<PAGE>
PAGE 1
For use in New York only
(icon of) four squares with a circle in the middle.
Smith Barney LifeVest(sm)
Smith
Barney
<PAGE>
PAGE 2
Annual Financial Information
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company of New York
We have audited the accompanying individual and combined statements
of net assets of the segregated asset subaccounts of IDS Life of
New York Account 7 for Single Premium Variable Life Insurance as of
December 31, 1994, 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 of New York. Our
responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require 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, 1994. 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
of New York Account 7 for Single Premium Variable Life Insurance at
December 31, 1994 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 LLP
Minneapolis, Minnesota
March 17, 1995
<PAGE>
PAGE 3
<TABLE>
<CAPTION>
IDS Life of New York Account 7
Statements of Net Assets Dec. 31, 1994
Combined
Segregated Asset Subaccounts Variable
Assets NAP NMM NHI NTR NGO N95 N04 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 -- 33,539 shares
at net asset value of $19.06
per share (cost $394,952).. $639,343 $ -- $ -- $ -- $ -- $ -- $ -- $ 639,343
IDS Life Series Fund Money
Market Portfolio -- 270,069
shares at net asset value
of $1.00 per share
(cost $270,061)............ -- 270,047 -- -- -- -- -- 270,047
IDS Life Series Fund
Income Portfolio -- 36,316
shares at net asset
value of $9.28 per share
(cost $361,300)............ -- -- 337,077 -- -- -- -- 337,077
IDS Life Series Fund
Managed Portfolio --
10,604 shares at net asset
value of $14.21 per share
(cost $142,554)............ -- -- -- 150,679 -- -- -- 150,679
IDS Life Series Fund
Government Securities
Portfolio -- 2,997 shares
at net asset value of
$9.53 per share
(cost $28,682)............. -- -- -- -- 28,554 -- -- 28,554
Smith Barney Inc. Stripped
("Zero Coupon") U.S. Treasury
Securities Fund, Series A
1995 Trust -- 40,797 units at
net asset value of $0.94 per unit
(cost $22,694).............. -- -- -- -- -- 38,498 -- 38,498
Smith Barney Inc. Stripped
("Zero Coupon") U.S. Treasury
Securities Fund, Series A
2004 Trust -- 69,904 units at
net asset value of $0.47 per unit
(cost $20,883).............. -- -- -- -- -- -- 32,764 32,764
639,343 270,047 337,077 150,679 28,554 38,498 32,764 1,496,962
Dividends receivable........ -- 1,124 2,216 26 152 -- -- 3,518
Total assets................ 639,343 271,171 339,293 150,705 28,706 38,498 32,764 1,500,480
<PAGE>
PAGE 4
Liabilities
Payable to IDS Life of New York for:
Mortality and expense risk
charge...................... 2,571 511 640 624 54 21 15 4,436
Minimum death benefit
guarantee risk charge....... -- -- -- -- -- 13 11 24
Issue and administrative
expense charge.............. -- -- -- -- -- 13 11 24
Distribution expense charge.. -- -- -- -- -- 10 8 18
Mortality charge............ -- -- -- -- -- 16 13 29
State premium tax charge.... -- -- -- -- -- 3 3 6
Transaction charge.......... -- -- -- -- -- 8 7 15
Payable to mutual fund
portfolios for investments
purchased................... -- 612 1,578 -- 99 -- -- 2,289
Total liabilities........... 2,571 1,123 2,218 624 153 84 68 6,841
Net assets applicable to
Variable Life contracts
in accumulation period...... $636,772 $270,048 $337,075 $150,081 $28,553 $38,414 $32,696 $1,493,639
Accumulation units
outstanding................. 267,688 216,641 293,305 78,087 19,887 24,516 17,938
Net asset value per
accumulation unit........... $ 2.38 $ 1.25 $ 1.15 $ 1.92 $ 1.44 $ 1.57 $ 1.82
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 5
<TABLE>
<CAPTION>
IDS Life of New York Account 7
Statements of Operations For the year ended Dec. 31, 1994
Combined
Segregated Asset Subaccounts Variable
NAP NMM NHI NTR NGO N95 N04 Account
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss):
Dividend income from mutual
fund portfolios............ $ 77,985 $9,414 $ 23,096 $21,475 $ 1,970 $ -- $ -- $133,940
Expenses:
Mortality and expense risk
charge (Note 4)............ 4,275 1,560 1,944 1,107 175 250 352 9,663
Minimum death benefit
guarantee risk charge
(Note 5)................... 2,850 1,040 1,296 738 117 163 234 6,438
Issue and administrative
expense charge (Note 6).... 2,850 1,040 1,296 738 117 170 235 6,446
Distribution expense
charge (Note 8)............ 2,129 777 968 551 87 125 176 4,813
Mortality charge (Note 3).. 3,554 1,297 1,641 920 146 209 293 8,060
State premium tax charge
(Note 7)................... 721 263 302 187 30 42 58 1,603
Transaction charge
(Note 9)................... -- -- -- -- -- 104 146 250
Total expenses............. 16,379 5,977 7,447 4,241 672 1,063 1,494 37,273
Investment income (loss)
-- net..................... 61,606 3,437 15,649 17,234 1,298 (1,063) (1,494) 96,667
Realized and Unrealized Gain (Loss) on Investments -- Net
Net realized gain on sales
of investments in mutual fund
portfolios and in the trusts:
Proceeds from sales........ 143,379 -- 129,125 96,801 223 15,692 32,169 417,389
Cost of investments sold... 93,014 -- 129,765 84,062 216 9,558 21,194 337,809
Net realized gain on
investments................ 50,365 -- (640) 12,739 7 6,134 10,975 79,580
Net change in unrealized
appreciation or depreciation
of investments............. (115,937) (14) (35,670) (31,699) (3,475) (5,526) (18,314) (210,635)
Net gain (loss) on
investments................ (65,572) (14) (36,310) (18,960) (3,468) 608 (7,339) (131,055)
Net increase (decrease) in net
assets resulting
from operations............ $ (3,966) $3,423 $(20,661) $(1,726) $(2,170) $ (455) $(8,833) $(34,388)
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 6
<TABLE>
<CAPTION>
IDS Life of New York Account 7
Statements of Operations For the year ended Dec. 31, 1993
Combined
Segregated Asset Subaccounts Variable
NAP NMM NHI NTR NGO N95 N04 Account
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss):
Dividend income from mutual
fund portfolios............ $21,785 $5,320 $29,084 $25,269 $ 2,329 $ -- $ -- $ 83,787
Expenses:
Mortality and expense risk
charge (Note 4)............ 4,221 1,213 2,486 1,458 211 413 427 10,429
Minimum death benefit
guarantee risk charge
(Note 5)................... 2,814 809 1,642 972 141 275 285 6,938
Issue and administrative
expense charge (Note 6).... 2,814 809 1,642 972 141 275 285 6,938
Distribution expense
charge (Note 8)............ 2,103 604 1,227 726 105 206 213 5,184
Mortality charge (Note 3).. 3,510 1,008 2,047 1,212 176 344 355 8,652
State premium tax charge
(Note 7)................... 712 204 415 246 36 69 72 1,754
Transaction charge
(Note 9)................... -- -- -- -- -- 172 178 350
Total expenses............. 16,174 4,647 9,459 5,586 810 1,754 1,815 40,245
Investment income (loss)
-- net..................... 5,611 673 19,625 19,683 1,519 (1,754) (1,815) 43,542
Realized and Unrealized Gain (Loss) on Investments -- Net
Net realized gain on sales
of investments in mutual fund
portfolios and in the trusts:
Proceeds from sales........ 15,306 -- 53,928 28,628 11,777 38,926 -- 148,565
Cost of investments sold... 8,510 -- 53,107 26,530 10,551 24,604 -- 123,302
Net realized gain on
investments................ 6,796 -- 821 2,098 1,226 14,322 -- 25,263
Net change in unrealized
appreciation or depreciation
of investments............. 63,916 (1) 26,642 15,594 683 (9,047) 13,439 111,226
Net gain (loss) on
investments................ 70,712 (1) 27,463 17,692 1,909 5,275 13,439 136,489
Net increase in net assets
resulting from operations.. $76,323 $ 672 $47,088 $37,375 $ 3,428 $ 3,521 $11,624 $180,031
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 7
<TABLE>
<CAPTION>
IDS Life of New York Account 7
Statements of Operations For the year ended Dec. 31, 1992
Combined
Segregated Asset Subaccounts Variable
NAP NMM NHI NTR NGO N95 N04 Account
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend income from
mutual fund portfolios..... $28,486 $ 9,278 $29,436 $23,968 $ 4,083 $ -- $ -- $ 95,251
Expenses:
Mortality and expense
risk charge (Note 4)....... 3,594 1,666 2,250 1,183 356 567 350 9,966
Minimum death benefit
guarantee risk charge
(Note 5)................... 2,396 1,111 1,500 789 238 378 234 6,646
Issue and administrative
expense charge (Note 6).... 2,396 1,111 1,500 789 238 378 234 6,646
Distribution expense charge
(Note 8)................... 1,790 830 1,120 589 177 284 175 4,965
Mortality charge (Note 3).. 2,988 1,385 1,870 984 296 473 292 8,288
State premium tax charge
(Note 7)................... 606 281 379 199 60 95 58 1,678
Transaction charge
(Note 9)................... -- -- -- -- -- 236 146 382
Total expenses............. 13,770 6,384 8,619 4,533 1,365 2,411 1,489 38,571
Investment income (loss)
-- net..................... 14,716 2,894 20,817 19,435 2,718 (2,411) (1,489) 56,680
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........ 10,583 148,722 68,379 3,489 48,955 14,524 -- 294,652
Cost of investments sold... 6,527 148,726 72,203 3,386 47,099 10,006 -- 287,947
Net realized gain (loss)
on investments............. 4,056 (4) (3,824) 103 1,856 4,518 -- 6,705
Net change in unrealized
appreciation or depreciation
of investments............. 2,015 3 7,742 (1,425) (3,614) 2,374 5,392 12,487
Net gain (loss) on
investments................ 6,071 (1) 3,918 (1,322) (1,758) 6,892 5,392 19,192
Net increase in net assets
resulting from operations.. $20,787 $ 2,893 $24,735 $18,113 $ 960 $ 4,481 $ 3,903 $ 75,872
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 8
<TABLE>
<CAPTION>
IDS Life of New York Account 7
Statements of Changes in Net Assets For the year ended Dec. 31, 1994
Combined
Segregated Asset Subaccounts Variable
Operations NAP NMM NHI NTR NGO N95 N04 Account
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss)
-- net.................... $ 61,606 $ 3,437 $ 15,649 $ 17,234 $ 1,298 $(1,063) $(1,494) $ 96,667
Net realized gain on
investments............... 50,365 -- (640) 12,739 7 6,134 10,975 79,580
Net change in unrealized
appreciation or depreciation
of investments............ (115,937) (14) (35,670) (31,699) (3,475) (5,526) (18,314) (210,635)
Net increase in net assets
resulting from operations.. (3,966) 3,423 (20,661) (1,726) (2,170) (455) (8,833) (34,388)
Contract Transactions
Net transfers*............. (34,339) 63,374 66,508 (63,374) -- -- (32,169) --
Transfers for policy loans.. (18,576) -- (6,218) (18,221) (223) -- -- (43,238)
Contract terminations:
Surrender benefits
(Note 10)................... (76,184) -- (56,090) (15,205) -- (15,692) -- (163,171)
Death benefits.............. -- -- (47,842) -- -- -- -- (47,842)
Increase (decrease) from
contract transactions....... (129,009) 63,374 (43,642) (96,800) (223) (15,692) (32,169) (254,251)
Net assets at beginning
of year..................... 769,837 203,251 401,378 248,607 30,946 54,561 73,698 1,782,278
Net assets at end of year... $636,772 $270,048 $337,075 $150,081 $28,553 $ 38,414 $32,696 $1,493,639
Accumulation Unit Activity
Units outstanding at
beginning of year........... 325,066 165,172 326,343 127,239 20,040 34,520 35,764
Net transfers*.............. (15,001) 51,469 57,439 (31,384) -- -- (17,826)
Transfers for policy loans.. (8,912) -- (5,001) (9,765) (153) -- --
Contract terminations:
Surrender benefits.......... (33,465) -- (45,199) (8,003) -- (10,004) --
Death benefits.............. -- -- (40,277) -- -- -- --
Units outstanding at end
of year..................... 267,688 216,641 293,305 78,087 19,887 24,516 17,938
* Includes transfer activity from (to) other subaccounts.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 9
<TABLE>
<CAPTION>
IDS Life of New York Account 7
Statements of Changes in Net Assets For the year ended Dec. 31, 1993
Combined
Segregated Asset Subaccounts Variable
Operations NAP NMM NHI NTR NGO N95 N04 Account
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss)
-- net.................... $ 5,611 $ 673 $ 19,625 $ 19,683 $ 1,519 $ (1,754) $(1,815) $ 43,542
Net realized gain on
investments............... 6,796 -- 821 2,098 1,226 14,322 -- 25,263
Net change in unrealized
appreciation or depreciation
of investments............ 63,916 (1) 26,642 15,594 683 (9,047) 13,439 111,226
Net increase in net assets
resulting from operations.. 76,323 672 47,088 37,375 3,428 3,521 11,624 180,031
Contract Transactions
Net transfers*............. 31,722 -- (1,011) -- -- (30,709) -- 2
Transfers for policy loans.. (8,499) -- (37,414) (19,230) (11,776) (8,217) -- (85,136)
Contract terminations:
Surrender benefits
(Note 10)................... (6,807) -- -- (9,398) -- -- -- (16,205)
Increase (decrease) from
contract transactions....... 16,416 -- (38,425) (28,628) (11,776) (38,926) -- (101,339)
Net assets at beginning
of year..................... 677,098 202,579 392,715 239,860 39,294 89,966 62,074 1,703,586
Net assets at end of year... $769,837 $203,251 $401,378 $248,607 $30,946 $ 54,561 $73,698 $1,782,278
Accumulation Unit Activity
Units outstanding at
beginning of year........... 316,807 165,172 358,491 143,816 27,897 59,372 35,764
Net transfers*.............. 15,001 -- -- -- -- (19,597) --
Transfers for policy loans.. (3,852) -- (32,148) (11,211) (7,857) (5,255) --
Contract terminations:
Surrender benefits.......... (2,890) -- -- (5,366) -- -- -
Units outstanding at end
of year..................... 325,066 165,172 326,343 127,239 20,040 34,520 35,764
* Includes transfer activity from (to) other subaccounts.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 10
<TABLE>
<CAPTION>
IDS Life of New York Account 7
Statements of Changes in Net Assets For the year ended Dec. 31, 1992
Combined
Segregated Asset Subaccounts Variable
Operations NAP NMM NHI NTR NGO N95 N04 Account
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss)
-- net..................... $ 14,716 $ 2,894 $ 20,817 $ 19,435 $ 2,718 $ (2,411) $(1,489)$ 56,680
Net realized gain (loss)
on investments............. 4,056 (4) (3,824) 103 1,856 4,518 -- 6,705
Net change in unrealized
appreciation or depreciation
of investments............. 2,015 3 7,742 (1,425) (3,614) 2,374 5,392 12,487
Net increase in net assets
resulting from operations.. 20,787 2,893 24,735 18,113 960 4,481 3,903 75,872
Contract Transactions _
Net transfers*............. 18,898 (70,564) 57,567 56,568 (47,945) (14,524) -- --
Transfers for policy loans.. (653) (30,213) (29,286) (3,489) (1,011) -- -- (64,652)
Contract terminations:
Surrender benefits
(Note 10).................. -- -- (25,924) -- -- -- -- (25,924)
Increase (decrease) from
contract transactions...... 18,245 (100,777) 2,357 53,079 (48,956) (14,524) -- (90,576)
Net assets at beginning
of year.................... 638,066 300,463 365,623 168,668 87,290 100,009 58,171 1,718,290
Net assets at end of year.. $677,098 $202,579 $392,715 $239,860 $39,294 $ 89,966 $62,074 $1,703,586
Accumulation Unit Activity
Units outstanding at
beginning of year.......... 306,892 247,445 357,542 109,052 64,607 69,153 35,764
Net transfers*............. 10,291 (57,646) 53,173 37,026 (36,000) (9,781) --
Transfers for policy loans.. (376) (24,627) (27,147) (2,262) (710) -- --
Contract terminations:
Surrender benefits......... -- -- (25,077) -- -- -- -
Units outstanding at end
of year.................... 316,807 165,172 358,491 143,816 27,897 59,372 35,764
* Includes transfer activity from (to) other subaccounts.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 11
IDS Life of New York Account 7
Notes to Financial Statements
1. Organization
IDS Life of New York Account 7 (the Variable Account) was
established on Sept. 12, 1985 as a segregated asset account of IDS
Life Insurance Company of New York (IDS Life of New York) under New
York law and is registered as a single unit investment trust under
the Investment Company Act of 1940. Operations of the Variable
Account commenced on April 15, 1987.
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 of New York. The assets of the
Variable Account shall be available, however, to cover the
liabilities of IDS Life of New York to the extent the assets of the
Variable Account exceed its liabilities arising under the policies
supported by it. Currently, five of the subaccounts invest in
shares of the corresponding portfolios of the IDS Life Series Fund,
Inc. (the mutual fund). The other two subaccounts invest in units
of the Smith Barney Inc., formerly 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 Inc. Stripped ("Zero
Coupon") U.S. Treasury Securities Fund. Organizational expenses
for the Variable Account were paid by IDS Life of New York.
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 NAP are invested in the shares of the
Equity Portfolio; Subaccount NMM invests in the shares of the Money
Market Portfolio; Subaccount NHI invests in the shares of the
Income Portfolio; Subaccount NTR invests in the shares of the
Managed Portfolio; and Subaccount NGO 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 (N95) and 2004 (N04) invest in units of
the Trusts, with maturity dates of 1995 and 2004, respectively.
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 NAP were invested in the shares of the
<PAGE>
PAGE 12
Appreciation Portfolio; Subaccount NMM invested in the shares of
the Money Market Portfolio; Subaccount NHI invested in the shares
of the High Income Bond Portfolio; Subaccount NTR invested in the
shares of the Total Return Portfolio; and Subaccount NGO invested
in the shares of the Government Securities Portfolio.
IDS Life Insurance Company, parent company of IDS Life of New York,
serves as manager and investment adviser for the Variable Account
and the underlying series mutual fund. Smith Barney 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
cost 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 of New
York, 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 of New York is taxed as a life insurance company. The
Variable Account is treated as part of IDS Life of New York for
federal income tax purposes.
Under existing federal income tax law, IDS Life of New York is not
subject to income taxes with respect to any investment income of
the Variable Account.
<PAGE>
PAGE 13
3. Mortality Charge
IDS Life of New York 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 of New York to
pay this additional amount. Although IDS Life of New York does not
expect to charge more than the rate mentioned above, its charge for
providing life insurance protection could be greater.
4. Mortality and Expense Risk Charge
IDS Life of New York makes contractual assurances to the Variable
Account that possible future adverse changes in administrative
expenses 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 of New York 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 of New York 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 of New York 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 of New York 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 not necessarily a 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 state of New York and to
compensate IDS Life of New York for the average premium tax expense
it incurs when issuing the policy, IDS Life of New York deducts a
<PAGE>
PAGE 14
charge equivalent, on an annual basis, to 0.1 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 of New York 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 of New York 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 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 of New York makes a daily charge against the assets of
each subaccount investing in the Trusts. This charge is intended
to reimburse IDS Life of New York for the transaction charge paid
directly by IDS Life of New York to Smith Barney Inc. on the sale
of the Trust units to the Variable Account. IDS Life of New York
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 account
value. The charge will be cost-based (taking into account a loss
of interest) with no anticipated element of profit for IDS Life of
New York. This charge also varies directly with the size of the
account value.
10. Surrender Charge
IDS Life of New York 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 of New York
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 of New York for surrenders are not
available on an individual segregated asset account basis. Charges
for all segregated asset accounts amounted to $269,275 in 1994,
$151,536 in 1993 and $136,471 in 1992. Such charges are not an
expense of the subaccounts or Variable Account. They are deducted
from contract surrender benefits paid by IDS Life of New York.
<PAGE>
PAGE 15
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 1994 1993 1992
<S> <C> <C> <C> <C>
NAP Equity Portfolio.................. $ 75,389 $ 37,762 $ 43,661
NMM Money Market Portfolio............ 66,810 673 50,839
NHI Income Portfolio.................. 101,134 35,128 91,553
NTR Managed Portfolio................. 16,846 19,735 76,239
NGO Government Securities Portfolio... 1,299 1,520 2,717
N95 1995 Trust........................ (1,099) (1,828) (2,441)
N04 2004 Trust........................ (1,586) (1,789) (1,484)
$258,793 $ 91,201 $261,084
</TABLE>
<PAGE>
PAGE 16
<TABLE>
<CAPTION>
Condensed Financial Information (unaudited) Period from
April 15 to
Year Ended Dec. 31, Dec. 31,
1994 1993 1992 1991 1990 1989 1988 1987*
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Subaccount NAP (invests in Equity Portfolio)
Accumulation unit value at beginning of
period.................................... $2.37 $2.14 $2.08 $1.28 $1.31 $1.02 $0.94 $1.00
Accumulation unit value at end of period.. $2.38 $2.37 $2.14 $2.08 $1.28 $1.31 $1.02 $0.94
Number of accumulation units outstanding
at end of period (000 omitted)............ 268 325 317 307 362 395 386 409
Subaccount NMM (invests in Money Market Portfolio)
Accumulation unit value at beginning of
period.................................... $1.23 $1.23 $1.21 $1.18 $1.12 $1.06 $1.02 $1.00
Accumulation unit value at end of period.. $1.25 $1.23 $1.23 $1.21 $1.18 $1.12 $1.06 $1.02
Number of accumulation units outstanding
at end of period (000 omitted)............ 217 165 165 247 219 243 228 198
Subaccount NHI (invests in Income Portfolio)
Accumulation unit value at beginning of
period.................................... $1.23 $1.10 $1.02 $0.90 $1.12 $1.16 $1.05 $1.00
Accumulation unit value at end of period.. $1.15 $1.23 $1.10 $1.02 $0.90 $1.12 $1.16 $1.05
Number of accumulation units outstanding
at end of period (000 omitted)............ 293 326 358 358 148 610 742 397
Subaccount NTR (invests in Managed Portfolio)
Accumulation unit value at beginning of
period.................................... $1.95 $1.67 $1.55 $1.20 $1.21 $1.06 $0.92 $1.00
Accumulation unit value at end of period.. $1.92 $1.95 $1.67 $1.55 $1.20 $1.21 $1.06 $0.92
Number of accumulation units outstanding
at end of period (000 omitted)............ 78 127 144 109 94 145 101 91
Subaccount NGO (invests in Government Securities Portfolio)
Accumulation unit value at beginning of
period.................................... $1.54 $1.41 $1.35 $1.19 $1.13 $1.05 $1.02 $1.00
Accumulation unit value at end of period.. $1.44 $1.54 $1.41 $1.35 $1.19 $1.13 $1.05 $1.02
Number of accumulation units outstanding
at end of period (000 omitted)............ 20 20 28 65 50 10 20 19
Subaccount N95 (invests in 1995 Trust)
Accumulation unit value at beginning of
period.................................... $1.58 $1.52 $1.45 $1.28 $1.19 $1.05 $1.00 $1.00
Accumulation unit value at end of period.. $1.57 $1.58 $1.52 $1.45 $1.28 $1.19 $1.05 $1.00
Number of accumulation units outstanding
at end of period (000 omitted)............ 25 35 59 69 50 55 59 33
Subaccount N04 (invests in 2004 Trust)**
Accumulation unit value at beginning of
period.................................... $2.06 $1.74 $1.63 $1.38 $1.36 $1.13 $1.00 --
Accumulation unit value at end of period.. $1.82 $2.06 $1.74 $1.63 $1.38 $1.36 $1.13 --
Number of accumulation units outstanding
at end of period (000 omitted)........... 18 36 36 36 12 12 12 --
*Operations commenced on April 15, 1987.
**Subaccount N04 commenced operations on July 19, 1988.
</TABLE>
<PAGE>
PAGE 17
IDS Life of New York Financial Information
The financial statements shown below are those of the insurance
company and not those of the Fund, the Trusts or the Subaccounts.
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 variable
contracts.
IDS Life Insurance Company of New York
<TABLE>
<CAPTION>
BALANCE SHEETS
ASSETS Dec. 31, 1994 Dec. 31, 1993
(Thousands)
<S> <C> <C>
Investments:
Fixed maturities:
Held to maturity, at amortized cost (Fair value: 1994, $653,080) $ 686,483 $ -
Available for sale, at fair value (Amortized cost: 1994, $474,599) 455,103 -
Investment securities, at amortized cost (Fair value: 1993,
$1,240,593) - 1,171,023
Mortgage loans on real estate
(Fair value: 1994, $157,085; 1993, $124,030) 164,916 123,337
Policy loans 14,899 12,952
Other investments 1,524 2,239
Total investments 1,322,925 1,309,551
Cash and cash equivalents 5,262 -
Accrued investment income 21,517 21,342
Deferred policy acquisition costs 100,078 87,891
Other assets 1,584 2,270
Assets held in segregated asset accounts,
primarily common stocks at market 506,208 380,796
Total assets $1,957,574 $1,801,850
========= =========
<PAGE>
PAGE 18
IDS LIFE INSURANCE COMPANY OF NEW YORK (a wholly owned subsidiary of IDS Life Insurance Company)
BALANCE SHEETS (continued)
LIABILITIES AND STOCKHOLDER'S EQUITY Dec. 31, 1994 Dec. 31, 1993
(Thousands)
Liabilities:
Fixed annuities - future policy benefits $1,087,367 $1,059,005
Universal life-type insurance - future policy benefits 127,871 120,917
Traditional life, disability income and long-term care
insurance - future policy benefits 40,546 40,045
Policy claims and other policyholders' funds 3,217 2,347
Deferred income taxes 2,044 13,018
Amounts due to brokers - 4,952
Other liabilities 18,600 20,311
Liabilities related to segregated asset accounts 506,208 380,796
Total liabilities 1,785,853 1,641,391
Stockholder's equity:
Capital stock, $10 par value per share;
200,000 shares authorized, issued and outstanding 2,000 2,000
Additional paid-in capital 49,000 49,000
Net unrealized gain (loss) on investments (12,369) 24
Retained earnings 133,090 109,435
Total stockholder's equity 171,721 160,459
Total liabilities and stockholder's equity $1,957,574 $1,801,850
========= =========
Commitments and contingencies (Note 7)
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 19
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK (a wholly owned subsidiary of IDS Life Insurance Company)
STATEMENTS OF INCOME
Years ended December 31,
1994 1993 1992
(Thousands)
<S> <C> <C> <C>
Revenues:
Traditional life, disability income and long-term care
insurance premiums $ 7,846 $ 7,110 $ 6,282
Policyholder and contractholder charges 11,607 9,634 8,359
Mortality and expense risk fees 4,562 2,904 1,696
Net investment income 108,143 110,147 102,071
Net gain on investments 957 1,334 2,478
Total revenues 133,115 131,129 120,886
Benefits and expenses:
Death and other benefits - traditional life, disability income
and long-term care insurance 6,016 5,715 5,705
Death and other benefits - universal life-type insurance
and investment contracts 3,773 2,465 2,133
Increase (decrease) in liabilities for future policy benefits
for traditional life, disability income and long-term care
insurance 506 (1,343) (855)
Interest credited on universal life-type insurance and
investment contracts 65,018 68,987 68,487
Amortization of deferred policy acquisition costs 12,994 10,434 8,137
Other insurance and operating expenses 8,359 7,652 6,403
Total benefits and expenses 96,666 93,910 90,010
Income before income taxes 36,449 37,219 30,876
Income taxes 12,794 13,335 10,914
Net income $ 23,655 $ 23,884 $ 19,962
====== ====== ======
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 20
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK (a wholly owned subsidiary of IDS Life Insurance Company)
STATEMENTS OF CASH FLOWS
Years ended December 31,
1994 1993 1992
(Thousands)
<S> <C> <C>
Cash flows from operating activities:
Net income $23,655 $23,884 $19,962
Adjustments to reconcile net income to net cash
provided by operating activities:
Issuance - Policy loans, excluding universal life-type insurance (1,365) (1,044) (635)
Repayment - Policy loans, excluding universal life-type insurance 849 455 327
Change in accrued investment income (175) (1,476) (1,797)
Change in deferred policy acquisition costs, net (11,522) (10,622) (10,974)
Change in liabilities for future policy benefits for traditional life,
disability income and long-term care insurance 501 (939) (855)
Change in policy claims and other policyholders' funds 870 282 592
Change in deferred income taxes (4,321) (449) 1,302
Change in other liabilities (1,711) 4,348 466
Amortization of premium (accretion of discount), net 2,464 (1,598) (1,410)
Net gain on investments (957) (1,334) (2,478)
Premiums related to universal life-type insurance 19,522 15,141 13,919
Surrenders and death benefits related to universal life-
type insurance (13,208) (9,785) (5,976)
Interest credited to account balances related to universal life-
type insurance 6,640 6,892 7,168
Policyholder and contractholder charges, non-cash (6,000) (5,663) (5,452)
Other, net 689 (780) 700
Net cash provided by operating activities $15,931 $17,312 $14,859
See accompanying notes to financial statements.
<PAGE>
PAGE 21
IDS LIFE INSURANCE COMPANY OF NEW YORK (a wholly owned subsidiary of IDS Life Insurance Company)
STATEMENTS OF CASH FLOWS (continued)
Years ended December 31,
1994 1993 1992
(Thousands)
Cash flows from investing activities:
Fixed maturities held to maturity:
Purchases $ (36,560) $ - $ -
Maturities, sinking fund payments and calls 78,757 - -
Sales 2,649 - -
Fixed maturities available for sale:
Purchases (117,965) - -
Maturities, sinking fund payments and calls 70,316 - -
Sales 14,533 - -
Investment securities:
Purchases - (331,900) (420,607)
Maturities, sinking fund payments and calls - 265,059 210,543
Sales - 28,519 67,306
Other investments, excluding policy loans:
Purchases (47,353) (65,202) (19,430)
Sales 2,975 2,568 867
Change in amounts due to brokers (4,952) (10,448) 12,249
Net cash used in investing activities (37,600) (111,404) (149,072)
Cash flows from financing activities:
Activity related to investment contracts:
Considerations received 168,947 149,269 159,913
Surrenders and death benefits (198,963) (119,158) (80,632)
Interest credited to account balances 58,378 62,250 61,319
Universal life-type insurance policy loans:
Issuance (3,907) (3,403) (3,668)
Repayment 2,476 1,886 1,548
Cash dividend to parent - - (6,000)
Net cash provided by financing activities 26,931 90,844 132,480
Net increase (decrease) in cash and cash
equivalents 5,262 (3,248) (1,733)
Cash and cash equivalents at beginning of year - 3,248 4,981
Cash and cash equivalents at end of year $ 5,262 $ - $ 3,248
===== ===== =====
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 22
IDS LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ Thousands)
December 31, 1994, 1993 and 1992
1. Summary of significant accounting policies
Nature of business
IDS Life Insurance Company of New York (the Company) is
engaged in the insurance and annuity business in the state of
New York and sells various forms of fixed and variable
individual life insurance, individual disability income and
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 Life
Insurance Company (IDS Life), which is a wholly owned
subsidiary of American Express Financial Corporation
(formerly IDS Financial Corporation), which is a wholly owned
subsidiary of American Express Company. The accompanying
financial statements have been prepared in conformity with
generally accepted accounting principles which vary in
certain respects from reporting practices prescribed or
permitted by state insurance regulatory authority as
reconciled in Note 11.
Investments
As of Jan. 1, 1994, the Company adopted Statement of
Financial Accounting Standards (SFAS) No. 115, "Accounting
for Certain Investments in Debt and Equity Securities."
Under SFAS No. 115, fixed maturities that the Company has
both the positive intent and the ability to hold to maturity
are classified as held to maturity and carried at amortized
cost. All other fixed maturities and all marketable equity
securities are classified as available for sale and carried
at fair value. Unrealized gains and losses on securities
classified as available for sale are carried as a separate
component of stockholder's equity. The effect of adopting
SFAS No. 115 was to increase stockholder's equity by
approximately $12 million, net of tax, as of Jan. 1, 1994,
but the adoption had no impact on the Company's net income.
Management determines the appropriate classification of fixed
maturities at the time of purchase and reevaluates the
classification at each balance sheet date.
Mortgage loans on real estate are carried principally at the
unpaid principal balances of the related loans. Policy loans
are carried at the aggregate of the unpaid loan balances
which do not exceed the cash surrender values of the related
policies. Other investments include interest rate caps and
equity securities. When evidence indicates a decline, which
is other than temporary, in the underlying value or earning
<PAGE>
PAGE 23
Notes to Financial Statements ($ Thousands) (continued)
December 31, 1994, 1993 and 1992
1. Summary of significant accounting policies (continued)
power of individual investments, such investments are written
down to the fair value by a charge to income. Equity
securities are carried at market value and the related net
unrealized appreciation or depreciation is reported as a
credit or charge to stockholder's equity.
Realized investment gain or loss is determined on an
identified cost basis.
Prepayments are anticipated on certain investments in
mortgage-backed securities in determining the constant
effective yield used to recognize interest income.
Prepayment estimates are based on information received from
brokers who deal in mortgage-backed securities.
Statement of cash flows
The Company considers investments with a maturity at the date
of their acquisition of three months or less to be cash
equivalents. These securities are carried principally at
amortized cost which approximates fair value.
Supplementary information to the statement of cash flows for
the years ended Dec. 31 is summarized as follows:
1994 1993 1992
Cash paid during the year for:
Income taxes $17,386 $14,138 $9,193
Interest on borrowings 147 235 132
Recognition of profits on annuity contracts and insurance
policies
The Company issues single premium deferred annuity contracts
that provide for a service fee (surrender charge) at annually
decreasing rates upon withdrawal of the annuity accumulation
value by the contract owner. No sales fee is deducted from
the contract considerations received on these contracts ("no
load" annuities). All of the Company's single premium
deferred annuity contracts provide for crediting the contract
owners' accumulations at specified rates of interest. Such
rates are revised by the Company from time to time based on
changes in the market investment yield rates for fixed-income
securities.
Profits on single premium deferred annuities and installment
annuities are recognized by the Company over the lives of the
contracts and represent the excess of investment income
earned from investment of contract considerations over
interest credited to contract owners and other expenses.
<PAGE>
PAGE 24
Notes to Financial Statements ($ Thousands) (continued)
December 31, 1994, 1993 and 1992
1. Summary of significant accounting policies (continued)
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 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
inrecognition 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 and long-
term care insurance policies, the costs are amortized over an
appropriate period in proportion to premium revenue.
Liabilities for future policy benefits
Liabilities for universal life-type insurance, single premium
deferred annuities and installment annuities are accumulation
values.
Liabilities for fixed annuities in a benefit status are based
on the Progressive Annuity Table with interest at 5 percent,
the 1971 Individual Annuity Table with interest at 7 percent
or 8.25 percent, or the 1983a Table with various interest
rates ranging from 5.5 percent to 9.5 percent, depending on
year of issue.
Liabilities for future benefits on traditional life insurance
have been computed principally by the net level premium
method, based on anticipated rates of mortality
(approximating the 1965-1970 Select and Ultimate Basic Table
for policies issued after 1980 and the 1955-1960 Select and
Ultimate Basic Table for policies issued prior to 1981 and
the 1975-1980 Select and Ultimate Basic Table for term
insurance policies issued after 1986), policy persistency
derived from IDS Life's experience data (first-year rates
<PAGE>
PAGE 25
Notes to Financial Statements ($ Thousands) (continued)
December 31, 1994, 1993 and 1992
1. Summary of significant accounting policies (continued)
ranging from approximately 70 percent to 90 percent and
increasing rates thereafter), and estimated future investment
yields of 4 percent for policies issued before 1974 and 5.25
percent for policies issued from 1974 to 1980. Cash value
plans issued in 1980 and later assume future investment rates
that grade from 9.5 percent to 5 percent over 20 years. Term
insurance issued from 1981 to 1984 assumes an 8 percent level
investment rate, 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 the1958
Commissioners Standard Ordinary Mortality Table at 3 percent
interest for 1980 and prior, 8 percent interest for persons
disabled from 1981 to 1991, 7.7 percent interest for persons
disabled in 1992 and 6 percent interest for persons disabled
after 1992.
Liabilities for future benefits on long-term care insurance
have been computed principally by the net level premium
method, using morbidity rates based on the 1985 National
Nursing Home Survey and mortality rates based on the 1983a
Table. The interest rate basis is 9.5 percent grading to 7
percent over ten years for policies issued from 1989 to 1992,
7.75 percent grading to 7 percent over four years for
policies issued after 1992, 8 percent for claims incurred in
1989 to 1991, 7.7 percent for claims incurred in 1992 and 6
percent for claims incurred after 1992.
Reinsurance
The maximum amount of life insurance risk retained by the
Company on any one life is $750 of life and waiver of premium
benefits plus $50 of accidental death benefits. The maximum
amount of disability income risk retained by the Company on
any one life is $6 of monthly benefit for benefit periods
longer than three years. The excesses are reinsured with
other life insurance companies on a yearly renewable term
basis.
Federal income taxes
The Company's taxable income is included in the consolidated
federal income tax return of American Express Company. The
Company provides for income taxes on a separate return basis,
except that, under an agreement between American Express
Financial Corporation and American Express Company, tax
benefit is recognized for losses to the extent they can be
used on the consolidated tax return. It is the policy of
<PAGE>
PAGE 26
Notes to Financial Statements ($ Thousands) (continued)
December 31, 1994, 1993 and 1992
1. Summary of significant accounting policies (continued)
American Express Financial Corporation and its subsidiaries
that American Express Financial Corporation will reimburse a
subsidiary for any tax benefit.
Included in other liabilities at Dec. 31, 1994 and 1993 are
$3,161 and $3,462, respectively, payable to IDS Life for
federal income taxes.
Segregated asset account business
The segregated asset account assets and liabilities represent
funds held for the exclusive benefit of the variable annuity
and variable life insurance contract owners. The Company
receives a monthly cost of insurance charge and receives a
minimum death benefit guarantee fee from variable life
insurance segregated asset accounts and a mortality and
expense assurance fee from the variable annuity and variable
life insurance segregated asset accounts.
The Company makes contractual mortality assurances to the
variable annuity contract owners that the net assets of the
segregated asset accounts will not be affected by future
variations in the actual life expectancy experience of the
annuitants and the beneficiaries from the mortality
assumptions implicit in the annuity contracts. The Company
makes periodic fund transfers to, or withdrawals from, the
segregated asset accounts for such actuarial adjustments for
variable annuities that are in the benefit payment period.
The Company guarantees, for the variable life insurance
policyholders, the contractual insurance rate and that the
death benefit will never be less than the death benefit at
the date of issuance.
Reclassification
Certain 1993 and 1992 amounts have been reclassified to
conform to the 1994 presentation.
2. Investments
Fair values of investments in fixed maturities represent
quoted market prices and estimated values when quoted prices
are not available. Estimated values are determined by
established procedures involving, among other things, review
of market indices, price levels of current offerings of
comparable issues, price estimates and market data from
independent brokers and financial files.
<PAGE>
PAGE 27
Notes to Financial Statements ($ Thousands) (continued)
December 31, 1994, 1993 and 1992
2. Investments (continued)
Changes in net unrealized appreciation (depreciation) of
investments for the years ended Dec. 31 are summarized as
follows:
1994 1993 1992
Fixed maturities:
Held to maturity $(84,244) $ -- $ --
Available for sale (38,226) -- --
Investment securities -- 25,350 (10,980)
Net gain (loss) on investments for the years ended Dec. 31 is
summarized as follows:
1994 1993 1992
Fixed maturities $948 $1,316 $2,752
Other investments 9 18 (274)
$957 $1,334 $2,478
==== ====== ======
The amortized cost, gross unrealized gains and losses and
fair value of investments in fixed maturities and equity
securities at Dec. 31, 1994 are as follows:
<TABLE><CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
Held to maturity Cost Gains Losses Value
<S> <C> <C> <C> <C>
U.S. Government agency
obligations $ 398 $ 2 $ 18 $ 382
Corporate bonds and
obligations 622,422 6,564 33,976 595,010
Mortgage-backed
securities 63,663 580 6,555 57,688
$686,483 $7,146 $40,549 $653,080
======= ===== ====== =======
Gross Gross
Amortized Unrealized Unrealized Fair
Available for sale Cost Gains Losses Value
U.S. Government agency
obligations $ 10,000 $ -- $ 135 $ 9,865
State and municipal
obligations 104 1 -- 105
Corporate bonds and
obligations 142,447 2,632 2,447 142,632
Mortgage-backed
securities 322,048 381 19,928 302,501
Total fixed maturities 474,599 3,014 22,510 455,103
Equity securities 332 -- 197 135
$474,931 $3,014 $22,707 $455,238
======= ===== ====== =======
/TABLE
<PAGE>
PAGE 28
Notes to Financial Statements ($ Thousands) (continued)
December 31, 1994, 1993 and 1992
2. Investments (continued)
The change in net unrealized gain (loss) on available for
sale securities included as a separate component of
stockholder's equity was $(12,393) in 1994.
The amortized cost, gross unrealized gains and losses, and
fair value of investments in fixed maturities carried at
amortized cost at Dec. 31, 1993 are as follows:
<TABLE><CAPTION>
Amortized Unrealized Unrealized Fair
1993 Cost Gains Losses Value
<S> <C> <C> <C> <C>
U.S. Government agency
obligations $ 400 $ 40 $ -- $ 440
State and municipal
obligations 105 15 -- 120
Corporate bonds and
obligations 745,822 60,482 1,858 804,446
Mortgage-backed
securities 424,696 15,265 4,374 435,587
$1,171,023 $75,802 $6,232 $1,240,593
========== ======= ====== ==========
</TABLE>
At Dec. 31, 1993, gross and net unrealized appreciation on
equity securities amounted to $18. The fair value of equity
securities was $190 at Dec. 31, 1993.
The amortized cost and fair value of investments in fixed
maturities at Dec. 31, 1994 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.
<TABLE><CAPTION>
Amortized Fair
Held to maturity Cost Value
<S> <C> <C>
Due in one year or less $ 4,952 $ 5,002
Due from one to five years 88,837 89,253
Due from five to ten years 386,356 371,007
Due in more than ten years 142,675 130,130
Mortgage-backed securities 63,663 57,688
$686,483 $653,080
======= =======
Amortized Fair
Available for sale Cost Value
Due from one to five years $ 92,886 $ 93,117
Due from five to ten years 37,524 38,494
Due in more than ten years 22,141 20,991
Mortgage-backed securities 322,048 302,501
$474,599 $455,103
======= =======
/TABLE
<PAGE>
PAGE 29
Notes to Financial Statements ($ Thousands) (continued)
December 31, 1994, 1993 and 1992
2. Investments (continued)
During the year ended Dec. 31, 1994, fixed maturities
classified as held to maturity were sold with proceeds of
$2,649 and gross realized gains and losses on such sales were
$nil and $86, respectively. The sale of these fixed
maturities was due to credit deterioration.
In addition, fixed maturities available for sale were sold
during 1994 with proceeds of $14,533 and gross realized gains
and losses on such sales were $181 and $308, respectively.
Proceeds from sales of investments in fixed maturities during
1993 were $28,519. During 1993, gross gains of $4,022 and
gross losses of $2,213 were realized on those sales.
At Dec. 31, 1994, bonds carried at $264 were on deposit with
the state of New York as required by law.
Net investment income for the years ended Dec. 31 is
summarized as follows:
<TABLE><CAPTION>
1994 1993 1992
<S> <C> <C> <C>
Interest on fixed maturities $ 93,800 $ 100,940 $ 96,452
Interest on mortgage loans 13,226 8,424 4,908
Other investment income 1,219 1,220 841
Interest on cash equivalents 363 63 378
108,608 110,647 102,579
Less investment expenses 465 500 508
$108,143 $110,147 $102,071
</TABLE>
At Dec. 31, 1994, investments in fixed maturities comprised
86 percent of the Company's total invested assets.
Securities are rated by Moody's and Standard & Poor's (S&P)
except for securities carried at approximately $129 million
which are rated by American Express Financial Corporation
internal analysts using criteria similar to Moody's and S&P.
A summary of investments in fixed maturities, at amortized
cost, by rating on Dec. 31 is as follows:
<TABLE><CAPTION>
Rating 1994 1993
<S> <C> <C>
Aaa/AAA $ 393,736 $ 425,404
Aa/AA 18,857 13,285
Aa/A 9,710 14,213
A/A 191,694 139,878
A/BBB 57,206 62,817
Baa/BBB 340,271 343,233
Baa/BB 48,552 55,812
Below investment grade 101,056 116,381
$1,161,082 $1,171,023
========== ==========
/TABLE
<PAGE>
PAGE 30
Notes to Financial Statements ($ Thousands) (continued)
December 31, 1994, 1993 and 1992
2. Investments (continued)
At Dec. 31, 1994, 93 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, 1994, approximately 12.5 percent of the Company's
invested assets were mortgage loans on real estate.
Summaries of mortgage loans by region and by type of real
estate are as follows:
<TABLE><CAPTION>
Dec. 31, 1994 Dec. 31, 1993
On Balance Commitments On Balance Commitments
Region Sheet to Purchase Sheet to Purchase
<S> <C> <C> <C> <C>
West North Central $ 26,660 $ -- $ 27,349 $ 1,713
East North Central 35,018 -- 28,349 2,569
South Atlantic 39,516 18 26,423 8,279
Middle Atlantic 24,061 -- 15,912 8,564
Pacific 13,297 -- 12,224 --
Mountain 15,218 -- 6,723 4,568
New England 9,674 -- 4,858 2,855
East South Central 1,629 -- 1,646 --
West South Central 288 -- 298 --
165,361 18 123,782 28,548
Less allowance for losses 445 -- 445 --
$164,916 $18 $123,337 $28,548
======= == =======
Dec. 31, 1994 Dec. 31, 1993
On Balance Commitments On Balance Commitments
Region Sheet to Purchase Sheet to Purchase
Apartments $ 65,389 $18 $ 47,178 $15,130
Department/retail stores 57,608 -- 38,253 9,706
Office buildings 13,107 -- 11,475 1,142
Industrial buildings 13,583 -- 13,781 1,142
Medical buildings 6,704 -- 5,229 1,428
Nursing/retirement 6,644 -- 5,507 --
Other 2,038 -- 2,061 --
Hotels/motels 288 -- 298 --
165,361 18 123,782 28,548
Less allowance for losses 445 -- 445 --
$164,916 $18 $123,337 $28,548
======= == ========
</TABLE>
Mortgage loan fundings are restricted by state insurance
regulatory authority to 80 percent or less of the market
value of the real estate at the time of origination of the
loan. The Company holds the mortgage document, which gives
the right to take possession of the property if the borrower
fails to perform according to the terms of the agreement.
<PAGE>
PAGE 31
Notes to Financial Statements ($ Thousands) (continued)
December 31, 1994, 1993 and 1992
2. Investments (continued)
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.
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>
1994 1993 1992
<S> <C> <C> <C>
Federal income taxes:
Current $16,419 $13,164 $ 9,037
Deferred (4,320) (449) 1,302
12,099 12,715 10,339
State income taxes-current 695 620 575
Income tax expense $12,794 $13,335 $10,914
===== ===== =====
</TABLE>
Increases (decreases) to the federal tax provision applicable
to pretax income based on the statutory rate are attributable to:
<TABLE><CAPTION>
1994 1993 1992
Provision Rate Provision Rate Provision Rate
<S> <C> <C> <C> <C>
Federal income taxes based
on the statutory rate $12,757 35.0% $13,026 35.0% $10,498 34.0%
Increases (decreases)
are attributable to:
Tax-excluded interest
and dividend income (554) (1.5) (557) (1.5) (429) (1.4)
Other, net (104) (0.3) 246 0.7 270 0.9
Federal income taxes $12,099 33.2% $12,715 34.2% $10,339 33.5%
====== === ===== === ===== ===
</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, 1994, the Company had a policyholders' surplus
account balance of $798. The policyholders' surplus account
is only taxable if dividends to the stockholder exceed the
stockholder's surplus account or if the Company is
liquidated. Deferred income taxes of $279 have not been
established because no distributions of such amounts are
contemplated.
<PAGE>
PAGE 32
Notes to Financial Statements ($ Thousands) (continued)
December 31, 1994, 1993 and 1992
3. Income taxes (continued)
Significant components of the Company's deferred tax assets
and liabilities as of Dec. 31 are as follows:
1994 1993
Deferred tax assets:
Policy reserves $21,567 $15,683
Investments 3,331 --
Other 2,991 1,543
Total deferred tax assets 27,889 17,226
Deferred tax liabilities:
Deferred policy acquisition costs 29,933 27,250
Investments -- 2,994
Total deferred tax
liabilities 29,933 30,244
Net deferred tax liabilities $ 2,044 $13,018
===== =====
The Company is required to establish a "valuation allowance"
for any portion of the deferred tax assets that management
believes will not be realized. In the opinion of management,
it is more likely than not that the Company will realize the
benefit of the deferred tax assets, and, therefore, no such
valuation allowance has been established.
4. Stockholder's equity
Retained earnings available for distribution as dividends to
the parent are limited to the Company's surplus as determined
in accordance with accounting practices prescribed by state
insurance regulatory authority. Statutory unassigned surplus
aggregated $70,974 as of Dec. 31, 1994 and $52,642 as of Dec.
31, 1993 (see Note 3 with respect to the income tax effect of
certain distributions). In addition, any dividend
distributions in 1994 in excess of approximately $7,097 would
require approval of the New York Insurance Department.
Dividends paid to parent were $nil in 1994, $nil in 1993 and
$6,000 in 1992.
5. Retirement plan and services
The Company participates in the retirement plan of American
Express Financial Corporation which covers all permanent
employees age 21 and over who have met certain employment
requirements. The benefits are based on years of service and
the employee's monthly average of basic annual salary rates
in effect on January 1, or such other date as determined by
American Express Financial Corporation, of the highest five
consecutive annual salaries of the last 10 years. American
Express Financial Corporation's policy is to fund retirement
<PAGE>
PAGE 33
Notes to Financial Statements ($ Thousands) (continued)
December 31, 1994, 1993 and 1992
5. Retirement plan and services (continued)
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 1994, 1993 and 1992.
The Company has a "Sales Benefit Plan" which is an unfunded,
noncontributory retirement plan for all eligible financial
advisors. Total plan costs for 1994, 1993 and 1992, which
are calculated on the basis of commission earnings of the
individual financial advisors, were $1,372, $1,042 and
$1,164, respectively. Such costs are included in deferred
policy acquisition costs.
The Company also participates in defined contribution pension
plans of American Express Financial Corporation 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 1994, 1993 and
1992 were $251, $201 and $144, respectively.
The Company participates in defined benefit health care plans
of American Express Financial Corporation that provide health
care and life insurance benefits to retired employees and
retired financial advisors. The plans include participant
contributions and service-related eligibility requirements.
Upon retirement, such employees are considered to have been
employees of American Express Financial Corporation.
American Express Financial Corporation expenses these
benefits and allocates the expenses to its subsidiaries.
Accordingly, costs of such benefits to the Company are
included in employee compensation and benefits and cannot be
identified on a separate company basis. At Dec. 31, 1994,
the total accumulated post retirement benefit obligation,
determined in accordance with SFAS 106 and based on an
assumed interest rate of 8.75 percent and a health care cost
trend rate of 7 percent, has been recorded as a liability by
American Express Financial Corporation.
6. Incentive plan and operating expenses
The Company maintains a "Persistency Payment Plan." Under
the terms of this plan, financial advisors earn additional
compensation based on the volume and persistency of insurance
sales. The total costs for the plan for 1994, 1993 and 1992
were $1,287, $1,387 and $1,252, respectively. Such costs are
included in deferred policy acquisition costs.
Charges by IDS Life and American Express Financial
Corporation for the use of joint facilities, marketing
services and other services aggregated $9,314, $7,421 and
$6,914 for 1994, 1993 and 1992, respectively. Certain of the
costs assessed to the Company are included in deferred policy
acquisition costs.
<PAGE>
PAGE 34
Notes to Financial Statements ($ Thousands) (continued)
December 31, 1994, 1993 and 1992
7. Commitments and contingencies
At Dec. 31, 1994 and 1993, traditional life insurance and
universal life-type insurance in force aggregated $3,155,571
and $2,933,830, respectively, of which $162,956 and $172,973
were reinsured at the respective year ends.
In addition, the Company has a "stop loss" reinsurance
agreement with IDS Life covering ordinary life benefits. IDS
Life agrees to pay all death benefits incurred each year
which exceed 125 percent of normal claims, where "normal"
claims are defined in the agreement as .095 percent of the
mean retained life insurance in force. Premiums ceded to IDS
Life amounted to $76, $67 and $60 for the years ended Dec.
31, 1994, 1993 and 1992, respectively. Claim recoveries
under the terms of this reinsurance agreement were $nil in
1994, $nil in 1993 and $534 in 1992.
Premiums ceded to reinsurers other than IDS Life amounted to
$721, $741 and $773 for the years ended Dec. 31, 1994, 1993
and 1992, respectively. Reinsurance recovered from
reinsurers other than IDS Life amounted to $14, $379 and $186
for the years ended Dec. 31, 1994, 1993 and 1992.
Reinsurance contracts do not relieve the Company from its
primary obligations to policyholders.
The Company has an agreement to assume a block of extended
term life insurance business. The amount of insurance in
force related to this agreement was $447,317 and $512,555 at
Dec. 31, 1994 and 1993, respectively. The accompanying
statement of income includes premiums of $nil for the years
ended Dec. 31, 1994, 1993 and 1992, and decrease in
liabilities for future policy benefits of $2,538, $3,032 and
$3,825 related to this agreement for the years ended Dec. 31,
1994, 1993 and 1992, respectively.
8. Lines of credit
The Company has available lines of credit with two banks
aggregating $30,000 at 40 to 80 basis points over each bank's
cost of funds. Outstanding borrowings under these agreements
were $nil and $1,519 at Dec. 31, 1994 and 1993, respectively.
9. Derivative financial instruments
The Company enters into transactions involving derivative
financial instruments to manage its exposure to interest rate
risk, including hedging specific transactions. The Company
manages risks associated with these instruments as described
below. The Company does not hold derivative instruments for
trading purposes.
<PAGE>
PAGE 35
Notes to Financial Statements ($ Thousands) (continued)
December 31, 1994, 1993 and 1992
9. Derivative financial instruments (continued)
Market risk is the possibility that the value of the
derivative financial instruments will change due to
fluctuations in a factor from which the instrument derives
its value, primarily an interest rate. The Company is not
impacted by market risk related to derivatives held for non-
trading purposes beyond that inherent in cash market
transactions. Derivatives held for purposes other than
trading are largely used to manage risk and, therefore, the
cash flow and income effects of the derivatives are inverse
to the effects of the underlying transactions.
Credit risk is the possibility that the counterparty will not
fulfill the terms of the contract. The Company monitors
credit exposure related to derivative financial instruments
through established approval procedures, including setting
concentration limits by counterparty and industry, and
requiring collateral, where appropriate. A vast majority of
the Company's counterparties are rated A or better by Moody's
and Standard & Poor's.
The notional or contract amount of a derivative financial
instrument is generally used to calculate the cash flows that
are received or paid over the life of the agreement.
Notional amounts are not recorded on the balance sheet.
Notional amounts far exceed the related credit exposure.
Credit exposure related to interest rate caps is measured by
carrying value of the contracts.
<TABLE><CAPTION>
Notional Carrying Fair Total Credit
Assets Amount Value Value Exposure
<S> <C> <C> <C> <C>
Interest rate caps $200,000 $1,389 $828 $1,389
</TABLE>
The fair values of derivative financial instruments are based
on market values, dealer quotes or pricing models. The
interest rate caps expire on various dates from 1996 to 1997.
Interest rate caps are used to manage the Company's exposure
to rising interest rates. These instruments are used
primarily to protect the margin between interest rate earned
on investments and the interest rate credited to related
annuity contract holders.
The cost of interest rate caps is amortized to interest
expense over the life of the contracts and payments received
as a result of these agreements are recorded as a reduction
of interest expense when realized. The amortized cost of
interest rate cap contracts is included in other investments.
<PAGE>
PAGE 36
Notes to Financial Statements ($ Thousands) (continued)
December 31, 1994, 1993 and 1992
10. Fair values of financial instruments
The Company is required to disclose fair value information
for most on- and off-balance sheet financial instruments for
which it is practical to estimate that value. Certain
financial instruments such as life insurance obligations,
receivables and all non-financial instruments, such as
deferred acquisition costs are excluded from required
disclosure. Off-balance sheet intangible assets, such as the
value the field force, are also excluded. Management
believes the value of excluded assets is significant. The
fair value of the Company, therefore, cannot be estimated by
aggregating the amounts presented.
<TABLE><CAPTION>
1994 1993
Carrying Fair Carrying Fair
Financial Assets Value Value Value Value
<S> <C> <C> <C> <C>
Investments:
Fixed maturities (Note 2):
Held to maturity $686,483 $653,080 $ -- $ --
Available for sale 455,103 455,103 -- --
Investment securities -- -- 1,171,023 1,240,593
Mortgage loans on
real estate (Note 2) 164,916 157,085 123,337 124,030
Other:
Equity securities (Note 2) 135 135 190 190
Derivative financial
instruments (Note 9) 1,389 828 2,050 385
Cash and
cash equivalents (Note 1) 5,262 5,262 -- --
Assets held in segregated
asset accounts (Note 1) 506,208 506,208 380,796 380,796
Financial Liabilities
Future policy benefits
for fixed annuities 1,025,881 991,358 1,003,009 970,169
Liabilities related to
segregated asset accounts 474,958 448,665 357,176 339,122
</TABLE>
At Dec. 31, 1994 and 1993, the carrying amount and fair value
of future policy benefits for fixed annuities exclude life
insurance-related contracts carried at $59,803 and $54,911,
respectively, and policy loans of $1,683 and $1,085 at Dec.
31, 1994 and 1993, respectively. The fair value of these
benefits is based on the status of the annuities at Dec. 31,
1994 and 1993. 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 1994 and 1993.
At Dec. 31, 1994 and 1993 the fair value of liabilities
related to segregated asset accounts is estimated as the
carrying amount less variable insurance contracts carried at
$31,250 and $23,620, respectively, and surrender charges, if
applicable.
<PAGE>
PAGE 37
Notes to Financial Statements ($ Thousands) (continued)
December 31, 1994, 1993 and 1992
11. Statutory insurance accounting practices
Reconciliations of net income for 1994, 1993 and 1992 and
stockholder's equity at Dec. 31, 1994 and 1993, as shown in
the accompanying financial statements, to that determined
using statutory accounting practices are as follows:
<TABLE><CAPTION>
1994 1993 1992
<S> <C> <C> <C>
Net income, per accompanying
financial statements $23,655 $23,884 $19,962
Deferred policy acquisition costs (12,187) (10,622) (10,974)
Adjustments of future policy
benefit liabilities 13,741 13,597 9,319
Deferred federal income taxes (4,321) (462) 1,302
Provision for losses on investments(1,652) 438 (2,279)
Separate account gains 142 2,708 4,234
Other, net 755 (1,182) (1,757)
Net income, on basis of
statutory accounting practices $20,133 $28,361 $19,807
===== ===== =====
</TABLE>
<TABLE><CAPTION>
1994 1993
<S> <C> <C>
Stockholder's equity, per accom-
panying financial statements $171,721 $160,459
Deferred policy acquisition costs (100,078) (87,891)
Adjustments of future policy
benefit liabilities 33,827 20,086
Deferred federal income taxes 2,044 13,018
Securities valuation reserve (15,939) (12,780)
Adjustments of separate account liabilities 13,557 13,415
Net unrealized loss on investments 19,497 --
Premiums due 851 856
Deferred revenue liability 834 895
Book value adjustment of bonds -- (1,918)
Allowance for losses 445 2,097
Non-admitted assets (503) (552)
Interest maintenance reserve (2,110) (2,056)
Other, net 249 (144)
Stockholder's equity, on basis of
statutory accounting practices $124,395 $105,485
====== ======
</TABLE>
<PAGE>
PAGE 38
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company of New York
We have audited the accompanying balance sheets of IDS Life
Insurance Company of New York (a wholly owned subsidiary of IDS
Life Insurance Company) as of December 31, 1994 and 1993, and the
related statements of income and cash flows for each of the three
years in the period ended December 31, 1994. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of IDS
Life Insurance Company of New York at December 31, 1994 and 1993,
and the results of its operations and its cash flows for each of
the three years in the period ended December 31, 1994, in
conformity with generally accepted accounting principles.
As discussed in Note 1 to the financial statements, the Company
changed its method of accounting for certain investments in debt
and equity securities in 1994.
Ernst & Young LLP
February 3, 1995
Minneapolis, Minnesota
<PAGE>
PAGE 39
[ARTICLE] 6
[NAME] IDS Life of New York Account 7
[FISCAL-YEAR-END] DEC-31-1994
[PERIOD-START] JAN-01-1994
[PERIOD-END] DEC-31-1994
[PERIOD-TYPE] YEAR
[EXCHANGE-RATE] 1
[INVESTMENTS-AT-COST] 1241126
[INVESTMENTS-AT-VALUE] 1496962
[RECEIVABLES] 3518
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1500480
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] (6841)
[TOTAL-LIABILITIES] (6841)
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 0
[SHARES-COMMON-STOCK] 918062
[SHARES-COMMON-PRIOR] 1034144
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] 1493639
[DIVIDEND-INCOME] 133940
[INTEREST-INCOME] 0
[OTHER-INCOME] 0
[EXPENSES-NET] (37273)
[NET-INVESTMENT-INCOME] 96667
[REALIZED-GAINS-CURRENT] 79580
[APPREC-INCREASE-CURRENT] (210635)
[NET-CHANGE-FROM-OPS] (34388)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 108908
[NUMBER-OF-SHARES-REDEEMED] (224990)
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] (288639)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 0
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (37273)
[AVERAGE-NET-ASSETS] 1637958
[PER-SHARE-NAV-BEGIN] 0
[PER-SHARE-NII] 0
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
<PAGE>
PAGE 40
[PER-SHARE-NAV-END] 0
[EXPENSE-RATIO] 0
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
<PAGE>
PAGE 41
[ARTICLE] 7
[LEGEND]
[CIK] 0000817132
[NAME] IDS Life Insurance Company of New York
[MULTIPLIER] 1000
[CURRENCY] U.S. DOLLAR
[FISCAL-YEAR-END] DEC-31-1993 DEC-31-1994
[PERIOD-START] JAN-01-1993 JAN-01-1994
[PERIOD-END] DEC-31-1993 DEC-31-1994
[PERIOD-TYPE] YEAR YEAR
[EXCHANGE-RATE] 1 1
[DEBT-HELD-FOR-SALE] 0 455103
[DEBT-CARRYING-VALUE] 1171023 686483
[DEBT-MARKET-VALUE] 1240593 653080
[EQUITIES] 190 135
[MORTGAGE] 123337 164916
[REAL-ESTATE] 0 0
[TOTAL-INVEST] 1309551 1322925
[CASH] 0 5262
[RECOVER-REINSURE] 246 3
[DEFERRED-ACQUISITION] 87891 100078
[TOTAL-ASSETS] 1801850 1957574
[POLICY-LOSSES] 1219967 1255784
[UNEARNED-PREMIUMS] 0 0
[POLICY-OTHER] 0 0
[POLICY-HOLDER-FUNDS] 2347 3217
[NOTES-PAYABLE] 0 0
[COMMON] 2000 2000
[PREFERRED-MANDATORY] 0 0
[PREFERRED] 0 0
[OTHER-SE] 158459 169721
[TOTAL-LIABILITY-AND-EQUITY] 1801850 1957574
[PREMIUMS] 7110 7846
[INVESTMENT-INCOME] 110147 108143
[INVESTMENT-GAINS] 1334 957
[OTHER-INCOME] 12538 16170
[BENEFITS] 75824 75313
[UNDERWRITING-AMORTIZATION] 10434 12994
[UNDERWRITING-OTHER] 7652 8359
[INCOME-PRETAX] 37219 36449
[INCOME-TAX] 13335 12794
[INCOME-CONTINUING] 23884 23655
[NET-INCOME] 23884 23655
[DISCONTINUED] 0 0
[EXTRAORDINARY] 0 0
[CHANGES] 0 0
[EPS-PRIMARY] 0 0
[EPS-DILUTED] 0 0
[RESERVE-OPEN] 1026 450
[PROVISION-CURRENT] 8180 9789
[PROVISION-PRIOR] 0 0
[PAYMENTS-CURRENT] 8756 8537
[PAYMENTS-PRIOR] 0 0
[RESERVE-CLOSE] 450 1702
[CUMULATIVE-DEFICIENCY] 0 0
