restrictions imposed by the plan, you may
transfer certificate values between the variable accounts, or
from the variable account(s) to the fixed account at any time.
However, if a transfer has been made from the fixed account to
the variable account(s), you may not make a transfer (including
automated transfers) from any variable account back to the fixed
account until the next eligible transfer period as defined in
the plan, if any, or otherwise until the next certificate
anniversary.
o You may transfer certificate values from the fixed account to
the variable account(s) once per certificate year, (except for
automated transfers, which can be set up for transfer periods of
your choosing subject to certain minimums).
o Once annuity payouts begin, no transfers may be made to or from
the fixed account, but transfers may be made once per contract
year among the variable accounts.
How to request a transfer or a surrender
1 By letter
Send your name, account number, Social Security Number or Taxpayer
Identification Number and signed request for a transfer or
surrender to:
Regular mail:
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440-0010
Express mail:
IDS Life Insurance Company
733 Marquette Avenue
Minneapolis, MN 55402
Minimum amount
Mail transfers: $250 or entire account balance
Mail surrenders: $250 or entire account balance
Maximum amount<PAGE>
PAGE 23
Mail transfers: None (up to certificate value)
Mail surrenders: None (up to certificate value)
2 By phone
For salary reduction plans only.
Call between 7 a.m. and 6 p.m. Central time:
1-800-437-0602 (toll free) or
(612) 671-4738 (Minneapolis/St. Paul area)
TTY service for the hearing impaired:
1-800-285-8846 (toll free)
Minimum amount
Phone transfers: $250 or entire account balance
Phone surrenders: $250 or entire account balance
Maximum amount
Phone transfers: None (up to certificate value)
Phone surrenders: $50,000
We answer phone requests promptly, but you may experience delays
when the call volume is unusually high. If unable to get through,
you can use the mail procedure as an alternative.
We will honor any telephone transfer or surrender request believed
to be authentic and will use reasonable procedures to confirm that
they are. This includes asking identifying questions and tape
recording calls. A telephone surrender will not be allowed within
30 days of a phoned-in address change. As long as these procedures
are followed, neither IDS Life nor its affiliates will be liable
for any loss resulting from fraudulent requests.
Telephone transfers or surrenders are automatically available. You
may request that telephone transfers or surrenders not be
authorized from your account by writing IDS Life.
3 By automated transfers
Your financial advisor can help you set up automated transfers
among your accounts.
You can start or stop this service by written request or other
method acceptable to IDS Life. You must allow 30 days for IDS Life
to change any instructions that are currently in place.
o Automated transfers from the fixed to variable account(s) may
not exceed an amount that, if continued, would deplete the fixed
account within 12 months.
o Automated transfers are subject to all of the contract
provisions and terms, including transfer of certificate values
between accounts.
Minimum amount<PAGE>
PAGE 24
Automated transfers: $50
Maximum amount
Automated transfers: None (except for automated transfers
from the fixed account)
Surrendering a certificate
Subject to certain restrictions imposed by the Code and any
restrictions imposed by the plan, you may surrender all or part of
your certificate at any time before annuity payouts begin by
sending a written request or calling us. For total surrenders we
will compute the value of the certificate at the close of business
after we receive the request. We may ask you to return the
certificate. You may have to pay surrender charges (see "Surrender
charge") and IRS taxes and penalties (see "Taxes"). No surrenders
may be made after annuity payouts begin.
Surrender policies
If you have a balance in more than one account and request a
partial surrender, we will withdraw money from all of your accounts
in the same proportion as your value in each account correlates to
the total certificate value, unless requested otherwise.
Receiving payment when a participant requests a surrender
By regular or express mail:
o Payable to participant;
o Mailed to address of record.
By wire:
o Request that payment be wired to your bank;
o Bank account must be in the same ownership as your contract;
o Pre-authorization required. For instructions, contact your
financial advisor.
Payment normally will be sent within seven days after receiving the
request. However, we may postpone the payment if:
-the surrender amount includes a purchase payment check that
has not cleared;
-the NYSE is closed, except for normal holiday and weekend
closings;
-trading on the NYSE is restricted, according to SEC rules;
-an emergency, as defined by SEC rules, makes it impractical
to sell securities or value the net assets of the accounts; or
-the SEC permits us to delay payment for the protection of
security holders.
TSA special surrender provisions
The Code imposes certain restrictions on a participant's right to
receive early distributions attributable to salary reduction<PAGE>
PAGE 25
contributions from a Tax Sheltered Annuity (TSA):
o Distributions attributable to salary reduction contributions
made after Dec. 31, 1988, plus the earnings on them, or to
transfers or rollovers of such amounts from other contracts, may
be made from the TSA only if:
-the participant has attained age 59-1/2;
-the participant has become disabled as defined in the Code;
-the participant has separated from the service of the
employer who purchased the contract; or
-the distribution is made to the participant's beneficiary
because of death.
o If you should encounter a financial hardship (within the meaning
of the Code), you may receive a distribution of all certificate
values attributable to salary reduction contributions made after
Dec. 31, 1988, but not the earnings on them.
o Even though a distribution may be permitted under the above
rules, it still may be subject to IRS taxes and penalties. (See
"Taxes.")
o The above restrictions on the right to receive a distribution do
not affect the availability of the amount transferred or rolled
over to the certificate as of Dec. 31, 1988. The restrictions
do not apply to transfers or exchanges of certificate values
within the annuity, or to another registered variable annuity
contract or investment vehicle available through the employer.
o If the contract/certificate has a loan provision, the right to
receive a loan from your fixed account continues to exist and is
described in detail in your contract/certificate and is subject
to the contract/certificate and plan.
o For certain types of contributions under a TSA contract to be
excluded from taxable income, the employer must comply with
certain nondiscrimination requirements.
Participation in the Texas Optional Retirement Program: Should the
Employee Benefit Annuity be available in this program, participants
cannot receive any distribution before retirement unless they
become totally disabled or end their employment at a Texas college
or university. This restriction affects a participant's right to:
o surrender all or part of the certificate at any time; and
o move up the retirement date.
If a participant is in the program for only one year, the portion
of the purchase payments made by the state of Texas will be
refunded to the state with no surrender charge. These restrictions
are based on an opinion of the Texas Attorney General interpreting
Texas law.
Changing ownership
The contract and related certificates cannot be sold, assigned,
transferred, discounted or pledged as collateral for a loan or as
security for the performance of an obligation or for any other<PAGE>
PAGE 26
purpose to any person other than IDS Life. Your vested rights
under the certificate are nonforfeitable.
Benefits in case of death
If you die before annuity payouts begin, we will pay your
beneficiary as follows:
If death occurs before your 75th birthday, the beneficiary receives
the greater of:
o the certificate value; or
o purchase payments made to the certificate, minus any surrenders.
If death occurs on or after your 75th birthday, the beneficiary
receives the certificate value.
If your spouse is sole beneficiary and you die before the
retirement date, your spouse may keep the certificate in force. To
do this your spouse must, within 60 days after we receive proof of
death, give us written instructions to keep the certificate in
force. If you die before reaching age 70 1/2, your spouse may keep
the certificate in force until the date on which you would have
reached age 70 1/2 or any other date as permitted by the Code.
Payments: We will pay the beneficiary in a single sum unless you
have given us other written instructions, or the beneficiary may
receive payouts under any annuity payout plan available under this
contract if:
o the beneficiary asks us in writing within 60 days after we
receive proof of death;
o payouts begin no later than one year after death; and
o the payout period does not extend beyond the beneficiary's life
or life expectancy.
When paying the beneficiary, we will determine the certificate's
value at the next close of business after our death claim
requirements are fulfilled. Interest, if any, will be paid from
the date of death at a rate no less than required by law. We will
mail payment to the beneficiary within seven days after our death
claim requirements are fulfilled. (See "Taxes.")
The annuity payout period
As the participant, you have the right to decide how and to whom
annuity payouts will be made starting at the retirement date. You
may select one of the annuity payout plans outlined below or we
will mutually agree on other payout arrangements. The amount
available for payouts under the plan you select is the certificate
value on the retirement date. No surrender charges are deducted
under the payout plans listed below.
The contract and related certificates allow you to determine
whether payouts are to be made on a fixed or variable basis, or a
combination of fixed and variable. Amounts of fixed and variable
payouts depend on:
o the annuity payout plan you select;<PAGE>
PAGE 27
o your age;
o the annuity table in the contract and related certificates; and
o the amounts allocated to the account(s) at settlement on the
retirement date.
In addition, for variable payouts only, amounts depend on:
o the investment performance of the account(s) selected.
These payouts will vary from month to month because the
performance of the underlying mutual funds will fluctuate. (In
the case of fixed annuities, payouts remain the same from month
to month.)
For information with respect to transfers between accounts after
annuity payouts begin, see "Transfer policies."
Annuity payout plans
You may choose any one of these annuity payout plans by giving us
written instructions at least 30 days before certificate values are
to be used to purchase the payout plan.
o Plan A - Life annuity - no refund: Monthly payouts are made
until the annuitant's death. Payouts end with the last payout
before the annuitant's death; no further payouts will be made.
This means that if the annuitant dies after only one monthly payout
has been made, no more payouts will be made.
o Plan B - Life annuity with five, 10 or 15 years certain: Monthly
payouts are made for a guaranteed payout period of five, 10 or 15
years that the annuitant elects. This election will determine the
length of the payout period to the beneficiary if the annuitant
should die before the elected period has expired. The guaranteed
payout period is calculated from the retirement date. If the
annuitant outlives the elected guaranteed payout period, payouts
will continue until the annuitant's death.
o Plan C - Life annuity - installment refund: Monthly payouts are
made until the annuitant's death, with our guarantee that payouts
will continue for some period of time. Payouts will be made for at
least the number of months determined by dividing the amount
applied under this option by the first monthly payout, whether or
not the annuitant is living.
o Plan D - Joint and last survivor life annuity - no refund:
Monthly payouts are made to the annuitant and a joint annuitant
while both are living. If either annuitant dies, monthly payouts
continue at the full amount until the death of the surviving
annuitant. Payouts end with the death of the second annuitant.
o Plan E - Payouts for a specified period: Monthly payouts are
made for a specific payout period of 10 to 30 years chosen by the
annuitant. Payouts will be made only for the number of years
specified whether the annuitant is living or not. Depending on the
time period selected, it is foreseeable that an annuitant can
outlive the payout period selected. In addition, a 10% IRS penalty
tax could apply under this payout plan. (See "Taxes.")<PAGE>
PAGE 28
Restrictions on payout options: Because the certificate was
purchased under the plan, you must select a payout plan that
provides for payouts:
o over the life of the annuitant;
o over the joint lives of the annuitant and a designated
beneficiary;
o for a period not exceeding the life expectancy of the
annuitant; or
o for a period not exceeding the joint life expectancies
of the annuitant and a designated beneficiary.
If we do not receive instructions: You must give us written
instructions for the annuity payouts at least 30 days before your
retirement date. If you do not, we will make payouts under Plan B,
with 120 monthly payouts guaranteed, unless this option is contrary
to applicable provisions of the plan or the Code.
If monthly payouts would be less than $20: We will calculate the
amount of monthly payouts at the time the certificate value is used
to purchase a payout plan. If the calculations show that monthly
payouts would be less than $20, we have the right to pay the
certificate value to the participant in a lump sum.
Death after annuity payouts begin
If the annuitant dies after annuity payouts begin, any amount
payable to the beneficiary will be as provided in the annuity
payout plan in effect.
Taxes
Generally, under current law, any increase in your certificate
value is taxable when you receive a payout or surrender except to
the extent that contributions were made with after-tax dollars.
(See detailed discussion below.) Any portion of the annuity
payouts and any surrenders requested that represent ordinary income
are normally taxable. You will receive a 1099 tax information form
for any year in which a taxable distribution was made.
Annuity payouts: The entire payout generally will be includable as
ordinary income and subject to tax. If you or your employer
invested in the certificate with pre-tax dollars, such amounts are
not considered to be part of your investment in the certificate and
will be taxed when paid to you.
Surrenders: Generally, if you surrender part or all of the
certificate before annuity payouts begin, the surrender payment
will be taxed. You also may have to pay a 10% IRS penalty for
surrenders before reaching age 59 1/2. Other penalties may apply
if you surrender the certificate before the plan specifies that you
can receive payouts.
Death benefits to beneficiaries: The death benefit under an
annuity is not tax exempt. Any amount received by the beneficiary
that represents previously deferred earnings within the
certificate, is taxable as ordinary income to the beneficiary in
the year(s) he or she receives the payments.<PAGE>
PAGE 29
Penalties: If you receive amounts from the certificate before
reaching age 59 1/2, you may have to pay a 10% IRS penalty on the
amount includable in your ordinary income. However, this penalty
will not apply to any amount received by you or your beneficiary:
o because of your death;
o because you become disabled (as defined in the Code);
o if the distribution is part of a series of substantially equal
periodic payments, made at least annually, over your life or
life expectancy (or joint lives or life expectancies of you and
your designated beneficiary); or
o after you separate from service in the year you attain age 55.
Other penalties or exceptions may apply if you surrender your
certificate before your plan specifies that payments can be made.
Mandatory withholding: If you receive directly all or part of the
certificate value, mandatory 20% income tax withholding generally
will be imposed at the time the payment is made. Any withholding
that is done represents a prepayment of your tax due for the year
and you would take credit for such amounts on the annual tax return
you file. This mandatory withholding will not be imposed if:
o instead of receiving the distribution check, you elect to have
the distribution rolled over directly to an IRA or another
eligible plan;
o the payment is one in a series of substantially equal periodic
payments, made at least annually, over your life or life
expectancy (or the joint lives or life expectancies of you and
your designated beneficiary) or over a specified period of 10
years or more; or
o the payment is a minimum distribution required under the Code.
Payments made to a surviving spouse instead of being directly
rolled over to an IRA may also be subject to mandatory 20% income
tax withholding.
Elective withholding: If the distribution is not subject to
mandatory withholding as described above, you can elect not to have
any withholding occur. To do this you must provide us with a valid
Social Security Number or Taxpayer Identification Number.
If you do not make this election and if the payout is part of an
annuity payout plan, the amount of withholding generally is
computed using payroll tables. You can provide us with a statement
of how many exemptions to use in calculating the withholding. If
the distribution is any other type of payment (such as a partial or
full surrender), withholding is computed using 10% of the taxable
portion.
Some states also impose withholding requirements similar to the
federal withholding described above. If this should be the case,
any payment from which federal withholding is deducted may also
have state withholding deducted. The withholding requirements may
differ if payment is being made to a non-U.S. citizen or if the
payment is being delivered outside the United States.<PAGE>
PAGE 30
Important: Our discussion of federal tax laws is based upon our
understanding of these laws as they are currently interpreted.
Federal tax laws or current interpretations of them may change.
For this reason and because tax consequences are complex and highly
individual and cannot always be anticipated, you should consult a
tax advisor if you have any questions about taxation of the
contract and/or related certificates.
Tax qualification: The contract (and your certificate of
participation thereunder) is intended to qualify as an annuity for
Federal income tax purposes. To that end, the provisions of the
contract and your certificate are to be interpreted to ensure or
maintain such tax qualification, notwithstanding any other
provisions to the contrary. We reserve the right to amend the
contract and/or related certificates to reflect any clarifications
that may be needed or are appropriate to maintain such
qualification or to conform the contract and/or certificates to any
applicable changes in the tax qualification requirements. We will
send you a copy of any such amendment.
Voting rights
As owner or participant with investments in the variable account(s)
you may vote on important mutual fund policies until annuity
payouts begin. Once they begin, the person receiving them has
voting rights. We will vote fund shares according to the
instructions of the person with voting rights.
Before annuity payouts begin, the number of votes is determined by
applying the percentage interest in each variable account to the
total number of votes allowed to the account.
After annuity payouts begin, the number of votes is equal to:
o the reserve held in each account for the contract or
certificate, divided by
o the net asset value of one share of the applicable underlying
mutual fund.
As we make annuity payouts, the reserve for the annuity decreases;
therefore, the number of votes also will decrease.
We calculate votes separately for each account not more than 60
days before a shareholders' meeting. Notice of these meetings,
proxy materials and a statement of the number of votes to which the
voter is entitled, will be sent.
We will vote shares for which we have not received instructions in
the same proportion as the votes for which we have received
instructions. We also will vote the shares for which we have
voting rights in the same proportion as the votes for which we have
received instructions.<PAGE>
PAGE 31
Substitution
Shares of any of the underlying funds may not always be available
for purchase by the variable accounts, or we may decide that
further investment in any such fund's shares is no longer
appropriate in view of the purposes of the variable account. In
either event, shares of another registered open-end management
investment company may be substituted both for fund shares already
purchased by the variable account and for purchases to be made in
the future. In the event of any substitution pursuant to this
provision, we may make appropriate endorsement to the contract and
certificates to reflect the substitution.
We reserve the right to split or combine the value of accumulation
units. In effecting such change of unit values, strict equity will
be preserved and no change will have a material effect on the
benefits under the certificates or on any other provisions of the
contract and related certificates.
Distribution of the certificates
IDS Life, a registered broker/dealer, is the sole distributor of
the certificates. IDS Life pays total commissions of up to 7.0% of
the total purchase payments received on the certificates. A
portion of this total commission is paid to district managers and
field vice presidents of the selling representative.
About IDS Life
The Employee Benefit Annuity is issued by IDS Life, a wholly owned
subsidiary of American Express Financial Corporation, which itself
is a wholly owned subsidiary of the American Express Company, a
financial services company headquartered in New York City.
IDS Life is a stock life insurance company organized in 1957 under
the laws of the State of Minnesota and located at IDS Tower 10,
Minneapolis, MN 55440-0010. IDS Life conducts a conventional life
insurance business in the District of Columbia and all states
except New York.
American Express Financial Advisors Inc. offers mutual funds,
investment certificates and a broad range of financial management
services. IDS Life offers insurance and annuities.
American Express Financial Advisors Inc. serves individuals and
businesses through its nationwide network of more than 175 offices
and more than 7800 financial advisors.
Other subsidiaries provide investment management and related
services for pension, profit-sharing, employee savings and
endowment funds of businesses and institutions.<PAGE>
PAGE 32
Regular and special reports
Services
To help you track and evaluate the performance of your annuity, we
provide:
Quarterly statements showing the value of your investment.
Annual reports containing required information on the annuity and
its underlying investments.
A personalized annuity progress report detailing the cumulative
return since the certificate was purchased and the average annual
rate of return on the investments. This report, which is unique in
the industry, is available upon request from your financial
advisor.
<PAGE>
PAGE 33
Table of contents of the Statement of Additional Information
Performance information.......................3
Calculating annuity payouts...................6
Rating agencies...............................7
Principal underwriter.........................7
Independent auditors..........................8
Mortality and expense risk charge.............8
Prospectus....................................8
Financial statements -
IDS Life Accounts F, IZ, JZ, G, H and N...........9
IDS Life Insurance Company........................17
___________________________________________________________________
Please check the appropriate box to receive a copy of the Statement
of Additional Information for:
_____ IDS Life Employee Benefit Annuity
_____ IDS Life Retirement Annuity Mutual Funds
Please return this request to:
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440-0010
Your name _______________________________________________________
Address _________________________________________________________
City ______________________ State ______________ Zip ___________
<PAGE>
PAGE 34
STATEMENT OF ADDITIONAL INFORMATION
for
IDS LIFE EMPLOYEE BENEFIT ANNUITY
IDS LIFE ACCOUNTS F, IZ, JZ, G, H, N, KZ, LZ and MZ
April 30, 1996
IDS Life Accounts F, IZ, JZ, G, H, N, KZ, LZ and MZ are separate
accounts established and maintained by IDS Life Insurance Company
(IDS Life).
This Statement of Additional Information, dated April 30, 1996, is
not a prospectus. It should be read together with the Accounts'
prospectus, dated April 30, 1996, which may be obtained from your
financial advisor, or by writing or calling IDS Life at the address
or telephone number below.
IDS Life Insurance Company
P10/199
P.O. Box 74
Minneapolis, MN 55440-0074
612-671-3131
<PAGE>
PAGE 35
TABLE OF CONTENTS
Performance Information.......................................p. 3
Calculating Annuity Payouts...................................p. 6
Rating Agencies...............................................p. 7
Principal Underwriter.........................................p. 7
Independent Auditors..........................................p. 8
Mortality and Expense Risk Fee................................p. 8
Prospectus....................................................p. 8
Financial Statements
- IDS Life Accounts F, IZ, JZ, G, H and N..........p. 9
- IDS Life Insurance Company.......................p. 17
<PAGE>
PAGE 36
PERFORMANCE INFORMATION
Calculation of yield for Account H
IDS Life Account H, which invests in IDS Life Moneyshare
Fund, Inc., calculates an annualized simple yield and compound
yield based on a seven-day period.
The simple yield is calculated by determining the net change in the
value of a hypothetical account having the balance of one
accumulation unit at the beginning of the seven-day period. (The
net change does not include capital change, but does include a pro
rata share of the annual certificate charges, including the annual
administrative charge and the mortality and expense risk fee.) The
net change in the account value is divided by the value of the
account at the beginning of the period to obtain the return for the
period. That return is then multiplied by 365/7 to obtain an
annualized figure. The value of the hypothetical account includes
the amount of any declared dividends, the value of any shares
purchased with any dividend paid during the period and any
dividends declared for such shares. The variable account's
(account) yield does not include any realized or unrealized gains
or losses, nor does it include the effect of any applicable
surrender charge.
The account calculates its compound yield according to the
following formula:
Compound Yield = [(return for seven-day period +1)365/7 ] - 1
On Dec. 31, 1995, the account's annualized simple yield was 3.97%
and its compound yield was 4.04%.
The rate of return, or yield, on the account's accumulation unit
may fluctuate daily and does not provide a basis for determining
future yields. Investors must consider, when comparing an
investment in Account H with fixed annuities, that fixed annuities
often provide an agreed-to or guaranteed fixed yield for a stated
period of time, whereas the variable account's yield fluctuates.
In comparing the yield of Account H to a money market fund, you
should consider the different services that the annuity provides.
Calculation of yield for accounts investing in income funds
Quotations of yield will be based on all investment income earned
during a particular 30-day period, less expenses accrued during the
period (net investment income) and will be computed by dividing net
investment income per accumulation unit by the value of an
accumulation unit on the last day of the period, according to the
following formula:
YIELD = 2[(a-b + 1)6 - 1]
cd
<PAGE>
PAGE 37
where: a = dividends and investment income earned during the
period.
b = expenses accrued for the period (net of
reimbursements).
c = the average daily number of accumulation units
outstanding during the period that were entitled to
receive dividends.
d = the maximum offering price per accumulation unit on
the last day of the period.
Yield on the account is earned from the increase in the net asset
value of shares of the fund in which the account invests and from
dividends declared and paid by the fund, which are automatically
invested in shares of the fund.
On Dec. 31, 1995, the annualized yield for Account G was 8.45%.
Calculation of average annual total return
Quotations of average annual total return for an account will be
expressed in terms of the average annual compounded rate of return
of a hypothetical investment in the annuity contract over a period
of one, five and 10 years (or, if less, up to the life of the
Account), calculated according to the following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1,000.
T = average annual total return.
n = number of years.
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five,
or ten year (or other) period at the end of the
one, five, or ten year (or other) period (or
fractional portion thereof).
Account total return figures reflect the deduction of the
administrative charge and mortality and expense risk fee.
Performance figures will be shown with the deduction of the
applicable surrender charge; in addition, performance figures may
be shown without the deduction of a surrender charge. The
Securities and Exchange Commission requires that an assumption be
made that the contract owner surrenders the entire contract at the
end of the one, five and ten year periods (or, if less, up to the
life of the account) for which performance is required to be
calculated.
The following performance figures are calculated on the basis of
historical performance of the funds.
<PAGE>
PAGE 38
Average Annual Total Return For Period Ended: Dec. 31, 1995
<TABLE>
<CAPTION>
Average Annual Total Return with Surrender
Since
Account investing in: 1 Year 5 Year 10 Year Inception
<S> <C> <C> <C> <C>
IDS Life
Aggressive Growth Fund (1/92)* 23.28% - % - % 8.74%
Capital Resource Fund (10/81) 19.42 13.22 2.41 -
International Equity Fund (1/92) 3.32 - - 6.98
Managed Fund (4/86) 15.81 10.98 - 10.13
Moneyshare Fund (10/81) -2.68 1.76 4.58 -
Special Income Fund (10/81) 13.96 9.67 8.93 -
Average Annual Total Return without Surrender
Since
Account Investing in: 1 Year 5 Year 10 Year Inception
IDS Life
Aggressive Growth Fund (1/92) 30.28% - % - % 10.09%
Capital Resource Fund (10/81) 26.42 14.06 12.41 -
International Equity Fund (1/92) 10.32 - - 8.40
Managed Fund (4/86) 22.81 11.89 - 10.13
Moneyshare Fund (10/81) 4.32 3.03 4.58 -
Special Income Fund (10/81) 20.96 10.62 8.93 -
* inception dates of the funds are shown in parentheses
</TABLE>
Aggregate total return
Aggregate total return represents the cumulative change in the
value of an investment over a specified period of time (reflecting
change in an account's accumulation unit value) and is computed by
the following formula:
ERV - P
P
where: P = a hypothetical initial payment of $1,000.
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five, or
ten year (or other) period at the end of the one,
five, or ten year (or other) period (or fractional
portion thereof).
Performance of the accounts may be quoted or compared to rankings,
yields, or returns as published or prepared by independent rating
or statistical services or publishers or publications such as The
Bank Rate Monitor National Index, Barron's, Business Week,
Donoghue's Money Market Fund Report, Financial Services Week,
Financial Times, Financial World, Forbes, Fortune, Global Investor,
Institutional Investor, Investor's Daily, Kiplinger's Personal
Finance, Lipper Analytical Services, Money, Mutual Fund Forecaster,
Newsweek, The New York Times, Personal Investor, Stanger Report,
Sylvia Porter's Personal Finance, USA Today, U.S. News and World
Report, The Wall Street Journal and Wiesenberger Investment
Companies Service.
<PAGE>
PAGE 39
CALCULATING ANNUITY PAYOUTS
The Variable Account
The following calculations are done separately for each of the
variable accounts. The separate monthly payouts, added together,
make up your total variable annuity payout.
Initial Payout: To compute your first monthly payment, we:
o determine the dollar value of your certificate as of the
valuation date seven days before the retirement date and then
deduct any applicable premium tax.
o apply the result to the annuity table contained in the
certificate or another table at least as favorable. The annuity
table shows the amount of the first monthly payment for each $1,000
of value which depends on factors built into the table, as
described below.
Annuity Units: The value of your account is then converted to
annuity units. To compute the number credited to you, we divide
the first monthly payment by the annuity unit value (see below) on
the valuation date on (or next day preceding) the seventh calendar
day before the retirement date. The number of units in your
account is fixed. The value of the units fluctuate with the
performance of the underlying mutual fund.
Subsequent Payouts: To compute later payouts, we multiply:
o the annuity unit value on the valuation date on or immediately
preceding the seventh calendar day before the payout is due; by
o the fixed number of annuity units credited to you.
Annuity Table: The table shows the amount of the first monthly
payment for each $1,000 of certificate value according to the age
of the annuitant. (Where required by law, we will use a unisex
table of settlement rates.) The table assumes that the certificate
value is invested at the beginning of the annuity payout period and
earns a 5% rate of return, which is reinvested and helps to support
future payouts.
Substitution of 3.5% Table: If you ask us at least 30 days before
the retirement date, we will substitute an annuity table based on
an assumed 3.5% investment rate for the 5% table in the
certificate. The assumed investment rate affects both the amount
of the first payout and the extent to which subsequent payouts
increase or decrease. Using the 5% table results in a higher
initial payment, but later payouts will increase more slowly when
annuity unit values are rising and decrease more rapidly when they
are declining.
Annuity Unit Values: This value was originally set at $1 for each
variable account. To calculate later values we multiply the last
annuity value by the product of:
o the net investment factor; and
o the neutralizing factor. The purpose of the neutralizing factor
is to offset the effect of the assumed investment rate built into<PAGE>
PAGE 40
the annuity table. With an assumed investment rate of 5%, the
neutralizing factor is 0.999866 for a one day valuation period.
Net Investment Factor:
o Determined each business day by adding the underlying mutual
fund's current net asset value per share plus per share amount of
any current dividend or capital gain distribution; then
o dividing that sum by the previous net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
Because the net asset value of the underlying mutual fund may
fluctuate, the net investment factor may be greater or less than
one, and the accumulation unit value may increase or decrease. You
bear this investment risk in a variable account.
The Fixed Account
Your fixed annuity payout amounts are guaranteed. Once calculated,
your payout will remain the same and never change. To calculate
your annuity payouts we:
o take the value of your fixed account at the retirement date or
the date you have selected to begin receiving your annuity payouts;
then
o using an annuity table we apply the value according to the
annuity payout plan you select; and
o the annuity payout table we use will be the one in effect at the
time you choose to begin your annuity payouts. The table will be
equal to or greater than the table in your certificate.
RATING AGENCIES
The following chart reflects the ratings given to IDS Life by
independent rating agencies. These agencies evaluate the financial
soundness and claims-paying ability of insurance companies based on
a number of different factors. This information does not relate to
the management or performance of the variable accounts of the
annuity. This information relates only to the fixed account and
reflects IDS Life's ability to make annuity payouts and to pay
death benefits and other distributions from the annuity.
Rating agency Rating
A.M. Best A+
(Superior)
Duff & Phelps AAA
Moody's Aa2
PRINCIPAL UNDERWRITER
The principal underwriter for the accounts is IDS Life which offers
the variable annuities on a continuous basis.
<PAGE>
PAGE 41
Surrender charges received by IDS Life for 1995, 1994 and 1993,
aggregated $10,125,762, $6,969,493 and $4,408,562, respectively.
Commissions paid by IDS Life for 1995, 1994 and 1993, aggregated
$9,019,184, $17,331,801 and $16,783,495, respectively. The
surrender charges were applied toward payment of commissions.
INDEPENDENT AUDITORS
The financial statements of IDS Life Accounts F, IZ, JZ, G, H and N
including the statements of net assets as of December 31, 1995, and
the related statements of operations for the year then ended and
the related statements of changes in net assets for each of the two
years in the period then ended, and the consolidated financial
statements of IDS Life Insurance Company as of December 31, 1995
and for each of the three years in the period then ended, appearing
in this SAI, have been audited by Ernst & Young LLP, independent
auditors, as stated in their reports appearing herein.
MORTALITY AND EXPENSE RISK FEE
IDS Life has represented to the SEC that:
IDS Life has reviewed publicly available information regarding
products of other companies. Based upon this review, IDS Life has
concluded that the mortality and expense risk charge is within the
range of charges determined by industry practice. IDS Life will
maintain at its principal office, and make available on request of
the SEC or its staff, a memorandum setting forth in detail the
variable products analyzed and the methodology, and results of, its
comparative review.
IDS Life has concluded that there is a reasonable likelihood that
the proposed distribution financing arrangements made with respect
to the annuities will benefit the variable account and investors in
the annuities. The basis for such conclusion is set forth in a
memorandum which will be made available to the SEC or its staff on
request.
PROSPECTUS
The prospectus dated April 30, 1996, is hereby incorporated in this
Statement of Additional Information by reference.
<PAGE>
PAGE 42
<TABLE>
<CAPTION>
IDS Life Accounts F, IZ, JZ, G, H, and N
Statements of Net Assets Dec. 31, 1995
Combined
Segregated Asset Account Retirement
Assets F IZ JZ G H N Annuity
<S> <C> <C> <C> <C> <C> <C> <C>
Investments in shares of mutual funds, at market value:
IDS Life Capital
Resource Fund --155,470,401 shares at
net asset value of
$25.85 per share (cost
$3,467,573,173)........$4,019,058,632 $ -- $ -- $ -- $ -- $ -- $4,019,058,632
IDS Life International
Equity Fund --115,184,046 shares at
net asset value of
$13.05 per share (cost
$1,382,394,049......... -- 1,503,260,134 -- -- -- -- 1,503,260,134
IDS Life Aggressive
Growth Fund --98,393,517 shares at
net asset value of
$15.05 per share (cost
$1,143,073,296).......... -- -- 1,480,606,040 -- -- -- 1,480,606,040
IDS Life Special Income
Fund, Inc. -- 150,913,224
shares at net asset
value of $12.01 per share
(cost $1,708,811,884).. -- -- -- 1,812,995,082 -- -- 1,812,995,082
IDS Life Moneyshare
Fund, Inc. --233,459,434 shares at
net asset value of
$1.00 per share
(cost $233,440,300).... -- -- -- -- 233,440,269 -- 233,440,269
IDS Life Managed Fund,
Inc. -- 198,676,179
shares at net asset
value of $15.67 per
share (cost
$2,590,901,697)........ -- -- -- -- -- 3,113,869,585 3,113,869,585
4,019,058,632 1,503,260,134 1,480,606,040 1,812,995,082 233,440,269 3,113,869,585 12,163,229,742
Dividends receivable... -- -- -- 10,368,094 977,662 -- 11,345,756
Accounts receivable
from IDS Life for
contract purchase
payments............... 1,340,116 931,645 686,186 1,237,185 503,477 815,636 5,514,245
Receivable from mutual
funds for share
redemptions............ 7,401 1,719 95,088 1,273,552 1,196,269 940,794 3,514,823
Total assets........... 4,020,406,149 1,504,193,498 1,481,387,314 1,825,873,913 236,117,677 3,115,626,015 12,183,604,566
Liabilities
Payable to IDS Life for:
Mortality and expense
risk fee............... 3,179,987 1,186,800 1,165,660 1,430,389 186,534 2,463,352 9,612,722
Contract terminations.. 7,401 1,719 95,088 1,273,552 1,196,269 940,794 3,514,823
Payable to mutual funds
for investments
purchased.............. 1,340,116 931,645 686,186 10,174,918 1,294,605 815,636 15,243,106
Total liabilities...... 4,527,504 2,120,164 1,946,934 12,878,859 2,677,408 4,219,782 28,370,651
Net assets applicable to
contracts in
accumulation period.... 4,011,183,094 1,500,375,166 1,476,152,857 1,808,141,320 233,224,822 3,108,558,030 12,137,635,289
Net assets applicable
to contracts in payment
period (Note 5)........ 4,695,551 1,698,168 3,287,523 4,853,734 215,447 2,848,203 17,598,626
Total net assets.......$4,015,878,645 $1,502,073,334 $1,479,440,380 $1,812,995,054 $233,440,269 $3,111,406,233 $12,155,233,915
Accumulation units
outstanding............ 641,902,761 1,088,873,599 1,007,975,519 393,696,727 102,567,540 1,212,021,386
Net asset value per
accumulation unit......$ 6.25 $ 1.38 $ 1.46 $ 4.59 $ 2.27 $ 2.56
See accompanying notes to financial statements.
<PAGE>
PAGE 43
IDS Life Accounts F, IZ, JZ, G, H, and N
Statements of Operations Year ended Dec. 31, 1995
Combined
Segregated Asset Account Retirement
Investment income (loss): F IZ JZ G H N Annuity
Dividend income from
mutual funds............ $417,740,145 $29,744,100 $ 8,895,964 $123,999,760 $11,021,408 $ 75,726,294 $667,127,671
Mortality and expense
risk fee (Note 3)....... 35,435,819 12,932,868 12,167,426 15,658,147 2,058,873 28,070,691 106,323,824
Investment income
(loss) -- net........... 382,304,326 16,811,232 (3,271,462) 108,341,613 8,962,535 47,655,603 560,803,847
Realized and Unrealized Gain (Loss) on Investments -- net
Realized gain (loss)
on sales of investments
in mutual funds:
Proceeds from sales..... 15,542,422 14,776,607 13,318,686 22,599,066 91,438,589 14,749,886 172,425,256
Cost of investments
sold.................... 13,560,730 14,543,880 11,039,051 23,828,487 91,438,864 13,498,500 167,909,512
Net realized gain (loss)
on investments.......... 1,981,692 232,727 2,279,635 (1,229,421) (275) 1,251,386 4,515,744
Net change in unrealized
appreciation or
depreciation of
investments............. 416,704,333 119,413,997 312,088,997 188,951,733 (8) 512,608,047 1,549,767,099
Net gain (loss) on
investments............. 418,686,025 119,646,724 314,368,632 187,722,312 (283) 513,859,433 1,554,282,843
Net increase
from operations......... $800,990,351 $136,457,956 $311,097,170 $296,063,925 $ 8,962,252 $561,515,036 $2,115,086,690
See accompanying notes to financial statements.
<PAGE>
PAGE 44
Statements of Changes in Net Assets Year ended Dec. 31, 1995
Combined
Segregated Asset Account Retirement
Operations F IZ JZ G H N Annuity
Investment income (loss)
- -- net..................$ 382,304,326 $ 16,811,232 $ (3,271,462) $ 108,341,613 $ 8,962,535 $ 47,655,603 $ 560,803,847
Net realized gain (loss)
on investments.......... 1,981,692 232,727 2,279,635 (1,229,421) (275) 1,251,386 4,515,744
Net change in unrealized
appreciation or
depreciation of
investments............. 416,704,333 119,413,997 312,088,997 188,951,733 (8) 512,608,047 1,549,767,099
Net increase
from operations......... 800,990,351 136,457,956 311,097,170 296,063,925 8,962,252 561,515,036 2,115,086,690
Contract Transactions
Variable annuity
contract purchase
payments................ 322,088,024 166,423,047 160,903,570 211,623,765 124,651,412 238,185,358 1,223,875,176
Net transfers*.......... 225,750,236 115,024,536 178,588,839 24,885,088 (65,080,217) 103,698,960 582,867,442
Loan repayments......... 5,346,926 1,706,764 1,590,494 1,874,596 498,840 3,315,089 14,332,709
Annuity payments........ (305,244) (61,793) (110,594) (146,183) (12,430) (250,512) (886,756)
Contract charges
(Note 3)................ (4,315,769) (1,655,121) (1,462,175) (1,623,209) (193,070) (3,278,764) (12,528,108)
Contract terminations:
Surrender benefits...... (168,713,260) (54,092,983) (45,135,117) (81,995,494) (17,710,675) (128,865,985) (496,513,514)
Death benefits.......... (13,025,950) (4,773,415) (4,031,004) (11,829,653) (1,744,859) (15,779,578) (51,184,459)
Increase from
contract transactions... 366,824,963 222,571,035 290,344,013 142,788,910 40,409,001 197,024,568 1,259,962,490
Net assets at beginning
of year.................2,848,063,331 1,143,044,343 877,999,197 1,374,142,219 184,069,016 2,352,866,629 8,780,184,735
Net assets at end of
year...................$4,015,878,645 $1,502,073,334 $1,479,440,380 $1,812,995,054 $233,440,269 $3,111,406,233 $12,155,233,915
Accumulation Unit Activity
Units outstanding at
beginning of year...... 576,723,791 913,363,825 780,422,772 361,639,812 84,475,351 1,127,833,738
Contract purchase
payments............... 57,636,862 131,707,429 125,753,542 49,975,261 56,237,498 102,978,794
Net transfers*......... 40,143,198 90,463,426 139,820,238 4,867,638 (29,247,982) 44,116,848
Transfers for policy
loans.................. 947,593 1,338,975 1,217,057 446,825 221,952 1,420,549
Contract charges....... (777,408) (1,312,071) (1,134,381) (392,206) (88,252) (1,423,957)
Contract terminations:
Surrender benefits..... (30,273,815) (42,742,065) (34,796,218) (19,834,181) (8,256,611) (55,615,949)
Death benefits......... (2,497,460) (3,945,920) (3,307,491) (3,006,422) (774,416) (7,288,637)
Units outstanding at end
of year................ 641,902,761 1,088,873,599 1,007,975,519 393,696,727 102,567,540 1,212,021,386
*Includes transfer activity from (to) other Accounts and transfers (from) to IDS Life for conversion from (to) Fixed Account.
See accompanying notes to financial statements.
<PAGE>
PAGE 45
IDS Life Accounts F, IZ, JZ, G, H, and N
Statements of Changes in Net Assets Year ended Dec. 31, 1994
Combined
Segregated Asset Account Retirement
Operations F IZ JZ G H N Annuity
Investment income
(loss) -- net...........$ 292,316,457 $ 22,499,782 $ (5,155,789) $ 105,388,501 $ 4,706,400 $ 121,099,907 $ 540,855,258
Net realized gain (loss)
on investments.......... 85,711 31 16,969 (5,861,389) (176) 64,603 (5,694,251)
Net change in unrealized
appreciation or
depreciation of
investments............. (285,085,781) (59,427,638) (27,460,080) (180,870,854) (212) (245,132,378) (797,976,943)
Net increase (decrease)
from operations......... 7,316,387 (36,927,825) (32,598,900) (81,343,742) 4,706,012 (123,967,868) (262,815,936)
Contract Transactions
Variable annuity
contract purchase
payments................ 339,325,569 296,792,048 219,219,644 276,166,501 131,497,539 368,996,274 1,631,997,575
Net transfers*.......... 190,936,076 384,718,948 286,639,920 (373,201,534) (97,336,277) 180,480,671 572,237,804
Loan repayments......... 4,579,640 1,249,415 1,097,529 1,683,555 314,621 3,205,194 12,129,954
Annuity payments........ (152,217) (36,207) (65,026) (79,359) (16,218) (131,778) (480,805)
Contract charges
(Note 3)................ (3,854,998) (1,224,695) (940,741) (1,775,930) (191,660) (3,018,066) (11,006,090)
Contract terminations:
Surrender benefits...... (90,212,060) (20,356,976) (14,738,072) (54,837,796) (12,471,195) (69,087,185) (261,703,284)
Death benefits.......... (9,109,536) (2,664,292) (1,879,624) (11,703,499) (1,291,622) (11,436,756) (38,085,329)
Increase (decrease) from
contract transactions... 431,512,474 658,478,241 489,333,630 (163,748,062) 20,505,188 469,008,354 1,905,089,825
Net assets at beginning
of year.................2,409,234,470 521,493,927 421,264,467 1,619,234,023 158,857,816 2,007,826,143 7,137,910,846
Net assets at end of
year...................$2,848,063,331 $1,143,044,343 $877,999,197 $1,374,142,219 $184,069,016 $2,352,866,629 $8,780,184,735
Accumulation Unit Activity
Units outstanding at
beginning of year....... 488,632,295 405,535,877 347,336,270 405,428,501 74,934,517 910,254,254
Contract purchase
payments................ 69,409,978 230,140,233 194,182,234 70,904,101 61,497,139 172,372,885
Net transfers*.......... 39,022,621 296,391,908 254,597,323 (97,050,500) (45,409,236) 83,777,064
Transfers for policy
loans................... 935,113 962,061 977,880 437,024 142,245 1,498,112
Contract charges........ (793,830) (955,777) (846,781) (463,580) (91,899) (1,425,215)
Contract terminations:
Surrender benefits...... (18,521,414) (16,526,366) (14,010,347) (14,402,198) (5,966,351) (32,963,969)
Death benefits.......... (1,960,972) (2,184,111) (1,813,807) (3,213,536) (631,064) (5,679,393)
Units outstanding at end
of year................. 576,723,791 913,363,825 780,422,772 361,639,812 84,475,351 1,127,833,738
*Includes transfer activity from (to) other Accounts and transfers (from) to IDS Life for conversion from (to) Fixed Account.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 46
IDS Life Accounts F, IZ, JZ, G, H and N
Notes to Financial Statements
___________________________________________________________________
1. Organization
IDS Life Accounts F, G, H and N were established as segregated
asset accounts of IDS Life Insurance Company (IDS Life) under
Minnesota law and are registered collectively as a single unit
investment trust under the Investment Company Act of 1940.
Accounts F, G and H were established on May 13, 1981. Account N
was established on April 22, 1985 and commenced operations on April
30, 1986. Accounts IZ and JZ were established as segregated asset
accounts on Sept. 20, 1991 and commenced operations on Jan. 13,
1992. IDS Life Accounts F, IZ, JZ, G, H and N are collectively
referred to as "the Accounts."
The assets of the Accounts are held for the exclusive benefit of
the Retirement Annuity contract owners and are not chargeable with
liabilities arising out of the business conducted by any other
segregated asset accounts or by IDS Life. Contract owners allocate
their variable purchase payments to one or more of the six
segregated asset accounts. Such funds are then invested in shares
of six mutual funds organized by IDS Life as the investment
vehicles for variable annuity contracts issued by IDS Life and its
subsidiaries.
All of the IDS Life mutual funds, except IDS Life Managed Fund,
Inc., commenced operations Oct. 13, 1981. IDS Life Managed Fund,
Inc. commenced operations April 30, 1986. These mutual funds are
registered under the Investment Company Act of 1940 as diversified,
open-end management investment companies. Funds allocated to IDS
Life Account F are invested in the shares of IDS Life Capital
Resource Fund; IDS Life Account IZ invests in the shares of IDS
Life International Equity Fund; IDS Life Account JZ invests in the
shares of IDS Life Aggressive Growth Fund; IDS Life Account G
invests in the shares of IDS Life Special Income Fund, Inc.; IDS
Life Account H invests in the shares of IDS Life Moneyshare Fund,
Inc. and IDS Life Account N invests in the shares of IDS Life
Managed Fund, Inc.
IDS Life serves as manager, investment adviser and distributor for
the Accounts and the underlying six mutual funds.
___________________________________________________________________
2. Summary of Significant Accounting Policies
Investments in Mutual Funds
Investments in shares of the mutual funds are stated at market
value, which is the net asset value per share as determined by the
respective funds. Investment transactions are accounted for on the
date the shares are purchased and sold. The cost of investments
sold and redeemed is determined on the average cost method.
<PAGE>
PAGE 47
IDS Life Accounts F, IZ, JZ, G, H and N
Notes for Financial Statements (continued)
___________________________________________________________________
2. Summary of Significant Accounting Policies (continued)
Dividend distributions received from the mutual funds are
reinvested, net of any expenses payable to IDS Life, in additional
shares of the mutual funds and are recorded as income by the
Accounts on the ex-dividend date.
Unrealized appreciation or depreciation of investments in the
accompanying financial statements represents the Accounts' share of
the mutual funds' undistributed net investment income,
undistributed realized gain or loss and the unrealized appreciation
or depreciation on their investment securities.
Federal Income Taxes
IDS Life is taxed as a life insurance company. The Accounts are
treated as part of IDS Life for federal income tax purposes. Under
existing tax law, no income taxes are payable with respect to any
income of the Accounts.
___________________________________________________________________
3. Mortality and Expense Risk Fee and Contract Charges
IDS Life makes contractual assurances to the Accounts that possible
future adverse changes in administrative expenses and mortality
experience of the annuitants and beneficiaries will not affect the
Accounts. The mortality and expense risk fee paid to IDS Life is
computed daily and is equal, on an annual basis, to 1 percent of
the average daily net assets of the Accounts.
An annual charge of $20 is deducted from the contract value of each
Variable Retirement Annuity contract. An annual charge of $30 is
deducted from the contract value of each Combination Retirement
Annuity contract. An annual charge of $500 is deducted from the
contract value of each Group Variable Annuity contract. An annual
charge of $30 is deducted from the certificate value of each
Employee Benefit Annuity certificate. A quarterly charge of $6 is
deducted from the contract value of each Flexible Annuity contract.
The annual charges are deducted at contract year end and the
quarterly charges are deducted at contract quarter end, during the
accumulation period, for administrative services provided to the
Accounts by IDS Life.
A contingent deferred sales charge (surrender charge or withdrawal
charge) will be imposed upon:
a) certain Variable Retirement Annuity contract surrenders during
the first seven years,
b) Combination Retirement Annuity contract surrenders during the
first seven, eight or eleven years, depending on type of
contract,
c) Group Variable Annuity contract withdrawals during the first
seven years,
<PAGE>
PAGE 48
IDS Life Accounts F, IZ, JZ, G, H and N
Notes for Financial Statements (continued)
___________________________________________________________________
3. Mortality and Expense Risk Fee and Contract Charges (continued)
d) Employee Benefit Annuity certificate surrenders during the first
eleven years, and
e) Flexible Annuity contract surrenders of amounts other than those
representing earnings or those representing purchase payments
more than six years old.
Charges by IDS Life for surrenders are not available on an
individual segregated asset account basis. Charges for all
segregated asset accounts amounted to $10,125,762 in 1995 and
$6,969,493 in 1994. Such charges are not an expense of the
Accounts. They are deducted from contract surrender benefits paid
by IDS Life.
___________________________________________________________________
4. Investment Transactions
The Accounts' purchases of mutual fund shares (net of charges),
including reinvestment of dividend distributions, were as follows:
<TABLE>
<CAPTION>
Year Ended Dec. 31,
Account Investment 1995 1994
<S> <C> <C> <C>
F IDS Life Capital Resource Fund..................... $ 765,524,150 $ 724,607,219
IZ IDS Life International Equity Fund................. 254,418,892 681,492,412
JZ IDS Life Aggressive Growth Fund.................... 300,849,208 485,898,077
G IDS Life Special Income Fund, Inc.................. 273,349,783 168,109,635
H IDS Life Moneyshare Fund, Inc...................... 140,810,125 70,433,338
N IDS Life Managed Fund, Inc......................... 259,968,265 592,997,615
$1,994,920,423 $2,723,538,296
</TABLE>
___________________________________________________________________
5. Annuity Contracts in Payment Period
Net assets and annuity units relating to contracts in the payment
period as of Dec. 31, 1995, are as follows:
<TABLE>
<CAPTION>
F IZ JZ G H N
<S> <C> <C> <C> <C> <C> <C>
Net assets applicable to contracts
in payment period................... $4,695,551 $1,698,168 $3,287,523 $4,853,734 $215,447 $2,848,203
Annuity units in payment period..... 15,979 8,997 13,151 9,239 953 24,258
</TABLE>
<PAGE>
PAGE 49
Annual Financial Information
Report of Independent Auditors
The Board of Directors IDS Life Insurance Company
We have audited the accompanying individual and combined statements
of net assets of IDS Life Accounts F, IZ, JZ, G, H and N as of
December 31, 1995, and the related statements of operations for the
year then ended, and the statements of changes in net assets for
each of the two years in the period then ended. These financial
statements are the responsibility of the management of IDS Life
Insurance Company. Our responsibility is to express an opinion on
these financial statements 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. Our
procedures included confirmation of securities owned at December
31, 1995 with the affiliated mutual fund manager. 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 financial statements referred to above present
fairly, in all material respects, the individual and combined
financial position of IDS Life Accounts F, IZ, JZ, G, H and N at
December 31, 1995, and the individual and combined results of their
operations and changes in their net assets for the periods
described above, in conformity with generally accepted accounting
principles.
Ernst & Young LLP
Minneapolis, Minnesota
March 15, 1996
<PAGE>
PAGE 50
IDS Life Financial Information
The financial statements shown below are those of the insurance
company and not those of any other entity. They are included in
the prospectus for the purpose of informing investors as to the
financial condition of the insurance company and its ability to
carry out its obligations under its variable contracts.
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY
CONSOLIDATED BALANCE SHEETS
Dec. 31, Dec. 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
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 51
IDS LIFE INSURANCE COMPANY
CONSOLIDATED BALANCE SHEETS (continued)
Dec. 31, Dec. 31,
LIABILITIES AND STOCKHOLDER'S EQUITY 1995 1994
(thousands)
Liabilities:
Fixed annuities--future policy benefits $21,404,836 $19,361,979
Universal life-type insurance--future policy benefits 3,076,847 2,896,100
Traditional life insurance--future policy benefits 209,249 206,754
Disability income, health and long-term care
insurance--future policy benefits 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 to consolidated financial statements.
</TABLE>
<PAGE>
PAGE 52
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF INCOME
Years ended Dec. 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
Death and other benefits - Universal life-type
insurance and investment contracts 71,691 52,027 49,692
Death and other benefits - 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 to consolidated financial statements.
</TABLE>
<PAGE>
PAGE 53
<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 to consolidated financial statements.
</TABLE>
<PAGE>
PAGE 54
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended Dec. 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 issuances, excluding universal
life-type insurance: (46,011) (37,110) (35,886)
Policy loan repayments, excluding universal
life-type insurance 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 loss on investments 4,898 4,282 6,737
Premiums related to universal life--type insurance 465,631 409,035 397,883
Surrenders and death benefits related to
universal life--type insurance (306,600) (290,427) (255,133)
Interest credited to account balances related
to universal life--type insurance 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 55
IDS LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
Years ended Dec. 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
Policy loans issuances, universal
life-type insurance (84,700) (78,239) (70,304)
Policy loan repayments, universal
life-type insurance 52,188 50,554 46,148
Capital contribution from parent - - 200,000
Cash dividend to parent (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 to consolidated financial statements.
</TABLE>
<PAGE>
PAGE 56
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.
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
<PAGE>
PAGE 57
1. Summary of significant accounting policies (continued)
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.
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.
<PAGE>
PAGE 58
1. Summary of significant accounting policies (continued)
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 Dec. 31 is summarized as follows:
<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Cash paid during the year for:
Income taxes $191,011 $226,365 $188,204
Interest on borrowings 5,524 1,553 2,661
</TABLE>
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.
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.
<PAGE>
PAGE 59
1. Summary of significant accounting policies (continued)
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.
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.
<PAGE>
PAGE 60
1. Summary of significant accounting policies (continued)
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.
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 Dec. 31, 1995 is $13,415 payable
to American Express Financial Corporation for federal income taxes.
Included in other receivables at Dec. 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.
<PAGE>
PAGE 61
1. Summary of significant accounting policies (continued)
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.
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 Dec. 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 Dec. 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)<PAGE>
PAGE 62
2. Investments (continued)
The amortized cost, gross unrealized gains and losses and fair
values of investments in fixed maturities and equity securities at
Dec. 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
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
Dec. 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 Dec. 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.
<PAGE>
PAGE 63
2. Investments (continued)
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
During the year ended Dec. 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 Dec. 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 Dec. 31, 1995, bonds carried at $12,761 were on deposit with
various states as required by law.
Net investment income for the years ended Dec. 31 is summarized as
follows:
<PAGE>
PAGE 64
2. Investments (continued)
<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
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
</TABLE>
At Dec. 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 Dec. 31 is as
follows:
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 Dec. 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 Dec. 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 Dec. 31, 1995 and 1994 are as follows:
<TABLE>
<CAPTION>
Dec. 31, 1995 Dec. 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
<PAGE>
PAGE 65
2. Investments (continued)
Dec. 31, 1995 Dec. 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 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.
<PAGE>
PAGE 66
2. Investments (continued)
At Dec. 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 Dec. 31, 1995.
The following table presents changes in the reserve for investment
losses related to all loans:
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, Dec. 31 $37,340
At Dec. 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:
<PAGE>
PAGE 67
3. Income taxes (continued)
<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 Dec. 31, 1995,
the Company had a policyholders' surplus account balance of
$20,114. The policyholder's surplus account balance increased in
1995 due 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 Dec. 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:
Derred 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.
<PAGE>
PAGE 68
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.
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 Dec. 31, 1995 and $1,020,981 as of Dec.
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 Dec. 31 and capital and
surplus as of Dec. 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 Dec. 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 Dec. 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
<PAGE>
PAGE 69
5. Related party transactions (continued)
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
Dec. 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.
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 Dec.
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 Dec. 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 Dec. 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 Dec. 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.
<PAGE>
PAGE 70
5. Related party transactions (continued)
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 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 Dec. 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 Dec. 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 Dec. 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 Dec. 31, 1995 and 1994, respectively.
<PAGE>
PAGE 71
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
Dec. 31, 1995 Amount Value Value Exposure
<S> <C> <C> <C> <C>
Assets:
Interest rate caps $5,100,000 $26,680 $ 8,366 $ 8,366
Dec. 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 72
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,
receivables 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 Dec. 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 based on the
status of the annuities at Dec. 31, 1995 and 1994. The fair value
of deferred annuities is estimated as the carrying amount less any
<PAGE>
PAGE 73
9. Fair values of financial instruments (continued)
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 Dec. 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 Dec. 31, 1995, 1994 and 1993 and total assets at Dec.
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 74
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. These financial statements are the
responsibility of the Company's management. Our responsibility is
to express an opinion on these financial statements 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 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.
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
February 2, 1996
Minneapolis, Minnesota
<PAGE>
PAGE 75
PART C.
Item 24. Financial Statements and Exhibits
(a) Financial Statements included in Part B of this Registration
Statement:
IDS Life Accounts F,IZ,JZ,G,H & N:
Statements of Net Assets at Dec. 31, 1995.
Statements of Operations for the year ended Dec. 31, 1995.
Statements of Changes in Net Assets for the years ended
Dec. 31, 1995 and Dec. 31, 1994.
Notes to Financial Statements.
Report of Independent Auditors dated March 15, 1996.
IDS Life Insurance Company:
Consolidated Balance Sheets at Dec. 31, 1995 and 1994;
Consolidated Statements of Income for the years ended Dec.
31, 1995, 1994, and 1993;
Consolidated Statements of Stockholder's Equity for the
years ended Dec. 31, 1995, 1994, and 1993;
Consolidated Statements of Cash Flows for the years ended
Dec. 31, 1995, 1994, and 1993; and
Notes to Consolidated Financial Statements.
Report of Independent Auditors dated February 2, 1996.
Exhibits to Financial Statements included in Part B:
Financial Statement Schedules I, III, IV, and V as required by
Regulation S-X:
Schedule I - Consolidated Summary of Investments Other
than Investments in Related Parties
Schedule III - Supplementary Insurance Information
Schedule IV - Reinsurance
Schedule V - Valuation and Qualifying Accounts
Report of Independent Auditors dated February 2, 1996.
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.
(b) Exhibits:
1.1 Copy of Resolution of the Executive Committee of the Board of
Directors of IDS Life establishing Accounts C, D, E, F, G,
and H adopted May 13, 1981, filed electronically as Exhibit
1.1 to Post-Effective Amendment No. 2 to Registration
Statement No. 33-52518 is incorporated herein by reference.
1.2 Copy of Resolution of the Board of Directors of IDS Life
establishing Account N on April 17, 1985, filed electronically
as Exhibit 1.2 to Post-Effective Amendment No. 2 to
Registration Statement No. 33-52518 is incorporated herein by
reference.
<PAGE>
PAGE 76
1.3 Copy of Resolution of the Board of Directors of IDS Life
establishing Accounts IZ and JZ on September 20, 1991, filed
electronically as Exhibit 1.3 to Post-Effective Amendment No.
2 to Registration Statement No. 33-52518 is incorporated
herein by reference.
1.4 Consent in Writing in Lieu of Meeting of Board of Directors
establishing Accounts MZ, KZ and LZ on April 2, 1996, filed
electronically herewith.
2. Not applicable.
3. Not applicable.
4.1 Copy of Group Deferred Fixed/Variable Contract (form 34607)
filed electronically as Exhibit 4 to Post-Effective Amendment
No. 2 to Registration Statement No. 33-52518 is incorporated
herein by reference.
4.2 Copy of Group Deferred Fixed/Variable Certificate (form 34610-
MN) filed electronically as Exhibit 5 to Post-Effective
Amendment No. 2 to Registration Statement No. 33-52518 is
incorporated herein by reference.
5.1 Form of Master Application for Group Deferred Annuity Contract
(form 34608C) filed electronically as Exhibit 5.1 to Post-
Effective Amendment No. 4 to Registration Statement No. 33-
52518 is incorporated herein by reference.
5.2 Form of Participant Enrollment Form (form 34609A) filed
electronically as Exhibit 5.2 to Post-Effective Amendment No.
4 to Registration Statement No. 33-52518 is incorporated
herein by reference.
6.1 Copy of Articles of Incorporation of IDS Life dated July 24,
1957, filed electronically as Exhibit 6.1 to Post-Effective
Amendment No. 2 to Registration Statement No. 33-52518 is
incorporated herein by reference.
6.2 Copy of Amendment to By-Laws of IDS Life filed electronically
as Exhibit 6.2 to Post-Effective Amendment No. 2 to
Registration Statement No 33-52518 is incorporated herein by
reference.
7. Not applicable.
8. Not applicable.
9. Opinion of counsel and consent to its use as to the legality
of the securities registered was filed with Registrant's 24f-2
notice on or about February 23, 1996.
10. Consent of Independent Auditors, filed electronically
herewith.
11. Financial Statement Schedules and Report of Independent
Auditors, filed electronically herewith.
12. Not applicable.
<PAGE>
PAGE 77
13. Copy of Schedule for computation of each performance quotation
filed electronically as Exhibit 13 to Post-Effective Amendment
No. 2 to Registration Statement No. 33-52518 is incorporated
herein by reference.
14. Financial Data Schedules filed electronically herewith.
15. Power of Attorney to sign Amendments to this Registration
Statement dated April 1, 1996, filed electronically herewith.
Item 25. Directors and Officers of the Depositor (IDS Life
Insurance Company)
<TABLE>
<CAPTION>
Positions and
Name Principal Business Address Offices with Depositor
<S> <C> <C>
Timothy V. Bechtold IDS Tower 10 Vice President-Risk
Minneapolis, MN 55440 Management Products
David J. Berry IDS Tower 10 Vice President
Minneapolis, MN 55440
Alan R. Dakay IDS Tower 10 Vice President-
Minneapolis, MN 55440 Institutional Insurance
Marketing
Robert M. Elconin IDS Tower 10 Vice President
Minneapolis, MN 55440
Louis C. Fornetti IDS Tower 10 Director
Minneapolis, MN 55440
Morris Goodwin Jr. IDS Tower 10 Vice President and Treasurer
Minneapolis, MN 55440
Lorraine R. Hart IDS Tower 10 Vice President-Investments
Minneapolis, MN 55440
David R. Hubers IDS Tower 10 Director
Minneapolis, MN 55440
James M. Jensen IDS Tower 10 Vice President-Insurance
Minneapolis, MN 55440 Product Development
Richard W. Kling IDS Tower 10 Director and President
Minneapolis, MN 55440
Paul F. Kolkman IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President
Ryan R. Larson IDS Tower 10 Vice President-
Minneapolis, MN 55440 Annuity Product
Development
Janis E. Miller IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-
Variable Assets
James A. Mitchell IDS Tower 10 Director, Chairman of
Minneapolis, MN 55440 the Board and Chief
Executive Officer
<PAGE>
PAGE 78
Item 25. Directors and Officers of the Depositor (IDS Life
Insurance Company (cont'd)
Barry J. Murphy IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-
Client Service
James R. Palmer IDS Tower 10 Vice President-Taxes
Minneapolis, MN 55440
Stuart A. Sedlacek IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-Assured
Assets
F. Dale Simmons IDS Tower 10 Vice President-
Minneapolis, MN 55440 Real Estate
Loan Management
William A. Stoltzmann IDS Tower 10 Vice President, General
Minneapolis, MN 55440 Counsel and Secretary
Melinda S. Urion IDS Tower 10 Director, Executive
Minneapolis, MN 55440 Vice President and
Controller
</TABLE>
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant
IDS Life Insurance Company is a wholly owned subsidiary
of American Express Financial Corporation. American
Express Financial Corporation is a wholly owned
subsidiary of American Express Company (American
Express).
The following list includes the names of major
subsidiaries of American Express.
Jurisdiction
Name of Subsidiary of Incorporation
I. Travel Related Services
American Express Travel Related
Services Company, Inc. New York
II. International Banking Services
American Express Bank Ltd. Connecticut
III. Companies engaged in Investors
Diversified Financial Services
American Centurion Life Insurance Company New York
American Enterprise Investment Services Inc. Minnesota
American Enterprise Life Insurance Company Indiana
American Express Financial Advisors Inc. Delaware
American Express Financial Corporation Delaware
American Express Insurance Agency of Nevada
Nevada Inc.
American Express Minnesota Foundation Minnesota
American Express Service Corporation Delaware
<PAGE>
PAGE 79
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant (Continued)
Jurisdiction
Name of Subsidiary of Incorporation
American Express Tax and Business Services Inc. Minnesota
American Express Trust Company Minnesota
American Partners Life Insurance Company Arizona
AMEX Assurance Company Illinois
IDS Advisory Group Inc. Minnesota
IDS Aircraft Services Corporation Minnesota
IDS Cable Corporation Minnesota
IDS Cable II Corporation Minnesota
IDS Capital Holdings Inc. Minnesota
IDS Certificate Company Delaware
IDS Deposit Corp. Utah
IDS Fund Management Limited U.K.
IDS Futures Corporation Minnesota
IDS Futures III Corporation Minnesota
IDS Insurance Agency of Alabama Inc. Alabama
IDS Insurance Agency of Arkansas Inc. Arkansas
IDS Insurance Agency of Massachusetts Inc. Massachusetts
IDS Insurance Agency of Mississippi Inc. Mississippi
IDS Insurance Agency of New Mexico Inc. New Mexico
IDS Insurance Agency of North Carolina Inc. North Carolina
IDS Insurance Agency of Ohio Inc. Ohio
IDS Insurance Agency of Texas Inc. Texas
IDS Insurance Agency of Utah Inc. Utah
IDS Insurance Agency of Wyoming Inc. Wyoming
IDS International, Inc. Delaware
IDS Life Insurance Company Minnesota
IDS Life Insurance Company of New York New York
IDS Management Corporation Minnesota
IDS Partnership Services Corporation Minnesota
IDS Plan Services of California, Inc. Minnesota
IDS Property Casualty Insurance Company Wisconsin
IDS Real Estate Services, Inc. Delaware
IDS Realty Corporation Minnesota
IDS Sales Support Inc. Minnesota
IDS Securities Corporation Delaware
Investors Syndicate Development Corp. Nevada
Item 27. Number of Contractowners
On March 31, 1996, there were 13,970 contract owners of
the Employee Benefit Annuity.
Item 28. Indemnification
The By-Laws of the depositor provide that it shall
indemnify any person who was or is a party or is
threatened to be made a party, by reason of the fact that
he is or was a director, officer, employee or agent of
this Corporation, or is or was serving at the direction
of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture,
trust or other enterprise, to any threatened, pending or
<PAGE>
PAGE 80
completed action, suit or proceeding, wherever brought,
to the fullest extent permitted by the laws of the State
of Minnesota, as now existing or hereafter amended,
provided that this Article shall not indemnify or protect
any such director, officer, employee or agent against any
liability to the Corporation or its security holders to
which he would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence, in the
performance of his duties or by reason of his reckless
disregard of his obligations and duties.
Insofar as indemnification for liability arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful defense
of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
Item 29. Principal Underwriters
(a) IDS Life is the principal underwriter for IDS Life
Accounts F, IZ, JZ, G, H, N, KZ, LZ and MZ IDS Life
Variable Annuity Fund A, IDS Life Variable Annuity
Fund B, IDS Life Account RE, IDS Life Account MGA
and IDS Life Account SBS, IDS Life Variable Account
10, IDS Life Variable Life Separate Account and IDS
Life Variable Account for Smith Barney.
(b) This table is the same as our response to Item 25 of
this Registration Statement.
(c)
<TABLE>
<CAPTION>
Name of Net Underwriting
Principal Discounts and Compensation on Brokerage
Underwriter Commissions Redemption Commissions Compensation
<S> <C> <C> <C> <C>
IDS Life None $10,125,762 None None
</TABLE>
Item 30. Location of Accounts and Records
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN
Item 31. Management Services
Not applicable.
<PAGE>
PAGE 81
Item 32. Undertakings
(a) Registrant undertakes that it will file a post-
effective amendment to this registration statement
as frequently as is necessary to ensure that the
audited financial statements in the registration
statement are never more than 16 months old for so
long as payments under the variable annuity
contracts may be accepted.
(b) Registrant undertakes that it will include either
(1) as part of any application to purchase a
contract offered by the prospectus, a space that an
applicant can check to request a Statement of
Additional Information, or (2) a post card or
similar written communication affixed to or included
in the prospectus that the applicant can remove to
send for a Statement of Additional Information.
(c) Registrant undertakes to deliver any Statement of
Additional Information and any financial statements
required to be made available under this Form
promptly upon written or oral request to IDS Life
Contract Owner Service at the address or phone
number listed in the prospectus.
(d) Registrant represents that it is relying upon the
no-action assurance given to the American Council of
Life Insurance (pub. avail. Nov. 28, 1988).
Further, Registrant represents that it has complied
with the provisions of paragraphs (1)-(4) of that
no-action letter.
<PAGE>
PAGE 82
SIGNATURES
As required by the Securities Act of 1933 and the Investment
Company Act of 1940, IDS Life Insurance Company, on behalf of the
Registrant certifies that it meets the requirements of Securities
Act Rule 485(b) for effectiveness of this Registration Statement
and, has caused this Registration Statement to be signed on its
behalf in the City of Minneapolis, and State of Minnesota, on the
11th day of April, 1996.
IDS LIFE ACCOUNT F
IDS LIFE ACCOUNT IZ
IDS LIFE ACCOUNT JZ
IDS LIFE ACCOUNT G
IDS LIFE ACCOUNT H
IDS LIFE ACCOUNT N
IDS LIFE ACCOUNT KZ
IDS LIFE ACCOUNT LZ
IDS LIFE ACCOUNT MZ
(Registrant)
By IDS Life Insurance Company
(Sponsor)
By /s/ Richard W. Kling*
Richard W. Kling
President
As required by the Securities Act of 1933, this Registration
Statement has been signed by the following persons in the
capacities indicated on the 11th day of April, 1996.
Signature Title
/s/ James A. Mitchell* Director, Chairman of the
James A. Mitchell Board and Chief Executive
Officer
/s/ Richard W. Kling* Director and President
Richard W. Kling
/s/ David R. Hubers* Director
David R. Hubers
/s/ Paul F. Kolkman* Director and Executive Vice
Paul F. Kolkman President
/s/ Janis E. Miller* Director and Executive Vice
Janis E. Miller President, Variable Assets
/s/ Barry J. Murphy* Director and Executive Vice
Barry J. Murphy President, Client Service
/s/ Stuart A. Sedlacek* Director and Executive Vice
Stuart A. Sedlacek President, Assured Assets
/s/ Melinda S. Urion* Director, Executive Vice
Melinda S. Urion President and Controller
* Signed pursuant to Power of Attorney dated April 1, 1996, filed
electronically herewith.
_____________________________
Mary Ellyn Minenko<PAGE>
PAGE 83
CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 6
This Post-Effective Amendment is comprised of the following papers
and documents:
The Cover Page.
Cross-reference sheet.
Part A.
The prospectus.
Part B.
Statement of Additional Information.
Financial Statements.
Part C.
Other Information.
The signatures.
Exhibits.
<PAGE>
PAGE 1
IDS Life Accounts F,IZ,JZ,G,H,N,KZ,LZ, and MZ:
Registration No.33-52518/811-3217
1.4 Board of Directors Consent in Lieu of Meeting
10. Consent of Independent Auditors
11. Financial Statement Schedules and
Report of Independent Auditors
14. Financial Data Schedules:
IDS Life Accounts F,IZ,JZ,G,H,N,KZ,LZ, and MZ
IDS Life Insurance Company
15. Power of Attorney
<PAGE>
PAGE 1
CONSENT IN WRITING IN LIEU
OF MEETING OF BOARD OF DIRECTORS
TO THE SECRETARY OF
IDS LIFE INSURANCE COMPANY
By this consent in writing in lieu of a meeting of the Board of
Directors of IDS Life Insurance Company, a Minnesota corporation,
we the Directors of said Corporation do hereby consent to and
authorize the adoption of the following resolution to be effective
immediately upon receipt by the Secretary of the Corporation:
WHEREAS, This Board of Directors has determined that it
is desirable for the Corporation to provide for the
acquisition of shares of IDS Life Growth Dimensions
Fund, IDS Life Global Yield Fund and IDS Life Income
Advantage Fund under its variable annuity contracts.
Now, therefore, be it
RESOLVED, That the three separate accounts set forth
below are hereby established in accordance with Section
61A.14 of the Minnesota Statutes:
IDS Life Account MZ, to invest in shares of IDS
Life Growth Dimensions Fund;
IDS Life Account KZ, to invest in shares of IDS
Life Global Yield Fund; and
IDS Life Account LZ, to invest in shares of IDS
Life Income Advantage Fund.
RESOLVED FURTHER, That the Unit Investment Trust
comprised of IDS Life Accounts F, IZ, JZ, G, H and N is
hereby reconstituted as IDS Life Accounts F, IZ, JZ,
MZ, G, KZ, LZ, H and N.
RESOLVED FURTHER, That the proper officers of the
Corporation are hereby authorized to accomplish all
filings, registrations, and applications for exemptive
relief necessary to carry the foregoing into effect.
RESOLVED FURTHER, That the proper officers of the
Corporation are hereby authorized and directed to
establish such separate accounts and/or subaccounts as
they determine to be appropriate;
RESOLVED FURTHER, That the proper officers of the
Corporation are hereby authorized and directed, as they
may deem appropriate from time to time and in
accordance with applicable laws and regulations to:
establish further any separate accounts and/or
subaccounts; change the designation of a separate
account to another designation; and deregister a
separate account;
<PAGE>
PAGE 2
/s/ David R. Hubers /s/ Richard W. Kling
David R. Hubers Richard W. Kling
/s/ Paul F. Kolkman /s/ Janis E. Miller
Paul F. Kolkman Janis E. Miller
/s/ James A. Mitchell /s/ Barry J. Murphy
James A. Mitchell Barry J. Murphy
/s/ Stuart A. Sedlacek /s/ Melinda S. Urion
Stuart A. Sedlacek Melinda S. Urion
Received by the Secretary
April 2, 1996
/s/ William A. Stoltzmann
William A. Stoltzmann
<PAGE>
PAGE 1
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the caption
"Independent Auditors" and to the use of our reports dated
February 2, 1996 on the consolidated financial statements
and schedules of IDS Life Insurance Company and our report
dated March 15, 1996 on the financial statements of IDS Life
Accounts F, IZ, JZ, G, H and N in Post Effective Amendment
No. 6 to the Registration Statement (Form N-4 No. 33-52518)
for the registration of the Employee Benefit Annuity to be
offered by IDS Life Insurance Company.
Ernst & Young LLP
Minneapolis, Minnesota
April 11, 1996
<PAGE>
PAGE 1
<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
$4,088,800, respectively.
</TABLE>
<PAGE>
PAGE 2
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION ($ 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 $211,642 N/A
</TABLE>
<PAGE>
PAGE 3
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION ($ 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 $210,101 N/A
</TABLE>
<PAGE>
PAGE 4
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION ($ 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 $241,974 N/A
</TABLE>
<PAGE>
PAGE 5
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY
SCHEDULE IV - REINSURANCE ($ 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 6
<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>
PAGE 7
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company
We have audited the consolidated financial statements of IDS Life
Insurance Company as of December 31, 1995 and 1994, and for each of
the three years in the period ended December 31, 1995, and have
issued our report thereon dated February 2, 1996 (included
elsewhere in this Registration Statement).
Our audits also included the financial statement schedules listed
in Item 16(b) of this Registration Statement. These schedules are
the responsibility of the Company's management. Our responsibility
is to express an opinion based on our audits.
In our opinion, the financial statement schedules referred to
above, when considered in relation to the basic financial
statements taken as a whole, present fairly, in all material
respects, the information set forth therein.
/s/ Ernst & Young LLP
Minneapolis, Minnesota
February 2, 1996
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 7
<CIK> 0000768836
<NAME> IDS Life Insurance Company
<MULTIPLIER> 1000
<CURRENCY> U.S. DOLLAR
<FISCAL-YEAR-END> DEC-31-1994 DEC-31-1995
<PERIOD-START> JAN-01-1994 JAN-01-1995
<PERIOD-END> DEC-31-1994 DEC-31-1995
<PERIOD-TYPE> YEAR YEAR
<EXCHANGE-RATE> 1 1
<DEBT-HELD-FOR-SALE> 8017555 10516212
<DEBT-CARRYING-VALUE> 11269861 11257591
<DEBT-MARKET-VALUE> 10694800 11878377
<EQUITIES> 1906 3517
<MORTGAGE> 2400514 2945495
<REAL-ESTATE> 20835 28796
<TOTAL-INVEST> 22121637 25290211
<CASH> 267774 72147
<RECOVER-REINSURE> 1110 1849
<DEFERRED-ACQUISITION> 1865324 2025725
<TOTAL-ASSETS> 35747543 42900078
<POLICY-LOSSES> 22708910 25018089
<UNEARNED-PREMIUMS> 0 0
<POLICY-OTHER> 0 0
<POLICY-HOLDER-FUNDS> 50068 56323
<NOTES-PAYABLE> 0 0
<COMMON> 3000 3000
0 0
0 0
<OTHER-SE> 1585691 2328708
<TOTAL-LIABILITY-AND-EQUITY> 35747543 42900078
144640 161530
<INVESTMENT-INCOME> 1781873 1907309
<INVESTMENT-GAINS> (4282) (4898)
<OTHER-INCOME> 384105 472035
<BENEFITS> 1303351 1483431
<UNDERWRITING-AMORTIZATION> 280372 280121
<UNDERWRITING-OTHER> 210101 211642
<INCOME-PRETAX> 512512 560782
<INCOME-TAX> 176343 195842
<INCOME-CONTINUING> 336169 364940
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 336169 364940
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
<RESERVE-OPEN> 20636 23228
<PROVISION-CURRENT> 93683 117478
<PROVISION-PRIOR> 0 0
<PAYMENTS-CURRENT> 91091 116514
<PAYMENTS-PRIOR> 0 0
<RESERVE-CLOSE> 23228 24192
<CUMULATIVE-DEFICIENCY> 0 0
<PAGE>
<ARTICLE> 6
<CIK>
<NAME> IDS Life Accounts F, IZ, JZ, G, H and N
[SERIES]
<NAME>
[NUMBER]
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<PERIOD-TYPE> YEAR
<EXCHANGE-RATE> 1
[INVESTMENTS-AT-COST] 10526194399
[INVESTMENTS-AT-VALUE] 12163229742
[RECEIVABLES] 20374824
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 12183604566
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] (28370651)
[TOTAL-LIABILITIES] (28370651)
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 0
[SHARES-COMMON-STOCK] 4447037532
[SHARES-COMMON-PRIOR] 3844459289
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
<OVERDISTRIBUTIONS-GAINS> 0
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] 12155233915
[DIVIDEND-INCOME] 667127671
[INTEREST-INCOME] 0
[OTHER-INCOME] 0
[EXPENSES-NET] (106323824)
[NET-INVESTMENT-INCOME] 560803847
[REALIZED-GAINS-CURRENT] 4515744
[APPREC-INCREASE-CURRENT] 1549767099
[NET-CHANGE-FROM-OPS] 2115086690
[EQUALIZATION] 0
<DISTRIBUTION-OF-INCOME> 0
<DISTRIBUTION-OF-GAINS> 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 849293685
<NUMBER-OF-SHARES-REDEEMDED> (246715442)
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 3375049180
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 0
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (106323824)
[AVERAGE-NET-ASSETS] 10467709325
[PER-SHARE-NAV-BEGIN] 0
[PER-SHARE-NII] 0
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0<PAGE>
[PER-SHARE-NAV-END] 0
[EXPENSE-RATIO] 0
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
<PAGE>
PAGE 1
IDS LIFE INSURANCE COMPANY
POWER OF ATTORNEY
City of Minneapolis
State of Minnesota
Each of the undersigned, as directors of the below
listed unit investment trusts that previously have filed
registration statements and amendments thereto pursuant to the
requirements of the Securities Act of 1933 and the Investment
Company Act of 1940 with the Securities and Exchange Commission:
<TABLE>
<CAPTION>
1933 Act 1940 Act
Reg. Number Reg. Number
<S> <C> <C>
IDS Life Variable Account 10
IDS Life Flexible Portfolio Annuity 33-62407 811-07355
IDS Life Accounts F, IZ, JZ, G, H, N, KZ, LZ and MZ
IDS Life Flexible Annuity 33-4173 811-3217
IDS Life Accounts F, IZ, JZ, G, H, N, KZ, LZ and MZ
IDS Life Variable and Combination
Retirement Annuities 2-73114 811-3217
IDS Life Accounts F, IZ, JZ, G, H, N, KZ, LZ and MZ
IDS Life Employee Benefit Annuity 33-52518 811-3217
IDS Life Accounts F, IZ, JZ, G, H, N, KZ, LZ and MZ
IDS Life Group Variable Annuity Contract 33-47302 811-3217
IDS Life Insurance Company
IDS Life Group Variable Annuity Contract
(Fixed Account) 33-48701 N/A
IDS Life Insurance Company
IDS Life Single Payment Market Value Annuity 33-28976 N/A
IDS Life Insurance Company
IDS Life Flexible Payment Market Value Annuity 33-50968 N/A
IDS Life Variable Life Separate Account
Flexible Premium Variable Life Insurance Policy 33-11165 811-4298
IDS Life Variable Life Separate Account
IDS Life Single Premium Variable Life 2-97637 811-4298
IDS Life Variable Account for Smith Barney
LifeVest Single Premium Variable Life 33-5210 811-4652
IDS Life Account SBS
IDS Life Symphony Annuity 33-40779 812-7731
IDS Life Account RE
IDS Life Real Estate Variable Annuity 33-13375 N/A
IDS Life Variable Annuity Fund A 2-29081 811-1653
IDS Life Variable Annuity Fund B 2-47430 811-1674
</TABLE>
hereby constitutes and appoints William A. Stoltzmann, Mary Ellyn
Minenko, Eileen J. Newhouse and Timothy S. Meehan or any one of
them, as her or his attorney-in-fact and agent, to sign for her or
him in her or his name, place and stead any and all filings,
applications (including applications for exemptive relief),
periodic reports, registration statements (with all exhibits and
other documents required or desirable in connection therewith)
other documents, and amendments thereto and to file such filings,
applications, periodic reports, registration statements other
<PAGE>
PAGE 2
documents, and amendments thereto with the Securities and Exchange
Commission, and any necessary states, and grants to any or all of
them the full power and authority to do and perform each and every
act required or necessary in connection therewith.
Dated the 1st day of April, 1996.
/s/ David R. Hubers March 21, 1996
David R. Hubers
Director
/s/ Richard W. Kling March 21, 1996
Richard W. Kling
Director and President
/s/ Paul F. Kolkman March 21, 1996
Paul F. Kolkman
Director and Executive Vice
President
/s/ Janis E. Miller March 25, 1996
Janis E. Miller
Director and Executive Vice
President, Variable Assets
/s/ James A. Mitchell March 25, 1996
James A. Mitchell
Director, Chairman of the
Board and Chief Executive Officer
/s/ Barry J. Murphy April 1, 1996
Barry J. Murphy
Director and Executive Vice
President, Client Service
/s/ Stuart A. Sedlacek March 27, 1996
Stuart A. Sedlacek
Director and Executive Vice
President, Assured Assets
/s/ Melinda S. Urion March 29, 1996
Melinda S. Urion
Director, Executive Vice
President and Controller
