Back to GetFilings.com



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


Quarterly Report Under Section 13 or 15(d) of the Securities Exchange
Act of 1934

(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the quarterly period ended June 30, 2002

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 333-65080

AMERICAN ENTERPRISE LIFE INSURANCE COMPANY
-------------------------------------------------------
(Exact name of registrant as specified in its charter)

INDIANA 94-2786905
- -------------------------------- ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)


829 AXP FINANCIAL CENTER, MINNEAPOLIS, MINNESOTA 55474
- ------------------------------------------------- -------------
(Address of principal executive offices) (Zip Code)

(Registrant's telephone number, including area code) (612) 671-3131
--------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND
(b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE PERMITTED
ABBREVIATED NARRATIVE DISCLOSURE.




AMERICAN ENTERPRISE LIFE INSURANCE COMPANY
FORM 10-Q

For the Quarter Ended June 30, 2002

Table of Contents

PART I - FINANCIAL INFORMATION Page
----
Item 1. Financial Statements

Consolidated Balance Sheets as of
June 30, 2002 (unaudited) and
December 31, 2001 3 - 4

Consolidated Statements of Income for the
three and six months ended June 30, 2002 and 2001
(unaudited) 5 - 6

Consolidated Statements of Cash Flows for the
six months ended June 30, 2002 and 2001
(unaudited) 7 - 8

Notes to Consolidated Financial Statements
(unaudited) 9 - 11

Item 2. Management's Discussion and Analysis of
Consolidated Financial Condition and
Results of Operations 12 - 14

PART II - OTHER INFORMATION 15 - 21

SIGNATURES 22


AMERICAN ENTERPRISE LIFE INSURANCE COMPANY
CONSOLIDATED BALANCE SHEETS
(In thousands)


June 30, December 31,
ASSETS 2002 2001
(unaudited)
Investments:
Available for sale:
Fixed maturities, at fair value (Amortized cost:
2002, $3,733,202; 2001, $3,282,893) $3,795,802 $3,302,753
Common stocks, at fair value
(Cost: 2002, $0; 2001, $172) -- 344
Mortgage loans on real estate 617,621 654,209
Other investments 2,400 2,400
----------- ----------

Total investments 4,415,823 3,959,706

Cash and cash equivalents 237,761 260,214

Amounts due from brokers 59 41,705

Other accounts receivable 1,835 1,812

Accrued investment income 48,138 45,422

Deferred policy acquisition costs 239,107 217,923

Deferred income taxes 28,898 32,132

Other assets -- 8,527

Separate account assets 679,890 708,240
----------- ----------

Total assets $5,651,511 $5,275,681
=========== ==========


-3-




AMERICAN ENTERPRISE LIFE INSURANCE COMPANY
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
(continued)

June 30, December 31,
LIABILITIES AND STOCKHOLDER'S EQUITY 2002 2001
(unaudited)
Liabilities:
Future policy benefits:

Fixed annuities $4,170,105 $3,765,679
Universal life-type insurance 7 3
Policy claims and other
policyholders' funds 12,676 2,286
Amounts due to brokers 202,309 225,127
Other liabilities 55,755 64,517
Separate account liabilities 679,890 708,240
----------- -----------

Total liabilities 5,120,742 4,765,852
----------- -----------

Stockholder's equity:
Capital stock, $150 par value per share;
100,000 shares authorized, 20,000 shares
issued and outstanding 3,000 3,000
Additional paid-in capital 341,872 341,872
Accumulated other comprehensive income (loss),
net of tax:
Net unrealized securities gains 40,690 13,021
Net unrealized derivative losses (17,458) (21,670)
----------- -----------
Total accumulated other comprehensive income (loss) 23,232 (8,649)
Retained earnings 162,665 173,606
----------- -----------

Total stockholder's equity 530,769 509,829
----------- -----------

Total liabilities and stockholder's equity $5,651,511 $5,275,681
=========== ===========


See accompanying notes.

-4-





AMERICAN ENTERPRISE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(In thousands)
(unaudited)
Three months ended
June 30,
2002 2001
Revenues:

Contractholder charges $ 1,740 $ 1,308
Mortality, expense risk and other fees 3,394 2,484
Net investment income 70,719 63,600
Net realized loss on investments (3,642) (66,257)
--------- ---------
Total revenues 72,211 1,135
--------- ---------
Benefits and expenses:
Interest credited on universal life-type
insurance and investment contracts 50,290 47,875
Amortization of deferred policy
acquisition costs 11,000 10,795
Other insurance and operating expenses 27,395 1,781
--------- ---------
Total benefits and expenses 88,685 60,451
--------- ---------

Loss before income tax benefit (16,474) (59,316)

Income tax benefit (5,752) (20,631)
--------- ---------

Net loss $(10,722) $(38,685)
========= ==========


See accompanying notes.

-5-




AMERICAN ENTERPRISE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(In thousands)
(unaudited)
Six months ended
June 30,
2002 2001
Revenues:

Contractholder charges $ 2,888 $ 3,054
Mortality, expense risk and other fees 6,813 4,683
Net investment income 139,850 133,060
Net realized loss on investments (3,560) (84,799)
---------- --------
Total revenues 145,991 55,998
---------- --------

Benefits and expenses:
Interest credited on universal life-type
insurance and investment contracts 98,995 90,348
Amortization of deferred policy
acquisition costs 20,706 22,950
Other insurance and operating expenses 43,312 13,640
---------- --------
Total benefits and expenses 163,013 126,938
---------- --------

Loss before income tax benefit (17,022) (70,940)

Income tax benefit (5,877) (24,618)
---------- --------

Net loss $(11,145) $(46,322)
========== ========

See accompanying notes.

-6-




AMERICAN ENTERPRISE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Six months ended
June 30,
2002 2001
Cash flows from operating activities:

Net loss $(11,145) $(46,322)

Adjustments to reconcile net loss to
net cash (used in) provided by operating activities:
Change in accrued investment income (2,716) 5,577
Change in other accounts receivable (23) (203)
Change in other assets 8,527 2,759
Change in deferred policy
acquisition costs, net (21,184) (8,748)
Change in policy claims and other
policyholders' funds 10,390 (5,859)
Deferred income taxes (13,727) (27,825)
Change in other liabilities (8,762) 19,033
Amortization of premium (accretion of discount), net 127 (172)
Net realized loss on investments 3,560 84,799
Other, net 5,794 6,908
--------- ---------

Net cash (used in) provided by operating activities $(29,159) $ 29,947
--------- ---------


-7-




AMERICAN ENTERPRISE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
(continued)
Six months ended
June 30,
2002 2001
Cash flows from investing activities:
Fixed maturities available-for-sale:

Purchases $(1,163,750) $(454,647)
Maturities, sinking fund payments and calls 242,841 152,741
Sales 470,898 280,650
Other investments:
Purchases (2,691) (5,054)
Sales 36,147 30,765
Change in amounts due from broker 41,646 (332)
Change in amounts due to broker (22,818) 19,840
------------ ----------

Net cash (used in) provided by investing activities (397,727) 23,963
------------ ----------
Cash flows from financing activities:
Activity related to universal life-type insurance
and investment contracts:
Considerations received 593,172 357,244
Surrenders and death benefits (287,734) (439,503)
Interest credited to account balances 98,995 90,348
------------ ----------

Net cash provided by financing activities 404,433 8,089
------------ ----------

Net (decrease) increase in cash and cash equivalents (22,453) 61,999

Cash and cash equivalents at beginning of period 260,214 34,852
------------ ----------

Cash and cash equivalents at end of period $ 237,761 $ 96,851
============ ==========


See accompanying notes.

-8-


AMERICAN ENTERPRISE LIFE INSURANCE COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2002
(In thousands)
(unaudited)

1. General

In the opinion of the management of American Enterprise Life Insurance
Company (the Company), the accompanying unaudited consolidated
financial statements contain all adjustments (consisting of normal
recurring adjustments) necessary to present fairly its balance sheet as
of June 30, 2002, statements of income for the three months and six
months ended June 30, 2002 and 2001 and statements of cash flows for
the six months ended June 30, 2002 and 2001. Certain prior year amounts
have been reclassified to conform to the current year's presentation.

American Enterprise Life Insurance Company (the Company) is a stock
life insurance company organized under the laws of the State of
Indiana. The Company is a wholly-owned subsidiary of IDS Life Insurance
Company (IDS Life) which is a wholly-owned subsidiary of American
Express Financial Corporation (AEFC). AEFC is a wholly-owned subsidiary
of American Express Company. The Company serves residents of 48 states.
American Enterprise REO 1, LLC is a wholly-owned subsidiary of the
Company.

2. Comprehensive Income

Total comprehensive income (loss) was $44,514 and $(19,692) for the
three months and $20,736 and $(1,669) for the six months ended June 30,
2002 and 2001, respectively.

3. Statements of cash flows

Cash paid for interest on borrowings totaled $nil and $18 for the six
months ended June 30, 2002, and 2001, respectively. Cash paid for
income taxes totaled $24,208 for the six months ended June 30, 2002
compared to cash received of $26,734 for the six months ended June 30,
2001.

-9-



AMERICAN ENTERPRISE LIFE INSURANCE COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands)
(unaudited)
(continued)


4. Commitments and contingencies

The Company had no commitments to fund mortgage loan investments in
the ordinary course of business at June 30, 2002.

The maximum amount of life insurance risk retained by the Company is
$750 on any policy insuring a single life and $1,500 on any policy
insuring a joint-life combination. Risk not retained is reinsured with
other life insurance companies, primarily on a yearly renewable term
basis. The Company retains all accidental death benefit and waiver of
premium risk.

A number of lawsuits involving insurance sales practices, alleged agent
misconduct, failure to properly supervise agents and other matters
relating to life insurance policies and annuity contracts have been
filed against life and health insurers in jurisdictions in which the
Company and its affiliates do business. The Company and its affiliates,
like other life and health insurers, are involved in such litigation.
IDS Life was a named defendant in three class action lawsuits of this
nature. The Company is a named defendant in one of the suits, Richard
W. and Elizabeth J. Thoresen v. American Express Financial Corporation,
American Centurion Life Assurance Company, American Enterprise Life
Insurance Company, American Partners Life Insurance Company, IDS Life
Insurance Company and IDS Life Insurance Company of New York which was
also commenced in Minnesota state court on October 13, 1998. These
class action lawsuits included allegations of improper insurance and
annuity sales practices including improper replacement of existing
annuity contracts and insurance policies, improper use of annuities to
fund tax deferred contributory retirement plans, alleged agent
misconduct, failure to properly supervise agents and other matters
relating to life insurance policies and annuity contracts.

In January 2000, AEFC and its subsidiaries reached an agreement in
principle to settle the three class action lawsuits, including the one
described above. It is expected the settlement will provide $215
million of benefits to more than two million participants in exchange
for a release by class members of all insurance and annuity market
conduct claims dating back to 1985.

-10-


AMERICAN ENTERPRISE LIFE INSURANCE COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands)
(unaudited)
(continued)


4. Commitments and contingencies (continued)

In August 2000, an action entitled Lesa Benacquisto, Daniel
Benacquisto, Richard Thoresen, Elizabeth Thoresen, Arnold Mork,
Isabella Mork, Ronald Melchert and Susan Melchert v. American Express
Financial Corporation, American Express Financial Advisors, American
Centurion Life Assurance Company, American Enterprise Life Insurance
Company, American Partners Life Insurance Company, IDS Life Insurance
Company and IDS Life Insurance Company of New York was commenced in the
United States District Court for the District of Minnesota. The
complaint put at issue various alleged sales practices and
misrepresentations and allegations of violations of federal laws.

In May 2001, the United States District Court for the District of
Minnesota and the District Court, Fourth Judicial District for the
State of Minnesota, Hennepin County entered orders approving the
settlement as tentatively reached in January 2000. Appeals were filed
in both federal and state court but subsequently dismissed by the
parties filing the appeals. The orders approving the settlement were
final as of September 24, 2001. Implementation of the settlement
commenced October 15, 2001.

Numerous individuals opted out of the settlement described above and
therefore did not release their claims against the AEFC and its
subsidiaries. Some of these class members who opted out were
represented by counsel and presented separate claims to the Company.
Most of their claims have been settled.

The outcome of any litigation or threatened litigation cannot be
predicted with any certainty. However, in the aggregate, the Company
does not consider any lawsuits in which it is named as a defendant to
have a material impact on the Company's financial position or operating
results.

-11-


MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

Results of Operations

Six Months Ended June 30, 2002 Compared to Six Months Ended June 30, 2001:

Consolidated net loss was $11 million for the six months ended June 30, 2002,
compared to $46 million in 2001. Loss before income taxes totaled $17 million in
the first six months of 2002, compared with $71 million in the first six months
of 2001. The change primarily reflects a net pre-tax loss of $85 million from
the write-down and sale of certain high-yield securities in the first six months
of 2001.

Premiums received totaled $651 million for the six months ended June 30, 2002,
compared to $433 million in 2001. The increase is primarily due to increased
sales of fixed annuities.

Contractholder charges decreased 5 percent to $2.9 million for the six months
ended June 30, 2002, compared with $3.1 million a year ago, due primarily to a
decline in fixed annuity surrenders and lapses.

Mortality, expense risk and other fees increased to $6.8 million for the six
months ended June 30, 2002 compared with $4.7 million a year ago. This was
primarily due to an increase in average separate account assets outstanding. The
Company receives a mortality and expense risk fee from the separate accounts.

Net investment income increased to $140 million for the six months ended
June 30, 2002 compared with $133 million a year ago. This increase was primarily
due to credit-related yield adjustments on fixed maturity investments in 2001
and higher average portfolio balances, partially offset by lower portfolio
rates.

Net realized loss on investments was $3.6 million for the six months ended June
30, 2002 compared to a net realized loss of $85 million a year ago. The 2001
loss was primarily due to the write-down and sale of certain high-yield
investments.

Total benefits and expenses were $163 million, an increase of 28 percent from a
year ago. The largest component of expenses, interest credited on universal-life
type insurance and investment contracts, increased 10 percent to $99 million.
This was primarily due to higher aggregate amounts of fixed annuities in force,
partially offset by a decrease in the rate of interest credited to annuity
contracts due to declining interest rates. The decreased interest rates also
resulted in a significant decrease in the market value of interest rate swaps,
reflected in the increase in Other insurance and operating expenses. The Company
enters into pay-fixed, receive-variable interest rate swaps to protect the
margin between interest rates earned on investments and the interest rates
credited to annuity contract holders (interest margins). The swaps are economic
hedges that are not designated for hedge accounting treatment under SFAS No.
133. If interest rates remain at current levels, the decrease in the value of
the interest rate swaps recognized currently will be approximately offset in the
future by increases in interest margins.

-12-


MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

Amortization of deferred policy acquisition costs (DACs) decreased to $21
million for the six months ended June 30, 2002, compared to $23 million a year
ago. The decline was due primarily to improved persistency of fixed deferred
annuity business.

IMPACT OF RECENT MARKET VOLATILITY ON RESULTS OF OPERATIONS

Various aspects of the Company's business are impacted by equity market levels
and other market-based events. Two areas in particular involve DAC and
structured investments. Each quarter management evaluates various factors, and
makes certain assumptions based on those factors, to determine the proper
amortization schedule for the Company's DAC, including mortality rates, product
persistency rates, maintenance expense levels, interest margins, and market
performance with respect to variable products. Changes in these factors can
affect management's assumptions in various ways. Depending on the direction and
magnitude of the changes they can increase or decrease DAC expense levels and
results of operations in any particular quarter. Similarly, the value of the
Company's structured investment portfolio is impacted by various market factors.
These investments include collateralized debt obligations and structured loan
trusts (backed by high-yield bonds and bank loans, respectively), which are held
by the Company through interests in special purpose entities. The carrying value
of these investments is based on cash flow projections, which are affected by
factors such as default rates, persistency of defaults, recovery rates and
interest rates, among others. The valuation of these investments assumes high
levels of defaults through 2002, relative to historical default rates.
Persistency or increases in these default rates could result in negative
adjustments to the market values of these investments in the future, which would
adversely impact results of operations. Conversely, a decline in the default
rates would benefit future results of operations.

Liquidity and Capital Resources

The liquidity requirements of the Company are met by funds provided by annuity
considerations, capital contributions, investment income, proceeds from sales of
investments as well as maturities and periodic repayments of investment
principal.

The primary uses of funds are policy benefits, commissions and operating
expenses and investment purchases.

The Company has an available line of credit with AEFC aggregating $50 million.
The line of credit is used strictly as a short-term source of funds. No
borrowings were outstanding under the agreement at June 30, 2002. The Company
also uses reverse repurchase agreements for short term liquidity needs. There
were no outstanding reverse repurchase agreements at June 30, 2002.


-13-


MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

At June 30, 2002, approximately 4 percent of the Company's investments in fixed
maturities were below investment grade bonds. These investments may be subject
to a higher degree of risk than the investment grade issues because of the
borrower's generally greater sensitivity to adverse economic conditions, such as
recession or increasing interest rates, and in certain instances, the lack of an
active secondary market. Expected returns on below investment grade bonds
reflect consideration of such factors. The Company has identified those fixed
maturities for which a decline in fair value is determined to be other than
temporary, and has written them down to fair value with a charge to earnings.

At June 30, 2002, the Company had a reserve for losses on mortgage loans of $8
million.

Forward-Looking Statements

Certain statements in the management's discussion and analysis of consolidated
financial condition and results of operations section of this Form 10-Q contain
forward-looking statements which are subject to risks and uncertainties that
could cause results to differ materially from such statements. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date on which they are made. The Company undertakes no
obligation to update publicly or revise any forward-looking statements.
Important factors that could cause actual results to differ materially from the
Company's forward-looking statements include, among other things, fluctuations
in the equity and interest rate environment and changes in the ability of
issuers of investment securities held by the Company to meet their debt
obligations, which could result in further losses in the Company's investment
portfolio.
-14-

MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

PART II - OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

Reference is made to Note 4 of the Notes to Consolidated
Financial Statements (unaudited) contained in the Report filed
on Form 10-Q for the quarterly period ended June 30, 2002.

Item 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

Not applicable.

Item 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not applicable.


Item 5. OTHER INFORMATION

Not applicable.

ITEM 6. EXHIBITS AND REPORT ON FORM 8-K

(a) Exhibits

3.1 Amendment and Restatement of Articles of Incorporation of
American Enterprise Life dated July 29, 1986, filed
electronically as Exhibit 6.1 to American Enterprise Life
Personal Portfolio Plus 2's Initial Registration Statement No.
33-54471, filed on or about July 5, 1994, is incorporated by
reference.

3.2 Amended By-laws of American Enterprise Life, filed electronically
as Exhibit 6.2 to American Enterprise Life Personal Portfolio
Plus 2's Initial Registration Statement No. 33-54471, filed on or
about July 5, 1994, is incorporated by reference.

-15-


3.3 Consent in writing in lieu of a meeting of the Board of Directors
of American Enterprise Life Insurance Company establishing the
American Enterprise MVA Account dated Aug. 18, 1999, filed
electronically as Exhibit 3.3 to Registrant's Initial
Registration Statement No. 333-86297, filed on or about Aug. 31,
1999, is incorporated by reference.

4.1 Form of Deferred Annuity Contract for the American Express(R)
Signature One Variable Annuity (form 240180), filed
electronically as Exhibit 4.1 to American Enterprise Variable
Annuity Account's Post-Effective Amendment No. 1 to Registration
Statement No. 333-85567 on form N-4, filed on or about Dec. 7,
1999, is incorporated by reference.

4.2 Form of Deferred Annuity Contract for the Wells Fargo
Advantage(SM) Variable Annuity (form 44209), filed electronically
as Exhibit 4.1 to American Enterprise Variable Annuity Account's
Pre-Effective Amendment No. 1 to Registration Statement No.
333-85567 on form N-4, filed on or about Nov. 4, 1999, is
incorporated by reference.

4.3 Form of Deferred Annuity Contract for the Wells Fargo
Advantage(SM) Builder Variable Annuity (form 44210), filed
electronically as Exhibit 4.2 to American Enterprise Variable
Annuity Account's Pre-Effective Amendment No. 1 to Registration
Statement No. 333-85567 on form N-4, filed on or about Nov. 4,
1999, is incorporated by reference.

4.4 Form of Deferred Annuity Contract for the American Express New
Solutions(SM) Variable Annuity (form 240343) filed electronically
As Exhibit 4.1 to American Enterprise Variable Annuity Account's
Pre-Effective Amendment No. 1 to Registration Statement No.
333-92297 on Form N-4, filed on or about Feb. 11, 2000, is
incorporated by reference.

4.5 Form of Deferred Annuity Contract for American Express Signature
Variable Annuity (R) (form 43431) filed electronically as Exhibit
4.1 to American Enterprise Variable Annuity Account's
Pre-Effective Amendment No. 1 to Registration Statement No.
333-74865 on form N-4, filed on or about Aug. 4, 1999, is
incorporated by reference.

-16-


PART II - OTHER INFORMATION (continued)

4.6 Form of Deferred Annuity Contract for the American Express(R)
Galaxy Premier Variable Annuity and the American Express Pinnacle
Variable Annuity(SM) (form 44170) filed electronically as Exhibit
4.1 to American Enterprise Variable Annuity Account's
Pre-Effective Amendment No. 1 to Registration Statement No.
333-82149, filed on or about Sept. 21, 1999, is incorporated by
reference.

4.7 Form of Deferred Annuity Contract for American Express
FlexChoice(SM) Variable Annuity contract Option L (form 271496)
filed electronically as Exhibit 4.1 to American Enterprise
Variable Annuity Account's Pre-Effective Amendment No. 1 to
Registration Statement No. 333-73958 on form N-4, filed on or
Feb. 20, 2002, is incorporated by reference.

4.8 Form of Deferred Annuity Contract for American Express
FlexChoice(SM) Variable Annuity contract Option C (form 271491)
filed electronically as Exhibit 4.2 to American Enterprise
Variable Annuity Account's Pre-Effective Amendment No. 1 to
Registration Statement No. 333-73958 on form N-4, filed on or
Feb. 20, 2002, is incorporated by reference.

4.9 Form of Enhanced Death Benefit Rider for the Wells Fargo
Advantage(SM) Variable Annuity, the Wells Fargo Advantage(SM)
Builder Variable Annuity and the American Express FlexChoice(SM)
Variable Annuity contracts (form 4213), filed electronically as
Exhibit 4.3 to American Enterprise Variable Annuity Account's
Pre-Effective Amendment No. 1 to Registration Statement No.
333-85567 on form N-4, filed on or about Nov. 4, 1999, is
incorporated by reference.

4.10 Form of Guaranteed Minimum Income Benefit Rider for the American
Express Signature Variable Annuity (R) and the American
Express(R) Signature One Variable Annuity (6% Accumulation
Benefit Base) (form 240186), filed electronically as Exhibit 4.2
to American Enterprise Variable Annuity Account's Post-Effective
Amendment No. 3 to Registration Statement No. 333-85567 on form
N-4, filed on or about Feb. 11, 2000, is incorporated by
reference.

4.11 Form of Guaranteed Minimum Income Benefit Rider for the American
Express New Solutions(SM) Variable Annuity (form 240350), filed
electronically as Exhibit 4.4 to American Enterprise Variable
Annuity Account's Pre-Effective Amendment No. 1 to Registration
Statement No. 333-92297 on Form N-4, filed on or about Feb. 11,
2000, is incorporated by reference.

-17-



PART II - OTHER INFORMATION (continued)

4.12 Form of Guaranteed Minimum Income Benefit Rider for the Wells
Fargo Advantage(SM) Variable Annuity, the Wells Fargo
Advantage(SM) Builder Variable Annuity and the American Express
FlexChoice(SM) Variable Annuity contracts (form 44214), filed
electronically as Exhibit 4.4 to American Enterprise Variable
Annuity Account's Pre-Effective Amendment No. 1 to Registration
Statement No. 333-85567 on form N-4, filed on or about Nov. 4,
1999, is incorporated by reference.

4.13 Form of 5% Accumulation Death Benefit Rider for the American
Express Signature Variable Annuity(R) and the American Express
Signature One Variable Annuity(SM) (form 240183), filed
electronically as Exhibit 4.3 to American Enterprise Variable
Annuity Account's Post-Effective Amendment No. 1 to Registration
Statement No. 333-85567 on form N-4, filed on or about Dec. 8,
1999, is incorporated by reference.


4.14 Form of Value Option Return of Purchase Payment Death Benefit
Rider for the American Express (R) Signature One Variable Annuity
(form 240182), filed electronically as Exhibit 4.11 to
Registrant's Post-Effective Amendment No. 6 to Registration
Statement No. 333-86297 on form S-1, filed on or about May 1,
2000, is incorporated by reference.

4.15 Form of 8% Performance Credit Rider for the American Express
Signature Variable Annuity(R) and the American Express(R)
Signature One Variable Annuity (form 240187), filed
electronically as Exhibit 4.4 to American Enterprise Variable
Annuity Account's Post-Effective Amendment No. 2 to Registration
Statement No. 333-85567 on form N-4, filed on or about Dec. 30,
1999, is incorporated by reference.

4.16 Form of Performance Credit Rider for the American Express New
Solutions(SM) Variable Annuity (form 240349), filed
electronically as Exhibit 4.2 to American Enterprise Variable
Annuity Account's Pre-Effective Amendment No. 1 to Registration
Statement No. 333-92297 on Form N-4, filed on or about Feb. 11,
2000, is incorporated by reference.

-18-


PART II - OTHER INFORMATION (continued)

4.17 Form of Benefit Protector(SM) Death Benefit Rider for the Wells
Fargo Advantage(SM) Variable Annuity, the Wells Fargo
Advantage(SM) Builder Variable Annuity, the American Express New
Solutions (SM) Variable Annuity, the American Express(R) Galaxy
Premier Variable Annuity, the American Express Pinnacle Variable
Annuity(SM), the American Express(R) Signature One Variable
Annuity and the American Express FlexChoice(SM) Variable Annuity
contracts (form 271155), filed electronically as Exhibit 4.15 to
American Znterprise Variable Annuity Account's Post-Effective
Amendment No. 6 to Registration Statement No. 333-85567 on form
N-4, filed on or about March 1, 2001, is incorporated by
reference.

4.18 Form of Benefit Protector(SM) Plus Death Benefit Rider for the
Wells Fargo Advantage(SM) Variable Annuity, the Wells Fargo
Advantage(SM) Builder Variable Annuity, the American Express New
Solutions (SM) Variable Annuity, the American Express(R) Galaxy
Premier Variable Annuity, the American Express Pinnacle Variable
Annuity(SM), the American Express(R) Signature One Variable
Annuity and the American Express FlexChoice(SM) Variable Annuity
contracts (form 271156), filed electronically as Exhibit 4.16 to
American Enterprise Variable Annuity Account's Post-Effective
Amendment No. 6 to Registration Statement No. 333-85567 on form
N-4, filed on or about March 1, 2001, is incorporated by
reference.

4.19 Form of Maximum Anniversary Value Death Benefit Rider for the
American Express New Solutions (SM) Variable Annuity (form
240346), filed electronically as Exhibit 4.3 to American
Enterprise Variable Annuity Account's Pre-Effective Amendment No.
1 to Registration Statement No. 333-92297, filed on or about
February 11, 2000, is incorporated by reference.

4.20 Form of Roth IRA Endorsement for the Wells Fargo Advantage(SM)
Variable Annuity, the Wells Fargo Advantage(SM) Builder Variable
Annuity, the American Express Signature Variable Annuity(R), the
American Express(R) Signature One Variable Annuity, the American
Express New Solutions (SM) Variable Annuity, the American
Express(R) Galaxy Premier Variable Annuity, the American Express
Pinnacle Variable Annuity(SM) and the American Express
FlexChoice(SM) Variable Annuity contracts (form 43094), filed
electronically as Exhibit 4.2 to American Enterprise Variable
Annuity Account's Pre-Effective Amendment No. 1 to Registration
Statement No. 333-74865 on form N-4, filed on or about Aug. 4,
1999, incorporated by reference.

-19-


PART II - OTHER INFORMATION (continued)

4.21 Form of SEP-IRA for the Wells Fargo Advantage(SM) Variable
Annuity, the Wells Fargo Advantage(SM) Builder Variable Annuity,
the American Express (R) Signature One Variable Annuity, the
American Express(R) Galaxy Premier Variable Annuity, and the
American Express Pinnacle Variable Annuity(SM) (form 43412),
filed electronically as Exhibit 4.3 to American Enterprise
Variable Annuity Account's Pre-Effective Amendment No. 1 to
Registration Statement No. 333-72777 on form N-4, filed on or
about July 8, 1999, is incorporated by reference.

4.22 Form of SEP-IRA for the American Express Signature Variable
Annuity(R), the American Express New Solutions(SM) Variable
Annuity and the American Express FlexChoice(SM) Variable Annuity
contracts (form 43433) filed electronically as Exhibit 4.3 to
American Enterprise Variable Annuity Account's Pre-Effective
Amendment No. 1 to Registration Statement No. 333-74865 on form
N-4, filed on or about Aug. 4, 1999, is incorporated by
reference.

4.23 Form of Disability Waiver of Withdrawal Charges Rider for the
Wells Fargo Advantage(SM) Variable Annuity, the Wells Fargo
Advantage(SM) Builder Variable Annuity and the American Express
FlexChoice(SM) Variable Annuity contracts (form 44215), filed
electronically as Exhibit 4.5 to American Enterprise Variable
Annuity Account's Pre-Effective Amendment No. 1 to Registration
Statement No. 333-85567 on form N-4, filed on or about Nov. 4,
1999, is incorporated by reference.

4.24 Form of Unemployment Waiver of Withdrawal Charges Rider for the
Wells Fargo Advantage(SM) Variable Annuity and the Wells Fargo
Advantage(SM) Builder Variable Annuity (form 44216), to American
Enterprise Variable Annuity Account's Pre-Effective Amendment No.
1 to Registration Statement No. 333-85567 on form N-4, filed on
or about Nov. 4, 1999, is incorporated by reference.

4.25 Form of TSA Endorsement for the Wells Fargo Advantage(SM)
Variable Annuity, the Wells Fargo Advantage(SM) Builder Variable
Annuity, the American Express Signature Variable Annuity(R) and
the American Express FlexChoice(SM) Variable Annuity contracts
(form 43413), filed electronically as Exhibit 4.4 to American
Enterprise Variable Annuity Account's Pre-Effective Amendment No.
1 to Registration Statement No. 333-72777 on form N-4, filed on
or about July 8, 1999, is incorporated by reference.

-20-



PART II - OTHER INFORMATION (continued)

(b) Reports on Form 8-K.

No reports on Form 8-K were required to be filed by the Company
for the six months ended June 30, 2002.

Item 7. Exhibits 99.1 and 99.2

Certification pursuant to 18 U.S.C. Section 1350, see the attached
certification forms as as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.

-21-


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

REGISTRANT AMERICAN ENTERPRISE LIFE
INSURANCE COMPANY


BY /s/ Philip C. Wentzel
-----------------------
NAME AND TITLE Philip C. Wentzel
Vice President and Controller



BY /s/ Carol Holton
------------------------
NAME AND TITLE Carol Holton
Chief Executive Officer

DATE August 13, 2002


-22-