IDS LIFE VARIABLE ACCOUNT FOR SHEARSON LEHMAN
N-30B-2, 1994-05-09
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(icon of) four squares with a circle in the middle.

Smith Barney Shearson LifeVest(sm)

Smith
Barney
Shearson
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Annual Financial Information

Report of Independent Auditors

The Board of Directors IDS Life Insurance Company

We have audited the accompanying individual and combined statements
of net assets of the segregated asset subaccounts of IDS Life
Variable Account for Smith Barney Shearson for Single Premium
Variable Life Insurance as of December 31, 1993, and the related
statements of operations and changes in net assets for each of the
three years in the period then ended.  These financial statements
are the responsibility of the management of IDS Life Insurance
Company.  Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with generally accepted
auditing standards.  Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis,  evidence supporting the
amounts and disclosures in the financial statements.  Our
procedures included confirmation by the underlying affiliated
mutual fund and unit investment trusts of securities owned at
December 31, 1993.  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 the segregated asset subaccounts of IDS Life
Variable Account for Smith Barney Shearson  for Single Premium
Variable Life Insurance at December 31, 1993 and the individual and
combined results of their operations and the changes in their net
assets for each of the three years in the period then ended in
conformity with generally accepted accounting principles.      

ERNST & YOUNG 
Minneapolis,  Minnesota 
March 18, 1994
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<TABLE><CAPTION>
IDS Life Variable Account for Smith Barney Shearson
Statements of Net Assets                                                                                          Dec. 31, 1993
                                                                                                                       Combined
                                                                                                                       Variable
Assets                          SAP            SMM          SHI          STR         SGO         S95         S04       Account 
<S>                         <C>           <C>         <C>           <C>          <C>         <C>        <C>        <C>   
Investments in shares of mutual 
fund portfolios and units of the 
trusts, at market value:
IDS Life Series Fund Equity 
Portfolio -- 501,505 shares at 
net asset value of $20.73 per 
share (cost $5,855,891).... $10,394,685   $       --   $       --   $       --   $       --   $     --   $     --   $10,394,685
IDS Life Series Fund Money 
Market Portfolio -- 1,217,667 
shares at net asset value of 
$1.00 per share 
(cost $1,217,629)..........          --    1,217,631           --           --           --         --         --     1,217,631
IDS Life Series Fund Income 
Portfolio -- 136,809 shares 
at net asset value of $10.43 
per share 
(cost $1,562,483)..........          --           --    1,426,349           --           --         --         --     1,426,349
IDS Life Series Fund Managed 
Portfolio -- 430,094 shares 
at net asset value of $15.94 
per share (cost $5,644,697).         --           --           --    6,857,657           --         --         --     6,857,657
IDS Life Series Fund 
Government Securities 
Portfolio -- 179,322 shares 
at net asset value of 
$10.71 per share 
(cost $1,723,992)...........         --           --           --           --    1,921,118         --         --     1,921,118
Smith Barney Shearson 
Stripped ("Zero Coupon") 
U.S.  Treasury Securities 
Fund, Series A 1995 Trust -- 
1,031,804 units at net asset 
value of $0.93 per unit 
(cost $824,127).............         --           --           --           --           --    957,173         --       957,173
Smith Barney Shearson
Stripped ("Zero Coupon") 
U.S.  Treasury Securities 
Fund, Series A 2004 Trust -- 
473,100 units at net asset 
value of $0.52 per unit 
(cost $160,945).............         --           --           --           --           --         --    244,353       244,353
                             10,394,685    1,217,631    1,426,349    6,857,657    1,921,118    957,173    244,353    23,018,966
Dividends receivable........         --        2,684        8,194           --        9,251         --         --        20,129
Total assets................ 10,394,685    1,220,315    1,434,543    6,857,657    1,930,369    957,173    244,353    23,039,095
Liabilities                                                                                                                    
Payable to IDS Life for:
Mortality and expense 
risk charge.................     42,586        2,500        2,911       28,376        3,935        486        123        80,917
Minimum death benefit 
guarantee risk charge.......         --           --           --           --           --        324         82           406
Issue and administrative 
charge......................         --           --           --           --           --        324         82           406
Distribution charge.........         --           --           --           --           --        243         61           304
Mortality charge............         --           --           --           --           --        405        103           508
Premium tax charge..........         --           --           --           --           --        162         41           203
Transaction charge..........         --           --           --           --           --        203         51           254
Payable to mutual fund 
portfolios for investments 
purchased...................         --          183        5,283           --        5,316         --         --        10,782
Total liabilities...........     42,586        2,683        8,194       28,376        9,251      2,147        543        93,780
Net assets applicable 
to Variable Life contracts
in accumulation period..... $10,352,099   $1,217,632   $1,426,349   $6,829,281   $1,921,118   $955,026   $243,810   $22,945,315
Accumulation units 
outstanding................   4,254,205      981,708    1,143,994    3,397,116    1,264,164    660,189    138,773
Net asset value per 
accumulation unit..........       $2.43        $1.24        $1.24        $2.01        $1.52      $1.44      $1.74

See accompanying notes to financial statements. 
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IDS Life Variable Account for Smith Barney Shearson
Statements of Operations                                                                                          Dec. 31, 1993
                                                                                                                       Combined
                                                                                                                       Variable
Assets                          SAP            SMM          SHI          STR         SGO         S95         S04       Account 
Investment income (loss):
Dividend income from mutual 
fund portfolios............   $ 307,339      $38,325      $95,105     $656,815     $137,778   $     --   $     --    $1,235,362
Expenses:
Mortality and expense risk 
charge (Note 4)............      58,631        8,761        8,064       38,803       12,653      5,012      1,733       133,657
Minimum death benefit 
guarantee risk charge 
(Note 5)...................      39,165        5,852        5,387       25,632        8,452      3,341      1,156        88,985
Issue and administrative 
expense charge (Note 6)....      39,165        5,852        5,387       25,632        8,452      3,341      1,156        88,985
Distribution charge 
(Note 8)...................      29,315        4,380        4,032       19,185        6,326      2,506        867        66,611
Mortality charge (Note 3)..      48,781        7,289        6,709       31,924       10,527      4,179      1,440       110,849
Premium tax charge 
(Note 7)...................      19,465        2,909        2,677       12,739        4,201      1,668        583        44,242
Transaction charge 
(Note 9)...................          --           --           --           --           --      2,088        722         2,810
Total expenses.............     234,522       35,043       32,256      153,915       50,611     22,135      7,657       536,139
Investment income 
(loss) -- net..............      72,817        3,282       62,849      502,900       87,167    (22,135)    (7,657)      699,223
Realized and Unrealized Gain (Loss) on Investments -- Net                                                                      
Net realized gain (loss) on sales 
of investments in mutual fund
portfolios and in the trusts:
Proceeds from sales........   1,345,003    1,203,405       89,939      497,368      447,885     26,049    227,221     3,836,870
Cost of investments sold...     828,587    1,203,397       98,000      441,282      402,245     22,666    146,742     3,142,919
Net realized gain (loss) 
on investments.............     516,416            8       (8,061)      56,086       45,640      3,383     80,479       693,951
Net change in unrealized 
appreciation or depreciation 
of investments.............     382,899          (12)      90,410      446,748       57,303     42,819    (14,049)    1,006,118
Net gain (loss) on 
investments................     899,315           (4)      82,349      502,834      102,943     46,202     66,430     1,700,069
Net increase in net assets 
resulting from operations..    $972,132       $3,278     $145,198   $1,005,734     $190,110    $24,067    $58,773    $2,399,292
See accompanying notes to financial statements.
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IDS Life Variable Account for Smith Barney Shearson
Statements of Operations                                                                                          Dec. 31, 1992
                                                                                                                       Combined
                                                                                                                       Variable
Assets                          SAP            SMM          SHI          STR         SGO         S95         S04       Account 
Investment income (loss):
Dividend income from mutual 
fund portfolios............   $ 449,612   $   67,137   $   78,166   $  767,982   $  134,437   $     --   $     --   $ 1,497,334
Expenses:
Mortality and expense risk 
charge (Note 4)............      54,840       12,098        5,923       34,723       12,091      4,139      2,878       126,692
Minimum death benefit 
guarantee risk charge 
(Note 5)...................      36,633        8,082        3,957       23,195        8,077      2,760      1,920        84,624
Issue and administrative 
expense charge (Note 6)....      36,633        8,082        3,957       23,195        8,077      2,760      1,920        84,624
Distribution charge 
(Note 8)...................      27,420        6,049        2,962       17,362        6,045      2,067      1,440        63,345
Mortality charge (Note 3)..      45,627       10,066        4,928       28,890       10,060      3,450      2,409       105,430
State premium tax charge 
(Note 7)...................      18,207        4,017        1,967       11,528        4,014      1,383        949        42,065
Transaction charge (Note 9)          --           --           --           --           --      1,725      1,199         2,924
Total expenses.............     219,360       48,394       23,694      138,893       48,364     18,284     12,715       509,704
Investment income (loss) 
- -- net.....................     230,252       18,743       54,472      629,089       86,073    (18,284)   (12,715)      987,630
Realized and Unrealized Gain (Loss) on Investments -- Net                                                                      
Net realized gain (loss) on 
sales of investments in 
mutual fund portfolios and 
in the trusts:
Proceeds from sales........   1,683,859    1,465,872      112,418      797,152      490,926    856,925    704,727     6,111,879
Cost of investments sold...   1,067,667    1,465,891      142,108      693,473      468,772    674,555    445,547     4,958,013
Net realized gain (loss) 
on investments.............     616,192          (19)     (29,690)     103,679       22,154    182,370    259,180     1,153,866
Net change in unrealized 
appreciation or depreciation 
of investments.............    (697,008)          28       42,517     (296,698)     (36,078)  (118,696)  (189,214)   (1,295,149)
Net gain (loss) on 
investments................     (80,816)           9       12,827     (193,019)     (13,924)    63,674     69,966      (141,283)
Net increase in net assets 
resulting from operations..    $149,436   $   18,752   $   67,299   $  436,070   $   72,149   $ 45,390   $ 57,251   $   846,347 
See accompanying notes to financial statements.
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IDS Life Variable Account for Smith Barney Shearson
Statements of Operations                                                                                          Dec. 31, 1991
                                                                                                                      Combined
                                                                                                                      Variable
Assets                          SAP            SMM          SHI          STR      SGO       S91*     S95      S04      Account 
Investment income:  
Dividend income from 
mutual fund portfolios.....   $40,153      $110,915     $81,016     $372,332    $137,660  $    -- $     --  $    --  $  742,076
Expenses:  
Mortality and expense 
risk charge (Note 4).......    52,172        11,791       5,863       32,824      11,590      777    5,339    4,398     124,754
Minimum death benefit 
guarantee risk charge 
(Note 5)...................    34,851         7,876       3,916       21,926       7,742      518    3,559    2,932      83,320
Issue and administrative 
charge (Note 6)............    34,851         7,876       3,916       21,926       7,742      518    3,559    2,932      83,320
Distribution expense 
charge (Note 8)............    26,086         5,895       2,931       16,412       5,795      388    2,669    2,199      62,375
Mortality charge (Note 3)..    43,407         9,810       4,878       27,309       9,643      648    4,449    3,666     103,810
State premium tax charge 
(Note 7)...................    17,321         3,915       1,946       10,897       3,848      259    1,780    1,466      41,432
Transaction charge (Note 9)        --            --          --           --          --      324    2,224    1,833       4,381
Total expenses.............   208,688        47,163      23,450      131,294      46,360    3,432   23,579   19,426     503,392
Investment income (loss) 
- -- net.....................  (168,535)       63,752      57,566      241,038      91,300   (3,432) (23,579) (19,426)    238,684
Realized and Unrealized Gain (Loss) on Investments -- Net                                                                      
Net realized gain (loss) on 
sales of investments in mutual 
fund portfolios and in 
the trusts:  
Proceeds from sales........ 1,807,019     1,560,344     403,520      790,109     352,479  170,809  291,028  481,604   5,856,912
Cost of investments sold... 1,297,605     1,560,357     557,253      743,929     351,524  130,126  233,752  469,711   5,344,257
Net realized gain (loss) 
on investments.............   509,414           (13)   (153,733)      46,180         955   40,683   57,276   11,893     512,655
Net change in unrealized 
appreciation or depreciation 
of investments............. 3,800,747           (14)    213,469    1,119,227     174,741  (31,772)  69,043  129,816   5,475,257
Net gain (loss) on 
investments................ 4,310,161           (27)     59,736    1,165,407     175,696    8,911  126,319  141,709   5,987,912
Net increase in net assets 
resulting from operations..$4,141,626     $  63,725   $ 117,302   $1,406,445    $266,996 $  5,479 $102,740 $122,283  $6,226,596
*   For the period from Jan. 1, 1991 to Nov. 15, 1991, date of maturity of securities in 1991 Trust. 

See accompanying notes to financial statements.
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IDS Life Variable Account for Smith Barney Shearson
Statements of Changes in Net Assets                                                               Year Ended Dec. 31, 1993
                                                                                                                  Combined
                                                           Segregated Asset Subaccounts                           Variable
Operations                   SAP          SMM          SHI          STR         SGO        S95          S04        Account
Investment income 
(loss) -- net......... $    72,817   $    3,282   $   62,849   $  502,900   $   87,167   $(22,135)  $   (7,657) $  699,223        
Net realized gain  
(loss) on investments.     516,416            8       (8,061)      56,086       45,640      3,383       80,479     693,951
Net change in unrealized 
appreciation or depreciation 
of investments........     382,899          (12)      90,410      446,748       57,303     42,819      (14,049)  1,006,118
Net increase in net assets 
resulting from
operations............     972,132        3,278      145,198    1,005,734      190,110     24,067       58,773   2,399,292
Contract Transactions                                                                                                     
Net transfers*........    (103,927)    (387,053)     287,269      164,627     (260,851)   521,208     (225,496)     (4,223)
Transfers for policy 
loans.................    (308,346)      (7,070)      28,406     (200,579)     (51,754)    (9,440)    (1,725)     (550,508)
Contract terminations:
Surrender benefits 
(Note 10).............    (189,094)    (190,667)     (24,840)    (140,531)     (17,778)   (16,527)        --      (579,437)
Death benefits........    (111,939)          --      (12,036)     (37,784)          --         --         --      (161,759)
Increase (decrease) from 
contract transactions.    (713,306)    (584,790)     278,799     (214,267)    (330,383)   495,241   (227,221)   (1,295,927)
Net assets at beginning 
of year...............  10,093,273    1,799,144    1,002,352    6,037,814    2,061,391    435,718    412,258    21,841,950
Net assets at end 
of year............... $10,352,099   $1,217,632   $1,426,349   $6,829,281   $1,921,118   $955,026   $243,810   $22,945,315
Accumulation Unit Activity                                                                                                
Units outstanding at 
beginning of year.....   4,592,261    1,452,324      901,445    3,515,251    1,485,851    313,484    279,808
Net transfers*........     (54,533)    (311,599)     247,635       89,671     (174,974)   364,753   (140,041)
Transfers for policy 
loans.................    (142,193)      (5,688)      24,763     (110,894)     (35,008)    (6,596)      (994)
Contract terminations:
Surrender benefits....     (89,875)    (153,329)     (19,927)     (76,282)     (11,705)   (11,452)        --
Death benefits........     (51,455)          --       (9,922)     (20,630)          --         --         --
Units outstanding at 
end of year...........   4,254,205      981,708    1,143,994    3,397,116    1,264,164    660,189    138,773              
*Includes transfer activity from (to) other subaccounts.

See accompanying notes to financial statements.
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IDS Life Variable Account for Smith Barney Shearson
Statements of Changes in Net Assets                                                               Year Ended Dec. 31, 1992 
                                                                                                                  Combined
                                                 Segregated Asset Subaccounts                                     Variable
Operations                  SAP           SMM          SHI          STR         SGO          S95       S04         Account
Investment income 
(loss) -- net.........   $ 230,252   $   18,743   $   54,472   $  629,089   $   86,073   $(18,284)  $(12,715)   $  987,630
Net realized gain 
(loss) on 
investments...........     616,192          (19)     (29,690)     103,679       22,154    182,370    259,180     1,153,866
Net change in unrealized 
appreciation or depreciation 
of investments........    (697,008)          28       42,517     (296,698)     (36,078)  (118,696)  (189,214)   (1,295,149)
Net increase in net assets 
resulting from 
operations............     149,436       18,752       67,299      436,070       72,149     45,390     57,251       846,347
Contract Transactions                                                                                                     
Net transfers*........     141,821     (387,213)      53,329      275,500      (99,055)  (141,038)   161,295         4,639
Transfers for policy 
loans.................    (336,538)     (29,365)     (31,135)     (80,972)     (35,264)  (243,697)    (5,279)     (762,250)
Contract terminations:
Surrender benefits 
(Note 10).............    (350,903)     (39,984)     (71,098)    (471,971)    (149,104)        --   (162,340)   (1,245,400)
Death benefits........          --           --           --     (153,828)     (23,901)        --         --      (177,729)
Decrease from contract 
transactions..........    (545,620)    (456,562)     (48,904)    (431,271)    (307,324)  (384,735)    (6,324)   (2,180,740)
Net assets at beginning 
of year...............  10,489,457    2,236,954      983,957    6,033,015    2,296,566    775,063    361,331    23,176,343
Net assets at end 
of year............... $10,093,273   $1,799,144   $1,002,352   $6,037,814   $2,061,391   $435,718   $412,258   $21,841,950
Accumulation Unit Activity                                                                                                
Units outstanding at 
beginning of year.....   4,902,441    1,821,765      947,338    3,784,467    1,724,462    584,551    261,400
Net transfers*........      46,202     (313,424)      51,369      176,454      (79,011)   (85,649)   132,500
Transfers for policy 
loans.................    (176,027)     (23,712)     (29,737)     (51,856)     (26,564)  (185,418)    (3,619)
Contract terminations:
Surrender benefits....    (180,355)     (32,305)     (67,525)    (297,503)    (114,337)        --   (110,473)
Death benefits........          --           --           --      (96,311)     (18,699)        --         --              
Units outstanding at 
end of year...........   4,592,261    1,452,324      901,445    3,515,251    1,485,851    313,484    279,808              
Includes transfer activity from (to) other subaccounts. 

See accompanying notes to financial statements.
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IDS Life Variable Account for Smith Barney Shearson
Statements of Changes in Net Assets                                                                 Year Ended Dec. 31, 1991
                                                                                                                    Combined
                                                   Segregated Asset Subaccounts                                     Variable  
Operations              SAP         SMM        SHI         STR         SGO        S91*        S95        S04         Account
Investment income 
(loss) -- net....   $(168,535) $   63,752  $   57,566  $  241,038  $   91,300  $ (3,432)  $ (23,579)  $(19,426)  $   238,684
Net realized gain 
(loss) on 
investments......     509,414         (13)   (153,733)     46,180         955    40,683      57,276     11,893       512,655
Net change in unrealized 
appreciation or depreciation 
of investments...   3,800,747         (14)    213,469   1,119,227     174,741   (31,772)     69,043    129,816     5,475,257
Net increase in net 
assets resulting 
from operations...  4,141,626      63,725     117,302   1,406,445     266,996     5,479     102,740    122,283     6,226,596
Contract Transactions                                                                                                       
Net transfers**...   (183,150)    351,239     (99,993)     54,625     471,260  (117,522)    (12,555)  (462,556)        1,348
Transfers for policy 
loans.............   (231,562)   (167,420)    (21,771    (125,793)    (36,694)     (446)    (21,934)    (7,921)     (613,541)
Contract terminations:
Surrender benefits  
(Note 10).........   (428,220)   (412,451)   (217,433)   (340,845)   (177,614)  (52,841)   (242,339)        --    (1,871,743)
Death benefits....         --          --          --    (114,299)    (40,587)       --          --         --      (154,886)
Increase (decrease) 
from contract 
transactions......   (842,932)   (228,632)   (339,197)   (526,312)    216,365  (170,809)   (276,828)  (470,477)   (2,638,822)
Net assets at beginning 
of year...........  7,190,763   2,401,861   1,205,852   5,152,882   1,813,205    65,330     949,151    709,525    19,588,569
Net assets at end 
of year...........$10,489,457  $2,236,954  $  983,957  $6,033,015  $2,296,566  $     --    $775,063   $361,331   $23,176,343
Accumulation Unit Activity                                                                                                  
Units outstanding at 
beginning of year.  5,463,748   2,037,625   1,310,208   4,172,959   1,548,349   141,846     811,469    604,775
Net transfers**...   (137,869)    283,061    (107,484)     37,176     392,415   (97,505)    (10,540)  (337,240)
Transfers for policy 
loans.............   (135,793)   (138,012)    (22,368)    (89,844)    (30,460)     (375)    (18,390)    (6,135)
Contract terminations:
Surrender 
benefits..........   (287,645)   (360,909)   (233,018)   (259,448)   (151,661)  (43,966)   (197,988)        --
Death benefits....         --          --          --     (76,376)    (34,181)       --          --         --             
Units outstanding at 
end of year.......  4,902,441   1,821,765     947,338   3,784,467   1,724,462        --     584,551    261,400              
*   For the period from Jan. 1, 1991 to Nov. 15, 1991, date of maturity of securities in 1991 Trust.
**   Includes transfer activity from (to) other subaccounts.

See accompanying notes to financial statements.
/TABLE
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PAGE 10
IDS Life Variable Account for Smith Barney Shearson
Notes to Financial Statements                                       
1.  Organization

IDS Life Variable Account for Smith Barney Shearson, formerly IDS
Life Variable Account for Shearson Lehman, (the Variable Account)
was established on April 23, 1986 as a segregated asset account of
IDS Life Insurance Company (IDS Life) under Minnesota law and is
registered as a single unit investment trust under the Investment
Company Act of 1940.  Operations of the Variable Account commenced
on Oct. 3, 1986. The Variable Account is comprised of seven
subaccounts.  The assets of each subaccount of the Variable Account
are not chargeable with liabilities arising out of the business
conducted by any other Subaccount, Account or by IDS Life.  The
assets of the Variable Account shall be available, however, to
cover the liabilities of IDS Life to the extent the assets of the
Variable Account exceed its liabilities arising under the policies
supported by it.  Currently, five of the Variable Account
subaccounts invest in shares of the corresponding portfolios of the
IDS Life Series Fund, Inc. (the mutual fund).  Prior to Dec. 28,
1990, these same subaccounts invested in shares of the
corresponding portfolios of the Shearson Lehman Series Fund.  The
other two subaccounts invest in units of the Smith Barney Shearson
Stripped ("Zero Coupon") U.S.  Treasury Securities Fund
(individually, a Trust or collectively, the Trusts).  Policy owners
allocate their premium payment to one or more of the seven
subaccounts.  Such funds are then invested in shares of five
portfolios of IDS Life Series Fund, Inc.  or two units of Smith
Barney Shearson Stripped ("Zero Coupon") U.S.  Treasury Securities
Fund.  Organizational expenses for the Variable Account were paid
by IDS Life.

The mutual fund, which commenced operations Jan. 20, 1986, is
registered under the Investment Company Act of 1940   as a
diversified, open-end management investment company.  Funds
allocated to Subaccount SAP are invested in the shares of the
Equity Portfolio; Subaccount SMM invests in the shares of the Money
Market Portfolio; Subaccount SHI invests in the shares of the
Income Portfolio; Subaccount STR invests in the shares of the
Managed Portfolio; and Subaccount SGO invests in the shares of the
Government Securities Portfolio.

The Trusts,  which commenced operations Aug. 4, 1986, are
registered under the Investment Company Act of 1940 as a unit
investment trust.  Subaccounts 1995 (S95) and 2004 (S04) invest in
units of the Trusts,  with maturity dates of 1995 and 2004,
respectively.  The 1991 Trust matured on Nov. 15, 1991, and it is
no longer available for investment.

Prior to Dec. 28, 1990, the Subaccounts invested in the shares of
the Shearson Lehman Series Fund, which was formed on April 18,
1986.  It is registered under the Investment Company Act of 1940 as
a diversified, open-end management investment company and commenced
operations on Nov. 3, 1986.  Prior to Dec. 28, 1990, funds
allocated to Subaccount SAP were invested in the shares of the
Appreciation Portfolio; Subaccount SMM invested in the shares of
the Money Market Portfolio; Subaccount SHI invested in the shares
of the High Income Bond Portfolio; Subaccount STR invested in the <PAGE>
PAGE 11
shares of the Total Return Portfolio; and Subaccount SGO invested
in the shares of the Government Securities Portfolio.

IDS Life serves as manager and investment adviser for the Variable
Account and the underlying series mutual fund.  Smith Barney
Shearson Inc.  serves as sponsor for the Trusts.

                                                                   

2.  Summary of Significant Accounting Policies

Investments in Mutual Fund Investments in shares of the mutual fund
portfolios are stated at market value which is the net asset value
per share as determined by the   respective portfolios.  Investment
transactions are accounted for on the date the shares are purchased
and sold.  The costs of investments sold and redeemed is determined
on the average cost method.  Dividend distributions received from
the portfolios are reinvested, net of any expenses payable to IDS
Life, in additional shares of the portfolios and recorded as income
by the subaccounts on the ex-dividend date.

Unrealized appreciation or depreciation of investments in the
accompanying financial statements represents the subaccounts' share
of the portfolios' undistributed net investment income,
undistributed realized gain or loss and the unrealized appreciation
or depreciation on their investment securities. Investments in
Trusts Investments in units of the Trusts are stated at market
value which is the net asset value per unit as determined by the
respective trust.  Investment transactions are accounted for   on
the date the units are purchased and sold. The cost of investments
sold and redeemed is determined on the average cost method.

Unrealized appreciation or depreciation of investments in the
accompanying financial statements represents the subaccounts' share
of the Trusts' undistributed net investment income, undistributed
realized gain or loss and the unrealized appreciation or
depreciation on their investment securities. Federal Income Taxes
IDS Life is taxed as a life insurance company.  The Variable
Account is treated as part of IDS Life for federal income tax
purposes.

Under existing federal income tax law, IDS Life is not subject to
income taxes with respect to any investment income of the Variable
Account.

                                                                   

3.  Mortality Charge

IDS Life deducts a mortality charge equal (except as explained
below), on an annual basis,  to 0.5 percent of the daily net asset
value of the Variable Account.  Prior to the maturity date of the
policy, the death benefit will always be higher than the policy
value.  This deduction will enable IDS Life to pay this additional
amount.  Although    IDS Life does not expect to charge more than
the rate mentioned above, its charge for providing life insurance
protection could be greater.  If, at any time, IDS Life assesses a
charge higher than 0.5 percent for a policy, it will waive any
surrender charges which may exist on that policy.<PAGE>
PAGE 12
                                                                   

4.  Mortality and Expense Risk Charge

IDS Life makes contractual assurances to the Variable Account that
possible future adverse changes in administrative expense and
mortality experience of the policy owners and beneficiaries will
not affect the Variable Account.  The mortality and expense risk
fee paid to IDS Life is computed daily and is equal, on an annual
basis,  to 0.6 percent of the daily net asset value of the Variable
Account.

                                                                   
5.  Minimum Death Benefit Guarantee Risk Charge

IDS Life deducts a minimum death benefit guarantee risk charge
equal, on an annual basis,  to 0.4 percent of the daily net asset
value of the Variable Account.  This deduction is made to
compensate IDS Life for the risk it assumes by providing a
guaranteed minimum death benefit.  The deduction will be made from
the Variable Account and computed on a daily basis.  This charge is
guaranteed for the life of the contract and may not be increased.

                                                                   
6.  Issue and Administrative Expense Charge

IDS Life deducts a charge to compensate it for expenses it incurs
in administering the policy, such as the costs of underwriting the
policy, conducting any medical examinations, establishing and
maintaining records,  and providing reports to policy owners.  This
charge is deducted daily and is equivalent, on an annual basis,  to
0.4 percent of the   daily net asset value of the Variable Account
during the first 10 years of the policy, and to 0.3 percent
thereafter.  There is no necessary relationship between the amount
of the charge imposed on a particular policy and the amount of
administrative expenses that may be attributable to that policy.

                                                                   
7.  State Premium Tax Charge

To cover the premium taxes assessed by the various states and to
compensate IDS Life for the average premium tax expense it incurs
when issuing the policy, IDS Life   deducts a charge equivalent, on
an annual basis,  to 0.2 percent of the daily net asset value of
the Variable Account during the first 10 policy years,  and 0
percent thereafter.

                                                                   

8.  Distribution Expense Charge

IDS Life incurs certain sales and other distribution expenses at
the time the policies are issued.  This charge is equal, on an
annual basis,  to 0.3 percent of the daily average net asset value
of the Variable Account for the first 10 policy years and 0 percent
thereafter.  IDS Life anticipates that this charge, together with
any  applicable surrender charge, will cover the expected costs of
distributing the policies.  In no event will the sum of the <PAGE>
PAGE 13
surrender charge deducted on surrender and cumulative distribution
expense charges previously deducted exceed 9 percent of the single
premium paid.

                                                                   

9.  Transaction Charge

IDS Life makes a daily charge against the assets of each subaccount
investing in the Trusts.  This charge is intended to reimburse IDS
Life for the transaction charge paid directly by IDS Life to Smith
Barney Shearson on the sale of the Trust units to the Variable
Account.  IDS Life pays these amounts from its general account
assets.  The amount of the asset charge is equivalent to an
effective annual rate of 0.25 percent of the account value invested
in the Trusts.  This amount may be increased in the future but in
no event will it exceed an effective annual rate of 0.5 percent of
the Variable Account value.  The charge will be cost-based (taking
into account a loss of interest) with no anticipated element of
profit for IDS Life.  This charge also varies directly with the
size of the account value.

                                                                   

10.  Surrender Charge

IDS Life will use a surrender charge to help it recover certain
selling expenses.  The surrender charge will be deducted during the
first eight policy years.  Further, IDS Life guarantees that the
total cumulative distribution expense charges and the surrender
charge will never exceed 9 percent of the single premium.  Charges
by IDS Life for surrenders are not available on an   individual
segregated asset account basis.  Charges for all segregated asset
accounts amounted to $4,408,562 in 1993, $3,649,836 in 1992 and
$3,264,084 in 1991.  Such charges are not an expense of the
subaccounts or Variable Account.  They are deducted from contract
surrender benefits paid by IDS Life.

                                                                   

11.  Investment Transactions

The subaccounts' purchases of portfolio shares or trust units (net
of charges),   including reinvestment of dividend distributions, 
were as follows:
<TABLE><CAPTION>
                                                             Year Ended Dec. 31,
Subaccount    Investment                             1993             1992           1991  
<S>           <C>                                <C>               <C>           <C>
SAP           Equity Portfolio.................. $  706,537        $1,368,490    $  822,242
SMM           Money Market Portfolio............    621,896         1,028,053     1,391,002
SHI           Income Portfolio..................    431,587           117,986       119,585
STR           Managed Portfolio.................    789,666           996,265       518,855
SGO           Government Securities Portfolio...    204,669           269,675       656,761
S91           1991 Trust........................         --                --        (3,803)
S95           1995 Trust........................    500,326           453,082        (9,710)
S04           2004 Trust........................     (8,389)          685,089        (8,019)
                                                 $3,246,292        $4,918,640    $3,486,913
/TABLE
<PAGE>
PAGE 14
<TABLE><CAPTION>
IDS Life Variable Account for Smith Barney Shearson
                                                                                               
12. Condensed Financial Information (unaudited)
The tables below give per-unit information about the financial history of each Subaccount.                                          
                                                                                        Commencement
                                                                                         Period from 
                                                                                        Oct. 3, 1986 
                                                                                       (Commencement 
                                                                                       of operations) 
                                               Year ended Dec. 31,                        to Dec. 31,
                                 1993     1992     1991     1990     1989     1988     1987     1986
<S>                             <C>      <C>     <C>       <C>      <C>      <C>      <C>      <C>  
Subaccount SAP (invests in Equity Portfolio)
Accumulation unit value at 
beginning of period...........  $2.20    $2.14    $1.32    $1.35    $1.05    $0.97    $1.01    $1.00
Accumulation unit value at 
end of period.................  $2.43    $2.20    $2.14    $1.32    $1.35    $1.05    $0.97    $1.01
Number of accumulation units 
outstanding at end of period 
(000 omitted).................  4,254    4,592    4,902    5,464    5,590    6,111    7,324    1,048
Subaccount SMM (invests in Money Market Portfolio) 
Accumulation unit value at 
beginning of period...........  $1.24    $1.23    $1.18    $1.13    $1.08    $1.04    $1.01    $1.00
Accumulation unit value at 
end of period.................  $1.24    $1.24    $1.23    $1.18    $1.13    $1.08    $1.04    $1.01
Number of accumulation units 
outstanding at end of period 
(000 omitted).................    982    1,452    1,822    2,038    2,005    1,603    2,169      102
Subaccount SHI (invests in Income Portfolio) 
Accumulation unit value at 
beginning of period...........  $1.11    $1.04    $0.92    $1.13    $1.18    $1.06    $1.01    $1.00
Accumulation unit value at 
end of period.................  $1.24    $1.11    $1.04    $0.92    $1.13    $1.18    $1.06    $1.01
Number of accumulation units 
outstanding at end of period 
(000 omitted).................  1,144      901      947    1,310    2,331    3,401    2,666      541
Subaccount STR (invests in Managed Portfolio) 
Accumulation unit value at 
beginning of period...........  $1.72    $1.59    $1.23    $1.25    $1.09    $0.95    $1.00    $1.00
Accumulation unit value at 
end of period.................  $2.01    $1.72    $1.59    $1.23    $1.25    $1.09    $0.95    $1.00
Number of accumulation units 
outstanding at end of period 
(000 omitted).................  3,397    3,515    3,784    4,173    4,388    4,789    4,668      409
Subaccount SGO (invests in Government Securities Portfolio) 
Accumulation unit value at 
beginning of period...........  $1.39    $1.33    $1.17    $1.12    $1.04    $1.00    $1.01    $1.00
Accumulation unit value at 
end of period.................  $1.52    $1.39    $1.33    $1.17    $1.12    $1.04    $1.00    $1.01
Number of accumulation units 
outstanding at end of period 
(000 omitted).................  1,264    1,486    1,724    1,548    1,598    1,672    1,792      360
Subaccount S91* (invests in 1991 Trust) 
Accumulation unit value at 
beginning of period...........     --       --    $1.17    $1.10    $1.01    $0.98    $1.00       --
Accumulation unit value at 
end of period.................     --       --       --    $1.17    $1.10    $1.01    $0.98       --
Number of accumulation units 
outstanding at end of period 
(000 omitted).................     --       --       --      142      129      131       64       --
Subaccount S95** (invests in 1995 Trust)    
Accumulation unit value at 
beginning of period...........  $1.39    $1.32    $1.17    $1.09    $0.97    $0.92    $1.00       --
Accumulation unit value at 
end of period.................  $1.44    $1.39    $1.32    $1.17    $1.09    $0.97    $0.92       --
Number of accumulation units 
outstanding at end of period  
(000 omitted).................    660      313      585      811      499      467      176       --
Subaccount S04 (invests in 2004 Trust)    
Accumulation unit value at 
beginning of period...........  $1.47    $1.38    $1.17    $1.16    $0.96    $0.86    $0.98    $1.00
Accumulation unit value at 
end of period.................  $1.74    $1.47    $1.38    $1.17    $1.16    $0.96    $0.86    $0.98
Number of accumulation units 
outstanding at end of period  
(000 omitted).................    139      280      261      605      636      464      282       72
*   Subaccount S91 commenced operations on Feb. 25, 1987.  The 1991 Trust matured on Nov. 15, 1991.
**   Subaccount S95 commenced operations on Jan. 6, 1987. /TABLE
<PAGE>
PAGE 15
IDS Life Financial Information


The Financial statements shown below are those of the insurance
company and not those of the Fund, the Account or the Trust.  They
are included in the prospectus for the purpose of informing
investors as to the financial condition of the insurance company
and its ability to carry out its obligations under the annuity
contracts.

IDS Life Insurance Company
<TABLE>
<CAPTION>
Consolidated Balance Sheets                                                                  Dec. 31, 1993        Dec. 31,1992

Assets                                                                                                  (Thousands)
______________________________________________________________________________________________________________________________
<S>                                                                                            <C>                 <C>   
Investments:
Fixed maturities (Fair value: 1993, $20,425,979; 1992, $17,896,374)                            $19,392,424         $17,185,879
Mortgage loans on real estate (Fair value: 1993, $2,125,686; 1992, $1,785,970)                   2,055,450           1,688,490
Policy loans                                                                                       350,501             320,016
Other investments                                                                                   56,307              51,955
______________________________________________________________________________________________________________________________
Total investments                                                                               21,854,682          19,246,340
______________________________________________________________________________________________________________________________
Cash and cash equivalents                                                                          146,281              73,563
Receivables:
Reinsurance                                                                                         55,298                   -
Amounts due from brokers                                                                             5,719              20,202
Other accounts receivable                                                                           21,459              20,095
Premiums due                                                                                         1,329               1,361
______________________________________________________________________________________________________________________________
Total receivables                                                                                   83,805              41,658
______________________________________________________________________________________________________________________________
Accrued investment income                                                                          307,177             285,120
Deferred policy acquisition costs                                                                1,652,384           1,440,875
Other assets                                                                                        21,730              18,672
Assets held in segregated asset accounts, primarily common stocks at market                      8,991,694           6,189,545
______________________________________________________________________________________________________________________________
Total assets                                                                                   $33,057,753         $27,295,773
______________________________________________________________________________________________________________________________
Liabilities and Stockholder's Equity
______________________________________________________________________________________________________________________________
Liabilities:
Fixed annuities - future policy benefits                                                       $18,492,135         $16,342,419
Universal life-type insurance - future policy benefits                                           2,753,455           2,567,687
Traditional life-type insurance - future policy benefits                                           210,205             210,886
Disability income, health and long-term care insurance - future policy benefits                    185,272             104,896
Policy claims and other policyholders' funds                                                        44,516              49,899
Deferred federal income taxes                                                                       43,620              87,913
Amounts due to brokers                                                                             351,486             258,654
Other liabilities                                                                                  292,024             235,509
Liabilities related to segregated asset accounts                                                 8,991,694           6,189,545
______________________________________________________________________________________________________________________________
Total liabilities                                                                               31,364,407          26,047,408
______________________________________________________________________________________________________________________________
Stockholder's equity:
Capital stock, $30 per value per share; 100,000 shares authorized, issued and outstanding            3,000               3,000
Additional paid-in capital                                                                         222,000              22,000
Net unrealized appreciation on equity securities                                                       114                 214
Retained earnings                                                                                1,468,232           1,223,151
______________________________________________________________________________________________________________________________
Total stockholder's equity                                                                       1,693,346           1,248,365
______________________________________________________________________________________________________________________________
Total liabilities and stockholder's equity                                                     $33,057,753         $27,295,773
Commitments and contingencies (Note 6)
______________________________________________________________________________________________________________________________
See accompanying notes to consolidated financial statements.
/TABLE
<PAGE>
PAGE 16
<TABLE>
<CAPTION>
Consolidated Statement of Income                                                                         Years ended Dec. 31,
                                                                                                  1993          1992         1991
                                                                                                            (Thousands)
__________________________________________________________________________________________________________________________________
<S>                                                                                          <C>           <C>          <C>
Revenues:
Premiums:                                                               
Traditional life insurance                                                                   $   48,137    $   49,719   $   49,706
Disability income and long-term care insurance                                                   79,108        64,660       52,632
__________________________________________________________________________________________________________________________________
                                                                                                127,245       114,379      102,338
Policyholder and contractholder charges                                                         184,205       156,368      137,202
Management and other fees                                                                       120,139        84,591       61,142
Net investment income                                                                         1,783,219     1,616,821    1,422,866
Net loss on investments                                                                          (6,737)       (3,710)      (5,837)
__________________________________________________________________________________________________________________________________
Total revenues                                                                                2,208,071     1,968,449    1,717,711
__________________________________________________________________________________________________________________________________
Benefits and expenses:
Death and other benefits - traditional life insurance                                            32,136        34,139       30,170
Death and other benefits - universal life-type insurance
and investment contracts                                                                         49,692        42,174       38,529
Death and other benefits - disability income, health and
long-term care insurance                                                                         13,148        10,701        8,242
Increase (decrease) in liabilities for future policy benefits -
traditional life insurance                                                                       (4,513)       (5,788)      (6,425)
Increase (decrease) in liabilities for future policy benefits -
disability income, health and long-term care insurance                                           32,528        27,172       19,700
Interest credited on universal life-type insurance and investment contracts                   1,218,647     1,188,379    1,098,281
Amortization of deferred policy acquisition costs                                               211,733       140,159      116,078
Other insurance and operating expenses                                                          241,974       215,692      153,669
__________________________________________________________________________________________________________________________________
Total benefits and expenses                                                                   1,795,345     1,652,628    1,458,244
__________________________________________________________________________________________________________________________________
Income before income taxes                                                                      412,726       315,821      259,467
Income taxes                                                                                    142,647       104,651       77,430
__________________________________________________________________________________________________________________________________
Net income                                                                                   $  270,079    $  211,170   $  182,037
__________________________________________________________________________________________________________________________________
See accompanying notes to consolidated financial statements.
/TABLE
<PAGE>
PAGE 17
<TABLE>
<CAPTION>
Consolidated Statements of Cash Flows                                                                     Years ended Dec. 31,
                                                                                                  1993          1992         1991
                                                                                                            (Thousands)
__________________________________________________________________________________________________________________________________
<S>                                                                                          <C>           <C>          <C>
Cash flows from operating activities:
Net income                                                                                   $ 270,079     $ 211,170    $  182,037
Adjustments to reconcile net income to net cash provided by operating activities:
Issuance - policy loans, excluding universal life-type insurance                               (35,886)      (32,881)      (29,309)
Repayment - policy loans, excluding universal life-type insurance                               29,557        26,750        19,928
Change in reinsurance receivable                                                               (55,298)            -             -
Change in other accounts receivable                                                             (1,364)       (4,772)       (1,558)
Change in accrued investment income                                                            (22,057)      (15,853)      (26,022)
Change in deferred policy acquisition costs, net                                              (211,509)     (229,252)     (175,442)
Change in liabilities for future policy  benefits for traditional life, disability
income, health and long-term care insurance                                                     79,695        21,384        13,275
Change in policy claims and other policyholders' funds                                          (5,383)       (1,347)       11,801
Change in deferred federal income taxes                                                        (44,237)      (30,385)      (29,207)
Change in other liabilities                                                                     56,515        88,997        45,323
Amortization of premium (accretion of discount), net                                           (27,438)       (4,289)       19,726
Net loss on investments                                                                          6,737         3,710         5,837
Premiums related to universal life-type insurance                                              397,883       312,621       264,504
Surrenders and death benefits related to universal life-type insurance                        (255,133)     (166,162)     (109,307)
Interest credited to account balances related to universal life-type insurance                 156,885       161,873       160,585
Policyholder and contractholder charges, non-cash                                             (115,140)     (100,975)      (96,211)
Other, net                                                                                      (1,907)      (10,647)        2,258
__________________________________________________________________________________________________________________________________
Net cash provided by operating activities                                                    $ 221,999     $ 229,942     $ 258,218
__________________________________________________________________________________________________________________________________
Cash flows from investing activities:
Acquisition of investments, excluding policy loans                                         $(7,102,546)  $(7,001,348)  $(5,518,481)
Maturities, sinking fund payments and calls of investments, excluding policy loans           3,931,819     2,700,479       838,589
Sale of investments, excluding policy loans                                                    613,571     1,073,950     2,274,401
Change in amounts due from brokers                                                              14,483       289,335      (134,312)
Change in amounts due to brokers                                                                92,832        42,182        72,382
__________________________________________________________________________________________________________________________________
Net cash used in investing activities                                                       (2,449,841)   (2,895,402)   (2,467,421)
__________________________________________________________________________________________________________________________________
Cash flows from financing activities:
Considerations received related to investment contracts                                      2,843,668     2,821,069     2,316,333
Surrenders and death benefits related to investment contracts                               (1,765,869)   (1,168,633)     (871,808)
Interest credited to account balances related to investment contracts                        1,071,917     1,026,506       937,696
Issuance - universal life-type insurance policy loans                                          (70,304)      (72,007)      (76,010)
Repayment - universal life-type insurance policy loans                                          46,148        40,351        31,860
Capital contribution from parent                                                               200,000             -             -
Cash dividend to parent                                                                        (25,000)      (20,000)      (20,000)
__________________________________________________________________________________________________________________________________
Net cash provided by financing activities                                                    2,300,560     2,627,286     2,318,071
__________________________________________________________________________________________________________________________________
Net increase (decrease) in cash and cash equivalents                                            72,718       (38,174)      108,868
Cash and cash equivalents at beginning of year                                                  73,563       111,737         2,869
__________________________________________________________________________________________________________________________________
Cash and cash equivalents at end of year                                                  $    146,281  $     73,563  $    111,737
__________________________________________________________________________________________________________________________________
See accompanying notes to consolidated financial statements.
/TABLE
<PAGE>
PAGE 18

Notes to Consolidated Financial Statements ($ Thousands)
Dec. 31, 1993, 1992, 1991

1. Summary of significant accounting policies

Nature of business
IDS Life Insurance Company (the Company) is engaged in the
insurance and annuity business.  The Company sells various forms of
fixed and variable individual life insurance, group life insurance,
individual and group disability income insurance, long-term care
insurance, and single and installment premium fixed and variable
annuities.

Basis of presentation
The Company is a wholly owned subsidiary of IDS Financial
Corporation (IDS), which is a wholly owned subsidiary of American
Express Company.  The accompanying consolidated financial
statements include the accounts of the Company and its wholly owned
subsidiaries, IDS Life Insurance Company of New York and American
Enterprise Life Insurance Company.  All material intercompany
accounts and transactions have been eliminated in consolidation. 

The accompanying consolidated financial statements have been
prepared in conformity with generally accepted accounting
principles which vary in certain respects from reporting practices
prescribed or permitted by state insurance regulatory authorities. 
Also, the consolidated financial statements are presented on a
historical cost basis without adjustment of the net assets
attributable to the 1984 acquisition of IDS by American Express
Company.

Investments
Investments in fixed maturities are carried at cost, adjusted where
appropriate for amortization of premiums and accretion of
discounts.  Mortgage loans on real estate are carried principally
at the unpaid principal balances of the related loans.  Policy
loans are carried at the aggregate of the unpaid loan balances
which do not exceed the cash surrender values of the related
policies.  Other investments include interest rate caps, real
estate and equity securities.  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 estimated realizable value by a charge to income.  Equity
securities are carried at market value and the related net
unrealized appreciation or depreciation is reported as a credit or
charge to stockholder's equity.

The Company has the ability and the intent to recover the  costs of
these investments by holding them for the forseeable future.  The
ability to hold investments to scheduled maturity dates is
dependent on, among other things, annuity contract owners
maintaining their annuity contracts in force.

The Company will implement, effective January 1, 1994, Statement of
Financial Accounting Standards No. 115, "Accounting for Certain
Investments in Debt and Equity Securities."  Under the new rules,
debt securities that the Company has both the positive intent and
ability to hold to maturity will be carried at amortized cost. 
Debt securities that the Company does not have the positive intent <PAGE>
PAGE 19
1. Summary of significant accounting policies (continued)

and ability to hold to maturity and all marketable equity
securities will be classified as available-for-sale and carried at
fair value.  Unrealized gains and losses on securites classified as
available-for-sale will be carried as a separate component of
stockholder's equity.  The effect of the new rules will be to
increase stockholder's equity by approximately $181 million, net of
taxes, as of January 1, 1994, but the new rules will have no
material impact on the Company's results of operations.

Realized investment gain or loss is determined on an identified
cost basis.
        
Interest rate cap contracts are purchased to reduce the Company's
exposure to rising interest rates which would increase the cost of
future policy benefits for interest sensitive products.  Costs
are amortized over the lives of the agreements and benefits are
recognized when realized.       

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

Statement of cash flows
The Company considers investments with a maturity at the date of
their acquisition of three months or less to be cash equivalents. 
These securities are carried principally at amortized cost which
approximates fair value.   

Supplementary information to the consolidated statement of cash
flows for the years ended Dec. 31 is summarized as follows:         
      
                                         1993       1992       1991
___________________________________________________________________
Cash paid during the year for:
Income taxes                         $188,204   $140,445   $111,809
Interest on borrowings                  2,661      1,265        108
___________________________________________________________________

Recognition of profits on annuity contracts and insurance policies
The Company issues single premium deferred annuity contracts that
provide for a service fee (surrender charge) at annually decreasing
rates upon withdrawal of the annuity accumulation value by the
contract owner.  No sales fee is deducted from the contract
considerations received on these contracts ("no load" annuities). 
Single premium deferred annuities issued prior to 1980 had a sales
fee and no surrender charge.  All of the Company's single premium
deferred annuity contracts provide for crediting the contract
owners' accumulations at specified rates of interest.  Such rates
are revised by the Company from time to time based on changes in
the market investment yield rates for fixed-income securities.

<PAGE>
PAGE 20
1. Summary of significant accounting policies (continued)

Profits on single premium deferred annuities and installment
annuities are recognized by the Company over the lives of the
contracts and represent the excess of investment income earned
from investment of contract considerations over interest credited
to contract owners and other expenses.

The retrospective deposit method is used in accounting for
universal life-type insurance.  This method recognizes profits over
the lives of the policies in proportion to the estimated gross
profits expected to be realized.

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

Deferred policy acquisition costs
The costs of acquiring new business, principally sales
compensation, policy issue costs, underwriting and certain sales
expenses, have been deferred on insurance and annuity contracts. 
The deferred acquisition costs for single premium deferred
annuities and installment annuities are amortized based upon
surrender charge revenue and a portion of the excess of investment
income earned from investment of the contract considerations over
the interest credited to contract owners.  The costs for universal
life-type insurance are amortized over the lives of the policies as
a percentage of  the estimated gross profits expected to be
realized on the policies.  For traditional life, disability income,
health and long-term care insurance policies, the costs are
amortized over an appropriate period in proportion to premium
revenue.

Liabilities for future policy benefits
Liabilities for universal life-type insurance, single premium
deferred annuities and installment annuities are accumulation
values.

Liabilities for fixed annuities in a benefit status are based on
the Progressive Annuity Table with interest at 5 percent, the 1971
Individual Annuity Table with interest at 7 percent or 8.25
percent, or the 1983a Table with various interest rates ranging
from 5.5 percent to 9.5 percent, depending on year of issue.

Liabilities for future benefits on traditional life insurance have
been computed principally by the net level premium method, based on
anticipated rates of mortality (approximating the 1965-1970 Select
and Ultimate Basic Table for policies issued after 1980 and the
1955-1960 Select and Ultimate Basic Table for policies issued prior
to 1981), policy persistency derived from Company experience data
(first year rates ranging from approximately 70 percent to 90
percent and increasing rates thereafter), and estimated future
investment yields of 4 percent for policies issued before 1974 and 
<PAGE>
PAGE 21
1. Summary of significant accounting policies (continued)

5.25 percent for policies issued from 1974 to 1980.  Cash value
plans issued in 1980 and later assume future investment rates that
grade from 9.5 percent to 5 percent over 20 years.  Term insurance
issued from 1981 to 1984 assumes an 8 percent level investment rate
and term insurance issued after 1984 assumes investment rates that
grade from 10 percent to 6 percent over 20 years. 

Liabilities for future disability income policy benefits have been
computed principally by the net level premium method, based on the
1964 Commissioners Disability Table with the 1958 Commissioners 
Standard Ordinary Mortality Table at 3 percent interest for 1980
and prior, 8 percent interest for persons disabled from 1981 to
1991 and 6 percent interest for persons disabled after 1991.

Liabilities for future benefits on long-term care insurance have
been computed principally by the net level premium method, using
morbidity rates based on the 1985 National Nursing Home Survey and
mortality rates based on the 1983a Table.  The interest rate basis
is 9.5 percent grading to 7 percent over ten years for policies
issued from 1989 to 1992, 7.75 percent grading to 7 percent over
four years for policies issued after 1992, 8 percent for claims 
incurred in 1989 to 1991 and 6 percent for claims incurred after
1991.

At Dec. 31, 1993 and 1992, the carrying amount and fair value of
fixed annuities future policy benefits, after excluding life
insurance-related contracts carried at $913,127 and $834,909, were
$17,579,008 and $15,507,510, and $16,881,747 and $14,867,066,
respectively.  The fair value is net of policy loans of $59,132 and
$51,394 at Dec. 31, 1993 and 1992, respectively.  The fair value of
these benefits is based on the status of the annuities at Dec. 31,
1993 and 1992.  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 the rate appropriate for contracts issued in 1993 and
1992. 
        
Reinsurance
The maximum amount of life insurance risk retained by the Company
on any one life is $750 of life and waiver of premium benefits plus
$50 of accidental death benefits.  The maximum amount of disability
income risk retained by the Company on any one life is $6 of
monthly benefit for benefit periods longer than three years.  The
excesses are reinsured with other life insurance companies on a
yearly renewable term basis.  Graded premium whole life policies
and long term care are primarily reinsured on a coinsurance basis.
        
In 1993 the Company adopted Statement of Financial Accounting
Standards (SFAS) No. 113, "Accounting and Reporting for Reinsurance
of Short-Duration and Long-Duration Contracts."  Under SFAS No.
113, amounts paid or deemed to have been paid for reinsurance
contracts are recorded as reinsurance receivables.  Prior to 1993,
these amounts were recorded as a reduction of the liability for
future insurance policy benefits.  The cost of reinsurance is
accounted for over the period covered by the reinsurance contract.  
<PAGE>
PAGE 22
1. Summary of significant accounting policies (continued)

Federal income taxes
The Company's taxable income is included in the consolidated
federal income tax return of American Express Company.  The Company
provides for income taxes on a separate return basis, except that,
under an agreement between IDS 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 IDS and its 
subsidiaries that IDS will reimburse a subsidiary for any tax
benefit.

Included in other liabilities at Dec. 31, 1993 and 1992 are $14,709
and $18,181, respectively, payable to IDS for federal income taxes.
        
Segregated asset account business
The segregated asset account assets and liabilities represent funds
held for the exclusive benefit of the variable annuity and variable
life insurance contract owners.  The Company receives investment
management and mortality and expense assurance fees from the
variable annuity and variable life insurance mutual funds and
segregated asset accounts.  The Company also deducts a monthly cost
of insurance charge and receives a minimum death benefit guarantee
fee and issue and administrative fee from the variable life
insurance segregated asset accounts.
        
The Company makes contractual mortality assurances to the variable
annuity contract owners that the net assets of the segregated asset
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 segregated asset accounts for such actuarial adjustments for
variable annuities that are in the benefit payment period.  The
Company guarantees, for the variable life insurance policyholders,
the cost of the contractual insurance rate and that the death
benefit will never be less than the death benefit at the date of
issuance.
        
At Dec. 31, 1993 and 1992 the fair value of liabilities related to
segregated asset accounts was $8,305,209 and $5,727,402,
respectively.  The fair value of these liabilities at Dec. 31, 1993
and 1992 is estimated as the carrying amount less variable
insurance contracts carried at $346,276 and $226,946, respectively,
and surrender charges, if applicable. 
        
Reclassification
Certain 1992 and 1991 amounts have been reclassified to conform to
the 1993 presentation.

2. Investments

Market values of investments in fixed maturities represent quoted
market prices and estimated fair values when quoted prices are not
available.  Estimated fair 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.        <PAGE>
PAGE 23

2. Investments (continued)

Net gain (loss) on investments for the years ended Dec. 31 is
summarized as follows:
<TABLE>
<CAPTION>

                                                            1993          1992           1991  
________________________________________________________________________________________________
<S>                                                      <C>            <C>            <C>          
Fixed maturities                                         $  5,460       $ 14,474       $ 22,750
Mortgage loans                                            (11,422)        (5,004)        (1,064)
Other investments                                          (6,606)        (8,265)        (5,695)
                                                                                               
                                                          (12,568)         1,205         15,991
Net (increase) decrease in allowance for losses             5,831         (4,915)       (21,828)
                                                         $ (6,737)      $ (3,710)      $ (5,837)
________________________________________________________________________________________________

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

                                                            1993          1992           1991  
________________________________________________________________________________________________
Fixed maturities                                         $323,060       $(128,683)     $861,355
Equity securities                                            (156)            300           418
________________________________________________________________________________________________
                                                         
Fair values of and gross unrealized gains
and losses on investments in fixed maturities
carried at amortized cost at Dec. 31 are as follows:
        
                                                           Gross         Gross
                                          Amortized      Unrealized    Unrealized          Fair
1993                                        Cost           Gains         Losses            Value
________________________________________________________________________________________________
U.S. Government agency obligations      $    63,532      $    3,546      $  1,377    $    65,701  
State and municipal obligations              11,072           2,380             -         13,452
Corporate bonds and obligations           9,362,074         768,747        45,706     10,085,115
Mortgage-backed securities                9,978,523         341,067        57,879     10,261,711
                                         19,415,201       1,115,740       104,962     20,425,979
Less allowance for losses                    22,777               -        22,777              -
                                        $19,392,424      $1,115,740      $ 82,185    $20,425,979
________________________________________________________________________________________________

                                                           Gross         Gross    
                                          Amortized      Unrealized    Unrealized          Fair
1992                                        Cost           Gains         Losses            Value
________________________________________________________________________________________________
U.S. Government agency obligations      $    36,753      $    3,658      $      4    $    40,407
State and municipal obligations              11,234           1,542             -         12,776
Corporate bonds and obligations           7,688,190         431,781       104,707      8,015,264
Mortgage-backed securities                9,487,601         377,539        37,213      9,827,927
                                         17,223,778         814,520       141,924     17,896,374
Less allowance for losses                    37,899               -        37,899              -
                                        $17,185,879      $  814,520      $104,025    $17,896,374
________________________________________________________________________________________________

The amortized cost and fair value of investments in fixed maturities at Dec. 31, 1993 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       
                                                              Cost                       Value   
________________________________________________________________________________________________
Due in one year or less                                  $    89,160                 $    90,928
Due from one to five years                                 1,430,756                   1,532,298
Due from five to ten years                                 5,488,955                   5,924,580
Due in more than ten years                                 2,427,807                   2,616,462
Mortgage-backed securities                                 9,978,523                  10,261,711
                                                         $19,415,201                 $20,425,979
________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE 24
2. Investments (continued)

Proceeds from sales of investments in fixed maturities during 1993
and 1992 were $482,523 and $996,619, respectively.  During 1993 and
1992, gross gains of $48,499 and $94,915, respectively, and gross
losses of $43,039 and $80,441, respectively, were realized on those
sales.
        
At Dec. 31, 1993, the amount of net unrealized appreciation on
equity securities included $160 of gross unrealized appreciation,
$nil of gross unrealized depreciation and deferred tax credits of
$46.  At Dec. 31, 1992, the amount of net unrealized appreciation
on equity securities included $328 of gross unrealized
appreciation, $12 of gross unrealized depreciation and deferred tax
credits of $102.  The fair value of equity securities was $1,900
and $2,005 at Dec. 31, 1993 and 1992, respectively.
        
Included in other investments at Dec. 31, 1993 are interest rate
caps at amortized cost of $26,923 with a fair value of $14,201. 
These interest rate caps carry a notional amount of $4,400,000 and
expire on various dates from 1994 to 1998.
        
At Dec. 31, 1993, bonds carried at $4,184 were on deposit with
various states as required by law.
        
Net investment income for the years ended Dec. 31 is summarized as
follows:
<TABLE>
<CAPTION>
        
                                                1993            1992           1991   
______________________________________________________________________________________
<S>                                          <C>             <C>            <C> 
Interest on fixed maturities                 $1,589,802      $1,449,234     $1,279,317
Interest on mortgage loans                      175,063         148,693        122,723
Other investment income                          29,345          24,281         20,005
Interest on cash equivalents                      2,137           5,363          8,729
                                              1,796,347       1,627,571      1,430,774
Less investment expenses                         13,128          10,750          7,908
______________________________________________________________________________________
                                             $1,783,219      $1,616,821     $1,422,866
______________________________________________________________________________________
</TABLE>
At Dec. 31, 1993, investments in fixed maturities comprised 89
percent of the Company's total invested assets.  These securities
are rated by Moody's and Standard & Poor's (S&P), except for
approximately $2.1 billion which is rated by IDS internal analysts
using criteria similar to Moody's and S&P.  A summary of
investments in fixed maturities by rating on Dec. 31 is as follows: 
<TABLE>
<CAPTION>
     
                                              Dec. 31,        Dec. 31, 
Rating                                           1993            1992   
________________________________________________________________________
<S>                                          <C>             <C>
Aaa/AAA                                      $ 9,959,884     $ 9,480,345
Aa/AA                                            258,659         219,370
Aa/A                                             160,638         109,806
A/A                                            2,021,177       1,735,750
A/BBB                                            654,949         447,592
Baa/BBB                                        3,936,366       3,352,192
Baa/BB                                           717,606         392,361
Below investment grade                         1,705,922       1,486,362
________________________________________________________________________
                                             $19,415,201     $17,223,778
________________________________________________________________________
</TABLE>
<PAGE>
PAGE 25
2. Investments (continued)

At Dec. 31, 1993, 99 percent of the securities rated Aaa/AAA are
GNMA, FNMA and FHLMC mortgage-backed securities.  No holdings of
any other issuer are greater than 1 percent of the Company's  total
investments in fixed maturities.

At Dec. 31, 1993, approximately 9.4 percent of the Company's
invested assets were mortgage loans on real estate.  Summaries of
mortgage loans by region of the United States and by type of real
estate at Dec. 31, 1993 and 1992 are as follows:
<TABLE><CAPTION>

                                   Dec. 31, 1993                   Dec. 31, 1992
                              On Balance    Commitments       On Balance   Commitments
Region                           Sheet      to Purchase          Sheet     to Purchase
______________________________________________________________________________________
<S>                          <C>            <C>              <C>            <C>
East North Central           $  552,150     $ 20,933         $  484,808     $ 21,728
West North Central              361,704       16,746            357,388       14,327
South Atlantic                  452,679       52,440            320,593       32,022
Middle Atlantic                 260,239       41,090            188,294       56,816
New England                     155,214       17,620            114,170       24,677
Pacific                         120,378       15,492             89,636        5,148
West South Central               43,948          525             46,296          716
East South Central               73,748            -             83,994       10,085
Mountain                         70,410       14,594             26,906        8,882
______________________________________________________________________________________
                              2,090,470      179,440          1,712,085      174,401
Less allowance for losses        35,020            -             23,595            -
______________________________________________________________________________________
                             $2,055,450     $179,440         $1,688,490     $174,401
______________________________________________________________________________________
        
                                   Dec. 31, 1993                   Dec. 31, 1992
                              On Balance    Commitments       On Balance   Commitments
Property type                    Sheet      to Purchase          Sheet     to Purchase
______________________________________________________________________________________
Apartments                   $  744,788     $ 79,153         $  541,855     $ 70,198
Department/retail stores        624,651       65,402            504,331       74,671
Office buildings                234,042       15,583            327,216       12,950
Industrial buildings            217,648        9,279            203,361       15,150
Nursing/retirement homes         83,768          917             56,431          716
Hotels/motels                    33,138            -             34,631          716
Medical buildings                30,429        5,954             23,006            -
Residential                          78            -              6,618            -
Other                           121,928        3,152             14,636            -
______________________________________________________________________________________
                              2,090,470      179,440          1,712,085      174,401
Less allowance for losses        35,020            -             23,595            -
______________________________________________________________________________________
                             $2,055,450     $179,440         $1,688,490     $174,401
______________________________________________________________________________________
</TABLE>
Mortgage loan fundings are restricted by state insurance regulatory
authorities to 80 percent or less of the market value of the real
estate at the time of origination of the loan.  The Company holds
the mortgage document, which gives the right to take possession of
the property if the borrower fails to perform according to the
terms of the agreement.  The fair value of the mortgage loans is
determined by a discounted cash flow analysis using mortgage
interest rates currently offered for mortgages of similar
maturities.  Commitments to purchase mortgages are made in the
ordinary course of business.  The fair value of the mortgage
commitments is $nil.
        
<PAGE>
PAGE 26

3. Income taxes

The Company qualifies as a life insurance company for federal
income tax purposes.  As such, the Company is subject to the
Internal Revenue Code provisions applicable to life insurance
companies.

Income tax expense consists of the following:
<TABLE>
<CAPTION>

                                               1993           1992         1991
_______________________________________________________________________________
<S>                                          <C>            <C>        <C>      
Federal income taxes:
Current                                      $180,558       $130,998   $104,292
Deferred                                      (44,237)       (30,385)   (29,207)
_______________________________________________________________________________
                                              136,321        100,613     75,085
State income taxes-Current                      6,326          4,038      2,345
_______________________________________________________________________________
Income tax expense                           $142,647       $104,651   $ 77,430
_______________________________________________________________________________
</TABLE>
Increases (decreases) to the federal tax provision applicable to
pretax income based on the statutory rate are attributable to:
<TABLE><CAPTION>
        
                                                      1993                 1992                 1991
_________________________________________________________________________________________________________
                                              Provision    Rate    Provision    Rate    Provision    Rate
_________________________________________________________________________________________________________
<S>                                           <C>          <C>     <C>          <C>     <C>          <C>
Federal income taxes based on
the statutory rate                            $144,454     35.0%   $107,379     34.0%   $88,219      34.0%
Increases (decreases) are attributable to:
Tax-excluded interest and dividend income      (11,002)    (2.7)     (8,209)    (2.6)    (9,496)     (3.7)
Other, net                                       2,869      0.7       1,443      0.4     (3,638)     (1.4)
_________________________________________________________________________________________________________
Federal income taxes                          $136,321     33.0%   $100,613     31.8%   $75,085      28.9%
_________________________________________________________________________________________________________
</TABLE>
A portion of life insurance company income earned prior to 1984 was
not subject to current taxation but was accumulated, for tax
purposes, in a "policyholders' surplus account."  At Dec. 31, 1993,
the Company had a policyholders' surplus account balance of
$19,032.  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
$6,661 have not been established because no distributions of such
amounts are contemplated.

Significant components of the Company's deferred tax assets and
liabilities as of Dec. 31 are as follows:
<TABLE><CAPTION>
 
Deferred tax assets:                                             1993           1992
______________________________________________________________________________________
<S>                                                            <C>            <C> 
Policy reserves                                                $453,436       $356,712
Life insurance guarantee fund assessment reserve                 35,000         21,794
______________________________________________________________________________________
Total deferred tax assets                                       488,436        378,506
______________________________________________________________________________________
        
Deferred tax liabilities:
______________________________________________________________________________________
Deferred policy acquisition costs                               509,868        446,579
Investments                                                      10,105          2,435
Other                                                            12,083         17,405
______________________________________________________________________________________
Total deferred tax liabilities                                  532,056        466,419
______________________________________________________________________________________
Net deferred tax liabilities                                   $ 43,620       $ 87,913
______________________________________________________________________________________
/TABLE
<PAGE>
PAGE 27
4. Stockholder's equity

Retained earnings available for distribution as dividends to parent
are limited to the Company's surplus as determined in accordance
with accounting practices prescribed by state insurance regulatory
authorities.  Statutory unassigned surplus aggregated $922,246 as
of Dec. 31, 1993 and $685,103 as of Dec. 31, 1992 (see Note 3 with
respect to the income tax effect of certain distributions).  In
addition, any dividend distributions in 1994 in excess of
approximately $259,063 would require approval of the Department of
Commerce of the State of Minnesota.

Statutory net income for 1993, 1992 and 1991 and stockholder's
equity as of Dec. 31, 1993, 1992 and 1991 are summarized as
follows:
<TABLE><CAPTION>
        
                                                  1993         1992          1991
___________________________________________________________________________________
<S>                                           <C>            <C>           <C>   
Statutory net income                          $  275,015     $180,296      $200,704
Statutory stockholder's equity                 1,157,022      714,942       551,939
___________________________________________________________________________________
</TABLE>
Dividends paid to IDS were $25,000 in 1993, $20,000 in 1992 and
$20,000 in 1991.

5. Related party transactions

The Company has loaned funds or agreed to loan funds to IDS under
two separate loan agreements.  The balance of the first loan was
$75,000 and $nil at Dec. 31, 1993 and 1992, respectively.  This
loan can be increased to a maximum of $100,000 and pays interest at
a rate equal to the preceding month's effective new money rate for
the Company's permanent investments.  It is collateralized by
equities valued at $96,790 at Dec. 31, 1993.  The second loan was
used to fund the construction of the IDS Operations Center.  This
loan had an outstanding balance of $84,588 and $85,278 at Dec. 31,
1993 and 1992, respectively.  The loan is secured by a first lien
on the IDS Operations Center property and has an interest rate of
9.89 percent.  The Company also has a loan to an affiliate which
was used to fund construction of the IDS Learning Center.  At Dec.
31, 1993 and 1992, the balance outstanding was $22,573 and $22,755,
respectively.  The loan is secured by a first lien on the IDS
Learning Center property and has an interest rate of 9.82 percent.
        
Interest income on the above loans totaled $11,116, $10,711 and
$14,783 in 1993, 1992 and 1991, respectively.
        
The Company purchased a five year secured note from an affiliated
company which had an outstanding balance of $27,222 and $31,111 at
Dec. 31, 1993 and 1992, respectively.  The note bears a market
interest rate, revised semi-annually, which at Dec. 31, 1993 was
8.42 percent.

The Company has a reinsurance agreement whereby it assumed 100
percent of a block of single premium life insurance business from
an affiliated company.  The accompanying consolidated balance sheet
at Dec. 31, 1993 and 1992 includes $759,714 and $746,060,
respectively, of future policy benefits related to this agreement. 
<PAGE>
PAGE 28
5. Related party transactions (continued)

The accompanying consolidated statement of income includes revenue
from policyholder charges of $21, $109 and $243, and expenses of
$4,931, $5,897 and $6,445 related to this agreement for 1993, 1992
and 1991, respectively. 

The Company has a reinsurance agreement to cede 50 percent of its
long-term care insurance business to an affiliated company. The
accompanying consolidated balance sheet at Dec. 31, 1993 includes
$44,086 of reinsurance receivables related to this agreement. 
Liabilities for future policy benefits were reduced by $27,028 at
Dec. 31, 1992 for the effect of this agreement.  Premiums ceded
amounted to $16,230, $12,499 and $6,365 and reinsurance recovered
from reinsurers amounted to $404, $250 and $187 for the years ended
Dec. 31, 1993, 1992 and 1991, respectively.
        
The Company participates in the retirement plan of IDS which covers
all permanent employees age 21 and over who have met certain
employment requirements.  The benefits are based on the number of
years the employee participates in the plan, their final average
monthly salary, the level of social security benefits the employee
is eligible for and the level of vesting the employee has earned in
the plan.  IDS' policy is to fund retirement plan costs accrued
subject to ERISA and federal income tax considerations.  The
Company's share of the total net periodic pension cost was $nil in
1993, 1992 and 1991.

The Company also participates in defined contribution pension plans
of IDS 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 1993,
1992 and 1991 were $2,008, $1,826 and $1,682, respectively.
        
The Company participates in defined benefit health care plans of
IDS that provide health care and life insurance benefits to retired
employees and retired financial planners.  The plans include
participant contributions and service-related eligibility
requirements.  Upon retirement, such employees are considered to
have been employees of IDS.  IDS 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.
        
Charges by IDS for use of joint facilities and other services
aggregated $243,346, $204,675 and $174,500 for 1993, 1992 and 1991,
respectively.  Certain of these costs are included in deferred
policy acquisition costs.  In addition, the Company rents its home
office space from IDS on an annual renewable basis.  Such rentals
aggregated $4,513, $4,074 and $3,469 for 1993, 1992 and 1991,
respectively.

Certain commission and marketing services expenses are allocated to
the Company by its affiliates.  The expenses for 1993, 1992 and
1991 were $127,000, $110,064 and $95,367, respectively.  Certain of
the costs assessed to the Company are included in deferred policy
acquisition costs.
<PAGE>
PAGE 29
6. Commitments and contingencies

At Dec. 31, 1993 and 1992, traditional life insurance and universal
life-type insurance in force aggregated $46,125,515 and
$40,904,345, respectively, of which  $3,038,426 and $2,937,590 were
reinsured at the respective year ends.  The Company also reinsures
a portion of the risks assumed under disability income policies.
Under the agreements, premiums ceded to reinsurers amounted to
$28,276, $24,222 and $16,908 and reinsurance recovered from
reinsurers amounted to $3,345, $6,766 and $6,447 for the years
ended Dec. 31, 1993, 1992 and 1991.
        
Reinsurance contracts do not relieve the Company from its primary
obligation to policyholders.
        
The Company is a defendant in various lawsuits, none of which, in
the opinion of the Company counsel, will result in a material
liability.

The Company received the revenue agent's report for the tax years
1984 through 1986 in February 1992, and has settled on all agreed
audit issues.  The Company will protest the remaining open issues
and, while the outcome of the appeal is not known at this time,
management does not believe there will be any material impact as a
result of this audit. 

7. Lines of credit

The Company has available lines of credit with two banks
aggregating $75,000 at 45 to 80 basis points over the banks' cost
of funds or equal to the prime rate, depending on which line of
credit agreement is used.  Borrowings outstanding under these
agreements were $1,519 and $nil at Dec. 31, 1993 and 1992,
respectively.

8. Segment information

The Company's operations consist of two business segments; first,
individual and group life insurance, disability income, health and
long-term care insurance, and second, annuity products designed for
individuals, pension plans, small businesses and employer-sponsored
groups.  The consolidated statement of income for the years ended
Dec. 31, 1993, 1992 and 1991 and total assets at Dec. 31, 1993,
1992 and 1991 by segment are summarized as follows:
<PAGE>
PAGE 30
8. Segment information (continued)
<TABLE>
<CAPTION>

                                                                      1993            1992          1991
___________________________________________________________________________________________________________
<S>                                                              <C>             <C>           <C>   
Net investment income:
Life, disability income, health and long-term care insurance     $   250,224     $   246,676   $    233,828
Annuities                                                          1,532,995       1,370,145      1,189,038
___________________________________________________________________________________________________________
                                                                 $ 1,783,219     $ 1,616,821   $  1,422,866
___________________________________________________________________________________________________________
Premiums and other considerations:                                      
Life, disability income and long-term care insurance             $   281,284     $   250,386   $    220,754
Annuities                                                            143,876         104,952         79,928
___________________________________________________________________________________________________________
                                                                 $   425,160     $   355,338   $    300,682
___________________________________________________________________________________________________________
Income before income taxes:
Life, disability income, health and long-term care insurance     $   104,127     $    96,215    $    90,050 
Annuities                                                            315,336         223,316        175,254 
Net loss on investments                                               (6,737)         (3,710)        (5,837)
___________________________________________________________________________________________________________
                                                                 $   412,726     $   315,821    $   259,467
___________________________________________________________________________________________________________
Total assets:
Life, disability income, health and long-term care insurance     $ 4,810,145     $ 4,093,778    $ 3,670,197
Annuities                                                         28,247,608      23,201,995     18,888,612
___________________________________________________________________________________________________________
                                                                 $33,057,753     $27,295,773    $22,558,809
___________________________________________________________________________________________________________
</TABLE>
Allocations of net investment income and certain general expenses
are based on various assumptions and estimates.
        
Assets are not individually identifiable by segment and have been
allocated principally based on the amount of future policy benefits
by segment.

Capital expenditures and depreciation expense are not material, and
consequently, are not reported.

<PAGE>
PAGE 31

Annual Financial Information


Report of Independent Auditors

The Board of Directors
IDS Life Insurance Company
         
We have audited the accompanying consolidated balance sheets of IDS
Life Insurance Company (a wholly owned subsidiary of IDS Financial
Corporation) as of December 31, 1993 and 1992, and the related
consolidated statement of income and cash flows for each of the
three years in the period ended December 31, 1993.  These financial
statements are the responsibility of the Company's management.  Our
responsibility is to express an opinion on these financial
statements based on our audits.

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

In our opinion, the financial statements referred to above present
fairly, in all material respects, the consolidated financial
position of IDS Life Insurance Company at December 31, 1993 and
1992, and the consolidated results of its operations and its cash
flows for each of the three years in the period ended December 31,
1993, in conformity with generally accepted accounting principles. 



Ernst & Young
Minneapolis, Minnesota
February 3, 1994



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