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. 33-52567) [x]
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and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 7 (File No. 811-3500) [x]
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IDS LIFE OF NEW YORK ACCOUNT 4
IDS LIFE OF NEW YORK ACCOUNT 5
IDS LIFE OF NEW YORK ACCOUNT 6
IDS LIFE OF NEW YORK ACCOUNT 9
IDS LIFE OF NEW YORK ACCOUNT 10
IDS LIFE OF NEW YORK ACCOUNT 11
IDS LIFE OF NEW YORK ACCOUNT 12
IDS LIFE OF NEW YORK ACCOUNT 13
IDS LIFE OF NEW YORK ACCOUNT 14
- --------------------------------------------------------------------------------
(Exact Name of Registrant)
IDS Life Insurance Company of New York
- --------------------------------------------------------------------------------
(Name of Depositor)
20 Madison Avenue Extension, Albany, NY 12203
- --------------------------------------------------------------------------------
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (612) 671-4085
- --------------------------------------------------------------------------------
Sherilyn K. Beck, IDS Tower 10, Minneapolis, MN 55440-0010
- --------------------------------------------------------------------------------
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check appropriate box)
[ ] immediately upon filing pursuant to paragraph (b) of Rule 485
[X] on May 1, 1998 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
If appropriate, check the following box:
[ ] this post-effective amendment designates a new effective date for
previously filed post-effective amendment.
<PAGE>
CROSS REFERENCE SHEET
Cross reference sheet showing location in the prospectus and Statement of
Additional Information of the information called for by the items enumerated in
Part A and B of Form N-4.
Negative answers omitted from the prospectus and Statement of Additional
Information are so indicated.
PART A
Item No. Section in Prospectus
1 Cover page
2 Key terms
3 (a) Expense Summary
(b) The Employee Benefit Annuity in brief
4 (a) Condensed financial information
(b) Performance information
(c) Financial statements
5 (a) Cover page; About IDS Life of New York
(b) The variable accounts
(c) The funds
(d) Cover page; The funds
(e) Voting rights
(f) NA
(g) NA
6 (a) Certificate charges
(b) Expense Summary; Certificate charges
(c) Certificate charges
(d) Distribution of the certificates
(e) The funds
(f) NA
7 (a) Buying the contract and certificate; Benefits in case of
death; The annuity payout period
(b) The variable accounts; Making the most of your annuity
(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) About IDS Life of New York
11 (a) Surrendering a certificate
(b) NA
(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
<PAGE>
PART B
Section in
Item No. Statement of Additional Information
15 (a) Cover page
(b) NA
16 Table of Contents
17 (a) NA
(b) NA
(c) About IDS Life of New York*
18 (a) NA
(b) NA
(c) Independent Auditors
(d) NA
(e) NA
(f) NA
19 (a) Distribution of the certificates*; About IDS Life of New York*
(b) Certificate charges*
20 (a) Principal underwriter
(b) Principal underwriter
(c) Principal underwriter
(d) NA
21 (a) Performance information
(b) Performance information
22 Calculating annuity payouts
23 (a) Financial statements
(b) Financial statements
*Designates section in the prospectus, which is hereby incorporated by reference
in this Statement of Additional Information.
<PAGE>
IDS Life of New York Employee Benefit Annuity
Prospectus
May 1, 1998
The Employee Benefit Annuity is a flexible premium group deferred fixed/variable
annuity contract (the contract) offered by IDS Life Insurance Company of New
York (IDS Life of New York) a subsidiary of IDS Life Insurance Company (IDS
Life), which is a subsidiary of American Express Financial Corporation (AEFC).
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 a salary-reduction plan that meets the requirements of Section
403(b) of the Code.
IDS Life of New York Accounts 4, 5, 6, 9, 10, 11, 12, 13 and 14
Sold by: IDS Life Insurance Company of New York, 20 Madison Avenue Extension,
Albany, NY 12203, Telephone: 800-541-2215.
This prospectus contains the information about the variable accounts that you
should know before investing. Refer to "The variable accounts" in this
prospectus. As in the case of other annuities, it may not be advantageous to
purchase this annuity as a replacement for, or in addition to an existing
annuity.
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 read these
documents carefully and
keep them 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 of New York is not a bank or financial institution and the securities
it offers are not deposits or obligations of, backed or guaranteed or endorsed
by any bank or financial institution nor are they insured by the Federal Deposit
Insurance Corporation, the Federal Reserve Board or any other agency.
<PAGE>
A Statement of Additional Information (SAI) (incorporated by reference into this
prospectus) filed with the Securities and Exchange Commission (SEC) is available
without charge by contacting IDS Life of New York 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.
<PAGE>
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
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
IDS Life 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
Valuing your investment
Number of units
Accumulation unit value
Net investment factor
Factors that affect variable account accumulation units
<PAGE>
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
The annuity payout period
Annuity payout plans
Death after annuity payouts begin
Taxes
Voting rights
Distribution of the certificates
About IDS Life of New York
Year 2000
Regular and special reports
Services
Table of contents of the Statement of Additional Information
<PAGE>
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 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 4
p.m. Eastern time.
Code - Internal Revenue Code of 1986, as amended.
<PAGE>
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 of New York.
IDS Life of New York - In this prospectus, "we," "us," "our" and "IDS Life of
New York" refer to IDS Life Insurance Company of New York.
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 of New York 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. 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 - 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.
<PAGE>
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
Albany office within 10 days after it is delivered and receive a full refund of
the certificate value. No charges will be deducted.
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 of New York. (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 Albany office. The maximum amount of purchase
payments is determined by any restrictions imposed by 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.)
<PAGE>
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.
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. During the
annuity payout period, you cannot be invested in more than five variable
accounts at any one time unless we agree otherwise. (p.)
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 fee and a surrender charge. (p.)
Expense summary
The purpose of this table 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."
<PAGE>
Contract Owner Expenses
Surrender charge*
(Contingent deferred sales charge as percentage amount surrendered)
Certificate Year Percentage
---------------- ----------
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
Annual administrative charge: $30
(Deducted from certificate value of each Certificate)
Separate account annual expenses
(As a percentage of average daily net assets)
Mortality and expense risk fee: 1%
* The surrender charge is further limited so that it will
never exceed 8.5% of aggregate purchase payments made to the
certificate.
Annual operating expenses of underlying mutual funds
(Management fees and other expenses deducted as a percentage
of average net assets)
<TABLE>
<CAPTION>
IDS Life IDS Life IDS Life IDS Life IDS Life IDS Life IDS Life
Aggressive InternationalCapital IDS Life Special IDS Life Growth Global Income
Growth Equity Resource Managed Income Moneyshare Dimensions Yield Advantage
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management fees 0.60% 0.83% 0.60% 0.59% 0.60% 0.51% 0.63% 0.84% 0.62%
Other expenses 0.07% 0.11% 0.07% 0.05% 0.07% 0.06% 0.08% 0.07% 0.03%
Total * 0.67% 0.94% 0.67% 0.64% 0.67% 0.57% 0.71% 0.91% 0.65%
</TABLE>
*Annualized operating expenses of underlying mutual funds at Dec. 31, 1997.
<PAGE>
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:
<TABLE>
<CAPTION>
IDS Life IDS Life IDS Life IDS Life IDS Life IDS Life IDS Life
Aggressive InternationalCapital IDS Life Special IDS Life Growth Global Income
Growth Equity Resource Managed Income Moneyshare Dimensions Yield Advantage
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 year $100.88 $103.43 $100.88 $100.60 $100.88 $99.37 $101.26 $103.14 $100.69
3 years $144.64 $152.33 $144.64 $143.79 $144.64 $140.07 $145.78 $151.48 $144.07
5 years $179.53 $192.56 $179.53 $178.08 $179.53 $171.74 $181.47 $191.12 $178.56
10 years $239.25 $267.41 $239.25 $236.08 $239.25 $222.21 $243.47 $264.32 $237.14
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:
IDS Life IDS Life IDS Life IDS Life IDS Life IDS Life IDS Life
Aggressive InternationalCapital IDS Life Special IDS Life Growth Global Income
Growth Equity Resource Managed Income Moneyshare Dimensions Yield Advantage
1 year $18.35 $21.12 $18.35 $18.04 $18.35 $16.71 $18.76 $20.81 $18.14
3 years $56.80 $65.19 $56.80 $55.87 $56.80 $51.81 $58.05 $64.26 $56.18
5 years $97.73 $111.85 $97.73 $96.15 $97.73 $89.29 $99.83 $110.29 $96.68
10 years $211.94 $240.82 $211.94 $208.68 $211.94 $194.46 $216.27 $237.65 $209.77
</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
0.120% 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.
<PAGE>
<TABLE>
<CAPTION>
Condensed Financial Information (Unaudited)
The following tables give per-unit information about the financial history of
each variable account.
Year Ended Dec. 31,
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
Account 4 (investing in shares of Capital Resource Fund)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation unit $4.64 $4.35 $3.43 $3.43 $3.35 $3.35 $2.24 $2.25 $1.78 $1.61
value at beginning
of period
Accumulation unit value $5.71 $4.64 $4.35 $3.43 $3.43 $3.35 $3.25 $2.24 $2.25 $1.78
at end of period
Number of accumulation 41,666 47,283 44,849 38,283 30,089 21,677 13,591 10,058 8,345 7,347
units outstanding at end
of period (000 omitted)
Ratio of operating 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
expense to average
Account 101 (investing in shares of International Equity Fund)
Accumulation unit $1.50 $1.38 $1.25 $1.29 $0.98 $1.00 -- -- -- --
value at beginning
of period
Accumulation unit value $1.52 $1.50 $1.38 $1.25 $1.29 $0.98 -- -- -- --
at end of period
Number of accumulation 75,831 77,830 63,576 51,480 21,650 3,421 -- -- -- --
units outstanding at end
of period (000 omitted)
Ration of operating 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% -- -- -- --
expense to average
net assets
<PAGE>
Account 111 (investing in shares of Aggressive Growth Fund)
Accumulation unit $1.69 $1.47 $1.12 $1.21 $1.08 $1.00 -- -- -- --
value at beginning
of period
Accumulation unit value $1.88 $1.69 $1.47 $1.12 $1.21 $1.08 -- -- -- --
at end of period
Number of accumulation 79,813 77,673 62,233 45,347 19,430 5,961 -- -- -- --
units outstanding at end
of period (000 omitted)
Ratio of operating 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% -- -- -- --
expense to average
net assets
Account 5 (investing in shares of Special Income Fund)
Accumulation unit $3.73 $3.53 $2.91 $3.06 $2.67 $2.46 $2.12 $2.05 $1.90 $1.74
value at beginning
of period
Accumulation unit value $4.01 $3.73 $3.53 $2.91 $3.06 $2.67 $2.46 $2.12 $2.05 $1.90
at end of period
Number of accumulation 21,882 24,424 23,903 21,936 23,259 16,710 12,228 10,315 9,301 7,891
units outstanding at end
of period (000 omitted)
Ratio of operating 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
expense to average
net assets
<PAGE>
Account 6 (investing in shares of Moneyshare Fund)
Accumulation unit $2.07 $1.99 $1.91 $1.86 $1.83 $1.80 $1.71 $1.61 $1.49 $1.40
value at beginning
of period
Accumulation unit value $2.17 $2.07 $1.99 $1.91 $1.86 $1.83 $1.80 $1.71 $1.61 $1.49
at end of period
Number of accumulation 4,651 5,927 5,445 3,794 4,113 5,378 7,253 6,487 5,493 2,836
units outstanding at end
of period (000 omitted)
Ratio of operating 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
expense to average
net assets
Simple yield2 4.11% 3.78% 4.00% 4.23% 1.90% 1.77% 3.24% 6.20% 6.80% 7.30%
Compound yield2 4.19% 3.85% 4.08% 4.32% 1.92% 1.79% 3.29% 6.39% 7.03% 7.57%
Account 9 (investing in shares of Managed Fund)
Accumulation unit $2.96 $2.57 $2.09 $2.21 $1.98 $1.86 $1.45 $1.42 $1.14 $1.06
value at beginning
of period
Accumulation unit value $3.51 $2.96 $2.57 $2.09 $2.21 $1.98 $1.86 $1.45 $1.42 $1.14
at end of period
Number of accumulation 73,557 75,219 72,999 66,800 50,761 31,828 20,105 15,292 12,248 11,920
units outstanding at end
of period (000 omitted)
Ratio of operating 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
expense to average
net assets
Account 123 (investing in shares of Global Yield Fund)
Accumulation unit $1.07 $1.00 -- -- -- -- -- -- -- --
value at beginning
of period
Accumulation unit value $1.10 $1.07 -- -- -- -- -- -- -- --
at end of period
Number of accumulation 5,578 2,311 -- -- -- -- -- -- -- --
units outstanding at end
of period (000 omitted)
Ratio of operating 1.00% 1.00% -- -- -- -- -- -- -- --
expense to average
net assets
<PAGE>
Account 133 (investing in shares of Income Advantage Fund)
Accumulation unit $1.05 $1.00 -- -- -- -- -- -- -- --
value at beginning
of period
Accumulation unit value $1.18 $1.05 -- -- -- -- -- -- -- --
at end of period
Number of accumulation 12,894 4,671 -- -- -- -- -- -- -- --
units outstanding at end
of period (000 omitted)
Ratio of operating 1.00% 1.00% -- -- -- -- -- -- -- --
expense to average
net assets
Account 143 (investing in shares of Growth Dimensions Fund)
Accumulation unit $1.11 $1.00 -- -- -- -- -- -- -- --
value at beginning
of period
Accumulation unit value $1.37 $1.11 -- -- -- -- -- -- -- --
at end of period
Number of accumulation 64,613 27,817 -- -- -- -- -- -- -- --
units outstanding at end
of period (000 omitted)
Ratio of operating 1.00% 1.00% -- -- -- -- -- -- -- --
expense to average
net assets
1 Accounts 10 and 11 commenced operations on Jan. 13, 1992. 2 Net of annual
contract administrative fee and mortality and expense risk fee. 3 Accounts 12,
13 and 14 commenced operations on April 30, 1996.
</TABLE>
<PAGE>
Financial statements
The SAI dated May 1, 1998, contains:
o complete audited financial statements of the variable accounts including:
- statements of net assets as of Dec. 31, 1997;
- statements of operations for the year ended Dec. 31, 1997, and
- statements of changes in net assets for the years ended Dec. 31, 1997
and Dec. 31, 1996, except for IDS Life of New York Accounts 12, 13,
and 14 which are for the year ended Dec. 31, 1997 and the period
April 30, 1996 (commencement of operations) to Dec. 31, 1996.
o complete audited financial statements for IDS Life of New York including:
- balance sheets as of Dec. 31, 1997 and Dec. 31, 1996; and
- related statements of income, stockholder's equity and cash flows for
each of the three years in the period ended Dec. 31, 1997.
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:
Simple yield - Account 6 (investing in IDS Life 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 6: 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.
<PAGE>
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 average annual 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
administrative charge, mortality and expense risk fee and surrender charge,
assuming a surrender at the end of the illustrated period. Optional aggregate
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.
<PAGE>
The variable accounts
Purchase payments can be allocated to any or all of the variable accounts that
invest in shares of the following funds:
IDS Life of
New York Account Established
IDS Life Aggressive Growth Fund 11 Oct. 8, 1991
IDS Life International Equity Fund 10 Oct. 8, 1991
IDS Life Capital Resource Fund 4 Nov. 12, 1981
IDS Life Managed Fund 9 Feb. 12, 1986
IDS Life Special Income Fund 5 Nov. 12, 1981
IDS Life Moneyshare Fund 6 Nov. 12, 1981
IDS Life Growth Dimensions Fund 14 April 17, 1996
IDS Life Global Yield Fund 12 April 17, 1996
IDS Life Income Advantage Fund 13 April 17, 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 of New York.
All variable accounts were established under New York 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
IDS Life 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.
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IDS Life 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.
IDS Life 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.
IDS Life 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.
IDS Life 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.
IDS Life 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.
IDS Life 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.
IDS Life 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.
IDS Life 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.
<PAGE>
More comprehensive information regarding each fund is contained in the fund
prospectus. You should read the fund prospectus and consider carefully, and on a
continuing basis, which fund or combination of funds is best suited to your
long-term investment needs. There is no assurance that the investment objectives
of the funds will be attained nor is there any guarantee that the certificate
value will equal or exceed the total purchase payments made. Some funds may
involve more risk than others--please monitor your investments accordingly.
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 that 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 manager and AEFC is the investment advisor for each
of the funds. American Express Asset Management International Inc., a
wholly-owned subsidiary of AEFC, is the sub-investment advisor for IDS Life
International Equity Fund. The investment manager and advisors 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 of New York at the address or telephone number
on the front of this prospectus, or from your financial advisor.
The fixed account
Purchase payments also may 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 of New York, the company's main portfolio of investments. Interest
is credited daily and compounded annually. We may change the interest rates from
time to time.
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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. A
financial advisor will also help each participant prepare and submit an
enrollment form. These forms will be sent to our Albany 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. Please remember that investment performance,
expenses and deduction of certain charges affect accumulation unit value.
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 business days after we receive them at our Albany office. 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 business 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 after we receive your payments at our
Albany office.
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 select a date within the
maximum limits. This date can be aligned with 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.
<PAGE>
To avoid IRS penalty taxes, the retirement date generally must be:
o on or after the date you reach age 59 1/2; and
o by April 1 of the year following the calendar year when the annuitant
reaches age 70 1/2 or, if later, retires; except that 5% business
owners may not select a retirement date that is later than April 1 of
the year following the calendar year when they 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.
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 36 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.
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
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Maximum payment for each subsequent year: $50,000**
**These limits apply in total to all IDS Life of New York annuities you own. We
reserve the right to increase maximum limits or reduce age limits. The Code'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 of New York annuitants live. If, as a group,
IDS Life of New York annuitants outlive the life expectancy we have assumed in
our actuarial tables, then we must take money from our general assets to meet
our obligations. If, as a group, IDS Life of New York annuitants do not live as
long as expected, we could profit from the mortality risk fee.
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 may use any profits realized from the mortality and expense risk 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>
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 of New York
reserves the right to reduce or eliminate the surrender charge. The surrender
charge is calculated so that the amount surrendered, minus any surrender charge
equals the amount you request.
Example of surrender charge:
Owner requests a $1,000 partial surrender and the surrender charge
is 5%:= $1,000/(1.00-.05)=$1,052.63
Total amount surrendered.............................$ 1,052.63
x 0.05
Total surrender charge...............................$ 52.63
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
<PAGE>
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.
Valuing your investment
Here is how your accounts are valued:
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 the 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, 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 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.
<PAGE>
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 you own 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.
Accumulation unit values will 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, or from the fixed account to one
or more variable accounts. There is no charge for dollar-cost averaging.
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.
<PAGE>
How dollar-cost averaging works
Amount invested Accumulation unit Number of units
Month 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.
Because this strategy involves continuous investing, your success with
dollar-cost averaging will depend upon your willingness to continue to invest
regularly through periods of low price levels. Dollar-cost averaging can be an
effective way to help meet your long-term goals.
Transferring money between accounts
You may transfer money from any one account, including the fixed account, to
another before the annuity payouts begin. We will process your transfer request
at the next close of business after we receive it. There is no charge for
transfers. Before making a transfer, you should consider the risks involved in
switching investments. Certain restrictions apply to transfers involving the
fixed account.
<PAGE>
Transfer policies
o 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 certain transfer periods 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 of New York
Box 5144
Albany, NY 12205
Express mail:
IDS Life Insurance Company of New York
20 Madison Ave. Ext.
Albany, NY 12203
Minimum amount
Mail transfers: $250 or entire account balance
Mail surrenders: $250 or entire account balance
Maximum amount
Mail transfers: None (up to certificate value)
Mail surrenders: None (up to certificate value)
<PAGE>
2 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 of New York. You must allow 30 days for IDS Life of New York 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
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, you may surrender all or
part of your certificate at any time before annuity payouts begin by sending a
written request to IDS Life of New York. For total surrenders, we will compute
the value of the certificate at the next 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.
Note: You will be charged a fee if you request express mail delivery.
<PAGE>
By wire:
o request that payment be wired to your bank;
o bank account must be in the same ownership as your contract; and
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 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.
<PAGE>
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. You may borrow from the
certificate value allocated to the fixed account.
o For certain types of contributions under a TSA contract to be excluded
from taxable income, the employer must comply with certain
nondiscrimination requirements. You should consult your employer to
determine whether the nondiscrimination rules apply to you.
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 purpose to any person other than
IDS Life of New York. 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 the retirement date, 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 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, or other date as
permitted by the Code; and
o the payout period does not extend beyond the beneficiary's life or
life expectancy.
<PAGE>
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;
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.
<PAGE>
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 you elect. 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 while both the annuitant and a joint annuitant 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 that you elect. 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.")
Restrictions on payout options: 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 fixed-dollar payouts under Plan B, with 120 monthly payouts
guaranteed, unless this option is contrary to applicable provisions of 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.
<PAGE>
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 according to our records.
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.
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, after separation from service, 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 during or after the year you attain age 55.
Other penalties or exceptions may apply.
<PAGE>
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.
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.
<PAGE>
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. 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>
Distribution of the certificates
American Express Financial Advisors Inc., a registered broker/dealer and an
affiliate of IDS Life of New York is the sole distributor of the certificates.
IDS Life of New York 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 of New York
The Employee Benefit Annuity is issued by IDS Life of New York, a wholly-owned
subsidiary of IDS Life, which is a wholly-owned subsidiary of AEFC. American
Express Financial Corporation is a wholly-owned subsidiary of the American
Express Company. American Express Company is a financial services company
principally engaged through subsidiaries (in addition to AEFC) in travel related
services, investment services and international banking services.
IDS Life of New York is a stock life insurance company organized in 1972 under
the laws of the State of New York and located at 20 Madison Ave. Ext., Albany,
NY. IDS Life of New York is licensed in New York and North Dakota and conducts a
conventional life insurance business in the state of New York.
American Express Financial Advisors Inc. offers mutual funds, investment
certificates and a broad range of financial management services. IDS Life of
New York 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 8600 financial advisors.
Other subsidiaries provide investment management and related services for
pension, profit-sharing, employee savings and endowment funds of businesses and
institutions.
Year 2000
The Year 2000 issue is the result of computer programs having been written using
two-digits rather than four to define a year. Any programs that have
time-sensitive software may recognize a date using "00" as the year 1900 rather
than 2000. This could result in the failure of major systems or miscalculations,
which could have a material impact on the operations of the Variable Accounts.
The Variable Accounts have no computer systems of their own but are dependent
upon the systems maintained by AEFC and certain other third parties.
<PAGE>
A comprehensive review of AEFC's computer systems and business processes has
been conducted to identify the major systems that could be affected by the Year
2000 issue. Steps are being taken to resolve any potential problems including
modification to existing software and the purchase of new software. These
measures are scheduled to be completed and tested on a timely basis. AEFC's goal
is to complete internal remediation and testing of each system by the end of
1998 and to continue compliance efforts through 1999. The Year 2000 readiness of
other third parties whose system failures could have an impact on the Variable
Account's operations currently is being evaluated. The potential materiality of
any such impact is not known at this time.
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>
Table of contents of the Statement of Additional Information
Performance information...................................................
Calculating annuity payouts...............................................
Rating agencies...........................................................
Principal underwriter.....................................................
Independent auditors......................................................
Prospectus................................................................
Financial statements -
.........IDS Life of New York Accounts
.........4, 5, 6, 9, 10, 11, 12, 13 and 14
.........IDS Life Insurance Company of New York
- --------------------------------------------------------------------------
Please check the appropriate box to receive a copy of the Statement of
Additional Information for:
_____ IDS Life of New York Employee Benefit Annuity
_____ IDS Life Retirement Annuity Mutual Funds
Please return this request to:
IDS Life of New York Annuity Service
IDS Life Insurance Company of New York
P.O. Box 5144
Albany, NY 12205
Your name _______________________________________________________
Address _________________________________________________________
City ______________________ State ______________ Zip _______________
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
for
EMPLOYEE BENEFIT ANNUITY
IDS LIFE OF NEW YORK ACCOUNTS 4, 5, 6, 9, 10, 11, 12, 13 and 14
May 1, 1998
IDS Life of New York Accounts 4, 5, 6, 9, 10, 11, 12, 13 and 14 are separate
accounts established and maintained by IDS Life Insurance Company of New York
(IDS Life of New York).
This Statement of Additional Information, dated May 1, 1998, is not a
prospectus. It should be read together with the accounts' prospectus, dated May
1, 1998, which may be obtained from your financial advisor, or by writing or
calling IDS Life of New York Annuity Service at the address or telephone number
below.
IDS Life of New York Annuity Service
20 Madison Avenue Extension
Albany, NY 12203
800-541-2251
<PAGE>
TABLE OF CONTENTS
Performance Information............................................p. 3
Calculating Annuity Payouts........................................p. 6
Rating Agencies....................................................p. 7
Principal Underwriter..............................................p. 8
Independent Auditors...............................................p. 8
Prospectus.........................................................p. 8
Financial Statements
.........- IDS Life of New York Accounts 4, 5, 6, 9, 10, 11, 12, 13 and 14
.........- IDS Life Insurance Company of New York
<PAGE>
PERFORMANCE INFORMATION
Calculation of yield for Account 6
IDS Life of New York Account 6, which invests in IDS Life Moneyshare Fund,
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) x (365/7)] - 1
Based on the seven-day period ended Dec. 31, 1997, the account's annualized
simple yield was 4.11% and its compound yield was 4.19%.
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 6 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 6 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>
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.
Based on the 30-day period ended Dec. 31, 1997, the annualized yield was 6.77%
for Account 5, 5.88% for Account 12 and 8.24% for Account 13.
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 ten 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).
The following performance figures are calculated on the basis of historical
performance of the funds.
Average Annual Total Return For Period Ended: Dec. 31, 1997
<PAGE>
Average Annual Total Return with Surrender
<TABLE>
<CAPTION>
Since
Account investing in: 1 Year 5 Year 10 Year Inception
- --------------------
IDS Life
<S> <C> <C> <C> <C>
Aggressive Growth Fund (1/92)* 3.34% 10.63% -- 10.38%
Capital Resource Fund (10/81) 14.71% 10.19% 13.39% --
International Equity Fund (1/92) -6.47% 8.07% -- 6.35%
Managed Fund (4/86) 10.13% 11.08% 12.56% --
Moneyshare Fund (10/81) -4.05% 1.98% 4.36% --
Special Income Fund (10/81) -0.42% 7.30% 8.57% --
Growth Dimensions Fund (4/96) 14.94% -- -- 16.05%
Global Yield Fund (4/96) -5.36% -- -- 1.13%
Income Advantage Fund (4/96) 3.59% -- -- 5.63%
Average Annual Total Return without Surrender
Since
Account investing in: 1 Year 5 Year 10 Year Inception
- --------------------
IDS Life
Aggressive Growth Fund (1/92) 11.34% 11.55% -- 11.09%
Capital Resource Fund (10/81) 22.71% 11.13% 13.39% --
International Equity Fund (1/92) 1.53% 9.08% -- 7.20%
Managed Fund (4/86) 18.13% 11.98% 12.63% --
Moneyshare Fund (10/81) 3.50% 3.24% 4.36% --
Special Income Fund (10/81) 7.52% 8.31% 8.57% --
Growth Dimensions Fund (4/96) 22.94% -- -- 20.34%
Global Yield Fund (4/96) 2.64% -- -- 5.82%
Income Advantage Fund (4/96) 11.59% -- -- 10.18%
</TABLE>
* inception dates of the funds are shown in parentheses
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).
<PAGE>
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. In addition, performance figures may
be shown without the deduction of a surrender charge.
Total return figures reflect the deduction of all applicable charges including
the administrative charge and mortality and expense risk fee.
Performance of the accounts may be quoted or compared to rankings, yields, or
returns or used in variable annuity accumulation or settlement illustrations 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, CDA Technologies, 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, Morningstar, 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.
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.
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.
<PAGE>
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 3.5% rate of return, which is reinvested and helps to
support future payouts.
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 the annuity table. With an assumed investment rate of
3.5%, the neutralizing factor is 0.999906 for a one day valuation period.
Net Investment Factor:
o Determined 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 of New York 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.
<PAGE>
This information relates only to the fixed account and reflects IDS Life of New
York'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 American Express Financial
Advisors Inc. which offers the variable annuities on a continuous basis.
Surrender charges received by IDS Life of New York for 1997, 1996 and 1995,
aggregated $688,445, $551,374, and $464,724, respectively. Commissions paid by
IDS Life of New York for 1997, 1996 and 1995, aggregated $1,067,783, $1,036,511,
and $681,615, respectively. The surrender charges were applied toward payment of
commissions.
INDEPENDENT AUDITORS
The financial statements of IDS Life of New York Accounts 4, 5, 6, 9, 10, 11,
12, 13 and 14 including the statements of net assets as of December 31, 1997,
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, except for IDS Life of New York Accounts 12, 13 and 14 which
are for the year then ended and the period April 30, 1996 (commencement of
operations) to December 31, 1996 and the financial statements of IDS Life
Insurance Company of New York as of December 31, 1997 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.
PROSPECTUS
The prospectus dated May 1, 1998, is hereby incorporated in this Statement of
Additional Information by reference.
<PAGE>
<PAGE>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13 and 14
Annual Financial Information
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company of New York
We have audited the accompanying individual and combined statements of net
assets of IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13 and 14 as
of December 31, 1997, 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, except for Accounts 12, 13 and 14 which are
for the year ended December 31, 1997 and the period April 30, 1996
(commencement of operations) to December 31, 1996. These financial statements
are the responsibility of the management of IDS Life Insurance Company of New
York. 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, 1997
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 of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13 and 14 at December 31,
1997, 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 13, 1998
<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Net Assets Dec. 31, 1997
Segregated Asset Account
-----------------------------------------------------------------------------------------
Assets 4 10 11 5 6
- ------------------------------------------------------------------------------------------------------------------------------------
Investments in shares of mutual funds,
at market value: IDS Life Capital
Resource Fund - 8,344,103 shares
at net asset value
<S> <C> <C> <C> <C> <C> <C>
of $28.58 per share (cost $202,873,711) $ 238,441,743 $ - $ - $ - $ -
IDS Life International Equity Fund -
8,473,882 shares at net asset value
of $13.63 per share (cost $105,569,218) - 115,489,858 - - -
IDS Life Aggressive Growth Fund -
9,356,227 shares at net asset value
of $16.07 per share (cost $124,879,578) - - 150,360,720 - -
IDS Life Special Income Fund -
7,467,419 shares at net asset value
of $11.80 per share (cost $85,305,822) - - - 88,078,814 -
IDS Life Moneyshare Fund, Inc. -
10,189,123 shares at net asset value
of $1.00 per share (cost $10,188,612) - - - - 10,189,274
IDS Life Managed Fund, Inc. -
14,416,209 shares at net asset value
of $18.04 per share (cost $206,233,388) - - - - -
IDS Life Global Yield Fund -
592,680 shares at net asset value
of $10.39 per share (cost $6,076,439) - - - - -
IDS Life Income Advantage Fund -
1,468,775 shares at net asset value
of $10.38 per share (cost $14,880,682) - - - - -
IDS Life Growth Dimensions Fund -
6,456,777 shares at net asset value
of $13.70 per share (cost $74,485,895) - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
238,441,743 115,489,858 150,360,720 88,078,814 10,189,274
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends receivable - - - 545,863 47,422
Accounts receivable from IDS Life of New York
for contract purchase payments 12,197 11,137 12,592 45,656 12,310
Receivable from mutual funds for
share redemptions 97,244 51,143 42,227 31 -
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 238,551,184 115,552,138 150,415,539 88,670,364 10,249,006
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Payable to IDS Life of New York for:
Mortality and expense risk fee 216,111 104,863 135,869 79,825 9,294
Contract terminations 97,244 51,143 42,227 31 -
Payable to mutual funds for investments
purchased 12,197 11,137 12,592 511,695 50,438
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 325,552 167,143 190,688 591,551 59,732
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to contracts in
accumulation period 237,904,641 115,346,480 150,131,593 87,804,074 10,105,542
Net assets applicable to contracts in
payment period 320,991 38,515 93,258 274,739 83,732
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets $ 238,225,632 $ 115,384,995 $ 150,224,851 $ 88,078,813 $ 10,189,274
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulation units outstanding 41,665,709 75,831,387 79,813,154 21,881,898 4,651,207
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value per accumulation unit $ 5.71 $ 1.52 $ 1.88 $ 4.01 $ 2.17
- ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Net Assets - continued Dec. 31, 1997
Segregated Asset Account
---------------------------------------------------------------------------- Combined
Assets 9 12 13 14 Variable
Account
- ------------------------------------------------------------------------------------------------------------------------------------
Investments in shares of mutual funds,
at market value: IDS Life Capital
Resource Fund - 8,344,103 shares
at net asset value
<S> <C> <C> <C> <C> <C>
of $28.58 per share (cost $202,873,711) $ - $ - $ - $ - $ 238,441,743
IDS Life International Equity Fund -
8,473,882 shares at net asset value
of $13.63 per share (cost $105,569,218) - - - - 115,489,858
IDS Life Aggressive Growth Fund -
9,356,227 shares at net asset value
of $16.07 per share (cost $124,879,578) - - - - 150,360,720
IDS Life Special Income Fund -
7,467,419 shares at net asset value
of $11.80 per share (cost $85,305,822) - - - - 88,078,814
IDS Life Moneyshare Fund, Inc. -
10,189,123 shares at net asset value
of $1.00 per share (cost $10,188,612) - - - - 10,189,274
IDS Life Managed Fund, Inc. -
14,416,209 shares at net asset value
of $18.04 per share (cost $206,233,388) 260,033,184 - - - 260,033,184
IDS Life Global Yield Fund -
592,680 shares at net asset value
of $10.39 per share (cost $6,076,439) - 6,156,778 - - 6,156,778
IDS Life Income Advantage Fund -
1,468,775 shares at net asset value
of $10.38 per share (cost $14,880,682) - - 15,253,010 - 15,253,010
IDS Life Growth Dimensions Fund -
6,456,777 shares at net asset value
of $13.70 per share (cost $74,485,895) - - - 88,457,834 88,457,834
- ------------------------------------------------------------------------------------------------------------------------------------
260,033,184 6,156,778 15,253,010 88,457,834 972,461,215
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends receivable - 32,243 110,921 - 736,449
Accounts receivable from IDS Life of New York
for contract purchase payments 14,374 1,295 14,220 62,411 186,192
Receivable from mutual funds for
share redemptions 19,045 30 30 - 209,750
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 260,066,603 6,190,346 15,378,181 88,520,245 973,593,606
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Payable to IDS Life of New York for:
Mortality and expense risk fee 235,666 5,448 13,410 78,737 879,223
Contract terminations 19,045 30 30 - 209,750
Payable to mutual funds for investments
purchased 14,374 28,090 111,731 62,411 814,665
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 269,085 33,568 125,171 141,148 1,903,638
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to contracts in
accumulation period 258,393,009 6,145,413 15,203,560 88,246,916 969,281,228
Net assets applicable to contracts in
payment period 1,404,509 11,365 49,450 132,181 2,408,740
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets $ 259,797,518 $ 6,156,778 $ 15,253,010 $ 88,379,097 $ 971,689,968
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulation units outstanding 73,556,872 5,577,842 12,893,865 64,612,620
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value per accumulation unit $3.51 $1.10 $1.18 $1.37
- ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Operations Year ended Dec. 31, 1997
Segregated Asset Account
------------------------------------------------------------------------------------
Investment income 4 10 11 5 6
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Dividend income from mutual funds $ 6,579,139 $ 4,328,095 $ 13,193,361 $ 8,286,724 $ 592,731
Mortality and expense risk fee 2,317,773 1,183,901 1,395,902 898,649 118,015
- ------------------------------------------------------------------------------------------------------------------------------------
Investment income (loss) - net 4,261,366 3,144,194 11,797,459 7,388,075 474,716
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investments - net
- ------------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) on sales of investments in mutual funds:
Proceeds from sales 33,866,544 7,597,907 5,088,031 11,234,457 8,650,242
Cost of investments sold 28,905,416 6,692,110 4,097,968 10,716,994 8,648,658
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 4,961,128 905,797 990,063 517,463 1,584
- ------------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or
depreciation of investments 37,279,668 (1,978,110) 2,801,037 (1,216,238) (1,623)
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 42,240,796 (1,072,313) 3,791,100 (698,775) (39)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations $ 46,502,162 $ 2,071,881 $ 15,588,559 $ 6,689,300 $ 474,677
- ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Operations - continued Year ended Dec. 31, 1997
Segregated Asset Account
---------------------------------------------------------------------- Combined
Investment income 9 12 13 14 Variable
Account
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Dividend income from mutual funds $ 26,190,249 $ 227,376 $ 924,812 $ 562,768 $ 60,885,255
Mortality and expense risk fee 2,510,237 44,886 100,088 651,337 9,220,788
- ------------------------------------------------------------------------------------------------------------------------------------
Investment income (loss) - net 23,680,012 182,490 824,724 (88,569) 51,664,467
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investments - net
- ------------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) on sales of investments in mutual funds:
Proceeds from sales 12,333,516 180,227 121,791 243,682 79,316,397
Cost of investments sold 9,361,450 176,939 116,844 207,572 68,923,951
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 2,972,066 3,288 4,947 36,110 10,392,446
- ------------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or
depreciation of investments 14,481,685 2,041 296,319 12,608,281 64,273,060
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 17,453,751 5,329 301,266 12,644,391 74,665,506
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations $ 41,133,763 $ 187,819 $ 1,125,990 $ 12,555,822 $ 126,329,973
- ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4,10, 11, 5, 6, 9, 12, 13, and 14
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets Year ended Dec. 31, 1997
Segregated Asset Account
----------------------------------------------------------------------------------------
Operations 4 10 11 5 6
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment income (loss) - net $ 4,261,366 $ 3,144,194 $ 11,797,459 $ 7,388,075 $ 474,716
Net realized gain (loss) on investments 4,961,128 905,797 990,063 517,463 1,584
Net change in unrealized appreciation or
depreciation of investments 37,279,668 (1,978,110) 2,801,037 (1,216,238) (1,623)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 46,502,162 2,071,881 15,588,559 6,689,300 474,677
- ------------------------------------------------------------------------------------------------------------------------------------
Contract Transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Contract purchase payments 7,229,181 4,673,649 5,879,059 2,385,529 1,832,361
Net transfers* (19,890,234) (711,075) 4,544,656 (5,786,440) (3,125,491)
Transfers for policy loans 272,584 118,146 139,573 59,837 28,176
Annuity payments (22,358) (4,710) (5,390) (17,323) (2,589)
Contract charges (191,583) (95,854) (111,055) (64,936) (6,932)
Contract terminations:
Surrender benefits (14,650,463) (6,643,035) (6,495,887) (6,268,353) (1,274,842)
Death benefits (942,624) (439,998) (360,612) (411,415) (101,744)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from
contract transactions (28,195,497) (3,102,877) 3,590,344 (10,103,101) (2,651,061)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at beginning of year 219,918,967 116,415,991 131,045,948 91,492,614 12,365,658
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 238,225,632 $ 115,384,995 $ 150,224,851 $ 88,078,813 $ 10,189,274
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulation Unit Activity
- ------------------------------------------------------------------------------------------------------------------------------------
Units outstanding at beginning of year 47,282,795 77,830,409 77,672,683 24,424,365 5,926,901
Contract purchase payments 1,421,479 3,057,399 3,418,102 622,432 862,329
Net transfers* (4,052,868) (461,511) 2,638,842 (1,408,968) (1,391,037)
Transfers for policy loans 51,985 76,481 80,471 15,521 13,228
Contract charges (37,611) (62,637) (64,104) (17,032) (3,320)
Contract terminations:
Surrender benefits (2,816,039) (4,322,303) (3,722,288) (1,646,845) (708,870)
Death benefits (184,032) (286,451) (210,552) (107,575) (48,024)
- ------------------------------------------------------------------------------------------------------------------------------------
Units outstanding at end of year 41,665,709 75,831,387 79,813,154 21,881,898 4,651,207
- ------------------------------------------------------------------------------------------------------------------------------------
*Includes transfer activity from (to) other accounts and transfers (from) to IDS
Life of New York for conversion from (to) fixed account.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets - continued Year ended Dec. 31, 1997
Segregated Asset Account
----------------------------------------------------------------------------- Combined
Operations 9 12 13 14 Variable
Account
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment income (loss) - net $ 23,680,012 $ 182,490 $ 824,724 $ (88,569) $ 51,664,467
Net realized gain (loss) on investments 2,972,066 3,288 4,947 36,110 10,392,446
Net change in unrealized appreciation or
depreciation of investments 14,481,685 2,041 296,319 12,608,281 64,273,060
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 41,133,763 187,819 1,125,990 12,555,822 126,329,973
- ------------------------------------------------------------------------------------------------------------------------------------
Contract Transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Contract purchase payments 7,699,003 270,483 540,362 5,022,138 35,531,765
Net transfers* 3,948,878 3,401,265 9,201,341 42,545,064 34,127,964
Transfers for policy loans 226,152 3,119 6,882 85,728 940,197
Annuity payments (107,573) (673) (1,549) (7,187) (169,352)
Contract charges (193,749) (2,380) (5,625) (45,102) (717,216)
Contract terminations:
Surrender benefits (15,399,711) (162,887) (484,531) (2,553,237) (53,932,946)
Death benefits (1,763,994) (17,785) (36,753) (123,631) (4,198,556)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from
contract transactions (5,590,994) 3,491,142 9,220,127 44,923,773 11,581,856
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at beginning of year 224,254,749 2,477,817 4,906,893 30,899,502 833,778,139
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 259,797,518 $ 6,156,778 $ 15,253,010 $ 88,379,097 $ 971,689,968
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulation Unit Activity
- ------------------------------------------------------------------------------------------------------------------------------------
Units outstanding at beginning of year 75,218,566 2,311,440 4,671,075 27,817,069
Contract purchase payments 2,338,828 252,875 498,343 4,088,492
Net transfers* 1,372,623 3,188,152 8,236,920 34,812,118
Transfers for policy loans 69,343 2,904 6,047 69,853
Contract charges (59,844) (2,228) (5,010) (35,850)
Contract terminations:
Surrender benefits (4,832,667) (159,040) (482,092) (2,043,382)
Death benefits (549,977) (16,261) (31,418) (95,680)
- ------------------------------------------------------------------------------------------------------------------------------------
Units outstanding at end of year 73,556,872 5,577,842 12,893,865 64,612,620
- ------------------------------------------------------------------------------------------------------------------------------------
*Includes transfer activity from (to) other accounts and transfers (from) to IDS
Life of New York for conversion from (to) fixed account.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets Year ended Dec. 31, 1996
Segregated Asset Account
-----------------------------------------------------------------------------------------
Operations 4 10 11 5 6
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment income (loss) - net $ 32,567,928 $ 2,980,565 $ 12,381,170 $ 5,956,303 $ 436,602
Net realized gain (loss) on investments 1,192,288 83,073 299,147 199,465 1,202
Net change in unrealized appreciation or
depreciation of investments (19,655,157) 5,168,183 2,596,119 (968,877) (169)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 14,105,059 8,231,821 15,276,436 5,186,891 437,635
- ------------------------------------------------------------------------------------------------------------------------------------
Contract Transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Contract purchase payments 20,330,907 12,049,591 13,404,656 10,398,139 8,607,758
Net transfers** 1,600,158 12,202,696 15,280,912 (2,184,401) (6,469,416)
Transfers for policy loans 202,501 103,529 109,247 54,947 63,917
Annuity payments (15,604) (2,155) (1,422) (15,209) -
Contract charges (202,297) (93,716) (100,503) (71,767) (7,431)
Contract terminations:
Surrender benefits (10,133,424) (3,283,391) (3,668,917) (5,387,735) (986,101)
Death benefits (1,010,404) (445,933) (490,164) (969,384) (148,200)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from
contract transactions 10,771,837 20,530,621 24,533,809 1,824,590 1,060,527
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at beginning of year 195,042,071 87,653,549 91,235,703 84,481,133 10,867,496
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 219,918,967 $ 116,415,991 $ 131,045,948 $ 91,492,614 $ 12,365,658
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulation Unit Activity
- ------------------------------------------------------------------------------------------------------------------------------------
Units outstanding at beginning of year 44,849,219 63,576,047 62,233,323 23,903,081 5,445,411
Contract purchase payments 4,567,169 8,408,019 8,509,131 2,970,770 4,416,368
Net transfers** 404,594 8,480,752 9,621,711 (594,109) (3,159,416)
Transfers for policy loans 45,098 71,375 68,531 15,495 31,550
Contract charges (45,712) (65,492) (63,531) (20,385) (3,814)
Contract terminations:
Surrender benefits (2,293,619) (2,289,122) (2,326,635) (1,565,420) (731,034)
Death benefits (243,954) (351,170) (369,847) (285,067) (72,164)
- ------------------------------------------------------------------------------------------------------------------------------------
Units outstanding at end of year 47,282,795 77,830,409 77,672,683 24,424,365 5,926,901
- ------------------------------------------------------------------------------------------------------------------------------------
**Includes transfer activity from (to) other accounts and transfers (from) to
IDS Life of New York for conversion from (to) fixed account.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13, and 14
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets - continued Year ended Dec. 31, 1996
Segregated Asset Account
---------------------------------------------------------------------------- Combined
Operations 9 12* 13* 14* Variable
Account
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment income (loss) - net $ 17,145,312 $ 20,829 $ 118,109 $ (15,724) $ 71,591,094
Net realized gain (loss) on investments 1,388,654 1,256 307 749 3,166,141
Net change in unrealized appreciation or
depreciation of investments 12,125,056 78,298 76,009 1,363,658 783,120
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 30,659,022 100,383 194,425 1,348,683 75,540,355
- ------------------------------------------------------------------------------------------------------------------------------------
Contract Transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Contract purchase payments 14,199,518 729,261 1,221,447 4,412,059 85,353,336
Net transfers** 3,533,766 1,658,796 3,530,908 25,471,387 54,624,806
Transfers for policy loans 250,240 515 663 11,905 797,464
Annuity payments (53,767) - - (1,152) (89,309)
Contract charges (185,940) (363) (773) (5,767) (668,557)
Contract terminations:
Surrender benefits (10,923,388) (10,775) (39,777) (337,613) (34,771,121)
Death benefits (1,123,893) - - - (4,187,978)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from
contract transactions 5,696,536 2,377,434 4,712,468 29,550,819 101,058,641
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at beginning of year 187,899,191 - - - 657,179,143
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 224,254,749 $ 2,477,817 $ 4,906,893 $ 30,899,502 $ 833,778,139
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulation Unit Activity
- ------------------------------------------------------------------------------------------------------------------------------------
Units outstanding at beginning of year 72,999,139 - - -
Contract purchase payments 5,336,610 723,874 1,249,285 4,300,482
Net transfers** 1,346,249 1,611,211 3,491,927 23,898,488
Transfers for policy loans 92,249 483 638 10,893
Contract charges (69,479) (348) (762) (5,376)
Contract terminations:
Surrender benefits (4,029,397) (23,780) (70,013) (387,418)
Death benefits (456,805) - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Units outstanding at end of year 75,218,566 2,311,440 4,671,075 27,817,069
- ------------------------------------------------------------------------------------------------------------------------------------
*For the period April 30, 1996 (commencement of operations) to Dec. 31, 1996.
**Includes transfer activity from (to) other accounts and transfers (from) to
IDS Life of New York for conversion from (to) fixed account.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13 and 14
Notes to Financial Statements
- ---------------------------------------------------------
1. Organization
IDS Life of New York Accounts 4, 10, 11, 5, 6, 9, 12, 13 and 14 were established
as segregated asset accounts of IDS Life Insurance Company of New York (IDS Life
of New York) under New York law and are registered collectively as a single unit
investment trust under the Investment Company Act of 1940. Accounts 4, 5 and 6
were established on Nov. 12, 1981 and commenced operations on Oct. 25, 1982.
Account 9 was established on Feb. 12, 1986 and commenced operations on April 30,
1986. Accounts 10 and 11 were established on Oct. 8, 1991 and commenced
operations on Jan. 13, 1992. Accounts 12, 13 and 14 were established on April
17, 1996 and commenced operations on April 30, 1996. IDS Life of New York
Accounts 4, 10, 11, 5, 6, 9, 12, 13 and 14 are collectively referred to as "the
Accounts."
The assets of the Accounts are held for the exclusive benefit of the variable
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 of
New York. Contract owners allocate their variable purchase payments to one or
more of the nine segregated asset accounts. Such funds are then invested in
shares of nine mutual funds organized by IDS Life Insurance Company (IDS Life)
as the investment vehicles for variable annuity contracts issued by IDS Life of
New York, IDS Life, and other of its subsidiaries.
Each Fund is registered under the Investment Company Act of 1940 as a
diversified, (non-diversified for Global Yield) open-end management investment
company or series of an open-end management investment company. IDS Life Capital
Resource Fund, IDS Life Special Income Fund and IDS Life Moneyshare Fund, Inc.
commenced operations on Oct. 13, 1981. IDS Life Managed Fund, Inc. commenced
operations on April 30, 1986. IDS Life Aggressive Growth Fund and IDS Life
International Equity Fund commenced operations on Jan. 13, 1992. IDS Life Global
Yield Fund, IDS Life Income Advantage Fund and IDS Life Growth Dimensions Fund
commenced operations on April 30, 1996. Funds allocated to IDS Life of New York
Account 4 are invested in the shares of IDS Life Capital Resource Fund; IDS Life
of New York Account 10 invests in the shares of IDS Life International Equity
Fund; IDS Life of New York Account 11 invests in the shares of IDS Life
Aggressive Growth Fund; IDS Life of New York Account 5 invests in the shares of
IDS Life Special Income Fund; IDS Life of New York Account 6 invests in the
shares of IDS Life Moneyshare Fund, Inc.; IDS Life of New York Account 9 invests
in the shares of IDS Life Managed Fund, Inc.; IDS Life of New York Account 12
invests in the shares of IDS Life Global Yield Fund; IDS Life of New York
Account 13 invests in the shares of IDS Life Income Advantage Fund and IDS Life
of New York Account 14 invests in the shares of IDS Life Growth Dimension Fund.
IDS Life Insurance Company, parent company of IDS Life of New York, serves as
investment manager and principal underwriter for the underlying nine mutual
funds. American Express Financial Corporation (AEFC), an affiliated company, is
the investment advisor for each of the funds. American Express Asset Management
International, Inc. an affiliated company, is the sub-investment advisor for IDS
Life International Equity Fund. American Express Financial Advisors Inc., an
affiliated company, is the principal underwriter for the Accounts.
- ---------------------------------------------------------
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 mutual 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. Dividend distributions received from the mutual funds are
reinvested 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.
Use of Estimates
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 disclosures of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increase and decrease in net assets from operations
during the period. Actual results could differ from those estimates.
Federal Income Taxes
IDS Life of New York is taxed as a life insurance company. The Accounts are
treated as part of IDS Life of New York for federal income tax purposes. Under
existing tax law, no income taxes are payable with respect to any investment
income of the Accounts.
- --------------------------------------------------------
3. Mortality and Expense Risk Fee and Administrative Charges
IDS Life of New York makes contractual assurances to the Accounts that possible
future adverse changes in contract expenses and mortality experience of the
annuitants and beneficiaries will not affect the Accounts. The mortality and
expense risk fee paid to IDS Life of New York 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 $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 or
certificate 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 of New York.
A contingent deferred sales charge (surrender 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
eleven years,
c) Employee Benefit Annuity Certificate surrenders during the first eleven
years, and
d) Flexible Annuity contract surrenders of amounts other than those
representing earnings or those representing purchase payments six
contract years old or more.
Charges by IDS Life of New York for surrenders are not identified on an
individual segregated asset account basis. Charges for all segregated asset
accounts amounted to $688,445 in 1997 and $551,374 in 1996. Such charges are not
treated as a separate expense of the Accounts. They are ultimately deducted from
contract surrender benefits paid by IDS Life of New York.
- ---------------------------------------------------------
4. Investment Transactions
The Accounts' purchases of mutual fund shares including reinvestment of dividend
distributions, were as follows:
Year ended Dec. 31,
Account Investment 1997 1996
4 IDS Life Capital Resource Fund........ $ 9,955,200 $ 56,554,274
10 IDS Life International Equity Fund.... 7,642,538 24,422,664
11 IDS Life Aggressive Growth Fund....... 20,497,759 38,284,864
5 IDS Life Special Income Fund.......... 8,519,432 13,748,022
6 IDS Life Moneyshare Fund, Inc......... 6,472,896 9,156,896
9 IDS Life Managed Fund, Inc............ 30,461,765 30,751,777
12 IDS Life Global Yield Fund............ 3,853,859 2,498,462*
13 IDS Life Income Advantage Fund. ...... 10,166,644 4,869,583*
14 IDS Life Growth Dimensions Fund....... 45,132,222 29,583,647*
Combined Variable Account ............ $142,702,315 $209,870,189
*For the period April 30, 1996 (commencement of operations)to Dec. 31, 1996.
- -----------------------------------------------------------------------
5. Year 2000 Issue (Unaudited)
The Year 2000 issue is the result of computer programs having been written using
two digits rather than four to define a year. Any programs that have
time-sensitive software may recognize a date using "00" as the year 1900 rather
than 2000. This could result in the failure of major systems or miscalculations,
which could have a material impact on the operations of the Variable Accounts.
The Variable Accounts have no computer systems of their own but are dependent
upon the systems maintained by AEFC and certain other third parties.
A comprehensive review of AEFC's computer systems and business processes has
been conducted to identify the major systems that could be affected by the Year
2000 issue. Steps are being taken to resolve any potential problems including
modification to existing software and the purchase of new software. These
measures are scheduled to be completed and tested on a timely basis. AEFC's goal
is to complete internal remediation and testing of each system by the end of
1998 and to continue compliance efforts through 1999.
The Year 2000 readiness of other third parties whose system failures could have
an impact on the Variable Accounts' operations is currently being evaluated. The
potential materiality of any such impact is not known at this time.
<PAGE>
<PAGE>
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company of New York
We have audited the accompanying balance sheets of IDS Life
Insurance Company of New York (a wholly owned subsidiary of IDS
Life Insurance Company) as of December 31, 1997 and 1996, and the
related statements of income, stockholder's equity and cash flows
for each of the three years in the period ended December 31, 1997.
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 financial position
of IDS Life Insurance Company of New York at December 31, 1997
and 1996, and the results of its operations and its cash flows
for each of the three years in the period ended December 31,
1997, in conformity with generally accepted accounting
principles.
Ernst & Young LLP
Minneapolis, Minnesota
February 5, 1998
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
- --------------------------------------------------------------------------
BALANCE SHEETS Dec. 31, 1997 Dec. 31, 1996
ASSETS (thousands)
- --------------------------------------------------------------------------
Investments:
Fixed maturities:
Held to maturity, at amortized cost (Fair value:
1997, $562,979; 1996, $604,635) $ 535,651 $ 585,812
Available for sale, at fair value (Fair value:
1996, $582,962; 1996, $590,608) 603,576 601,623
Mortgage loans on real estate 178,826 160,017
Policy loans 23,349 20,077
Other investments 970 1,374
- --------------------------------------------------------------------------
Total investments 1,342,372 1,368,903
- --------------------------------------------------------------------------
Accrued investment income 20,205 21,068
Deferred policy acquisition costs 126,614 119,183
Other assets 4,227 3,950
Separate account assets 1,236,759 950,018
- --------------------------------------------------------------------------
Total assets $2,730,177 $2,463,122
- --------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDER'S EQUITY
- --------------------------------------------------------------------------
Liabilities:
Future policy benefits:
Fixed annuities $964,483 $1,054,954
Universal life-type insurance 147,744 142,278
Traditional life, disability income
and long-term care insurance 50,469 45,338
Policy claims and other policyholders' funds 4,013 3,155
Deferred income taxes 11,445 9,046
Amounts due to brokers 29,054 3,007
Other liabilities 28,931 25,463
Separate account liabilities 1,236,759 950,018
- --------------------------------------------------------------------------
Total liabilities 2,472,898 2,233,259
- --------------------------------------------------------------------------
Stockholder's equity:
Capital stock, $10 par value per share;
200,000 shares authorized, issued and outstanding 2,000 2,000
Additional paid-in capital 49,000 49,000
Net unrealized gain on investments 13,175 6,937
Retained earnings 193,104 171,926
- --------------------------------------------------------------------------
Total stockholder's equity 257,279 229,863
- --------------------------------------------------------------------------
Total liabilities and stockholder's equity $2,730,177 $2,463,122
- --------------------------------------------------------------------------
See accompanying notes.
<PAGE>
- -------------------------------------------------------------------------------
STATEMENTS OF INCOME
Years ended Dec. 31,
1997 1996 1995
(thousands)
- -------------------------------------------------------------------------------
Revenues:
Traditional life, disability income
and long-term care insurance
premiums $ 12,376 $ 10,931 $ 9,280
Policyholder and contractholder charges 18,319 15,832 13,216
Mortality and expense risk fees 11,312 8,574 6,213
Net investment income 106,274 109,468 110,924
Net realized gains (losses) on investments 547 (1,424) 1,548
- -------------------------------------------------------------------------------
Total revenues 148,828 143,381 141,181
- -------------------------------------------------------------------------------
Benefits and expenses:
Death and other benefits:
Traditional life, disability income
and long-term care insurance 3,633 4,182 3,354
Universal life-type insurance
and investment contracts 3,852 4,409 4,548
Increase in liabilities for future
policy benefits for traditional life,
disability income and
long-term care insurance 3,979 2,324 1,958
Interest credited on universal life-type
insurance and investment contracts 62,294 65,099 68,630
Amortization of deferred policy
acquisition costs 17,201 16,071 13,085
Other insurance and operating expenses 10,220 8,972 7,474
- -------------------------------------------------------------------------------
Total benefits and expenses 101,179 101,057 99,049
- -------------------------------------------------------------------------------
Income before income taxes 47,649 42,324 42,132
Income taxes 16,471 14,640 14,745
- -------------------------------------------------------------------------------
Net income $ 31,178 $ 27,684 $ 27,387
- -------------------------------------------------------------------------------
See accompanying notes.
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF STOCKHOLDER'S EQUITY
Three years ended December 31, 1997
(thousands)
Additional Net Unrealized
Capital Paid-In Gains (Losses) Retained
Stock Capital on Investments Earnings Total
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1994 $2,000 $ 49,000 $ (12,369) $133,090 $171,721
Net income -- -- -- 27,387 27,387
Change in net unrealized
gains (losses) on investments -- -- 27,710 -- 27,710
Cash dividends -- -- -- (8,000) (8,000)
Loss on investment transfer
to parent -- -- -- (235) (235)
- ----------------------------------------------------------------------------------------
Balance, December 31, 1995 2,000 49,000 15,341 152,242 218,583
Net income -- -- -- 27,684 27,684
Change in net unrealized
gains (losses) on investments -- -- (8,404) -- (8,404)
Cash dividends -- -- -- (8,000) (8,000)
- ----------------------------------------------------------------------------------------
Balance, December 31, 1996 2,000 49,000 6,937 171,926 229,863
Net income -- -- -- 31,178 31,178
Change in net unrealized
gains (losses) on investments -- -- 6,238 -- 6,238
Cash dividends -- -- -- (10,000) (10,000)
- ----------------------------------------------------------------------------------------
Balance, December 31, 1997 $2,000 $49,000 $ 13,175 $193,104 $257,279
- ----------------------------------------------------------------------------------------
See accompanying notes.
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CASH FLOWS Years ended Dec. 31,
1997 1996 1995
(thousands)
- --------------------------------------------------------------------------------
Cash flows from operating activities:
Net income $31,178 $27,684 $27,387
Adjustments to reconcile net income to net
cash provided by operating activities:
Policy loan issuance, excluding universal
life-type insurance (3,073) (2,473) (2,093)
Policy loan repayment, excluding universal
life-type insurance 1,897 1,571 881
Change in accrued investment income 863 1,504 (1,055)
Change in deferred policy acquisition
costs, net (7,431) (9,087) (11,017)
Change in liabilities for future policy
benefits for traditional life, disability income
and long-term care insurance 5,131 2,861 1,931
Change in policy claims and other
policyholders' funds 858 (489) 427
Deferred income tax benefit (960) (2,095) (1,301)
Change in other liabilities 3,468 4,434 2,429
(Accretion of discount)
amortization of premium, net (352) (652) (480)
Net realized (gain) loss on investments (547) 1,424 (1,548)
Policyholder and contractholder
charges, non-cash (8,772) (7,831) (6,962)
Other, net (557) (1,781) (508)
- --------------------------------------------------------------------------------
Net cash provided by operating activities $21,703 $15,070 $ 8,091
- --------------------------------------------------------------------------------
Cash flows from investing activities:
Fixed maturities held to maturity:
Purchases $ -- $ -- $ (37,540)
Maturities, sinking fund payments and calls 36,511 39,082 34,216
Sales 12,616 14,465 28,905
Fixed maturities available for sale:
Purchases (101,818) (97,370) (133,503)
Maturities, sinking fund payments and calls 84,229 71,939 44,234
Sales 27,055 15,669 8,839
Other investments, excluding policy loans:
Purchases (33,243) (14,802) (1,939)
Sales 14,233 12,659 5,993
Change in amounts due from broker 995 -- --
Change in amounts due to broker 26,047 (6,993) 10,000
- --------------------------------------------------------------------------------
Net cash provided by (used in) investing
activities 66,625 34,649 (40,795)
- --------------------------------------------------------------------------------
Cash flows from financing activities:
Activity related to universal life-type insurance
and investment contracts:
Considerations received 112,732 131,011 159,431
Surrenders and death benefits (251,259) (236,689) (190,695)
Interest credited to account balances 62,294 65,099 68,630
Universal life-type insurance policy loans:
Issuance (4,848) (4,490) (4,870)
Repayment 2,753 3,350 2,946
Cash dividend to parent (10,000) (8,000) (8,000)
- --------------------------------------------------------------------------------
Net cash (used in) provided by financing
activities (88,328) (49,719) 27,442
- --------------------------------------------------------------------------------
Net (decrease) increase in cash and cash
equivalents -- -- (5,262)
Cash and cash equivalents at beginning of year -- -- 5,262
- --------------------------------------------------------------------------------
Cash and cash equivalents at end of year $ -- $ -- $ --
- --------------------------------------------------------------------------------
See accompanying notes.
<PAGE>
NOTES TO FINANCIAL STATEMENTS ($ thousands)
1. Summary of significant accounting policies
------------------------------------------
Nature of business
IDS Life Insurance Company of New York (the Company) is engaged in the
insurance and annuity business in the state of New York. The Company's
principal products are deferred annuities and universal life insurance
which are issued primarily to individuals. It offers single premium
and flexible 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.
Basis of presentation
The Company is a wholly owned subsidiary of IDS Life Insurance Company
(IDS Life), which is a wholly owned subsidiary of American Express
Financial Corporation (AEFC), which is a wholly owned subsidiary of
American Express Company. The accompanying financial statements have
been prepared in conformity with generally accepted accounting
principles which vary in certain respects from reporting practices
prescribed or permitted by the New York Department of Insurance as
reconciled in Note 11.
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 reported as a separate component
of stockholder's equity, net of deferred income taxes.
Realized investment gains or losses are determined on an identified
cost basis.
Prepayments are anticipated on certain investments in mortgage-backed
securities in determining the constant effective yield used to
recognize interest income. Prepayment estimates are based on
information received from brokers who deal in mortgage-backed
securities.
Mortgage loans on real estate are carried at amortized cost less
allowances for mortgage loan losses. The estimated 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.
<PAGE>
1. Summary of significant accounting policies (continued)
------------------------------------------------------
Impairment of mortgage loans 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
in an allowance for mortgage loan losses. The allowance for mortgage
loan losses is maintained at a level that management believes is
adequate to absorb estimated losses in the portfolio. The level of the
allowance 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 allowance for mortgage loan losses.
The Company generally stops accruing interest on mortgage loans for
which interest payments are delinquent more than three months. 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.
The cost of interest rate caps is amortized to investment income over
the life of the contracts and payments received as a result of these
agreements are recorded as investment income when realized. The
amortized cost of interest rate caps is included in other investments.
Policy loans are carried at the aggregate of the unpaid loan balances
which do not exceed the cash surrender values of the related policies.
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.
Statements 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 statements of cash flows for the years
ended December 31 is summarized as follows:
1997 1996 1995
---- ---- ----
Cash paid during the year for:
Income taxes $17,811 $15,247 $15,026
Interest on borrowings 1,026 777 742
Recognition of profits on annuity contracts and insurance policies
Profits on fixed deferred annuities are recognized by the Company over
the lives of the contracts, using primarily the interest method.
Profits 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.
<PAGE>
1. Summary of significant accounting policies (continued)
------------------------------------------------------
Premiums on traditional life, disability income and long-term care
insurance policies are recognized as revenue when 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.
Policyholder and contractholder charges include the monthly cost of
insurance charges and issue and administrative fees. These charges
also include the minimum death benefit guarantee fees received from the
variable life insurance separate accounts. Mortality and expense fees
are charged to the variable annuity and variable life insurance
separate accounts.
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 most single premium deferred
annuities and installment annuities are amortized in relation to
accumulation values and surrender charge revenue. The costs for
universal life-type insurance and certain installment annuities are
amortized as a percentage of the estimated gross profits expected to be
realized on the policies. For traditional life, disability income 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 and deferred annuities
are accumulation values.
Liabilities for fixed annuities in a benefit status are based on
mortality tables with various interest rates ranging from 5% to 9.5%,
depending on year of issue.
Liabilities for future benefits on traditional life insurance are based
on the net level premium method, using anticipated mortality, policy
persistency and interest earning rates. Anticipated mortality rates
are based on established industry mortality tables. Anticipated policy
persistency rates vary by policy form, issue age and policy duration
with persistency on cash value plans generally anticipated to be better
than persistency on term insurance plans. Anticipated interest rates
range from 4% to 10%, depending on policy form, issue year and policy
duration.
Liabilities for future disability income and long-term care policy
benefits include both policy reserves and claim reserves. Policy
reserves are based on the net level premium method, using anticipated
morbidity, mortality, policy persistency and interest earning rates.
Anticipated morbidity and mortality rates are based on established
industry morbidity and mortality tables. Anticipated policy
persistency rates vary by policy form, issue age, policy duration and,
for disability income policies, occupation class. Anticipated interest
rates for disability income and long-term care policy reserves are 3%
to 9.5% at policy issue and grade to ultimate rates of 5% to 7% over 4
to 10 years.
Claim reserves are calculated based on claim continuance tables and
anticipated interest earnings. Anticipated claim continuance rates are
based on a national survey. Anticipated interest rates for claim
reserves for both disability income and long-term care range from 6% to
8%.
<PAGE>
1. Summary of significant accounting policies (continued)
------------------------------------------------------
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. 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 AEFC 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 AEFC and its subsidiaries
that AEFC will reimburse subsidiaries for all tax benefits.
Included in other liabilities at December 31, 1997 and 1996 are $5,026
and $5,161, respectively, payable to IDS Life 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 mortality and expense
risk fees from the variable annuity separate accounts.
The Company makes contractual mortality assurances to the variable
annuity contract owners that the net assets of the separate accounts
will not be affected by future variations in the actual life expectancy
experience of the annuitants and the beneficiaries from the mortality
assumptions implicit in the annuity contracts. The Company makes
periodic fund transfers to, or withdrawals from, the separate accounts
for such actuarial adjustments for variable annuities that are in the
benefit payment period. For variable life insurance, the Company
guarantees that the rates at which insurance charges and administrative
fees are deducted from contract funds will not exceed contractual
maximums. The Company also guarantees that the death benefit will
continue payable at the initial level regardless of investment
performance so long as minimum premium payments are made.
Reclassifications
Certain 1996 and 1995 amounts have been reclassified to conform to the
1997 presentation.
<PAGE>
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.
The amortized cost, gross unrealized gains and losses and fair value of
investments in fixed maturities at December 31, 1997 are as follows:
Gross Gross
Amortized Unrealized Unrealized Fair
Held to maturity Cost Gains Losses Value
---------------- ---- ----- ------ -----
U.S. Government agency
obligations $ 3,690 $ 253 $ -- $ 3,943
Corporate bonds and
obligations 476,108 27,361 444 503,025
Mortgage-backed securities 55,853 452 294 56,011
------- ------ --- -------
$535,651 $28,066 $738 $562,979
======= ====== === =======
Gross Gross
Amortized Unrealized Unrealized Fair
Available for sale Cost Gains Losses Value
------------------ ---- ----- ------ -----
State and municipal
obligations $ 104 $ 10 $ -- $ 114
Corporate bonds and
obligations 281,555 14,272 1,635 294,192
Mortgage-backed securities 301,303 8,253 286 309,270
------- ------ ----- -------
$582,962 $22,535 $1,921 $603,576
======= ====== ===== =======
The amortized cost, gross unrealized gains and losses and fair value of
investments in fixed maturities at December 31, 1996 are as follows:
Gross Gross
Amortized Unrealized Unrealized Fair
Held to maturity Cost Gains Losses Value
---------------- ---- ----- ------ -----
U.S. Government agency
obligations $ 4,498 $ 144 $ -- $ 4,642
Corporate bonds and
obligations 523,807 23,060 2,964 543,903
Mortgage-backed securities 57,507 409 1,826 56,090
------- ------ ----- -------
$585,812 $23,613 $4,790 $604,635
======= ====== ===== =======
Gross Gross
Amortized Unrealized Unrealized Fair
Available for sale Cost Gains Losses Value
------------------ --------- ---------- ---------- -----
State and municipal
obligations $ 105 $ 10 $ -- $ 115
Corporate bonds and
obligations 260,966 8,857 1,181 268,642
Mortgage-backed securities 329,537 5,788 2,459 332,866
------- ------ ----- -------
$590,608 $14,655 $3,640 $601,623
======= ====== ===== =======
<PAGE>
2. Investments (continued)
-----------------------
The amortized cost and fair value of investments in fixed maturities at
December 31, 1997 by contractual maturity are shown below. Expected
maturities will differ from contractual maturities because borrowers
may have the right to call or prepay obligations with or without call
or prepayment penalties.
Amortized Fair
Held to maturity Cost Value
---------------- --------- -----
Due in one year or less $18,376 $ 18,593
Due from one to five years 84,712 89,432
Due from five to ten years 309,104 325,967
Due in more than ten years 67,606 72,976
Mortgage-backed securities 55,853 56,011
------- -------
$535,651 $562,979
======= =======
Amortized Fair
Available for sale Cost Value
------------------ --------- -----
Due in one year or less $12,635 $ 12,747
Due from one to five years 39,808 42,497
Due from five to ten years 139,686 145,567
Due in more than ten years 89,530 93,495
Mortgage-backed securities 301,303 309,270
------- -------
$582,962 $603,576
======= =======
During the years ended December 31, 1997, 1996 and 1995, fixed
maturities classified as held to maturity were sold with amortized cost
of $12,737, $14,507 and $27,971, respectively. Net gains and losses on
these sales were not significant. The sale of these fixed maturities
was due to significant deterioration in the issuers' creditworthiness.
Fixed maturities available for sale were sold during 1997 with proceeds
of $27,055 and gross realized gains and losses of $461 and $309,
respectively. Fixed maturities available for sale were sold during
1996 with proceeds of $15,669 and gross realized gains and losses of
$28 and $1,541, respectively. Fixed maturities available for sale were
sold during 1995 with proceeds of $8,839 and gross realized gains and
losses of $nil and $74, respectively.
At December 31, 1997, bonds carried at $259 were on deposit with the
state of New York as required by law.
<PAGE>
2. Investments (continued)
-----------------------
At December 31, 1997, investments in fixed maturities comprised
85 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 $117 million which are rated by AEFC internal
analysts using criteria similar to Moody's and S&P. A summary of
investments in fixed maturities, at amortized cost, by rating on
December 31 is as follows:
Rating 1997 1996
--------- ---- ----
Aaa/AAA $ 367,242 $ 396,097
Aa/AA 9,685 13,996
Aa/A 13,646 10,197
A/A 162,275 196,542
A/BBB 81,463 62,488
Baa/BBB 343,519 336,706
Baa/BB 21,519 51,639
Below investment grade 119,264 108,755
--------- ---------
$1,118,613 $1,176,420
========= =========
At December 31, 1997, 96 percent of the securities rated Aaa/AAA are
GNMA, FNMA and FHLMC mortgage-backed securities. No holdings of any
other issuer are greater than one percent of the Company's total
investments in fixed maturities.
At December 31, 1997, approximately 13 percent of the Company's
investments were mortgage loans on real estate. Summaries of mortgage
loans by region of the United States and by type of real estate are as
follows:
December 31, 1997 December 31, 1996
----------------------- -----------------------
On Balance Commitments On Balance Commitments
Region Sheet to Purchase Sheet to Purchase
------ ----- ----------- ----- -----------
West North Central $ 27,833 $ -- $ 23,191 $1,342
East North Central 33,515 -- 33,430 1,708
South Atlantic 34,182 2,750 35,501 --
Middle Atlantic 24,485 -- 22,889 --
Pacific 9,873 -- 12,986 --
Mountain 32,864 6,417 15,425 --
New England 8,624 -- 8,805 --
East South Central 8,698 -- 8,825 --
West South Central 252 -- 265 --
------- ----- ------- -----
180,326 9,167 161,317 3,050
Less allowance for
losses 1,500 -- 1,300 --
------- ----- ------- -----
$178,826 $9,167 $160,017 $3,050
======= ===== ======= =====
December 31, 1997 December 31, 1996
---------------------- ------------------------
On Balance Commitments On Balance Commitments
Property type Sheet to Purchase Sheet to Purchase
-------------- ----- ----------- ----- -----------
Apartments $ 68,823 $ -- $ 70,292 $1,708
Department/retail 54,622 6,417 48,476 1,342
stores
Office buildings 25,042 1,650 18,684 --
Industrial buildings 17,975 1,100 11,956 --
Nursing/retirement 6,035 -- 6,477 --
Medical buildings 7,577 -- 5,167 --
Hotels/motels 252 -- 265 --
------- ----- ------- -----
180,326 9,167 161,317 3,050
Less allowance for
losses 1,500 -- 1,300 --
------- ----- ------- -----
$178,826 $9,167 $160,017 $3,050
======= ===== ======= =====
<PAGE>
2. Investments (continued)
-----------------------
Mortgage loan fundings are restricted by state insurance regulatory
authority 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 it 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.
At December 31, 1997 and 1996, the Company's recorded investment in
impaired loans was $1,299 and $1,327, with allowances of $300 and $300,
respectively. During 1997 and 1996, the average recorded investment in
impaired loans was $1,312 and $1,628, respectively.
The Company recognized $126 and $152 of interest income related to
impaired loans for the years ended December 31, 1997 and 1996,
respectively.
The following table presents changes in the allowance for investment
losses related to all loans:
1997 1996 1995
---- ---- ----
Balance, January 1 $1,300 $ 445 $445
Provision for investment losses 200 855 --
----- ----- ---
Balance, December 31 $1,500 $1,300 $445
===== ===== ===
Net investment income for the years ended December 31 is summarized as
follows:
1997 1996 1995
---- ---- ----
Interest on fixed maturities $ 92,007 $ 95,574 $ 97,092
Interest on mortgage loans 14,228 14,171 13,888
Other investment income 1,715 1,293 1,291
Interest on cash equivalents 91 67 186
------- ------- -------
108,041 111,105 112,457
Less investment expenses 1,767 1,637 1,533
------- ------- -------
$106,274 $109,468 $110,924
======= ======= =======
Net realized gains (losses) on investments for the years ended December
31 is summarized as follows:
1997 1996 1995
---- ---- ----
Fixed maturities $844 $ (572) $1,997
Mortgage loans (200) (855) (487)
Other investments (97) 3 38
---- ------ -----
$547 $(1,424) $1,548
=== ===== =====
Changes in net unrealized appreciation (depreciation) of investments
for the years ended December 31 are summarized as follows:
1997 1996 1995
---- ---- ----
Fixed maturities
available for sale 9,599 (13,215) 43,726
<PAGE>
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.
The income tax expense for the years ending December 31 consists of the
following:
1997 1996 1995
---- ---- ----
Federal income taxes:
Current $16,371 $15,735 $15,146
Deferred (960) (2,095) (1,301)
------ -------- --------
15,411 13,640 13,845
State income taxes-current 1,060 1,000 900
------ ------ ------
Income tax expense $16,471 $14,640 $14,745
====== ====== ======
Increases (decreases) to the federal tax provision applicable to pretax
income based on the statutory
rate are attributable to:
1997 1996 1995
-------------- -------------- -------------
Provision Rate Provision Rate Provision Rate
--------- ---- --------- ---- --------- ----
Federal income taxes based
on the statutory rate $16,677 35.0% $14,814 35.0% $14,746 35.0%
Increases (decreases)
are attributable to:
Tax-excluded interest
and dividend income (569) (1.2) (458) (1.1) (464) (1.1)
State tax, net benefit 689 1.4 650 1.5 585 1.4
Other, net (326) (0.6) (366) (0.8) (122) (0.3)
------ ---- ------ ---- ------ ----
Federal income taxes $16,471 34.6% $14,640 34.6% $14,745 35.0%
====== ==== ====== ==== ====== ====
A portion of life insurance company income earned prior to 1984 was not
subject to current taxation but was accumulated, for tax purposes, in a
"policyholders' surplus account." At December 31, 1997, the Company
had a policyholders' surplus account balance of $798. 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 $279 have not been established
because no distributions of such amounts are contemplated.
Significant components of the Company's deferred income tax assets and
liabilities as of December 31 are as follows:
1997 1996
Deferred income tax assets:
Policy reserves $28,922 $28,809
Other 5,467 4,018
----- -----
Total deferred income tax assets 34,389 32,827
Deferred income tax liabilities:
Deferred policy acquisition costs 36,594 35,302
Investments 9,240 6,571
------ -------
Total deferred income tax
liabilities 45,834 41,873
------ ------
Net deferred income tax liabilities $11,445 $9,046
====== =====
<PAGE>
3. Income taxes (continued)
------------------------
The Company is required to establish a valuation allowance for any
portion of the deferred income tax assets that management believes will
not be realized. In the opinion of management, it is more likely than
not that the Company will realize the benefit of the deferred tax
assets and, therefore, no such valuation allowance has been established.
4. Stockholder's equity
--------------------
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 the New York Department of
Insurance. All dividend distributions must be approved by the New York
Department of Insurance. Statutory unassigned surplus aggregated
$115,828 and $94,007 as of December 31, 1997 and 1996, respectively
(see Note 3 with respect to the income tax effect of certain
distributions and Note 11 for a reconciliation of net income and
stockholder's equity per the accompanying financial statements to
statutory net income and surplus).
5. Benefit plans
-------------
The Company participates in the American Express Company Retirement
Plan which covers all permanent employees age 21 and over who have met
certain employment requirements. 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 $39, $34 and
$33 in 1997, 1996 and 1995, respectively.
The Company has a "Sales Benefit Plan" which is an unfunded,
noncontributory retirement plan for all eligible financial advisors.
Total plan costs for 1997, 1996 and 1995, which are calculated on the
basis of commission earnings of the individual financial advisors, were
$1,965, $1,474 and $1,392, respectively. Such costs are included in
deferred policy acquisition costs.
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 1997,
1996 and 1995 were $312, $248 and $231, respectively.
The Company participates in defined benefit health care plans of AEFC
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 AEFC. AEFC 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.
<PAGE>
6. Incentive plan and related party operating expenses
---------------------------------------------------
The Company maintains a "Persistency Payment Plan." Under the terms of
this plan, financial advisors earn additional compensation based on the
volume and persistency of insurance sales. The total costs for the
plan for 1997, 1996 and 1995 were $1,490, $1,424 and $1,720,
respectively. Such costs are included in deferred policy acquisition
costs.
Charges by IDS Life and AEFC for the use of joint facilities, marketing
services and other services aggregated $11,589, $12,389 and $12,122 for
1997, 1996 and 1995, respectively. Certain of these costs are included
in deferred policy acquisition costs.
7. Commitments and contingencies
-----------------------------
At December 31, 1997 and 1996, traditional life insurance and universal
life-type insurance in force aggregated $4,513,251 and $4,053,561,
respectively, of which $220,798 and $203,963 were reinsured at the
respective year ends.
In addition, the Company has a stop loss reinsurance agreement with IDS
Life covering ordinary life benefits. IDS Life agrees to pay all death
benefits incurred each year which exceed 125 percent of normal claims,
where normal claims are defined in the agreement as .095 percent of the
mean retained life insurance in force. Premiums ceded to IDS Life
amounted to $115, $98 and $85 for the years ended December 31, 1997,
1996 and 1995, respectively. Claim recoveries under the terms of this
reinsurance agreement were $963, $861 and $1,426 in 1997, 1996 and
1995, respectively.
Premiums ceded to reinsurers other than IDS Life amounted to $1,583,
$747 and $667 for the years ended December 31, 1997, 1996 and 1995,
respectively. Reinsurance recovered from reinsurers other than IDS
Life amounted to $1,366, $66 and $576 for the years ended
December 31, 1997, 1996 and 1995.
Reinsurance contracts do not relieve the Company from its primary
obligations to policyholders.
The Company has an agreement to assume a block of extended term life
insurance business. The amount of insurance in force related to this
agreement was $303,263 and $345,943 at December 31, 1997 and 1996,
respectively. The accompanying statement of income includes premiums of
$nil for the years ended December 31, 1997, 1996 and 1995, and decreases
in liabilities for future policy benefits of $1,889, $2,010 and $2,039
related to this agreement for the years ended December 31, 1997, 1996 and
1995, respectively.
8. Lines of credit
---------------
The Company has an available line of credit with AEFC aggregating
$25,000. The line of credit is at 45 basis points over the Federal
Funds rate. A $20,000 line of credit with another bank expired on
June 30, 1997 and the Company did not seek renewal. Outstanding
borrowings under these agreements were $nil at December 31, 1997 and
1996.
9. 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 does not hold derivative
instruments for trading purposes. The Company manages risks associated
with these instruments as described below.
<PAGE>
9. Derivative financial instruments (continued)
--------------------------------------------
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 risk 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.
Credit risk related to interest rate caps is measured by replacement
cost of the contracts. The replacement cost represents the fair value
of the instruments.
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.
The Company's holdings of derivative financial instruments are as
follows:
Notional Carrying Fair Total Credit
December 31, 1997 Amount Amount Value Exposure
----------------- ------ ------ ----- --------
Assets:
Interest rate caps $200,000 $ 970 $ 62 $ 62
======= === == ==
December 31, 1996
-----------------
Assets:
Interest rate caps $250,000 $1,374 $832 $832
======= ===== === ===
The fair values of derivative financial instruments are based on market
values, dealer quotes or pricing models. The interest rate caps expire
on various dates through 2000.
Interest rate caps are used to manage the Company's exposure to
interest rate risk. 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.
10. Fair values of financial instruments
------------------------------------
The Company discloses fair value information for most on- and
off-balance sheet financial instruments for which it is practicable 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 and liabilities is significant.
The fair value of the Company, therefore, cannot be estimated by
aggregating the amounts presented.
<PAGE>
10. Fair values of financial instruments (continued)
------------------------------------------------
1997 1996
------------------ -----------------
Carrying Fair Carrying Fair
Financial Assets Amount Value Amount Value
---------------- ------ ----- ------ -----
Investments:
Fixed maturities (Note 2):
Held to maturity $ 535,651 $ 562,979 $585,812 $604,635
Available for sale 603,576 603,576 601,623 601,623
Mortgage loans on real estate 178,826 187,992 160,017 164,444
(Note 2)
Other:
Derivative financial 970 62 1,374 832
instruments (Note 9)
Separate accounts assets (Note 1) 1,236,759 1,236,759 950,018 950,018
Financial Liabilities
Future policy benefits for
fixed annuities 880,809 852,391 979,030 946,359
Separate account liabilities 1,136,408 1,086,565 880,160 838,492
At December 31, 1997 and 1996, the carrying amount and fair value of
future policy benefits for fixed annuities exclude life
insurance-related contracts carried at $78,853 and $72,252,
respectively, and policy loans of $4,821 and $3,672, respectively. The
fair value of these benefits is based on the status of the annuities at
December 31, 1997 and 1996. The fair value of deferred annuities is
estimated as the carrying amount less any 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 1997 and 1996.
At December 31, 1997 and 1996, the fair value of liabilities related to
separate accounts is estimated as the carrying amount less applicable
surrender charges and less variable insurance contracts carried at
$100,351and $69,859, respectively.
<PAGE>
11. Statutory insurance accounting practices
----------------------------------------
Reconciliations of net income for 1997, 1996 and 1995 and stockholder's
equity at December 31, 1997 and 1996, as shown in the accompanying
financial statements, to that determined using statutory accounting
practices are as follows:
1997 1996 1995
---- ---- ----
Net income, per accompanying
financial statements $31,178 $27,684 $27,387
Deferred policy acquisition costs (7,432) (9,087) (11,017)
Adjustments of future policy
benefit liabilities (4,928) (9,683) (10,655)
Deferred income tax benefit (960) (2,095) (1,301)
Provision for losses on 296 877 --
investments
IMR gain/loss transfer and (119) 1,010 (331)
amortization
Adjustment to separate account 10,267 8,863 20,769
reserves
Other, net 430 116 948
------ ------ ------
Net income, on basis of
statutory accounting practices $28,732 $17,685 $25,800
====== ====== ======
Stockholder's equity, per accompanying
financial statements $257,279 $229,863
Deferred policy acquisition costs (126,614) (119,183)
Adjustments of future policy 9,452 13,458
benefit
liabilities
Deferred income taxes 11,445 9,046
Asset valuation reserve (16,698) (19,446)
Adjustments of separate account 53,456 43,189
liabilities
Adjustments of investments to
amortized cost (20,613) (11,016)
Premiums due, deferred and advance 1,237 1,149
Deferred revenue liability 1,941 1,342
Allowance for losses 1,645 1,349
Non-admitted assets (552) (634)
Interest maintenance reserve (1,551) (1,432)
Other, net (1,463) (281)
-------- --------
Stockholder's equity, on basis of
statutory accounting practices $168,963 $147,404
======= =======
<PAGE>
12. Year 2000 Issue (unaudited)
---------------------------
The Year 2000 issue is the result of computer programs having been
written using two digits rather than four to define a year. Any
programs that have time-sensitive software may recognize a date using "00"
as the year 1900 rather than 2000. This could result in the failure of
major systems or miscalculations, which could have a material impact on
the operations of the Company. All of the systems used by the Company are
maintained by AEFC and are utilized by multiple subsidiaries and
affiliates of AEFC. The Company's business is heavily dependent upon
AEFC's computer systems and has significant interactions with systems of
third parties.
A comprehensive review of AEFC's computer systems and business
processes, including those specific to the Company, has been
conducted to identify the major systems that could be affected by the
Year 2000 issue. Steps are being taken to resolve any potential
problems including modification to existing software and the purchase
of new software. These measures are scheduled to be completed and
tested on a timely basis. AEFC's goal is to complete internal remediation
and testing of each system by the end of 1998 and to continue compliance
efforts through 1999.
AEFC is evaluating the Year 2000 readiness of advisors and other third
parties whose system failures could have an impact on the Company's
operations. The potential materiality of any such impact is not known at
this time.
<PAGE>
PART C.
Item 24. Financial Statements and Exhibits
(a) Financial Statements included in Part B of this Registration Statement.
IDS Life of New York Accounts 4, 5, 6, 9, 10, 11, 12, 13 and 14:
Statements of Net Assets at Dec. 31, 1997.
Statements of Operations for the year ended Dec. 31, 1997.
Statements of Changes in Net Assets for the years ended
Dec. 31, 1997 and Dec. 31, 1996.
Notes to Financial Statements.
Report of Independent Auditors dated March 13, 1998.
IDS Life Insurance Company of New York.
Balance Sheets at Dec. 31, 1997 and 1996;
Statements of Income for the years ended Dec. 31, 1997, 1996,
and 1995;
Statements of Cash Flows for the years ended Dec. 31, 1997,
1996, and 1995;
Notes to Financial Statements.
Report of Independent Auditors dated February 5, 1998.
Exhibits to Financial Statements included in Part C:
Financial Statement Schedules I, III, IV and V as required by
Regulation S-X:
Schedule I - 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 5, 1998.
All other schedules to the 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 Resolution of the Executive Committee of the Board of Directors of IDS
Life of New York establishing Accounts C, D, E, F, G, H dated November
12, 1981, filed electronically as Exhibit 1.1 to Registration Statement
No. 33-52567, is incorporated herein by reference.
1.2 Resolution of the Executive Committee of the Board of Directors of IDS
Life of New York establishing Account 9 on Feb. 12, 1986, filed
electronically as Exhibit 1.2 to Registration Statement No. 33-52567,
is incorporated herein by reference.
<PAGE>
1.3 Resolution of the Board of Directors of IDS Life Insurance Company of
New York establishing Accounts 10 and 11 on Oct. 8, 1991, filed
electronically as Exhibit 1.3 to Registration Statement No. 33-52567,
is incorporated herein by reference.
1.4 Consent in Writing in Lieu of Meeting of Board of directors of IDS Life
Insurance Company of New York establishing Accounts 12, 13 and 14 on
April 17, 1996, filed electronically as Exhibit 1.4 to Registration
Statement No. 33-52567, is incorporated herein by reference.
2. Not applicable.
3. Form of Variable Annuity and Life Insurance Distribution Agreement
filed electronically as Exhibit 3 to Registration Statement No.
33-52567, is incorporated herein by reference.
4.1 Copy of form of Group Deferred Annuity Contract (form 38607) filed
electronically as Exhibit 4.1 to Registration Statement No. 33-52567,
is incorporated herein by reference.
4.2 Copy of form of Group Deferred Annuity Participant Certificate (form
38611) filed electronically as Exhibit 4.2 to Registration Statement
No. 33-52567, is incorporated herein by reference.
5.1 Copy of form of Employee Benefit Annuity Master Application for Group
Deferred Annuity Contract (form 38608 A), filed electronically as
Exhibit 5.1 to Post-Effective Amendment No. 1 to Registration Statement
No. 33-52567, is incorporated herein by reference.
5.2 Copy of form of Participant Enrollment Form (for Employee Benefit
Annuity) (form 38609 A), filed electronically as Exhibit 5.2 to
Post-Effective Amendment No. 1 to Registration Statement No. 33-52567,
is incorporated herein by reference.
6.1 Copy of the Revised Charter of IDS Life of New York, dated April, 1992,
filed electronically as Exhibit 6.1 to Registration Statement No.
33-52567, is incorporated herein by reference.
6.2 Copy of Amended By-Laws of IDS Life of New York, dated May, 1992, filed
electronically as Exhibit 6.2 to Registration Statement No. 33-52567,
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 being registered, filed electronically herewith.
10. Consent of Independent Auditors, filed electronically herewith.
<PAGE>
11. Financial Statement Schedules and Report of Independent Auditors, filed
electronically herewith.
12. Not applicable.
13. Copy of schedule for computation of each performance quotation provided
in the Registration Statement in response to Item 21, filed
electronically as Exhibit 13 to Pre-Effective Amendment No. 1 to
Registration Statement No. 33-52567, is incorporated herein by
reference.
14. Financial Data Schedules, filed electronically herewith.
15. Power of Attorney to sign Amendments to this Registration Statement,
dated March 26, 1997, filed electronically as Exhibit 15 to
Post-Effective Amendment No. 5 to Registration Statement No. 33-52567,
is incorporated herein by reference.
<PAGE>
<TABLE>
<CAPTION>
Item 25. Directors and Officers of the Depositor (IDS Life Insurance Company of New York)
--------------------------------------------------------------------------------
Positions and Offices with Depositor
Name Principal Business Address
- ------------------------------------ ---------------------------------------- --------------------------------------
<S> <C> <C>
Mario Alaia 20 Madison Avenue Extension Claims Officer and Assistant
Albany, NY Secretary
Darrell C. Beckstrom IDS Tower 10 Underwriting Officer
Minneapolis, MN 55440
John C. Boeder 20 Madison Avenue Extension Director
Albany, NY
Eugene C. Chen 20 Madison Avenue Extension Chief Actuary
Albany, NY
Roger C. Corea 20 Madison Avenue Extension Director
Albany, NY
Charles A. Cuccinello 20 Madison Avenue Extension Director
Albany, NY
Darlene S. Farron 20 Madison Avenue Extension Treasurer
Albany, NY
Milton R. Fenster 20 Madison Avenue Extension Director
Albany, NY
Donna M. Gaglione 20 Madison Avenue Extension Secretary
Albany, NY
Robert R. Grew 20 Madison Avenue Extension Director
Albany, NY
Margaret M. Grogan, M.D. Bethlehem Terrace Apts. Medical Director
Slingerland, NY
Lorraine R. Hart IDS Tower 10 Investment Officer
Minneapolis, MN 55440
Robert A. Hatton IDS Tower 10 Director, Vice President and Chief
Minneapolis, MN 55440 Operating Officer
Richard W. Kling IDS Tower 10 Director, Chairman of the Board and
Minneapolis, MN 55440 President
Edward Landes IDS Tower 10 Director
Minneapolis, MN 55440
Thomas V. Nicolosi Suite 220 Director
500 Mamaroneck Avenue
Harrison, NY 10528
Stephen P. Norman World Financial Center Director
New York, NY
Carl N. Platou IDS Tower 10 Director
Minneapolis, MN 55440
Gordon H. Ritz 404 WCCO Radio Bldg. Director
Minneapolis, MN
F. Dale Simmons IDS Tower 10 Vice President and Assistant
Minneapolis, MN 55440 Treasurer
Richard M. Starr 20 Madison Avenue Extension Director
Albany, NY
William A. Stoltzmann IDS Tower 10 Counsel and Assistant Secretary
Minneapolis, MN 55440
Michael R. Woodward 20 Madison Avenue Extension Director
Albany, NY
</TABLE>
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant
IDS Life Insurance Company of New York is a wholly-owned
subsidiary of IDS Life Insurance Company which 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.
<TABLE>
<CAPTION>
Jurisdiction of
Name of Subsidiary Incorporation
<S> <C>
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 Financial Services
Advisory Capital Strategies Group Inc. Minnesota
American Centurion Life Assurance Company New York
American Enterprise Investment Services Inc. Minnesota
American Enterprise Life Insurance Company Indiana
American Express Asset Management Group Inc. Minnesota
American Express Asset Management International Inc. Delaware
American Express Asset Management International (Japan) Ltd. Japan
American Express Asset Management Ltd. England
American Express Client Service Corporation Minnesota
American Express Corporation Delaware
American Express Financial Advisors Inc. Delaware
American Express Financial Corporation Minnesota
Delaware
American Express Insurance Agency of Arizona Inc. Arizona
American Express Insurance Agency of Idaho Inc. Idaho
American Express Insurance Agency of Nevada Inc. Nevada
American Express Insurance Agency of Oregon Inc. Oregon
American Express Minnesota Foundation Minnesota
American Express Property Casualty Insurance Agency of Kentucky Inc. Kentucky
American Express Property Casualty Insurance Agency of Maryland Inc. Maryland
American Express Property Casualty Insurance Agency of Pennsylvania Inc. Pennsylvania
American Express Trust Company Minnesota
American Partners Life Insurance Company Arizona
IDS Cable Corporation Minnesota
IDS Cable II Corporation Minnesota
IDS Capital Holdings Inc. Minnesota
IDS Certificate Company Delaware
IDS Futures 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 New Mexico Inc. New Mexico
IDS Insurance Agency of North Carolina Inc. North Carolina
IDS Insurance Agency of Utah Inc. Utah
IDS Insurance Agency of Wyoming Inc. Wyoming
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
North Dakota Public Employee Payment Company Minnesota
</TABLE>
Item 27. Number of Contractowners
On February 28, 1998, there were 2,335 contract owners of the IDS
Life of New York 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
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.
<PAGE>
Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted to director, 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) American Express Financial Advisors acts as principal underwriter for
the following investment companies:
IDS Bond Fund, Inc.; IDS California Tax-Exempt Trust; IDS Discovery
Fund, Inc.; IDS Equity Select Fund, Inc.; IDS Extra Income Fund, Inc.;
IDS Federal Income Fund, Inc.; IDS Global Series, Inc.; IDS Growth
Fund, Inc.; IDS High Yield Tax-Exempt Fund, Inc.; IDS International
Fund, Inc.; IDS Investment Series, Inc.; IDS Managed Retirement Fund,
Inc.; IDS Market Advantage Series, Inc.; IDS Money Market Series, Inc.;
IDS New Dimensions Fund, Inc.; IDS Precious Metals Fund, Inc.; IDS
Progressive Fund, Inc.; IDS Selective Fund, Inc.; IDS Special
Tax-Exempt Series Trust; IDS Stock Fund, Inc.; IDS Strategy Fund, Inc.;
IDS Tax-Exempt Bond Fund, Inc.; IDS Tax-Free Money Fund, Inc.; IDS
Utilities Income Fund, Inc., Growth Trust; Growth and Income Trust;
Income Trust, Tax-Free Income Trust, World Trust and IDS Certificate
Company.
(b) As to each director, officer or partner of the principal underwriter:
<PAGE>
<TABLE>
<CAPTION>
Name and Principal Business Address Position and Offices with Offices with Registrant
Underwriter
- -------------------------------------------- ---------------------------------- --------------------------
<S> <C> <C>
Ronald G. Abrahamson Vice President-Service Quality None
IDS Tower 10 and Reengineering
Minneapolis, MN 55440
Douglas A. Alger Senior Vice President-Human None
IDS Tower 10 Resources
Minneapolis, MN 55440
Peter J. Anderson Senior Vice President-Investment Vice President
IDS Tower 10 Operations
Minneapolis, MN 55440
Ward D. Armstrong Vice President-American Express, None
IDS Tower 10 Institutional Services
Minneapolis, MN 55440
John M. Baker Vice President-Plan Sponsor None
IDS Tower 10 Services
Minneapolis, MN 55440
Joseph M. Barsky III Vice President-Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Robert C. Basten Vice President-Tax and Business None
IDS Tower 10 Services
Minneapolis, MN 55440
<PAGE>
(b) As to each director, officer or partner of the principal underwriter
(American Express Financial Advisors, Inc.) (Con't):
Name and Principal Business Address Position and Offices with Offices with Registrant
Underwriter
- -------------------------------------------- ---------------------------------- --------------------------
Timothy V. Bechtold Vice President-Risk Management None
IDS Tower 10 Products
Minneapolis, MN 55440
John D. Begley Group Vice President-Ohio/Indiana None
Suite 100
7760 Olentangy River Rd.
Columbus, OH 43235
Jack A. Benjamin Group Vice President-Greater None
Suite 200 Pennsylvania
3500 Market Street
Camp Hill, PA 17011
Alan F. Bignall Vice President-Technology and None
IDS Tower 10 Development
Minneapolis, MN 55440
Brent L. Bisson Group Vice President-Los None
Suite 900, E. Westside Twr Angeles Metro
11835 West Olympic Blvd.
Los Angeles, CA 90064
John C. Boeder Vice President-Mature Market None
IDS Tower 10 Group
Minneapolis, MN 55440
Walter K. Booker Group Vice President-New Jersey None
Suite 200, 3500 Market Street
Camp Hill, NJ 17011
Bruce J. Bordelon Group Vice President-Gulf States None
Galleria One Suite 1900
Galleria Blvd.
Metairie, LA 70001
Charles R. Branch Group Vice President-Northwest None
Suite 200
West 111 North River Dr
Spokane, WA 99201
Douglas W. Brewers Vice President-Sales Support None
IDS Tower 10
Minneapolis, MN 55440
<PAGE>
(b) As to each director, officer or partner of the principal underwriter
(American Express Financial Advisors, Inc.) (Con't):
Name and Principal Business Address Position and Offices with Offices with Registrant
Underwriter
- -------------------------------------------- ---------------------------------- --------------------------
Karl J. Breyer Senior Vice President-Law and None
IDS Tower 10 Corporate
Minneapolis, MN 55440 Affairs
Daniel J. Candura Vice President-Marketing Support None
IDS Tower 10
Minneapolis, MN 55440
Cynthia M. Carlson Vice President-American Express None
IDS Tower 10 Securities Services
Minneapolis, MN 55440
Mark W. Carter Senior Vice President and Chief None
IDS Tower 10 Marketing Officer
Minneapolis, MN 55440
James E. Choat Senior Vice None
IDS Tower 10 President-Institutional
Minneapolis, MN 55440 Products Group
Kenneth J. Ciak Vice President and General None
IDS Property Casualty Manager-IDS Property Casualty
1400 Lombardi Avenue
Green Bay, WI 54304
Roger C. Corea Group Vice President-Upstate None
290 Woodcliff Drive New York
Fairport, NY 14450
Henry J. Cormier Group Vice President-Connecticut None
Commerce Center One
333 East River Drive
East Hartford, CT 06108
John M. Crawford Group Vice President-Arkansas / None
Suite 200 Springfield / Memphis
10800 Financial Ctr Pkwy
Little Rock, AR 72211
Kevin F. Crowe Group Vice None
Suite 312 President-Carolinas/Eastern
7300 Carmel Executive Pk Georgia
Charlotte, NC 28226
<PAGE>
(b) As to each director, officer or partner of the principal underwriter
(American Express Financial Advisors, Inc.) (Con't):
Name and Principal Business Address Position and Offices with Offices with Registrant
Underwriter
- -------------------------------------------- ---------------------------------- --------------------------
Colleen Curran Vice President and assistant None
IDS Tower 10 General Counsel
Minneapolis, MN 55440
Reginia David Vice President-Systems Services None
IDS Tower 10
Minneapolis, MN 55440
Luz Maria Davis Vice President-Communications None
IDS Tower 10
Minneapolis, MN 55440
Scott M. DiGiammarino Group Vice None
Suite 500, 8045 Leesburg Pike President-Washington/Baltimore
Vienna, VA 22182
Bradford L. Drew Group Vice President-Eastern None
Two Datran Center Florida
Penthouse One B
9130 S. Dadeland Blvd.
Miami, FL 33156
Gordon L. Eid Senior Vice President, General None
IDS Tower 10 Counsel and Chief Compliance
Minneapolis, MN 55440 Officer
Robert M. Elconin Vice President-Government None
IDS Tower 10 Relations
Minneapolis, MN 55440
Mark A. Ernst Senior Vice President-Third None
IDS Tower 10 Party Distribution
Minneapolis, MN 55440
Joseph Evanovich Jr. Group Vice None
One Old Mill President-Nebraska/Iowa/Dakotas
101 South 108th Avenue
Omaha, NE 68154
Louise P. Evenson Group Vice President-San None
Suite 200 Francisco Bay Area
1333 N. California Blvd.
Walnut Creek, CA 94596
<PAGE>
(b) As to each director, officer or partner of the principal underwriter
(American Express Financial Advisors, Inc.) (Con't):
Name and Principal Business Address Position and Offices with Offices with Registrant
Underwriter
- -------------------------------------------- ---------------------------------- --------------------------
Gordon M. Fines Vice President-Mutual Fund None
IDS Tower 10 Equity Investments
Minneapolis, MN 55440
Douglas L. Forsberg Vice President-Institutional None
IDS Tower 10 Products Group
Minneapolis, MN 55440
Jeffrey P. Fox Vice President and Corporate None
IDS Tower 10 Controller
Minneapolis, MN 55440
William P. Fritz Group Vice President-Northern None
Suite 160 Missouri
12855 Flushing Meadows Dr
St. Louis, MO 63131
Carl W. Gans Group Vice President-Twin City None
8500 Tower Suite 1770 Metro
8500 Normandale Lake Blvd.
Bloomington, MN 55437
John J. Golden Vice President-Human Resources None
IDS Tower 10 Planning and Field Support
Minneapolis, MN 55440
David A. Hammer Vice President and Marketing None
IDS Tower 10 Controller
Minneapolis, MN 55440
Teresa A. Hanratty Group Vice President-Northern None
Suites 6&7 New England
169 South River Road
Bedford, NH 03110
Robert L. Harden Group Vice President-Boston None
Two Constitution Plaza Metro
Boston, MA 02129
Lorraine R. Hart Vice President-Insurance None
IDS Tower 10 Investments
Minneapolis, MN 55440
<PAGE>
(b) As to each director, officer or partner of the principal underwriter
(American Express Financial Advisors, Inc.) (Con't):
Name and Principal Business Address Position and Offices with Offices with Registrant
Underwriter
- -------------------------------------------- ---------------------------------- --------------------------
Scott A. Hawkinson Vice President-Assured Assets None
IDS Tower 10 Product Development and
Minneapolis, MN 55440 Management
Brian M. Heath Group Vice President-North Texas None
Suite 150
801 E. Campbell Road
Richardson, TX 75081
Janis K. Heaney Vice President-Incentive None
IDS Tower 10 Compensation
Minneapolis, MN 55440
James G. Hirsh Vice President and Assistant None
IDS Tower 10 General Counsel
Minneapolis, MN 55440
Jon E. Hjelm Group Vice President-Rhode None
319 Southbridge Street Island/Central-Western
Auburn, MA 01501 Massachusetts
David J. Hockenberry Group Vice President-Eastern None
30 Burton Hills Blvd. Tennessee
Suite 175
Nashville, TN 37215
Jeffrey S. Horton Vice President and Treasurer None
IDS Tower 10
Minneapolis, MN 55440
David R. Hubers Chairman, President and Chief Board member
IDS Tower 10 Executive Officer
Minneapolis, MN 55440
Martin G. Hurwitz Vice President-Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
James M. Jensen Vice President-Insurance None
IDS Tower 10 Product Development and
Minneapolis, MN 55440 Management
<PAGE>
(b) As to each director, officer or partner of the principal underwriter
(American Express Financial Advisors, Inc.) (Con't):
Name and Principal Business Address Position and Offices with Offices with Registrant
Underwriter
- -------------------------------------------- ---------------------------------- --------------------------
Marietta L. Johns Senior Vice President-Field None
IDS Tower 10 Management
Minneapolis, MN 55440
James E. Kaarre Vice President-Marketing None
IDS Tower 10 Promotions
Minneapolis, MN 55440
Matthew N. Karstetter Vice President-Investment None
IDS Tower 10 Accounting
Minneapolis, MN 55440
Linda B. Keene Vice President-Market None
IDS Tower 10 Development
Minneapolis, MN 55440
G. Michael Kennedy Vice President-Investment None
IDS Tower 10 Services and Investment Research
Minneapolis, MN 55440
Susan D. Kinder Senior Vice None
IDS Tower 10 President-Distribution Services
Minneapolis, MN 55440
Brian Kleinberg Executive Vice None
IDS Tower 10 President-Financial Direct
Minneapolis, MN 55440
Richard W. Kling Senior Vice President-Products None
IDS Tower 10
Minneapolis, MN 55440
Paul F. Kolkman Vice President-Actuarial Finance None
IDS Tower 10
Minneapolis, MN 55440
Claire Kolmodin Vice President-Service Quality None
IDS Tower 10
Minneapolis, MN 55440
David S. Kreager Group Vice President-Greater None
Suite 108 Michigan
Trestle Bridge V
5136 Lovers Lane
Kalamazoo, MI 49002
<PAGE>
(b) As to each director, officer or partner of the principal underwriter
(American Express Financial Advisors, Inc.) (Con't):
Name and Principal Business Address Position and Offices with Offices with Registrant
Underwriter
- -------------------------------------------- ---------------------------------- --------------------------
Steven C. Kumagai Director and Senior Vice None
IDS Tower 10 President-Field Management and
Minneapolis, MN 55440 Business Systems
Mitre Kutanovski Group Vice President-Chicago None
Suite 680 Metro
8585 Broadway
Merrillville, IN 48410
Edward Labenski Jr. Vice President-Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Kurt A. Larson Vice President-Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Lori J. Larson Vice President-Variable Assets None
IDS Tower 10 Product Development
Minneapolis, MN 55440
Ryan R. Larson Vice President- IPG Product None
IDS Tower 10 Development
Minneapolis, MN 55440
Daniel E. Laufenberg Vice President and Chief U.S. None
IDS Tower 10 Economist
Minneapolis, MN 55440
Richard J. Lazarchic Vice President-Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Peter A. Lefferts Senior Vice President-Corporate None
IDS Tower 10 Strategy and Development
Minneapolis, MN 55440
Douglas A. Lennick Director and Executive Vice None
IDS Tower 10 President-Private Client Group
Minneapolis, MN 55440
<PAGE>
(b) As to each director, officer or partner of the principal underwriter
(American Express Financial Advisors, Inc.) (Con't):
Name and Principal Business Address Position and Offices with Offices with Registrant
Underwriter
- -------------------------------------------- ---------------------------------- --------------------------
Mary J. Malevich Vice President-Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Fred A. Mandell Vice President-Field Marketing None
IDS Tower 10 Readiness
Minneapolis, MN 55440
Daniel E. Martin Group Vice President-Pittsburgh None
Suite 650 Metro
5700 Corporate Drive
Pittsburgh, PA 15237
Thomas W. Medcalf Vice President-Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
William C. Melton Vice President-International None
IDS Tower 10 Research and Chief
Minneapolis, MN 55440 International Economist
William P. Miller Vice President and Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
James A. Mitchell Executive Vice None
IDS Tower 10 President-Marketing and Products
Minneapolis, MN 55440
Pamela J. Moret Vice President-Variable Assets None
IDS Tower 10
Minneapolis, MN 55440
Alan D. Morgenstern Group Vice President-Central None
Suite 200 California/Western Nevada
3500 Market Street
Camp Hill, NJ 17011
Barry J. Murphy Senior Vice President-Client None
IDS Tower 10 Service
Minneapolis, MN 55440
<PAGE>
(b) As to each director, officer or partner of the principal underwriter
(American Express Financial Advisors, Inc.) (Con't):
Name and Principal Business Address Position and Offices with Offices with Registrant
Underwriter
- -------------------------------------------- ---------------------------------- --------------------------
Mary Owens Neal Vice President-Mature Market None
IDS Tower 10 Segment
Minneapolis, MN 55440
Robert J. Neis Vice President-Technology None
IDS Tower 10 Services
Minneapolis, MN 55440
Thomas V. Nicolosi Group Vice President-New York None
Suite 220 Metro Area
500 Mamaroneck Avenue
Harrison, NY 10528
James R. Palmer Vice President-Taxes None
IDS Tower 10
Minneapolis, MN 55440
Carla P. Pavone Vice President-Compensation and None
IDS Tower 10 Field Administration
Minneapolis, MN 55440
Susan B. Plimpton Vice President-Marketing None
IDS Tower 10 Services
Minneapolis, MN 55440
Larry M. Post Group Vice None
One Tower Bridge President-Philadelphia Metro
100 Front Street 8th Fl
West Conshohocken, PA 19428
Ronald W. Powell Vice President and Assistant None
IDS Tower 10 General Counsel
Minneapolis, MN 55440
James M. Punch Vice President-Special Projects None
IDS Tower 10
Minneapolis, MN 55440
Frederick C. Quirsfeld Vice President-Taxable Mutual None
IDS Tower 10 Fund Investments
Minneapolis, MN 55440
<PAGE>
(b) As to each director, officer or partner of the principal underwriter
(American Express Financial Advisors, Inc.) (Con't):
Name and Principal Business Address Position and Offices with Offices with Registrant
Underwriter
- -------------------------------------------- ---------------------------------- --------------------------
Debra J. Rabe Vice President-Financial None
IDS Tower 10 Planning
Minneapolis, MN 55440
R. Daniel Richardson Group Vice President-Southern None
Suite 800 Texas
Arboretum Plaza One
9442 Capital of Texas Hwy N.
Austin, TX 78759
ReBecca K. Roloff Senior Vice President-Field None
IDS Tower 10 Management and Financial
Minneapolis, MN 55440 Advisory Service
Stephen W. Roszell Senior Vice None
IDS Tower 10 President-Institutional
Minneapolis, MN 55440
Max G. Roth Group Vice None
Suite 201 S IDS Ctr President-Wisconsin/Upper
1400 Lombardi Avenue Michigan
Green Bay, WI 54304
John P. Ryan Vice President and General None
IDS Tower 10 Auditor
Minneapolis, MN 55440
Erven A. Samsel Senior Vice President-Field None
45 Braintree Hill Park Management
Suite 402
Braintree, MA 02184
Russell L. Scalfano Group Vice None
Suite 201 President-Illinois/Indiana/Kentucky
101 Plaza East Blvd.
Evansville, IN 47715
William G. Scholz Group Vice None
Suite 205 President-Arizona/Las Vegas
7333 E Doubletree Ranch Rd
Scottsdale, AZ 85258
<PAGE>
(b) As to each director, officer or partner of the principal underwriter
(American Express Financial Advisors, Inc.) (Con't):
Name and Principal Business Address Position and Offices with Offices with Registrant
Underwriter
- -------------------------------------------- ---------------------------------- --------------------------
Stuart A. Sedlacek Vice President-Assured Assets None
IDS Tower 10
Minneapolis, MN 55440
Donald K. Shanks Vice President-Property Casualty None
IDS Tower 10
Minneapolis, MN 55440
F. Dale Simmons Vice President-Senior Portfolio None
IDS Tower 10 Manager, Insurance Investments
Minneapolis, MN 55440
Judy P. Skoglund Vice President-Human Resources None
IDS Tower 10 and Organization Development
Minneapolis, MN 55440
Ben C. Smith Vice President- Workplace None
IDS Tower 10 Marketing
Minneapolis, MN 55440
William A. Smith Vice President and None
IDS Tower 10 Controller-Private Client Group
Minneapolis, MN 55440
James B. Solberg Group Vice President-Eastern None
466 Westdale Mall Iowa Area
Cedar Rapids, IA 52404
Bridget Sperl Vice President-Geographic None
IDS Tower 10 Service Teams
Minneapolis, MN 55440
Paul J. Stanislaw Group Vice President-Southern None
Suite 1100 California
Two Park Plaza
Irvine, CA 92714
Lois A. Stilwell Group Vice President-Outstate None
Suite 433 Minnesota Area/ North
9900 East Bren Road Dakota/Western Wisconsin
Minnetonka, MN 55343
<PAGE>
(b) As to each director, officer or partner of the principal underwriter
(American Express Financial Advisors, Inc.) (Con't):
Name and Principal Business Address Position and Offices with Offices with Registrant
Underwriter
- -------------------------------------------- ---------------------------------- --------------------------
William A. Stoltzmann Vice President and Assistant None
IDS Tower 10 General Counsel
Minneapolis, MN 55440
James J. Strauss Vice President-Corporate None
IDS Tower 10 Planning and Analysis
Minneapolis, MN 55440
Jeffrey J. Stremcha Vice President-Information None
IDS Tower 10 Resource Management/ISD
Minneapolis, MN 55440
Barbara Stroup Stewart Vice President-Corporate None
IDS Tower 10 Reengineering
Minneapolis, MN 55440
Craig P. Taucher Group Vice None
Suite 150 President-Orlando/Jacksonville
4190 Belfort Road
Jacksonville, FL 32216
Neil G. Taylor Group Vice None
Suite 425 President-Seattle/Tacoma
101 Elliott Avenue West
Seattle, WA 98119
Peter S. Velardi Group Vice None
Suite 180 President-Atlanta/Birmingham
1200 Ashwood Parkway
Atlanta, GA 30338
Charles F. Wachendorfer Group Vice None
Suite 100 President-Denver/Salt Lake
Stanford Plaza II City/Albuquerque
7979 East Tufts Ave Pkwy
Denver, CO 80237
Wesley W. Wadman Vice President-Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
<PAGE>
(b) As to each director, officer or partner of the principal underwriter
(American Express Financial Advisors, Inc.) (Con't):
Name and Principal Business Address Position and Offices with Offices with Registrant
Underwriter
- -------------------------------------------- ---------------------------------- --------------------------
Norman Weaver Jr. Senior Vice President-Field None
1010 Main St. Suite 2B Management
Huntington Beach, CA 92648
Michael L. Weiner Vice President-Tax Research and None
IDS Tower 10 Audit
Minneapolis, MN 55440
Lawrence J. Welte Vice President-Investment None
IDS Tower 10 Administration
Minneapolis, MN 55440
Jeffry M. Welter Vice President-Equity and Fixed None
IDS Tower 10 Income Trading
Minneapolis, MN 55440
Thomas L. White Group Vice President-Cleveland None
Suite 200 Metro
28601 Chagrin Blvd.
Woodmere, OH 44122
Eric S. Williams Group Vice President-Virginia None
Suite 250
3951 Westerre Parkway
Richmond, VA 23233
William J. Williams Group Vice President-Western None
Two North Tamiami Trail Florida
Suite 702
Sarasota, FL 34236
Edwin M. Wistrand Vice President and Assistant None
IDS Tower 10 General Counsel
Minneapolis, MN 55440
Michael D. Wolf Vice President- Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
Michael R. Woodward Senior Vice President-Field None
32 Ellicott St Management
Suite 100
Batavia, NY 14020
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
(c)
Name of Net Underwriting
Principal Discounts and Compensation on Brokerage
Underwriter Commissions Redemption Commissions Compensation
<S> <C> <C> <C> <C>
American Express $1,067,783 $688,445 None None
Financial Advisors
Inc.
</TABLE>
Item 30. Location of Accounts and Records
IDS Life Insurance Company of New York
20 Madison Avenue Extension
Albany, NY 12203
Item 31. Management Services
Not applicable.
Item 32. Undertakings
(a) (b) & (c) These undertakings were filed with the Registrant's
initial Registration Statement, File No. 33-52567.
(d) The sponsoring insurance company represents that the fees and
charges deducted under the contract, in the aggregate, are
reasonable in relation to the services rendered, the expenses
expected to be incurred, and the risks assumed by the insurance
company.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, IDS Life Insurance Company of New York, on behalf of the Registrant,
certifies that it meets the requirements for effectiveness of this Amendment to
its Registration Statement pursuant to Rule 485(b) under the Securities Act of
1933 and has duly caused this Registration Statement to be signed on its behalf,
in the City of Minneapolis, and State of Minnesota, on the 22nd day of April,
1998.
IDS LIFE ACCOUNT 4
IDS LIFE ACCOUNT 5
IDS LIFE ACCOUNT 6
IDS LIFE ACCOUNT 9
IDS LIFE ACCOUNT 10
IDS LIFE ACCOUNT 11
IDS LIFE ACCOUNT 12
IDS LIFE ACCOUNT 13
IDS LIFE ACCOUNT 14
(Registrant)
By IDS Life Insurance Company of New York
(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 22nd day of
April, 1998.
Signature Title
/s/ Richard W. Kling* Director, Chairman of the
Richard W. Kling Board and President
/s/ John C. Boeder* Director
John C. Boeder
/s/ Roger C. Corea* Director
Roger C. Corea
/s/ Charles A. Cuccinello* Director
Charles A. Cuccinello
/s/ Darlene S. Farron* Director
Darlene S. Farron
<PAGE>
Signature Title
/s/ Robert A. Hatton* Director, Vice President
Robert A. Hatton and Chief Operating Officer
/s/ Edward Landes* Director
Edward Landes
/s/ Thomas V. Nicolosi* Director
Thomas V. Nicolosi
/s/ Steven P. Norman* Director
Steven P. Norman
/s/ Carl Platou* Director
Carl Platou
/s/ Gordon H. Ritz* Director
Gordon H. Ritz
/s/ Richard M. Starr* Director
Richard M. Starr
/s/ Michael R. Woodward* Director
Michael R. Woodward
*Signed pursuant to Power of Attorney, dated March 26, 1997, filed
electronically as Exhibit 15 to Post-Effective Amendment No. 5 to Registration
Statement No. 33-52567, by
- ------------------------------
Sherilyn K. Beck
<PAGE>
CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 6
This Registration Statement 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.
IDS LIFE OF NEW YORK EMPLOYEE BENEFIT ANNUITY
Registration No. 33-52567/811-3500
EXHIBIT INDEX
Exhibit 9 : Opinion of Counsel
Exhibit 10: Consent of Independent Auditors
Exhibit 11: Financial Statement Schedules and Report of Independent Auditors.
Exhibit 14: Financial Data Schedules.
April 22nd, 1998
IDS Life Insurance Company of New York
20 Madison Avenue Extension
Albany, New York 12203
RE: Registration Statement on Form N-4
File No.: 33-52567
Ladies and Gentlemen:
I am familiar with the establishment of the IDS Life of New York Accounts 4, 5,
6, 9, 10, 12, 13 and 14 ("Account"), which is a separate account of IDS Life
Insurance Company of New York ("Company") established by the Company's Board of
Directors according to applicable insurance law. I also am familiar with the
above-referenced Registration Statement filed by the Company on behalf of the
Account with the Securities and Exchange Commission.
I have made such examination of law and examined such documents and records as
in my judgment are necessary and appropriate to enable me to give the following
opinion:
1. The Company is duly incorporated, validly existing and in good standing under
applicable state law and is duly licensed or qualified to do business in each
jurisdiction where it transacts business. The Company has all corporate powers
required to carry on its business and to issue the contracts.
2. The Account is a validly created and existing separate account of the company
and is duly authorized to issue the securities registered.
3. The contracts issued by the Company during the past fiscal year, when offered
and sold in accordance with the prospectus contained in the Registration
Statement and in compliance with applicable law, were legally issued and
represent binding obligations of the Company in accordance with their terms.
I hereby consent to the filing of this opinion as an exhibit to the Registration
Statement.
Sincerely,
Mary Ellyn Minenko
Senior Counsel
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 5, 1998 on the financial statements
and schedules of IDS Life Insurance Company of New York and our report dated
March 13, 1998 on the financial statements of IDS Life of New York Accounts 4,
10, 11, 5, 6, 9, 12, 13 and 14, in Post Effective Amendment No. 6 to the
Registration Statement (Form N-4, No. 33-52567) and related Prospectus for the
registration of the Employee Benefit Annuity to be offered by IDS Life Insurance
Company of New York.
Ernst & Young LLP
Minneapolis, Minnesota
April 20, 1998
<PAGE>
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company of New York
We have audited the financial statements of IDS Life Insurance Company of New
York (a wholly owned subsidiary of IDS Life Insurance Company) as of December
31, 1997 and 1996, and for each of the three years in the period ended December
31, 1997 and have issued our report thereon dated February 5, 1998 (included
elsewhere in this Registration Statement). Our audits also included the
financial statement schedules listed in the index to financial statement
schedules 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.
Ernst & Young LLP
Minneapolis, Minnesota
February 5, 1998
<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS
OTHER THAN INVESTMENTS IN RELATED PARTIES ($ thousands)
AS OF DECEMBER 31, 1997
- -----------------------------------------------------------------------------
Column A Column B Column C Column D
Type of Investment Cost Value Amount at which
shown in the
balance sheet
- -----------------------------------------------------------------------------
Fixed maturities:
Held to maturity:
United States Government and
government agencies and
authorities (a) $ 59,543 $ 59,954 $ 59,543
All other corporate bonds 476,108 503,025 476,108
---------- ----------- ----------------
Total held to maturity 535,651 562,979 535,651
Available for sale:
United States Government and
government agencies and
authorities (b) 293,815 301,506 301,506
States, municipalities and
political subdivisions 104 114 114
All other corporate bonds 289,043 301,956 301,956
---------- ----------- ----------------
Total available for sale 582,962 603,576 603,576
Mortgage loans on real estate 178,826 XXXXXXXXX 178,826
Policy loans 23,349 XXXXXXXXX 23,349
Other investments 970 XXXXXXXXX 970
---------- ----------------
Total investments $ 1,321,758 $XXXXXXXXX $ 1,342,372
========== ================
(a)- Includes mortgage-backed securities with a cost and market value of
$55,853 and $56,011, respectively.
(b)- Includes mortgage-backed securities with a cost and market value of
$293,815 and $301,506, respectively.
(c)- Includes mortgage-backed securities with a cost and market value
of $7,488 and $7,764, respectively.
<PAGE>
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1997
Column A Column B Column C Column D Column E Column F Column G Column H Column I Column J Column K
Segment Deferred Future Unearned Other Premium Net Benefits, Amortization Other Premiums
policy policy premiums policy revenue investment claims, of deferred operating written
acquisition benefits, claims income* losses and policy expenses*
cost losses, and settlement acquisition
claims and benefits expenses costs
loss payable
expenses
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Annuities $68,386 $964,483 $ - $ 1,848 $ - $ 89,268 $ 495 $ 12,266 $ 4,653 N/A
Life, DI and
Long-term Care
Insurance 58,228 198,213 - 2,165 12,376 17,006 10,969 4,935 5,567 N/A
- -------------------------------------------------------------------------------------------------------------------------
Total $126,614 $1,162,696 $ - $ 4,013 $12,376 $106,274 $11,464 $ 17,201 $10,220 N/A
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Allocations of net investment income and other operating expenses are based on
various assumptions and estimates.
<PAGE>
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1996
Column A Column B Column C Column D Column E Column F Column G Column H Column I Column J Column K
Segment Deferred Future Unearned Other Premium Net Benefits, Amortization Other Premiums
policy policy premiums policy revenue investment claims, of deferred operating written
acquisition benefits, claims income* losses and policy expenses*
cost losses, and settlement acquisition
claims and benefits expenses costs
loss payable
expenses
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Annuities $67,568 $1,054,954$ - $ 1,055 $ - $ 93,319 $ 80 $ 11,257 $ 3,923 N/A
Life, DI and
Long-term Care
Insurance 51,615 187,616 - 2,100 10,931 16,149 10,835 4,814 5,049 N/A
- -----------------------------------------------------------------------------------------------------------
Total $119,183 $1,242,570$ - $ 3,155 $10,931 $109,468 $10,915 $ 16,071 $ 8,972 N/A
- ------------------------------------------------------------------------------------------------------------
</TABLE>
*Allocations of net investment income and other operating expenses are based on
various assumptions and estimates.
<PAGE>
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
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 Column H Column I Column J Column K
Segment Deferred Future Unearned Other Premium Net Benefits, Amortization Other Premiums
policy policy premiums policy revenue investment claims, of deferred operating written
acquisition benefits, claims income* losses and policy expenses*
cost losses, and settlement acquisition
claims and benefits expenses costs
loss payable
expenses
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Annuities $ 65,283 $1,109,167$ - $ 2,222 $ - $ 95,323 $ 171 $ 9,138 $ 6,908 N/A
Life, DI and
Long-term Care
Insurance 44,517 178,952 - 1,422 9,280 15,601 9,689 3,947 566 N/A
- -----------------------------------------------------------------------------------------------------------------
Total $ 109,800 $1,288,119$ - $ 3,644 $ 9,280 $110,924 $ 9,860 $ 13,085 $ 7,474 N/A
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
*Allocations of net investment income and other operating expenses are based on
various assumptions and estimates.
<PAGE>
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE IV - REINSURANCE ($ thousands)
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
- ---------------------------------------------------------------------------------------------------
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, 1997
Life insurance in force $ 4,209,990 $ 220,798 $ 303,263 $ 4,292,455 7.07%
===================================================================================================
Premiums:
Life insurance & annuities $ 2,822 $ 346 $ -- $ 2,476 0.00%
DI & long-term care insurance 10,658 759 -- 9,899 0.00%
- ---------------------------------------------------------------------------------------------------
Total premiums $ 13,480 $ 1,105 $ 0 $ 12,375 0.00%
===================================================================================================
For the year ended
December 31, 1996
Life insurance in force $ 3,707,618 $ 203,963 $ 345,943 $ 3,849,598 8.99%
===================================================================================================
Premiums:
Life insurance & annuities $ 2,634 $ 222 $ -- $ 2,412 0.00%
DI & long-term care insurance 8,651 132 -- 8,519 0.00%
- ---------------------------------------------------------------------------------------------------
Total premiums $ 11,285 $ 354 $ 0 $ 10,931 0.00%
===================================================================================================
For the year ended
December 31, 1995
Life insurance in force $ 3,110,745 $ 163,462 $ 392,106 $ 3,339,389 11.74%
===================================================================================================
Premiums:
Life insurance & annuities $ 2,327 $ 185 $ -- $ 2,142 0.00%
DI & long-term care insurance 7,221 83 -- 7,138 0.00%
- ---------------------------------------------------------------------------------------------------
Total premiums $ 9,548 $ 268 $ 0 $ 9,280 0.00%
===================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS ($ thousands)
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
- -----------------------------------------------------------------------------------------------
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, 1997
- ---------------------------
Reserve for Mortgage Loans . $1,300 $ 200 $ 0 $ 0 $1,500
Reserve for Fixed Maturities $ 49 $ 96 $ 0 $ 0 $ 145
For the year ended
December 31, 1996
- ---------------------------
Reserve for Mortgage Loans . $ 445 $ 855 $ 0 $ 0 $1,300
Reserve for Fixed Maturities $ 26 $ 23 $ 0 $ 0 $ 49
For the year ended
December 31, 1995
- ---------------------------
Reserve for Mortgage Loans . $ 445 $ 0 $ 0 $ 0 $ 445
Reserve for Fixed Maturities $ 0 $ 26 $ 0 $ 0 $ 26
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLAR
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 830493345
<INVESTMENTS-AT-VALUE> 972461215
<RECEIVABLES> 1132391
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 973593606
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> (1903638)
<TOTAL-LIABILITIES> (1903638)
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
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