# EDGAR Filing Document

**Accession Number:** 0001068663
**File Stem:** 0001104659-23-024783
**Filing Date:** 2023-2
**Character Count:** 651630
**Document Hash:** 47ba42c64ad99b46942b56b3250e392c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-024783.hdr.sgml**: 20230223

**ACCESSION NUMBER**: 0001104659-23-024783

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 46

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230223

**DATE AS OF CHANGE**: 20230223

**EFFECTIVENESS DATE**: 20230223

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** VICTORY VARIABLE INSURANCE FUNDS
- **CENTRAL INDEX KEY:** 0001068663
- **IRS NUMBER:** 311620154
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-08979
- **FILM NUMBER:** 23660140

**BUSINESS ADDRESS:**
- **STREET 1:** 4900 TIEDEMAN ROAD
- **CITY:** BROOKLYN
- **STATE:** OH
- **ZIP:** 44144
- **BUSINESS PHONE:** 8005393863

**MAIL ADDRESS:**
- **STREET 1:** 4900 TIEDEMAN ROAD
- **CITY:** BROOKLYN
- **STATE:** OH
- **ZIP:** 44144

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** VICTORY VARIABLE FUNDS
- **DATE OF NAME CHANGE:** 19980819

## Series and Classes Contracts Data

### Victory RS Large Cap Alpha VIP Series (Series ID: S000053584)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000168420 | Class I      |  |

### Victory RS Small Cap Growth Equity VIP Series (Series ID: S000053585)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000168421 | Class I      |  |

### Victory RS International VIP Series (Series ID: S000053586)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000168422 | Class I      |  |

### Victory Sophus Emerging Markets VIP Series (Series ID: S000053587)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000168423 | Class I      |  |

### Victory High Yield VIP Series (Series ID: S000053590)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000168426 | Class I      |  |

### Victory 500 Index VIP Series (Series ID: S000053591)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000168427 | Class I      |  |

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

**FORM N-CSR**

**CERTIFIED SHAREHOLDER REPORT OF REGISTERED**

**MANAGEMENT INVESTMENT COMPANIES**

Investment Company Act file number: 811-08979

Victory Variable Insurance Funds

(Exact name of registrant as specified in charter)

<u>4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio</u> <u>44144</u> <br> (Address of principal executive offices) (Zip code)

Citi Fund Services Ohio, Inc., 4400 Easton Commons, Suite 200, Columbus, OH 43219

(Name and address of agent for service)

Registrant's telephone number, including area code: <u>800-539-3863</u>

Date of fiscal year end: <u>December 31</u>

Date of reporting period: <u>December 31, 2022</u>

**Item 1. Reports to Stockholders.**

![](j2325452_aa001.jpg)

December 31, 2022

Annual Report

Victory Variable Insurance Funds

Victory Sophus Emerging Markets VIP Series

------

vcm.com

News, Information And Education 24 Hours A Day, 7 Days A Week

The Victory Capital website gives fund shareholders, prospective shareholders, and investment professionals a convenient way to access fund information, get guidance, and track fund performance anywhere they can access the Internet. The site includes:

• Detailed performance records

• Daily share prices

• The latest fund news

• Investment resources to help you become a better investor

• A section dedicated to investment professionals

Whether you're a potential investor searching for the fund that matches your investment philosophy, a seasoned investor interested in planning tools, or an investment professional, vcm.com has what you seek. Visit us anytime. We're always open.

------

*Victory Variable Insurance Funds*

*Table of Contents*

---

| | |
|:---|:---|
| **Shareholder Letter (Unaudited)** | **3** |
| **Manager's Commentary (Unaudited)** | **5** |
| **Investment Overview (Unaudited)** | **8** |
| **Investment Objective & Portfolio Holdings<br>(Unaudited)** | **9** |
| **Schedule of Portfolio Investments** | **10** |
| **Financial Statements** | **Financial Statements** |
| *Statement of Assets and Liabilities* | **17** |
| *Statement of Operations* | **18** |
| *Statements of Changes in Net Assets* | **19** |
| *Financial Highlights* | **20** |
| **Notes to Financial Statements** | **21** |
| **Report of Independent Registered Public <br>Accounting Firm** | **29** |
| **Supplemental Information (Unaudited)** | **Supplemental Information (Unaudited)** |
| *Trustee and Officer Information* | **30** |
| *Proxy Voting and Portfolio Holdings Information* | **33** |
| *Expense Example* | **33** |
| *Additional Federal Income Tax Information* | **34** |
| *Advisory Contract Renewal* | **35** |
| *Privacy Policy (inside back cover)* |  |

---

------

*The Fund is distributed by Victory Capital Services, Inc. Victory Capital Management Inc. is the investment adviser to the Fund and receives fees from the Fund for performing services for the Fund.*

*This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus of the Fund.*

*For additional information about any Victory Fund, including fees, expenses, and risks, view our prospectus online at vcm.com or call 800-539-3863. Read it carefully before you invest or send money.*

*The information in this report is based on data obtained from recognized services and sources and is believed to be reliable. Any opinions, projections, or recommendations in this report are subject to change without notice and are not intended as individual investment advice. Past investment performance of the Fund markets or securities mentioned herein should not be considered to be indicative of future results.*

***• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE***

![](j2325452_ba002.jpg)

*Call Victory at:*

*800-539-FUND* (800-539-3863)

*Visit our website at:*

*vcm.com*

------

*Victory Funds Letter to Shareholders<br> (Unaudited)*

Dear Shareholder,

Our most recent annual reporting period ending December 31, 2022, was filled with epic challenges. Even the most seasoned investors who have been through more than one economic cycle have not witnessed financial markets like this in a long time, if ever.

Consider what transpired and how the investing backdrop changed so abruptly. The year began well enough with ample liquidity and an encouraging outlook for corporate profits. But that optimism faded early and was punctuated by the start of a terrible war in Eastern Europe. This fueled rising energy prices and intensified an inflation problem that was proving to be more than "transitory."

The inflation data was particularly troublesome and surprised many with some of the highest readings since the 1970s. In response, the U.S. Federal Reserve (the "Fed") pivoted to a far more restrictive monetary policy than anyone anticipated. Over the course of 2022, the Fed boosted the Fed funds interest rate on seven different occasions by a total of 4.5 percentage points. And if that wasn't enough, zero-Covid policies in China further exacerbated supply chain issues and dampened the outlook for global growth.

As one might expect, all of these obstacles ratcheted up volatility across financial markets. Broad market stock indices pulled back substantially around the world. The S&P 500<sup>®</sup> Index, the bell-weather proxy for our domestic stock market, delivered a negative total return of more than 18% for our annual reporting period.

Perhaps what made 2022 even more difficult was the performance of fixed income markets, which normally are considered a safe haven in times of equity turmoil. But not this past year. In fact, the Bloomberg US Aggregate Bond Index—a proxy for a diversified fixed income portfolio and one that many investors and institutions follow closely—delivered a negative total return of approximately 13%, its worst annual performance since the 1970s. That's not exactly the offset to equity performance that many investors were expecting from bonds.

It was a tough year, and we fully acknowledge that the steady drumbeat of bad news and bouts of stomach-churning volatility can take a toll on investors' psyche. Nobody likes opening their account statements during declining markets; and even when markets snap back sharply (as happened this past July and October), investors often wonder if they have missed an opportunity.

Through all of the challenges in our most recent annual reporting period, we are reminded of two enduring realities: 1) financial markets are dynamic and apt to change abruptly; 2) it's vital that we remain calm and rational whenever faced with those inevitable bouts of turmoil.

Fortunately, we think that investors can take comfort knowing that all of our independent investment franchises have experience managing portfolios through a wide variety of market environments. Our investment professionals remain calm during turbulent financial markets, and we think it's imperative that investors do the same.

------

We still believe that a long-term plan, a well-diversified portfolio across asset classes and investment types, and a clear understanding of individual risk tolerances are the key ingredients for staying the course and progressing on investment goals. Moreover, all our investment professionals continually monitor the environment and work hard to position portfolios opportunistically no matter what the markets bring. Remember, turmoil can also create opportunity.

On the following pages you will find information relating to your Victory Funds investment. If you have any questions, we encourage you to contact your financial advisor. If you invest with us directly, you may call 800-539-3863 or visit our website at vcm.com.

From all of us here at Victory Capital, thank you for your ongoing confidence and for letting us help you work toward your investment goals.

![](j2325452_ba003.jpg)

**Christopher K. Dyer, CFA**

*President,*

*Victory Funds*

------

Victory Sophus Emerging Markets VIP Series

**Managers' Commentary** <br>(Unaudited)

**What were the market conditions during the reporting period?**

Emerging markets, as measured by the MSCI Emerging Markets Index (the "Index"), underperformed developed markets in 2022, returning -20.1%, versus the MSCI World Index and the S&P 500<sup>®</sup> Index, which returned -18.4% and -18.1%, respectively.

Latin America ("LatAm") outperformed all regions globally in 2022, gaining 8.9%, driven by valuations and terms of trade. After a period of underperformance in 2021, LatAm benefited from higher commodity prices due to the war in Ukraine in the first quarter of 2022 and sustained that strength throughout the year. Chile (+19.4%) and Brazil (+14.2%) outperformed other emerging markets significantly, both benefiting from a positive commodity cycle and diligent monetary policies deployed to contain inflation. Politics continued to play a significant role in 2022. LatAm is now almost entirely ruled by leftist governments (Ecuador is the main exception). However, few markets have emerged from this "pink" wave unscathed, with Brazil and Peru the most recent to struggle from related uncertainties: seemingly free reign over fiscal accounts and a failed coup respectively. Overall, Brazil struggled to digest mounting fiscal uncertainties in response to proposals by the incoming Lula Administration which include: the approval of the Spending Bill (which raised the amount exempted from the spending ceiling) by a wide margin in Congress, the appointment of former Sao Paulo Mayor Fernando Haddad to the position of Finance Minister, and the unexpected changing of the State Owned Enterprise legislation in a "rushed" session, all of which were received negatively by markets towards the end of the year.

Asia, down 21.1%, was perhaps the most volatile region in the period, whipsawed by news in China, which happens to be the largest part of the Index, accounting for over 30% of the emerging markets benchmark. China was one of the worst-performing markets in emerging markets overall in 2022, down 21.9%. After underperforming for the first four months of the year, China rallied hard beginning in mid-May and carried through to the end of June, on expectations of re-opening and de-regulation. After a short, sharp rally the market rolled over again on geopolitical tension, regulation, threats of further decoupling, real estate defaults, a zero-COVID-19 policy, etc. which all weighed heavily on investor sentiment, in particular that of foreign flows. Then in November alone, China advanced 30% after announcing its COVID-19 policy recalibration and housing market stabilization measures. However, economic data from China was effectively weak throughout the year, as were foreign investor flows. Both points matter and look set to turn positive in 2023.

China is currently trading on roughly 9X CAPE (Cyclically Adjusted Price-to-Earnings Ratio) versus a longer-term average of 11X 2023 earnings, well below historical valuations. President Xi expressed his concern about the present situation: growth is subpar, confidence is low, and his party's credibility has been dented. Xi indicated that he will will prioritize economic recovery, consumption, and the property market in equal measure. For the first time since 2019, domestic macro policies and COVID-19 management are aligned to support a growth recovery. ASEAN markets (Association of Southeast Asian Nations) witnessed historically high inflows in 2022. Thailand, which returned 5.0%, presents a compelling setup heading into next year, as the biggest beneficiary globally of a fall in freight rates and oil and the comeback of Asian tourism. The Philippines and Indonesia remain more defensive options in the event of lower world trade volume growth.

------

Victory Sophus Emerging Markets VIP Series

**Managers' Commentary** (continued)

Russia's invasion of Ukraine drove underperformance in EEMEA (Europe, the Middle East, and Africa), down 28.3% for the year. Russia faced an onslaught of sanctions from a united West, with enormous economic implications. After an extended period of market closure, Russian securities were effectively removed from major indices and valued at zero. While local markets have resumed trading activity, they remain virtually closed to foreign investors of "unfriendly" nations. The war in Ukraine drove inflationary pressure and rising account imbalances (for some), alongside sharply tightening financial conditions in core markets across the region. Turkey continues to make new highs; the best-performing market globally, up 90.4% in 2022. However, this rally has been fueled by domestic investors' search for real returns, which makes its sustainability questionable.

The MENA (the Middle East and North Africa) region got off to a strong start in 2022 with the war in Ukraine sparking higher energy prices driving higher growth in the region. However, the Gulf markets sold off in profit taking in the last part of the year. Saudi Arabia was one of the worst performing emerging markets in the fourth quarter, weighed down by cheaper oil and a weaker U.S. dollar. While the underlying vulnerabilities remain, MENA, and Saudi Arabia in particular, head into the new year with confidence high, inflation low, and activity still building momentum, backed by strong public finances, falling debt, and a trade-driven account surplus.

**How did Victory Sophus Emerging Markets VIP Series (the "Fund") perform during the reporting period?**

The Fund returned -22.46% for the fiscal year ended December 31, 2022, underperforming the Index, which returned -20.09% for the reporting period.

**What strategies did you employ during the reporting period?**

We employ a disciplined, bottom-up approach utilizing both quantitative and fundamental processes to invest in companies that we believe have the potential for strong and sustainable earnings growth at attractive valuations, with revisions as the catalyst. By investing in companies with these characteristics, coupled with our risk-managed approach, we seek to provide consistent excess returns over time.

Stock selection in the Energy sector was the largest detractor from performance overall in 2022, given swift sanctions imposed by the West upon Russian equities following its invasion of Ukraine on February 24th. Stock selection in the Utilities sector was another significant detractor from performance, as a result of both poor performers we held, like China Longyuan Power Group Corp., Ltd., and to strong performers we did not own, particularly those in the Indian market.

From a country perspective, Russia and India were the two largest detractors from performance in 2022; the former, due to negative stock selection and our slightly overweight position compared to the Index as a result of heavy pressure imposed by the West in response to the invasion of Ukraine. Consequently, Russian equities (four were held in this portfolio) became uninvestable, and all were removed from the Index due to liquidity issues. For India, negative stock selection detracted from performance, due to both poor performers which we owned (e.g., Infosys) and strong performers which we did not own (e.g., Reliance Industries).

------

Victory Sophus Emerging Markets VIP Series

**Managers' Commentary** (continued)

China also detracted from performance in the full year, as a result of more defensive positioning heading into the most recent November rally, best illustrated by holdings such as pharmaceutical company Wuxi Biologics Cayman, Inc.; Tongwei Solar, a dominant solar products manufacturer in the global new-energy space; China Longyuan Power Group Corp., Ltd., the largest wind-farm operator in Asia; and IT service provider Chinasoft International Ltd. We reacted methodically and reduced risk exposure within the portfolio to capture alpha amidst this rally. We saw improving macroeconomic factors and fundamentals around China's exit from zero-COVID-19, supportive efforts implemented for the property market, and President Xi setting out a more pro-growth tone for 2023.

The most positive sector contributor to performance in the period was Communication Services, driven by stock selection, namely our position in JYP Entertainment Corp., as well as our moderate underweight sector position more broadly relative to the Index. On a country basis, the most positive contribution came from Greece, due to our moderate overweight position compared to the Index, thanks to holdings such as Mytilineos SA and National Bank of Greece, which benefited from the economic turnaround as tourist arrivals breached new highs helping boost the positive current account and earnings.

------

Victory Sophus Emerging Markets VIP Series

**Investment Overview**<br> (Unaudited)

**Average Annual Total Return**

*Year Ended December 31, 2022*

---

| | | |
|:---|:---|:---|
| | **Class I** | |
| **INCEPTION DATE** | *10/17/94* |  |
|  | **Net Asset Value** | **MSCI Emerging Markets Index<sup>1</sup>** |
| *One Year* | *–22.46%* | *–20.09%* |
| *Five Year* | *–2.99%* | *–1.40%* |
| *Ten Year* | *1.05%* | *1.44%* |

---

***The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit vcm.com.***

*Total return measures the price change in a share assuming the reinvestment of all net investment income and realized capital gain distributions, if any. The total returns quoted do not reflect adjustments made to the enclosed financial statements in accordance with U.S. Generally Accepted Accounting Principles or the deduction of taxes that a shareholder would pay on net investment income and realized capital gain distributions, including reinvested distributions, or redemptions of shares. The total return figures set forth above include all waivers of fees. Without such fee waivers, the total returns would have been lower. Total returns do not reflect the effects of charges deducted pursuant to the terms of The Guardian Insurance & Annuity Company, Inc.'s variable contracts. Inclusion of such charges would reduce the total returns for all periods shown.*

**Victory Sophus Emerging Markets VIP Series — Growth of $10,000**

![](j2325452_bc004.jpg)

*<sup>1</sup>The unmanaged MSCI Emerging Markets Index is a free-float-adjusted market capitalization index designed to measure equity market performance in the global emerging markets. The index reflects the reinvestment of dividends paid on the stocks constituting the index, net of withholding taxes. This index does not include the effect of sales charges, commissions, expenses, or taxes, is not representative of the Fund, and it is not possible to invest directly in an index.*

*The graph reflects investment of growth of a hypothetical $10,000 investment in the Fund.*

*The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares.*

**Past performance is not indicative of future results.**

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| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory Sophus Emerging Markets VIP Series** | December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Investment Objective and Portfolio Holdings:**

The Fund seeks to provide long-term capital appreciation.

**Top 10 Holdings\*:**

*December 31, 2022*

*(% of Net Assets)*

---

| | |
|:---|:---|
| *Taiwan Semiconductor Manufacturing Co. Ltd.* | *7.0%* |
| *Tencent Holdings Ltd.* | *3.8%* |
| *Samsung Electronics Co. Ltd.* | *3.7%* |
| *Alibaba Group Holding Ltd.* | *3.1%* |
| *ICICI Bank Ltd., ADR* | *2.7%* |
| *JD.com, Inc., Class A* | *2.3%* |
| *Meituan, Class B* | *1.8%* |
| *Larsen & Toubro Ltd.* | *1.8%* |
| *Pinduoduo, Inc.* | *1.5%* |
| *Mahindra & Mahindra Ltd.* | *1.4%* |

---

**Sector Allocation\*:**

*December 31, 2022*

*(% of Net Assets)*

![](j2325452_bc005.jpg)

\* Does not include futures contracts, money market instruments, and short-term investments purchased with cash collateral from securities loaned.

Percentages are of the net assets of the Fund and may not equal 100%.

Refer to the Schedule of Portfolio Investments for a complete list of securities.

------

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| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory Sophus Emerging Markets VIP Series** | **Schedule of Portfolio Investments**<br> December 31, 2022 |

---

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| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Common Stocks (98.6%)** | **Common Stocks (98.6%)** | **Common Stocks (98.6%)** |
| **Brazil (5.3%):** | **Brazil (5.3%):** | **Brazil (5.3%):** |
| **Consumer Discretionary (1.1%):** | **Consumer Discretionary (1.1%):** | **Consumer Discretionary (1.1%):** |
| Grupo SBF SA | 27713 | $67110 |
| Lojas Renner SA | 24800 | 96131 |
| Vibra Energia SA | 42181 | 123688 |
|  |  | 286929 |
| **Consumer Staples (1.0%):** | **Consumer Staples (1.0%):** | **Consumer Staples (1.0%):** |
| Sao Martinho SA | 24200 | 121598 |
| Sendas Distribuidora SA | 39072 | 144401 |
|  |  | 265999 |
| **Energy (0.6%):** | **Energy (0.6%):** | **Energy (0.6%):** |
| Petroleo Brasileiro SA, ADR | 13823 | 147215 |
| **Financials (1.0%):** | **Financials (1.0%):** | **Financials (1.0%):** |
| Itau Unibanco Holding SA, ADR | 53537 | 252159 |
| **Health Care (0.6%):** | **Health Care (0.6%):** | **Health Care (0.6%):** |
| Hypera SA | 20000 | 171513 |
| **Industrials (0.2%):** | **Industrials (0.2%):** | **Industrials (0.2%):** |
| SIMPAR SA | 45972 | 58890 |
| **Materials (0.4%):** | **Materials (0.4%):** | **Materials (0.4%):** |
| Gerdau SA, Preference Shares | 21900 | 120392 |
| **Real Estate (0.4%):** | **Real Estate (0.4%):** | **Real Estate (0.4%):** |
| Multiplan Empreendimentos Imobiliarios SA | 22900 | 94895 |
|  |  | 1397992 |
| **Canada (0.5%):** | **Canada (0.5%):** | **Canada (0.5%):** |
| **Energy (0.5%):** | **Energy (0.5%):** | **Energy (0.5%):** |
| Parex Resources, Inc. | 8431 | 125487 |
| **Chile (0.0%): (a)** | **Chile (0.0%): (a)** | **Chile (0.0%): (a)** |
| **Financials (0.0%):** | **Financials (0.0%):** | **Financials (0.0%):** |
| Banco de Credito e Inversiones SA | 1 | 29 |
| **China (32.1%):** | **China (32.1%):** | **China (32.1%):** |
| **Communication Services (4.7%):** | **Communication Services (4.7%):** | **Communication Services (4.7%):** |
| Baidu, Inc., Class A (b) | 15784 | 225105 |
| Tencent Holdings Ltd. | 23530 | 997738 |
|  |  | 1222843 |
| **Consumer Discretionary (11.2%):** | **Consumer Discretionary (11.2%):** | **Consumer Discretionary (11.2%):** |
| Alibaba Group Holding Ltd. (b) | 74848 | 821348 |
| BYD Co. Ltd., Class H | 10500 | 257622 |
| Fuyao Glass Industry Group Co. Ltd., Class A | 27400 | 137976 |
| Hisense Home Appliances Group Co. Ltd., Class A | 72500 | 137095 |
| JD.com, Inc., Class A | 21306 | 594826 |

---

*See notes to financial statements.*

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| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory Sophus Emerging Markets VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

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| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| Meituan, Class B (b) (c) | 21400 | $| 474162 |
| Pinduoduo, Inc., ADR (b) | 4782 |  | 389972 |
| Yadea Group Holdings Ltd. (c) | 74000 |  | 123216 |
|  |  |  | 2936217 |
| **Consumer Staples (2.5%):** | **Consumer Staples (2.5%):** | **Consumer Staples (2.5%):** | **Consumer Staples (2.5%):** |
| Chacha Food Co. Ltd., Class A | 26500 |  | 190203 |
| Chenguang Biotech Group Co. Ltd., Class A | 58000 |  | 147612 |
| Inner Mongolia Yili Industrial Group Co. Ltd., Class A | 34100 |  | 151641 |
| Tongwei Co. Ltd., Class A | 27700 |  | 153320 |
|  |  |  | 642776 |
| **Energy (1.2%):** | **Energy (1.2%):** | **Energy (1.2%):** | **Energy (1.2%):** |
| PetroChina Co. Ltd., Class H | 680000 |  | 310637 |
| **Financials (3.2%):** | **Financials (3.2%):** | **Financials (3.2%):** | **Financials (3.2%):** |
| China Merchants Bank Co. Ltd., Class H | 39500 |  | 218600 |
| CITIC Securities Co. Ltd., Class A | 45200 |  | 129164 |
| Industrial & Commercial Bank of China Ltd., Class H | 655000 |  | 335962 |
| PICC Property & Casualty Co. Ltd., Class H | 170000 |  | 160744 |
|  |  |  | 844470 |
| **Health Care (2.8%):** | **Health Care (2.8%):** | **Health Care (2.8%):** | **Health Care (2.8%):** |
| CSPC Pharmaceutical Group Ltd. | 224000 |  | 233214 |
| Hygeia Healthcare Holdings Co. Ltd. (b) (c) | 27000 |  | 192650 |
| Pharmaron Beijing Co. Ltd., Class H (c) | 17700 |  | 121630 |
| Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A | 4400 |  | 199544 |
|  |  |  | 747038 |
| **Industrials (1.2%):** | **Industrials (1.2%):** | **Industrials (1.2%):** | **Industrials (1.2%):** |
| China Railway Group Ltd., Class H | 323000 |  | 169612 |
| Xinte Energy Co. Ltd., Class H | 75600 |  | 139341 |
|  |  |  | 308953 |
| **Information Technology (1.8%):** | **Information Technology (1.8%):** | **Information Technology (1.8%):** | **Information Technology (1.8%):** |
| Glodon Co. Ltd., Class A | 21700 |  | 186767 |
| Luxshare Precision Industry Co. Ltd., Class A | 37800 |  | 172240 |
| WUS Printed Circuit Kunshan Co. Ltd., Class A | 68320 |  | 116827 |
|  |  |  | 475834 |
| **Materials (1.8%):** | **Materials (1.8%):** | **Materials (1.8%):** | **Materials (1.8%):** |
| Shandong Nanshan Aluminum Co. Ltd., Class A | 316600 |  | 148482 |
| Tianqi Lithium Corp., Class A (b) | 11400 |  | 129298 |
| Wanhua Chemical Group Co. Ltd., Class A | 14300 |  | 190141 |
|  |  |  | 467921 |
| **Real Estate (1.1%):** | **Real Estate (1.1%):** | **Real Estate (1.1%):** | **Real Estate (1.1%):** |
| Longfor Group Holdings Ltd. (c) | 56500 |  | 173870 |
| Seazen Group Ltd. (b) | 288000 |  | 105415 |
|  |  |  | 279285 |

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*See notes to financial statements.*

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| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory Sophus Emerging Markets VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

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| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Utilities (0.6%):** | **Utilities (0.6%):** | **Utilities (0.6%):** |
| China Longyuan Power Group Corp. Ltd., Class H | 129000 | $156820 |
|  |  | 8392794 |
| **Greece (1.8%):** | **Greece (1.8%):** | **Greece (1.8%):** |
| **Financials (0.7%):** | **Financials (0.7%):** | **Financials (0.7%):** |
| National Bank of Greece SA (b) | 46204 | 185256 |
| **Industrials (1.1%):** | **Industrials (1.1%):** | **Industrials (1.1%):** |
| Mytilineos SA | 12882 | 279830 |
|  |  | 465086 |
| **Hong Kong (1.5%):** | **Hong Kong (1.5%):** | **Hong Kong (1.5%):** |
| **Consumer Discretionary (0.6%):** | **Consumer Discretionary (0.6%):** | **Consumer Discretionary (0.6%):** |
| Bosideng International Holdings Ltd. | 362000 | 171551 |
| **Real Estate (0.9%):** | **Real Estate (0.9%):** | **Real Estate (0.9%):** |
| China Resources Land Ltd. | 50000 | 227482 |
|  |  | 399033 |
| **India (14.3%):** | **India (14.3%):** | **India (14.3%):** |
| **Consumer Discretionary (1.9%):** | **Consumer Discretionary (1.9%):** | **Consumer Discretionary (1.9%):** |
| Mahindra & Mahindra Ltd. | 24622 | 370700 |
| Raymond Ltd. | 6459 | 114635 |
|  |  | 485335 |
| **Consumer Staples (1.5%):** | **Consumer Staples (1.5%):** | **Consumer Staples (1.5%):** |
| Dabur India Ltd. | 24804 | 168060 |
| Varun Beverages Ltd. | 14135 | 225591 |
|  |  | 393651 |
| **Financials (5.4%):** | **Financials (5.4%):** | **Financials (5.4%):** |
| Axis Bank Ltd. | 18335 | 206348 |
| Cholamandalam Investment & Finance Co. Ltd. | 35108 | 306204 |
| ICICI Bank Ltd., ADR | 32270 | 706390 |
| Manappuram Finance Ltd. | 145637 | 204268 |
|  |  | 1423210 |
| **Health Care (1.0%):** | **Health Care (1.0%):** | **Health Care (1.0%):** |
| Apollo Hospitals Enterprise Ltd. | 4735 | 255886 |
| **Industrials (1.8%):** | **Industrials (1.8%):** | **Industrials (1.8%):** |
| Larsen & Toubro Ltd. | 18347 | 461167 |
| **Information Technology (1.5%):** | **Information Technology (1.5%):** | **Information Technology (1.5%):** |
| Infosys Ltd., ADR | 16476 | 296733 |
| WNS Holdings Ltd., ADR (b) | 1314 | 105107 |
|  |  | 401840 |
| **Materials (0.5%):** | **Materials (0.5%):** | **Materials (0.5%):** |
| JK Paper Ltd. | 28973 | 142924 |
| **Utilities (0.7%):** | **Utilities (0.7%):** | **Utilities (0.7%):** |
| Power Grid Corp. of India Ltd. | 71508 | 184373 |
|  |  | 3748386 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory Sophus Emerging Markets VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Indonesia (1.8%):** | **Indonesia (1.8%):** | **Indonesia (1.8%):** |
| **Energy (0.6%):** | **Energy (0.6%):** | **Energy (0.6%):** |
| PT Adaro Energy Indonesia Tbk | 631800 | $156530 |
| **Financials (1.2%):** | **Financials (1.2%):** | **Financials (1.2%):** |
| PT Bank Mandiri Persero Tbk | 486800 | 310480 |
|  |  | 467010 |
| **Korea, Republic Of (14.3%):** | **Korea, Republic Of (14.3%):** | **Korea, Republic Of (14.3%):** |
| **Communication Services (2.0%):** | **Communication Services (2.0%):** | **Communication Services (2.0%):** |
| JYP Entertainment Corp. | 5774 | 310211 |
| KT Corp. | 7553 | 202174 |
|  |  | 512385 |
| **Consumer Discretionary (2.1%):** | **Consumer Discretionary (2.1%):** | **Consumer Discretionary (2.1%):** |
| Hyundai Mobis Co. Ltd. | 979 | 155300 |
| Kia Corp. | 3477 | 163607 |
| Shinsegae, Inc. | 1320 | 230791 |
|  |  | 549698 |
| **Consumer Staples (0.3%):** | **Consumer Staples (0.3%):** | **Consumer Staples (0.3%):** |
| BGF retail Co. Ltd. | 512 | 85691 |
| **Financials (2.6%):** | **Financials (2.6%):** | **Financials (2.6%):** |
| Hana Financial Group, Inc. | 8141 | 271110 |
| Samsung Securities Co. Ltd. | 6905 | 172349 |
| Woori Financial Group, Inc. | 26713 | 244051 |
|  |  | 687510 |
| **Health Care (0.9%):** | **Health Care (0.9%):** | **Health Care (0.9%):** |
| Samsung Biologics Co. Ltd. (b) (c) | 341 | 221741 |
| **Industrials (0.5%):** | **Industrials (0.5%):** | **Industrials (0.5%):** |
| CJ Corp. | 2065 | 137952 |
| **Information Technology (5.9%):** | **Information Technology (5.9%):** | **Information Technology (5.9%):** |
| Innox Advanced Materials Co. Ltd. | 5468 | 131720 |
| Samsung Electro-Mechanics Co. Ltd. | 1706 | 177187 |
| Samsung Electronics Co. Ltd. | 21767 | 955500 |
| SK Hynix, Inc. | 4552 | 271612 |
|  |  | 1536019 |
|  |  | 3730996 |
| **Malaysia (1.5%):** | **Malaysia (1.5%):** | **Malaysia (1.5%):** |
| **Financials (0.9%):** | **Financials (0.9%):** | **Financials (0.9%):** |
| Public Bank Bhd | 233600 | 229318 |
| **Materials (0.6%):** | **Materials (0.6%):** | **Materials (0.6%):** |
| Petronas Chemicals Group Bhd | 78800 | 154110 |
|  |  | 383428 |
| **Mexico (3.3%):** | **Mexico (3.3%):** | **Mexico (3.3%):** |
| **Consumer Discretionary (0.5%):** | **Consumer Discretionary (0.5%):** | **Consumer Discretionary (0.5%):** |
| Alsea SAB de CV (b) | 68364 | 129344 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory Sophus Emerging Markets VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Consumer Staples (0.8%):** | **Consumer Staples (0.8%):** | **Consumer Staples (0.8%):** |
| Fomento Economico Mexicano SAB de CV, ADR | 2756 | $215299 |
| **Financials (1.4%):** | **Financials (1.4%):** | **Financials (1.4%):** |
| Grupo Financiero Banorte SAB de CV, Class O | 48865 | 350922 |
| **Industrials (0.6%):** | **Industrials (0.6%):** | **Industrials (0.6%):** |
| Grupo Aeroportuario del Pacifico SAB de CV, Class B | 11591 | 166082 |
|  |  | 861647 |
| **Netherlands (0.0%): (a)** | **Netherlands (0.0%): (a)** | **Netherlands (0.0%): (a)** |
| **Real Estate (0.0%):** | **Real Estate (0.0%):** | **Real Estate (0.0%):** |
| NEPI Rockcastle NV | 1 | 6 |
| **Peru (0.9%):** | **Peru (0.9%):** | **Peru (0.9%):** |
| **Financials (0.9%):** | **Financials (0.9%):** | **Financials (0.9%):** |
| Credicorp Ltd. | 1731 | 234828 |
| **Qatar (0.6%):** | **Qatar (0.6%):** | **Qatar (0.6%):** |
| **Industrials (0.6%):** | **Industrials (0.6%):** | **Industrials (0.6%):** |
| Industries Qatar QSC | 43447 | 153368 |
| **Russian Federation (0.0%): (a)** | **Russian Federation (0.0%): (a)** | **Russian Federation (0.0%): (a)** |
| **Consumer Staples (0.0%):** | **Consumer Staples (0.0%):** | **Consumer Staples (0.0%):** |
| Magnit PJSC (b) (d) (e) (f) (g) | 2805 | 35 |
| **Energy (0.0%):** | **Energy (0.0%):** | **Energy (0.0%):** |
| Gazprom PJSC (b) (d) (e) (f) (g) | 117150 | 3846 |
| Rosneft Oil Co. PJSC, GDR (b) (d) (e) (f) (g) | 48095 | 2253 |
|  |  | 6099 |
| **Financials (0.0%):** | **Financials (0.0%):** | **Financials (0.0%):** |
| Sberbank of Russia PJSC, ADR (b) (d) (e) (f) (g) | 31735 | 212 |
|  |  | 6346 |
| **Saudi Arabia (2.8%):** | **Saudi Arabia (2.8%):** | **Saudi Arabia (2.8%):** |
| **Financials (1.2%):** | **Financials (1.2%):** | **Financials (1.2%):** |
| The Saudi National Bank | 22530 | 303324 |
| **Materials (1.6%):** | **Materials (1.6%):** | **Materials (1.6%):** |
| SABIC Agri-Nutrients Co. | 6981 | 272563 |
| Saudi Arabian Mining Co. (b) | 8658 | 148680 |
|  |  | 421243 |
|  |  | 724567 |
| **South Africa (2.5%):** | **South Africa (2.5%):** | **South Africa (2.5%):** |
| **Communication Services (1.0%):** | **Communication Services (1.0%):** | **Communication Services (1.0%):** |
| MTN Group Ltd. | 34543 | 258153 |
| **Financials (1.0%):** | **Financials (1.0%):** | **Financials (1.0%):** |
| Absa Group Ltd. | 23174 | 263319 |
| **Industrials (0.5%):** | **Industrials (0.5%):** | **Industrials (0.5%):** |
| The Bidvest Group Ltd. | 10253 | 128774 |
|  |  | 650246 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory Sophus Emerging Markets VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Taiwan (12.2%):** | **Taiwan (12.2%):** | **Taiwan (12.2%):** |
| **Consumer Discretionary (0.7%):** | **Consumer Discretionary (0.7%):** | **Consumer Discretionary (0.7%):** |
| Fulgent Sun International Holding Co. Ltd. | 39000 | $192265 |
| **Health Care (0.9%):** | **Health Care (0.9%):** | **Health Care (0.9%):** |
| Lotus Pharmaceutical Co. Ltd. | 17000 | 135661 |
| Universal Vision Biotechnology Co. Ltd. | 10200 | 99019 |
|  |  | 234680 |
| **Information Technology (10.2%):** | **Information Technology (10.2%):** | **Information Technology (10.2%):** |
| Gold Circuit Electronics Ltd. | 71600 | 201194 |
| Hon Hai Precision Industry Co. Ltd. | 81000 | 262569 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 126259 | 1833927 |
| Unimicron Technology Corp. | 24000 | 93183 |
| Wiwynn Corp. | 11000 | 284552 |
|  |  | 2675425 |
| **Materials (0.4%):** | **Materials (0.4%):** | **Materials (0.4%):** |
| Formosa Plastics Corp. | 37000 | 104353 |
|  |  | 3206723 |
| **Thailand (1.3%):** | **Thailand (1.3%):** | **Thailand (1.3%):** |
| **Materials (0.7%):** | **Materials (0.7%):** | **Materials (0.7%):** |
| Indorama Ventures PCL | 161500 | 189658 |
| **Real Estate (0.6%):** | **Real Estate (0.6%):** | **Real Estate (0.6%):** |
| AP Thailand PCL | 440200 | 147348 |
|  |  | 337006 |
| **Turkey (0.0%): (a)** | **Turkey (0.0%): (a)** | **Turkey (0.0%): (a)** |
| **Consumer Discretionary (0.0%):** | **Consumer Discretionary (0.0%):** | **Consumer Discretionary (0.0%):** |
| Yatas Yatak ve Yorgan Sanayi ve Ticaret A/S | —<br> (h) | 1 |
| **United Kingdom (1.4%):** | **United Kingdom (1.4%):** | **United Kingdom (1.4%):** |
| **Materials (1.4%):** | **Materials (1.4%):** | **Materials (1.4%):** |
| Anglo American PLC | 5332 | 208756 |
| Mondi PLC | 9569 | 161786 |
|  |  | 370542 |
| **United States (0.5%):** | **United States (0.5%):** | **United States (0.5%):** |
| **Consumer Discretionary (0.5%):** | **Consumer Discretionary (0.5%):** | **Consumer Discretionary (0.5%):** |
| Samsonite International SA (b) (c) | 53700 | 141009 |
| **Total Common Stocks (Cost $25,921,627)** | **Total Common Stocks (Cost $25,921,627)** | 25796530 |
| **Total Investments (Cost $25,921,627) — 98.6%** | **Total Investments (Cost $25,921,627) — 98.6%** | 25796530 |
| **Other assets in excess of liabilities — 1.4%** | **Other assets in excess of liabilities — 1.4%** | 373554 |
| **NET ASSETS — 100.00%** | **NET ASSETS — 100.00%** | $26170084 |

---

(a) Amount represents less than 0.05% of net assets.

(b) Non-income producing security.

(c) Rule 144A security or other security that is restricted as to resale to institutional investors. The Fund's Adviser has deemed this security to be liquid (unless otherwise noted as illiquid) based upon procedures

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory Sophus Emerging Markets VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

approved by the Board of Trustees. As of December 31, 2022, the fair value of these securities was $1,448,278 and amounted to 5.5% of net assets.

(d) Security was fair valued based upon procedures approved by the Board of Trustees and represents less than 0.05% of net assets as of December 31, 2022. This security is classified as Level 3 within the fair value hierarchy. (See Note 2 in the Notes to Financial Statements)

(e) The Fund's Adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. As of December 31, 2022, illiquid securities were less than 0.05% of net assets.

(f) Restricted security due to trading restrictions. Russian sanctioned entity by the United States Government.

(g) The following table details the earliest acquisition date and cost of the Fund's Russian sanctioned restricted securities at December 31, 2022.

---

| | | |
|:---|:---|:---|
| **Security Name** | **Acquisition <br>Date** | **Cost** |
| Magnit PJSC | 9/16/2021 | $219033 |
| Gazprom PJSC | 7/28/2021 | 464042 |
| Rosneft Oil Co. PJSC, GDR | 3/6/2020 | 298051 |
| Sberbank of Russia PJSC, ADR | 11/11/2020 | 416883 |

---

(h) Rounds to less than 1.

ADR — American Depositary Receipt

GDR — Global Depositary Receipt

PCL — Public Company Limited

PLC — Public Limited Company

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statement of Assets and Liabilities**<br> December 31, 2022 |

---

---

| | |
|:---|:---|
| | **Victory <br>Sophus Emerging <br>Markets VIP <br>Series** |
| **Assets:** | **Assets:** |
| Investments, at value (Cost $25,921,627) | $25796530 |
| Foreign currency, at value (Cost $3,717) | 3717 |
| Cash | 43383 |
| Receivables: | Receivables: |
| Interest and dividends | 159988 |
| Capital shares issued | 111458 |
| Investments sold | 165720 |
| Reclaims | 497 |
| From Adviser | 6385 |
| Prepaid expenses | 55 |
| Total Assets | 26287733 |
| **Liabilities:** | **Liabilities:** |
| Payables: | Payables: |
| Capital shares redeemed | 4078 |
| Accrued foreign capital gains taxes | 26398 |
| Accrued expenses and other payables: | Accrued expenses and other payables: |
| Investment advisory fees | 22536 |
| Administration fees | 1517 |
| Custodian fees | 14658 |
| Transfer agent fees | 8274 |
| Compliance fees | 20 |
| Trustees' fees | 106 |
| Other accrued expenses | 40062 |
| Total Liabilities | 117649 |
| **Net Assets:** | **Net Assets:** |
| Capital | 27679637 |
| Total accumulated earnings/(loss) | (1509553) |
| Net Assets | $26170084 |
| Shares (unlimited shares authorized with a par value of $0.001 per share): | 2659652 |
| Net asset value: | $9.84 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statement of Operations**<br> For the Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| | **Victory <br>Sophus Emerging <br>Markets VIP <br>Series** |
| **Investment Income:** | **Investment Income:** |
| Dividends | $1112658 |
| Non-cash dividends | 50080 |
| Interest | 533 |
| Securities lending (net of fees) | 1016 |
| Foreign tax withholding | (121714) |
| Total Income | 1042573 |
| **Expenses:** | **Expenses:** |
| Investment advisory fees | 305140 |
| Administration fees | 16603 |
| Sub-Administration fees | 16965 |
| Custodian fees | 56413 |
| Transfer agent fees | 35322 |
| Trustees' fees | 3481 |
| Compliance fees | 249 |
| Legal and audit fees | 13033 |
| Other expenses | 42302 |
| Recoupment of prior expenses waived/reimbursed by Adviser | 3400 |
| Total Expenses | 492908 |
| Expenses waived/reimbursed by Adviser | (81408) |
| Net Expenses | 411500 |
| Net Investment Income (Loss) | 631073 |
| **Realized/Unrealized Gains (Losses) from Investments:** | **Realized/Unrealized Gains (Losses) from Investments:** |
| Net realized gains (losses) from investment securities and foreign <br>currency transactions | (1888566) |
| Foreign taxes on realized gains | (18613) |
| Net change in unrealized appreciation/depreciation on investment securities and <br>foreign currency translations | (6979068) |
| Net change in unrealized appreciation/depreciation on foreign capital gains taxes | 31306 |
| Net realized/unrealized gains (losses) on investments | (8854941) |
| Change in net assets resulting from operations | $(8223868) |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statements of Changes in Net Assets** |

---

---

| | | |
|:---|:---|:---|
| | **Victory Sophus Emerging <br>Markets VIP Series** | **Victory Sophus Emerging <br>Markets VIP Series** |
| | **Year<br>Ended<br>December 31, <br>2022** | **Year<br>Ended<br>December 31,<br>2021** |
| **From Investment Activities:** | **From Investment Activities:** | **From Investment Activities:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income (Loss) | $631073 | $301435 |
| Net realized gains (losses) | (1907179) | 6044584 |
| Net change in unrealized appreciation/depreciation | (6947762) | (7912136) |
| Change in net assets resulting from operations | (8223868) | (1566117) |
| Change in net assets resulting from distributions to shareholders | (6300829) | (1038915) |
| Change in net assets resulting from capital transactions | 2680527 | (4400240) |
| Change in net assets | (11844170) | (7005272) |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of period | 38014254 | 45019526 |
| End of period | $26170084 | $38014254 |
| **Capital Transactions:** | **Capital Transactions:** | **Capital Transactions:** |
| Proceeds from shares issued | $825133 | $2584480 |
| Distributions reinvested | 6300829 | 1038915 |
| Cost of shares redeemed | (4445435) | (8023635) |
| Change in net assets resulting from capital transactions | $2680527 | $(4400240) |
| **Share Transactions:** | **Share Transactions:** | **Share Transactions:** |
| Issued | 62810 | 139367 |
| Reinvested | 623161 | 63135 |
| Redeemed | (328009) | (435096) |
| Change in Shares | 357962 | (232594) |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Financial Highlights** |

---

*For a Share Outstanding Throughout Each Period*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Victory Sophus Emerging Markets VIP Series** | **Victory Sophus Emerging Markets VIP Series** | **Victory Sophus Emerging Markets VIP Series** | **Victory Sophus Emerging Markets VIP Series** | **Victory Sophus Emerging Markets VIP Series** |
| | **Year<br>Ended<br>December 31,<br>2022** | **Year<br>Ended<br>December 31,<br>2021** | **Year<br>Ended<br>December 31,<br>2020** | **Year<br>Ended<br>December 31,<br>2019** | **Year<br>Ended<br>December 31,<br>2018** |
| **Net Asset Value, Beginning of Period** | $16.52 | $17.76 | $15.73 | $13.59 | $18.79 |
| Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: |
| Net investment income (loss) (a) | 0.29 | 0.13 | 0.07 | 0.29 | 0.20 |
| Net realized and unrealized gains (losses) | (3.95) | (0.91) | 2.42 | 2.85 | (3.79) |
| Total from Investment Activities | (3.66) | (0.78) | 2.49 | 3.14 | (3.59) |
| Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: |
| Net investment income | (0.09) | (0.16) | (0.32) | (0.16) | (0.14) |
| Net realized gains from investments | (2.93) | (0.30) | (0.14) | (0.84) | (1.47) |
| Total Distributions to Shareholders | (3.02) | (0.46) | (0.46) | (1.00) | (1.61) |
| **Net Asset Value, End of Period** | $9.84 | $16.52 | $17.76 | $15.73 | $13.59 |
| Total Return (b) (c) | (22.46)% | (4.42)% | 16.02% | 23.28% | (18.97)% |
| **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** |
| Net Expenses (d) | 1.35% | 1.35% | 1.35% | 1.35% | 1.34% |
| Net Investment Income (Loss) | 2.07% | 0.68% | 0.49% | 1.93% | 1.12% |
| Gross Expenses (d) | 1.62% | 1.53% | 1.48% | 1.40% | 1.34% |
| **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** |
| Net Assets at end of period (000's) | $26170 | $38014 | $45020 | $44571 | $42385 |
| Portfolio Turnover | 53% | 85% | 96% | 91% | 105% |

---

(a) Per share net investment income (loss) has been calculated using the average daily shares method.

(b) Total returns do not reflect the effects of charges deducted pursuant to the terms of The Guardian Insurance & Annuity Company, Inc.'s variable contracts. Inclusion of such charges would reduce the total returns for all periods shown.

(c) Assumes reinvestment of all net investment income and realized capital gain distributions, if any, during the period. Includes adjustments in accordance with U.S. Generally Accepted Accounting Principles and could differ from the reported total return.

(d) Does not include acquired fund fees and expenses, if any.

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements**<br> December 31, 2022 |

---

**1. Organization:**

Victory Variable Insurance Funds (the "Trust") is organized as a Delaware statutory trust and the Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. The Trust is comprised of six funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with a par value of $0.001 per share.

The accompanying financial statements are those of Victory Sophus Emerging Markets VIP Series (the "Fund"), a series of the Trust. The Fund offers a single class of shares: Class I. The Fund's shares are only available for purchase by certain separate accounts of insurance companies as investments for certain variable annuity plans and variable life insurance contracts issued by those insurance companies. The Fund is classified as diversified under the 1940 Act.

Victory Capital Management Inc. ("VCM" or the "Adviser") is an indirect wholly owned subsidiary of Victory Capital Holdings, Inc., a publicly traded Delaware corporation, and a wholly owned direct subsidiary of Victory Capital Operating, LLC.

Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund. However, based on experience, the Fund expects that risk of loss to be remote.

**2. Significant Accounting Policies:**

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with U.S. Generally Accepted Accounting Principles ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies under Accounting Standards Codification Topic 946.

**Investment Valuation:**

The Fund records investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The valuation techniques described below maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Fund's investments are summarized in the three broad levels listed below:

• Level 1 — quoted prices (unadjusted) in active markets for identical securities

• Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, or credit spreads, applicable to those securities, etc.)

• Level 3 — significant unobservable inputs (including the Adviser's assumptions in determining the fair value of investments)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.

The Adviser, appointed as the valuation designee by the Trust's Board of Trustees' (the "Board"), has established the Pricing and Liquidity Committee (the "Committee"), and subject to Board oversight, the Committee administers and oversees the Fund's valuation policies and procedures, which are approved by the Board.

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|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

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Portfolio securities listed or traded on securities exchanges, including Exchange-Traded Funds ("ETFs"), and American Depositary Receipts ("ADRs"), are valued at the closing price on the exchange or system where the security is principally traded, if available, or at the Nasdaq Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.

Investments in open-end investment companies, other than ETFs, are valued at their net asset value ("NAV"). These valuations are typically categorized as Level 1 in the fair value hierarchy.

In the event that price quotations or valuations are not readily available, investments are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded and the actual price realized from the sale of a security may differ materially from the fair value price. Valuing these securities at fair value is intended to cause the Fund's NAV to be more reliable than it otherwise would be.

In accordance with procedures adopted by the Board, fair value pricing may be used if events materially affecting the value of foreign securities occur between the time the exchange on which they are traded closes and the time the Fund's NAV is calculated. The Fund uses a systematic valuation model, provided daily by an independent third party to fair value its international equity securities. The valuations are categorized as Level 2 in the fair value hierarchy.

A summary of the valuations as of December 31, 2022, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed on the Schedule of Portfolio Investments:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks | $3119538 | $22670646 | $6346 | $25796530 |
| Total | $3119538 | $22670646 | $6346 | $25796530 |

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As of December 31, 2022, there were no significant transfers into/out of Level 3. The transfers into Level 3 investments for the Fund were immaterial, although the change in unrealized appreciation/(depreciation) on these investments was $(1,639,568). These securities were impacted by the invasion of Ukraine and sanctions on market conditions in Russia. From the start of the conflict in Ukraine until December 31, 2022, Russian-held investments were valued at an approximately 99 percent discount from their last traded prices.

**Investment Companies:**

Open-End Funds:

The Fund may invest in portfolios of open-end investment companies. These investment companies value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value by the methods established by the board of directors of the underlying funds.

**Derivative Instruments:**

Foreign Exchange Currency Contracts:

The Fund may enter into foreign exchange currency contracts to convert U.S. dollars to and from various foreign currencies. A foreign exchange currency contract is an obligation by a Fund to purchase or sell a specific currency at a future date at a price (in U.S. dollars) set at the time of the contract. The Fund does not engage in "cross-currency" foreign exchange contracts (i.e., contracts to purchase or sell one foreign currency in exchange for another foreign currency). The Fund's foreign exchange

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|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

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currency contracts might be considered spot contracts (typically a contract of one week or less) or forward contracts (typically a contract term over one week). A spot contract is entered into for purposes of hedging against foreign currency fluctuations relating to a specific portfolio transaction, such as the delay between a security transaction trade date and settlement date. Forward contracts are entered into for purposes of hedging portfolio holdings or concentrations of such holdings. The Fund enters into foreign exchange currency contracts solely for spot or forward hedging purposes, and not for speculative purposes (i.e., the Fund does not enter into such contracts solely for the purpose of earning foreign currency gains). Each foreign exchange currency contract is adjusted daily by the prevailing spot or forward rate of the underlying currency, and any appreciation or depreciation is recorded for financial statement purposes as unrealized until the contract settlement date, at which time the Fund records realized gains or losses equal to the difference between the value of a contract at the time it was opened and the value at the time it was closed. The Fund could be exposed to risk if a counterparty is unable to meet the terms of a foreign exchange currency contract or if the value of the foreign currency changes unfavorably. In addition, the use of foreign exchange currency contracts does not eliminate fluctuations in the underlying prices of the securities. For the year ended December 31, 2022, the Fund had no open forward foreign exchange currency contracts.

**Investment Transactions and Related Income:**

Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date or the last business day of the reporting period. Interest income is determined on the basis of coupon interest accrued using the effective interest method which adjusts, where applicable, the amortization of premiums or accretion of discounts. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are recorded on the identified cost basis.

Withholding taxes on interest, dividends, and gains as a result of certain investments by the Fund have been provided for in accordance with each investment's applicable country's tax rules and rates.

**Securities Lending:**

The Fund, through a Securities Lending Agreement with Citibank, N.A. ("Citibank"), may lend its securities to qualified financial institutions, such as certain broker-dealers and banks, to earn additional income, net of income retained by Citibank. Borrowers are required to initially secure their loans for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are generally cured the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities and other securities as permitted by Securities and Exchange Commission ("SEC") guidelines. The cash collateral is invested in short-term instruments or cash equivalents, primarily open-end investment companies, as noted on the Fund's Schedule of Portfolio Investments. The Fund effectively does not have control of the non-cash collateral and therefore it is not disclosed on the Fund's Schedule of Portfolio Investments. Collateral requirements are determined daily based on the value of the Fund's securities on loan as of the end of the prior business day. During the time portfolio securities are on loan, the borrower will pay the Fund any dividends or interest paid on such securities plus any fee negotiated between the parties to the lending agreement. The Fund also earns a return from the collateral. The Fund pays Citibank various fees in connection with the investment of cash collateral and fees based on the investment income received from securities lending activities. Securities lending income (net of these fees) is disclosed on the Statement of Operations. Loans are terminable upon demand and the borrower must return the loaned securities within the lesser of one standard settlement period or five business days. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. In addition, there is a risk that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower.

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|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

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The Fund's agreement with Citibank does not include master netting provisions. Non-cash collateral received by the Fund may not be sold or repledged, except to satisfy borrower default.

As of December 31, 2022, the Fund did not have any securities on loan.

**Foreign Currency Translations:**

The accounting records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities of the Fund denominated in a foreign currency are translated into U.S. dollars at current exchange rates. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the exchange rates on the date of the transactions. The Fund does not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are disclosed as Net change in unrealized appreciation/depreciation on investment securities and foreign currency translations on the Statement of Operations. Any realized gains or losses from these fluctuations are disclosed as Net realized gains (losses) from investment securities and foreign currency transactions on the Statement of Operations.

**Foreign Taxes:**

The Fund may be subject to foreign taxes related to foreign income received (a portion of which may be reclaimable), capital gains on the sale of securities, and certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable regulations and rates that exist in the foreign jurisdictions in which the Fund invests.

**Federal Income Taxes:**

The Fund intends to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes is required in the financial statements. The Fund has a tax year end of December 31.

For the year ended December 31, 2022, the Fund did not incur any income tax, interest, or penalties, and has recorded no liability for net unrecognized tax benefits relating to uncertain tax positions.

Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax years, which includes the current fiscal tax year end). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

**Allocations:**

Expenses directly attributable to the Fund are charged to the Fund, while expenses that are attributable to more than one fund in the Trust, or jointly with an affiliated trust, are allocated among the respective funds in the Trust and/or an affiliated trust based upon net assets or another appropriate basis.

**3. Purchases and Sales:**

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the year ended December 31, 2022, were as follows:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Excluding <br>U.S. Government Securities** | &nbsp;&nbsp;&nbsp;&nbsp;**Excluding <br>U.S. Government Securities** |
| **Purchases** | **Sales** |
| $16232291 | $19247435 |

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

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**4. Fees and Transactions with Affiliates and Related Parties:**

**Investment Advisory Fees:**

Investment advisory services are provided to the Fund by the Adviser, which is a New York corporation registered as an investment adviser with the SEC.

Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive fees accrued daily and paid monthly at an annualized rate of 1.00% of the Fund's average daily net assets. Amounts incurred and paid to VCM for the year ended December 31, 2022, are reflected on the Statement of Operations as Investment advisory fees.

**Administration and Servicing Fees:**

VCM also serves as the Fund's administrator and fund accountant. Under the Administration and Fund Accounting Agreement, VCM is entitled to receive fees based on a percentage of the average daily net assets of the Trust, Victory Portfolios and Victory Portfolios II. The tiered rates at which VCM is paid by the Funds are shown in the table below:

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** |
| **Up to $15 billion** | **Up to $15 billion** | **$15 billion – $30 billion** | **$15 billion – $30 billion** | **Over $30 billion** |
| 0.08 | %, plus | 0.05 | %, plus | 0.04% |

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Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Administration fees.

Citi Fund Services Ohio, Inc. ("Citi"), an affiliate of Citibank, acts as sub-administrator and sub-fund accountant to the Fund pursuant to the Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Fund reimburses VCM and Citi for out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Sub-Administration fees.

The Fund (as part of the Trust) has entered into an agreement with the Adviser to provide compliance services, pursuant to which the Adviser furnishes its compliance personnel, including the services of the Chief Compliance Officer ("CCO"), and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration, and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The CCO is an employee of the Adviser, which pays the compensation of the CCO and support staff. The funds in the Trust, Victory Portfolios, Victory Portfolios II and USAA Mutual Funds (collectively, the "Victory Funds Complex"), in aggregate, compensate the Adviser for these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Compliance fees.

**Transfer Agency Fees:**

FIS Investor Services, LLC ("FIS") serves as the Fund's transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Transfer agent fees.

**Distributor/Underwriting Services:**

Victory Capital Services, Inc. (the "Distributor"), an affiliate of the Adviser, serves as Distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust, and receives no fee or other compensation for these services.

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|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

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**Other Fees:**

Citibank serves as the Fund's custodian. The Fund pays Citibank a fee for providing these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Custodian fees.

Sidley Austin LLP provides legal services to the Trust.

The Adviser has entered into an expense limitation agreement with the Fund until at least April 30, 2023. Under the terms of the agreement, the Adviser has agreed to waive fees or reimburse certain expenses to the extent that ordinary operating expenses incurred in any fiscal year exceed the expense limit for the Fund. Such excess amounts will be the liability of the Adviser. Acquired fund fees and expenses, interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund's business are excluded from the expense limits. As of December 31, 2022, the expense limit (excluding voluntary waivers) is 1.35%.

Under the terms of the expense limitation agreement, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period of up to three years (thirty-six (36) months) after the waiver or reimbursement took place, subject to the lesser of any operating expense limits in effect at the time of: (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount.

As of December 31, 2022, the following amounts are available to be repaid to the Adviser. The Fund has not recorded any amounts available to be repaid as a liability due to an assessment that such repayments are not probable at December 31, 2022.

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| | | | |
|:---|:---|:---|:---|
| **Expires<br>2023** | **Expires<br>2024** | **Expires<br>2025** | **Total** |
| $47293 | $78687 | $81408 | $207388 |

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The Adviser may voluntarily waive or reimburse additional fees to assist the Fund in maintaining competitive expense ratios. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the year ended December 31, 2022.

Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, administrator, fund accountant, sub-administrator, sub-fund accountant, custodian, legal counsel, and Distributor.

**5. Risks:**

The Fund may be subject to other risks in addition to these identified risks.

**<u>Equity Risk</u>** — The value of the equity securities in which the Fund invests may decline in response to developments affecting individual companies and/or general, economic conditions in the United States or abroad. A company's earnings or dividends may not increase as expected (or may decline) because of poor management, competitive pressures, reliance on particular suppliers or geographical regions, labor problems or shortages, corporate restructurings, fraudulent disclosures, man-made or natural disasters, military confrontations or wars, terrorism, public health crises, or other events, conditions and factors. Price changes may be temporary or last for extended periods.

**<u>Emerging Markets Risk</u>** — The risks related to investing in foreign securities are generally greater with respect to securities of companies that conduct their business activities in emerging markets or whose securities are traded principally in emerging markets. The risks of investing in emerging markets include the risks of illiquidity, increased price volatility, smaller market capitalizations, less government regulation, less extensive and less frequent accounting, financial and other reporting requirements, risk of loss resulting from problems in share registration and custody, substantial economic and political disruptions and the nationalization of foreign deposits or assets.

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|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

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**<u>Market Risk</u>** — Overall market risks may affect the value of the Fund. Domestic and international factors such as political events, war, terrorism, trade disputes, inflation rates, interest rate levels and other fiscal and monetary policy changes, cybersecurity incidents, pandemics and other public health crises, sanctions against a particular foreign country, its nationals, businesses or industries and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods or other catastrophes, may add to instability in global economies and markets generally, and may lead to increased market volatility. Global economies and financial markets are highly interconnected, which increases the possibility that conditions in one country or region might adversely affect issuers in another country or region. The impact of these and other factors may be short-term or may last for extended periods.

**6. Borrowing and Interfund Lending:**

**Line of Credit:**

The Victory Funds Complex participates in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 27, 2022, with a termination date of June 26, 2023. Under the agreement with Citibank, the Victory Funds Complex may borrow up to $600 million, of which $300 million is committed and $300 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory Floating Rate Fund, another series of the Victory Funds Complex, with Victory Floating Rate Fund paying the related commitment fees for that amount. The purpose of the Line of Credit is to meet temporary or emergency cash needs. For the year ended December 31, 2022, Citibank received an annual commitment fee of 0.15% on $300 million for providing the Line of Credit. Each fund in the Victory Funds Complex paid a pro-rata portion of the commitment fees plus any interest on amounts borrowed. For the period from January 1, 2022, through June 27, 2022, interest was based on the one-month London Interbank Offered Rate ("LIBOR") plus one percent. Effective with the renewal, for the period June 28, 2022, through December 31, 2022, interest was based on the one-month Secured Overnight Financing Rate (SOFR) plus 1.10 percent. The Fund is not expecting any material financial impact of transition from LIBOR to SOFR. Interest charged to the Fund during the period, if applicable, is reflected on the Statement of Operations under Line of credit fees.

The Fund had no borrowings under the Line of Credit agreement during the year ended December 31, 2022.

**Interfund Lending:**

The Trust and the Adviser rely on an exemptive order granted by the SEC in March 2017 (the "Order"), permitting the establishment and operation of an Interfund Lending Facility (the "Facility"). The Facility allows the Fund to directly lend and borrow money to or from any other fund in the Victory Funds Complex that is permitted to participate in the Facility, relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are allowed for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. As a Borrower, interest charged to the Fund, if any, during the period, is reflected on the Statement of Operations under Interfund lending fees. As a Lender, interest earned by the Fund, if any, during the period, is reflected on the Statement of Operations under Interfund lending.

The Fund did not utilize or participate in the Facility during the year ended December 31, 2022.

**7. Federal Income Tax Information:**

The Fund intends to distribute any net investment income annually. Distributable net realized gains, if any, are declared and paid at least annually.

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|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

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The amounts of dividends from net investment income and distributions from net realized gains (collectively, distributions to shareholders) are determined in accordance with federal income tax regulations, which may differ from GAAP. To the extent these "book/tax" differences are permanent in nature (e.g., net operating loss and distribution reclassification), such amounts are reclassified within the components of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales) do not require reclassification. To the extent dividends and distributions exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. Net investment losses incurred by the Fund may be reclassified as an offset to capital on the accompanying Statement of Assets and Liabilities.

As of December 31, 2022, on the Statement of Assets and Liabilities, there were no permanent book-to-tax difference reclassification adjustments.

The tax character of distributions paid during the tax years ended, as noted below, were as follows (total distributions paid may differ from the Statements of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid).

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |
| **Distributions Paid From:** | **Distributions Paid From:** | | **Distributions Paid From:** | **Distributions Paid From:** | |
| **<br>Ordinary<br>Income** | **Net<br>Long-Term<br>Capital Gains** |<br>**Total<br>Distributions<br>Paid** | **<br>Ordinary<br>Income** | **Net<br>Long-Term<br>Capital Gains** |<br>**Total<br>Distributions<br>Paid** |
| $3022253 | $3278576 | $6300829 | $354923 | $683992 | $1038915 |

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As of December 31, 2022, the components of accumulated earnings/(loss) on a tax basis were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Accumulated<br>Earnings** | **Accumulated<br>Capital and<br>Other<br>Losses** | **Unrealized<br>Appreciation<br>(Depreciation)\*** | **Total<br>Accumulated<br>Earnings<br>(Loss)** |
| $819244 | $819244 | $(1856226) | $(472571) | $(1509553) |

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\* The difference between the book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to tax deferral of losses on wash sales and passive foreign investment company adjustments.

As of December 31, 2022, the Fund had net capital loss carryforwards as shown in the table below. It is unlikely that the Board will authorize a distribution of capital gains realized in the future until the capital loss carryforwards have been used.

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| | | |
|:---|:---|:---|
| **Short-Term<br>Amount** | **Long-Term<br>Amount** | **Total** |
| $1514153 | $342073 | $1856226 |

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As of December 31, 2022, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation (depreciation) for investments were as follows:

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| | | | |
|:---|:---|:---|:---|
| **Cost of <br>Investments <br>for Federal <br>Tax Purposes** | **Net Gross<br>Unrealized<br>Appreciation** | **Gross<br>Unrealized<br>Depreciation** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** |
| $26217852 | $4258183 | $(4679505) | $(421322) |

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Shareholders and Board of Trustees of Victory Variable Insurance Funds

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities, including the schedule of portfolio investments, of Victory Sophus Emerging Markets VIP Series (the "Fund"), a series of Victory Variable Insurance Funds, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the related notes, and the financial highlights for each of the four years in the period then ended (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, the results of its operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

The Fund's financial highlights for the year ended December 31, 2018, were audited by other auditors whose report dated February 15, 2019, expressed an unqualified opinion on those financial highlights.

**Basis for Opinion**

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the investment companies advised by Victory Capital Management, Inc. since 2015.

![](j2325452_ja006.jpg)

COHEN & COMPANY, LTD.<br>Cleveland, Ohio<br>February 16, 2023

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|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information**<br> December 31, 2022 |

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&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Trustee and Officer Information**

**Board of Trustees:**

Overall responsibility for management of the Trust rests with the Board. The Trust is managed by the Board in accordance with the laws of the State of Delaware. There are currently nine Trustees, eight of whom are not "interested persons" of the Trust within the meaning of that term under the 1940 Act ("Independent Trustees") and one of whom is an "interested person" of the Trust within the meaning of that term under the 1940 Act ("Interested Trustee"). The Trustees, in turn, elect the officers of the Trust to actively supervise its day-to-day operations.

The following tables list the Trustees, their date of birth, their position with the Trust, their commencement of service, their principal occupations during the past five years, and any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended, or who file reports under that Act. Each Trustee oversees 6 portfolios in the Trust, 37 portfolios in Victory Portfolios, and 25 portfolios in Victory Portfolios II, each a registered investment company that, together with the Trust, comprise the Victory Fund Complex. David C. Brown is a Trustee of USAA Mutual Funds and oversees 45 portfolios of the USAA Mutual Funds Trust. Each Trustee's address is c/o Victory Portfolios, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. Each Trustee has an indefinite term.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position<br>Held with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation<br>During Past 5 Years** | **Other<br>Directorships<br>Held During<br>Past 5 Years** |
| ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** |
| David Brooks Adcock, <br>October 1951 | Trustee | February 2005 | Consultant (since 2006). | Chairman, Board of Trustees, Turner Funds (December 2016-December 2017). |
| Nigel D. T. Andrews, <br>April 1947 | Trustee | August 2002 | Retired. | Director, Carlyle Secured Lending, Inc. (formerly TCG BDC I, Inc.) (since 2012); Director, Carlyle Credit Solutions, Inc. (formerly TCG BDC II, Inc.) (since 2017); Trustee, Carlyle Secured Lending III (since 2021). |
| E. Lee Beard,\* <br>August 1951 | Trustee | February 2005 | Retired. | None. |
| Dennis M. Bushe, <br>January 1944 | Trustee | July 2016 | Retired. | None. |

---

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position<br>Held with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation<br>During Past 5 Years** | **Other<br>Directorships<br>Held During<br>Past 5 Years** |
| John L. Kelly, <br>April 1953 | Chair and Trustee | February 2015 | Partner, McCarvill Capital Partners (September 2016- September 2017). | Director, Caledonia Mining Corporation (since May 2012). |
| David L. Meyer,<br>April 1957 | Trustee | December 2008 | Retired. | None. |
| Gloria S. Nelund, <br>May 1961 | Trustee | July 2016 | Chair, CEO and Co-Founder of TriLinc Global, LLC, an investment firm. | TriLinc Global Impact Fund, LLC (since 2012). |
| Timothy Pettee, <br>April 1958 | Advisory Trustee | January 2023 | Chief Investment Officer, Hoya Capital Real Estate LLC (since February 2022); Chief Investment Officer, Sun America Asset Management Corp. (January 2003-July 2021). | None. |
| Leigh A. Wilson, <br>December 1944 | Trustee | February 1998 | Private Investor. | Chair (since 2013), Caledonia Mining Corporation. |
| ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** |
| David C. Brown,\*\* <br>May 1972 | Trustee | May 2008 | Chief Executive Officer and Chairman (since 2013), the Adviser; Chief Executive Officer and Chairman (since 2013), Victory Capital Holdings, Inc.; Director (since 2013), Victory Capital Services, Inc.; Director (since 2019), Victory Capital Transfer Agency, Inc. | Trustee, USAA Mutual Funds Trust; Board Member, Victory Capital Services, Inc. |

---

\* The Board has designated Ms. Beard as its Audit Committee Financial Expert.

\*\* Mr. Brown is an "Interested Person" by reason of his relationship with the Adviser.

The Statement of Additional Information includes additional information about the Trustees of the Trust and is available, without charge, by calling 800-539-3863.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Officers:**

The officers of the Trust, their date of birth, their commencement of service, and their principal occupations during the past five years, are detailed in the following table. Each officer serves until the earlier of his or her resignation, removal, retirement, death, or the election of a successor. The mailing address of each officer of the Trust is 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. The officers of the Trust receive no compensation directly from the Trust for performing the duties of their offices.

---

| | | | |
|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation During Past 5 Years** |
| Christopher K. Dyer, <br>February 1962 | President | February 2006 | Director of Mutual Fund Administration, the Adviser (since 2004); Chief Operating Officer, Victory Capital Services, Inc. (since 2020); Vice President, Victory Capital Transfer Agency, Inc. (since 2019). |
| Scott A. Stahorsky, <br>July 1969 | Vice President | December 2014 | Manager, Fund Administration, the Adviser. (since 2015) |
| Thomas Dusenberry,<br>July 1977 | Secretary | May 2022 | Manager, Fund Administration, the Adviser (since 2022); Treasurer and Principal Financial Officer (2020-2022), Assistant Treasurer (2019), Salient MF Trust, Salient Midstream, MLP Fund and Forward Funds; Principal Financial Officer (2018-2021) and Treasurer (2020-2021), Salient Private Access Funds and Endowment PMF Funds; Senior Vice President of Fund Accounting and Operations, Salient Partners (2020-2022); Director of Fund Operations, Salient Partners (2016-2019). |
| Allan Shaer, <br>March 1965 | Treasurer | May 2017 | Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc. (since 2016) |
| Christopher A. Ponte, <br>March 1984 | Assistant Treasurer | December 2017 | Manager, Fund Administration, the Adviser (since 2017); Chief Financial Officer, Victory Capital Services, Inc. (since 2018). |
| Sean Fox,<br>September 1976 | Chief Compliance<br>Officer | June 2022 | Sr. Compliance Officer, the Adviser (since 2019); Compliance Officer, the Adviser (2015-2019). |
| Charles Booth,<br>April 1960 | Anti-Money Laundering Compliance Officer and Identity Theft Officer | May 2015 | Director, Regulatory Administration and CCO Support Services, Citi Fund Services Ohio, Inc. (since 2007). |
| Jay G. Baris, <br>January 1954 | Assistant Secretary | February 1998 | Partner, Sidley Austin LLP (since 2020); Partner, Shearman & Sterling LLP (2018-2020). |

---

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Proxy Voting and Portfolio Holdings Information**

**Proxy Voting:**

Information regarding the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-539-3863. The information is also included in the Fund's Statement of Additional Information, which is available on the SEC's website at sec.gov.

Information relating to how the Fund voted proxies relating to portfolio securities held during the most recent 12 months ended June 30 is available on the SEC's website at sec.gov.

**Availability of Schedules of Portfolio Investments:**

The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarter of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's website at sec.gov.

**Expense Example**

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2022, through December 31, 2022.

The Actual Expense figures in the table below provide information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

The Hypothetical Expense figures in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

Please note the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical expenses in the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Beginning<br>Account Value<br>7/1/22** | **Actual<br>Ending<br>Account Value<br>12/31/22** | **Hypothetical<br>Ending<br>Account Value<br>12/31/22** | **Actual<br>Expenses Paid<br>During Period<br>7/1/22-12/31/22\*** | **Hypothetical<br>Expenses Paid <br>During Period<br>7/1/22-12/31/22\*** | **Annualized<br>Expense Ratio<br>During Period<br>7/1/22-12/31/22** |
| $1000.00 | $957.30 | $1018.40 | $6.66 | $6.87 | 1.35% |

---

\* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 184/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Additional Federal Income Tax Information**

For the year ended December 31, 2022, the Fund paid qualified dividend income for the purposes of reduced individual federal income tax rates of 21%.

For the year ended December 31, 2022, the Fund designated short-term capital gain distributions in the amount of $2,783,235.

For the year ended December 31, 2022, the Fund designated long-term capital gain distributions in the amount of $3,278,576.

The Fund intends to elect to pass through to shareholders the income tax credit for taxes paid to foreign countries. Foreign source income and foreign tax expense per shares outstanding on December 31, 2022, were $0.42 and $0.05, respectively.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Considerations of the Board in Continuing the Investment Advisory Agreement (the "Agreement")**

The Board approved the Agreement on behalf of the Fund at a meeting, which was called for that purpose, on December 6, 2022. The Board also considered information relating to the Fund and the Agreement provided throughout the year and, more specifically, at the meetings on October 18, 2022 and December 6, 2022. In considering whether to approve the Agreement, the Board requested, and the Adviser provided, information that the Board believed to be reasonably necessary to reach its conclusions.

The Board, including the Independent Trustees, evaluated this information along with other information obtained throughout the year and was advised by legal counsel to the Fund and independent legal counsel to the Independent Trustees. In addition, the Independent Trustees considered a past review of their overall process for conducting the annual review of the Fund's advisory arrangements by a consultant retained through their counsel.

The Board considered the Fund's advisory fee, expense ratio and investment performance as significant factors in determining whether the Agreement should be continued. In considering whether the compensation paid to the Adviser was fair and reasonable, the Board also evaluated, among other things, the following factors:

• The requirements of the Fund for the services provided by the Adviser;

• The nature, quality and extent of the services provided and expected to be provided;

• The performance of the Fund as compared to comparable funds;

• The fees payable for the services and whether the fee arrangements provided for economies of scale that would benefit Fund shareholders as the Fund grows (acknowledging that economies of scale can be complex to assess and typically are not directly measurable);

• Whether the fee would be sufficient to enable the Adviser to attract and retain experienced personnel and continue to provide quality services to the Fund;

• The fees paid by other clients of the Adviser whose accounts are managed in a similar investment style and any differences in the services provided to the other clients compared to those provided to the Fund;

• The total expenses of the Fund;

• Management's commitment to operating the Fund at competitive expense levels;

• The profitability of the Adviser (as reflected by comparing fees earned against an estimate of the Adviser's costs) with respect to the Adviser's relationship with the Fund;

• Research and other service benefits received by the Adviser obtained through payment of client commissions for securities transactions;

• Other benefits received by the Adviser, and its affiliates, including revenues paid to the Adviser, or its affiliates, by the Fund for administration and fund accounting services, and distribution;

• The capabilities and financial condition of the Adviser;

• Current economic and industry trends; and

• The historical relationship between the Fund and the Adviser.

The Board also considered a memorandum that it requested the Adviser to prepare that addressed the Fund's total net expense ratio that ranked within the fourth quartile (most expensive) in relation to its peers as evaluated by a consultant. The Adviser reviewed additional relevant circumstances, which included, among other things, the Fund's performance, and small or decreasing assets.

The Board reviewed the Fund's current management fee, comprised of the advisory fee plus the administrative services fee paid to the Adviser, in the context of the Adviser's profitability with respect to the Fund. The Board retained an independent, third-party consultant to provide comparative information about fees, expenses and performance, and to design and maintain a database of relevant information designed to assist the Board in retrieving and analyzing comparative information. The Board met with the consultant to review its inputs and methodologies, among other things. The Board compared the Fund's total operating expense ratio on a net and gross basis with a universe of comparable mutual funds compiled by the consultant and a peer group of funds with similar investment strategies selected by that consultant from the universe. The Board reviewed the factors and methodology used by the consultant in the selection of the Fund's peer group, including the consultant's selection of a broad universe of funds, the more specific universe of comparable funds, and peer groups of funds

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

with comparable investment strategies and asset levels, among other factors. The Board also reviewed any changes to the consultant's methodology as compared to the prior year, including those resulting from the Adviser's input, if any. The Board also reviewed fees and other information related to the Adviser's management of similarly managed institutional or private accounts, and the differences in the services provided to the other accounts, to the extent applicable. The Board noted that the advisory fee arrangements for the Fund do not include breakpoints, which would be a structure that results in reduced fees as a fund grows. The Board also considered the Adviser's commitment to limit expenses as discussed in more detail below.

The Board also reviewed the compliance and administrative services provided to the Fund by the Adviser and its affiliates, including the Adviser's oversight of the Fund's day-to-day operations and oversight of Fund accounting, assistance in meeting legal and regulatory requirements, and other services necessary for the operation of the Fund and the Trust.

The Board reviewed the Fund's performance over one-, three-, five- and ten-year periods against the performance of the Fund's selected peer group and benchmark index. The Board recognized that the performance of the Fund and the peer group funds are net of expenses, while the performance of the benchmark index reflects gross returns.

The Board reviewed various other specific factors with respect to the Fund, as described below. In their deliberations, the Trustees did not rank the importance of any particular information or factor considered and each Trustee may have attributed different weights to various factors.

The Board concluded that the Fund's gross annual management fee was reasonable as compared to the median gross management fee charged to the funds in the Fund's peer group. The Board noted that the Fund's net annual expense ratio, taking into account any shareholder servicing or distribution fees, was reasonable as compared to the median expense ratio for the peer group. The Board considered the Adviser's contractual agreement to waive its fees and reimburse expenses for a specified period of time, as described in the Fund's prospectus.

The Board then compared the Fund's performance for the one-, three-, five- and ten-year periods ended June 30, 2022, to that of the median performance of the Fund's peer group and benchmark index for the same periods and considered the fact that the Fund underperformed the benchmark index for all of the periods reviewed and outperformed the peer group median for all of the periods reviewed.

Having considered, among other things: (1) that the Fund's management fee was within the ranges of advisory fees charged to comparable mutual funds; (2) that the Fund's total expense ratio was reasonable; (3) the Adviser's willingness to limit the expenses for a period of time would provide stability to the Fund's expenses during that period; and (4) the performance of the Fund, the Board concluded that the Agreement continued to be in the best interests of the Fund's shareholders.

**Conclusion**

Based on its review of the information requested and provided, and following extended discussions, the Board determined that the Agreement, on behalf of the Fund, was consistent with the best interests of the Fund and its shareholders, and the Board unanimously approved the Agreement, on behalf of the Fund, for an additional annual period on the basis of the foregoing review and discussions and the following considerations, among others:

• The fairness and reasonableness of the investment advisory fee payable to the Adviser under the Agreement in light of the investment advisory services provided, the costs of these services, the profitability of the Adviser's relationship with the Fund and the comparability of the fee paid to the fees paid by other investment companies;

• The nature, quality and extent of the investment advisory services provided by the Adviser;

• The Adviser's entrepreneurial commitment to the management of the Fund and the creation of a broad-based family of funds, which entails a substantial commitment of the Adviser's resources to the successful operation of the Fund;

• The Adviser's representations regarding its staffing and capabilities to manage the Fund, including the retention of personnel with relevant portfolio management experience;

• The Adviser's efforts to enhance investment results by, among other things, developing and supporting quality portfolio management teams; and

• The overall high quality of the personnel, operations, financial condition, investment management capabilities, methodologies and performance of the Adviser.

------

**Privacy Policy**

**Protecting the Privacy of Information**

The Trust respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain personal information about you. This is the information we collect from you on applications or other forms, and from the transactions you make with us or third parties. It may include your name, address, social security number, account transactions and balances, and information about investment goals and risk tolerance.

We do not disclose any information about you or about former customers to anyone except as permitted or required by law. Specifically, we may disclose the information we collect to companies that perform services on our behalf, such as the transfer agent that processes shareholder accounts and printers and mailers that assist us in the distribution of investor materials. We may also disclose this information to companies that perform marketing services on our behalf. This allows us to continue to offer you Victory investment products and services that meet your investing needs, and to effect transactions that you request or authorize. These companies will use this information only in connection with the services for which we hired them. They are not permitted to use or share this information for any other purpose.

To protect your personal information internally, we permit access only by authorized employees and maintain physical, electronic, and procedural safeguards to guard your personal information.\*

\* You may have received communications regarding information about privacy policies from other financial institutions which gave you the opportunity to "opt-out" of certain information sharing with companies which are not affiliated with that financial institution. The Trust does not share information with other companies for purposes of marketing solicitations for products other than the Trust. Therefore, the Trust does not provide opt-out options to their shareholders.

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Victory Funds<br>P.O. Box 182593<br>Columbus, Ohio 43218-2593

![](j2325452_za007.jpg)

Visit our website at: Call Victory at: <br> vcm.com 800-539-FUND (800-539-3863)

VVIF-RS-SEMVIP-AR (12/22)

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![](j2325453_aa001.jpg)

December 31, 2022

Annual Report

Victory Variable Insurance Funds

Victory High Yield VIP Series

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vcm.com

News, Information And Education 24 Hours A Day, 7 Days A Week

The Victory Capital website gives fund shareholders, prospective shareholders, and investment professionals a convenient way to access fund information, get guidance, and track fund performance anywhere they can access the Internet. The site includes:

• Detailed performance records

• Daily share prices

• The latest fund news

• Investment resources to help you become a better investor

• A section dedicated to investment professionals

Whether you're a potential investor searching for the fund that matches your investment philosophy, a seasoned investor interested in planning tools, or an investment professional, vcm.com has what you seek. Visit us anytime. We're always open.

------

*Victory Variable Insurance Funds*

*Table of Contents*

---

| | |
|:---|:---|
| **Shareholder Letter (Unaudited)** | **3** |
| **Managers' Commentary (Unaudited)** | **5** |
| **Investment Overview (Unaudited)** | **7** |
| **Investment Objective & Portfolio Holdings<br>(Unaudited)** | **8** |
| **Schedule of Portfolio Investments** | **9** |
| **Financial Statements** | **Financial Statements** |
| *Statement of Assets and Liabilities* | **14** |
| *Statement of Operations* | **15** |
| *Statements of Changes in Net Assets* | **16** |
| *Financial Highlights* | **17** |
| **Notes to Financial Statements** | **18** |
| **Report of Independent Registered Public <br>Accounting Firm** | **27** |
| **Supplemental Information (Unaudited)** | **Supplemental Information (Unaudited)** |
| *Trustee and Officer Information* | **28** |
| *Proxy Voting and Portfolio Holdings Information* | **31** |
| *Expense Example* | **31** |
| *Additional Federal Income Tax Information* | **32** |
| *Advisory Contract Renewal* | **33** |
| *Privacy Policy (inside back cover)* |  |

---

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*The Fund is distributed by Victory Capital Services, Inc. Victory Capital Management Inc. is the investment adviser to the Fund and receives fees from the Fund for performing services for the Fund.*

*This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus of the Fund.*

*For additional information about any Victory Fund, including fees, expenses, and risks, view our prospectus online at vcm.com or call 800-539-3863. Read it carefully before you invest or send money.*

*The information in this report is based on data obtained from recognized services and sources and is believed to be reliable. Any opinions, projections, or recommendations in this report are subject to change without notice and are not intended as individual investment advice. Past investment performance of the Fund markets or securities mentioned herein should not be considered to be indicative of future results.*

***• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE***

![](j2325453_ba002.jpg)

*Call Victory at:*

*800-539-FUND* (800-539-3863)

*Visit our website at:*

*vcm.com*

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*Victory Funds Letter to Shareholders<br> (Unaudited)*

Dear Shareholder,

Our most recent annual reporting period ending December 31, 2022, was filled with epic challenges. Even the most seasoned investors who have been through more than one economic cycle have not witnessed financial markets like this in a long time, if ever.

Consider what transpired and how the investing backdrop changed so abruptly. The year began well enough with ample liquidity and an encouraging outlook for corporate profits. But that optimism faded early and was punctuated by the start of a terrible war in Eastern Europe. This fueled rising energy prices and intensified an inflation problem that was proving to be more than "transitory."

The inflation data was particularly troublesome and surprised many with some of the highest readings since the 1970s. In response, the U.S. Federal Reserve (the "Fed") pivoted to a far more restrictive monetary policy than anyone anticipated. Over the course of 2022, the Fed boosted the Fed funds interest rate on seven different occasions by a total of 4.5 percentage points. And if that wasn't enough, zero-Covid policies in China further exacerbated supply chain issues and dampened the outlook for global growth.

As one might expect, all of these obstacles ratcheted up volatility across financial markets. Broad market stock indices pulled back substantially around the world. The S&P 500<sup>®</sup> Index, the bell-weather proxy for our domestic stock market, delivered a negative total return of more than 18% for our annual reporting period.

Perhaps what made 2022 even more difficult was the performance of fixed income markets, which normally are considered a safe haven in times of equity turmoil. But not this past year. In fact, the Bloomberg US Aggregate Bond Index—a proxy for a diversified fixed income portfolio and one that many investors and institutions follow closely—delivered a negative total return of approximately 13%, its worst annual performance since the 1970s. That's not exactly the offset to equity performance that many investors were expecting from bonds.

It was a tough year, and we fully acknowledge that the steady drumbeat of bad news and bouts of stomach-churning volatility can take a toll on investors' psyche. Nobody likes opening their account statements during declining markets; and even when markets snap back sharply (as happened this past July and October), investors often wonder if they have missed an opportunity.

Through all of the challenges in our most recent annual reporting period, we are reminded of two enduring realities: 1) financial markets are dynamic and apt to change abruptly; 2) it's vital that we remain calm and rational whenever faced with those inevitable bouts of turmoil.

Fortunately, we think that investors can take comfort knowing that all of our independent investment franchises have experience managing portfolios through a wide variety of market environments. Our investment professionals remain calm during turbulent financial markets, and we think it's imperative that investors do the same.

------

We still believe that a long-term plan, a well-diversified portfolio across asset classes and investment types, and a clear understanding of individual risk tolerances are the key ingredients for staying the course and progressing on investment goals. Moreover, all our investment professionals continually monitor the environment and work hard to position portfolios opportunistically no matter what the markets bring. Remember, turmoil can also create opportunity.

On the following pages you will find information relating to your Victory Funds investment. If you have any questions, we encourage you to contact your financial advisor. If you invest with us directly, you may call 800-539-3863 or visit our website at vcm.com.

From all of us here at Victory Capital, thank you for your ongoing confidence and for letting us help you work toward your investment goals.

![](j2325453_ba003.jpg)

**Christopher K. Dyer, CFA**

*President,*

*Victory Funds*

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Victory High Yield VIP Series

**Managers' Commentary** <br>(Unaudited)

**What were the market conditions during the reporting period?**

Riskier asset classes were punished in 2022, with the S&P 500<sup>®</sup> Index returning -18.11% for the year and multiple fixed income classes registering their worst returns ever. The 10-year U.S. Treasury returned -16.5%, the Bloomberg US Aggregate Bond Index returned -13.01% and the Bloomberg U.S. Corporate High Yield Index (the "Index") returned -11.19%. The year started with duration risk concerns, quickly passed to geo-political risks and faced steep inflation and recession worries the remainder of the year. U.S. high yield bonds outperformed U.S. Treasury bonds and investment-grade debt on shorter duration metrics and higher current yields even in a year of spread widening.

The U.S. Federal Reserve had to play catch up all year with rising rates against persistent inflation pressure. Economic growth slowed, and despite full employment, the corporate earnings results were choppy. Labor shortages and wage pressure, more supply chain imbalances, resurging COVID-19 implications and uneven fiscal policy responses all weighed heavily at different intervals throughout the year.

Through it all, companies in the below-investment-grade space reported decent earnings, considering the factors above and improved their credit metrics. Credit rating downgrades increased after the 18-month upgrade cycle post COVID-19, and the default rate inched higher but remains well below long-term averages.

The default rate typically has been the biggest driver of returns in the below-investment-grade space, and we agree with strategists' calls for it to continue higher in 2023 but not to levels of previous recessions or non-recessionary averages.

**How did Victory High Yield VIP Series (the "Fund") perform during the reporting period?**

The Fund returned -13.55% for the fiscal year ended December 31, 2022, underperforming the Index, which returned -11.19% for the reporting period.

**What strategies did you employ during the reporting period?**

The Fund's management team takes a bottom-up and credit-by-credit approach to evaluating investments. We look for companies with strong free cash flow or situations in which our analysis finds less risk and more potential positive catalysts than the market is pricing in. We combine this credit selection with our larger market views, favoring some sectors for their cyclical strength during an economic rebound and others because of more secular, long-term trends.

The Fund had exposure to some sectors that were particularly volatile at certain times during the year. An overweight and security selection in the Health Care sector detracted from performance relative to the Index, which is normally a very defensive sector during pre-recessionary periods. Revenues and demand were not the issues, but labor shortages and severe wage inflation were. Select investments in the Consumer Products and Building Materials sectors also hindered the Fund's relative performance. However, security selection in the Energy and Retail sectors contributed to the Fund's performance in addition to exposure in the out-of-index floating rate loan asset class to capture the rising coupon rate.

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Victory High Yield VIP Series

**Managers' Commentary** (continued)

Even as volatility remains high and concern is mounting for a recessionary environment, we still believe there are attractive opportunities in U.S. high yield bonds. The high trailing 12-month yield of 8.15%, combined with total return potential of bonds trading, help to mitigate many of these risks. We expect default rates will rise but not spike, from a starting point of strong credit fundamentals and investor demand for yield.

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Victory High Yield VIP Series

**Victory High Yield VIP Series**

**Investment Overview**<br> (Unaudited)

**Average Annual Total Return**

*Year Ended December 31, 2022*

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| | | |
|:---|:---|:---|
| | **Class I** | |
| **INCEPTION DATE** | *9/13/99* |  |
|  | **Net Asset Value** | **Bloomberg U.S. Corporate High Yield Index<sup>1</sup>** |
| *One Year* | *–13.55%* | *–11.19%* |
| *Five Year* | *2.80%* | *2.31%* |
| *Ten Year* | *3.96%* | *4.03%* |

---

***The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit vcm.com.***

*Total return measures the price change in a share assuming the reinvestment of all net investment income and realized capital gain distributions, if any. The total returns quoted do not reflect adjustments made to the enclosed financial statements in accordance with U.S. Generally Accepted Accounting Principles or the deduction of taxes that a shareholder would pay on net investment income and realized capital gain distributions, including reinvested distributions, or redemptions of shares. The total return figures set forth above include all waivers of fees. Without such fee waivers, the total returns would have been lower. Total returns do not reflect the effects of charges deducted pursuant to the terms of The Guardian Insurance & Annuity Company, Inc.'s variable contracts. Inclusion of such charges would reduce the total returns for all periods shown.*

**Victory High Yield VIP Series — Growth of $10,000**

![](j2325453_bc004.jpg)

*<sup>1</sup>The Bloomberg U.S. Corporate High Yield Index is generally considered to be representative of the investable universe of the U.S.-dominated high yield debt market. This index does not include the effect of sales charges, commissions, expenses, or taxes, is not representative of the Fund, and it is not possible to invest directly in an index.*

*The graph reflects investment of growth of a hypothetical $10,000 investment in the Fund.*

*The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares.*

**Past performance is not indicative of future results.**

------

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| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory High Yield VIP Series** | December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Investment Objective and Portfolio Holdings:**

The Fund seeks to provide current income. Capital appreciation is a secondary objective.

**Asset Allocation\*:**

*December 31, 2022*

*(% of Net Assets)*

![](j2325453_bc005.jpg)

\* Does not include futures contracts, money market instruments, and short-term investments purchased with cash collateral from securities loaned.

Percentages are of the net assets of the Fund and may not equal 100%.

Refer to the Schedule of Portfolio Investments for a complete list of securities.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory High Yield VIP Series** | **Schedule of Portfolio Investments**<br> December 31, 2022 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares or<br>Principal<br>Amount** | **Value** |
| **Common Stocks (0.4%)** | **Common Stocks (0.4%)** | **Common Stocks (0.4%)** |
| **Communication Services (0.3%):** | **Communication Services (0.3%):** | **Communication Services (0.3%):** |
| Altice USA, Inc., Class A (a) | 4380 | $20148 |
| iHeartMedia, Inc., Class A (a) | 3500 | 21455 |
| Sinclair Broadcast Group, Inc., Class A | 1800 | 27918 |
|  |  | 69521 |
| **Health Care (0.1%):** | **Health Care (0.1%):** | **Health Care (0.1%):** |
| Surgery Partners, Inc. (a) | 939 | 26161 |
| **Total Common Stocks (Cost $194,694)** | **Total Common Stocks (Cost $194,694)** | 95682 |
| **Senior Secured Loans (20.2%)** | **Senior Secured Loans (20.2%)** | **Senior Secured Loans (20.2%)** |
| Air Medical Group Holdings, Inc., Incremental Term Loan B, First Lien, 8.32% <br>(LIBOR01M+425bps), 3/14/25, Callable 2/5/23 @ 100 (d) | $493569 | 347349 |
| Bausch Health Cos., Inc., Second Amendment Term Loan, First Lien, 9.57% <br>(SOFR01M+525bps), 2/1/27, Callable 2/5/23 @ 100 (d) | 243750 | 184438 |
| Caesars Resort Collection LLC, Term B-1 Loans, First Lien, 7.57% <br>(LIBOR01M+350bps), 6/19/25, Callable 2/5/23 @ 100 (d) | 139514 | 139038 |
| Chariot Buyer LLC, Initial Term Loans, First Lien, 7.32% (LIBOR01M+350bps), <br>11/3/28, Callable 2/5/23 @ 100 (d) | 198500 | 186755 |
| Clear Channel Outdoor Holdings, Inc., Term B Loan, First Lien, 7.91% <br>(LIBOR03M+350bps), 8/21/26 (d) | 249356 | 226647 |
| Covis Pharma Holdings S.a.r.l., Dollar Term B Loans, First Lien, 10.05% <br>(SOFR03M+650bps), 2/14/27 (d) | 240625 | 129938 |
| Delta Air Lines, Inc. and Skymiles IP Ltd., Initial Term Loan, First Lien, 7.99% <br>(LIBOR03M+375bps), 10/20/27, Callable 9/23/23 @ 104 (d) | 375000 | 381750 |
| Diamond Sports Group LLC, Term Loan, First Lien, 12.32% (SOFR01M+800bps), <br>5/25/26 (d) | 37659 | 35557 |
| Diamond Sports Group LLC, Term Loan, Second Lien, 7.57% (SOFR01M+335bps), <br>8/24/26 (d) | 420750 | 50490 |
| Envision Healthcare Corp., First Out Term Loan, First Lien, 11.91% <br>(SOFR03M+788bps), 7/22/27 (d) | 24894 | 22062 |
| Envision Healthcare Corp., Third Out term Loans, First Lien, 7.87% <br>(SOFR03M+375bps), 3/31/27 (d) | 69122 | 17280 |
| Great Outdoors Group LLC, Term B1, First Lien, 7.82% (LIBOR01M+375bps), <br>3/5/28, Callable 2/9/23 @ 100 (d) | 245023 | 234916 |
| Intelsat Jackson Holdings SA, Term B loan, First Lien, 7.19% (SOFR06M+425bps), <br>2/1/29, Callable 2/5/23 @ 100 (d) | 285652 | 275246 |
| Jo-Ann Stores LLC, Term B-1 Loan, First Lien, 9.08% (LIBOR03M+475bps), 6/30/28, <br>Callable 2/5/23 @ 100 (d) | 246875 | 165819 |
| Knight Health Holdings LLC, Term B Loans, First Lien, 9.32% (LIBOR01M+525bps), <br>12/17/28 (d) | 495000 | 288338 |
| LifeScan Global Corp., Initial Term Loan, First Lien, 9.74% (LIBOR03M+600bps), <br>10/1/24, Callable 2/5/23 @ 100 (d) | 360000 | 258098 |
| Neptune BidCo US, Inc., Dollar Term B Loan, First Lien, 4/11/29 (e) | 125000 | 111329 |
| Petco Health and Wellness Co., Inc., Initial Term Loans, First Lien, 6.92% <br>(LIBOR03M+325bps), 2/25/28, Callable 2/5/23 @ 100 (d) | 393000 | 381006 |
| PetSmart, Inc., Initial Term Loans, First Lien, 7.82% (LIBOR01M+375bps), 2/12/28, <br>Callable 2/5/23 @ 100 (d) | 74063 | 72326 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory High Yield VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount** | **Principal<br>Amount** | **Value** | **Value** |
| Radiology Partners, Inc., Term Loan New, First Lien, 8.64% (LIBOR01M+425bps), <br>7/9/25, Callable 2/5/23 @ 100 (d) | $| 250000 | $| 209062 |
| SWF Holdings Corp. I, Initial Term Loans, First Lien, 8.75% (LIBOR03M+400bps), <br>10/6/28, Callable 2/5/23 @ 100 (d) |  | 397000 |  | 323357 |
| The Michaels Cos., Inc., Term B Loans, First Lien, 7.92% (LIBOR03M+425bps), <br>4/15/28, Callable 2/5/23 @ 100 (d) |  | 295500 |  | 254295 |
| United Airlines, Inc., Class B Term Loans, First Lien, 8.11% (LIBOR03M+375bps), <br>4/21/28, Callable 2/5/23 @ 102 (d) |  | 171938 |  | 169455 |
| **Total Senior Secured Loans (Cost $5,464,870)** | **Total Senior Secured Loans (Cost $5,464,870)** | **Total Senior Secured Loans (Cost $5,464,870)** |  | 4464551 |
| **Corporate Bonds (69.0%)** | **Corporate Bonds (69.0%)** | **Corporate Bonds (69.0%)** | **Corporate Bonds (69.0%)** | **Corporate Bonds (69.0%)** |
| **Communication Services (10.7%):** | **Communication Services (10.7%):** | **Communication Services (10.7%):** | **Communication Services (10.7%):** | **Communication Services (10.7%):** |
| CSC Holdings LLC, 5.75%, 1/15/30, Callable 1/15/25 @ 102.88 (b) |  | 250000 |  | 141355 |
| Cumulus Media New Holdings, Inc., 6.75%, 7/1/26, <br>Callable 2/6/23 @ 103.38 (b) (c) |  | 452000 |  | 379612 |
| Entercom Media Corp., 6.75%, 3/31/29, Callable 3/31/24 @ 103.38 (b) |  | 200000 |  | 35384 |
| Gray Television, Inc. | Gray Television, Inc. | Gray Television, Inc. | Gray Television, Inc. | Gray Television, Inc. |
| 7.00%, 5/15/27, Callable 1/17/23 @ 105.25 (b) |  | 250000 |  | 222050 |
| 4.75%, 10/15/30, Callable 10/15/25 @ 102.38 (b) |  | 250000 |  | 180888 |
| iHeartCommunications, Inc., 8.38%, 5/1/27, Callable 1/23/23 @ 104.19 (c) |  | 350000 |  | 298095 |
| Nexstar Broadcasting, Inc., 5.63%, 7/15/27, Callable 1/17/23 @ 104.22 (b) |  | 500000 |  | 459225 |
| Sinclair Television Group, Inc., 5.50%, 3/1/30, Callable 12/1/24 @ 102.75 (b) (c) |  | 250000 |  | 175002 |
| TEGNA, Inc., 5.00%, 9/15/29, Callable 9/15/24 @ 102.5 |  | 500000 |  | 473340 |
|  |  |  |  | 2364951 |
| **Consumer Discretionary (22.2%):** | **Consumer Discretionary (22.2%):** | **Consumer Discretionary (22.2%):** | **Consumer Discretionary (22.2%):** | **Consumer Discretionary (22.2%):** |
| Academy Ltd., 6.00%, 11/15/27, Callable 11/15/23 @ 103 (b) |  | 200000 |  | 192110 |
| American Axle & Manufacturing, Inc., 5.00%, 10/1/29, Callable 10/1/24 @ 102.5 |  | 500000 |  | 401040 |
| Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 5.38%, 3/1/29, <br>Callable 3/1/24 @ 102.69 (b) (c) |  | 500000 |  | 429300 |
| Beazer Homes USA, Inc., 5.88%, 10/15/27, Callable 1/23/23 @ 102.94 |  | 400000 |  | 352756 |
| Caesars Entertainment, Inc., 8.13%, 7/1/27, Callable 7/1/23 @ 104.06 (b) |  | 250000 |  | 245865 |
| Cinemark USA, Inc., 5.25%, 7/15/28, Callable 7/15/24 @ 102.63 (b) |  | 250000 |  | 185695 |
| Ford Motor Co., 6.10%, 8/19/32, Callable 5/19/32 @ 100 |  | 500000 |  | 463230 |
| LBM Acquisition LLC, 6.25%, 1/15/29, Callable 1/15/24 @ 103.13 (b) |  | 200000 |  | 129712 |
| Life Time, Inc., 5.75%, 1/15/26, Callable 2/6/23 @ 102.88 (b) |  | 250000 |  | 233035 |
| MGM Resorts International, 5.50%, 4/15/27, Callable 1/15/27 @ 100 |  | 250000 |  | 232370 |
| MIWD Holdco II LLC/MIWD Finance Corp., 5.50%, 2/1/30, <br>Callable 2/1/25 @ 102.75 (b) |  | 100000 |  | 80353 |
| Panther BF Aggregator 2 LP/Panther Finance Co., Inc., 8.50%, 5/15/27, <br>Callable 2/6/23 @ 104.25 (b) |  | 500000 |  | 489160 |
| Premier Entertainment Sub LLC/Premier Entertainment Finance Corp. | Premier Entertainment Sub LLC/Premier Entertainment Finance Corp. | Premier Entertainment Sub LLC/Premier Entertainment Finance Corp. | Premier Entertainment Sub LLC/Premier Entertainment Finance Corp. | Premier Entertainment Sub LLC/Premier Entertainment Finance Corp. |
| 5.63%, 9/1/29, Callable 9/1/24 @ 102.81 (b) |  | 200000 |  | 147158 |
| 5.88%, 9/1/31, Callable 9/1/26 @ 102.98 (b) |  | 400000 |  | 282188 |
| Scientific Games Holdings LP/Scientific Games US FinCo., Inc., 6.63%, 3/1/30, <br>Callable 3/1/25 @ 103.31 (b) |  | 250000 |  | 211102 |
| The Hertz Corp., 5.00%, 12/1/29, Callable 12/1/24 @ 102.5 (b) |  | 500000 |  | 379225 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory High Yield VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount** | **Principal<br>Amount** | **Value** | **Value** |
| The Michaels Cos., Inc., 7.88%, 5/1/29, Callable 5/1/24 @ 103.94 (b) (c) | $| 200000 | $| 134978 |
| Viking Cruises Ltd., 13.00%, 5/15/25, Callable 1/23/23 @ 109.75 (b) |  | 300000 |  | 318006 |
|  |  |  |  | 4907283 |
| **Consumer Staples (0.2%):** | **Consumer Staples (0.2%):** | **Consumer Staples (0.2%):** | **Consumer Staples (0.2%):** | **Consumer Staples (0.2%):** |
| Simmons Foods, Inc./Simmons prepared Foods, Inc./Simmons Pet Food, Inc./ <br>Simmons Feed, 4.63%, 3/1/29, Callable 3/1/24 @ 102.31 (b) |  | 50000 |  | 40912 |
| **Energy (8.0%):** | **Energy (8.0%):** | **Energy (8.0%):** | **Energy (8.0%):** | **Energy (8.0%):** |
| Antero Midstream Partners LP/Antero Midstream Finance Corp., 5.38%, 6/15/29, <br>Callable 6/15/24 @ 102.69 (b) |  | 50000 |  | 45737 |
| Antero Resources Corp., 7.63%, 2/1/29, Callable 2/1/24 @ 103.81 (b) |  | 50000 |  | 50649 |
| Callon Petroleum Co., 7.50%, 6/15/30, Callable 6/15/25 @ 103.75 (b) (c) |  | 250000 |  | 229505 |
| CITGO Holding, Inc., 9.25%, 8/1/24, Callable 2/6/23 @ 102.31 (b) |  | 500000 |  | 501485 |
| CITGO Petroleum Corp., 7.00%, 6/15/25, Callable 2/6/23 @ 103.5 (b) |  | 250000 |  | 244378 |
| Comstock Resources, Inc., 6.75%, 3/1/29, Callable 3/1/24 @ 103.38 (b) |  | 250000 |  | 225712 |
| PBF Holding Co. LLC/PBF Finance Corp., 6.00%, 2/15/28, Callable 2/15/23 @ 103 |  | 250000 |  | 221255 |
| Talos Production, Inc., 12.00%, 1/15/26, Callable 1/23/23 @ 106 |  | 250000 |  | 263730 |
|  |  |  |  | 1782451 |
| **Financials (3.8%):** | **Financials (3.8%):** | **Financials (3.8%):** | **Financials (3.8%):** | **Financials (3.8%):** |
| AmWINS Group, Inc., 4.88%, 6/30/29, Callable 6/30/24 @ 102.44 (b) |  | 150000 |  | 128785 |
| Compass Group Diversified Holdings LLC, 5.25%, 4/15/29, <br>Callable 4/15/24 @ 102.63 (b) |  | 200000 |  | 171510 |
| Gray Escrow II, Inc., 5.38%, 11/15/31, Callable 11/15/26 @ 102.69 (b) |  | 125000 |  | 90469 |
| Midas OpCo Holdings LLC, 5.63%, 8/15/29, Callable 8/15/24 @ 102.81 (b) |  | 250000 |  | 206098 |
| Victors Merger Corp., 6.38%, 5/15/29, Callable 5/15/24 @ 103.19 (b) (c) |  | 200000 |  | 110590 |
| White Capital Parent LLC, 8.25%, 3/15/26, Callable 2/6/23 @ 102 (b) |  | 150000 |  | 129601 |
|  |  |  |  | 837053 |
| **Health Care (5.8%):** | **Health Care (5.8%):** | **Health Care (5.8%):** | **Health Care (5.8%):** | **Health Care (5.8%):** |
| Air Methods Corp., 8.00%, 5/15/25, Callable 2/6/23 @ 100 (b) |  | 350000 |  | 20006 |
| CHS/Community Health Systems, Inc., 6.13%, 4/1/30, Callable 4/1/25 @ 103.06 (b) |  | 300000 |  | 151056 |
| Cloud Software Group Holdings, Inc., 6.50%, 3/31/29, Callable 9/30/25 @ 103.25 (b) |  | 250000 |  | 211688 |
| LifePoint Health, Inc., 5.38%, 1/15/29, Callable 1/15/24 @ 102.69 (b) |  | 350000 |  | 198145 |
| Radiology Partners, Inc., 9.25%, 2/1/28, Callable 2/6/23 @ 104.63 (b) (c) |  | 300000 |  | 168708 |
| Team Health Holdings, Inc., 6.38%, 2/1/25, Callable 1/23/23 @ 100 (b) (c) |  | 350000 |  | 202226 |
| Tenet Healthcare Corp., 6.13%, 10/1/28, Callable 10/1/23 @ 103.06 (b) |  | 300000 |  | 269211 |
| U.S. Renal Care, Inc., 10.63%, 7/15/27, Callable 2/6/23 @ 105.31 (b) |  | 300000 |  | 63051 |
|  |  |  |  | 1284091 |
| **Industrials (15.1%):** | **Industrials (15.1%):** | **Industrials (15.1%):** | **Industrials (15.1%):** | **Industrials (15.1%):** |
| Ahern Rentals, Inc., 7.38%, 5/15/23 (b) |  | 425000 |  | 425000 |
| American Airlines, Inc., 11.75%, 7/15/25 (b) |  | 250000 |  | 268960 |
| American Airlines, Inc./AAdvantage Loyalty IP Ltd., 5.75%, 4/20/29 (b) |  | 150000 |  | 137229 |
| Aramark Services, Inc., 6.38%, 5/1/25, Callable 2/6/23 @ 103.19 (b) |  | 250000 |  | 247540 |
| Chart Industries, Inc., 7.50%, 1/1/30, Callable 1/1/26 @ 103.75 (b) |  | 125000 |  | 125519 |
| Madison IAQ LLC, 5.88%, 6/30/29, Callable 6/30/24 @ 102.94 (b) |  | 200000 |  | 137568 |
| Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., 6.50%, <br>6/20/27, Callable 6/30/23 @ 103.25 (b) |  | 225015 |  | 224193 |
| NESCO Holdings II, Inc., 5.50%, 4/15/29, Callable 4/15/24 @ 102.75 (b) |  | 100000 |  | 88175 |
| Pike Corp., 5.50%, 9/1/28, Callable 9/1/23 @ 102.75 (b) |  | 500000 |  | 437050 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory High Yield VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

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| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount** | **Value** |
| SRS Distribution, Inc. | SRS Distribution, Inc. | SRS Distribution, Inc. |
| 6.13%, 7/1/29, Callable 7/1/24 @ 103.06 (b) | 125000 | 101456 |
| 6.00%, 12/1/29, Callable 12/1/24 @ 103 (b) | 150000 | 119967 |
| TransDigm, Inc., 4.63%, 1/15/29, Callable 1/15/24 @ 102.31 | 325000 | 285571 |
| Triumph Group, Inc., 6.25%, 9/15/24, Callable 2/6/23 @ 100 (b) (c) | 175000 | 165426 |
| United Rentals North America, Inc., 6.00%, 12/15/29, Callable 12/15/25 @ 103 (b) | 250000 | 248750 |
| Wabash National Corp., 4.50%, 10/15/28, Callable 10/15/24 @ 102.25 (b) | 100000 | 84795 |
| WESCO Distribution, Inc., 7.25%, 6/15/28, Callable 6/15/23 @ 103.63 (b) | 250000 | 253462 |
|  |  | 3350661 |
| **Information Technology (0.6%):** | **Information Technology (0.6%):** | **Information Technology (0.6%):** |
| Black Knight InfoServ LLC, 3.63%, 9/1/28, Callable 9/1/23 @ 101.81 (b) | 150000 | 130800 |
| **Materials (1.8%):** | **Materials (1.8%):** | **Materials (1.8%):** |
| Allegheny Technologies, Inc., 5.13%, 10/1/31, Callable 10/1/26 @ 102.56 | 250000 | 219353 |
| CVR Partners LP/CVR Nitrogen Finance Corp., 6.13%, 6/15/28, <br>Callable 6/15/24 @ 103.06 (b) | 200000 | 179734 |
|  |  | 399087 |
| **Real Estate (0.8%):** | **Real Estate (0.8%):** | **Real Estate (0.8%):** |
| Adams Homes, Inc., 7.50%, 2/15/25, Callable 1/23/23 @ 103.75 (b) | 200000 | 169750 |
| **Total Corporate Bonds (Cost $18,199,442)** | **Total Corporate Bonds (Cost $18,199,442)** | 15267039 |
| **Yankee Dollars (5.9%)** | **Yankee Dollars (5.9%)** | **Yankee Dollars (5.9%)** |
| **Communication Services (0.8%):** | **Communication Services (0.8%):** | **Communication Services (0.8%):** |
| Telesat Canada/Telesat LLC, 5.63%, 12/6/26, Callable 12/6/23 @ 102.81 (b) | 400000 | 186948 |
| **Energy (0.9%):** | **Energy (0.9%):** | **Energy (0.9%):** |
| TechnipFMC PLC, 6.50%, 2/1/26, Callable 2/6/23 @ 103.25 (b) | 200000 | 195402 |
| **Industrials (3.1%):** | **Industrials (3.1%):** | **Industrials (3.1%):** |
| Bombardier, Inc., 7.88%, 4/15/27, Callable 2/6/23 @ 103.94 (b) | 400000 | 389428 |
| Titan Acquisition Ltd./Titan Co-Borrower LLC, 7.75%, 4/15/26, <br>Callable 2/6/23 @ 101.94 (b) | 250000 | 225752 |
| VistaJet Malta Finance PLC/XO Management Holding, Inc., 6.38%, 2/1/30, <br>Callable 2/1/25 @ 103.19 (b) | 100000 | 80330 |
|  |  | 695510 |
| **Information Technology (0.8%):** | **Information Technology (0.8%):** | **Information Technology (0.8%):** |
| ION Trading Technologies Sarl, 5.75%, 5/15/28, Callable 5/15/24 @ 102.88 (b) | 200000 | 166944 |
| **Materials (0.3%):** | **Materials (0.3%):** | **Materials (0.3%):** |
| Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc., 5.13%, 4/1/29, <br>Callable 4/1/24 @ 102.56 (b) | 100000 | 64840 |
| **Total Yankee Dollars (Cost $1,602,076)** | **Total Yankee Dollars (Cost $1,602,076)** | 1309644 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory High Yield VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Collateral for Securities Loaned (12.5%)^** | **Collateral for Securities Loaned (12.5%)^** | **Collateral for Securities Loaned (12.5%)^** |
| Goldman Sachs Financial Square Government Fund, Institutional Shares, 4.14% (f) | 693159 | $693159 |
| HSBC U.S. Government Money Market Fund, Institutional Shares, 4.13% (f) | 698199 | 698199 |
| Invesco Government & Agency Portfolio, Institutional Shares, 4.22% (f) | 698199 | 698199 |
| Morgan Stanley Institutional Liquidity Government Portfolio, Institutional Shares, <br>4.08% (f) | 683079 | 683079 |
| **Total Collateral for Securities Loaned (Cost $2,772,636)** | **Total Collateral for Securities Loaned (Cost $2,772,636)** | 2772636 |
| **Total Investments (Cost $28,233,718) — 108.0%** | **Total Investments (Cost $28,233,718) — 108.0%** | 23909552 |
| **Liabilities in excess of other assets — (8.0)%** | **Liabilities in excess of other assets — (8.0)%** | (1770801) |
| **NET ASSETS — 100.00%** | **NET ASSETS — 100.00%** | $22138751 |

---

^ Purchased with cash collateral from securities on loan.

(a) Non-income producing security.

(b) Rule 144A security or other security that is restricted as to resale to institutional investors. The Fund's Adviser has deemed this security to be liquid (unless otherwise noted as illiquid) based upon procedures approved by the Board of Trustees. As of December 31, 2022, the fair value of these securities was $13,365,943 and amounted to 60.4% of net assets.

(c) All or a portion of this security is on loan.

(d) Variable or Floating-Rate Security. Rate disclosed is as of December 31, 2022.

(e) The rates for this senior secured loan will be known on settlement date of the loan, subsequent to this report date. Senior secured loans have rates that will fluctuate over time in line with prevailing interest rates.

(f) Rate disclosed is the daily yield on December 31, 2022.

bps — Basis points

LIBOR — London Interbank Offered Rate

LIBOR01M — 1 Month US Dollar LIBOR, rate disclosed as of December 31, 2022, based on the last reset date of the security

LIBOR03M — 3 Month US Dollar LIBOR, rate disclosed as of December 31, 2022, based on the last reset date of the security

LLC — Limited Liability Company

LP — Limited Partnership

PLC — Public Limited Company

SOFR — Secured Overnight Financing Rate

SOFR01M — 1 Month SOFR, rate disclosed as of December 31, 2022.

SOFR03M — 3 Month SOFR, rate disclosed as of December 31, 2022.

SOFR06M — 6 Month SOFR, rate disclosed as of December 31, 2022.

*See notes to financial statements.*

------

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statement of Assets and Liabilities**<br> December 31, 2022 |

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| | |
|:---|:---|
| | **Victory High Yield <br>VIP Series** |
| **Assets:** | **Assets:** |
| Investments, at value (Cost $28,233,718) | $23909552<br> (a) |
| Cash | 574309 |
| Receivables: | Receivables: |
| Interest and dividends | 418766 |
| Capital shares issued | 1074 |
| Investments sold | 94975 |
| From Adviser | 3239 |
| Prepaid expenses | 41 |
| Total Assets | 25001956 |
| **Liabilities:** | **Liabilities:** |
| Payables: | Payables: |
| Collateral received on loaned securities | 2772636 |
| Investments purchased | 50000 |
| Accrued expenses and other payables: | Accrued expenses and other payables: |
| Investment advisory fees | 11491 |
| Administration fees | 1223 |
| Custodian fees | 2198 |
| Transfer agent fees | 5741 |
| Compliance fees | 17 |
| Trustees' fees | 105 |
| Other accrued expenses | 19794 |
| Total Liabilities | 2863205 |
| **Net Assets:** | **Net Assets:** |
| Capital | 28382424 |
| Total accumulated earnings/(loss) | (6243673) |
| Net Assets | $22138751 |
| Shares (unlimited shares authorized with a par value of $0.001 per share): | 3740773 |
| Net asset value: | $5.92 |

---

(a) Includes $2,080,274 of securities on loan.

*See notes to financial statements.*

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statement of Operations**<br> For the Year Ended December 31, 2022 |

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| | |
|:---|:---|
| | **Victory High Yield <br>VIP Series** |
| **Investment Income:** | **Investment Income:** |
| Dividends | $3692 |
| Interest | 1837479 |
| Securities lending (net of fees) | 26828 |
| Total Income | 1867999 |
| **Expenses:** | **Expenses:** |
| Investment advisory fees | 150725 |
| Administration fees | 13673 |
| Sub-Administration fees | 17519 |
| Custodian fees | 8847 |
| Transfer agent fees | 25908 |
| Trustees' fees | 3078 |
| Compliance fees | 203 |
| Legal and audit fees | 14681 |
| Other expenses | 18516 |
| Recoupment of prior expenses waived/reimbursed by Adviser | 899 |
| Total Expenses | 254049 |
| Expenses waived/reimbursed by Adviser | (30665) |
| Net Expenses | 223384 |
| Net Investment Income (Loss) | 1644615 |
| **Realized/Unrealized Gains (Losses) from Investments:** | **Realized/Unrealized Gains (Losses) from Investments:** |
| Net realized gains (losses) from investment securities | (614500) |
| Net change in unrealized appreciation/depreciation on investment securities | (4817916) |
| Net realized/unrealized gains (losses) on investments | (5432416) |
| Change in net assets resulting from operations | $(3787801) |

---

*See notes to financial statements.*

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statements of Changes in Net Assets** |

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| | | |
|:---|:---|:---|
| | **Victory High Yield VIP Series** | **Victory High Yield VIP Series** |
| | **Year<br>Ended<br>December 31,<br>2022** | **Year<br>Ended<br>December 31,<br>2021** |
| **From Investment Activities:** | **From Investment Activities:** | **From Investment Activities:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income (Loss) | $1644615 | $1622349 |
| Net realized gains (losses) | (614500) | 719581 |
| Net change in unrealized appreciation/depreciation | (4817916) | (602913) |
| Change in net assets resulting from operations | (3787801) | 1739017 |
| Change in net assets resulting from distributions to shareholders | (1678774) | (1738466) |
| Change in net assets resulting from capital transactions | (2410705) | (103585) |
| Change in net assets | (7877280) | (103034) |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of period | 30016031 | 30119065 |
| End of period | $22138751 | $30016031 |
| **Capital Transactions:** | **Capital Transactions:** | **Capital Transactions:** |
| Proceeds from shares issued | $797535 | $3641373 |
| Distributions reinvested | 1678774 | 1738466 |
| Cost of shares redeemed | (4887014) | (5483424) |
| Change in net assets resulting from capital transactions | $(2410705) | $(103585) |
| **Share Transactions:** | **Share Transactions:** | **Share Transactions:** |
| Issued | 118537 | 473954 |
| Reinvested | 280263 | 235884 |
| Redeemed | (716887) | (711051) |
| Change in Shares | (318087) | (1213) |

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*See notes to financial statements.*

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Financial Highlights** |

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*For a Share Outstanding Throughout Each Period*

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Victory High Yield VIP Series** | **Victory High Yield VIP Series** | **Victory High Yield VIP Series** | **Victory High Yield VIP Series** | **Victory High Yield VIP Series** |
| | **Year<br>Ended<br>December 31,<br>2022** | **Year<br>Ended<br>December 31,<br>2021** | **Year<br>Ended<br>December 31,<br>2020** | **Year<br>Ended<br>December 31,<br>2019** | **Year<br>Ended<br>December 31,<br>2018** |
| **Net Asset Value, Beginning of Period** | $7.40 | $7.42 | $7.36 | $6.84 | $6.86 |
| Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: |
| Net investment income (loss) (a) | 0.44 | 0.40 | 0.44 | 0.47 | 0.45 |
| Net realized and unrealized gains <br>(losses) on investments | (1.44) | 0.03 | 0.14 | 0.62 | (0.43) |
| Total from Investment Activities | (1.00) | 0.43 | 0.58 | 1.09 | 0.02 |
| Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: |
| Net investment income | (0.48) | (0.45) | (0.52) | (0.57) | (0.04) |
| Total Distributions to Shareholders | (0.48) | (0.45) | (0.52) | (0.57) | (0.04) |
| **Net Asset Value, End of Period** | $5.92 | $7.40 | $7.42 | $7.36 | $6.84 |
| Total Return (b) (c) | (13.55)% | 5.85% | 7.92% | 15.89% | 0.29% |
| **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** |
| Net Expenses (d) | 0.89% | 0.89% | 0.89% | 0.89% | 0.83% |
| Net Investment Income (Loss) | 6.55% | 5.21% | 6.10% | 6.22% | 6.38% |
| Gross Expenses (d) | 1.01% | 0.99% | 1.04% | 0.99% | 0.83% |
| **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** |
| Net Assets at end of period (000's) | $22139 | $30016 | $30119 | $30739 | $30918 |
| Portfolio Turnover | 42% | 75% | 91% | 60% | 94% |

---

(a) Per share net investment income (loss) has been calculated using the average daily shares method.

(b) Total returns do not reflect the effects of charges deducted pursuant to the terms of The Guardian Insurance & Annuity Company, Inc.'s variable contracts. Inclusion of such charges would reduce the total returns for all periods shown.

(c) Assumes reinvestment of all net investment income and realized capital gain distributions, if any, during the period. Includes adjustments in accordance with U.S. Generally Accepted Accounting Principles and could differ from the reported total return.

(d) Does not include acquired fund fees and expenses, if any.

*See notes to financial statements.*

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements**<br> December 31, 2022 |

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**1. Organization:**

Victory Variable Insurance Funds (the "Trust") is organized as a Delaware statutory trust and the Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. The Trust is comprised of six funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with a par value of $0.001 per share.

The accompanying financial statements are those of Victory High Yield VIP Series (the "Fund"), a series of the Trust. The Fund offers a single class of shares: Class I. The Fund's shares are only available for purchase by certain separate accounts of insurance companies as investments for certain variable annuity plans and variable life insurance contracts issued by those insurance companies. The Fund is classified as diversified under the 1940 Act.

Victory Capital Management Inc. ("VCM" or the "Adviser") is an indirect wholly owned subsidiary of Victory Capital Holdings, Inc., a publicly traded Delaware corporation, and a wholly owned direct subsidiary of Victory Capital Operating, LLC.

Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund. However, based on experience, the Fund expects that risk of loss to be remote.

**2. Significant Accounting Policies:**

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with U.S. Generally Accepted Accounting Principles ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies under Accounting Standards Codification Topic 946.

**Investment Valuation:**

The Fund records investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The valuation techniques described below maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Fund's investments are summarized in the three broad levels listed below:

• Level 1 — quoted prices (unadjusted) in active markets for identical securities

• Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, or credit spreads, applicable to those securities, etc.)

• Level 3 — significant unobservable inputs (including the Adviser's assumptions in determining the fair value of investments)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.

The Adviser, appointed as the valuation designee by the Trust's Board of Trustees' (the "Board"), has established the Pricing and Liquidity Committee (the "Committee"), and subject to Board oversight, the Committee administers and oversees the Fund's valuation policies and procedures, which are approved by the Board.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

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Portfolio securities listed or traded on securities exchanges, including Exchange-Traded Funds ("ETFs"), and American Depositary Receipts ("ADRs"), are valued at the closing price on the exchange or system where the security is principally traded, if available, or at the Nasdaq Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.

Investments in open-end investment companies, other than ETFs, are valued at their net asset value ("NAV"). These valuations are typically categorized as Level 1 in the fair value hierarchy.

Debt securities are valued each business day by a pricing service approved by the valuation designee and subject to the oversight of the Board. The pricing service uses the evaluated bid or the last sale price to value securities. Debt obligations maturing within 60 days may be valued at amortized cost, provided that the amortized cost represents the fair value of such securities. These valuations are typically categorized as Level 2 in the fair value hierarchy.

In the event that price quotations or valuations are not readily available, investments are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded and the actual price realized from the sale of a security may differ materially from the fair value price. Valuing these securities at fair value is intended to cause the Fund's NAV to be more reliable than it otherwise would be.

A summary of the valuations as of December 31, 2022, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed on the Schedule of Portfolio Investments:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks | $95682 | $— | $— | $95682 |
| Senior Secured Loans |  | 4464551 |  | 4464551 |
| Corporate Bonds |  | 15267039 |  | 15267039 |
| Yankee Dollars |  | 1309644 |  | 1309644 |
| Collateral for Securities Loaned | 2772636 |  |  | 2772636 |
| Total | $2868318 | $21041234 | $— | $23909552 |

---

As of December 31, 2022, there were no transfers into/out of Level 3.

**Investment Companies:**

Open-End Funds:

The Fund may invest in portfolios of open-end investment companies. These investment companies value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value by the methods established by the board of directors of the underlying funds.

**Loans:**

Floating rate loans in which the Fund invests are primarily "senior" loans. Senior floating rate loans typically hold a senior position in the capital structure of the borrower, are typically secured by specific collateral, and have a claim on the assets and/or stock of the borrower that is senior to that held by subordinated debtholders and stockholders of the borrower. While these protections may reduce risk, these investments still present significant credit risk. A significant portion of the Fund's floating rate investments may be issued in connection with highly leveraged transactions such as leveraged buyouts, leveraged recapitalization loans, and other types of acquisition financing. Obligations in these types of transactions are subject to greater credit risk (including default and bankruptcy) than many other

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

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investments and may be, or become, illiquid. See note regarding below-investment-grade securities. The Fund may purchase second lien loans (secured loans with a claim on collateral subordinate to a senior lender's claim on such collateral), fixed rate loans, unsecured loans, and other debt obligations. Transactions in loans often settle on a delayed basis, and the Fund may not receive the proceeds from the sale of a loan or pay for a loan purchase for a substantial period of time after entering into the transactions.

**Below-Investment-Grade Securities:**

The Fund may invest in below-investment-grade securities (i.e., lower-quality, "junk" debt), which are subject to various risks. Lower-quality debt is considered to be speculative because it is less certain that the issuer will be able to pay interest or repay the principal than in the case of investment-grade debt. These securities can involve a substantially greater risk of default than higher-rated securities, and their values can decline significantly over short periods of time. Lower-quality debt securities tend to be more sensitive to adverse news about their issuers, the market and the economy in general, than higher-quality debt securities. The market for these securities can be less liquid, especially during periods of recession or general market decline.

**Investment Transactions and Related Income:**

Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date or the last business day of the reporting period. Interest income is determined on the basis of coupon interest accrued using the effective interest method which adjusts, where applicable, the amortization of premiums or accretion of discounts. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are recorded on the identified cost basis. Paydown gains or losses on applicable securities, if any, are recorded as components of Interest income on the Statement of Operations.

The Fund may receive other income from investments in loan assignments and/or unfunded commitments, including amendment fees, consent fees, and commitment fees. These fees are recorded as income when received. These amounts, if received, are included in Interest income on the Statement of Operations.

**Securities Lending:**

The Fund, through a Securities Lending Agreement with Citibank, N.A. ("Citibank"), may lend its securities to qualified financial institutions, such as certain broker-dealers and banks, to earn additional income, net of income retained by Citibank. Borrowers are required to initially secure their loans for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are generally cured the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities and other securities as permitted by Securities and Exchange Commission ("SEC") guidelines. The cash collateral is invested in short-term instruments or cash equivalents, primarily open-end investment companies, as noted on the Fund's Schedule of Portfolio Investments. The Fund effectively does not have control of the non-cash collateral and therefore it is not disclosed on the Fund's Schedule of Portfolio Investments. Collateral requirements are determined daily based on the value of the Fund's securities on loan as of the end of the prior business day. During the time portfolio securities are on loan, the borrower will pay the Fund any dividends or interest paid on such securities plus any fee negotiated between the parties to the lending agreement. The Fund also earns a return from the collateral. The Fund pays Citibank various fees in connection with the investment of cash collateral and fees based on the investment income received from securities lending activities. Securities lending income (net of these fees) is disclosed on the Statement of Operations. Loans are terminable upon demand and the borrower must return the loaned securities within the lesser of one standard settlement period or five business days. Although risk is mitigated by the

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

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collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. In addition, there is a risk that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower.

The Fund's agreement with Citibank does not include master netting provisions. Non-cash collateral received by the Fund may not be sold or repledged, except to satisfy borrower default.

The following table is a summary of the Fund's securities lending transactions as of December 31, 2022.

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| | | |
|:---|:---|:---|
| **Value of <br>Securities on Loan** | **Non-Cash <br>Collateral** | **Cash <br>Collateral** |
| $2080274 | $— | $2772636 |

---

**Federal Income Taxes:**

The Fund intends to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes is required in the financial statements. The Fund has a tax year end of December 31.

For the year ended December 31, 2022, the Fund did not incur any income tax, interest, or penalties, and has recorded no liability for net unrecognized tax benefits relating to uncertain tax positions.

Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax years, which includes the current fiscal tax year end). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

**Allocations:**

Expenses directly attributable to the Fund are charged to the Fund, while expenses that are attributable to more than one fund in the Trust, or jointly with an affiliated trust, are allocated among the respective funds in the Trust and/or an affiliated trust based upon net assets or another appropriate basis.

**3. Purchases and Sales:**

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the year ended December 31, 2022, were as follows:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Excluding <br>U.S. Government Securities** | &nbsp;&nbsp;&nbsp;&nbsp;**Excluding <br>U.S. Government Securities** |
| **Purchases** | **Sales** |
| $10068660 | $12638599 |

---

**4. Fees and Transactions with Affiliates and Related Parties:**

**Investment Advisory Fees:**

Investment advisory services are provided to the Fund by the Adviser, which is a New York corporation registered as an investment adviser with the SEC.

Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive fees accrued daily and paid monthly at an annualized rate of 0.60% of the Fund's average daily net assets. Amounts incurred and paid to VCM for the year ended December 31, 2022, are reflected on the Statement of Operations as Investment advisory fees.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

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VCM has entered into a Sub-Advisory Agreement with Park Avenue Institutional Advisers LLC ("Park Avenue") with respect to the Fund. Park Avenue is responsible for providing day-to-day investment advisory services to the Fund, subject to the oversight of the Board. Sub-investment advisory fees, which are paid by VCM to Park Avenue, do not represent a separate or additional expense to the Fund.

**Administration and Servicing Fees:**

VCM also serves as the Fund's administrator and fund accountant. Under the Administration and Fund Accounting Agreement, VCM is entitled to receive fees based on a percentage of the average daily net assets of the Trust, Victory Portfolios and Victory Portfolios II. The tiered rates at which VCM is paid by the Funds are shown in the table below:

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** |
| **Up to $15 billion** | **Up to $15 billion** | **$15 billion – $30 billion** | **$15 billion – $30 billion** | **Over $30 billion** |
| 0.08 | %, plus | 0.05 | %, plus | 0.04% |

---

Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Administration fees.

Citi Fund Services Ohio, Inc. ("Citi"), an affiliate of Citibank, acts as sub-administrator and sub-fund accountant to the Fund pursuant to the Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Fund reimburses VCM and Citi for out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Sub-Administration fees.

The Fund (as part of the Trust) has entered into an agreement with the Adviser to provide compliance services, pursuant to which the Adviser furnishes its compliance personnel, including the services of the Chief Compliance Officer ("CCO"), and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration, and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The CCO is an employee of the Adviser, which pays the compensation of the CCO and support staff. The funds in the Trust, Victory Portfolios, Victory Portfolios II and USAA Mutual Funds (collectively, the "Victory Funds Complex"), in aggregate, compensate the Adviser for these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Compliance fees.

**Transfer Agency Fees:**

FIS Investor Services, LLC ("FIS") serves as the Fund's transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Transfer agent fees.

**Distributor/Underwriting Services:**

Victory Capital Services, Inc. (the "Distributor"), an affiliate of the Adviser, serves as Distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust, and receives no fee or other compensation for these services.

**Other Fees:**

Citibank serves as the Fund's custodian. The Fund pays Citibank a fee for providing these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Custodian fees.

Sidley Austin LLP provides legal services to the Trust.

The Adviser has entered into an expense limitation agreement with the Fund until at least April 30, 2023. Under the terms of the agreement, the Adviser has agreed to waive fees or reimburse certain

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

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expenses to the extent that ordinary operating expenses incurred in any fiscal year exceed the expense limit for the Fund. Such excess amounts will be the liability of the Adviser. Acquired fund fees and expenses, interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund's business are excluded from the expense limits. As of December 31, 2022, the expense limit (excluding voluntary waivers) is 0.89%.

Under the terms of the expense limitation agreement, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period of up to three years (thirty-six (36) months) after the waiver or reimbursement took place, subject to the lesser of any operating expense limits in effect at the time of: (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount.

As of December 31, 2022, the following amounts are available to be repaid to the Adviser. The Fund has not recorded any amounts available to be repaid as a liability due to an assessment that such repayments are not probable at December 31, 2022.

---

| | | | |
|:---|:---|:---|:---|
| **Expires<br>2023** | **Expires<br>2024** | **Expires<br>2025** | **Total** |
| $42463 | $30244 | $30665 | $103372 |

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The Adviser may voluntarily waive or reimburse additional fees to assist the Fund in maintaining competitive expense ratios. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the year ended December 31, 2022.

Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, administrator, fund accountant, sub-administrator, sub-fund accountant, custodian, legal counsel, and Distributor.

**5. Risks:**

The Fund may be subject to other risks in addition to these identified risks.

**<u>High-Yield/Junk Bond Risk</u>** — Lower-quality debt securities can involve a substantially greater risk of default than higher quality debt securities, and their values can decline significantly over short and longer periods of time. Lower-quality debt securities tend to be more sensitive to adverse news about the issuer, or the market or economy in general.

**<u>Debt Securities Risk</u>** — The value of a debt security or other income-producing security changes in response to various factors, including, for example, market-related factors (such as changes in interest rates or changes in the risk appetite of investors generally) and changes in the actual or perceived ability of the issuer (or of issuers generally) to meet its (or their) obligations. Other factors that may affect the value of debt securities, include, among others, public health crises and responses by governments and companies to such crises. These and other events may affect the creditworthiness of the issuer of a debt security and may impair an issuer's ability to timely meet its debt obligations as they come due.

**<u>Floating Rate Loan Risk</u>** — Investments in floating rate loans are generally subject to the same risks as investments in other types of debt securities, including, in many cases, investments in high-yield/junk bonds. There may be limited public information available regarding the loan. They may be difficult to value and may be illiquid. The receipt of principal and interest on some loans may be subject to the credit risk of a financial institution that issues or administers the loan. In certain circumstances, the Fund may not have the same protections available to investors under the federal securities laws. In times of unusual or adverse market, economic or political conditions, floating rate loans may experience higher than normal default rates. In the event of a recession or serious credit event, among other eventualities, the value of the Fund's investments in floating rate loans are more likely to decline. Transactions in loans often settle on a delayed basis, and the Fund may not receive the proceeds from

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

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the sale of a loan for a substantial period of time after the sale. The secondary market for floating rate loans is limited and, thus, the Fund's ability to sell or realize the full value of its investment in these loans to reinvest sale proceeds or to meet redemption obligations may be impaired. The terms of many floating rate loans and other instruments are tied to the London Interbank Offered Rate ("LIBOR"), which functions as a reference rate or benchmark. In March 2021, the UK Financial Conduct Authority (the "FCA"), which is the regulator of the LIBOR administrator, announced that LIBOR settings will cease to be provided by any administrator or will no longer be representative after specified dates, which will be June 30, 2023, in the case of the principal U.S. dollar LIBOR tenors (overnight and one, three, six, and 12 month), and December 31, 2021, in all other cases (i.e., one week and two month U.S. dollar LIBOR and all tenors of non-U.S. dollar LIBOR). The discontinuation of LIBOR may cause increased volatility and illiquidity in the markets for instruments with terms tied to LIBOR or other adverse consequences for these instruments. These events may adversely affect the Fund and its investments in such instruments.

**<u>LIBOR Discontinuation Risk</u>** — The London Interbank Offered Rate ("LIBOR") discontinuation may adversely affect the financial markets generally and the Fund's operations, finances and investments specifically. LIBOR has been the principal floating-rate benchmark in the financial markets. However, LIBOR has been or will be discontinued as a floating rate benchmark. The date of discontinuation depends on the LIBOR currency and tenor. With limited exceptions, no new LIBOR obligations will be entered into after December 31, 2021. Existing LIBOR obligations have transitioned or will transition to another benchmark, depending on the LIBOR currency and tenor. For some existing LIBOR-based obligations, the contractual consequences of the discontinuation of LIBOR may not be clear.

Non-LIBOR floating-rate obligations, including Secured Overnight Financing Rate ("SOFR")-based obligations, may have returns and values that fluctuate more than those of floating-rate debt obligations that are based on LIBOR or other rates. Also, because SOFR and some alternative floating rates are relatively new market indexes, markets for certain non-LIBOR obligations may never develop or may not be liquid. Market terms for non-LIBOR floating rate obligations, such as the spread over the index reflected in interest-rate provisions, may evolve over time, and prices of non-LIBOR floating rate obligations may be different depending on when they are issued and changing views about correct spread levels.

Various SOFR-based rates, including SOFR-based term rates, and various non-SOFR-based rates are expected to develop in response to the discontinuation of U.S. dollar LIBOR, which may create various risks for the Fund and the financial markets more generally. There are non-LIBOR forward-looking floating rates that are not based on SOFR and that may be considered by participants in the financial markets as LIBOR alternatives. Such rates include AMERIBOR (American Interbank Offered Rate), BSBY (Bloomberg Short-Term Bank Yield Index) and BYI (Bank Yield Index). Unlike forward-looking SOFR-based term rates, such rates are intended to reflect a bank credit spread component.

It is not clear how replacement rates for LIBOR — including SOFR-based rates and non-SOFR-based rates — will develop and to what extent they will be used. There is no assurance that these replacement rates will be suitable substitutes for LIBOR, and thus the substitution of such rates for LIBOR could have an adverse effect on the Fund and the financial markets more generally. Concerns about market depth and stability could affect the development of non-SOFR-based term rates, and such rates may create various risks, which may or may not be similar to the risks relating to SOFR.

**<u>Market Risk</u>** — Overall market risks may affect the value of the Fund. Domestic and international factors such as political events, war, terrorism, trade disputes, inflation rates, interest rate levels and other fiscal and monetary policy changes, cybersecurity incidents, pandemics and other public health crises, sanctions against a particular foreign country, its nationals, businesses or industries and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods or other catastrophes, may add to instability in global economies and markets generally, and may lead to increased market volatility. Global economies and financial markets are highly interconnected, which increases the possibility that conditions in one country or region might adversely affect issuers in another country or region. The impact of these and other factors may be short-term or may last for extended periods.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

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**6. Borrowing and Interfund Lending:**

**Line of Credit:**

The Victory Funds Complex participates in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 27, 2022, with a termination date of June 26, 2023. Under the agreement with Citibank, the Victory Funds Complex may borrow up to $600 million, of which $300 million is committed and $300 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory Floating Rate Fund, another series of the Victory Funds Complex, with Victory Floating Rate Fund paying the related commitment fees for that amount. The purpose of the Line of Credit is to meet temporary or emergency cash needs. For the year ended December 31, 2022, Citibank received an annual commitment fee of 0.15% on $300 million for providing the Line of Credit. Each fund in the Victory Funds Complex paid a pro-rata portion of the commitment fees plus any interest on amounts borrowed. For the period from January 1, 2022, through June 27, 2022, interest was based on the one-month LIBOR plus one percent. Effective with the renewal, for the period June 28, 2022, through December 31, 2022, interest was based on the one-month SOFR plus 1.10 percent. The Fund is not expecting any material financial impact of transition from LIBOR to SOFR. Interest charged to the Fund during the period, if applicable, is reflected on the Statement of Operations under Line of credit fees.

The Fund had no borrowings under the Line of Credit agreement during the year ended December 31, 2022.

**Interfund Lending:**

The Trust and the Adviser rely on an exemptive order granted by the SEC in March 2017 (the "Order"), permitting the establishment and operation of an Interfund Lending Facility (the "Facility"). The Facility allows the Fund to directly lend and borrow money to or from any other fund in the Victory Funds Complex that is permitted to participate in the Facility, relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are allowed for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. As a Borrower, interest charged to the Fund, if any, during the period, is reflected on the Statement of Operations under Interfund lending fees. As a Lender, interest earned by the Fund, if any, during the period, is reflected on the Statement of Operations under Interfund lending.

The Fund did not utilize or participate in the Facility during the year ended December 31, 2022.

**7. Federal Income Tax Information:**

The Fund intends to distribute any net investment income annually. Distributable net realized gains, if any, are declared and paid at least annually.

The amounts of dividends from net investment income and distributions from net realized gains (collectively, distributions to shareholders) are determined in accordance with federal income tax regulations, which may differ from GAAP. To the extent these "book/tax" differences are permanent in nature (e.g., net operating loss and distribution reclassification), such amounts are reclassified within the components of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales) do not require reclassification. To the extent dividends and distributions exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. Net investment losses incurred by the Fund may be reclassified as an offset to capital on the accompanying Statement of Assets and Liabilities.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

As of December 31, 2022, on the Statement of Assets and Liabilities, there were no permanent book-to-tax difference reclassification adjustments.

The tax character of distributions paid during the tax years ended, as noted below, were as follows (total distributions paid may differ from the Statements of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid).

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| | | | |
|:---|:---|:---|:---|
| **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |
| **Distributions <br>Paid From:** | | **Distributions <br>Paid From:** | |
| **Ordinary<br>Income** | **** <br>**Total<br>Distributions<br>Paid** | **Ordinary<br>Income** | **** <br>**Total<br>Distributions<br>Paid** |
| $1678774 | $1678774 | $1738466 | $1738466 |

---

As of December 31, 2022, the components of accumulated earnings/(loss) on a tax basis were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Accumulated<br>Earnings** | **Accumulated<br>Capital and<br>Other<br>Losses** | **Unrealized<br>Appreciation<br>(Depreciation)\*** | **Total<br>Accumulated<br>Earnings<br>(Loss)** |
| $1670339 | $1670339 | $(3550391) | $(4363621) | $(6243673) |

---

\* The difference between the book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to as-of trade activity.

As of December 31, 2022, the Fund had net capital loss carryforwards as shown in the table below. It is unlikely that the Board will authorize a distribution of capital gains realized in the future until the capital loss carryforwards have been used.

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| | | |
|:---|:---|:---|
| **Short-Term<br>Amount** | **Long-Term<br>Amount** | **Total** |
| $672880 | $2877511 | $3550391 |

---

As of December 31, 2022, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation (depreciation) for investments were as follows:

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| | | | |
|:---|:---|:---|:---|
| **Cost of<br>Investments<br>for Federal<br>Tax Purposes** | **Net Gross<br>Unrealized<br>Appreciation** | **Gross<br>Unrealized<br>Depreciation** | **Net<br>Unrealized<br>Appreciation/<br>Depreciation** |
| $28273173 | $68167 | $(4431788) | $(4363621) |

---

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Shareholders and Board of Trustees of Victory Variable Insurance Funds

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities, including the schedule of portfolio investments, of Victory High Yield VIP Series (the "Fund"), a series of Victory Variable Insurance Funds, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the related notes, and the financial highlights for each of the four years in the period then ended (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, the results of its operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

The Fund's financial highlights for the year ended December 31, 2018, were audited by other auditors whose report dated February 15, 2019, expressed an unqualified opinion on those financial highlights.

**Basis for Opinion**

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the investment companies advised by Victory Capital Management, Inc. since 2015

![](j2325453_ja006.jpg)

COHEN & COMPANY, LTD.<br>Cleveland, Ohio<br>February 16, 2023

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information**<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Trustee and Officer Information**

**Board of Trustees:**

Overall responsibility for management of the Trust rests with the Board. The Trust is managed by the Board in accordance with the laws of the State of Delaware. There are currently nine Trustees, eight of whom are not "interested persons" of the Trust within the meaning of that term under the 1940 Act ("Independent Trustees") and one of whom is an "interested person" of the Trust within the meaning of that term under the 1940 Act ("Interested Trustee"). The Trustees, in turn, elect the officers of the Trust to actively supervise its day-to-day operations.

The following tables list the Trustees, their date of birth, their position with the Trust, their commencement of service, their principal occupations during the past five years, and any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended, or who file reports under that Act. Each Trustee oversees 6 portfolios in the Trust, 37 portfolios in Victory Portfolios, and 25 portfolios in Victory Portfolios II, each a registered investment company that, together with the Trust, comprise the Victory Fund Complex. David C. Brown is a Trustee of USAA Mutual Funds and oversees 45 portfolios of the USAA Mutual Funds Trust. Each Trustee's address is c/o Victory Portfolios, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. Each Trustee has an indefinite term.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position<br>Held with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation<br>During Past 5 Years** | **Other<br>Directorships<br>Held During<br>Past 5 Years** |
| ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** |
| David Brooks Adcock, <br>October 1951 | Trustee | February 2005 | Consultant (since 2006). | Chairman, Board of Trustees, Turner Funds (December 2016-December 2017). |
| Nigel D. T. Andrews, <br>April 1947 | Trustee | August 2002 | Retired. | Director, Carlyle Secured Lending, Inc. (formerly TCG BDC I, Inc.) (since 2012); Director, Carlyle Credit Solutions, Inc. (formerly TCG BDC II, Inc.) (since 2017); Trustee, Carlyle Secured Lending III (since 2021). |
| E. Lee Beard,\* <br>August 1951 | Trustee | February 2005 | Retired. | None. |
| Dennis M. Bushe, <br>January 1944 | Trustee | July 2016 | Retired. | None. |

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position<br>Held with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation<br>During Past 5 Years** | **Other<br>Directorships<br>Held During<br>Past 5 Years** |
| John L. Kelly, <br>April 1953 | Chair and Trustee | February 2015 | Partner, McCarvill Capital Partners (September 2016- September 2017). | Director, Caledonia Mining Corporation (since May 2012). |
| David L. Meyer,<br>April 1957 | Trustee | December 2008 | Retired. | None. |
| Gloria S. Nelund, <br>May 1961 | Trustee | July 2016 | Chair, CEO and Co-Founder of TriLinc Global, LLC, an investment firm. | TriLinc Global Impact Fund, LLC (since 2012). |
| Timothy Pettee,<br>April 1958 | Advisory Trustee | January 2023 | Chief Investment Officer, Hoya Capital Real Estate LLC (since February 2022); Chief Investment Officer, Sun America Asset Management Corp. (January 2003-July 2021). | None. |
| Leigh A. Wilson, <br>December 1944 | Trustee | February 1998 | Private Investor. | Chair (since 2013), Caledonia Mining Corporation. |
| ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** |
| David C. Brown,\*\* <br>May 1972 | Trustee | May 2008 | Chief Executive Officer and Chairman (since 2013), the Adviser; Chief Executive Officer and Chairman (since 2013), Victory Capital Holdings, Inc.; Director (since 2013), Victory Capital Services, Inc.; Director (since 2019), Victory Capital Transfer Agency, Inc. | Trustee, USAA Mutual Funds Trust; Board Member, Victory Capital Services, Inc. |

---

\* The Board has designated Ms. Beard as its Audit Committee Financial Expert.

\*\* Mr. Brown is an "Interested Person" by reason of his relationship with the Adviser.

The Statement of Additional Information includes additional information about the Trustees of the Trust and is available, without charge, by calling 800-539-3863.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Officers:**

The officers of the Trust, their date of birth, their commencement of service, and their principal occupations during the past five years, are detailed in the following table. Each officer serves until the earlier of his or her resignation, removal, retirement, death, or the election of a successor. The mailing address of each officer of the Trust is 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. The officers of the Trust receive no compensation directly from the Trust for performing the duties of their offices.

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| | | | |
|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation During Past 5 Years** |
| Christopher K. Dyer, <br>February 1962 | President | February 2006 | Director of Mutual Fund Administration, the Adviser (since 2004); Chief Operating Officer, Victory Capital Services, Inc. (since 2020); Vice President, Victory Capital Transfer Agency, Inc. (since 2019). |
| Scott A. Stahorsky, <br>July 1969 | Vice President | December 2014 | Manager, Fund Administration, the Adviser. (since 2015) |
| Thomas Dusenberry,<br>July 1977 | Secretary | May 2022 | Manager, Fund Administration, the Adviser (since 2022); Treasurer and Principal Financial Officer (2020-2022), Assistant Treasurer (2019), Salient MF Trust, Salient Midstream, MLP Fund and Forward Funds; Principal Financial Officer (2018-2021) and Treasurer (2020-2021), Salient Private Access Funds and Endowment PMF Funds; Senior Vice President of Fund Accounting and Operations, Salient Partners (2020-2022); Director of Fund Operations, Salient Partners (2016-2019). |
| Allan Shaer, <br>March 1965 | Treasurer | May 2017 | Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc. (since 2016) |
| Christopher A. Ponte, <br>March 1984 | Assistant Treasurer | December 2017 | Manager, Fund Administration, the Adviser (since 2017); Chief Financial Officer, Victory Capital Services, Inc. (since 2018). |
| Sean Fox,<br>September 1976 | Chief Compliance<br>Officer | June 2022 | Sr. Compliance Officer, the Adviser (since 2019); Compliance Officer, the Adviser (2015-2019). |
| Charles Booth,<br>April 1960 | Anti-Money Laundering Compliance Officer and Identity Theft Officer | May 2015 | Director, Regulatory Administration and CCO Support Services, Citi Fund Services Ohio, Inc. (since 2007). |
| Jay G. Baris, <br>January 1954 | Assistant Secretary | February 1998 | Partner, Sidley Austin LLP (since 2020); Partner, Shearman & Sterling LLP (2018-2020). |

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Proxy Voting and Portfolio Holdings Information**

**Proxy Voting:**

Information regarding the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-539-3863. The information is also included in the Fund's Statement of Additional Information, which is available on the SEC's website at sec.gov.

Information relating to how the Fund voted proxies relating to portfolio securities held during the most recent 12 months ended June 30 is available on the SEC's website at sec.gov.

**Availability of Schedules of Portfolio Investments:**

The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarter of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's website at sec.gov.

**Expense Example**

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2022, through December 31, 2022.

The Actual Expense figures in the table below provide information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

The Hypothetical Expense figures in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

Please note the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical expenses in the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Beginning<br>Account Value<br>7/1/22** | **Actual<br>Ending<br>Account Value<br>12/31/22** | **Hypothetical<br>Ending<br>Account Value<br>12/31/22** | **Actual<br>Expenses Paid <br>During Period<br>7/1/22-12/31/22\*** | **Hypothetical<br>Expenses Paid <br>During Period<br>7/1/22-12/31/22\*** | **Annualized<br>Expense Ratio<br>During Period<br>7/1/22-12/31/22** |
| $1000.00 | $1007.40 | $1020.72 | $4.50 | $4.53 | 0.89% |

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\* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 184/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

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&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Additional Federal Income Tax Information**

For the year ended December 31, 2022, the Fund paid qualified dividend income for the purposes of reduced individual federal income tax rates of less than 1%.

Dividends qualified for corporate dividends received deductions of less than 1%.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Considerations of the Board in Continuing the Investment Advisory Agreements**

The Board approved the advisory agreement with the Adviser, on behalf of the Fund (the "Advisory Agreement"), and the sub-advisory agreement between the Adviser and Park Avenue Institutional Advisers LLC (the "Sub-Adviser"), on behalf of the Fund (the "Sub-Advisory Agreement" and together with the Advisory Agreement, the "Agreements"), at a meeting, which was called for that purpose, on December 6, 2022. The Board also considered information relating to the Fund and the Agreements provided throughout the year and, more specifically, at the meetings on October 18, 2022 and December 6, 2022. In considering whether to approve the Agreements, the Board requested, and the Adviser and provided, information that the Board believed to be reasonably necessary to reach its conclusions.

The Board, including the Independent Trustees, evaluated this information along with other information obtained throughout the year and was advised by legal counsel to the Fund and independent legal counsel to the Independent Trustees. In addition, the Independent Trustees considered a past review of their overall process for conducting the annual review of the Fund's advisory arrangements by a consultant retained through their counsel.

The Board considered the Fund's advisory fee, expense ratio and investment performance as significant factors in determining whether the Agreements should be continued. The Board reviewed numerous factors with respect to the Fund, including the services to be provided by the Sub-Adviser. In considering whether the compensation paid to the Adviser was fair and reasonable, the Board also evaluated, among other things, the following factors:

• The requirements of the Fund for the services provided by the Adviser;

• The nature, quality and extent of the services provided and expected to be provided;

• The performance of the Fund as compared to comparable funds;

• The fees payable for the services and whether the fee arrangements provided for economies of scale that would benefit Fund shareholders as the Fund grows (acknowledging that economies of scale can be complex to assess and typically are not directly measurable);

• Whether the fee would be sufficient to enable the Adviser to attract and retain experienced personnel and continue to provide quality services to the Fund;

• The fees paid by other clients of the Adviser whose accounts are managed in a similar investment style and any differences in the services provided to the other clients compared to those provided to the Fund;

• The total expenses of the Fund;

• Management's commitment to operating the Fund at competitive expense levels;

• The profitability of the Adviser (as reflected by comparing fees earned against an estimate of the Adviser's costs) with respect to the Adviser's relationship with the Fund;

• Research and other service benefits received by the Adviser obtained through payment of client commissions for securities transactions;

• Other benefits received by the Adviser, and its affiliates, including revenues paid to the Adviser, or its affiliates, by the Fund for administration and fund accounting services, shareholder services and distribution;

• The capabilities and financial condition of the Adviser;

• Current economic and industry trends; and

• The historical relationship between the Fund and the Adviser.

The Board also considered a memorandum that it requested the Adviser to prepare that addressed the Fund's total net expense ratio that ranked within the fourth quartile (most expensive) in relation to its peers as evaluated by a consultant. The Adviser reviewed additional relevant circumstances, which included, among other things, the Fund's performance, and small or decreasing assets.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

In considering whether the compensation paid to the Sub-Adviser was fair and reasonable, the Board also evaluated, among other things, the following factors:

• The requirements of the Fund for the services provided by the Sub-Adviser;

• The nature, quality and extent of the services provided and expected to be provided;

• The fees payable for the services;

• Representations by the Adviser that the sub-advisory fee for the Fund is within the range of fees agreed to in the market for similar services;

• Whether the fee would be sufficient to enable the Sub-Adviser to attract and retain experienced personnel and continue to provide quality services to the Fund;

• Management's commitment to operating the Fund at competitive expense levels;

• Research and other service benefits received by the Sub-Adviser obtained through payment of client commissions for securities transactions;

• Other benefits received by the Sub-Adviser as a result of its sub-advisory relationship with the Fund;

• The capabilities and financial condition of the Sub-Adviser;

• The nature, quality and extent of the oversight and compliance services provided by the Adviser;

• Current economic and industry trends; and

• The historical relationship between the Fund and the Sub-Adviser.

The Board reviewed the Fund's current management fee, comprised of the advisory fee plus the administrative services fee paid to the Adviser, in the context of the Adviser's profitability with respect to the Fund. The Board retained an independent, third-party consultant to provide comparative information about fees, expenses and performance, and to design and maintain a database of relevant information designed to assist the Board in retrieving and analyzing comparative information. The Board met with the consultant to review its inputs and methodologies, among other things. The Board compared the Fund's total operating expense ratio on a net and gross basis with a universe of comparable mutual funds compiled by the consultant and a peer group of funds with similar investment strategies selected by that consultant from the universe. The Board reviewed the factors and methodology used by the consultant in the selection of the Fund's peer group, including the consultant's selection of a broad universe of funds, the more specific universe of comparable funds, and peer groups of funds with comparable investment strategies and asset levels, among other factors. The Board also reviewed any changes to the consultant's methodology as compared to the prior year, including those resulting from the Adviser's input, if any. The Board also reviewed fees and other information related to the Adviser's management of similarly managed institutional or private accounts, and the differences in the services provided to the other accounts, to the extent applicable. The Board noted that the advisory fee arrangements for the Fund do not include breakpoints, which would be a structure that results in reduced fees as a fund grows. The Board also considered the Adviser's commitment to limit expenses as discussed in more detail below.

The Board also reviewed the compliance and administrative services provided to the Fund by the Adviser and its affiliates, including the Adviser's oversight of the Fund's day-to-day operations and oversight of Fund accounting, assistance in meeting legal and regulatory requirements, and other services necessary for the operation of the Fund and the Trust.

The Board considered information concerning the fee paid to the Sub-Adviser under the Sub-Advisory Agreement. The Board considered the relative roles and responsibilities of the Adviser and the Sub-Adviser with respect to the Fund and noted that, among other things: (1) the sub-advisory fees for the Fund are paid by the Adviser and, therefore, are not a direct expense of the Fund; and (2) the Adviser supervises the Sub-Adviser. The Board also considered the Adviser's representation that the fees to be paid to the Sub-Adviser are within the range of sub-advisory fees paid to other sub-advisers for similar services. The Board reviewed fees and other information related to the Sub-Adviser's management of similarly managed institutional or private accounts, and the differences in the services provided to the other accounts. The Board recognized that because the sub-advisory fees are paid by the Adviser, any arrangement by the Sub-Adviser to either increase or reduce its fee would have no direct impact on the Fund or its shareholders.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

The Board reviewed the Fund's performance over one-, three-, five- and ten-year periods against the performance of the Fund's selected peer group and benchmark index. The Board recognized that the performance of the Fund and the peer group funds are net of expenses, while the performance of the benchmark index reflects gross returns.

The Board reviewed various other specific factors with respect to the Fund, as described below. In their deliberations, the Trustees did not rank the importance of any particular information or factor considered and each Trustee may have attributed different weights to various factors.

The Board concluded that the Fund's gross annual management fee was reasonable as compared to the median gross management fee charged to the funds in the Fund's peer group. The Board noted that the Fund's net annual expense ratio, taking into account any shareholder servicing or distribution fees, was reasonable as compared to the median expense ratio for the peer group. The Board considered the Adviser's contractual agreement to waive its fees and reimburse expenses for a specified period of time, as described in the Fund's prospectus.

The Board then compared the Fund's performance for the one-, three-, five- and ten-year periods ended June 30, 2022, to that of the median performance of the Fund's peer group and benchmark index and considered the fact that the Fund underperformed both the benchmark index and peer group median for the one-year period, and outperformed both the benchmark index and the peer group median for the three-, five- and ten-year periods.

Having considered, among other things: (1) that the Fund's management fee was within the ranges of advisory fees charged to comparable mutual funds; (2) that the Fund's total expense ratio was reasonable; (3) the Adviser's willingness to limit the expenses for a period of time would provide stability to the Fund's expenses during that period; and (4) the performance of the Fund, the Board concluded that the Agreement continued to be in the best interests of the Fund's shareholders.

**Conclusion**

Based on its review of the information requested and provided, and following extended discussions, the Board determined that the Agreement, on behalf of the Fund, was consistent with the best interests of the Fund and its shareholders, and the Board unanimously approved the Agreement, on behalf of the Fund, for an additional annual period on the basis of the foregoing review and discussions and the following considerations, among others:

• The fairness and reasonableness of the investment advisory fee payable to the Adviser under the Agreement in light of the investment advisory services provided, the costs of these services, the profitability of the Adviser's relationship with the Fund and the comparability of the fee paid to the fees paid by other investment companies;

• The nature, quality and extent of the investment advisory services provided by the Adviser;

• The Adviser's entrepreneurial commitment to the management of the Fund and the creation of a broad-based family of funds, which entails a substantial commitment of the Adviser's resources to the successful operation of the Fund;

• The Adviser's representations regarding its staffing and capabilities to manage the Fund, including the retention of personnel with relevant portfolio management experience;

• The Adviser's efforts to enhance investment results by, among other things, developing and supporting quality portfolio management teams;

• The Adviser's oversight of the Sub-Adviser; and

• The overall high quality of the personnel, operations, financial condition, investment management capabilities, methodologies and performance of the Adviser.

Based on its review of the information requested and provided, and following extended discussions, the Board concluded, among other things, that the Sub-Advisory Agreement, with respect to Fund, was consistent with the best interests of the Fund and its shareholders and unanimously approved the Sub-Advisory Agreement

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

(including the fees to be charged for services thereunder), on the basis of the foregoing review and discussions and the following considerations, among others:

• The fairness and reasonableness of the investment advisory fee payable to the Sub-Adviser under the Sub-Advisory Agreement in light of the investment advisory services provided, the costs of these services and the estimated profitability of the Sub-Adviser's relationship with the Fund;

• The relative roles and responsibilities of the Adviser and the Sub-Adviser under the Sub-Advisory Agreement;

• The nature, quality and extent of the investment advisory services provided by the portfolio management team of the Sub-Adviser which have resulted in each Fund achieving its stated investment objective;

• The Sub-Adviser's representations regarding its staffing and capabilities to manage the Fund; and

• The overall high quality of the personnel, operations, financial condition, investment management capabilities, methodologies and performance of the Sub-Adviser.

------

**Privacy Policy**

**Protecting the Privacy of Information**

The Trust respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain personal information about you. This is the information we collect from you on applications or other forms, and from the transactions you make with us or third parties. It may include your name, address, social security number, account transactions and balances, and information about investment goals and risk tolerance.

We do not disclose any information about you or about former customers to anyone except as permitted or required by law. Specifically, we may disclose the information we collect to companies that perform services on our behalf, such as the transfer agent that processes shareholder accounts and printers and mailers that assist us in the distribution of investor materials. We may also disclose this information to companies that perform marketing services on our behalf. This allows us to continue to offer you Victory investment products and services that meet your investing needs, and to effect transactions that you request or authorize. These companies will use this information only in connection with the services for which we hired them. They are not permitted to use or share this information for any other purpose.

To protect your personal information internally, we permit access only by authorized employees and maintain physical, electronic, and procedural safeguards to guard your personal information.\*

\* You may have received communications regarding information about privacy policies from other financial institutions which gave you the opportunity to "opt-out" of certain information sharing with companies which are not affiliated with that financial institution. The Trust does not share information with other companies for purposes of marketing solicitations for products other than the Trust. Therefore, the Trust does not provide opt-out options to their shareholders.

------

Victory Funds<br>P.O. Box 182593<br>Columbus, Ohio 43218-2593

![](j2325453_za007.jpg)

Visit our website at: Call Victory at: <br> vcm.com 800-539-FUND (800-539-3863)

VVIF-RS-HYVIP-AR (12/22)

------

![](j2325454_aa001.jpg)

December 31, 2022

Annual Report

Victory Variable Insurance Funds

Victory RS International VIP Series

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vcm.com

News, Information And Education 24 Hours A Day, 7 Days A Week

The Victory Capital website gives fund shareholders, prospective shareholders, and investment professionals a convenient way to access fund information, get guidance, and track fund performance anywhere they can access the Internet. The site includes:

• Detailed performance records

• Daily share prices

• The latest fund news

• Investment resources to help you become a better investor

• A section dedicated to investment professionals

Whether you're a potential investor searching for the fund that matches your investment philosophy, a seasoned investor interested in planning tools, or an investment professional, vcm.com has what you seek. Visit us anytime. We're always open.

------

*Victory Variable Insurance Funds*

*Table of Contents*

---

| | |
|:---|:---|
| **Shareholder Letter (Unaudited)** | **3** |
| **Manager's Commentary (Unaudited)** | **5** |
| **Investment Overview (Unaudited)** | **6** |
| **Investment Objective & Portfolio Holdings<br>(Unaudited)** | **7** |
| **Schedule of Portfolio Investments** | **8** |
| **Financial Statements** | **Financial Statements** |
| *Statement of Assets and Liabilities* | **13** |
| *Statement of Operations* | **14** |
| *Statements of Changes in Net Assets* | **15** |
| *Financial Highlights* | **16** |
| **Notes to Financial Statements** | **17** |
| **Report of Independent Registered Public <br>Accounting Firm** | **26** |
| **Supplemental Information (Unaudited)** | **Supplemental Information (Unaudited)** |
| *Trustee and Officer Information* | **27** |
| *Proxy Voting and Portfolio Holdings Information* | **30** |
| *Expense Example* | **30** |
| *Additional Federal Income Tax Information* | **31** |
| *Advisory Contract Renewal* | **32** |
| *Privacy Policy (inside back cover)* |  |

---

------

*The Fund is distributed by Victory Capital Services, Inc. Victory Capital Management Inc. is the investment adviser to the Fund and receives fees from the Fund for performing services for the Fund.*

*This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus of the Fund.*

*For additional information about any Victory Fund, including fees, expenses, and risks, view our prospectus online at vcm.com or call 800-539-3863. Read it carefully before you invest or send money.*

*The information in this report is based on data obtained from recognized services and sources and is believed to be reliable. Any opinions, projections, or recommendations in this report are subject to change without notice and are not intended as individual investment advice. Past investment performance of the Fund markets or securities mentioned herein should not be considered to be indicative of future results.*

***• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE***

![](j2325454_ba002.jpg)

*Call Victory at:*

*800-539-FUND* (800-539-3863)

*Visit our website at:*

*vcm.com*

------

*Victory Funds Letter to Shareholders<br> (Unaudited)*

Dear Shareholder,

Our most recent annual reporting period ending December 31, 2022, was filled with epic challenges. Even the most seasoned investors who have been through more than one economic cycle have not witnessed financial markets like this in a long time, if ever.

Consider what transpired and how the investing backdrop changed so abruptly. The year began well enough with ample liquidity and an encouraging outlook for corporate profits. But that optimism faded early and was punctuated by the start of a terrible war in Eastern Europe. This fueled rising energy prices and intensified an inflation problem that was proving to be more than "transitory."

The inflation data was particularly troublesome and surprised many with some of the highest readings since the 1970s. In response, the U.S. Federal Reserve (the "Fed") pivoted to a far more restrictive monetary policy than anyone anticipated. Over the course of 2022, the Fed boosted the Fed funds interest rate on seven different occasions by a total of 4.5 percentage points. And if that wasn't enough, zero-Covid policies in China further exacerbated supply chain issues and dampened the outlook for global growth.

As one might expect, all of these obstacles ratcheted up volatility across financial markets. Broad market stock indices pulled back substantially around the world. The S&P 500<sup>®</sup> Index, the bell-weather proxy for our domestic stock market, delivered a negative total return of more than 18% for our annual reporting period.

Perhaps what made 2022 even more difficult was the performance of fixed income markets, which normally are considered a safe haven in times of equity turmoil. But not this past year. In fact, the Bloomberg US Aggregate Bond Index—a proxy for a diversified fixed income portfolio and one that many investors and institutions follow closely—delivered a negative total return of approximately 13%, its worst annual performance since the 1970s. That's not exactly the offset to equity performance that many investors were expecting from bonds.

It was a tough year, and we fully acknowledge that the steady drumbeat of bad news and bouts of stomach-churning volatility can take a toll on investors' psyche. Nobody likes opening their account statements during declining markets; and even when markets snap back sharply (as happened this past July and October), investors often wonder if they have missed an opportunity.

Through all of the challenges in our most recent annual reporting period, we are reminded of two enduring realities: 1) financial markets are dynamic and apt to change abruptly; 2) it's vital that we remain calm and rational whenever faced with those inevitable bouts of turmoil.

Fortunately, we think that investors can take comfort knowing that all of our independent investment franchises have experience managing portfolios through a wide variety of market environments. Our investment professionals remain calm during turbulent financial markets, and we think it's imperative that investors do the same.

------

We still believe that a long-term plan, a well-diversified portfolio across asset classes and investment types, and a clear understanding of individual risk tolerances are the key ingredients for staying the course and progressing on investment goals. Moreover, all our investment professionals continually monitor the environment and work hard to position portfolios opportunistically no matter what the markets bring. Remember, turmoil can also create opportunity.

On the following pages you will find information relating to your Victory Funds investment. If you have any questions, we encourage you to contact your financial advisor. If you invest with us directly, you may call 800-539-3863 or visit our website at vcm.com.

From all of us here at Victory Capital, thank you for your ongoing confidence and for letting us help you work toward your investment goals.

![](j2325454_ba003.jpg)

**Christopher K. Dyer, CFA**

*President,*

*Victory Funds*

------

Victory RS International VIP Series

**Managers' Commentary** <br>(Unaudited)

**What were the market conditions during the reporting period?**

After posting strong gains in 2021, international equities (as measured by the MSCI EAFE Index (the "Index")) declined 14.45% over the year ended December 31, 2022, as persistent inflation, rising interest rates and fears of a possible recession weighed heavily on stocks. Russia's invasion of Ukraine and new outbreaks of COVID-19 in China unsettled markets in the first quarter of 2022, frustrating supply chains and exacerbating rising costs for food and fuel. Recession fears took hold in the second quarter as aggressive central bank action to combat inflation threatened economic growth, causing international equities to decline over 14% during the period. After a July rally, markets again turned negative, declining for a third consecutive quarter as central banks confirmed their intent to prioritize curbing inflation over promoting growth, increasing the likelihood of recession. In the fourth quarter, signs of peaking inflation, a deceleration of central bank rate hikes and the moderation of COVID-19-related restrictions in China invited cautious optimism from investors as international market returns finished up more than 17% for the period.

**How did Victory RS International VIP Series (the "Fund") perform during the reporting period?**

The Fund returned -15.81% for the fiscal year ended December 31, 2022, underperforming the Index, which returned -14.45% for the reporting period.

**What strategies did you employ during the reporting period?**

We employ a blended investment approach that relies on both rigorous quantitative techniques and experienced analyst judgement. At the heart of the investment process is our proprietary QVS (Quality, Value and Sentiment) Model (the "Model"), which is designed to identify companies that have the potential to consistently create shareholder value, are reasonably valued, and exhibit favorable market sentiment. The Model helps us focus our resources, as we conduct additional research only on companies with the strongest Model recommendations. Making correct macro allocation calls can be immensely challenging; therefore, we do not forecast regional performance and seek to remain sector- and region-neutral in constructing our portfolios. In our view, stock selection can be far more impactful to strategy performance than allocation.

Negative stock selection in the Financials and Health Care sectors detracted from the Fund's performance relative to the Index for the period. On the other hand, stock selection was positive in the Information Technology and Real Estate sectors. From a regional perspective, negative stock selection in the United Kingdom and Asia/Pacific ex Japan detracted from relative results, while stock selection was positive in Europe. Country-level detractors included Italy, France and Denmark, while country contributors included the Netherlands, Germany and Hong Kong.

Individual detractors from relative performance for the period included United Kingdom-based specialty chemical manufacturer Croda International PLC, Japanese medical equipment supplier HOYA Corp., and French chemical producer Arkema SA.

Positive contributors to relative performance included Japanese video game publisher Capcom Co., Ltd., as well as multinational tobacco company Imperial Brands PLC and oil and gas provider BP PLC, both based in the United Kingdom.

------

Victory RS International VIP Series

**Investment Overview**<br> (Unaudited)

**Average Annual Total Return**

*Year Ended December 31, 2022*

---

| | | |
|:---|:---|:---|
| | **Class I** | |
| **INCEPTION DATE** | *2/8/91* |  |
|  | **Net Asset Value** | **MSCI EAFE Index<sup>1</sup>** |
| *One Year* | *–15.81%* | *–14.45%* |
| *Five Year* | *2.33%* | *1.54%* |
| *Ten Year* | *5.09%* | *4.67%* |

---

***The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit vcm.com.***

*Total return measures the price change in a share assuming the reinvestment of all net investment income and realized capital gain distributions, if any. The total returns quoted do not reflect adjustments made to the enclosed financial statements in accordance with U.S. Generally Accepted Accounting Principles or the deduction of taxes that a shareholder would pay on net investment income and realized capital gain distributions, including reinvested distributions, or redemptions of shares. The total return figures set forth above include all waivers of fees. Without such fee waivers, the total returns would have been lower. Total returns do not reflect the effects of charges deducted pursuant to the terms of The Guardian Insurance & Annuity Company, Inc.'s variable contracts. Inclusion of such charges would reduce the total returns for all periods shown.*

**Victory RS International VIP Series — Growth of $10,000**

![](j2325454_bc004.jpg)

*<sup>1</sup>The MSCI EAFE Index is an equity index that captures large-cap and mid-cap representation across Developed Markets countries around the world. The index reflects the reinvestment of dividends paid on the stocks constituting the index, net of withholding taxes. This index does not include the effect of sales charges, commissions, expenses, or taxes, is not representative of the Fund, and is not possible to invest directly in an index.*

*The graph reflects investment of growth of a hypothetical $10,000 investment in the Fund.*

*The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares.*

**Past performance is not indicative of future results.**

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---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory RS International VIP Series** | December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Investment Objective and Portfolio Holdings:**

The Fund seeks to provide long-term capital appreciation.

**Top 10 Holdings\*:**

*December 31, 2022*

*(% of Net Assets)*

---

| | |
|:---|:---|
| *Nestle SA, Registered Shares* | *4.2%* |
| *Novo Nordisk A/S, Class B* | *3.4%* |
| *Roche Holding AG* | *3.3%* |
| *LVMH Moet Hennessy Louis Vuitton SE* | *3.2%* |
| *Novartis AG, Registered Shares* | *2.6%* |
| *Shell PLC* | *2.4%* |
| *BHP Group Ltd.* | *2.4%* |
| *Toyota Motor Corp.* | *2.2%* |
| *Siemens AG, Registered Shares* | *2.1%* |
| *Rio Tinto PLC* | *2.0%* |

---

**Sector Allocation\*:**

*December 31, 2022*

*(% of Net Assets)*

![](j2325454_bc005.jpg)

\* Does not include futures contracts, money market instruments, and short-term investments purchased with cash collateral from securities loaned.

Percentages are of the net assets of the Fund and may not equal 100%.

Refer to the Schedule of Portfolio Investments for a complete list of securities.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory RS International VIP Series** | **Schedule of Portfolio Investments**<br> December 31, 2022 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Common Stocks (97.6%)** | **Common Stocks (97.6%)** | **Common Stocks (97.6%)** |
| **Australia (7.6%):** | **Australia (7.6%):** | **Australia (7.6%):** |
| **Consumer Discretionary (0.9%):** | **Consumer Discretionary (0.9%):** | **Consumer Discretionary (0.9%):** |
| Aristocrat Leisure Ltd. | 50124 | $1032615 |
| **Financials (1.3%):** | **Financials (1.3%):** | **Financials (1.3%):** |
| Macquarie Group Ltd. | 13671 | 1542954 |
| **Health Care (2.0%):** | **Health Care (2.0%):** | **Health Care (2.0%):** |
| CSL Ltd. | 11433 | 2228870 |
| **Materials (2.4%):** | **Materials (2.4%):** | **Materials (2.4%):** |
| BHP Group Ltd. | 89513 | 2772221 |
| **Real Estate (1.0%):** | **Real Estate (1.0%):** | **Real Estate (1.0%):** |
| Scentre Group | 597453 | 1162719 |
|  |  | 8739379 |
| **Belgium (0.8%):** | **Belgium (0.8%):** | **Belgium (0.8%):** |
| **Information Technology (0.8%):** | **Information Technology (0.8%):** | **Information Technology (0.8%):** |
| Melexis NV | 10490 | 912982 |
| **China (0.8%):** | **China (0.8%):** | **China (0.8%):** |
| **Communication Services (0.8%):** | **Communication Services (0.8%):** | **Communication Services (0.8%):** |
| Tencent Holdings Ltd. | 22700 | 962544 |
| **Denmark (4.2%):** | **Denmark (4.2%):** | **Denmark (4.2%):** |
| **Consumer Discretionary (0.8%):** | **Consumer Discretionary (0.8%):** | **Consumer Discretionary (0.8%):** |
| Pandora A/S | 13455 | 951184 |
| **Health Care (3.4%):** | **Health Care (3.4%):** | **Health Care (3.4%):** |
| Novo Nordisk A/S, Class B | 28456 | 3865435 |
|  |  | 4816619 |
| **France (9.2%):** | **France (9.2%):** | **France (9.2%):** |
| **Consumer Discretionary (4.5%):** | **Consumer Discretionary (4.5%):** | **Consumer Discretionary (4.5%):** |
| La Francaise des Jeux SAEM (a) | 37142 | 1494326 |
| LVMH Moet Hennessy Louis Vuitton SE | 5099 | 3709978 |
|  |  | 5204304 |
| **Energy (0.6%):** | **Energy (0.6%):** | **Energy (0.6%):** |
| Gaztransport Et Technigaz SA | 6293 | 672446 |
| **Industrials (1.6%):** | **Industrials (1.6%):** | **Industrials (1.6%):** |
| Safran SA | 14635 | 1832831 |
| **Information Technology (1.2%):** | **Information Technology (1.2%):** | **Information Technology (1.2%):** |
| Capgemini SE | 7984 | 1334544 |
| **Materials (1.3%):** | **Materials (1.3%):** | **Materials (1.3%):** |
| Arkema SA | 16669 | 1499078 |
|  |  | 10543203 |
| **Germany (7.5%):** | **Germany (7.5%):** | **Germany (7.5%):** |
| **Consumer Discretionary (0.8%):** | **Consumer Discretionary (0.8%):** | **Consumer Discretionary (0.8%):** |
| Volkswagen AG, Preference Shares | 7691 | 953930 |

---

*See notes to financial statements.*

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---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory RS International VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Financials (1.8%):** | **Financials (1.8%):** | **Financials (1.8%):** |
| Allianz SE, Registered Shares | 9609 | $2051784 |
| **Industrials (2.1%):** | **Industrials (2.1%):** | **Industrials (2.1%):** |
| Siemens AG, Registered Shares | 17258 | 2378698 |
| **Information Technology (1.6%):** | **Information Technology (1.6%):** | **Information Technology (1.6%):** |
| SAP SE | 17140 | 1769293 |
| **Utilities (1.2%):** | **Utilities (1.2%):** | **Utilities (1.2%):** |
| RWE AG | 31649 | 1398931 |
|  |  | 8552636 |
| **Hong Kong (2.8%):** | **Hong Kong (2.8%):** | **Hong Kong (2.8%):** |
| **Financials (1.6%):** | **Financials (1.6%):** | **Financials (1.6%):** |
| AIA Group Ltd. | 169000 | 1866441 |
| **Real Estate (1.2%):** | **Real Estate (1.2%):** | **Real Estate (1.2%):** |
| CK Asset Holdings Ltd. | 216000 | 1324842 |
|  |  | 3191283 |
| **Italy (1.2%):** | **Italy (1.2%):** | **Italy (1.2%):** |
| **Utilities (1.2%):** | **Utilities (1.2%):** | **Utilities (1.2%):** |
| Snam SpA | 275665 | 1336465 |
| **Japan (21.3%):** | **Japan (21.3%):** | **Japan (21.3%):** |
| **Communication Services (1.8%):** | **Communication Services (1.8%):** | **Communication Services (1.8%):** |
| Capcom Co. Ltd. | 36500 | 1165275 |
| Kakaku.com, Inc. | 55400 | 889065 |
|  |  | 2054340 |
| **Consumer Discretionary (3.2%):** | **Consumer Discretionary (3.2%):** | **Consumer Discretionary (3.2%):** |
| Toyota Motor Corp. | 185800 | 2535171 |
| ZOZO, Inc. | 46700 | 1153468 |
|  |  | 3688639 |
| **Consumer Staples (1.1%):** | **Consumer Staples (1.1%):** | **Consumer Staples (1.1%):** |
| Toyo Suisan Kaisha Ltd. | 31300 | 1206046 |
| **Financials (3.1%):** | **Financials (3.1%):** | **Financials (3.1%):** |
| Mitsubishi UFJ Financial Group, Inc. | 267200 | 1794098 |
| Tokio Marine Holdings, Inc. | 81300 | 1737028 |
|  |  | 3531126 |
| **Health Care (2.5%):** | **Health Care (2.5%):** | **Health Care (2.5%):** |
| Hoya Corp. | 18300 | 1753015 |
| Shionogi & Co. Ltd. | 21000 | 1047916 |
|  |  | 2800931 |
| **Industrials (5.4%):** | **Industrials (5.4%):** | **Industrials (5.4%):** |
| Fuji Electric Co. Ltd. | 37000 | 1396566 |
| MISUMI Group, Inc. | 40600 | 882548 |
| Mitsubishi Heavy Industries Ltd. | 33500 | 1324006 |
| Nippon Yusen KK (b) | 30700 | 724036 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory RS International VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

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| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| OKUMA Corp. | 19400 | $| 687289 |
| Sanwa Holdings Corp. | 131100 |  | 1207217 |
|  |  |  | 6221662 |
| **Information Technology (2.9%):** | **Information Technology (2.9%):** | **Information Technology (2.9%):** | **Information Technology (2.9%):** |
| Fujitsu Ltd. | 9100 |  | 1213376 |
| Oracle Corp. | 16700 |  | 1086025 |
| Ulvac, Inc. | 24400 |  | 1017020 |
|  |  |  | 3316421 |
| **Real Estate (0.6%):** | **Real Estate (0.6%):** | **Real Estate (0.6%):** | **Real Estate (0.6%):** |
| Sumitomo Realty & Development Co. Ltd. | 30500 |  | 718932 |
| **Utilities (0.7%):** | **Utilities (0.7%):** | **Utilities (0.7%):** | **Utilities (0.7%):** |
| Chubu Electric Power Co., Inc. | 72100 |  | 745663 |
|  |  |  | 24283760 |
| **Netherlands (5.7%):** | **Netherlands (5.7%):** | **Netherlands (5.7%):** | **Netherlands (5.7%):** |
| **Communication Services (1.6%):** | **Communication Services (1.6%):** | **Communication Services (1.6%):** | **Communication Services (1.6%):** |
| Koninklijke KPN NV | 590604 |  | 1827810 |
| **Financials (1.6%):** | **Financials (1.6%):** | **Financials (1.6%):** | **Financials (1.6%):** |
| ING Groep NV | 150681 |  | 1835208 |
| **Industrials (1.6%):** | **Industrials (1.6%):** | **Industrials (1.6%):** | **Industrials (1.6%):** |
| Wolters Kluwer NV | 17144 |  | 1793612 |
| **Information Technology (0.9%):** | **Information Technology (0.9%):** | **Information Technology (0.9%):** | **Information Technology (0.9%):** |
| ASM International NV | 4114 |  | 1043715 |
|  |  |  | 6500345 |
| **New Zealand (0.8%):** | **New Zealand (0.8%):** | **New Zealand (0.8%):** | **New Zealand (0.8%):** |
| **Health Care (0.8%):** | **Health Care (0.8%):** | **Health Care (0.8%):** | **Health Care (0.8%):** |
| Fisher & Paykel Healthcare Corp. Ltd. | 61583 |  | 880856 |
| **Norway (1.1%):** | **Norway (1.1%):** | **Norway (1.1%):** | **Norway (1.1%):** |
| **Energy (0.3%):** | **Energy (0.3%):** | **Energy (0.3%):** | **Energy (0.3%):** |
| Aker BP ASA | 13142 |  | 409000 |
| **Financials (0.8%):** | **Financials (0.8%):** | **Financials (0.8%):** | **Financials (0.8%):** |
| SpareBank 1 SMN | 66807 |  | 868931 |
|  |  |  | 1277931 |
| **Spain (1.8%):** | **Spain (1.8%):** | **Spain (1.8%):** | **Spain (1.8%):** |
| **Communication Services (0.0%): (c)** | **Communication Services (0.0%): (c)** | **Communication Services (0.0%): (c)** | **Communication Services (0.0%): (c)** |
| Telefonica SA | 1 |  | 4 |
| **Financials (1.8%):** | **Financials (1.8%):** | **Financials (1.8%):** | **Financials (1.8%):** |
| Banco Bilbao Vizcaya Argentaria SA | 341799 |  | 2058453 |
|  |  |  | 2058457 |
| **Sweden (2.7%):** | **Sweden (2.7%):** | **Sweden (2.7%):** | **Sweden (2.7%):** |
| **Industrials (2.7%):** | **Industrials (2.7%):** | **Industrials (2.7%):** | **Industrials (2.7%):** |
| Atlas Copco AB, Class B | 197476 |  | 2108161 |
| Nibe Industrier AB, Class B | 101345 |  | 946454 |
|  |  |  | 3054615 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory RS International VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Switzerland (13.6%):** | **Switzerland (13.6%):** | **Switzerland (13.6%):** |
| **Consumer Staples (5.1%):** | **Consumer Staples (5.1%):** | **Consumer Staples (5.1%):** |
| Coca-Cola HBC AG | 44498 | $1051656 |
| Nestle SA, Registered Shares | 41077 | 4746064 |
|  |  | 5797720 |
| **Financials (2.6%):** | **Financials (2.6%):** | **Financials (2.6%):** |
| Partners Group Holding AG | 1479 | 1309985 |
| UBS Group AG | 91363 | 1698553 |
|  |  | 3008538 |
| **Health Care (5.9%):** | **Health Care (5.9%):** | **Health Care (5.9%):** |
| Novartis AG, Registered Shares | 32100 | 2905754 |
| Roche Holding AG | 12114 | 3807703 |
|  |  | 6713457 |
|  |  | 15519715 |
| **United Kingdom (16.5%):** | **United Kingdom (16.5%):** | **United Kingdom (16.5%):** |
| **Consumer Discretionary (0.7%):** | **Consumer Discretionary (0.7%):** | **Consumer Discretionary (0.7%):** |
| Next PLC | 11383 | 797446 |
| **Consumer Staples (3.8%):** | **Consumer Staples (3.8%):** | **Consumer Staples (3.8%):** |
| Diageo PLC | 53280 | 2331669 |
| Imperial Brands PLC | 80770 | 2011645 |
|  |  | 4343314 |
| **Energy (3.7%):** | **Energy (3.7%):** | **Energy (3.7%):** |
| BP PLC | 253889 | 1464613 |
| Shell PLC | 98680 | 2781279 |
|  |  | 4245892 |
| **Financials (3.5%):** | **Financials (3.5%):** | **Financials (3.5%):** |
| Barclays PLC | 753547 | 1433554 |
| HSBC Holdings PLC | 319829 | 1981731 |
| Legal & General Group PLC | 193231 | 579209 |
|  |  | 3994494 |
| **Health Care (0.3%):** | **Health Care (0.3%):** | **Health Care (0.3%):** |
| CVS Group PLC | 13747 | 320589 |
| **Industrials (1.4%):** | **Industrials (1.4%):** | **Industrials (1.4%):** |
| Ashtead Group PLC | 27246 | 1547374 |
| **Materials (3.1%):** | **Materials (3.1%):** | **Materials (3.1%):** |
| Croda International PLC | 15734 | 1251823 |
| Rio Tinto PLC | 33319 | 2344627 |
|  |  | 3596450 |
|  |  | 18845559 |
| **Total Common Stocks (Cost $99,450,340)** | **Total Common Stocks (Cost $99,450,340)** | 111476349 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory RS International VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Exchange-Traded Funds (0.2%)** | **Exchange-Traded Funds (0.2%)** | **Exchange-Traded Funds (0.2%)** |
| **United States (0.2%):** | **United States (0.2%):** | **United States (0.2%):** |
| iShares MSCI EAFE ETF | 3556 | $233416 |
| **Total Exchange-Traded Funds (Cost $224,103)** | **Total Exchange-Traded Funds (Cost $224,103)** | 233416 |
| **Collateral for Securities Loaned (0.0%)^ (c)** | **Collateral for Securities Loaned (0.0%)^ (c)** | **Collateral for Securities Loaned (0.0%)^ (c)** |
| **United States (0.0%):** | **United States (0.0%):** | **United States (0.0%):** |
| Goldman Sachs Financial Square Government Fund, Institutional Shares, <br>4.14% (d) | 12260 | 12260 |
| HSBC U.S. Government Money Market Fund, Institutional Shares, 4.13% (d) | 12260 | 12260 |
| Invesco Government & Agency Portfolio, Institutional Shares, 4.22% (d) | 12260 | 12260 |
| Morgan Stanley Institutional Liquidity Government Portfolio, Institutional Shares, <br>4.08% (d) | 12260 | 12260 |
| **Total Collateral for Securities Loaned (Cost $49,040)** | **Total Collateral for Securities Loaned (Cost $49,040)** | 49040 |
| **Total Investments (Cost $99,723,483) — 97.8%** | **Total Investments (Cost $99,723,483) — 97.8%** | 111758805 |
| **Other assets in excess of liabilities — 2.2%** | **Other assets in excess of liabilities — 2.2%** | 2513673 |
| **NET ASSETS — 100.00%** | **NET ASSETS — 100.00%** | $114272478 |

---

^ Purchased with cash collateral from securities on loan.

(a) Rule 144A security or other security that is restricted as to resale to institutional investors. The Fund's Adviser has deemed this security to be liquid (unless otherwise noted as illiquid) based upon procedures approved by the Board of Trustees. As of December 31, 2022, the fair value of these securities was $1,494,326 and amounted to 1.3% of net assets.

(b) All or a portion of this security is on loan.

(c) Amount represents less than 0.05% of net assets.

(d) Rate disclosed is the daily yield on December 31, 2022.

ETF — Exchange-Traded Fund

PLC — Public Limited Company

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statement of Assets and Liabilities**<br> December 31, 2022 |

---

---

| | |
|:---|:---|
| | **Victory RS International <br>VIP Series** |
| **Assets:** | **Assets:** |
| Investments, at value (Cost $99,723,483) | $111758805<br> (a) |
| Foreign currency, at value (Cost $83,303) | 83911 |
| Cash | 1682468 |
| Receivables: | Receivables: |
| Interest and dividends | 128499 |
| Capital shares issued | 10881 |
| Reclaims | 798439 |
| From Adviser | 11674 |
| Prepaid expenses | 204 |
| Total Assets | 114474881 |
| **Liabilities:** | **Liabilities:** |
| Payables: | Payables: |
| Collateral received on loaned securities | 49040 |
| Capital shares redeemed | 3659 |
| Accrued expenses and other payables: | Accrued expenses and other payables: |
| Investment advisory fees | 79979 |
| Administration fees | 6365 |
| Custodian fees | 8153 |
| Transfer agent fees | 34142 |
| Compliance fees | 90 |
| Trustees' fees | 110 |
| Other accrued expenses | 20865 |
| Total Liabilities | 202403 |
| **Net Assets:** | **Net Assets:** |
| Capital | 104539592 |
| Total accumulated earnings/(loss) | 9732886 |
| Net Assets | $114272478 |
| Shares (unlimited shares authorized with a par value of $0.001 per share): | 7833034 |
| Net asset value: | $14.59 |

---

(a) Includes $47,168 of securities on loan.

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statement of Operations**<br> For the Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| | **Victory RS International<br>VIP Series** |
| **Investment Income:** | **Investment Income:** |
| Dividends | $4671220 |
| Non-cash dividends | 347602 |
| Interest | 9822 |
| Securities lending (net of fees) | 11138 |
| Foreign tax withholding | (549486) |
| Total Income | 4490296 |
| **Expenses:** | **Expenses:** |
| Investment advisory fees | 987475 |
| Administration fees | 67190 |
| Sub-Administration fees | 16965 |
| Custodian fees | 40133 |
| Transfer agent fees | 162436 |
| Trustees' fees | 9016 |
| Compliance fees | 999 |
| Legal and audit fees | 19748 |
| Interfund lending | 600 |
| Other expenses | 38974 |
| Recoupment of prior expenses waived/reimbursed by Adviser | 7035 |
| Total Expenses | 1350571 |
| Expenses waived/reimbursed by Adviser | (202948) |
| Net Expenses | 1147623 |
| Net Investment Income (Loss) | 3342673 |
| **Realized/Unrealized Gains (Losses) from Investments:** | **Realized/Unrealized Gains (Losses) from Investments:** |
| Net realized gains (losses) from investment securities and foreign <br>currency transactions | (1826855) |
| Net change in unrealized appreciation/depreciation on investment <br>securities and foreign currency translations | (24929525) |
| Net realized/unrealized gains (losses) on investments | (26756380) |
| Change in net assets resulting from operations | $(23413707) |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statements of Changes in Net Assets** |

---

---

| | | |
|:---|:---|:---|
| | **Victory RS International VIP Series** | **Victory RS International VIP Series** |
| | **Year<br>Ended<br>December 31,<br>2022** | **Year<br>Ended<br>December 31, <br>2021** |
| **From Investment Activities:** | **From Investment Activities:** | **From Investment Activities:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income (Loss) | $3342673 | $3088110 |
| Net realized gains (losses) | (1826855) | 10725308 |
| Net change in unrealized appreciation/depreciation | (24929525) | 6751760 |
| Change in net assets resulting from operations | (23413707) | 20565178 |
| Change in net assets resulting from distributions to shareholders | (12698566) | (5959356) |
| Change in net assets resulting from capital transactions | 129577 | (12133257) |
| Change in net assets | (35982696) | 2472565 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of period | 150255174 | 147782609 |
| End of period | $114272478 | $150255174 |
| **Capital Transactions:** | **Capital Transactions:** | **Capital Transactions:** |
| Proceeds from shares issued | $7271942 | $3983473 |
| Distributions reinvested | 12698566 | 5959356 |
| Cost of shares redeemed | (19840931) | (22076086) |
| Change in net assets resulting from capital transactions | $129577 | $(12133257) |
| **Share Transactions:** | **Share Transactions:** | **Share Transactions:** |
| Issued | 457593 | 203842 |
| Reinvested | 833107 | 309776 |
| Redeemed | (1231984) | (1136496) |
| Change in Shares | 58716 | (622878) |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Financial Highlights** |

---

*For a Share Outstanding Throughout Each Period*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Victory RS International VIP Series** | **Victory RS International VIP Series** | **Victory RS International VIP Series** | **Victory RS International VIP Series** | **Victory RS International VIP Series** |
| | **Year<br>Ended<br>December 31,<br>2022** | **Year<br>Ended<br>December 31,<br>2021** | **Year<br>Ended<br>December 31,<br>2020** | **Year<br>Ended<br>December 31,<br>2019** | **Year<br>Ended<br>December 31,<br>2018** |
| **Net Asset Value, Beginning of Period** | $19.33 | $17.60 | $17.48 | $15.47 | $17.64 |
| Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: |
| Net investment income (loss) (a) | 0.44 | 0.39 | 0.32 | 0.43 | 0.38 |
| Net realized and unrealized gains <br>(losses) on investments | (3.46) | 2.13 | 0.75 | 3.09 | (2.26) |
| Total from Investment Activities | (3.02) | 2.52 | 1.07 | 3.52 | (1.88) |
| Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: |
| Net investment income | (0.42) | (0.37) | (0.45) | (0.39) | (0.15) |
| Net realized gains from investments | (1.30) | (0.42) | (0.50) | (1.12) | (0.14) |
| Total Distributions to <br>Shareholders | (1.72) | (0.79) | (0.95) | (1.51) | (0.29) |
| **Net Asset Value, End of Period** | $14.59 | $19.33 | $17.60 | $17.48 | $15.47 |
| Total Return (b) (c) | (15.81)% | 14.37% | 6.24% | 22.79% | (10.66)% |
| **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** |
| Net Expenses (d) | 0.93% | 0.93% | 0.93% | 0.93% | 0.93% |
| Net Investment Income (Loss) | 2.71% | 2.02% | 2.02% | 2.49% | 2.20% |
| Gross Expenses (d) | 1.10% | 1.01% | 0.98% | 0.96% | 0.94% |
| **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** |
| Net Assets at end of period (000's) | $114272 | $150255 | $147783 | $149034 | $142524 |
| Portfolio Turnover | 27% | 35% | 54% | 32% | 44% |

---

(a) Per share net investment income (loss) has been calculated using the average daily shares method.

(b) Total returns do not reflect the effects of charges deducted pursuant to the terms of The Guardian Insurance & Annuity Company, Inc.'s variable contracts. Inclusion of such charges would reduce the total returns for all periods shown.

(c) Assumes reinvestment of all net investment income and realized capital gain distributions, if any, during the period. Includes adjustments in accordance with U.S. Generally Accepted Accounting Principles and could differ from the reported total return.

(d) Does not include acquired fund fees and expenses, if any.

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements**<br> December 31, 2022 |

---

**1. Organization:**

Victory Variable Insurance Funds (the "Trust") is organized as a Delaware statutory trust and the Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. The Trust is comprised of six funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with a par value of $0.001 per share.

The accompanying financial statements are those of Victory RS International VIP Series (the "Fund"), a series of the Trust. The Fund offers a single class of shares: Class I. The Fund's shares are only available for purchase by certain separate accounts of insurance companies as investments for certain variable annuity plans and variable life insurance contracts issued by those insurance companies. The Fund is classified as diversified under the 1940 Act.

Victory Capital Management Inc. ("VCM" or the "Adviser") is an indirect wholly owned subsidiary of Victory Capital Holdings, Inc., a publicly traded Delaware corporation, and a wholly owned direct subsidiary of Victory Capital Operating, LLC.

Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund. However, based on experience, the Fund expects that risk of loss to be remote.

**2. Significant Accounting Policies:**

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with U.S. Generally Accepted Accounting Principles ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies under Accounting Standards Codification Topic 946.

**Investment Valuation:**

The Fund records investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The valuation techniques described below maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Fund's investments are summarized in the three broad levels listed below:

• Level 1 — quoted prices (unadjusted) in active markets for identical securities

• Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, or credit spreads, applicable to those securities, etc.)

• Level 3 — significant unobservable inputs (including the Adviser's assumptions in determining the fair value of investments)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.

The Adviser, appointed as the valuation designee by the Trust's Board of Trustees' (the "Board"), has established the Pricing and Liquidity Committee (the "Committee"), and subject to Board oversight, the Committee administers and oversees the Fund's valuation policies and procedures, which are approved by the Board.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

Portfolio securities listed or traded on securities exchanges, including Exchange-Traded Funds ("ETFs"), and American Depositary Receipts ("ADRs"), are valued at the closing price on the exchange or system where the security is principally traded, if available, or at the Nasdaq Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.

Investments in open-end investment companies, other than ETFs, are valued at their net asset value ("NAV"). These valuations are typically categorized as Level 1 in the fair value hierarchy.

In the event that price quotations or valuations are not readily available, investments are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded and the actual price realized from the sale of a security may differ materially from the fair value price. Valuing these securities at fair value is intended to cause the Fund's NAV to be more reliable than it otherwise would be.

In accordance with procedures adopted by the Board, fair value pricing may be used if events materially affecting the value of foreign securities occur between the time the exchange on which they are traded closes and the time the Fund's NAV is calculated. The Fund uses a systematic valuation model, provided daily by an independent third party to fair value its international equity securities. The valuations are categorized as Level 2 in the fair value hierarchy.

A summary of the valuations as of December 31, 2022, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed on the Schedule of Portfolio Investments:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks | $— | $111476349 | $— | $111476349 |
| Exchange-Traded Funds | 233416 |  |  | 233416 |
| Collateral for Securities Loaned | 49040 |  |  | 49040 |
| Total | $282456 | $111476349 | $— | $111758805 |

---

As of December 31, 2022, there were no transfers into/out of Level 3.

**Real Estate Investment Trusts ("REITs"):**

The Fund may invest in REITs, which report information on the source of their distributions annually. REITs are pooled investment vehicles that invest primarily in income-producing real estate or real-estate related loans or interests (such as mortgages). Certain distributions received from REITs during the year are recorded as realized gains or return of capital as estimated by the Fund or when such information becomes known.

**Investment Companies:**

Exchange-Traded Funds:

The Fund may invest in ETFs, the shares of which are bought and sold on a securities exchange. An ETF trades like common stock and represents a fixed portfolio of securities often designed to track the performance and dividend yield of a particular domestic or foreign market index. The Fund may purchase shares of ETFs for a variety of purposes, including in connection with pursuing their investment programs to temporarily gain exposure to a portion of the U.S. or a foreign market, and for cash management and other purposes. The risks of owning an ETF generally reflect the risks of owning the underlying securities they are designed to track, although the lack of liquidity of an ETF could result in it being more volatile. Additionally, ETFs have fees and expenses that reduce their value.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

Open-End Funds:

The Fund may invest in portfolios of open-end investment companies. These investment companies value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value by the methods established by the board of directors of the underlying funds.

**Derivative Instruments:**

Foreign Exchange Currency Contracts:

The Fund may enter into foreign exchange currency contracts to convert U.S. dollars to and from various foreign currencies. A foreign exchange currency contract is an obligation by a Fund to purchase or sell a specific currency at a future date at a price (in U.S. dollars) set at the time of the contract. The Fund does not engage in "cross-currency" foreign exchange contracts (i.e., contracts to purchase or sell one foreign currency in exchange for another foreign currency). The Fund's foreign exchange currency contracts might be considered spot contracts (typically a contract of one week or less) or forward contracts (typically a contract term over one week). A spot contract is entered into for purposes of hedging against foreign currency fluctuations relating to a specific portfolio transaction, such as the delay between a security transaction trade date and settlement date. Forward contracts are entered into for purposes of hedging portfolio holdings or concentrations of such holdings. The Fund enters into foreign exchange currency contracts solely for spot or forward hedging purposes, and not for speculative purposes (i.e., the Fund does not enter into such contracts solely for the purpose of earning foreign currency gains). Each foreign exchange currency contract is adjusted daily by the prevailing spot or forward rate of the underlying currency, and any appreciation or depreciation is recorded for financial statement purposes as unrealized until the contract settlement date, at which time the Fund records realized gains or losses equal to the difference between the value of a contract at the time it was opened and the value at the time it was closed. The Fund could be exposed to risk if a counterparty is unable to meet the terms of a foreign exchange currency contract or if the value of the foreign currency changes unfavorably. In addition, the use of foreign exchange currency contracts does not eliminate fluctuations in the underlying prices of the securities. For the year ended December 31, 2022, the Fund had no open forward foreign exchange currency contracts.

**Investment Transactions and Related Income:**

Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date or the last business day of the reporting period. Interest income is determined on the basis of coupon interest accrued using the effective interest method which adjusts, where applicable, the amortization of premiums or accretion of discounts. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are recorded on the identified cost basis.

Withholding taxes on interest, dividends, and gains as a result of certain investments by the Funds have been provided for in accordance with each investment's applicable country's tax rules and rates.

**Securities Lending:**

The Fund, through a Securities Lending Agreement with Citibank, N.A. ("Citibank"), may lend its securities to qualified financial institutions, such as certain broker-dealers and banks, to earn additional income, net of income retained by Citibank. Borrowers are required to initially secure their loans for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are generally cured the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities and other securities as permitted by Securities and Exchange Commission ("SEC") guidelines. The cash collateral is invested in short-term instruments or cash equivalents, primarily open-end investment companies, as noted on the Fund's Schedule of Portfolio Investments. The Fund effectively does not have control of the non-cash collateral and therefore it is

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

not disclosed on the Fund's Schedule of Portfolio Investments. Collateral requirements are determined daily based on the value of the Fund's securities on loan as of the end of the prior business day. During the time portfolio securities are on loan, the borrower will pay the Fund any dividends or interest paid on such securities plus any fee negotiated between the parties to the lending agreement. The Fund also earns a return from the collateral. The Fund pays Citibank various fees in connection with the investment of cash collateral and fees based on the investment income received from securities lending activities. Securities lending income (net of these fees) is disclosed on the Statement of Operations. Loans are terminable upon demand and the borrower must return the loaned securities within the lesser of one standard settlement period or five business days. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. In addition, there is a risk that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower.

The Fund's agreement with Citibank does not include master netting provisions. Non-cash collateral received by the Fund may not be sold or repledged, except to satisfy borrower default.

The following table is a summary of the Fund's securities lending transactions as of December 31, 2022.

---

| | | |
|:---|:---|:---|
| **Value of<br>Securities on Loan** | **Non-Cash <br>Collateral** | **Cash <br>Collateral** |
| $47168 | $— | $49040 |

---

**Foreign Currency Translations:**

The accounting records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities of the Fund denominated in a foreign currency are translated into U.S. dollars at current exchange rates. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the exchange rates on the date of the transactions. The Fund does not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are disclosed as Net change in unrealized appreciation/depreciation on investment securities and foreign currency translations on the Statement of Operations. Any realized gains or losses from these fluctuations are disclosed as Net realized gains (losses) from investment securities and foreign currency transactions on the Statement of Operations.

**Foreign Taxes:**

The Fund may be subject to foreign taxes related to foreign income received (a portion of which may be reclaimable), capital gains on the sale of securities, and certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable regulations and rates that exist in the foreign jurisdictions in which the Fund invests.

**Federal Income Taxes:**

The Fund intends to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes is required in the financial statements. The Fund has a tax year end of December 31.

For the year ended December 31, 2022, the Fund did not incur any income tax, interest, or penalties, and has recorded no liability for net unrecognized tax benefits relating to uncertain tax positions.

Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax years, which includes the current fiscal tax year end). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

**Allocations:**

Expenses directly attributable to the Fund are charged to the Fund, while expenses that are attributable to more than one fund in the Trust, or jointly with an affiliated trust, are allocated among the respective funds in the Trust and/or an affiliated trust based upon net assets or another appropriate basis.

**3. Purchases and Sales:**

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the year ended December 31, 2022, were as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Excluding <br>U.S. Government Securities** | &nbsp;&nbsp;&nbsp;&nbsp;**Excluding <br>U.S. Government Securities** |
| **Purchases** | **Sales** |
| $33191744 | $42577891 |

---

**4. Fees and Transactions with Affiliates and Related Parties:**

**Investment Advisory Fees:**

Investment advisory services are provided to the Fund by the Adviser, which is a New York corporation registered as an investment adviser with the SEC.

Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive fees accrued daily and paid monthly at an annualized rate of 0.80% of the Fund's average daily net assets. Amounts incurred and paid to VCM for the year ended December 31, 2022, are reflected on the Statement of Operations as Investment advisory fees.

**Administration and Servicing Fees:**

VCM also serves as the Fund's administrator and fund accountant. Under the Administration and Fund Accounting Agreement, VCM is entitled to receive fees based on a percentage of the average daily net assets of the Trust, Victory Portfolios and Victory Portfolios II. The tiered rates at which VCM is paid by the Funds are shown in the table below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** |
| **Up to $15 billion** | **Up to $15 billion** | **$15 billion** **–** **$30 billion** | **$15 billion** **–** **$30 billion** | **Over $30 billion** |
| 0.08 | %, plus | 0.05 | %, plus | 0.04% |

---

Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Administration fees.

Citi Fund Services Ohio, Inc. ("Citi"), an affiliate of Citibank, acts as sub-administrator and sub-fund accountant to the Fund pursuant to the Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Fund reimburses VCM and Citi for out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Sub-Administration fees.

The Fund (as part of the Trust) has entered into an agreement with the Adviser to provide compliance services, pursuant to which the Adviser furnishes its compliance personnel, including the services of the Chief Compliance Officer ("CCO"), and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration, and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The CCO is an employee of the Adviser, which pays the compensation of the CCO and support staff. The funds in the Trust, Victory Portfolios, Victory Portfolios II and USAA Mutual Funds (collectively, the "Victory Funds Complex"), in aggregate, compensate the Adviser for these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Compliance fees.

------

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

**Transfer Agency Fees:**

FIS Investor Services, LLC ("FIS") serves as the Fund's transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Transfer agent fees.

**Distributor/Underwriting Services:**

Victory Capital Services, Inc. (the "Distributor"), an affiliate of the Adviser, serves as Distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust, and receives no fee or other compensation for these services.

**Other Fees:**

Citibank serves as the Fund's custodian. The Fund pays Citibank a fee for providing these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Custodian fees.

Sidley Austin LLP provides legal services to the Trust.

The Adviser has entered into an expense limitation agreement with the Fund until at least April 30, 2023. Under the terms of the agreement, the Adviser has agreed to waive fees or reimburse certain expenses to the extent that ordinary operating expenses incurred in any fiscal year exceed the expense limit for the Fund. Such excess amounts will be the liability of the Adviser. Acquired fund fees and expenses, interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund's business are excluded from the expense limits. As of December 31, 2022, the expense limit (excluding voluntary waivers) is 0.93%.

Under the terms of the expense limitation agreement, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period of up to three years (thirty-six (36) months) after the waiver or reimbursement took place, subject to the lesser of any operating expense limits in effect at the time of: (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount.

As of December 31, 2022, the following amounts are available to be repaid to the Adviser. The Fund has not recorded any amounts available to be repaid as a liability due to an assessment that such repayments are not probable at December 31, 2022.

---

| | | | |
|:---|:---|:---|:---|
| **Expires<br>2023** | **Expires<br>2024** | **Expires<br>2025** | **Total** |
| $60447 | $115399 | $202948 | $378794 |

---

The Adviser may voluntarily waive or reimburse additional fees to assist the Fund in maintaining competitive expense ratios. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the year ended December 31, 2022.

Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, administrator, fund accountant, sub-administrator, sub-fund accountant, custodian, legal counsel, and Distributor.

**5. Risks:**

The Fund may be subject to other risks in addition to these identified risks.

**<u>Equity Risk</u>** — The value of the equity securities in which the Fund invests may decline in response to developments affecting individual companies and/or general, economic conditions in the United States or abroad. A company's earnings or dividends may not increase as expected (or may decline) because

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

of poor management, competitive pressures, reliance on particular suppliers or geographical regions, labor problems or shortages, corporate restructurings, fraudulent disclosures, man-made or natural disasters, military confrontations or wars, terrorism, public health crises, or other events, conditions, and factors. Price changes may be temporary or last for extended periods.

**<u>Foreign Securities Risk</u>** — Foreign securities (including depositary receipts) are subject to political, regulatory, and economic risks not present in domestic investments. Foreign securities could be affected by factors not present in the U.S., including expropriation, confiscation of property, and difficulties in enforcing contracts. Compared to U.S. companies, there generally is less publicly available information about foreign companies and there may be less governmental regulation and supervision of foreign companies. Foreign securities generally experience more volatility than their domestic counterparts. Depositary receipts may have additional risks, including creditworthiness of the depositary bank and the risk of an illiquid market. In addition, to the extent investments are made in a limited number of countries, events in those countries will have a more significant impact on the Fund. Fluctuations in the exchange rates between the U.S. dollar and foreign currencies, currency exchange control regulations, and restrictions or prohibitions on the repatriation of foreign currencies may negatively affect an investment.

**<u>Market Risk</u>** — Overall market risks may affect the value of the Fund. Domestic and international factors such as political events, war, terrorism, trade disputes, inflation rates, interest rate levels and other fiscal and monetary policy changes, cybersecurity incidents, pandemics and other public health crises, sanctions against a particular foreign country, its nationals, businesses or industries and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods or other catastrophes, may add to instability in global economies and markets generally, and may lead to increased market volatility. Global economies and financial markets are highly interconnected, which increases the possibility that conditions in one country or region might adversely affect issuers in another country or region. The impact of these and other factors may be short-term or may last for extended periods.

**6. Borrowing and Interfund Lending:**

**Line of Credit:**

The Victory Funds Complex participates in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 27, 2022, with a termination date of June 26, 2023. Under the agreement with Citibank, the Victory Funds Complex may borrow up to $600 million, of which $300 million is committed and $300 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory Floating Rate Fund, another series of the Victory Funds Complex, with Victory Floating Rate Fund paying the related commitment fees for that amount. The purpose of the Line of Credit is to meet temporary or emergency cash needs. For the year ended December 31, 2022, Citibank received an annual commitment fee of 0.15% on $300 million for providing the Line of Credit. Each fund in the Victory Funds Complex paid a pro-rata portion of the commitment fees plus any interest on amounts borrowed. For the period from January 1, 2022, through June 27, 2022, interest was based on the one-month London Interbank Offered Rate ("LIBOR") plus one percent. Effective with the renewal, for the period June 28, 2022, through December 31, 2022, interest was based on the one-month Secured Overnight Financing Rate (SOFR) plus 1.10 percent. The Fund is not expecting any material financial impact of transition from LIBOR to SOFR. Interest charged to the Fund during the period, if applicable, is reflected on the Statement of Operations under Line of credit fees.

The Fund had no borrowings under the Line of Credit agreement during the year ended December 31, 2022.

**Interfund Lending:**

The Trust and the Adviser rely on an exemptive order granted by the SEC in March 2017 (the "Order"), permitting the establishment and operation of an Interfund Lending Facility (the "Facility"). The Facility allows the Fund to directly lend and borrow money to or from any other fund in the Victory Funds

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

Complex that is permitted to participate in the Facility, relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are allowed for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. As a Borrower, interest charged to the Fund, if any, during the period, is reflected on the Statement of Operations under Interfund lending fees. As a Lender, interest earned by the Fund, if any, during the period, is reflected on the Statement of Operations under Interfund lending.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Borrower <br>or Lender** | **Amount <br>Outstanding at <br>December 31, 2022** | **Average <br>Borrowing\*** | **Days <br>Borrowing <br>Outstanding** | **Average <br>Interest <br>Rate\*** | **Maximum <br>Borrowing <br>During <br>the Period** |
| Borrower | $— | $1505000 | 3 | 4.85% | $1505000 |

---

\* For the year ended December 31, 2022, based on the number of days borrowings were outstanding.

**7. Federal Income Tax Information:**

The Fund intends to distribute any net investment income annually. Distributable net realized gains, if any, are declared and paid at least annually.

The amounts of dividends from net investment income and distributions from net realized gains (collectively, distributions to shareholders) are determined in accordance with federal income tax regulations, which may differ from GAAP. To the extent these "book/tax" differences are permanent in nature (e.g., net operating loss and distribution reclassification), such amounts are reclassified within the components of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales) do not require reclassification. To the extent dividends and distributions exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. Net investment losses incurred by the Fund may be reclassified as an offset to capital on the accompanying Statement of Assets and Liabilities.

As of December 31, 2022, on the Statement of Assets and Liabilities, there were no permanent book-to-tax difference reclassification adjustments.

The tax character of distributions paid during the tax years ended, as noted below, were as follows (total distributions paid may differ from the Statements of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |
| **Distributions paid from** | **Distributions paid from** | | **Distributions paid from** | **Distributions paid from** | |
| **Ordinary<br>Income** | **Net<br>Long-Term<br>Capital Gains** |<br>**Total<br>Distributions<br>Paid** | **Ordinary<br>Income** | **Net<br>Long-Term<br>Capital Gains** |<br>**Total<br>Distributions<br>Paid** |
| $5107519 | $7591047 | $12698566 | $2772083 | $3187273 | $5959356 |

---

As of December 31, 2022, the components of accumulated earnings/(loss) on a tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Accumulated<br>Earnings** | **Accumulated<br>Capital and <br>Other<br>Losses** | **Unrealized<br>Appreciation<br>(Depreciation)\*** | **Total<br>Accumulated<br>Earnings<br>(Loss)** |
| $3135641 | $3135641 | $(2106236) | $8703481 | $9732886 |

---

\* The difference between the book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to tax deferral of losses on wash sales.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

As of December 31, 2022, the Fund had net capital loss carryforwards as shown in the table below. It is unlikely that the Board will authorize a distribution of capital gains realized in the future until the capital loss carryforwards have been used.

---

| | | |
|:---|:---|:---|
| **Short-Term<br>Amount** | **Long-Term<br>Amount** | **Total** |
| $1344639 | $761597 | $2106236 |

---

As of December 31, 2022, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation (depreciation) for investments were as follows:

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| | | | |
|:---|:---|:---|:---|
| **Cost of<br>Investments<br>for Federal<br>Tax Purposes** | **Gross<br>Unrealized<br>Appreciation** | **Gross<br>Unrealized<br>Depreciation** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** |
| $103053769 | $18132036 | $(9427000) | $8705036 |

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Shareholders and Board of Trustees of Victory Variable Insurance Funds

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities, including the schedule of portfolio investments, of Victory RS International VIP Series (the "Fund"), a series of Victory Variable Insurance Funds, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the related notes, and the financial highlights for each of the four years in the period then ended (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, the results of its operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

The Fund's financial highlights for the year ended December 31, 2018, were audited by other auditors whose report dated February 15, 2019, expressed an unqualified opinion on those financial highlights.

**Basis for Opinion**

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the investment companies advised by Victory Capital Management, Inc. since 2015.

![](j2325454_ja006.jpg)

COHEN & COMPANY, LTD.<br>Cleveland, Ohio<br>February 16, 2023

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|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information**<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Trustee and Officer Information**

**Board of Trustees:**

Overall responsibility for management of the Trust rests with the Board. The Trust is managed by the Board in accordance with the laws of the State of Delaware. There are currently nine Trustees, eight of whom are not "interested persons" of the Trust within the meaning of that term under the 1940 Act ("Independent Trustees") and one of whom is an "interested person" of the Trust within the meaning of that term under the 1940 Act ("Interested Trustee"). The Trustees, in turn, elect the officers of the Trust to actively supervise its day-to-day operations.

The following tables list the Trustees, their date of birth, their position with the Trust, their commencement of service, their principal occupations during the past five years, and any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended, or who file reports under that Act. Each Trustee oversees 6 portfolios in the Trust, 37 portfolios in Victory Portfolios, and 25 portfolios in Victory Portfolios II, each a registered investment company that, together with the Trust, comprise the Victory Fund Complex. David C. Brown is a Trustee of USAA Mutual Funds and oversees 45 portfolios of the USAA Mutual Funds Trust. Each Trustee's address is c/o Victory Portfolios, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. Each Trustee has an indefinite term.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position<br>Held with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation<br>During Past 5 Years** | **Other<br>Directorships<br>Held During<br>Past 5 Years** |
| ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** |
| David Brooks Adcock, <br>October 1951 | Trustee | February 2005 | Consultant (since 2006). | Chairman, Board of Trustees, Turner Funds (December 2016-December 2017). |
| Nigel D. T. Andrews, <br>April 1947 | Trustee | August 2002 | Retired. | Director, Carlyle Secured Lending, Inc. (formerly TCG BDC I, Inc.) (since 2012); Director, Carlyle Credit Solutions, Inc. (formerly TCG BDC II, Inc.) (since 2017); Trustee, Carlyle Secured Lending III (since 2021). |
| E. Lee Beard,\* <br>August 1951 | Trustee | February 2005 | Retired. | None. |
| Dennis M. Bushe, <br>January 1944 | Trustee | July 2016 | Retired. | None. |

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position<br>Held with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation<br>During Past 5 Years** | **Other<br>Directorships<br>Held During<br>Past 5 Years** |
| John L. Kelly, <br>April 1953 | Chair and Trustee | February 2015 | Partner, McCarvill Capital Partners (September 2016- September 2017). | Director, Caledonia Mining Corporation (since May 2012). |
| David L. Meyer,<br>April 1957 | Trustee | December 2008 | Retired. | None. |
| Gloria S. Nelund, <br>May 1961 | Trustee | July 2016 | Chair, CEO and Co-Founder of TriLinc Global, LLC, an investment firm. | TriLinc Global Impact Fund, LLC (since 2012). |
| Timothy Pettee,<br>April 1958 | Advisory Trustee | January 2023 | Chief Investment Officer, Hoya Capital Real Estate LLC (since February 2022); Chief Investment Officer, Sun America Asset Management Corp. (January 2003-July 2021). | None. |
| Leigh A. Wilson, <br>December 1944 | Trustee | February 1998 | Private Investor. | Chair (since 2013), Caledonia Mining Corporation. |
| ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** |
| David C. Brown,\*\* <br>May 1972 | Trustee | May 2008 | Chief Executive Officer and Chairman (since 2013), the Adviser; Chief Executive Officer and Chairman (since 2013), Victory Capital Holdings, Inc.; Director (since 2013), Victory Capital Services, Inc.; Director (since 2019), Victory Capital Transfer Agency, Inc. | Trustee, USAA Mutual Funds Trust; Board Member, Victory Capital Services, Inc. |

---

\* The Board has designated Ms. Beard as its Audit Committee Financial Expert.

\*\* Mr. Brown is an "Interested Person" by reason of his relationship with the Adviser.

The Statement of Additional Information includes additional information about the Trustees of the Trust and is available, without charge, by calling 800-539-3863.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

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&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Officers:**

The officers of the Trust, their date of birth, their commencement of service, and their principal occupations during the past five years, are detailed in the following table. Each officer serves until the earlier of his or her resignation, removal, retirement, death, or the election of a successor. The mailing address of each officer of the Trust is 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. The officers of the Trust receive no compensation directly from the Trust for performing the duties of their offices.

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| | | | |
|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation During Past 5 Years** |
| Christopher K. Dyer, <br>February 1962 | President | February 2006 | Director of Mutual Fund Administration, the Adviser (since 2004); Chief Operating Officer, Victory Capital Services, Inc. (since 2020); Vice President, Victory Capital Transfer Agency, Inc. (since 2019). |
| Scott A. Stahorsky, <br>July 1969 | Vice President | December 2014 | Manager, Fund Administration, the Adviser. (since 2015) |
| Thomas Dusenberry,<br>July 1977 | Secretary | May 2022 | Manager, Fund Administration, the Adviser (since 2022); Treasurer and Principal Financial Officer (2020-2022), Assistant Treasurer (2019), Salient MF Trust, Salient Midstream, MLP Fund and Forward Funds; Principal Financial Officer (2018-2021) and Treasurer (2020-2021), Salient Private Access Funds and Endowment PMF Funds; Senior Vice President of Fund Accounting and Operations, Salient Partners (2020-2022); Director of Fund Operations, Salient Partners (2016-2019). |
| Allan Shaer, <br>March 1965 | Treasurer | May 2017 | Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc. (since 2016) |
| Christopher A. Ponte, <br>March 1984 | Assistant Treasurer | December 2017 | Manager, Fund Administration, the Adviser (since 2017); Chief Financial Officer, Victory Capital Services, Inc. (since 2018). |
| Sean Fox,<br>September 1976 | Chief Compliance<br>Officer | June 2022 | Sr. Compliance Officer, the Adviser (since 2019); Compliance Officer, the Adviser (2015-2019). |
| Charles Booth,<br>April 1960 | Anti-Money Laundering Compliance Officer and Identity Theft Officer | May 2015 | Director, Regulatory Administration and CCO Support Services, Citi Fund Services Ohio, Inc. (since 2007). |
| Jay G. Baris, <br>January 1954 | Assistant Secretary | February 1998 | Partner, Sidley Austin LLP (since 2020); Partner, Shearman & Sterling LLP (2018-2020). |

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Proxy Voting and Portfolio Holdings Information**

**Proxy Voting:**

Information regarding the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-539-3863. The information is also included in the Fund's Statement of Additional Information, which is available on the SEC's website at sec.gov.

Information relating to how the Fund voted proxies relating to portfolio securities held during the most recent 12 months ended June 30 is available on the SEC's website at sec.gov.

**Availability of Schedules of Portfolio Investments:**

The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarter of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's website at sec.gov.

**Expense Example**

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2022, through December 31, 2022.

The Actual Expense figures in the table below provide information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

The Hypothetical Expense figures in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

Please note the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical expenses in the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Beginning<br>Account Value<br>7/1/22** | **Actual<br>Ending<br>Account Value<br>12/31/22** | **Hypothetical<br>Ending<br>Account Value<br>12/31/22** | **Actual<br>Expenses Paid <br>During Period<br>7/1/22-12/31/22\*** | **Hypothetical<br>Expenses Paid <br>During Period<br>7/1/22-12/31/22\*** | **Annualized<br>Expense Ratio<br>During Period<br>7/1/22-12/31/22** |
| $1000.00 | $1065.70 | $1020.52 | $4.84 | $4.74 | 0.93% |

---

\* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 184/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Additional Federal Income Tax Information**

For the year ended December 31, 2022, the Fund paid qualified dividend income for the purposes of reduced individual federal income tax rates of 73%.

For the year ended December 31, 2022, the Fund designated short-term capital gain distributions in the amount of $1,855,088.

For the year ended December 31, 2022, the Fund designated long-term capital gain distributions in the amount of $7,591,047.

The Fund intends to elect to pass through to shareholders the income tax credit for taxes paid to foreign countries. Foreign source income and foreign tax expense per shares outstanding on December 31, 2022, were $0.57 and $0.05, respectively.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Considerations of the Board in Continuing the Investment Advisory Agreement (the "Agreement")**

The Board approved the Agreement on behalf of the Fund at a meeting, which was called for that purpose, on December 6, 2022. The Board also considered information relating to the Fund and the Agreement provided throughout the year and, more specifically, at the meetings on October 18, 2022 and December 6, 2022. In considering whether to approve the Agreement, the Board requested, and the Adviser provided, information that the Board believed to be reasonably necessary to reach its conclusions.

The Board, including the Independent Trustees, evaluated this information along with other information obtained throughout the year and was advised by legal counsel to the Fund and independent legal counsel to the Independent Trustees. In addition, the Independent Trustees considered a past review of their overall process for conducting the annual review of the Fund's advisory arrangements by a consultant retained through their counsel.

The Board considered the Fund's advisory fee, expense ratio and investment performance as significant factors in determining whether the Agreement should be continued. In considering whether the compensation paid to the Adviser was fair and reasonable, the Board also evaluated, among other things, the following factors:

• The requirements of the Fund for the services provided by the Adviser;

• The nature, quality and extent of the services provided and expected to be provided;

• The performance of the Fund as compared to comparable funds;

• The fees payable for the services and whether the fee arrangements provided for economies of scale that would benefit Fund shareholders as the Fund grows (acknowledging that economies of scale can be complex to assess and typically are not directly measurable);

• Whether the fee would be sufficient to enable the Adviser to attract and retain experienced personnel and continue to provide quality services to the Fund;

• The fees paid by other clients of the Adviser whose accounts are managed in a similar investment style and any differences in the services provided to the other clients compared to those provided to the Fund;

• The total expenses of the Fund;

• Management's commitment to operating the Fund at competitive expense levels;

• The profitability of the Adviser (as reflected by comparing fees earned against an estimate of the Adviser's costs) with respect to the Adviser's relationship with the Fund;

• Research and other service benefits received by the Adviser obtained through payment of client commissions for securities transactions;

• Other benefits received by the Adviser, and its affiliates, including revenues paid to the Adviser, or its affiliates, by the Fund for administration and fund accounting services, and distribution;

• The capabilities and financial condition of the Adviser;

• Current economic and industry trends; and

• The historical relationship between the Fund and the Adviser.

The Board reviewed the Fund's current management fee, comprised of the advisory fee plus the administrative services fee paid to the Adviser, in the context of the Adviser's profitability with respect to the Fund. The Board retained an independent, third-party consultant to provide comparative information about fees, expenses and performance, and to design and maintain a database of relevant information designed to assist the Board in retrieving and analyzing comparative information. The Board met with the consultant to review its inputs and methodologies, among other things. The Board compared the Fund's total operating expense ratio on a net and gross basis with a universe of comparable mutual funds compiled by the consultant and a peer group of funds with similar investment strategies selected by that consultant from the universe. The Board reviewed the factors and methodology used by the consultant in the selection of the Fund's peer group, including the consultant's selection of a broad universe of funds, the more specific universe of comparable funds, and peer groups of funds with comparable investment strategies and asset levels, among other factors. The Board also reviewed any

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

changes to the consultant's methodology as compared to the prior year, including those resulting from the Adviser's input, if any. The Board also reviewed fees and other information related to the Adviser's management of similarly managed institutional or private accounts, and the differences in the services provided to the other accounts, to the extent applicable. The Board noted that the advisory fee arrangements for the Fund do not include breakpoints, which would be a structure that results in reduced fees as a fund grows. The Board also considered the Adviser's commitment to limit expenses as discussed in more detail below.

The Board also reviewed the compliance and administrative services provided to the Fund by the Adviser and its affiliates, including the Adviser's oversight of the Fund's day-to-day operations and oversight of Fund accounting, assistance in meeting legal and regulatory requirements, and other services necessary for the operation of the Fund and the Trust.

The Board reviewed the Fund's performance over one-, three-, five- and ten-year periods against the performance of the Fund's selected peer group and benchmark index. The Board recognized that the performance of the Fund and the peer group funds are net of expenses, while the performance of the benchmark index reflects gross returns.

The Board reviewed various other specific factors with respect to the Fund, as described below. In their deliberations, the Trustees did not rank the importance of any particular information or factor considered and each Trustee may have attributed different weights to various factors.

The Board concluded that the Fund's gross annual management fee was reasonable as compared to the median gross management fee charged to the funds in the Fund's peer group. The Board noted that the Fund's net annual expense ratio, taking into account any shareholder servicing or distribution fees, was reasonable as compared to the median expense ratio for the peer group. The Board considered the Adviser's contractual agreement to waive its fees and reimburse expenses for a specified period of time, as described in the Fund's prospectus. The Board then compared the Fund's performance for the one-, three-, five- and ten-year periods ended June 30, 2022, to that of the median performance of the Fund's peer group and benchmark index for the same periods and considered the fact that the Fund underperformed the benchmark index for the one- and three-year periods, outperformed the benchmark index for the five- and ten-year periods, outperformed the peer group median of the one-, five- and ten-year periods, and underperformed the peer group median for the three-year period.

Having considered, among other things: (1) that the Fund's management fee was within the ranges of advisory fees charged to comparable mutual funds; (2) that the Fund's total expense ratio was reasonable; (3) the Adviser's willingness to limit the expenses for a period of time would provide stability to the Fund's expenses during that period; and (4) the performance of the Fund, the Board concluded that the Agreement continued to be in the best interests of the Fund's shareholders.

**Conclusion**

Based on its review of the information requested and provided, and following extended discussions, the Board determined that the Agreement, on behalf of the Fund, was consistent with the best interests of the Fund and its shareholders, and the Board unanimously approved the Agreement, on behalf of the Fund, for an additional annual period on the basis of the foregoing review and discussions and the following considerations, among others:

• The fairness and reasonableness of the investment advisory fee payable to the Adviser under the Agreement in light of the investment advisory services provided, the costs of these services, the profitability of the Adviser's relationship with the Fund and the comparability of the fee paid to the fees paid by other investment companies;

• The nature, quality and extent of the investment advisory services provided by the Adviser;

• The Adviser's entrepreneurial commitment to the management of the Fund and the creation of a broad-based family of funds, which entails a substantial commitment of the Adviser's resources to the successful operation of the Fund;

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

• The Adviser's representations regarding its staffing and capabilities to manage the Fund, including the retention of personnel with relevant portfolio management experience;

• The Adviser's efforts to enhance investment results by, among other things, developing and supporting quality portfolio management teams; and

• The overall high quality of the personnel, operations, financial condition, investment management capabilities, methodologies and performance of the Adviser.

------

**Privacy Policy**

**Protecting the Privacy of Information**

The Trust respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain personal information about you. This is the information we collect from you on applications or other forms, and from the transactions you make with us or third parties. It may include your name, address, social security number, account transactions and balances, and information about investment goals and risk tolerance.

We do not disclose any information about you or about former customers to anyone except as permitted or required by law. Specifically, we may disclose the information we collect to companies that perform services on our behalf, such as the transfer agent that processes shareholder accounts and printers and mailers that assist us in the distribution of investor materials. We may also disclose this information to companies that perform marketing services on our behalf. This allows us to continue to offer you Victory investment products and services that meet your investing needs, and to effect transactions that you request or authorize. These companies will use this information only in connection with the services for which we hired them. They are not permitted to use or share this information for any other purpose.

To protect your personal information internally, we permit access only by authorized employees and maintain physical, electronic, and procedural safeguards to guard your personal information.\*

\* You may have received communications regarding information about privacy policies from other financial institutions which gave you the opportunity to "opt-out" of certain information sharing with companies which are not affiliated with that financial institution. The Trust does not share information with other companies for purposes of marketing solicitations for products other than the Trust. Therefore, the Trust does not provide opt-out options to their shareholders.

------

Victory Funds<br>P.O. Box 182593<br>Columbus, Ohio 43218-2593

![](j2325454_za007.jpg)

Visit our website at: Call Victory at: <br> vcm.com 800-539-FUND (800-539-3863)

VVIF-RS-IVIP-AR (12/22)

------

![](j2325455_aa001.jpg)

December 31, 2022

Annual Report

Victory Variable Insurance Funds

Victory RS Large Cap Alpha VIP Series

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vcm.com

News, Information And Education 24 Hours A Day, 7 Days A Week

The Victory Capital website gives fund shareholders, prospective shareholders, and investment professionals a convenient way to access fund information, get guidance, and track fund performance anywhere they can access the Internet. The site includes:

• Detailed performance records

• Daily share prices

• The latest fund news

• Investment resources to help you become a better investor

• A section dedicated to investment professionals

Whether you're a potential investor searching for the fund that matches your investment philosophy, a seasoned investor interested in planning tools, or an investment professional, vcm.com has what you seek. Visit us anytime. We're always open.

------

*Victory Variable Insurance Funds*

*Table of Contents*

---

| | |
|:---|:---|
| **Shareholder Letter (Unaudited)** | **3** |
| **Manager's Commentary (Unaudited)** | **5** |
| **Investment Overview (Unaudited)**  | **7** |
| **Investment Objective & Portfolio Holdings <br>(Unaudited)** | **8** |
| **Schedule of Portfolio Investments** | **9** |
| **Financial Statements** | **Financial Statements** |
| *Statement of Assets and Liabilities* | **11** |
| *Statement of Operations* | **12** |
| *Statements of Changes in Net Assets* | **13** |
| *Financial Highlights* | **14** |
| **Notes to Financial Statements** | **15** |
| **Report of Independent Registered Public <br>Accounting Firm** | **23** |
| **Supplemental Information (Unaudited)** | **Supplemental Information (Unaudited)** |
| *Trustee and Officer Information* | **24** |
| *Proxy Voting and Portfolio Holdings Information* | **27** |
| *Expense Example* | **27** |
| *Additional Federal Income Tax Information* | **28** |
| *Advisory Contract Renewal* | **29** |
| *Privacy Policy (inside back cover)* |  |

---

------

*The Fund is distributed by Victory Capital Services, Inc. Victory Capital Management Inc. is the investment adviser to the Fund and receives fees from the Fund for performing services for the Fund.*

*This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus of the Fund.*

*For additional information about any Victory Fund, including fees, expenses, and risks, view our prospectus online at vcm.com or call 800-539-3863. Read it carefully before you invest or send money.*

*The information in this report is based on data obtained from recognized services and sources and is believed to be reliable. Any opinions, projections, or recommendations in this report are subject to change without notice and are not intended as individual investment advice. Past investment performance of the Fund markets or securities mentioned herein should not be considered to be indicative of future results.*

***• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE***

![](j2325455_ba002.jpg)

*Call Victory at:*

*800-539-FUND* (800-539-3863)

*Visit our website at:*

*vcm.com*

------

*Victory Funds Letter to Shareholders<br> (Unaudited)*

Dear Shareholder,

Our most recent annual reporting period ending December 31, 2022, was filled with epic challenges. Even the most seasoned investors who have been through more than one economic cycle have not witnessed financial markets like this in a long time, if ever.

Consider what transpired and how the investing backdrop changed so abruptly. The year began well enough with ample liquidity and an encouraging outlook for corporate profits. But that optimism faded early and was punctuated by the start of a terrible war in Eastern Europe. This fueled rising energy prices and intensified an inflation problem that was proving to be more than "transitory."

The inflation data was particularly troublesome and surprised many with some of the highest readings since the 1970s. In response, the U.S. Federal Reserve (the "Fed") pivoted to a far more restrictive monetary policy than anyone anticipated. Over the course of 2022, the Fed boosted the Fed funds interest rate on seven different occasions by a total of 4.5 percentage points. And if that wasn't enough, zero-Covid policies in China further exacerbated supply chain issues and dampened the outlook for global growth.

As one might expect, all of these obstacles ratcheted up volatility across financial markets. Broad market stock indices pulled back substantially around the world. The S&P 500<sup>®</sup> Index, the bell-weather proxy for our domestic stock market, delivered a negative total return of more than 18% for our annual reporting period.

Perhaps what made 2022 even more difficult was the performance of fixed income markets, which normally are considered a safe haven in times of equity turmoil. But not this past year. In fact, the Bloomberg US Aggregate Bond Index—a proxy for a diversified fixed income portfolio and one that many investors and institutions follow closely—delivered a negative total return of approximately 13%, its worst annual performance since the 1970s. That's not exactly the offset to equity performance that many investors were expecting from bonds.

It was a tough year, and we fully acknowledge that the steady drumbeat of bad news and bouts of stomach-churning volatility can take a toll on investors' psyche. Nobody likes opening their account statements during declining markets; and even when markets snap back sharply (as happened this past July and October), investors often wonder if they have missed an opportunity.

Through all of the challenges in our most recent annual reporting period, we are reminded of two enduring realities: 1) financial markets are dynamic and apt to change abruptly; 2) it's vital that we remain calm and rational whenever faced with those inevitable bouts of turmoil.

Fortunately, we think that investors can take comfort knowing that all of our independent investment franchises have experience managing portfolios through a wide variety of market environments. Our investment professionals remain calm during turbulent financial markets, and we think it's imperative that investors do the same.

------

We still believe that a long-term plan, a well-diversified portfolio across asset classes and investment types, and a clear understanding of individual risk tolerances are the key ingredients for staying the course and progressing on investment goals. Moreover, all our investment professionals continually monitor the environment and work hard to position portfolios opportunistically no matter what the markets bring. Remember, turmoil can also create opportunity.

On the following pages you will find information relating to your Victory Funds investment. If you have any questions, we encourage you to contact your financial advisor. If you invest with us directly, you may call 800-539-3863 or visit our website at vcm.com.

From all of us here at Victory Capital, thank you for your ongoing confidence and for letting us help you work toward your investment goals.

![](j2325455_ba003.jpg)

**Christopher K. Dyer, CFA**

*President,*

*Victory Funds*

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Victory RS Large Cap Alpha VIP Series

**Managers' Commentary** <br>(Unaudited)

**What were the market conditions during the reporting period?**

The fourth quarter of 2022 certainly began well enough, even as the year ended on a downbeat. Financial markets had been languishing all year and were in the doldrums as summer ended, but most segments of the equity market bounced back sharply in October and November thanks to better-than-expected earnings and signs that inflation may have peaked. Value stocks led the way, with the Russell 1000<sup>®</sup> Value Index up 10.25% in October and an additional 6.25% in November, while the Russell 2000<sup>®</sup> Value Index was up 12.59% in October and 3.06% in November. Unfortunately, that euphoria was short-lived.

Sentiment soured once again in December as investors began to digest how hawkish the U.S. Federal Reserve (the "Fed") really intended to be, given its repeated statements that it would not stop hiking the Fed funds interest rate until inflation was well in check irrespective of the impact to the broader economy. Some investors and corporate leaders began to question whether Fed Chair Jerome Powell was up to the task of maintaining an economic environment supportive of corporate growth while still taming inflation.

These growing concerns turned into a full-fledged market sell-off in December, with the Russell 1000<sup>®</sup> Value Index shedding 4.03% and the Russell 2000<sup>®</sup> Value Index falling 6.56%. This reflected some poor earnings guidance by corporations and ongoing hawkish comments by Chairman Powell. In fact, the Chairman bluntly told market participants, "Fed hikes and volatility have been central themes of 2022, and investors should expect both — along with hits to corporate earnings — as we enter the new year." On top of that, he braced investors for the possibility of a recession in 2023. All this economic uncertainty merely exacerbated the interest rate backdrop and highlighted the difficulties facing the Fed in carrying out its dual monetary policy goals.

Yet despite the volatility and challenges in the fourth quarter, it was not all bad news as we closed out 2022. For starters, it really does seem to us that the worst inflation numbers are behind us. Demand for goods has decreased, as evidenced by higher inventories among retailers and a continued decline in energy prices globally. This should eventually provide some relief for battered markets. There are even reasons for optimism within certain sectors of the economy (and individual companies). Chief among these is the fact that select corporate operations (and earnings) have come in better than expected, which means the market decline has improved valuations and may be creating a more favorable risk-reward tradeoff going forward.

In terms of the overall numbers for our area of focus — domestic value-oriented strategies — the Russell 3000<sup>®</sup> Value Index was up 12.18% during the fourth quarter and was down 7.98% for the full year. In terms of market capitalizations, small-cap value stocks, as represented by the Russell 2000<sup>®</sup> Value Index, declined 14.48% for the year. The Russell Midcap<sup>®</sup> Value Index declined by 12.03% for the full year, while large-cap value stocks, as represented by the Russell 1000<sup>®</sup> Value Index (the "Index"), posted an annual decline of 7.54%.

Looking ahead, many investors are not only wondering just how restrictive monetary policy will become, but also how healthy the economy really is. Of course, nobody can answer these questions with absolute certainty, but we can definitively say that the current investment landscape continues to be polarizing, and we would not be surprised to see further bouts of elevated volatility in 2023.

------

Victory RS Large Cap Alpha VIP Series

**Managers' Commentary** (continued)

**How did Victory RS Large Cap Alpha VIP Series (the "Fund") perform during the reporting period?**

The Fund returned -4.33% for the fiscal year ended December 31, 2022, outperforming the Index, which returned -7.54% for the reporting period.

**What strategies did you employ during the reporting period?**

The Fund outperformed the Index primarily through stock selection in the Financials and Utilities sectors. Our focus on businesses that have the potential for long-term value creation while limiting our downside paid off during 2022. For the year, the stocks that provided positive contributions tended to be undergoing a unique structural change, but also holding a competitive advantage. Within the Financials sector, Fairfax Financial and The Progressive Corp. were significant positive contributors to performance. The Utilities sector provided other names that benefitted the portfolio. Constellation Energy and Vistra Corporation led performance. Where we struggled was in a couple of our holdings in the Materials sector. Sealed Air Corp. saw its share price fall as rising input costs impacted profitability. Similarly, PPG Industries, Inc. saw its margins impacted as price increases could not offset rising energy costs. At the end of the day, we managed to outperform the Index in 2022 and we remain confident in our process and feel it will provide us with the discipline which leads to longer-term performance which will benefit our investors over time.

We continue to believe that the current environment is creating potential pockets of opportunity for astute, long-term investors. Our experience has taught us that any tumultuous market backdrop (and the subsequent short-term price dislocations) can be an advantage for active managers. Our team continues to seek and identify companies that share two vital traits: a trend of improving their ROIC (return on invested capital), and stock prices trading at what we perceive as a deep discount to intrinsic value. We believe that allocating to these types of companies is a means to generate attractive risk-adjusted returns over longer time periods, and this continues to be a focus for us.

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Victory RS Large Cap Alpha VIP Series

**Investment Overview**<br> (Unaudited)

**Average Annual Total Return**

*Year Ended December 31, 2022*

---

| | | | |
|:---|:---|:---|:---|
| | **Class I** | | |
| **INCEPTION DATE** | *4/13/83* |  |  |
|  | **Net Asset Value** | **Russell 1000<sup>®</sup>Value<sup>1</sup>** | **S&P 500<sup>®</sup>Index<sup>2</sup>** |
| *One Year* | *–4.33%* | *–7.54%* | *–18.11%* |
| *Five Year* | *7.02%* | *6.67%* | *9.42%* |
| *Ten Year* | *10.86%* | *10.29%* | *12.56%* |

---

***The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit vcm.com.***

*Total return measures the price change in a share assuming the reinvestment of all net investment income and realized capital gain distributions, if any. The total returns quoted do not reflect adjustments made to the enclosed financial statements in accordance with U.S. Generally Accepted Accounting Principles or the deduction of taxes that a shareholder would pay on net investment income and realized capital gain distributions, including reinvested distributions, or redemptions of shares. The total return figures set forth above include all waivers of fees. Without such fee waivers, the total returns would have been lower. Total returns do not reflect the effects of charges deducted pursuant to the terms of The Guardian Insurance & Annuity Company, Inc.'s variable contracts. Inclusion of such charges would reduce the total returns for all periods shown.*

**Victory RS Large Cap Alpha VIP Series — Growth of $10,000**

![](j2325455_bc004.jpg)

*<sup>1</sup>The Russell 1000<sup>®</sup> Value Index is made up of about 1,000 of the largest companies in the U.S. equity market. It represents top companies by market capitalization. It's made up of about 90% of the total market capitalization of all U.S. stocks. This index does not include the effect of sales charges, commissions, expenses, or taxes, is not representative of the Fund, and it is not possible to invest directly in an index.*

*<sup>2</sup>The S&P 500<sup>®</sup> Index is an unmanaged index comprised of 500 domestically traded common stocks, is weighted according to the market value of each common stock in the index, and includes reinvestment of dividends. This index does not include the effect of sales charges, commissions, expenses, or taxes, is not representative of the Fund, and it is not possible to invest directly in an index.*

*The graph reflects investment of growth of a hypothetical $10,000 investment in the Fund.*

*The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares.*

**Past performance is not indicative of future results.**

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| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory RS Large Cap Alpha VIP Series** | December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Investment Objective and Portfolio Holdings:**

The Fund seeks to provide long-term capital appreciation.

**Top 10 Holdings\*:**

*December 31, 2022*

*(% of Net Assets)*

---

| | |
|:---|:---|
| *Fairfax Financial Holdings Ltd.* | *5.3%* |
| *Markel Corp.* | *4.5%* |
| *The Progressive Corp.* | *3.7%* |
| *Vistra Corp.* | *3.6%* |
| *Merck & Co., Inc.* | *3.2%* |
| *Brown & Brown, Inc.* | *3.2%* |
| *Cboe Global Markets, Inc.* | *3.2%* |
| *AbbVie, Inc.* | *2.9%* |
| *Fidelity National Information Services, Inc.* | *2.6%* |
| *UnitedHealth Group, Inc.* | *2.6%* |

---

**Sector Allocation\*:**

*December 31, 2022*

*(% of Net Assets)*

![](j2325455_bc005.jpg)

\* Does not include futures contracts, money market instruments, and short-term investments purchased with cash collateral from securities loaned.

Percentages are of the net assets of the Fund and may not equal 100%.

Refer to the Schedule of Portfolio Investments for a complete list of securities.

------

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| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory RS Large Cap Alpha VIP Series** | **Schedule of Portfolio Investments**<br> December 31, 2022 |

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| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Common Stocks (97.0%)** | **Common Stocks (97.0%)** | **Common Stocks (97.0%)** |
| **Banks (1.5%):** | **Banks (1.5%):** | **Banks (1.5%):** |
| JPMorgan Chase & Co. | 88390 | $11853099 |
| **Capital Markets (7.3%):** | **Capital Markets (7.3%):** | **Capital Markets (7.3%):** |
| Cboe Global Markets, Inc. | 195560 | 24536913 |
| Interactive Brokers Group, Inc. | 270400 | 19563440 |
| State Street Corp. | 163890 | 12712948 |
|  |  | 56813301 |
| **Communication Services (1.8%):** | **Communication Services (1.8%):** | **Communication Services (1.8%):** |
| Alphabet, Inc., Class A (a) | 153480 | 13541540 |
| **Consumer Discretionary (3.9%):** | **Consumer Discretionary (3.9%):** | **Consumer Discretionary (3.9%):** |
| Darden Restaurants, Inc. | 66040 | 9135313 |
| LKQ Corp. | 260690 | 13923453 |
| Mattel, Inc. (a) | 411870 | 7347761 |
|  |  | 30406527 |
| **Consumer Staples (7.7%):** | **Consumer Staples (7.7%):** | **Consumer Staples (7.7%):** |
| Keurig Dr Pepper, Inc. | 438510 | 15637267 |
| Lamb Weston Holdings, Inc. | 101560 | 9075402 |
| Mondelez International, Inc., Class A | 289670 | 19306505 |
| U.S. Foods Holding Corp. (a) | 457130 | 15551562 |
|  |  | 59570736 |
| **Energy (8.2%):** | **Energy (8.2%):** | **Energy (8.2%):** |
| Enterprise Products Partners, LP | 674220 | 16262186 |
| Hess Corp. | 101790 | 14435858 |
| Marathon Oil Corp. | 676730 | 18319081 |
| Ovintiv, Inc. | 282400 | 14320504 |
|  |  | 63337629 |
| **Health Care (19.1%):** | **Health Care (19.1%):** | **Health Care (19.1%):** |
| AbbVie, Inc. | 138650 | 22407227 |
| Cigna Corp. | 56130 | 18598114 |
| Humana, Inc. | 37930 | 19427367 |
| Johnson & Johnson | 80550 | 14229157 |
| McKesson Corp. | 23730 | 8901598 |
| Medtronic PLC | 250340 | 19456425 |
| Merck & Co., Inc. | 226530 | 25133503 |
| UnitedHealth Group, Inc. | 38135 | 20218414 |
|  |  | 148371805 |
| **Industrials (11.9%):** | **Industrials (11.9%):** | **Industrials (11.9%):** |
| Eaton Corp. PLC | 62960 | 9881572 |
| FedEx Corp. | 40960 | 7094272 |
| Johnson Controls International PLC | 237460 | 15197440 |
| L3Harris Technologies, Inc. | 40500 | 8432505 |
| Leidos Holdings, Inc. | 139330 | 14656123 |
| PACCAR, Inc. | 68130 | 6742826 |
| Raytheon Technologies Corp. | 91251 | 9209051 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory RS Large Cap Alpha VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| Sensata Technologies Holding PLC | 348660 | $14078891 |
| Union Pacific Corp. | 35270 | 7303359 |
|  |  | 92596039 |
| **Information Technology (4.2%):** | **Information Technology (4.2%):** | **Information Technology (4.2%):** |
| Fidelity National Information Services, Inc. | 298870 | 20278330 |
| FleetCor Technologies, Inc. (a) | 47510 | 8726637 |
| Global Payments, Inc. | 39220 | 3895330 |
|  |  | 32900297 |
| **Insurance (16.7%):** | **Insurance (16.7%):** | **Insurance (16.7%):** |
| Brown & Brown, Inc. | 434640 | 24761441 |
| Fairfax Financial Holdings Ltd. | 68840 | 40784827 |
| Markel Corp. (a) | 26810 | 35321907 |
| The Progressive Corp. | 222610 | 28874743 |
|  |  | 129742918 |
| **Materials (4.0%):** | **Materials (4.0%):** | **Materials (4.0%):** |
| PPG Industries, Inc. | 107260 | 13486872 |
| Sealed Air Corp. | 357470 | 17830604 |
|  |  | 31317476 |
| **Real Estate (4.3%):** | **Real Estate (4.3%):** | **Real Estate (4.3%):** |
| Alexandria Real Estate Equities, Inc. | 103380 | 15059364 |
| Equity LifeStyle Properties, Inc. | 114200 | 7377320 |
| Invitation Homes, Inc. | 369390 | 10948720 |
|  |  | 33385404 |
| **Utilities (6.4%):** | **Utilities (6.4%):** | **Utilities (6.4%):** |
| Constellation Energy Corp. | 91249 | 7866576 |
| Exelon Corp. | 320600 | 13859538 |
| Vistra Corp. | 1208609 | 28039729 |
|  |  | 49765843 |
| **Total Common Stocks (Cost $648,526,593)** | **Total Common Stocks (Cost $648,526,593)** | 753602614 |
| **Total Investments (Cost $648,526,593) — 97.0%** | **Total Investments (Cost $648,526,593) — 97.0%** | 753602614 |
| **Other assets in excess of liabilities — 3.0%** | **Other assets in excess of liabilities — 3.0%** | 23427067 |
| **NET ASSETS — 100.00%** | **NET ASSETS — 100.00%** | $777029681 |

---

(a) Non-income producing security.

LP — Limited Partnership

PLC — Public Limited Company

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statement of Assets and Liabilities**<br> December 31, 2022 |

---

---

| | |
|:---|:---|
| | **Victory <br>RS Large Cap <br>Alpha VIP <br>Series** |
| **Assets:** | **Assets:** |
| Investments, at value (Cost $648,526,593) | $753602614 |
| Cash | 22879855 |
| Receivables: | Receivables: |
| Interest and dividends | 1216323 |
| Capital shares issued | 256 |
| From Adviser | 135165 |
| Prepaid expenses | 1328 |
| Total Assets | 777835541 |
| **Liabilities:** | **Liabilities:** |
| Payables: | Payables: |
| Capital shares redeemed | 116690 |
| Accrued expenses and other payables: | Accrued expenses and other payables: |
| Investment advisory fees | 332177 |
| Administration fees | 41704 |
| Custodian fees | 9339 |
| Transfer agent fees | 246685 |
| Compliance fees | 593 |
| Trustees' fees | 146 |
| Other accrued expenses | 58526 |
| Total Liabilities | 805860 |
| **Net Assets:** | **Net Assets:** |
| Capital | 609071186 |
| Total accumulated earnings/(loss) | 167958495 |
| Net Assets | $777029681 |
| Shares (unlimited shares authorized with a par value of $0.001 per share): | 18617009 |
| Net asset value: | $41.74 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statement of Operations**<br> For the Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| | **Victory <br>RS Large Cap <br>Alpha VIP <br>Series** |
| **Investment Income:** | **Investment Income:** |
| Dividends | $13774236 |
| Interest | 133456 |
| Securities lending (net of fees) | 1084 |
| Total Income | 13908776 |
| **Expenses:** | **Expenses:** |
| Investment advisory fees | 4213792 |
| Administration fees | 458798 |
| Sub-Administration fees | 13977 |
| Custodian fees | 39087 |
| Transfer agent fees | 1156116 |
| Trustees' fees | 50951 |
| Compliance fees | 6788 |
| Legal and audit fees | 73686 |
| Other expenses | 25811 |
| Total Expenses | 6039006 |
| Expenses waived/reimbursed by Adviser | (1406467) |
| Net Expenses | 4632539 |
| Net Investment Income (Loss) | 9276237 |
| **Realized/Unrealized Gains (Losses) from Investments:** | **Realized/Unrealized Gains (Losses) from Investments:** |
| Net realized gains (losses) from investment securities and foreign currency <br>transactions | 52223448 |
| Net change in unrealized appreciation/depreciation on investment securities | (100331466) |
| Net realized/unrealized gains (losses) on investments | (48108018) |
| Change in net assets resulting from operations | $(38831781) |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statements of Changes in Net Assets** |

---

---

| | | |
|:---|:---|:---|
| | **Victory RS Large Cap Alpha <br>VIP Series** | **Victory RS Large Cap Alpha <br>VIP Series** |
| | **Year<br>Ended<br>December 31, <br>2022** | **Year<br>Ended<br>December 31, <br>2021** |
| **From Investment Activities:** | **From Investment Activities:** | **From Investment Activities:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income (Loss) | $9276237 | $13945148 |
| Net realized gains (losses) | 52223448 | 152682981 |
| Net change in unrealized appreciation/depreciation | (100331466) | 33763008 |
| Change in net assets resulting from operations | (38831781) | 200391137 |
| Change in net assets resulting from distributions to shareholders | (158023255) | (10232918) |
| Change in net assets resulting from capital transactions | 21917217 | (139380567) |
| Change in net assets | (174937819) | 50777652 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of period | 951967500 | 901189848 |
| End of period | $777029681 | $951967500 |
| **Capital Transactions:** | **Capital Transactions:** | **Capital Transactions:** |
| Proceeds from shares issued | $13315255 | $15969173 |
| Distributions reinvested | 158023255 | 10232918 |
| Cost of shares redeemed | (149421293) | (165582658) |
| Change in net assets resulting from capital transactions | $21917217 | $(139380567) |
| **Share Transactions:** | **Share Transactions:** | **Share Transactions:** |
| Issued | 254405 | 308380 |
| Reinvested | 3683945 | 192493 |
| Redeemed | (2840396) | (3239565) |
| Change in Shares | 1097954 | (2738692) |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Financial Highlights** |

---

*For a Share Outstanding Throughout Each Period*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Victory RS Large Cap Alpha VIP Series** | **Victory RS Large Cap Alpha VIP Series** | **Victory RS Large Cap Alpha VIP Series** | **Victory RS Large Cap Alpha VIP Series** | **Victory RS Large Cap Alpha VIP Series** |
| | **Year<br>Ended<br>December 31,<br>2022** | **Year<br>Ended<br>December 31,<br>2021** | **Year<br>Ended<br>December 31,<br>2020** | **Year<br>Ended<br>December 31,<br>2019** | **Year<br>Ended<br>December 31,<br>2018** |
| **Net Asset Value, Beginning of Period** | $54.34 | $44.49 | $48.27 | $43.45 | $54.01 |
| Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: |
| Net investment income (loss) (a) | 0.57 | 0.75 | 0.62 | 0.70 | 0.60 |
| Net realized and unrealized gains <br>(losses) on investments | (2.78) | 9.69 | (0.90) | 12.75 | (5.44) |
| Total from Investment <br>Activities | (2.21) | 10.44 | (0.28) | 13.45 | (4.84) |
| Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: |
| Net investment income | (0.61) | (0.59) | (0.56) | (0.48) | (0.02) |
| Net realized gains from investments | (9.78) |  | (2.94) | (8.15) | (5.70) |
| Total Distributions to <br>Shareholders | (10.39) | (0.59) | (3.50) | (8.63) | (5.72) |
| **Net Asset Value, End of Period** | $41.74 | $54.34 | $44.49 | $48.27 | $43.45 |
| Total Return (b) (c) | (4.33)% | 23.49% | (0.44)% | 31.16% | (9.00)% |
| **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** |
| Net Expenses (d) | 0.55% | 0.55% | 0.55% | 0.55% | 0.55% |
| Net Investment Income (Loss) | 1.10% | 1.47% | 1.47% | 1.37% | 1.10% |
| Gross Expenses (d) | 0.72% | 0.73% | 0.74% | 0.73% | 0.62% |
| **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** |
| Net Assets at end of period (000's) | $777030 | $951968 | $901190 | $958695 | $846990 |
| Portfolio Turnover | 60% | 51<br> %(e) | 101<br> %(f) | 50% | 60% |

---

(a) Per share net investment income (loss) has been calculated using the average daily shares method.

(b) Total returns do not reflect the effects of charges deducted pursuant to the terms of The Guardian Insurance & Annuity Company, Inc.'s variable contracts. Inclusion of such charges would reduce the total returns for all periods shown.

(c) Assumes reinvestment of all net investment income and realized capital gain distributions, if any, during the period. Includes adjustments in accordance with U.S. Generally Accepted Accounting Principles and could differ from the reported total return.

(d) Does not include acquired fund fees and expenses, if any.

(e) Reflects a return to normal trading levels after a prior-year strategy or allocation shift.

(f) Reflects an increase in trading activity due to asset allocation shifts.

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements**<br> December 31, 2022 |

---

**1. Organization:**

Victory Variable Insurance Funds (the "Trust") is organized as a Delaware statutory trust and the Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. The Trust is comprised of six funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with a par value of $0.001 per share.

The accompanying financial statements are those of Victory RS Large Cap Alpha VIP Series (the "Fund"), a series of the Trust. The Fund offers a single class of shares: Class I. The Fund's shares are only available for purchase by certain separate accounts of insurance companies as investments for certain variable annuity plans and variable life insurance contracts issued by those insurance companies. The Fund is classified as diversified under the 1940 Act.

Victory Capital Management Inc. ("VCM" or the "Adviser") is an indirect wholly owned subsidiary of Victory Capital Holdings, Inc., a publicly traded Delaware corporation, and a wholly owned direct subsidiary of Victory Capital Operating, LLC.

Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund. However, based on experience, the Fund expects that risk of loss to be remote.

**Significant Accounting Policies:**

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with U.S. Generally Accepted Accounting Principles ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies under Accounting Standards Codification Topic 946.

**Investment Valuation:**

The Fund records investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The valuation techniques described below maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Fund's investments are summarized in the three broad levels listed below:

• Level 1 — quoted prices (unadjusted) in active markets for identical securities

• Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, or credit spreads, applicable to those securities, etc.)

• Level 3 — significant unobservable inputs (including the Adviser's assumptions in determining the fair value of investments)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.

The Adviser, appointed as the valuation designee by the Trust's Board of Trustees' (the "Board"), has established the Pricing and Liquidity Committee (the "Committee"), and subject to Board oversight, the Committee administers and oversees the Fund's valuation policies and procedures, which are approved by the Board.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

Portfolio securities listed or traded on securities exchanges, including Exchange-Traded Funds ("ETFs"), and American Depositary Receipts ("ADRs"), are valued at the closing price on the exchange or system where the security is principally traded, if available, or at the Nasdaq Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.

Investments in open-end investment companies, other than ETFs, are valued at their net asset value ("NAV"). These valuations are typically categorized as Level 1 in the fair value hierarchy.

In the event that price quotations or valuations are not readily available, investments are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded and the actual price realized from the sale of a security may differ materially from the fair value price. Valuing these securities at fair value is intended to cause the Fund's NAV to be more reliable than it otherwise would be.

A summary of the valuations as of December 31, 2022, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed on the Schedule of Portfolio Investments:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks | $753602614 | $— | $— | $753602614 |
| Total | $753602614 | $— | $— | $753602614 |

---

As of December 31, 2022, there were no transfers into/out of Level 3.

**Real Estate Investment Trusts ("REITs"):**

The Fund may invest in REITs, which report information on the source of their distributions annually. REITs are pooled investment vehicles that invest primarily in income-producing real estate or real-estate related loans or interests (such as mortgages). Certain distributions received from REITs during the year are recorded as realized gains or return of capital as estimated by the Fund or when such information becomes known.

**Investment Companies:**

Open-End Funds:

The Fund may invest in portfolios of open-end investment companies. These investment companies value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value by the methods established by the board of directors of the underlying funds.

**Derivative Instruments:**

Foreign Exchange Currency Contracts:

The Fund may enter into foreign exchange currency contracts to convert U.S. dollars to and from various foreign currencies. A foreign exchange currency contract is an obligation by a Fund to purchase or sell a specific currency at a future date at a price (in U.S. dollars) set at the time of the contract. The Fund does not engage in "cross-currency" foreign exchange contracts (i.e., contracts to purchase or sell one foreign currency in exchange for another foreign currency). The Fund's foreign exchange currency contracts might be considered spot contracts (typically a contract of one week or less) or forward contracts (typically a contract term over one week). A spot contract is entered into for purposes

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

of hedging against foreign currency fluctuations relating to a specific portfolio transaction, such as the delay between a security transaction trade date and settlement date. Forward contracts are entered into for purposes of hedging portfolio holdings or concentrations of such holdings. The Fund enters into foreign exchange currency contracts solely for spot or forward hedging purposes, and not for speculative purposes (i.e., the Fund does not enter into such contracts solely for the purpose of earning foreign currency gains). Each foreign exchange currency contract is adjusted daily by the prevailing spot or forward rate of the underlying currency, and any appreciation or depreciation is recorded for financial statement purposes as unrealized until the contract settlement date, at which time the Fund records realized gains or losses equal to the difference between the value of a contract at the time it was opened and the value at the time it was closed. The Fund could be exposed to risk if a counterparty is unable to meet the terms of a foreign exchange currency contract or if the value of the foreign currency changes unfavorably. In addition, the use of foreign exchange currency contracts does not eliminate fluctuations in the underlying prices of the securities. For the year ended December 31, 2022, the Fund had no open forward foreign exchange currency contracts.

**Investment Transactions and Related Income:**

Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date or the last business day of the reporting period. Interest income is determined on the basis of coupon interest accrued using the effective interest method which adjusts, where applicable, the amortization of premiums or accretion of discounts. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are recorded on the identified cost basis.

**Securities Lending:**

The Fund, through a Securities Lending Agreement with Citibank, N.A. ("Citibank"), may lend its securities to qualified financial institutions, such as certain broker-dealers and banks, to earn additional income, net of income retained by Citibank. Borrowers are required to initially secure their loans for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are generally cured the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities and other securities as permitted by Securities and Exchange Commission ("SEC") guidelines. The cash collateral is invested in short-term instruments or cash equivalents, primarily open-end investment companies, as noted on the Fund's Schedule of Portfolio Investments. The Fund effectively does not have control of the non-cash collateral and therefore it is not disclosed on the Fund's Schedule of Portfolio Investments. Collateral requirements are determined daily based on the value of the Fund's securities on loan as of the end of the prior business day. During the time portfolio securities are on loan, the borrower will pay the Fund any dividends or interest paid on such securities plus any fee negotiated between the parties to the lending agreement. The Fund also earns a return from the collateral. The Fund pays Citibank various fees in connection with the investment of cash collateral and fees based on the investment income received from securities lending activities. Securities lending income (net of these fees) is disclosed on the Statement of Operations. Loans are terminable upon demand and the borrower must return the loaned securities within the lesser of one standard settlement period or five business days. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. In addition, there is a risk that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower.

The Fund's agreement with Citibank does not include master netting provisions. Non-cash collateral received by the Fund may not be sold or repledged, except to satisfy borrower default.

As of December 31, 2022, the Fund did not have any securities on loan.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

**Foreign Currency Translations:**

The accounting records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities of the Fund denominated in a foreign currency are translated into U.S. dollars at current exchange rates. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the exchange rates on the date of the transactions. The Fund does not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are disclosed as Net change in unrealized appreciation/depreciation on investment securities on the Statement of Operations. Any realized gains or losses from these fluctuations are disclosed as Net realized gains (losses) from investment securities and foreign currency transactions on the Statement of Operations.

**Federal Income Taxes:**

The Fund intends to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes is required in the financial statements. The Fund has a tax year end of December 31.

For the year ended December 31, 2022, the Fund did not incur any income tax, interest, or penalties, and has recorded no liability for net unrecognized tax benefits relating to uncertain tax positions.

Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax years, which includes the current fiscal tax year end). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

**Allocations:**

Expenses directly attributable to the Fund are charged to the Fund, while expenses that are attributable to more than one fund in the Trust, or jointly with an affiliated trust, are allocated among the respective funds in the Trust and/or an affiliated trust based upon net assets or another appropriate basis.

**3. Purchases and Sales:**

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the year ended December 31, 2022, were as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Excluding <br>U.S. Government Securities** | &nbsp;&nbsp;&nbsp;&nbsp;**Excluding <br>U.S. Government Securities** |
| **Purchases** | **Sales** |
| $488258071 | $608874829 |

---

**4. Fees and Transactions with Affiliates and Related Parties:**

**Investment Advisory Fees:**

Investment advisory services are provided to the Fund by the Adviser, which is a New York corporation registered as an investment adviser with the SEC.

Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive fees accrued daily and paid monthly at an annualized rate of 0.50% of the Fund's average daily net assets. Amounts incurred and paid to VCM for the year ended December 31, 2022, are reflected on the Statement of Operations as Investment advisory fees.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

**Administration and Servicing Fees:**

VCM also serves as the Fund's administrator and fund accountant. Under the Administration and Fund Accounting Agreement, VCM is entitled to receive fees based on a percentage of the average daily net assets of the Trust, Victory Portfolios and Victory Portfolios II. The tiered rates at which VCM is paid by the Funds are shown in the table below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** |
| **Up to $15 billion** | **Up to $15 billion** | **$15 billion – $30 billion** | **$15 billion – $30 billion** | **Over $30 billion** |
| 0.08 | %, plus | 0.05 | %, plus | 0.04% |

---

Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Administration fees.

Citi Fund Services Ohio, Inc. ("Citi"), an affiliate of Citibank, acts as sub-administrator and sub-fund accountant to the Fund pursuant to the Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Fund reimburses VCM and Citi for out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Sub-Administration fees.

The Fund (as part of the Trust) has entered into an agreement with the Adviser to provide compliance services, pursuant to which the Adviser furnishes its compliance personnel, including the services of the Chief Compliance Officer ("CCO"), and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration, and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The CCO is an employee of the Adviser, which pays the compensation of the CCO and support staff. The funds in the Trust, Victory Portfolios, Victory Portfolios II and USAA Mutual Funds (collectively, the "Victory Funds Complex"), in aggregate, compensate the Adviser for these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Compliance fees.

**Transfer Agency Fees:**

FIS Investor Services, LLC ("FIS") serves as the Fund's transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Transfer agent fees.

**Distributor/Underwriting Services:**

Victory Capital Services, Inc. (the "Distributor"), an affiliate of the Adviser, serves as Distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust, and receives no fee or other compensation for these services.

**Other Fees:**

Citibank serves as the Fund's custodian. The Fund pays Citibank a fee for providing these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Custodian fees.

Sidley Austin LLP provides legal services to the Trust.

The Adviser has entered into an expense limitation agreement with the Fund until at least April 30, 2023. Under the terms of the agreement, the Adviser has agreed to waive fees or reimburse certain expenses to the extent that ordinary operating expenses incurred in any fiscal year exceed the expense limit for the Fund. Such excess amounts will be the liability of the Adviser. Acquired fund fees and expenses, interest, taxes, brokerage commissions, other expenditures which are capitalized in

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund's business are excluded from the expense limits. As of December 31, 2022, the expense limit (excluding voluntary waivers) is 0.55%.

Under the terms of the expense limitation agreement, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period of up to three years (thirty-six (36) months) after the waiver or reimbursement took place, subject to the lesser of any operating expense limits in effect at the time of: (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount.

As of December 31, 2022, the following amounts are available to be repaid to the Adviser. The Fund has not recorded any amounts available to be repaid as a liability due to an assessment that such repayments are not probable at December 31, 2022.

---

| | | | |
|:---|:---|:---|:---|
| **Expires<br>2023** | **Expires<br>2024** | **Expires<br>2025** | **Total** |
| $1542248 | $1660693 | $1406467 | $4609408 |

---

The Adviser may voluntarily waive or reimburse additional fees to assist the Fund in maintaining competitive expense ratios. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the year ended December 31, 2022.

Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, administrator, fund accountant, sub-administrator, sub-fund accountant, custodian, legal counsel, and Distributor.

**5. Risks:**

The Fund may be subject to other risks in addition to these identified risks.

**<u>Equity Risk</u>** — The value of the equity securities in which the Fund invests may decline in response to developments affecting individual companies and/or general, economic conditions in the United States or abroad. A company's earnings or dividends may not increase as expected (or may decline) because of poor management, competitive pressures, reliance on particular suppliers or geographical regions, labor problems or shortages, corporate restructurings, fraudulent disclosures, man-made or natural disasters, military confrontations or wars, terrorism, public health crises, or other events, conditions, and factors. Price changes may be temporary or last for extended periods.

**<u>Limited Portfolio Risk</u>** — To the extent the Fund invests its assets in a more limited number of issuers than other mutual funds, a decline in the market value of a particular security may affect the Fund's value more than if the Fund invested in a larger number of issuers.

**<u>Market Risk</u>** — Overall market risks may affect the value of the Fund. Domestic and international factors such as political events, war, terrorism, trade disputes, inflation rates, interest rate levels and other fiscal and monetary policy changes, cybersecurity incidents, pandemics and other public health crises, sanctions against a particular foreign country, its nationals, businesses or industries and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods or other catastrophes, may add to instability in global economies and markets generally, and may lead to increased market volatility. Global economies and financial markets are highly interconnected, which increases the possibility that conditions in one country or region might adversely affect issuers in another country or region. The impact of these and other factors may be short-term or may last for extended periods.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

**6. Borrowing and Interfund Lending:**

**Line of Credit:**

The Victory Funds Complex participates in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 27, 2022, with a termination date of June 26, 2023. Under the agreement with Citibank, the Victory Funds Complex may borrow up to $600 million, of which $300 million is committed and $300 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory Floating Rate Fund, another series of the Victory Funds Complex, with Victory Floating Rate Fund paying the related commitment fees for that amount. The purpose of the Line of Credit is to meet temporary or emergency cash needs. For the year ended December 31, 2022, Citibank received an annual commitment fee of 0.15% on $300 million for providing the Line of Credit. Each fund in the Victory Funds Complex paid a pro-rata portion of the commitment fees plus any interest on amounts borrowed. For the period from January 1, 2022, through June 27, 2022, interest was based on the one-month London Interbank Offered Rate ("LIBOR") plus one percent. Effective with the renewal, for the period June 28, 2022, through December 31, 2022, interest was based on the one-month Secured Overnight Financing Rate (SOFR) plus 1.10 percent. The Fund is not expecting any material financial impact of transition from LIBOR to SOFR. Interest charged to the Fund during the period, if applicable, is reflected on the Statement of Operations under Line of credit fees.

The Fund had no borrowings under the Line of Credit agreement during the year ended December 31, 2022.

**Interfund Lending:**

The Trust and the Adviser rely on an exemptive order granted by the SEC in March 2017 (the "Order"), permitting the establishment and operation of an Interfund Lending Facility (the "Facility"). The Facility allows the Fund to directly lend and borrow money to or from any other fund in the Victory Funds Complex that is permitted to participate in the Facility, relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are allowed for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. As a Borrower, interest charged to the Fund, if any, during the period, is reflected on the Statement of Operations under Interfund lending fees. As a Lender, interest earned by the Fund, if any, during the period, is reflected on the Statement of Operations under Interfund lending.

The Fund did not utilize or participate in the Facility during the year ended December 31, 2022.

**7. Federal Income Tax Information:**

The Fund intends to distribute any net investment income annually. Distributable net realized gains, if any, are declared and paid at least annually.

The amounts of dividends from net investment income and distributions from net realized gains (collectively, distributions to shareholders) are determined in accordance with federal income tax regulations, which may differ from GAAP. To the extent these "book/tax" differences are permanent in nature (e.g., net operating loss, prior year true-up and distribution reclassification), such amounts are reclassified within the components of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales) do not require reclassification. To the extent dividends and distributions exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. Net investment losses incurred by the Fund may be reclassified as an offset to capital on the accompanying Statement of Assets and Liabilities.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

As of December 31, 2022, on the Statement of Assets and Liabilities, as a result of permanent book-to-tax differences, reclassification adjustments were as follows:

---

| | |
|:---|:---|
| **Total <br>Accumulated <br>Earnings/(Loss)** | **Capital** |
| $2050 | $(2050) |

---

The tax character of distributions paid during the tax years ended, as noted below, were as follows (total distributions paid may differ from the Statements of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid).

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |
| **<br>Distributions Paid From:** | **<br>Distributions Paid From:** | | **Distributions<br>Paid From:** | |
| **<br>Ordinary<br>Income** | **Net<br>Long-Term<br>Capital Gains** | **** <br>**Total<br>Distributions<br>Paid** | **Ordinary<br>Income** | **** <br>**Total<br>Distributions<br>Paid** |
| $59479582 | $98543673 | $158023255 | $10232918 | $10232918 |

---

As of December 31, 2022, the components of accumulated earnings/(loss) on a tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gains** | **Accumulated<br>Earnings** | **Unrealized<br>Appreciation<br>(Depreciation)\*** | **Total<br>Accumulated<br>Earnings<br>(Loss)** |
| $10412934 | $56495000 | $66907934 | $101050561 | $167958495 |

---

\* The difference between the book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to tax deferral of losses on wash sales and partnership basis adjustments.

As of December 31, 2022, the Fund had no capital loss carryforward for federal income tax purposes.

As of December 31, 2022, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation (depreciation) for investments were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Cost of <br>Investments <br>for Federal <br>Tax Purposes** | **Net Gross <br>Unrealized <br>Appreciation** | **Gross <br>Unrealized <br>Depreciation** | **Net <br>Unrealized <br>Appreciation <br>(Depreciation)** |
| $652552053 | $137007276 | $(35956715) | $101050561 |

---

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Shareholders and Board of Trustees of Victory Variable Insurance Funds

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities, including the schedule of portfolio investments, of Victory RS Large Cap Alpha VIP Series (the "Fund"), a series of Victory Variable Insurance Funds, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the related notes, and the financial highlights for each of the four years in the period then ended (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, the results of its operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

The Fund's financial highlights for the year ended December 31, 2018, were audited by other auditors whose report dated February 15, 2019, expressed an unqualified opinion on those financial highlights.

**Basis for Opinion**

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the investment companies advised by Victory Capital Management, Inc. since 2015.

![](j2325455_ja006.jpg)

COHEN & COMPANY, LTD.<br>Cleveland, Ohio<br>February 16, 2023

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information**<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Trustee and Officer Information**

**Board of Trustees:**

Overall responsibility for management of the Trust rests with the Board. The Trust is managed by the Board in accordance with the laws of the State of Delaware. There are currently nine Trustees, eight of whom are not "interested persons" of the Trust within the meaning of that term under the 1940 Act ("Independent Trustees") and one of whom is an "interested person" of the Trust within the meaning of that term under the 1940 Act ("Interested Trustee"). The Trustees, in turn, elect the officers of the Trust to actively supervise its day-to-day operations.

The following tables list the Trustees, their date of birth, their position with the Trust, their commencement of service, their principal occupations during the past five years, and any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended, or who file reports under that Act. Each Trustee oversees 6 portfolios in the Trust, 37 portfolios in Victory Portfolios, and 25 portfolios in Victory Portfolios II, each a registered investment company that, together with the Trust, comprise the Victory Fund Complex. David C. Brown is a Trustee of USAA Mutual Funds and oversees 45 portfolios of the USAA Mutual Funds Trust. Each Trustee's address is c/o Victory Portfolios, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. Each Trustee has an indefinite term.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position<br>Held with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation<br>During Past 5 Years** | **Other<br>Directorships<br>Held During<br>Past 5 Years** |
| ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** |
| David Brooks Adcock, <br>October 1951 | Trustee | February 2005 | Consultant (since 2006). | Chairman, Board of Trustees, Turner Funds (December 2016-December 2017). |
| Nigel D. T. Andrews, <br>April 1947 | Trustee | August 2002 | Retired. | Director, Carlyle Secured Lending, Inc. (formerly TCG BDC I, Inc.) (since 2012); Director, Carlyle Credit Solutions, Inc. (formerly TCG BDC II, Inc.) (since 2017); Trustee, Carlyle Secured Lending III (since 2021). |
| E. Lee Beard,\* <br>August 1951 | Trustee | February 2005 | Retired. | None. |
| Dennis M. Bushe, <br>January 1944 | Trustee | July 2016 | Retired. | None. |

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position<br>Held with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation<br>During Past 5 Years** | **Other<br>Directorships<br>Held During<br>Past 5 Years** |
| John L. Kelly, <br>April 1953 | Chair and Trustee | February 2015 | Partner, McCarvill Capital Partners (September 2016- September 2017). | Director, Caledonia Mining Corporation (since May 2012). |
| David L. Meyer,<br>April 1957 | Trustee | December 2008 | Retired. | None. |
| Gloria S. Nelund, <br>May 1961 | Trustee | July 2016 | Chair, CEO and Co-Founder of TriLinc Global, LLC, an investment firm. | TriLinc Global Impact Fund, LLC (since 2012). |
| Timothy Pettee,<br>April 1958 | Advisory Trustee | January 2023 | Chief Investment Officer, Hoya Capital Real Estate LLC (since February 2022); Chief Investment Officer, Sun America Asset Management Corp. (January 2003-July 2021). | None. |
| Leigh A. Wilson, <br>December 1944 | Trustee | February 1998 | Private Investor. | Chair (since 2013), Caledonia Mining Corporation. |
| ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** |
| David C. Brown,\*\* <br>May 1972 | Trustee | May 2008 | Chief Executive Officer and Chairman (since 2013), the Adviser; Chief Executive Officer and Chairman (since 2013), Victory Capital Holdings, Inc.; Director (since 2013), Victory Capital Services, Inc.; Director (since 2019), Victory Capital Transfer Agency, Inc. | Trustee, USAA Mutual Funds Trust; Board Member, Victory Capital Services, Inc. |

---

\* The Board has designated Ms. Beard as its Audit Committee Financial Expert.

\*\* Mr. Brown is an "Interested Person" by reason of his relationship with the Adviser.

The Statement of Additional Information includes additional information about the Trustees of the Trust and is available, without charge, by calling 800-539-3863.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Officers:**

The officers of the Trust, their date of birth, their commencement of service, and their principal occupations during the past five years, are detailed in the following table. Each officer serves until the earlier of his or her resignation, removal, retirement, death, or the election of a successor. The mailing address of each officer of the Trust is 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. The officers of the Trust receive no compensation directly from the Trust for performing the duties of their offices.

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| | | | |
|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation During Past 5 Years** |
| Christopher K. Dyer, <br>February 1962 | President | February 2006 | Director of Mutual Fund Administration, the Adviser (since 2004); Chief Operating Officer, Victory Capital Services, Inc. (since 2020); Vice President, Victory Capital Transfer Agency, Inc. (since 2019). |
| Scott A. Stahorsky, <br>July 1969 | Vice President | December 2014 | Manager, Fund Administration, the Adviser. (since 2015) |
| Thomas Dusenberry,<br>July 1977 | Secretary | May 2022 | Manager, Fund Administration, the Adviser (since 2022); Treasurer and Principal Financial Officer (2020-2022), Assistant Treasurer (2019), Salient MF Trust, Salient Midstream, MLP Fund and Forward Funds; Principal Financial Officer (2018-2021) and Treasurer (2020-2021), Salient Private Access Funds and Endowment PMF Funds; Senior Vice President of Fund Accounting and Operations, Salient Partners (2020-2022); Director of Fund Operations, Salient Partners (2016-2019). |
| Allan Shaer, <br>March 1965 | Treasurer | May 2017 | Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc. (since 2016) |
| Christopher A. Ponte, <br>March 1984 | Assistant Treasurer | December 2017 | Manager, Fund Administration, the Adviser (since 2017); Chief Financial Officer, Victory Capital Services, Inc. (since 2018). |
| Sean Fox,<br>September 1976 | Chief Compliance<br>Officer | June 2022 | Sr. Compliance Officer, the Adviser (since 2019); Compliance Officer, the Adviser (2015-2019). |
| Charles Booth,<br>April 1960 | Anti-Money Laundering Compliance Officer and Identity Theft Officer | May 2015 | Director, Regulatory Administration and CCO Support Services, Citi Fund Services Ohio, Inc. (since 2007). |
| Jay G. Baris, <br>January 1954 | Assistant Secretary | February 1998 | Partner, Sidley Austin LLP (since 2020); Partner, Shearman & Sterling LLP (2018-2020). |

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Proxy Voting and Portfolio Holdings Information**

**Proxy Voting:**

Information regarding the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-539-3863. The information is also included in the Fund's Statement of Additional Information, which is available on the SEC's website at sec.gov.

Information relating to how the Fund voted proxies relating to portfolio securities held during the most recent 12 months ended June 30 is available on the SEC's website at sec.gov.

**Availability of Schedules of Portfolio Investments:**

The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarter of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's website at sec.gov.

**Expense Example**

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2022, through December 31, 2022.

The Actual Expense figures in the table below provide information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

The Hypothetical Expense figures in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

Please note the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical expenses in the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Beginning <br>Account Value<br>7/1/22** | **Actual <br>Ending <br>Account Value<br>12/31/22** | **Hypothetical <br>Ending<br>Account Value<br>12/31/22** | **Actual <br>Expenses Paid <br>During Period<br>7/1/22-12/31/22\*** | **Hypothetical <br>Expenses Paid <br>During Period <br>7/1/22-12/31/22\*** | **Annualized<br>Expense Ratio<br>During Period<br>7/1/22-12/31/22** |
| $1000.00 | $1028.00 | $1022.43 | $2.81 | $2.80 | 0.55% |

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\* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 184/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Additional Federal Income Tax Information**

For the year ended December 31, 2022, the Fund paid qualified dividend income for the purposes of reduced individual federal income tax rates of 29%.

Dividends qualified for corporate dividends received deductions of 24%.

For the year ended December 31, 2022, the Fund designated short-term capital gain distributions in the amount of $48,206,930.

For the year ended December 31, 2022, the Fund designated long-term capital gain distributions in the amount of $98,543,673.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Considerations of the Board in Continuing the Investment Advisory Agreement (the "Agreement")**

The Board approved the Agreement on behalf of the Fund at a meeting, which was called for that purpose, on December 6, 2022. The Board also considered information relating to the Fund and the Agreement provided throughout the year and, more specifically, at the meetings on October 18, 2022 and December 6, 2022. In considering whether to approve the Agreement, the Board requested, and the Adviser provided, information that the Board believed to be reasonably necessary to reach its conclusions.

The Board, including the Independent Trustees, evaluated this information along with other information obtained throughout the year and was advised by legal counsel to the Fund and independent legal counsel to the Independent Trustees. In addition, the Independent Trustees considered a past review of their overall process for conducting the annual review of the Fund's advisory arrangements by a consultant retained through their counsel.

The Board considered the Fund's advisory fee, expense ratio and investment performance as significant factors in determining whether the Agreement should be continued. In considering whether the compensation paid to the Adviser was fair and reasonable, the Board also evaluated, among other things, the following factors:

• The requirements of the Fund for the services provided by the Adviser;

• The nature, quality and extent of the services provided and expected to be provided;

• The performance of the Fund as compared to comparable funds;

• The fees payable for the services and whether the fee arrangements provided for economies of scale that would benefit Fund shareholders as the Fund grows (acknowledging that economies of scale can be complex to assess and typically are not directly measurable);

• Whether the fee would be sufficient to enable the Adviser to attract and retain experienced personnel and continue to provide quality services to the Fund;

• The fees paid by other clients of the Adviser whose accounts are managed in a similar investment style and any differences in the services provided to the other clients compared to those provided to the Fund;

• The total expenses of the Fund;

• Management's commitment to operating the Fund at competitive expense levels;

• The profitability of the Adviser (as reflected by comparing fees earned against an estimate of the Adviser's costs) with respect to the Adviser's relationship with the Fund;

• Research and other service benefits received by the Adviser obtained through payment of client commissions for securities transactions;

• Other benefits received by the Adviser, and its affiliates, including revenues paid to the Adviser, or its affiliates, by the Fund for administration and fund accounting services, and distribution;

• The capabilities and financial condition of the Adviser;

• Current economic and industry trends; and

• The historical relationship between the Fund and the Adviser.

The Board reviewed the Fund's current management fee, comprised of the advisory fee plus the administrative services fee paid to the Adviser, in the context of the Adviser's profitability with respect to the Fund. The Board retained an independent, third-party consultant to provide comparative information about fees, expenses and performance, and to design and maintain a database of relevant information designed to assist the Board in retrieving and analyzing comparative information. The Board met with the consultant to review its inputs and methodologies, among other things. The Board compared the Fund's total operating expense ratio on a net and gross basis with a universe of comparable mutual funds compiled by the consultant and a peer group of funds with similar investment strategies selected by that consultant from the universe. The Board reviewed the factors and methodology used by the consultant in the selection of the Fund's peer group, including the consultant's selection of a broad universe of funds, the more specific universe of comparable funds, and peer groups of funds with comparable investment strategies and asset levels, among other factors. The Board also reviewed any changes to the consultant's methodology as compared to the prior year, including those resulting from the

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

Adviser's input, if any. The Board also reviewed fees and other information related to the Adviser's management of similarly managed institutional or private accounts, and the differences in the services provided to the other accounts, to the extent applicable. The Board noted that the advisory fee arrangements for the Fund do not include breakpoints, which would be a structure that results in reduced fees as a fund grows. The Board also considered the Adviser's commitment to limit expenses as discussed in more detail below.

The Board also reviewed the compliance and administrative services provided to the Fund by the Adviser and its affiliates, including the Adviser's oversight of the Fund's day-to-day operations and oversight of Fund accounting, assistance in meeting legal and regulatory requirements, and other services necessary for the operation of the Fund and the Trust.

The Board reviewed the Fund's performance over one-, three-, five- and ten-year periods against the performance of the Fund's selected peer group and benchmark index. The Board recognized that the performance of the Fund and the peer group funds are net of expenses, while the performance of the benchmark index reflects gross returns.

The Board reviewed various other specific factors with respect to the Fund, as described below. In their deliberations, the Trustees did not rank the importance of any particular information or factor considered and each Trustee may have attributed different weights to various factors.

The Board concluded that the Fund's gross annual management fee was reasonable as compared to the median gross management fee charged to the funds in the Fund's peer group. The Board noted that the Fund's net annual expense ratio, taking into account any shareholder servicing or distribution fees, was reasonable as compared to the median expense ratio for the peer group. The Board considered the Adviser's contractual agreement to waive its fees and reimburse expenses for a specified period of time, as described in the Fund's prospectus. The Board then compared the Fund's performance for the one-, three-, five- and ten-year periods ended June 30, 2022, to that of the median performance of the Fund's peer group and benchmark index for the same periods and considered the fact that the Fund outperformed both the benchmark index and the peer group median for all of the periods reviewed.

Having considered, among other things: (1) that the Fund's management fee was within the ranges of advisory fees charged to comparable mutual funds; (2) that the Fund's total expense ratio was reasonable; (3) the Adviser's willingness to limit the expenses for a period of time would provide stability to the Fund's expenses during that period; and (4) the performance of the Fund, the Board concluded that the Agreement continued to be in the best interests of the Fund's shareholders.

**Conclusion**

Based on its review of the information requested and provided, and following extended discussions, the Board determined that the Agreement, on behalf of the Fund, was consistent with the best interests of the Fund and its shareholders, and the Board unanimously approved the Agreement, on behalf of the Fund, for an additional annual period on the basis of the foregoing review and discussions and the following considerations, among others:

• The fairness and reasonableness of the investment advisory fee payable to the Adviser under the Agreement in light of the investment advisory services provided, the costs of these services, the profitability of the Adviser's relationship with the Fund and the comparability of the fee paid to the fees paid by other investment companies;

• The nature, quality and extent of the investment advisory services provided by the Adviser;

• The Adviser's entrepreneurial commitment to the management of the Fund and the creation of a broad-based family of funds, which entails a substantial commitment of the Adviser's resources to the successful operation of the Fund;

• The Adviser's representations regarding its staffing and capabilities to manage the Fund, including the retention of personnel with relevant portfolio management experience;

• The Adviser's efforts to enhance investment results by, among other things, developing and supporting quality portfolio management teams; and

• The overall high quality of the personnel, operations, financial condition, investment management capabilities, methodologies and performance of the Adviser.

------

**Privacy Policy**

**Protecting the Privacy of Information**

The Trust respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain personal information about you. This is the information we collect from you on applications or other forms, and from the transactions you make with us or third parties. It may include your name, address, social security number, account transactions and balances, and information about investment goals and risk tolerance.

We do not disclose any information about you or about former customers to anyone except as permitted or required by law. Specifically, we may disclose the information we collect to companies that perform services on our behalf, such as the transfer agent that processes shareholder accounts and printers and mailers that assist us in the distribution of investor materials. We may also disclose this information to companies that perform marketing services on our behalf. This allows us to continue to offer you Victory investment products and services that meet your investing needs, and to effect transactions that you request or authorize. These companies will use this information only in connection with the services for which we hired them. They are not permitted to use or share this information for any other purpose.

To protect your personal information internally, we permit access only by authorized employees and maintain physical, electronic, and procedural safeguards to guard your personal information.\*

\* You may have received communications regarding information about privacy policies from other financial institutions which gave you the opportunity to "opt-out" of certain information sharing with companies which are not affiliated with that financial institution. The Trust does not share information with other companies for purposes of marketing solicitations for products other than the Trust. Therefore, the Trust does not provide opt-out options to their shareholders.

------

Victory Funds<br>P.O. Box 182593<br>Columbus, Ohio 43218-2593

![](j2325455_za007.jpg)

Visit our website at: Call Victory at: <br> vcm.com 800-539-FUND (800-539-3863)

VVIF-RS-LCAVIP-AR (12/22)

------

![](j2325456_aa001.jpg)

December 31, 2022

Annual Report

Victory Variable Insurance Funds

Victory 500 Index VIP Series

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vcm.com

News, Information And Education 24 Hours A Day, 7 Days A Week

The Victory Capital website gives fund shareholders, prospective shareholders, and investment professionals a convenient way to access fund information, get guidance, and track fund performance anywhere they can access the Internet. The site includes:

• Detailed performance records

• Daily share prices

• The latest fund news

• Investment resources to help you become a better investor

• A section dedicated to investment professionals

Whether you're a potential investor searching for the fund that matches your investment philosophy, a seasoned investor interested in planning tools, or an investment professional, vcm.com has what you seek. Visit us anytime. We're always open.

------

*Victory Variable Insurance Funds*

*Table of Contents*

---

| | |
|:---|:---|
| **Shareholder Letter (Unaudited)** | **3** |
| **Manager's Commentary (Unaudited)** | **5** |
| **Investment Overview (Unaudited)** | **7** |
| **Investment Objective & Portfolio Holdings <br>(Unaudited)** | **8** |
| **Schedule of Portfolio Investments** | **9** |
| **Financial Statements** | **Financial Statements** |
| *Statement of Assets and Liabilities* | **21** |
| *Statement of Operations* | **22** |
| *Statements of Changes in Net Assets* | **23** |
| *Financial Highlights* | **24** |
| **Notes to Financial Statements** | **25** |
| **Report of Independent <br>Registered Public Accounting Firm** | **34** |
| **Supplemental Information (Unaudited)** | **Supplemental Information (Unaudited)** |
| *Trustee and Officer Information* | **35** |
| *Proxy Voting and Portfolio Holdings Information* | **38** |
| *Expense Example* | **38** |
| *Additional Federal Income Tax Information* | **39** |
| *Advisory Contract Renewal* | **40** |
| *Privacy Policy (inside back cover)* |  |

---

------

*The Fund is distributed by Victory Capital Services, Inc. Victory Capital Management Inc. is the investment adviser to the Fund and receives fees from the Fund for performing services for the Fund.*

*This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus of the Fund.*

*For additional information about any Victory Fund, including fees, expenses, and risks, view our prospectus online at vcm.com or call 800-539-3863. Read it carefully before you invest or send money.*

*The information in this report is based on data obtained from recognized services and sources and is believed to be reliable. Any opinions, projections, or recommendations in this report are subject to change without notice and are not intended as individual investment advice. Past investment performance of the Fund markets or securities mentioned herein should not be considered to be indicative of future results.*

***• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE***

![](j2325456_ba002.jpg)

*Call Victory at:*

*800-539-FUND* (800-539-3863)

*Visit our website at:*

*vcm.com*

------

*Victory Funds Letter to Shareholders<br> (Unaudited)*

Dear Shareholder,

Our most recent annual reporting period ending December 31, 2022, was filled with epic challenges. Even the most seasoned investors who have been through more than one economic cycle have not witnessed financial markets like this in a long time, if ever.

Consider what transpired and how the investing backdrop changed so abruptly. The year began well enough with ample liquidity and an encouraging outlook for corporate profits. But that optimism faded early and was punctuated by the start of a terrible war in Eastern Europe. This fueled rising energy prices and intensified an inflation problem that was proving to be more than "transitory."

The inflation data was particularly troublesome and surprised many with some of the highest readings since the 1970s. In response, the U.S. Federal Reserve (the "Fed") pivoted to a far more restrictive monetary policy than anyone anticipated. Over the course of 2022, the Fed boosted the Fed funds interest rate on seven different occasions by a total of 4.5 percentage points. And if that wasn't enough, zero-Covid policies in China further exacerbated supply chain issues and dampened the outlook for global growth.

As one might expect, all of these obstacles ratcheted up volatility across financial markets. Broad market stock indices pulled back substantially around the world. The S&P 500<sup>®</sup> Index, the bell-weather proxy for our domestic stock market, delivered a negative total return of more than 18% for our annual reporting period.

Perhaps what made 2022 even more difficult was the performance of fixed income markets, which normally are considered a safe haven in times of equity turmoil. But not this past year. In fact, the Bloomberg US Aggregate Bond Index — a proxy for a diversified fixed income portfolio and one that many investors and institutions follow closely — delivered a negative total return of approximately 13%, its worst annual performance since the 1970s. That's not exactly the offset to equity performance that many investors were expecting from bonds.

It was a tough year, and we fully acknowledge that the steady drumbeat of bad news and bouts of stomach-churning volatility can take a toll on investors' psyche. Nobody likes opening their account statements during declining markets; and even when markets snap back sharply (as happened this past July and October), investors often wonder if they have missed an opportunity.

Through all of the challenges in our most recent annual reporting period, we are reminded of two enduring realities: 1) financial markets are dynamic and apt to change abruptly; 2) it's vital that we remain calm and rational whenever faced with those inevitable bouts of turmoil.

Fortunately, we think that investors can take comfort knowing that all of our independent investment franchises have experience managing portfolios through a wide variety of market environments. Our investment professionals remain calm during turbulent financial markets, and we think it's imperative that investors do the same.

------

We still believe that a long-term plan, a well-diversified portfolio across asset classes and investment types, and a clear understanding of individual risk tolerances are the key ingredients for staying the course and progressing on investment goals. Moreover, all our investment professionals continually monitor the environment and work hard to position portfolios opportunistically no matter what the markets bring. Remember, turmoil can also create opportunity.

On the following pages you will find information relating to your Victory Funds investment. If you have any questions, we encourage you to contact your financial advisor. If you invest with us directly, you may call 800-539-3863 or visit our website at vcm.com.

From all of us here at Victory Capital, thank you for your ongoing confidence and for letting us help you work toward your investment goals.

![](j2325456_ba003.jpg)

**Christopher K. Dyer, CFA**

*President,*

*Victory Funds*

------

Victory 500 Index VIP Series

**Manager's Commentary**<br> (Unaudited)

**What were the market conditions during the reporting period?**

At the beginning of the reporting period, the Russian invasion of Ukraine in February of 2022 added significant volatility to both equity and bond markets that were already concerned with elevated levels of inflation, a hawkish U.S. Federal Reserve (the "Fed") and rising interest rates. In the first quarter of 2022, the combination of widening credit spreads and rising interest rates led to the worst quarter for the Bloomberg US Aggregate Bond Index in 40 years. Equity markets did not fare any better as the bellwether S&P 500<sup>®</sup> Index also posted a negative return during the quarter. With the Fed now embarking on a tightening cycle, the markets remained focused on the Fed and whether it can engineer a soft landing amidst the highest inflation readings in 40 years.

The second quarter of 2022 saw continued pressure on stocks and bonds. The Fed's hawkish pivot which started in the fourth quarter of 2021 continued to put pressure on equity multiples, especially for long-duration growth stocks. With inflation readings hitting four-decade highs, the Fed now faced an increasingly difficult task of implementing policy strong enough to tame inflation and provide a "soft landing" for the economy, while not being too aggressive and tilting the economy into recession. This risk contributed to the heightened stock market volatility, in addition to mounting COVID-19-related lockdowns in China, rising oil prices, and the ongoing conflict between Russia and Ukraine.

In the third quarter, global equities declined, continuing the downward trend from the first half of 2022. The quarter began with a rally that continued into mid-August, on hopes that the Fed would pivot toward a more accommodative policy. However, messaging from Fed Chairman Powell and a stronger-than-expected inflation report in early September dampened investor optimism over the U.S. central bank's trajectory and the odds of avoiding recession. The Fed went on to hike rates aggressively by three-quarters of a point twice during the quarter, bringing the benchmark Fed funds interest rate target to a range of 3.0% to 3.25%, as compared to 0% to 0.25% at the beginning of the year. For its part, the European central bank raised its reference rate by 50 basis points (a basis point is 1/100th of a percentage point) in July, followed by another 75 basis points in September. Other factors that weighed on sentiment during the quarter included the ongoing War in Ukraine, an energy crisis in Europe, and the resumption of COVID-19 lockdowns in China.

Global equities rebounded in the fourth quarter, trimming full year losses. Gains in October and November were sparked by signs of peaking inflation alongside less hawkish commentary from Fed Chairman Jerome Powell raising hope that the central bank would end its interest rate hiking cycle sometime in early 2023. Indeed, both the Fed and the European central bank raised their benchmark overnight lending rates by a more modest 50 basis points in mid-December. Also supporting sentiment, the Chinese government began to ease their zero-COVID-19 policy that had weighed on global economic growth for much of 2022. However, stocks retreated into year-end as investors shifted their focus to the potential impact higher rates might have on economic growth and corporate earnings in the coming year.

------

Victory 500 Index VIP Series

**Manager's Commentary** (continued)

**How did Victory 500 Index VIP Series (the "Fund") perform during the reporting period?**

The Fund seeks to match, before fees and expenses, the performance of the stocks composing the Victory US Large Cap 500 Index (the "Index"). The Fund returned –19.36% for the fiscal year ended December 31, 2022, closely tracking the Index, which returned –19.15% for the reporting period.

**What strategies did you employ during the reporting period?**

During the year, the Fund's positive absolute returns in the Energy and Utilities sectors was not enough to offset the negative performance in the other 10 sectors. The Fund's small allocation to derivatives during the year did not have a material impact on performance.

------

Victory 500 Index VIP Series

**Investment Overview**<br>(Unaudited)

**Average Annual Total Return**

*Year Ended December 31, 2022*

---

| | | | |
|:---|:---|:---|:---|
| | **Class I** | | |
| **INCEPTION DATE** | *8/25/99* |  |  |
|  | **Net Asset Value** | **Victory US <br>Large Cap 500 <br>Index<sup>1</sup>** | **S&P 500<sup>®</sup> Index<sup>2</sup>** |
| *One Year* | *–19.36%* | *–19.15%* | *–18.11%* |
| *Five Year* | *9.06%* | *9.63%* | *9.42%* |
| *Ten Year* | *12.23%* | *12.69%* | *12.56%* |

---

***The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit vcm.com.***

*Total return measures the price change in a share assuming the reinvestment of all net investment income and realized capital gain distributions, if any. The total returns quoted do not reflect adjustments made to the enclosed financial statements in accordance with U.S. Generally Accepted Accounting Principles or the deduction of taxes that a shareholder would pay on net investment income and realized capital gain distributions, including reinvested distributions, or redemptions of shares. The total return figures set forth above include all waivers of fees. Without such fee waivers, the total returns would have been lower. Total returns do not reflect the effects of charges deducted pursuant to the terms of The Guardian Insurance & Annuity Company, Inc.'s variable contracts. Inclusion of such charges would reduce the total returns for all periods shown.*

**Victory 500 Index VIP Series — Growth of $10,000**

![](j2325456_bc004.jpg)

*<sup>1</sup>The Victory US Large Cap 500 Index emphasizes stocks of large U.S. companies. This index does not include the effect of sales charges, commissions, expenses, or taxes, is not representative of the Fund, and it is not possible to invest directly in an index.*

*<sup>2</sup>The S&P 500<sup>®</sup> Index is an unmanaged index comprised of 500 domestically traded common stocks, is weighted according to the market value of each common stock in the index, and includes reinvestment of dividends. This index does not include the effect of sales charges, commissions, expenses, or taxes, is not representative of the Fund, and it is not possible to invest directly in an index.*

*The graph reflects investment of growth of a hypothetical $10,000 investment in the Fund.*

*The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares.*

**Past performance is not indicative of future results.**

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory 500 Index VIP Series** | December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Investment Objective and Portfolio Holdings:**

The Fund seeks to match, before fees and expenses, the performance of the stocks composing the Victory US Large Cap 500 Index.

**Top 10 Holdings\*:**

*December 31, 2022*

*(% of Net Assets)*

---

| | |
|:---|:---|
| *Apple, Inc.* | *6.4%* |
| *Microsoft Corp.* | *5.4%* |
| *Amazon.com, Inc.* | *2.3%* |
| *Alphabet, Inc., Class A* | *1.6%* |
| *UnitedHealth Group, Inc.* | *1.5%* |
| *Alphabet, Inc., Class C* | *1.5%* |
| *Johnson & Johnson* | *1.4%* |
| *Exxon Mobil Corp.* | *1.4%* |
| *Berkshire Hathaway, Inc., Class B* | *1.2%* |
| *JPMorgan Chase & Co.* | *1.2%* |

---

**Sector Allocation\*:**

*December 31, 2022*

*(% of Net Assets)*

![](j2325456_bc005.jpg)

\* Does not include futures contracts, money market instruments, and short-term investments purchased with cash collateral from securities loaned.

Percentages are of the net assets of the Fund and may not equal 100%.

Refer to the Schedule of Portfolio Investments for a complete list of securities.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory 500 Index VIP Series** | **Schedule of Portfolio Investments**<br> December 31, 2022 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Common Stocks (99.2%)** | **Common Stocks (99.2%)** | **Common Stocks (99.2%)** |
| **Communication Services (7.4%):** | **Communication Services (7.4%):** | **Communication Services (7.4%):** |
| Activision Blizzard, Inc. | 1891 | $144756 |
| Alphabet, Inc., Class C (a) | 13785 | 1223143 |
| Alphabet, Inc., Class A (a) | 15415 | 1360065 |
| AT&T, Inc. | 18320 | 337271 |
| Charter Communications, Inc., Class A (a) | 285 | 96643 |
| Comcast Corp., Class A | 11209 | 391979 |
| Electronic Arts, Inc. | 672 | 82105 |
| Endeavor Group Holdings, Inc., Class A (a) | 463 | 10436 |
| Fox Corp., Class A | 772 | 23446 |
| Fox Corp., Class B | 356 | 10128 |
| Liberty Media Corp.-Liberty SiriusXM, Class A (a) | 242 | 9513 |
| Liberty Media Corp.-Liberty SiriusXM, Class C (a) | 506 | 19800 |
| Live Nation Entertainment, Inc. (a) | 367 | 25595 |
| Match Group, Inc. (a) | 728 | 30205 |
| Meta Platforms, Inc., Class A (a) | 5805 | 698574 |
| Netflix, Inc. (a) | 1120 | 330266 |
| Omnicom Group, Inc. | 521 | 42498 |
| Paramount Global, Class B | 1486 | 25084 |
| Paramount Global, Class A | 24 | 471 |
| Pinterest, Inc., Class A (a) | 1484 | 36031 |
| ROBLOX Corp., Class A (a) | 1035 | 29456 |
| Sirius XM Holdings, Inc. (b) | 1702 | 9940 |
| Snap, Inc., Class A (a) | 2653 | 23744 |
| Take-Two Interactive Software, Inc. (a) | 394 | 41027 |
| The Trade Desk, Inc., Class A (a) | 1130 | 50658 |
| The Walt Disney Co. (a) | 4687 | 407206 |
| T-Mobile U.S., Inc. (a) | 1419 | 198660 |
| Verizon Communications, Inc. | 10797 | 425402 |
| Warner Bros Discovery, Inc. (a) | 5679 | 53837 |
| Warner Music Group Corp., Class A | 296 | 10366 |
| ZoomInfo Technologies, Inc. (a) | 757 | 22793 |
|  |  | 6171098 |
| **Communications Equipment (0.8%):** | **Communications Equipment (0.8%):** | **Communications Equipment (0.8%):** |
| Arista Networks, Inc. (a) | 602 | 73053 |
| Cisco Systems, Inc. | 10646 | 507175 |
| Motorola Solutions, Inc. | 429 | 110558 |
| Ubiquiti, Inc. | 11 | 3009 |
|  |  | 693795 |
| **Consumer Discretionary (9.4%):** | **Consumer Discretionary (9.4%):** | **Consumer Discretionary (9.4%):** |
| Airbnb, Inc., Class A (a) | 975 | 83362 |
| Amazon.com, Inc. (a) | 22787 | 1914108 |
| AutoZone, Inc. (a) | 50 | 123309 |
| Best Buy Co., Inc. | 515 | 41308 |
| Booking Holdings, Inc. (a) | 103 | 207574 |
| CarMax, Inc. (a) | 409 | 24904 |
| Chewy, Inc., Class A (a) | 238 | 8825 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory 500 Index VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| Chipotle Mexican Grill, Inc. (a) | 71 | $| 98512 |
| D.R. Horton, Inc. | 795 |  | 70866 |
| Darden Restaurants, Inc. | 321 |  | 44404 |
| Dollar General Corp. | 580 |  | 142825 |
| Dollar Tree, Inc. (a) | 570 |  | 80621 |
| Domino's Pizza, Inc. | 91 |  | 31522 |
| DoorDash, Inc., Class A (a) | 653 |  | 31879 |
| DraftKings, Inc. (a) (b) | 980 |  | 11162 |
| eBay, Inc. | 1412 |  | 58556 |
| Etsy, Inc. (a) | 322 |  | 38569 |
| Expedia Group, Inc. (a) | 387 |  | 33901 |
| Ford Motor Co. | 10154 |  | 118091 |
| General Motors Co. | 3749 |  | 126116 |
| Genuine Parts Co. | 356 |  | 61770 |
| Hilton Worldwide Holdings, Inc. | 691 |  | 87315 |
| Las Vegas Sands Corp. (a) | 845 |  | 40619 |
| Lennar Corp., Class A | 642 |  | 58101 |
| Lennar Corp., Class B | 37 |  | 2767 |
| LKQ Corp. | 698 |  | 37280 |
| Lowe's Cos., Inc. | 1596 |  | 317987 |
| Lucid Group, Inc. (a) (b) | 1376 |  | 9398 |
| Marriott International, Inc., Class A | 718 |  | 106903 |
| McDonald's Corp. | 1891 |  | 498335 |
| MGM Resorts International | 839 |  | 28132 |
| NIKE, Inc., Class B | 3216 |  | 376304 |
| NVR, Inc. (a) | 8 |  | 36901 |
| O'Reilly Automotive, Inc. (a) | 161 |  | 135889 |
| Pool Corp. | 99 |  | 29931 |
| Rivian Automotive, Inc., Class A (a) | 1308 |  | 24106 |
| Ross Stores, Inc. | 866 |  | 100517 |
| Starbucks Corp. | 2861 |  | 283811 |
| Target Corp. | 1183 |  | 176314 |
| Tesla, Inc. (a) | 6686 |  | 823581 |
| The Home Depot, Inc. | 2632 |  | 831344 |
| The TJX Cos., Inc. | 2985 |  | 237606 |
| Tractor Supply Co. | 283 |  | 63667 |
| Ulta Beauty, Inc. (a) | 130 |  | 60979 |
| VF Corp. | 949 |  | 26202 |
| Yum! Brands, Inc. | 732 |  | 93755 |
|  |  |  | 7839928 |
| **Consumer Staples (7.3%):** | **Consumer Staples (7.3%):** | **Consumer Staples (7.3%):** | **Consumer Staples (7.3%):** |
| Albertsons Cos., Inc., Class A | 424 |  | 8794 |
| Altria Group, Inc. | 4630 |  | 211637 |
| Archer-Daniels-Midland Co. | 1427 |  | 132497 |
| Brown-Forman Corp., Class B | 781 |  | 51296 |
| Bunge Ltd. | 387 |  | 38611 |
| Campbell Soup Co. | 510 |  | 28943 |
| Church & Dwight Co., Inc. | 625 |  | 50381 |
| Colgate-Palmolive Co. | 2154 |  | 169714 |
| Conagra Brands, Inc. | 1223 |  | 47330 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory 500 Index VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| Constellation Brands, Inc., Class A | 421 | $| 97567 |
| Costco Wholesale Corp. | 1139 |  | 519954 |
| General Mills, Inc. | 1535 |  | 128710 |
| Hormel Foods Corp. | 744 |  | 33889 |
| Kellogg Co. | 866 |  | 61694 |
| Keurig Dr Pepper, Inc. | 2184 |  | 77881 |
| Kimberly-Clark Corp. | 868 |  | 117831 |
| McCormick & Co., Inc. | 644 |  | 53381 |
| Mondelez International, Inc., Class A | 3524 |  | 234875 |
| Monster Beverage Corp. (a) | 948 |  | 96250 |
| PepsiCo, Inc. | 3548 |  | 640982 |
| Philip Morris International, Inc. | 3985 |  | 403322 |
| Sysco Corp. | 1301 |  | 99461 |
| The Clorox Co. | 317 |  | 44485 |
| The Coca-Cola Co. | 11007 |  | 700155 |
| The Estee Lauder Cos., Inc. | 595 |  | 147625 |
| The Hershey Co. | 378 |  | 87533 |
| The J.M. Smucker Co. | 266 |  | 42150 |
| The Kraft Heinz Co. | 2835 |  | 115413 |
| The Kroger Co. | 1821 |  | 81180 |
| The Procter & Gamble Co. | 6143 |  | 931033 |
| Tyson Foods, Inc., Class A | 722 |  | 44945 |
| Walgreens Boots Alliance, Inc. | 1844 |  | 68892 |
| Walmart, Inc. | 3629 |  | 514556 |
|  |  |  | 6082967 |
| **Electronic Equipment, Instruments & Components (0.5%):** | **Electronic Equipment, Instruments & Components (0.5%):** | **Electronic Equipment, Instruments & Components (0.5%):** | **Electronic Equipment, Instruments & Components (0.5%):** |
| Amphenol Corp., Class A | 1514 |  | 115276 |
| CDW Corp. | 348 |  | 62146 |
| Corning, Inc. | 1956 |  | 62474 |
| Keysight Technologies, Inc. (a) | 455 |  | 77837 |
| Teledyne Technologies, Inc. (a) | 119 |  | 47589 |
| Trimble, Inc. (a) | 637 |  | 32207 |
| Zebra Technologies Corp. (a) | 132 |  | 33846 |
|  |  |  | 431375 |
| **Energy (5.6%):** | **Energy (5.6%):** | **Energy (5.6%):** | **Energy (5.6%):** |
| APA Corp. | 839 |  | 39165 |
| Baker Hughes Co. | 2575 |  | 76040 |
| Cheniere Energy, Inc. | 636 |  | 95375 |
| Chesapeake Energy Corp. | 292 |  | 27556 |
| Chevron Corp. | 5032 |  | 903194 |
| ConocoPhillips | 3273 |  | 386214 |
| Coterra Energy, Inc. | 2005 |  | 49263 |
| Devon Energy Corp. | 1667 |  | 102537 |
| Diamondback Energy, Inc. | 434 |  | 59362 |
| EOG Resources, Inc. | 1507 |  | 195187 |
| EQT Corp. | 904 |  | 30582 |
| Exxon Mobil Corp. | 10715 |  | 1181864 |
| Halliburton Co. | 2332 |  | 91764 |
| Hess Corp. | 716 |  | 101543 |

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*See notes to financial statements.*

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| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory 500 Index VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| Kinder Morgan, Inc. | 5039 | $| 91105 |
| Marathon Oil Corp. | 1742 |  | 47156 |
| Marathon Petroleum Corp. | 1282 |  | 149212 |
| Occidental Petroleum Corp. | 2395 |  | 150861 |
| ONEOK, Inc. | 1137 |  | 74701 |
| Ovintiv, Inc. | 647 |  | 32809 |
| Phillips 66 | 1237 |  | 128747 |
| Pioneer Natural Resources Co. | 595 |  | 135892 |
| Schlumberger Ltd. | 3636 |  | 194381 |
| Targa Resources Corp. | 571 |  | 41968 |
| Texas Pacific Land Corp. | 20 |  | 46885 |
| The Williams Cos., Inc. | 3133 |  | 103076 |
| Valero Energy Corp. | 1013 |  | 128509 |
|  |  |  | 4664948 |
| **Financials (11.5%):** | **Financials (11.5%):** | **Financials (11.5%):** | **Financials (11.5%):** |
| Aflac, Inc. | 1478 |  | 106327 |
| American Express Co. | 1928 |  | 284862 |
| American International Group, Inc. | 1955 |  | 123634 |
| Ameriprise Financial, Inc. | 278 |  | 86561 |
| Apollo Global Management, Inc. | 1101 |  | 70233 |
| Arch Capital Group Ltd. (a) | 921 |  | 57820 |
| Ares Management Corp., Class A | 349 |  | 23886 |
| Arthur J. Gallagher & Co. | 535 |  | 100869 |
| Bank of America Corp. | 20658 |  | 684193 |
| Berkshire Hathaway, Inc., Class B (a) | 3345 |  | 1033270 |
| Berkshire Hathaway, Inc., Class A (a) | 1 |  | 468711 |
| BlackRock, Inc. | 382 |  | 270697 |
| Blackstone, Inc. | 1786 |  | 132503 |
| Brown & Brown, Inc. | 603 |  | 34353 |
| Capital One Financial Corp. | 977 |  | 90822 |
| Cincinnati Financial Corp. | 401 |  | 41058 |
| Citigroup, Inc. | 4993 |  | 225833 |
| Citizens Financial Group, Inc. | 1262 |  | 49685 |
| CME Group, Inc. | 924 |  | 155380 |
| Coinbase Global, Inc., Class A (a) (b) | 391 |  | 13837 |
| Discover Financial Services | 702 |  | 68677 |
| FactSet Research Systems, Inc. | 98 |  | 39319 |
| Fifth Third Bancorp | 1746 |  | 57286 |
| First Citizens BancShares, Inc., Class A | 26 |  | 19717 |
| First Republic Bank | 462 |  | 56313 |
| Franklin Resources, Inc. | 730 |  | 19257 |
| Huntington Bancshares, Inc. | 3671 |  | 51761 |
| Intercontinental Exchange, Inc. | 1421 |  | 145780 |
| JPMorgan Chase & Co. | 7464 |  | 1000922 |
| KeyCorp | 2398 |  | 41773 |
| Loews Corp. | 514 |  | 29982 |
| LPL Financial Holdings, Inc. | 203 |  | 43883 |
| M&T Bank Corp. | 447 |  | 64842 |
| Markel Corp. (a) | 34 |  | 44795 |
| Marsh & McLennan Cos., Inc. | 1283 |  | 212311 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory 500 Index VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| MetLife, Inc. | 1723 | $| 124694 |
| Moody's Corp. | 472 |  | 131509 |
| Morgan Stanley | 3443 |  | 292724 |
| MSCI, Inc. | 201 |  | 93499 |
| Nasdaq, Inc. | 871 |  | 53436 |
| Northern Trust Corp. | 525 |  | 46457 |
| Principal Financial Group, Inc. | 634 |  | 53205 |
| Prudential Financial, Inc. | 956 |  | 95084 |
| Raymond James Financial, Inc. | 499 |  | 53318 |
| Regions Financial Corp. | 2402 |  | 51787 |
| Rocket Cos., Inc., Class A (b) | 264 |  | 1848 |
| S&P Global, Inc. | 857 |  | 287044 |
| State Street Corp. | 945 |  | 73304 |
| SVB Financial Group (a) | 150 |  | 34521 |
| Synchrony Financial | 1226 |  | 40286 |
| T. Rowe Price Group, Inc. | 573 |  | 62491 |
| The Allstate Corp. | 688 |  | 93293 |
| The Bank of New York Mellon Corp. | 2078 |  | 94591 |
| The Charles Schwab Corp. | 4346 |  | 361848 |
| The Goldman Sachs Group, Inc. | 874 |  | 300114 |
| The Hartford Financial Services Group, Inc. | 831 |  | 63015 |
| The PNC Financial Services Group, Inc. | 1054 |  | 166469 |
| The Progressive Corp. | 1504 |  | 195084 |
| The Travelers Cos., Inc. | 610 |  | 114369 |
| Tradeweb Markets, Inc., Class A | 274 |  | 17791 |
| Truist Financial Corp. | 3410 |  | 146732 |
| U.S. Bancorp | 3820 |  | 166590 |
| W.R. Berkley Corp. | 539 |  | 39115 |
| Wells Fargo & Co. | 9752 |  | 402660 |
|  |  |  | 9608030 |
| **Health Care (15.6%):** | **Health Care (15.6%):** | **Health Care (15.6%):** | **Health Care (15.6%):** |
| Abbott Laboratories | 4457 |  | 489334 |
| AbbVie, Inc. | 4546 |  | 734679 |
| Agilent Technologies, Inc. | 761 |  | 113884 |
| Align Technology, Inc. (a) | 189 |  | 39860 |
| Alnylam Pharmaceuticals, Inc. (a) | 305 |  | 72483 |
| AmerisourceBergen Corp. | 394 |  | 65290 |
| Amgen, Inc. | 1375 |  | 361130 |
| Avantor, Inc. (a) | 1681 |  | 35452 |
| Baxter International, Inc. | 1295 |  | 66006 |
| Becton Dickinson & Co. | 733 |  | 186402 |
| Biogen, Inc. (a) | 373 |  | 103291 |
| BioMarin Pharmaceutical, Inc. (a) | 467 |  | 48330 |
| Bio-Rad Laboratories, Inc., Class A (a) | 55 |  | 23127 |
| Bio-Techne Corp. | 399 |  | 33069 |
| Boston Scientific Corp. (a) | 3644 |  | 168608 |
| Bristol-Myers Squibb Co. | 5490 |  | 395006 |
| Cardinal Health, Inc. | 694 |  | 53348 |
| Catalent, Inc. (a) | 435 |  | 19579 |
| Centene Corp. (a) | 1440 |  | 118094 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory 500 Index VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| Cigna Corp. | 769 | $| 254800 |
| CVS Health Corp. | 3375 |  | 314516 |
| Danaher Corp. | 1683 |  | 446702 |
| Dexcom, Inc. (a) | 999 |  | 113127 |
| Edwards Lifesciences Corp. (a) | 1578 |  | 117735 |
| Elevance Health, Inc. | 617 |  | 316503 |
| Eli Lilly & Co. | 2174 |  | 795336 |
| Gilead Sciences, Inc. | 3222 |  | 276609 |
| HCA Healthcare, Inc. | 553 |  | 132698 |
| Hologic, Inc. (a) | 635 |  | 47504 |
| Horizon Therapeutics PLC (a) | 580 |  | 66004 |
| Humana, Inc. | 322 |  | 164925 |
| IDEXX Laboratories, Inc. (a) | 212 |  | 86488 |
| Illumina, Inc. (a) | 404 |  | 81689 |
| Incyte Corp. (a) | 566 |  | 45461 |
| Insulet Corp. (a) | 177 |  | 52107 |
| Intuitive Surgical, Inc. (a) | 909 |  | 241203 |
| IQVIA Holdings, Inc. (a) | 475 |  | 97323 |
| Johnson & Johnson | 6759 |  | 1193977 |
| Laboratory Corp. of America Holdings | 232 |  | 54631 |
| McKesson Corp. | 370 |  | 138794 |
| Merck & Co., Inc. | 6513 |  | 722617 |
| Mettler-Toledo International, Inc. (a) | 57 |  | 82391 |
| Moderna, Inc. (a) | 865 |  | 155371 |
| Molina Healthcare, Inc. (a) | 148 |  | 48873 |
| PerkinElmer, Inc. | 325 |  | 45572 |
| Pfizer, Inc. | 14429 |  | 739342 |
| Quest Diagnostics, Inc. | 297 |  | 46463 |
| Regeneron Pharmaceuticals, Inc. (a) | 265 |  | 191195 |
| ResMed, Inc. | 373 |  | 77633 |
| Royalty Pharma PLC, Class A | 918 |  | 36279 |
| Seagen, Inc. (a) | 469 |  | 60271 |
| Stryker Corp. | 905 |  | 221263 |
| The Cooper Cos., Inc. | 126 |  | 41664 |
| Thermo Fisher Scientific, Inc. | 1007 |  | 554545 |
| UnitedHealth Group, Inc. | 2405 |  | 1275083 |
| Veeva Systems, Inc., Class A (a) | 358 |  | 57774 |
| Vertex Pharmaceuticals, Inc. (a) | 659 |  | 190306 |
| Waters Corp. (a) | 154 |  | 52757 |
| West Pharmaceutical Services, Inc. | 188 |  | 44246 |
| Zimmer Biomet Holdings, Inc. | 539 |  | 68723 |
| Zoetis, Inc. | 1204 |  | 176446 |
|  |  |  | 13053918 |
| **Industrials (8.7%):** | **Industrials (8.7%):** | **Industrials (8.7%):** | **Industrials (8.7%):** |
| 3M Co. | 1464 |  | 175563 |
| AMETEK, Inc. | 584 |  | 81596 |
| Booz Allen Hamilton Holding Corp. | 333 |  | 34805 |
| C.H. Robinson Worldwide, Inc. | 315 |  | 28841 |
| Carlisle Cos., Inc. | 132 |  | 31106 |
| Carrier Global Corp. | 2164 |  | 89265 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory 500 Index VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| Caterpillar, Inc. | 1357 | $325083 |
| Cintas Corp. | 221 | 99808 |
| Copart, Inc. (a) | 1100 | 66979 |
| CoStar Group, Inc. (a) | 1008 | 77898 |
| CSX Corp. | 5505 | 170545 |
| Cummins, Inc. | 355 | 86013 |
| Deere & Co. | 722 | 309565 |
| Delta Air Lines, Inc. (a) | 1648 | 54153 |
| Dover Corp. | 365 | 49425 |
| Eaton Corp. PLC | 1024 | 160717 |
| Emerson Electric Co. | 1505 | 144570 |
| Equifax, Inc. | 315 | 61223 |
| Expeditors International of Washington, Inc. | 416 | 43231 |
| Fastenal Co. | 1477 | 69892 |
| FedEx Corp. | 615 | 106518 |
| Fortive Corp. | 905 | 58146 |
| Generac Holdings, Inc. (a) | 161 | 16206 |
| General Dynamics Corp. | 698 | 173181 |
| General Electric Co. | 2791 | 233858 |
| HEICO Corp. | 109 | 16747 |
| HEICO Corp., Class A | 190 | 22771 |
| Honeywell International, Inc. | 1732 | 371168 |
| Howmet Aerospace, Inc. | 1057 | 41656 |
| IDEX Corp. | 194 | 44296 |
| Illinois Tool Works, Inc. | 796 | 175359 |
| Ingersoll Rand, Inc. | 1037 | 54183 |
| J.B. Hunt Transport Services, Inc. | 211 | 36790 |
| Jacobs Solutions, Inc. | 325 | 39023 |
| Johnson Controls International PLC | 1753 | 112192 |
| L3Harris Technologies, Inc. | 492 | 102439 |
| Leidos Holdings, Inc. | 330 | 34713 |
| Lockheed Martin Corp. | 682 | 331786 |
| Nordson Corp. | 135 | 32092 |
| Norfolk Southern Corp. | 604 | 148838 |
| Northrop Grumman Corp. | 398 | 217153 |
| Old Dominion Freight Line, Inc. | 247 | 70094 |
| Otis Worldwide Corp. | 1087 | 85123 |
| PACCAR, Inc. | 876 | 86698 |
| Parker-Hannifin Corp. | 327 | 95157 |
| Plug Power, Inc. (a) | 1324 | 16378 |
| Quanta Services, Inc. | 364 | 51870 |
| Raytheon Technologies Corp. | 3796 | 383092 |
| Republic Services, Inc. | 528 | 68107 |
| Rockwell Automation, Inc. | 297 | 76498 |
| Rollins, Inc. | 608 | 22216 |
| Southwest Airlines Co. (a) | 1525 | 51347 |
| Stanley Black & Decker, Inc. | 376 | 28245 |
| Textron, Inc. | 538 | 38090 |
| The Boeing Co. (a) | 1527 | 290878 |
| TransDigm Group, Inc. | 135 | 85003 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory 500 Index VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| TransUnion | 495 | $| 28091 |
| Uber Technologies, Inc. (a) | 4836 |  | 119594 |
| Union Pacific Corp. | 1605 |  | 332347 |
| United Parcel Service, Inc., Class B | 1882 |  | 327167 |
| United Rentals, Inc. (a) | 178 |  | 63265 |
| Verisk Analytics, Inc. | 399 |  | 70392 |
| W.W. Grainger, Inc. | 116 |  | 64525 |
| Waste Management, Inc. | 1020 |  | 160018 |
| Westinghouse Air Brake Technologies Corp. | 451 |  | 45014 |
| Xylem, Inc. | 463 |  | 51194 |
|  |  |  | 7239796 |
| **IT Services (4.2%):** | **IT Services (4.2%):** | **IT Services (4.2%):** | **IT Services (4.2%):** |
| Akamai Technologies, Inc. (a) | 400 |  | 33720 |
| Automatic Data Processing, Inc. | 1058 |  | 252714 |
| Block, Inc. (a) | 1348 |  | 84708 |
| Broadridge Financial Solutions, Inc. | 299 |  | 40105 |
| Cloudflare, Inc., Class A (a) | 713 |  | 32235 |
| Cognizant Technology Solutions Corp., Class A | 1331 |  | 76120 |
| EPAM Systems, Inc. (a) | 143 |  | 46867 |
| Fidelity National Information Services, Inc. | 1547 |  | 104964 |
| Fiserv, Inc. (a) | 1546 |  | 156254 |
| FleetCor Technologies, Inc. (a) | 187 |  | 34348 |
| Gartner, Inc. (a) | 183 |  | 61514 |
| Global Payments, Inc. | 717 |  | 71212 |
| International Business Machines Corp. | 2322 |  | 327147 |
| Jack Henry & Associates, Inc. | 186 |  | 32654 |
| Mastercard, Inc., Class A | 2194 |  | 762920 |
| MongoDB, Inc. (a) | 170 |  | 33463 |
| Okta, Inc. (a) | 379 |  | 25897 |
| Paychex, Inc. | 824 |  | 95221 |
| PayPal Holdings, Inc. (a) | 2943 |  | 209601 |
| Snowflake, Inc., Class A (a) | 708 |  | 101626 |
| SS&C Technologies Holdings, Inc. | 570 |  | 29674 |
| VeriSign, Inc. (a) | 273 |  | 56085 |
| Visa, Inc., Class A | 4203 |  | 873215 |
|  |  |  | 3542264 |
| **Materials (2.0%):** | **Materials (2.0%):** | **Materials (2.0%):** | **Materials (2.0%):** |
| Air Products and Chemicals, Inc. | 559 |  | 172317 |
| Albemarle Corp. | 301 |  | 65275 |
| Avery Dennison Corp. | 205 |  | 37105 |
| Ball Corp. | 800 |  | 40912 |
| CF Industries Holdings, Inc. | 507 |  | 43196 |
| Corteva, Inc. | 1847 |  | 108567 |
| Dow, Inc. | 1846 |  | 93020 |
| DuPont de Nemours, Inc. | 1288 |  | 88395 |
| Ecolab, Inc. | 652 |  | 94905 |
| FMC Corp. | 321 |  | 40061 |
| Freeport-McMoRan, Inc. | 3638 |  | 138244 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory 500 Index VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| International Flavors & Fragrances, Inc. | 655 | $| 68670 |
| International Paper Co. | 921 |  | 31894 |
| Martin Marietta Materials, Inc. | 159 |  | 53737 |
| Newmont Corp. | 2040 |  | 96288 |
| Nucor Corp. | 666 |  | 87786 |
| Packaging Corp. of America | 236 |  | 30187 |
| PPG Industries, Inc. | 604 |  | 75947 |
| Southern Copper Corp. | 219 |  | 13225 |
| Steel Dynamics, Inc. | 441 |  | 43086 |
| The Mosaic Co. | 888 |  | 38957 |
| The Sherwin-Williams Co. | 613 |  | 145483 |
| Vulcan Materials Co. | 342 |  | 59888 |
| Westlake Corp. | 86 |  | 8818 |
|  |  |  | 1675963 |
| **Real Estate (2.7%):** | **Real Estate (2.7%):** | **Real Estate (2.7%):** | **Real Estate (2.7%):** |
| Alexandria Real Estate Equities, Inc. | 415 |  | 60453 |
| American Tower Corp. | 1185 |  | 251054 |
| AvalonBay Communities, Inc. | 359 |  | 57986 |
| Camden Property Trust | 268 |  | 29984 |
| CBRE Group, Inc., Class A (a) | 817 |  | 62876 |
| Crown Castle, Inc. | 1102 |  | 149475 |
| Digital Realty Trust, Inc. | 739 |  | 74100 |
| Equinix, Inc. | 234 |  | 153277 |
| Equity LifeStyle Properties, Inc. | 454 |  | 29328 |
| Equity Residential | 948 |  | 55932 |
| Essex Property Trust, Inc. | 166 |  | 35179 |
| Extra Space Storage, Inc. | 337 |  | 49600 |
| Healthpeak Properties, Inc. | 1387 |  | 34772 |
| Host Hotels & Resorts, Inc. | 1820 |  | 29211 |
| Invitation Homes, Inc. | 1569 |  | 46505 |
| Iron Mountain, Inc. | 740 |  | 36889 |
| Kimco Realty Corp. | 1558 |  | 32998 |
| Mid-America Apartment Communities, Inc. | 294 |  | 46155 |
| Prologis, Inc. | 2350 |  | 264916 |
| Public Storage | 397 |  | 111235 |
| Realty Income Corp. | 1588 |  | 100727 |
| SBA Communications Corp. | 275 |  | 77085 |
| Simon Property Group, Inc. | 833 |  | 97861 |
| Sun Communities, Inc. | 311 |  | 44473 |
| UDR, Inc. | 827 |  | 32030 |
| Ventas, Inc. | 1017 |  | 45816 |
| VICI Properties, Inc. | 2476 |  | 80222 |
| Welltower, Inc. | 1191 |  | 78070 |
| Weyerhaeuser Co. | 1903 |  | 58993 |
| WP Carey, Inc. | 491 |  | 38372 |
|  |  |  | 2265574 |
| **Semiconductors & Semiconductor Equipment (4.9%):** | **Semiconductors & Semiconductor Equipment (4.9%):** | **Semiconductors & Semiconductor Equipment (4.9%):** | **Semiconductors & Semiconductor Equipment (4.9%):** |
| Advanced Micro Devices, Inc. (a) | 4109 |  | 266140 |
| Analog Devices, Inc. | 1322 |  | 216848 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory 500 Index VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| Applied Materials, Inc. | 2212 | $| 215404 |
| Broadcom, Inc. | 1020 |  | 570313 |
| Enphase Energy, Inc. (a) | 338 |  | 89556 |
| Entegris, Inc. | 379 |  | 24859 |
| First Solar, Inc. (a) | 258 |  | 38646 |
| GLOBALFOUNDRIES, Inc. (a) (b) | 180 |  | 9700 |
| Intel Corp. | 10556 |  | 278995 |
| KLA Corp. | 365 |  | 137616 |
| Lam Research Corp. | 349 |  | 146685 |
| Marvell Technology, Inc. | 2170 |  | 80377 |
| Microchip Technology, Inc. | 1392 |  | 97788 |
| Micron Technology, Inc. | 2836 |  | 141743 |
| Monolithic Power Systems, Inc. | 113 |  | 39958 |
| NVIDIA Corp. | 6146 |  | 898176 |
| ON Semiconductor Corp. (a) | 1103 |  | 68794 |
| QUALCOMM, Inc. | 2887 |  | 317397 |
| Skyworks Solutions, Inc. | 412 |  | 37545 |
| Teradyne, Inc. | 403 |  | 35202 |
| Texas Instruments, Inc. | 2349 |  | 388102 |
| Wolfspeed, Inc. (a) | 316 |  | 21817 |
|  |  |  | 4121661 |
| **Software (8.8%):** | **Software (8.8%):** | **Software (8.8%):** | **Software (8.8%):** |
| Adobe, Inc. (a) | 1191 |  | 400807 |
| ANSYS, Inc. (a) | 224 |  | 54116 |
| Aspen Technology, Inc. (a) | 71 |  | 14583 |
| Autodesk, Inc. (a) | 555 |  | 103713 |
| Bill.com Holdings, Inc. (a) | 253 |  | 27567 |
| Cadence Design Systems, Inc. (a) | 697 |  | 111966 |
| Crowdstrike Holdings, Inc., Class A (a) | 541 |  | 56962 |
| Datadog, Inc., Class A (a) | 658 |  | 48363 |
| Fortinet, Inc. (a) | 1683 |  | 82282 |
| Gen Digital, Inc. | 1524 |  | 32659 |
| HubSpot, Inc. (a) | 117 |  | 33828 |
| Intuit, Inc. | 703 |  | 273622 |
| Microsoft Corp. | 18790 |  | 4506218 |
| Oracle Corp. | 3950 |  | 322873 |
| Palantir Technologies, Inc., Class A (a) | 4392 |  | 28197 |
| Palo Alto Networks, Inc. (a) | 754 |  | 105213 |
| Paycom Software, Inc. (a) | 131 |  | 40651 |
| Paylocity Holding Corp. (a) | 104 |  | 20203 |
| PTC, Inc. (a) | 275 |  | 33011 |
| Roper Technologies, Inc. | 273 |  | 117961 |
| Salesforce, Inc. (a) | 2494 |  | 330679 |
| ServiceNow, Inc. (a) | 514 |  | 199571 |
| Splunk, Inc. (a) | 381 |  | 32800 |
| Synopsys, Inc. (a) | 389 |  | 124204 |
| Tyler Technologies, Inc. (a) | 106 |  | 34175 |
| Unity Software, Inc. (a) (b) | 676 |  | 19327 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory 500 Index VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| VMware, Inc., Class A (a) | 576 | $| 70710 |
| Workday, Inc., Class A (a) | 512 |  | 85673 |
| Zoom Video Communications, Inc., Class A (a) | 536 |  | 36309 |
| Zscaler, Inc. (a) | 215 |  | 24058 |
|  |  |  | 7372301 |
| **Technology Hardware, Storage & Peripherals (6.7%):** | **Technology Hardware, Storage & Peripherals (6.7%):** | **Technology Hardware, Storage & Peripherals (6.7%):** | **Technology Hardware, Storage & Peripherals (6.7%):** |
| Apple, Inc. | 41317 |  | 5368318 |
| Dell Technologies, Inc., Class C | 646 |  | 25982 |
| Hewlett Packard Enterprise Co. | 3308 |  | 52796 |
| HP, Inc. | 2586 |  | 69486 |
| NetApp, Inc. | 559 |  | 33573 |
| Western Digital Corp. (a) | 792 |  | 24988 |
|  |  |  | 5575143 |
| **Utilities (3.1%):** | **Utilities (3.1%):** | **Utilities (3.1%):** | **Utilities (3.1%):** |
| Alliant Energy Corp. | 645 |  | 35611 |
| Ameren Corp. | 658 |  | 58509 |
| American Electric Power Co., Inc. | 1321 |  | 125429 |
| American Water Works Co., Inc. | 467 |  | 71180 |
| Atmos Energy Corp. | 356 |  | 39897 |
| Avangrid, Inc. | 179 |  | 7693 |
| CenterPoint Energy, Inc. | 1618 |  | 48524 |
| CMS Energy Corp. | 746 |  | 47244 |
| Consolidated Edison, Inc. | 912 |  | 86923 |
| Constellation Energy Corp. | 832 |  | 71727 |
| Dominion Energy, Inc. | 2136 |  | 130980 |
| DTE Energy Co. | 493 |  | 57942 |
| Duke Energy Corp. | 1979 |  | 203817 |
| Edison International | 981 |  | 62411 |
| Entergy Corp. | 523 |  | 58838 |
| Essential Utilities, Inc. | 674 |  | 32170 |
| Evergy, Inc. | 584 |  | 36751 |
| Eversource Energy | 891 |  | 74701 |
| Exelon Corp. | 2550 |  | 110237 |
| FirstEnergy Corp. | 1469 |  | 61610 |
| NextEra Energy, Inc. | 5107 |  | 426945 |
| PG&E Corp. (a) | 3986 |  | 64812 |
| PPL Corp. | 1893 |  | 55314 |
| Public Service Enterprise Group, Inc. | 1283 |  | 78609 |
| Sempra Energy | 808 |  | 124868 |
| The AES Corp. | 1717 |  | 49381 |
| The Southern Co. | 2798 |  | 199805 |
| WEC Energy Group, Inc. | 811 |  | 76039 |
| Xcel Energy, Inc. | 1406 |  | 98575 |
|  |  |  | 2596542 |
| **Total Common Stocks (Cost $26,617,337)** | **Total Common Stocks (Cost $26,617,337)** |  | 82935303 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory 500 Index VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Collateral for Securities Loaned (0.1%)^** | **Collateral for Securities Loaned (0.1%)^** | **Collateral for Securities Loaned (0.1%)^** |
| Goldman Sachs Financial Square Government Fund, Institutional Shares, <br>4.14% (c) | 15472 | $15472 |
| HSBC U.S. Government Money Market Fund, Institutional Shares, 4.13% (c) | 15472 | 15472 |
| Invesco Government & Agency Portfolio, Institutional Shares, 4.22% (c) | 15472 | 15472 |
| Morgan Stanley Institutional Liquidity Government Portfolio, Institutional Shares, <br>4.08% (c) | 15472 | 15472 |
| **Total Collateral for Securities Loaned (Cost $61,888)** | **Total Collateral for Securities Loaned (Cost $61,888)** | 61888 |
| **Total Investments (Cost $26,679,225) — 99.3%** | **Total Investments (Cost $26,679,225) — 99.3%** | 82997191 |
| **Other assets in excess of liabilities — 0.7%** | **Other assets in excess of liabilities — 0.7%** | 619805 |
| **NET ASSETS — 100.00%** | **NET ASSETS — 100.00%** | $83616996 |

---

^ Purchased with cash collateral from securities on loan.

(a) Non-income producing security.

(b) All or a portion of this security is on loan.

(c) Rate disclosed is the daily yield on December 31, 2022.

PLC — Public Limited Company

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Futures Contracts Purchased** | **Futures Contracts Purchased** | **Futures Contracts Purchased** | **Futures Contracts Purchased** | **Futures Contracts Purchased** | **Futures Contracts Purchased** |
| | **Number of<br>Contracts** | **Expiration<br>Date** | **Notional<br>Amount** | **Value** | **Unrealized <br>Appreciation <br>(Depreciation)** |
| E-Mini S&P 500 Futures | 4 | 3/17/23 | $781051 | $772200 | $(8851) |
| Total unrealized appreciation | Total unrealized appreciation | Total unrealized appreciation | Total unrealized appreciation | Total unrealized appreciation | $— |
| Total unrealized depreciation | Total unrealized depreciation | Total unrealized depreciation | Total unrealized depreciation | Total unrealized depreciation | (8851) |
| Total net unrealized appreciation (depreciation) | Total net unrealized appreciation (depreciation) | Total net unrealized appreciation (depreciation) | Total net unrealized appreciation (depreciation) | Total net unrealized appreciation (depreciation) | $(8851) |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statement of Assets and Liabilities**<br> December 31, 2022 |

---

---

| | |
|:---|:---|
| | **Victory <br>500 Index <br>VIP Series** |
| **Assets:** | **Assets:** |
| Investments, at value (Cost $26,679,225) | $82997191<br> (a) |
| Cash | 569233 |
| Deposit with broker for futures contracts | 112916 |
| Receivables: | Receivables: |
| Interest and dividends | 70647 |
| Capital shares issued | 302 |
| From Adviser | 19832 |
| Prepaid expenses | 152 |
| Total Assets | 83770273 |
| **Liabilities:** | **Liabilities:** |
| Payables: | Payables: |
| Collateral received on loaned securities | 61888 |
| Capital shares redeemed | 43672 |
| Variation margin on open futures contracts | 429 |
| Accrued expenses and other payables: | Accrued expenses and other payables: |
| Investment advisory fees | 18178 |
| Administration fees | 4580 |
| Custodian fees | 1271 |
| Transfer agent fees | 1159 |
| Compliance fees | 65 |
| Trustees' fees | 109 |
| Other accrued expenses | 21926 |
| Total Liabilities | 153277 |
| **Net Assets:** | **Net Assets:** |
| Capital | 21169309 |
| Total accumulated earnings/(loss) | 62447687 |
| Net Assets | $83616996 |
| Shares (unlimited shares authorized with a par value of $0.001 per share): | 6141178 |
| Net asset value: | $13.62 |

---

(a) Includes $61,007 of securities on loan.

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statement of Operations**<br> For the Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| | **Victory <br>500 Index <br>VIP Series** |
| **Investment Income:** | **Investment Income:** |
| Dividends | $1430211 |
| Interest | 4255 |
| Securities lending (net of fees) | 4317 |
| Total Income | 1438783 |
| **Expenses:** | **Expenses:** |
| Investment advisory fees | 234048 |
| Administration fees | 50959 |
| Sub-Administration fees | 18516 |
| Custodian fees | 5400 |
| Transfer agent fees | 5550 |
| Trustees' fees | 7216 |
| Compliance fees | 759 |
| Legal and audit fees | 15629 |
| Licensing fees | 30938 |
| Other expenses | 17072 |
| Total Expenses | 386087 |
| Expenses waived/reimbursed by Adviser | (124202) |
| Net Expenses | 261885 |
| Net Investment Income (Loss) | 1176898 |
| **Realized/Unrealized Gains (Losses) from Investments:** | **Realized/Unrealized Gains (Losses) from Investments:** |
| Net realized gains (losses) from investment securities | 7431510 |
| Net realized gains (losses) from futures contracts | (169580) |
| Net change in unrealized appreciation/depreciation on investment securities | (30045895) |
| Net change in unrealized appreciation/depreciation on futures contracts | (25751) |
| Net realized/unrealized gains (losses) on investments | (22809716) |
| Change in net assets resulting from operations | $(21632818) |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statements of Changes in Net Assets** |

---

---

| | | |
|:---|:---|:---|
| | **Victory 500 Index VIP Series** | **Victory 500 Index VIP Series** |
| | **Year<br>Ended<br>December 31, <br>2022** | **Year<br>Ended<br>December 31, <br>2021** |
| **From Investment Activities:** | **From Investment Activities:** | **From Investment Activities:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income (Loss) | $1176898 | $1151816 |
| Net realized gains (losses) | 7261930 | 12072376 |
| Net change in unrealized appreciation/depreciation | (30071646) | 13641209 |
| Change in net assets resulting from operations | (21632818) | 26865401 |
| Change in net assets resulting from distributions to shareholders | (12957882) | (14222411) |
| Change in net assets resulting from capital transactions | 2163457 | (170219) |
| Change in net assets | (32427243) | 12472771 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of period | 116044239 | 103571468 |
| End of period | $83616996 | $116044239 |
| **Capital Transactions:** | **Capital Transactions:** | **Capital Transactions:** |
| Proceeds from shares issued | $4620680 | $7352188 |
| Distributions reinvested | 12957882 | 14222411 |
| Cost of shares redeemed | (15415105) | (21744818) |
| Change in net assets resulting from capital transactions | $2163457 | $(170219) |
| **Share Transactions:** | **Share Transactions:** | **Share Transactions:** |
| Issued | 272884 | 358747 |
| Reinvested | 905256 | 725547 |
| Redeemed | (899695) | (1070115) |
| Change in Shares | 278445 | 14179 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Financial Highlights** |

---

*For a Share Outstanding Throughout Each Period*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Victory 500 Index VIP Series** | **Victory 500 Index VIP Series** | **Victory 500 Index VIP Series** | **Victory 500 Index VIP Series** | **Victory 500 Index VIP Series** |
| | **Year<br>Ended<br>December 31, <br>2022** | **Year<br>Ended<br>December 31, <br>2021** | **Year<br>Ended<br>December 31, <br>2020** | **Year<br>Ended<br>December 31, <br>2019** | **Year<br>Ended<br>December 31, <br>2018** |
| **Net Asset Value, Beginning of Period** | $19.79 | $17.71 | $19.35 | $16.92 | $19.06 |
| Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: |
| Net investment income (loss) (a) | 0.21 | 0.21 | 0.28 | 0.34 | 0.32 |
| Net realized and unrealized gains <br>(losses) on investments | (3.95) | 4.59 | 3.53 | 4.88 | (1.21) |
| Total from Investment Activities | (3.74) | 4.80 | 3.81 | 5.22 | (0.89) |
| Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: |
| Net investment income | (0.19) | (0.23) | (0.32) | (0.37) | (0.02) |
| Net realized gains from investments | (2.24) | (2.49) | (5.13) | (2.42) | (1.23) |
| Total Distributions to <br>Shareholders | (2.43) | (2.72) | (5.45) | (2.79) | (1.25) |
| **Net Asset Value, End of Period** | $13.62 | $19.79 | $17.71 | $19.35 | $16.92 |
| Total Return (b) (c) | (19.36)% | 27.43% | 20.13% | 31.04% | (4.65)% |
| **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** |
| Net Expenses (d) | 0.28% | 0.28% | 0.28% | 0.28% | 0.28% |
| Net Investment Income (Loss) | 1.26% | 1.04% | 1.46% | 1.71% | 1.65% |
| Gross Expenses (d) | 0.41% | 0.48% | 0.58% | 0.52% | 0.38% |
| **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** |
| Net Assets at end of period (000's) | $83617 | $116044 | $103571 | $100139 | $106432 |
| Portfolio Turnover | 7% | 9% | 13% | 3% | 3% |

---

(a) Per share net investment income (loss) has been calculated using the average daily shares method.

(b) Total returns do not reflect the effects of charges deducted pursuant to the terms of The Guardian insurance & Annuity Company, Inc.'s variable contracts. Inclusion of such charges would reduce the total returns for all periods shown.

(c) Assumes reinvestment of all net investment income and realized capital gain distributions, if any, during the period. Includes adjustments in accordance with U.S. Generally Accepted Accounting Principles and could differ from the reported total return.

(d) Does not include acquired fund fees and expenses, if any.

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements**<br> December 31, 2022 |

---

**1. Organization:**

Victory Variable Insurance Funds (the "Trust") is organized as a Delaware statutory trust and the Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. The Trust is comprised of six funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with a par value of $0.001 per share.

The accompanying financial statements are those of Victory 500 Index VIP Series (the "Fund"), a series of the Trust. The Fund offers a single class of shares: Class I. The Fund's shares are only available for purchase by certain separate accounts of insurance companies as investments for certain variable annuity plans and variable life insurance contracts issued by those insurance companies. The Fund is classified as diversified under the 1940 Act.

Victory Capital Management Inc. ("VCM" or the "Adviser") is an indirect wholly owned subsidiary of Victory Capital Holdings, Inc., a publicly traded Delaware corporation, and a wholly owned direct subsidiary of Victory Capital Operating, LLC.

Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund. However, based on experience, the Fund expects that risk of loss to be remote.

**2. Significant Accounting Policies:**

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with U.S. Generally Accepted Accounting Principles ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies under Accounting Standards Codification Topic 946.

**Investment Valuation:**

The Fund records investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The valuation techniques described below maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Fund's investments are summarized in the three broad levels listed below:

• Level 1 — quoted prices (unadjusted) in active markets for identical securities

• Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, or credit spreads, applicable to those securities, etc.)

• Level 3 — significant unobservable inputs (including the Adviser's assumptions in determining the fair value of investments)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.

The Adviser, appointed as the valuation designee by the Trust's Board of Trustees' (the "Board"), has established the Pricing and Liquidity Committee (the "Committee"), and subject to Board oversight, the Committee administers and oversees the Fund's valuation policies and procedures, which are approved by the Board.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

Portfolio securities listed or traded on securities exchanges, including Exchange-Traded Funds ("ETFs"), are valued at the closing price on the exchange or system where the security is principally traded, if available, or at the Nasdaq Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.

Investments in open-end investment companies, other than ETFs, are valued at their net asset value ("NAV"). These valuations are typically categorized as Level 1 in the fair value hierarchy.

Futures contracts are valued at the settlement price established each day by the board of trade or an exchange on which they are traded. These valuations are typically categorized as Level 1 in the fair value hierarchy.

In the event that price quotations or valuations are not readily available, investments are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded and the actual price realized from the sale of a security may differ materially from the fair value price. Valuing these securities at fair value is intended to cause the Fund's NAV to be more reliable than it otherwise would be.

A summary of the valuations as of December 31, 2022, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed on the Schedule of Portfolio Investments:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks | $82935303 | $— | $— | $82935303 |
| Collateral for Securities Loaned | 61888 |  |  | 61888 |
| Total | $82997191 | $— | $— | $82997191 |
| **Other Financial Investments\*:** | **Other Financial Investments\*:** | **Other Financial Investments\*:** | **Other Financial Investments\*:** | **Other Financial Investments\*:** |
| Liabilities: | Liabilities: | Liabilities: | Liabilities: | Liabilities: |
| Futures Contracts | $(8851) | $— | $— | $(8851) |
| Total | $(8851) | $— | $— | $(8851) |

---

\* Futures Contracts are valued at the unrealized appreciation (depreciation) on the investment.

As of December 31, 2022, there were no transfers into/out of Level 3.

**Investment Companies:**

Open-End Funds:

The Fund may invest in portfolios of open-end investment companies. These investment companies value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value by the methods established by the board of directors of the underlying funds.

**Derivative Instruments:**

Futures Contracts:

The Fund may enter into contracts for the future delivery of securities or foreign currencies and futures contracts based on a specific security, class of securities, foreign currency or an index, and purchase or sell options on any such futures contracts. A futures contract on a securities index is an agreement obligating either party to pay, and entitling the other party to receive, while the contract is outstanding, cash payments based on the level of a specified securities index. No physical delivery of the underlying

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

asset is made. The Fund may enter into futures contracts in an effort to hedge against market risks. The acquisition of put and call options on futures contracts will give the Fund the right (but not the obligation), for a specified price, to sell or to purchase the underlying futures contract, upon exercise of the option, at any time during the option period. Futures transactions involve brokerage costs and require the Fund to segregate assets to cover contracts that would require it to purchase securities or currencies. A good faith margin deposit, known as initial margin, of cash or government securities with a broker or custodian is required to initiate and maintain open positions in futures contracts. Subsequent payments, known as variation margin, are made or received by the Fund based on the change in the market value of the position and are recorded as unrealized appreciation or depreciation until the contract is closed out, at which time the gain or loss is realized. The Fund may lose the expected benefit of futures transactions if interest rates, exchange rates or securities prices change in an unanticipated manner. Such unanticipated changes may also result in lower overall performance than if the Fund had not entered into any futures transactions. In addition, the value of the Fund's futures positions may not prove to be perfectly or even highly correlated with the value of its portfolio securities or foreign currencies, limiting the Fund's ability to hedge effectively against interest rate, exchange rate and/or market risk and giving rise to additional risks. There is no assurance of liquidity in the secondary market for purposes of closing out futures positions. The collateral held by the Fund is reflected on the Statement of Assets and Liabilities under Deposit with broker for futures contracts.

Management has determined that no offsetting requirements exist as a result of their conclusion that the Fund is not subject to master netting agreements for futures contracts. During the year ended December 31, 2022, the Fund entered into futures contracts primarily for the strategy of hedging or other purposes, including but not limited to, providing liquidity and equitizing cash.

**Summary of Derivative Instruments:**

The following table summarizes the fair values of derivative instruments on the Statement of Assets and Liabilities, categorized by risk exposure, as of December 31, 2022:

---

| | |
|:---|:---|
| | **Liabilities** |
| | **Variation Margin<br>Payable on <br>Open Futures <br>Contracts\*** |
| Equity Risk Exposure | $8851 |

---

\* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Portfolio Investments. Only current day's variation margin for futures contracts is reported within the Statement of Assets and Liabilities.

The following table presents the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the year ended December 31, 2022:

---

| | | |
|:---|:---|:---|
| | **Net Realized Gains (Losses) <br>on Derivatives <br>Recognized as a <br>Result of Operations** | **Net Change in Unrealized<br>Appreciation/Depreciation<br>on Derivatives Recognized<br>as a Result of Operations** |
| | **Net Realized <br>Gains (Losses)<br>from Futures Contracts** | **Net Change in Unrealized<br>Appreciation/Depreciation<br>on Futures Contracts** |
| Equity Risk Exposure | $(169580) | $(25751) |

---

All open derivative positions at period end are reflected on the Fund's Schedule of Portfolio Investments. The underlying face value of open derivative positions relative to the Fund's net assets at period end is generally representative of the notional amount of open positions to net assets throughout the period.

**Investment Transactions and Related Income:**

Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

trade date or the last business day of the reporting period. Interest income is determined on the basis of coupon interest accrued using the effective interest method which adjusts, where applicable, the amortization of premiums or accretion of discounts. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are recorded on the identified cost basis.

**Securities Lending:**

The Fund, through a Securities Lending Agreement with Citibank, N.A. ("Citibank"), may lend its securities to qualified financial institutions, such as certain broker-dealers and banks, to earn additional income, net of income retained by Citibank. Borrowers are required to initially secure their loans for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are generally cured the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities and other securities as permitted by Securities and Exchange Commission ("SEC") guidelines. The cash collateral is invested in short-term instruments or cash equivalents, primarily open-end investment companies, as noted on the Fund's Schedule of Portfolio Investments. The Fund effectively does not have control of the non-cash collateral and therefore it is not disclosed on the Fund's Schedule of Portfolio Investments. Collateral requirements are determined daily based on the value of the Fund's securities on loan as of the end of the prior business day. During the time portfolio securities are on loan, the borrower will pay the Fund any dividends or interest paid on such securities plus any fee negotiated between the parties to the lending agreement. The Fund also earns a return from the collateral. The Fund pays Citibank various fees in connection with the investment of cash collateral and fees based on the investment income received from securities lending activities. Securities lending income (net of these fees) is disclosed on the Statement of Operations. Loans are terminable upon demand and the borrower must return the loaned securities within the lesser of one standard settlement period or five business days. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. In addition, there is a risk that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower.

The Fund's agreement with Citibank does not include master netting provisions. Non-cash collateral received by the Fund may not be sold or repledged, except to satisfy borrower default.

The following table is a summary of the Fund's securities lending transactions as of December 31, 2022.

---

| | | |
|:---|:---|:---|
| **Value of<br>Securities on Loan** | **Non-Cash <br>Collateral** | **Cash <br>Collateral** |
| $61007 | $— | $61888 |

---

**Federal Income Taxes:**

The Fund intends to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes is required in the financial statements. The Fund has a tax year end of December 31.

For the year ended December 31, 2022, the Fund did not incur any income tax, interest, or penalties, and has recorded no liability for net unrecognized tax benefits relating to uncertain tax positions.

Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax years, which includes the current fiscal tax year end). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

**Allocations:**

Expenses directly attributable to the Fund are charged to the Fund, while expenses that are attributable to more than one fund in the Trust, or jointly with an affiliated trust, are allocated among the respective funds in the Trust and/or an affiliated trust based upon net assets or another appropriate basis.

**3. Purchases and Sales:**

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the year ended December 31, 2022, were as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Excluding <br>U.S. Government Securities** | &nbsp;&nbsp;&nbsp;&nbsp;**Excluding <br>U.S. Government Securities** |
| **Purchases** | **Sales** |
| $6334697 | $16111639 |

---

**4. Fees and Transactions with Affiliates and Related Parties:**

**Investment Advisory Fees:**

Investment advisory services are provided to the Fund by the Adviser, which is a New York corporation registered as an investment adviser with the SEC.

Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive fees accrued daily and paid monthly at an annualized rate of 0.25% of the Fund's average daily net assets. Amounts incurred and paid to VCM for the year ended December 31, 2022, are reflected on the Statement of Operations as Investment advisory fees.

**Administration and Servicing Fees:**

VCM also serves as the Fund's administrator and fund accountant. Under the Administration and Fund Accounting Agreement, VCM is entitled to receive fees based on a percentage of the average daily net assets of the Trust, Victory Portfolios and Victory Portfolios II. The tiered rates at which VCM is paid by the Funds are shown in the table below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** |
| **Up to $15 billion** | **Up to $15 billion** | **$15 billion – $30 billion** | **$15 billion – $30 billion** | **Over $30 billion** |
| 0.08 | %, plus | 0.05 | %, plus | 0.04% |

---

Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Administration fees.

Citi Fund Services Ohio, Inc. ("Citi"), an affiliate of Citibank, acts as sub-administrator and sub-fund accountant to the Fund pursuant to the Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Fund reimburses VCM and Citi for out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Sub-Administration fees.

The Fund (as part of the Trust) has entered into an agreement with the Adviser to provide compliance services, pursuant to which the Adviser furnishes its compliance personnel, including the services of the Chief Compliance Officer ("CCO"), and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration, and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The CCO is an employee of the Adviser, which pays the compensation of the CCO and support staff. The funds in the Trust, Victory Portfolios, Victory Portfolios II and USAA Mutual Funds (collectively, the "Victory Funds Complex"), in aggregate, compensate the Adviser for these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Compliance fees.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

**Transfer Agency Fees:**

FIS Investor Services, LLC ("FIS") serves as the Fund's transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Transfer agent fees.

**Distributor/Underwriting Services:**

Victory Capital Services, Inc. (the "Distributor"), an affiliate of the Adviser, serves as Distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust, and receives no fee or other compensation for these services.

**Other Fees:**

Citibank serves as the Fund's custodian. The Fund pays Citibank a fee for providing these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Custodian fees.

Sidley Austin LLP provides legal services to the Trust.

The Adviser has entered into an expense limitation agreement with the Fund until at least April 30, 2023. Under the terms of the agreement, the Adviser has agreed to waive fees or reimburse certain expenses to the extent that ordinary operating expenses incurred in any fiscal year exceed the expense limit for the Fund. Such excess amounts will be the liability of the Adviser. Acquired fund fees and expenses, interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund's business are excluded from the expense limits. As of December 31, 2022, the expense limit (excluding voluntary waivers) is 0.28%.

Under the terms of the expense limitation agreement, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period of up to three years (thirty-six (36) months) after the waiver or reimbursement took place, subject to the lesser of any operating expense limits in effect at the time of: (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount.

As of December 31, 2022, the following amounts are available to be repaid to the Adviser. The Fund has not recorded any amounts available to be repaid as a liability due to an assessment that such repayments are not probable at December 31, 2022.

---

| | | | |
|:---|:---|:---|:---|
| **Expires<br>2023** | **Expires<br>2024** | **Expires<br>2025** | **Total** |
| $277986 | $220169 | $124202 | $622357 |

---

The Adviser may voluntarily waive or reimburse additional fees to assist the Fund in maintaining competitive expense ratios. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the year ended December 31, 2022.

Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, administrator, fund accountant, sub-administrator, sub-fund accountant, custodian, legal counsel, and Distributor.

**5. Risks:**

The Fund may be subject to other risks in addition to these identified risks.

**<u>Equity Risk</u>** — The value of the equity securities in which the Fund invests may decline in response to developments affecting individual companies and/or general, economic conditions in the United States or abroad. A company's earnings or dividends may not increase as expected (or may decline) because of poor management, competitive pressures, reliance on particular suppliers or geographical regions,

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

labor problems or shortages, corporate restructurings, fraudulent disclosures, man-made or natural disasters, military confrontations or wars, terrorism, public health crises, or other events, conditions, and factors. Price changes may be temporary or last for extended periods.

**<u>Large-Capitalization Stock Risk</u>** — The securities of large-capitalization companies may underperform the securities of smaller capitalization companies or the market as a whole. The growth rate of larger, more established companies may lag those of smaller companies, especially during periods of economic expansion.

**<u>Passive Investment Risk/Index Risk</u>** — The Fund is designed to track the Index and is not actively managed. The Fund will not buy or sell shares of an equity security due to current or projected performance of a security, industry or sector, unless that security is added to or removed, respectively, from the Index. The Fund does not, therefore, seek returns in excess of the Index, and does not attempt to take defensive positions or hedge against potential risks unless such defensive positions are also taken by the Index.

**<u>Derivatives Risk</u>** — The use of derivative instruments, such as futures contracts and credit default swaps, exposes the Fund to additional risks and transaction costs. Risks of derivative instruments include: (1) the risk that interest rates, securities prices, asset values, and currency markets will not move in the direction that a portfolio manager anticipates; (2) imperfect correlation between the price of derivative instruments and movements in the prices of the securities, assets, interest rates or currencies being hedged; (3) the fact that skills needed to use these strategies are different than those needed to select portfolio securities; (4) the possible absence of a liquid secondary market for any particular instrument and possible exchange imposed price fluctuation limits, either of which may make it difficult or impossible to close out a position when desired; (5) the risk that adverse price movements in an instrument can result in a loss substantially greater than the Fund's initial investment in that instrument (in some cases, the potential loss is unlimited); (6) particularly in the case of privately-negotiated instruments, the risk that the counterparty will not perform its obligations, which could leave the Fund worse off than if it had not entered into the position; and (7) the inability to close out certain hedged positions to avoid adverse tax consequences.

**<u>Market Risk</u>** — Overall market risks may affect the value of the Fund. Domestic and international factors such as political events, war, terrorism, trade disputes, inflation rates, interest rate levels and other fiscal and monetary policy changes, cybersecurity incidents, pandemics and other public health crises, sanctions against a particular foreign country, its nationals, businesses or industries and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods or other catastrophes, may add to instability in global economies and markets generally, and may lead to increased market volatility. Global economies and financial markets are highly interconnected, which increases the possibility that conditions in one country or region might adversely affect issuers in another country or region. The impact of these and other factors may be short-term or may last for extended periods.

**6. Borrowing and Interfund Lending:**

**Line of Credit:**

The Victory Funds Complex participates in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 27, 2022, with a termination date of June 26, 2023. Under the agreement with Citibank, the Victory Funds Complex may borrow up to $600 million, of which $300 million is committed and $300 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory Floating Rate Fund, another series of the Victory Funds Complex, with Victory Floating Rate Fund paying the related commitment fees for that amount. The purpose of the Line of Credit is to meet temporary or emergency cash needs. For the year ended December 31, 2022, Citibank received an annual commitment fee of 0.15% on $300 million for providing the Line of Credit. Each fund in the Victory Funds Complex paid a pro-rata portion of the commitment fees plus any interest on amounts borrowed. For the period from January 1, 2022, through June 27, 2022, interest was based on the one-month London Interbank Offered Rate ("LIBOR") plus one percent.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

Effective with the renewal, for the period June 28, 2022, through December 31, 2022, interest was based on the one-month Secured Overnight Financing Rate (SOFR) plus 1.10 percent. The Fund is not expecting any material financial impact of transition from LIBOR to SOFR. Interest charged to the Fund during the period, if applicable, is reflected on the Statement of Operations under Line of credit fees.

The Fund had no borrowings under the Line of Credit agreement during the year ended December 31, 2022.

**Interfund Lending:**

The Trust and the Adviser rely on an exemptive order granted by the SEC in March 2017 (the "Order"), permitting the establishment and operation of an Interfund Lending Facility (the "Facility"). The Facility allows the Fund to directly lend and borrow money to or from any other fund in the Victory Funds Complex that is permitted to participate in the Facility, relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are allowed for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. As a Borrower, interest charged to the Fund, if any, during the period, is reflected on the Statement of Operations under Interfund lending fees. As a Lender, interest earned by the Fund, if any, during the period, is reflected on the Statement of Operations under Interfund lending.

The Fund did not utilize or participate in the Facility during the year ended December 31, 2022.

**7. Federal Income Tax Information:**

The Fund intends to distribute any net investment income annually. Distributable net realized gains, if any, are declared and paid at least annually.

The amounts of dividends from net investment income and distributions from net realized gains (collectively, distributions to shareholders) are determined in accordance with federal income tax regulations, which may differ from GAAP. To the extent these "book/tax" differences are permanent in nature (e.g., net operating loss and distribution reclassification), such amounts are reclassified within the components of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales) do not require reclassification. To the extent dividends and distributions exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. Net investment losses incurred by the Fund may be reclassified as an offset to capital on the accompanying Statement of Assets and Liabilities.

As of December 31, 2022, on the Statement of Assets and Liabilities, there were no permanent book-to-tax difference reclassification adjustments.

The tax character of distributions paid during the tax years ended, as noted below, were as follows (total distributions paid may differ from the Statements of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |
| **Distributions Paid From** | **Distributions Paid From** | | **Distributions Paid From:** | **Distributions Paid From:** | |
| **Ordinary<br>Income** | **Net<br>Long-Term<br>Capital Gains** |<br>**Total<br>Distributions<br>Paid** | **Ordinary<br>Income** | **Net <br>Long-Term <br>Capital Gains** |<br>**Total<br>Distributions<br>Paid** |
| $1379956 | $11577926 | $12957882 | $1523664 | $12698747 | $14222411 |

---

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

As of December 31, 2022, the components of accumulated earnings/(loss) on a tax basis were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed <br>Ordinary <br>Income** | **Undistributed <br>Long-Term<br>Capital Gains** | **Accumulated <br>Earnings** | **Unrealized <br>Appreciation <br>(Depreciation)\*** | **Total <br>Accumulated <br>Earnings (Loss)** |
| $1184910 | $7121236 | $8306146 | $54141541 | $62447687 |

---

\* The difference between the book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to tax deferral of losses on wash sales and futures.

As of December 31, 2022, the Fund had no capital loss carryforward for federal income tax purposes.

As of December 31, 2022, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation (depreciation) for investments were as follows:

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| | | | |
|:---|:---|:---|:---|
| **Cost of <br>Investments <br>for Federal <br>Tax Purposes** | **Net Gross <br>Unrealized <br>Appreciation** | **Gross <br>Unrealized <br>Depreciation** | **Net <br>Unrealized <br>Appreciation <br>(Depreciation)** |
| $28855650 | $58038850 | $(3897309) | $54141541 |

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Shareholders and Board of Trustees of Victory Variable Insurance Funds

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities, including the schedule of portfolio investments, of Victory 500 Index VIP Series (the "Fund"), a series of Victory Variable Insurance Funds, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the related notes, and the financial highlights for each of the four years in the period then ended (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, the results of its operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

The Fund's financial highlights for the year ended December 31, 2018, were audited by other auditors whose report dated February 15, 2019, expressed an unqualified opinion on those financial highlights.

**Basis for Opinion**

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the investment companies advised by Victory Capital Management, Inc. since 2015.

![](j2325456_ja006.jpg)

COHEN & COMPANY, LTD.<br>Cleveland, Ohio<br>February 16, 2023

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information**<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Trustee and Officer Information**

**Board of Trustees:**

Overall responsibility for management of the Trust rests with the Board. The Trust is managed by the Board in accordance with the laws of the State of Delaware. There are currently nine Trustees, eight of whom are not "interested persons" of the Trust within the meaning of that term under the 1940 Act ("Independent Trustees") and one of whom is an "interested person" of the Trust within the meaning of that term under the 1940 Act ("Interested Trustee"). The Trustees, in turn, elect the officers of the Trust to actively supervise its day-to-day operations.

The following tables list the Trustees, their date of birth, their position with the Trust, their commencement of service, their principal occupations during the past five years, and any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended, or who file reports under that Act. Each Trustee oversees 6 portfolios in the Trust, 37 portfolios in Victory Portfolios, and 25 portfolios in Victory Portfolios II, each a registered investment company that, together with the Trust, comprise the Victory Fund Complex. David C. Brown is a Trustee of USAA Mutual Funds and oversees 45 portfolios of the USAA Mutual Funds Trust. Each Trustee's address is c/o Victory Portfolios, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. Each Trustee has an indefinite term.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position<br>Held with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation<br>During Past 5 Years** | **Other<br>Directorships<br>Held During<br>Past 5 Years** |
| ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** |
| David Brooks Adcock, <br>October 1951 | Trustee | February 2005 | Consultant (since 2006). | Chairman, Board of Trustees, Turner Funds (December 2016-December 2017). |
| Nigel D. T. Andrews, <br>April 1947 | Trustee | August 2002 | Retired. | Director, Carlyle Secured Lending, Inc. (formerly TCG BDC I, Inc.) (since 2012); Director, Carlyle Credit Solutions, Inc. (formerly TCG BDC II, Inc.) (since 2017); Trustee, Carlyle Secured Lending III (since 2021). |
| E. Lee Beard,\* <br>August 1951 | Trustee | February 2005 | Retired. | None. |
| Dennis M. Bushe, <br>January 1944 | Trustee | July 2016 | Retired. | None. |

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position<br>Held with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation<br>During Past 5 Years** | **Other<br>Directorships<br>Held During<br>Past 5 Years** |
| John L. Kelly, <br>April 1953 | Chair and Trustee | February 2015 | Partner, McCarvill Capital Partners (September 2016- September 2017). | Director, Caledonia Mining Corporation (since May 2012). |
| David L. Meyer,<br>April 1957 | Trustee | December 2008 | Retired. | None. |
| Gloria S. Nelund, <br>May 1961 | Trustee | July 2016 | Chair, CEO and Co-Founder of TriLinc Global, LLC, an investment firm. | TriLinc Global Impact Fund, LLC (since 2012). |
| Timothy Pettee,<br>April 1958 | Advisory Trustee | January 2023 | Chief Investment Officer, Hoya Capital Real Estate LLC (since February 2022); Chief Investment Officer, Sun America Asset Management Corp. (January 2003-July 2021). | None. |
| Leigh A. Wilson, <br>December 1944 | Trustee | February 1998 | Private Investor. | Chair (since 2013), Caledonia Mining Corporation. |
| ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** |
| David C. Brown,\*\* <br>May 1972 | Trustee | May 2008 | Chief Executive Officer and Chairman (since 2013), the Adviser; Chief Executive Officer and Chairman (since 2013), Victory Capital Holdings, Inc.; Director (since 2013), Victory Capital Services, Inc.; Director (since 2019), Victory Capital Transfer Agency, Inc. | Trustee, USAA Mutual Funds Trust; Board Member, Victory Capital Services, Inc. |

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\* The Board has designated Ms. Beard as its Audit Committee Financial Expert.

\*\* Mr. Brown is an "Interested Person" by reason of his relationship with the Adviser.

The Statement of Additional Information includes additional information about the Trustees of the Trust and is available, without charge, by calling 800-539-3863.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

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&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Officers:**

The officers of the Trust, their date of birth, their commencement of service, and their principal occupations during the past five years, are detailed in the following table. Each officer serves until the earlier of his or her resignation, removal, retirement, death, or the election of a successor. The mailing address of each officer of the Trust is 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. The officers of the Trust receive no compensation directly from the Trust for performing the duties of their offices.

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| | | | |
|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation During Past 5 Years** |
| Christopher K. Dyer, <br>February 1962 | President | February 2006 | Director of Mutual Fund Administration, the Adviser (since 2004); Chief Operating Officer, Victory Capital Services, Inc. (since 2020); Vice President, Victory Capital Transfer Agency, Inc. (since 2019). |
| Scott A. Stahorsky, <br>July 1969 | Vice President | December 2014 | Manager, Fund Administration, the Adviser. (since 2015) |
| Thomas Dusenberry,<br>July 1977 | Secretary | May 2022 | Manager, Fund Administration, the Adviser (since 2022); Treasurer and Principal Financial Officer (2020-2022), Assistant Treasurer (2019), Salient MF Trust, Salient Midstream, MLP Fund and Forward Funds; Principal Financial Officer (2018-2021) and Treasurer (2020-2021), Salient Private Access Funds and Endowment PMF Funds; Senior Vice President of Fund Accounting and Operations, Salient Partners (2020-2022); Director of Fund Operations, Salient Partners (2016-2019). |
| Allan Shaer, <br>March 1965 | Treasurer | May 2017 | Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc. (since 2016) |
| Christopher A. Ponte, <br>March 1984 | Assistant Treasurer | December 2017 | Manager, Fund Administration, the Adviser (since 2017); Chief Financial Officer, Victory Capital Services, Inc. (since 2018). |
| Sean Fox,<br>September 1976 | Chief Compliance<br>Officer | June 2022 | Sr. Compliance Officer, the Adviser (since 2019); Compliance Officer, the Adviser (2015-2019). |
| Charles Booth,<br>April 1960 | Anti-Money Laundering Compliance Officer and Identity Theft Officer | May 2015 | Director, Regulatory Administration and CCO Support Services, Citi Fund Services Ohio, Inc. (since 2007). |
| Jay G. Baris, <br>January 1954 | Assistant Secretary | February 1998 | Partner, Sidley Austin LLP (since 2020); Partner, Shearman & Sterling LLP (2018-2020). |

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Proxy Voting and Portfolio Holdings Information**

**Proxy Voting:**

Information regarding the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-539-3863. The information is also included in the Fund's Statement of Additional Information, which is available on the SEC's website at sec.gov.

Information relating to how the Fund voted proxies relating to portfolio securities held during the most recent 12 months ended June 30 is available on the SEC's website at sec.gov.

**Availability of Schedules of Portfolio Investments:**

The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarter of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's website at sec.gov.

**Expense Example**

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2022, through December 31, 2022.

The Actual Expense figures in the table below provide information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

The Hypothetical Expense figures in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

Please note the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical expenses in the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Beginning<br>Account Value<br>7/1/22** | **Actual<br>Ending<br>Account Value<br>12/31/22** | **Hypothetical<br>Ending<br>Account Value<br>12/31/22** | **Actual<br>Expenses Paid <br>During Period<br>7/1/22-12/31/22\*** | **Hypothetical<br>Expenses Paid <br>During Period<br>7/1/22-12/31/22\*** | **Annualized<br>Expense Ratio<br>During Period<br>7/1/22-12/31/22** |
| $1000.00 | $1019.80 | $1023.79 | $1.43 | $1.43 | 0.28% |

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\* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 184/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

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&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Additional Federal Income Tax Information**

For the year ended December 31, 2022, the Fund paid qualified dividend income for the purposes of reduced individual federal income tax rates of 100%.

Dividends qualified for corporate dividends received deductions of 100%.

For the year ended December 31, 2022, the Fund designated short-term capital gain distributions in the amount of $237,521.

For the year ended December 31, 2022, the Fund designated long-term capital gain distributions in the amount of $11,577,926.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Considerations of the Board in Continuing the Investment Advisory Agreement (the "Agreement")**

The Board approved the Agreement on behalf of the Fund at a meeting, which was called for that purpose, on December 6, 2022. The Board also considered information relating to the Fund and the Agreement provided throughout the year and, more specifically, at the meetings on October 18, 2022 and December 6, 2022. In considering whether to approve the Agreement, the Board requested, and the Adviser provided, information that the Board believed to be reasonably necessary to reach its conclusions.

The Board, including the Independent Trustees, evaluated this information along with other information obtained throughout the year and was advised by legal counsel to the Fund and independent legal counsel to the Independent Trustees. In addition, the Independent Trustees considered a past review of their overall process for conducting the annual review of the Fund's advisory arrangements by a consultant retained through their counsel.

The Board considered the Fund's advisory fee, expense ratio and investment performance as significant factors in determining whether the Agreement should be continued. In considering whether the compensation paid to the Adviser was fair and reasonable, the Board also evaluated, among other things, the following factors:

• The requirements of the Fund for the services provided by the Adviser;

• The nature, quality and extent of the services provided and expected to be provided;

• The performance of the Fund as compared to comparable funds;

• The fees payable for the services and whether the fee arrangements provided for economies of scale that would benefit Fund shareholders as the Fund grows (acknowledging that economies of scale can be complex to assess and typically are not directly measurable);

• Whether the fee would be sufficient to enable the Adviser to attract and retain experienced personnel and continue to provide quality services to the Fund;

• The fees paid by other clients of the Adviser whose accounts are managed in a similar investment style and any differences in the services provided to the other clients compared to those provided to the Fund;

• The total expenses of the Fund;

• Management's commitment to operating the Fund at competitive expense levels;

• The profitability of the Adviser (as reflected by comparing fees earned against an estimate of the Adviser's costs) with respect to the Adviser's relationship with the Fund;

• Research and other service benefits received by the Adviser obtained through payment of client commissions for securities transactions;

• Other benefits received by the Adviser, and its affiliates, including revenues paid to the Adviser, or its affiliates, by the Fund for administration and fund accounting services, and distribution;

• The capabilities and financial condition of the Adviser;

• Current economic and industry trends; and

• The historical relationship between the Fund and the Adviser.

The Board reviewed the Fund's current management fee, comprised of the advisory fee plus the administrative services fee paid to the Adviser, in the context of the Adviser's profitability with respect to the Fund. The Board retained an independent, third-party consultant to provide comparative information about fees, expenses and performance, and to design and maintain a database of relevant information designed to assist the Board in retrieving and analyzing comparative information. The Board met with the consultant to review its inputs and methodologies, among other things. The Board compared the Fund's total operating expense ratio on a net and gross basis with a universe of comparable mutual funds compiled by the consultant and a peer group of funds with similar investment strategies selected by that consultant from the universe. The Board reviewed the factors and methodology used by the consultant in the selection of the Fund's peer group, including the consultant's selection of a broad universe of funds, the more specific universe of comparable funds, and peer groups of funds with comparable investment strategies and asset levels, among other factors. The Board also reviewed any

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

changes to the consultant's methodology as compared to the prior year, including those resulting from the Adviser's input, if any. The Board also reviewed fees and other information related to the Adviser's management of similarly managed institutional or private accounts, and the differences in the services provided to the other accounts, to the extent applicable. The Board noted that the advisory fee arrangements for the Fund do not include breakpoints, which would be a structure that results in reduced fees as a fund grows. The Board also considered the Adviser's commitment to limit expenses as discussed in more detail below.

The Board also reviewed the compliance and administrative services provided to the Fund by the Adviser and its affiliates, including the Adviser's oversight of the Fund's day-to-day operations and oversight of Fund accounting, assistance in meeting legal and regulatory requirements, and other services necessary for the operation of the Fund and the Trust.

The Board reviewed the Fund's performance over one-, three-, five- and ten-year periods against the performance of the Fund's selected peer group and benchmark index, noting that the Fund's investment objective is to track its benchmark index before fees and expenses. The Board recognized that the performance of the Fund is net of expenses, while the performance of the benchmark index reflects gross returns and as a result, the Fund generally will underperform its benchmark index due to fees and expenses. The Board considered the Fund's tracking error as a factor in evaluating performance.

The Board reviewed various other specific factors with respect to the Fund, as described below. In their deliberations, the Trustees did not rank the importance of any particular information or factor considered and each Trustee may have attributed different weights to various factors.

The Board concluded that the Fund's gross annual management fee was reasonable as compared to the median gross management fee charged to the funds in the Fund's peer group. The Board noted that the Fund's net annual expense ratio, taking into account any shareholder servicing or distribution fees, was reasonable as compared to the median expense ratio for the peer group. The Board considered the Adviser's contractual agreement to waive its fees and reimburse expenses for a specified period of time, as described in the Fund's prospectus.

The Board then compared the Fund's performance for the one-, three-, five- and ten-year periods ended June 30, 2022, to that of the median performance of the Fund's peer group and benchmark index for the same periods and considered the fact that the Fund underperformed the benchmark index for all of the periods reviewed, underperformed the peer group median for the one-, three- and five-year periods, and outperformed the peer group median for the ten-year period. The Board discussed with the Adviser how market conditions affected the Fund during periods of underperformance given the Fund's investment strategy and fee and expense profile.

Having considered, among other things: (1) that the Fund's management fee was within the ranges of advisory fees charged to comparable mutual funds; (2) that the Fund's total expense ratio was reasonable; (3) the Adviser's willingness to limit the expenses for a period of time would provide stability to the Fund's expenses during that period; and (4) the performance of the Fund, the Board concluded that the Agreement continued to be in the best interests of the Fund's shareholders.

**Conclusion**

Based on its review of the information requested and provided, and following extended discussions, the Board determined that the Agreement, on behalf of the Fund, was consistent with the best interests of the Fund and its shareholders, and the Board unanimously approved the Agreement, on behalf of the Fund, for an additional annual period on the basis of the foregoing review and discussions and the following considerations, among others:

• The fairness and reasonableness of the investment advisory fee payable to the Adviser under the Agreement in light of the investment advisory services provided, the costs of these services, the profitability of the Adviser's relationship with the Fund and the comparability of the fee paid to the fees paid by other investment companies;

• The nature, quality and extent of the investment advisory services provided by the Adviser;

• The Adviser's entrepreneurial commitment to the management of the Fund and the creation of a broad-based family of funds, which entails a substantial commitment of the Adviser's resources to the successful operation of the Fund;

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

• The Adviser's representations regarding its staffing and capabilities to manage the Fund, including the retention of personnel with relevant portfolio management experience;

• The Adviser's efforts to enhance investment results by, among other things, developing and supporting quality portfolio management teams; and

• The overall high quality of the personnel, operations, financial condition, investment management capabilities, methodologies and performance of the Adviser.

------

**Privacy Policy**

**Protecting the Privacy of Information**

The Trust respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain personal information about you. This is the information we collect from you on applications or other forms, and from the transactions you make with us or third parties. It may include your name, address, social security number, account transactions and balances, and information about investment goals and risk tolerance.

We do not disclose any information about you or about former customers to anyone except as permitted or required by law. Specifically, we may disclose the information we collect to companies that perform services on our behalf, such as the transfer agent that processes shareholder accounts and printers and mailers that assist us in the distribution of investor materials. We may also disclose this information to companies that perform marketing services on our behalf. This allows us to continue to offer you Victory investment products and services that meet your investing needs, and to effect transactions that you request or authorize. These companies will use this information only in connection with the services for which we hired them. They are not permitted to use or share this information for any other purpose.

To protect your personal information internally, we permit access only by authorized employees and maintain physical, electronic, and procedural safeguards to guard your personal information.\*

\* You may have received communications regarding information about privacy policies from other financial institutions which gave you the opportunity to "opt-out" of certain information sharing with companies which are not affiliated with that financial institution. The Trust does not share information with other companies for purposes of marketing solicitations for products other than the Trust. Therefore, the Trust does not provide opt-out options to their shareholders.

------

Victory Funds<br>P.O. Box 182593<br>Columbus, Ohio 43218-2593

![](j2325456_za007.jpg)

Visit our website at: Call Victory at: <br> vcm.com 800-539-FUND (800-539-3863)

VVIF-RS-SPIVIP-AR (12/22)

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![](j2325457_aa001.jpg)

December 31, 2022

Annual Report

Victory Variable Insurance Funds

Victory RS Small Cap Growth Equity VIP Series

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vcm.com

News, Information And Education 24 Hours A Day, 7 Days A Week

The Victory Capital website gives fund shareholders, prospective shareholders, and investment professionals a convenient way to access fund information, get guidance, and track fund performance anywhere they can access the Internet. The site includes:

• Detailed performance records

• Daily share prices

• The latest fund news

• Investment resources to help you become a better investor

• A section dedicated to investment professionals

Whether you're a potential investor searching for the fund that matches your investment philosophy, a seasoned investor interested in planning tools, or an investment professional, vcm.com has what you seek. Visit us anytime. We're always open.

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*Victory Variable Insurance Funds*

*Table of Contents*

---

| | |
|:---|:---|
| **Shareholder Letter (Unaudited)** | **3** |
| **Manager's Commentary (Unaudited)** | **5** |
| **Investment Overview (Unaudited)** | **9** |
| **Investment Objective & Portfolio Holdings <br>(Unaudited)** | **10** |
| **Schedule of Portfolio Investments** | **11** |
| **Financial Statements** | **Financial Statements** |
| *Statement of Assets and Liabilities* | **14** |
| *Statement of Operations* | **15** |
| *Statements of Changes in Net Assets* | **16** |
| *Financial Highlights* | **17** |
| **Notes to Financial Statements** | **18** |
| **Report of Independent <br>Registered Public Accounting Firm** | **26** |
| **Supplemental Information (Unaudited)** | **Supplemental Information (Unaudited)** |
| *Trustee and Officer Information* | **27** |
| *Proxy Voting and Portfolio Holdings Information* | **30** |
| *Expense Example* | **30** |
| *Additional Federal Income Tax Information* | **31** |
| *Advisory Contract Renewal* | **32** |
| *Privacy Policy (inside back cover)* |  |

---

------

*The Fund is distributed by Victory Capital Services, Inc. Victory Capital Management Inc. is the investment adviser to the Fund and receives fees from the Fund for performing services for the Fund.*

*This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus of the Fund.*

*For additional information about any Victory Fund, including fees, expenses, and risks, view our prospectus online at vcm.com or call 800-539-3863. Read it carefully before you invest or send money.*

*The information in this report is based on data obtained from recognized services and sources and is believed to be reliable. Any opinions, projections, or recommendations in this report are subject to change without notice and are not intended as individual investment advice. Past investment performance of the Fund markets or securities mentioned herein should not be considered to be indicative of future results.*

***• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE***

![](j2325457_ba002.jpg)

*Call Victory at:*

*800-539-FUND* (800-539-3863)

*Visit our website at:*

*vcm.com*

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*Victory Funds Letter to Shareholders<br> (Unaudited)*

Dear Shareholder,

Our most recent annual reporting period ending December 31, 2022, was filled with epic challenges. Even the most seasoned investors who have been through more than one economic cycle have not witnessed financial markets like this in a long time, if ever.

Consider what transpired and how the investing backdrop changed so abruptly. The year began well enough with ample liquidity and an encouraging outlook for corporate profits. But that optimism faded early and was punctuated by the start of a terrible war in Eastern Europe. This fueled rising energy prices and intensified an inflation problem that was proving to be more than "transitory."

The inflation data was particularly troublesome and surprised many with some of the highest readings since the 1970s. In response, the U.S. Federal Reserve (the "Fed") pivoted to a far more restrictive monetary policy than anyone anticipated. Over the course of 2022, the Fed boosted the Fed funds interest rate on seven different occasions by a total of 4.5 percentage points. And if that wasn't enough, zero-Covid policies in China further exacerbated supply chain issues and dampened the outlook for global growth.

As one might expect, all of these obstacles ratcheted up volatility across financial markets. Broad market stock indices pulled back substantially around the world. The S&P 500<sup>®</sup> Index, the bell-weather proxy for our domestic stock market, delivered a negative total return of more than 18% for our annual reporting period.

Perhaps what made 2022 even more difficult was the performance of fixed income markets, which normally are considered a safe haven in times of equity turmoil. But not this past year. In fact, the Bloomberg US Aggregate Bond Index — a proxy for a diversified fixed income portfolio and one that many investors and institutions follow closely — delivered a negative total return of approximately 13%, its worst annual performance since the 1970s. That's not exactly the offset to equity performance that many investors were expecting from bonds.

It was a tough year, and we fully acknowledge that the steady drumbeat of bad news and bouts of stomach-churning volatility can take a toll on investors' psyche. Nobody likes opening their account statements during declining markets; and even when markets snap back sharply (as happened this past July and October), investors often wonder if they have missed an opportunity.

Through all of the challenges in our most recent annual reporting period, we are reminded of two enduring realities: 1) financial markets are dynamic and apt to change abruptly; 2) it's vital that we remain calm and rational whenever faced with those inevitable bouts of turmoil.

Fortunately, we think that investors can take comfort knowing that all of our independent investment franchises have experience managing portfolios through a wide variety of market environments. Our investment professionals remain calm during turbulent financial markets, and we think it's imperative that investors do the same.

------

We still believe that a long-term plan, a well-diversified portfolio across asset classes and investment types, and a clear understanding of individual risk tolerances are the key ingredients for staying the course and progressing on investment goals. Moreover, all our investment professionals continually monitor the environment and work hard to position portfolios opportunistically no matter what the markets bring. Remember, turmoil can also create opportunity.

On the following pages you will find information relating to your Victory Funds investment. If you have any questions, we encourage you to contact your financial advisor. If you invest with us directly, you may call 800-539-3863 or visit our website at vcm.com.

From all of us here at Victory Capital, thank you for your ongoing confidence and for letting us help you work toward your investment goals.

![](j2325457_ba003.jpg)

**Christopher K. Dyer, CFA**

*President,*

*Victory Funds*

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Victory RS Small Cap Growth Equity VIP Series

**Managers' Commentary**<br> (Unaudited)

**What were the market conditions during the reporting period?**

Following robust calendar year returns during 2019, 2020, and 2021, the S&P 500<sup>®</sup> Index registered its seventh worst loss in the last 100 years, down 18.11% in 2022. The index, though, has still provided positive returns in 12 of the past 14 years. This challenging period was driven by a number of factors, including the global impact of COVID-19 and the Russian invasion of Ukraine on corporate fundamentals, an unprecedented reversal in monetary response, global logistical challenges, the highest levels of inflation since the 1980s, and changing consumer behavior. Despite all of this, we have also seen a resilient U.S. economy that continues to have low levels of unemployment and high levels of earnings in the face of adversity. Yet underlying this negative market performance were interesting differences among investment styles and market capitalizations, which we feel have created an opportunity.

While markets were broadly challenged across all styles at the start of the year, the underlying theme for U.S. equity markets for the first six months of the year was that value-oriented stocks with pricing power, such as those within the Energy, Utilities, and Consumer Staples sectors, were the place to allocate, and they materially outperformed growth-oriented secular stocks (defined as stocks that are taking market share from legacy companies, and thus are less sensitive to short-term economic output). Markets bounced back sharply during the summer from what had been a challenging first six months of the year as corporations reported better-than-expected earnings and signs emerged that inflation may have peaked. Growth stocks led the rebound, with the Russell 1000<sup>®</sup> Growth Index up 12.00% and the Russell 2000<sup>®</sup> Growth Index (the "Index") up 11.20% in July. But the euphoria was short-lived. Concerns re-emerged in August as investors began to digest how hawkish the U.S. Federal Reserve (the "Fed") really was, given its repeated statements confirming that it would not stop hiking the Fed funds interest rate until inflation was well in check, irrespective of the impact to the economy.

Markets again bounced back in October and November. Value stocks led the way, with the Russell 1000<sup>®</sup> Value Index up 10.25% in October and 6.25% in November, while the Russell 2000<sup>®</sup> Value Index was up 12.59% and 3.06% in these months. But once again, the buoyant mood dampened in December as interest rates were projected to be headed even higher; investors and corporate leaders began to loudly question whether Fed Chair Jerome Powell was up to the task of maintaining an economic environment supportive of corporate growth while simultaneously taming inflation. Many pundits suggested that the Fed was possibly making both problems worse.

For the full year, U.S. stock performance was mixed, yet negative across market caps and styles, with value stocks outperforming growth, as measured by the Russell family of indices. In the broader context, however, growth stocks, as measured by the Russell 3000<sup>®</sup> Growth Index, have maintained their dominance versus value stocks, as measured by the Russell 3000<sup>®</sup> Value Index, over the past 3, 5, 10, and 15 years. Although we expect this cyclical versus secular, as well as large-cap versus small-cap, tug-of-war to continue, we believe the longer-term outperformance of growth versus value, which has been supported by stronger underlying fundamentals, will come back. Technology-oriented growth companies have excelled and were largely insulated from the economic slowdown that took place the past few years relative to more traditional value companies. Although it appears that growth

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Victory RS Small Cap Growth Equity VIP Series

**Managers' Commentary** (continued)

stocks were perhaps a bit ahead of themselves from a relative valuation standpoint at the depths of the economic slowdown, this is no longer the case, especially as we look at smaller-cap stocks. We believe the recent underperformance of companies that are materially better off over the secular horizon, given their potential to take market share, is an opportunity for investors.

**How did Victory RS Small Cap Growth Equity VIP Series (the "Fund") perform during the reporting period?**

The Fund returned –36.36% for the fiscal year ended December 31, 2022, underperforming the Index, which returned –26.36% for the reporting period.

**What strategies did you employ during the reporting period?**

The Fund's relative performance was due to underperformance within the Health Care, Industrials, Information Technology, and Consumer Discretionary sectors.

Within the Health Care sector, one of the largest drivers of underperformance was health care facilities holding Surgery Partners, Inc. Surgery Partners, Inc. owns and operates a network of surgical facilities and ancillary services that offer nonemergency surgical procedures in various specialties. The stock was acquired given the large, fragmented, addressable market that could be consolidated as surgical cases moved to outpatient settings, driven by Medicare initiatives to shift volume, while the company has several near- and long-term catalysts to grow, including physician recruitment, expansion programs, and investment in innovative technologies. Despite strong execution, highlighted by top-line and earnings growth that was driven by well-managed labor and supply costs, growth did miss expectation early in the year for what we felt were explainable issues, such as increased vacations and noise from recent acquisitions. The company was subsequently downgraded in mid-June on concerns of the high leverage and potential impact higher interest rates would have on future capital needs. Given the company has $500 million in liquidity and has become free-cash-flow positive in 2022, we believe the market overreacted to these concerns, confirmed in part by a solid quarter to finish the year.

Within the Information Technology sector, the largest driver of underperformance was information technology holding Avaya Holdings Corp ("Avaya"). Avaya is a global business communications company that we initially allocated to following its partnership with RingCentral that provided it with a strong position in the Unified Communications as a Service (UCaaS) space. Avaya collects royalties from its partnership with RingCentral in return for providing RingCentral with access to its large existing client base, resulting in higher margin revenue and long-term growth prospects. Unfortunately, Avaya reported disappointing revenue that was below guidance and EBITDA that was materially less than expected, as strong cloud revenue was offset by lower revenue recognition and the negative impact on the company's Russia and Ukraine exposure. Sales and management turnover gave us pause to underwrite the sustainability of their growth despite the opportunity. As a result, we decided to move on from the position.

Within the Information Technology sector, another detractor was Bandwidth Inc. ("Bandwidth"). Bandwidth is a Communications Platform as a Service (CPaaS) solution focused on communications for enterprises. Some popular applications that use Bandwidth

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Victory RS Small Cap Growth Equity VIP Series

**Managers' Commentary** (continued)

on the market today include Google, Skype, and RingCentral. The software allows businesses to easily enhance their products and services with advanced text and voice capabilities, providing enterprises with end-to-end communications. We owned shares of Bandwidth given its large and growing market that we felt was still in the early days, as well as its best-in-class nationwide all-IP network, which provides a unique competitive moat in the communications platform market. The stock was challenged at the start the year, as the company's customers failed to return at the volume expected following a Distributed Denial-of-Service (DDOS) attack at the end of 2021, with some larger customers also renegotiating terms. While the company was transparent about the issues, our view that they were primed for clean growth going forward at a bargain price following a challenging 2021 appears to have been optimistic. As a result, we decided to move on from the holding.

One contributor to performance within the Information Technology sector was holding MACOM Technology Solutions Holdings, Inc. ("MACOM"). MACOM designs and manufactures analog semiconductor solutions for use in wireless and wireline applications across the radio frequency, microwave, millimeter wave, and lightwave spectrum. We initially purchased the stock given their leading technology in high-performance analog and compound semiconductors and completion of their business turnaround as they restructured the company to focus on growth opportunities. The stock performed well during the year, with steady beat-and-raises highlighted by revenues that were up double digits year-over-year and ahead of expectations, driven primarily by their execution within industrial and defense and wider gross margins. Going forward, we believe the company is further supported by the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act that will "make transformative investments to restore and advance our Nation's leadership in the research, development, and manufacturing of semiconductors," given the company owns their own domestic fabrication and has strong government agency relationships.

The largest driver of relative outperformance within the Materials sector was building materials holding AAON, Inc. AAON, Inc. engages in the engineering, manufacturing, marketing, and sale of air conditioning and heating equipment. We initially purchased the stock given the strong secular trends for the industry that include increased demand for high-performance air quality and energy efficiency, as well as the company's investments in new products that have been in high demand given improved manufacturing efficiency. Operationally, the company has performed well, and sales have been strong since they realigned sales channels with an all-independent sales force. The stock outperformed as earnings and revenue materially exceeded estimates on wider gross profit margins, while the company reported a record backlog, up more than 180% from a year ago on outsized demand for their products.

A top performer within the Energy sector was crude producers holding Ranger Oil Corp. Ranger Oil Corp., rebranded from Penn Virginia Corporation, is an independent oil & gas production company. We initially purchased the stock given its high-quality pure play on the Eagle Ford basin, which is a very strong asset base that we believe is insulated from risks of federal leasing/permitting issues given that all operations are located on private land in Texas. The company has significant resource potential and strong free-cash-flow generation, has made capital efficiency improvements, and has an experienced management team. The stock performed well, driven by strong execution ahead of plan. The company exceeded

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Victory RS Small Cap Growth Equity VIP Series

**Managers' Commentary** (continued)

expectations in the most recent quarter and raised the guidance for the year on lower capital expenditures while generating record free cash flow. As a result, they are initiating a first-ever dividend, executing a $100 million buyback, and they announced mergers and acquisitions that will add three locations to their Eagle Ford position and enhance their depth of inventory, bolstering their position and diluting the "inventory duration" question while adding accretion to earnings.

Given the renewed concerns over forward economic growth given tighter monetary policy in the face of elevated inflation and sluggish growth, along with the continued global impact of COVID-19 and the Russian invasion of Ukraine on corporate fundamentals, we believe there is continued uncertainty among investors that is likely to cause continued periods of elevated volatility (both to the upside and downside) and divergence as new companies emerge, while others struggle to retain their previous leadership. We feel this will create an abundance of opportunities across sectors, industries, and markets in coming quarters and years as the economy and markets transition and recover.

We do not have a clear view or projection as to how large or prolonged any impact will be given the uncertainty regarding the continued unfolding of events abroad and the resulting economic impact, politicization, and potential scale of incremental or contractionary fiscal and monetary stimulus, but we do believe there are clear pockets of the economy that remain better positioned than others to adjust to any future state given the ability of their workers to remain productive and end-customer demand to remain steady irrespective of the forward economic environment.

Within the growth universe, the current opportunity set appears especially pronounced for secular growth companies, rather than those more cyclical in nature, given the continued strength in underlying fundamentals and relative underperformance by secular growth companies since early November 2020, when market leadership abruptly shifted from companies with better long-term sustainable growth opportunities to areas that had been more challenged by COVID-19 or that could benefit from inflationary pressures experienced over the past year. As a result, we believe we can now allocate to companies with clearer paths of outsized growth with much improved relative valuations as compared to almost any other period of the last 10+ years.

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Victory RS Small Cap Growth Equity VIP Series

**Investment Overview**<br> (Unaudited)

**Average Annual Total Return**

*Year Ended December 31, 2022*

---

| | | | |
|:---|:---|:---|:---|
| | **Class I** | | |
| **INCEPTION DATE** | *5/1/97* |  |  |
|  | **Net Asset Value** | **Russell 2000<sup>®</sup> Growth <br>Index<sup>1</sup>** | **Russell 2000<sup>®</sup> Index<sup>2</sup>** |
| *One Year* | *–36.36%* | *–26.36%* | *–20.44%* |
| *Five Year* | *0.04%* | *3.51%* | *4.13%* |
| *Ten Year* | *8.86%* | *9.20%* | *9.01%* |

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***The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit vcm.com.***

*Total return measures the price change in a share assuming the reinvestment of all net investment income and realized capital gain distributions, if any. The total returns quoted do not reflect adjustments made to the enclosed financial statements in accordance with U.S. Generally Accepted Accounting Principles or the deduction of taxes that a shareholder would pay on net investment income and realized capital gain distributions, including reinvested distributions, or redemptions of shares. The total return figures set forth above include all waivers of fees. Without such fee waivers, the total returns would have been lower. Total returns do not reflect the effects of charges deducted pursuant to the terms of The Guardian Insurance & Annuity Company, Inc.'s variable contracts. Inclusion of such charges would reduce the total returns for all periods shown.*

**Victory RS Small Cap Growth Equity VIP Series — Growth of $10,000**

![](j2325457_bc004.jpg)

*<sup>1</sup>The Russell 2000<sup>®</sup> Growth Index is an unmanaged market-capitalization-weighted index that measures the performance of those companies in the Russell 2000<sup>®</sup> Index with higher price-to-book ratios and higher forecasted growth values. Index results assume the reinvestment of dividends paid on the stocks constituting the index. This index does not include the effect of sales charges, commissions, expenses, or taxes, is not representative of the Fund, and it is not possible to invest directly in an index.*

*<sup>2</sup>The Russell 2000<sup>®</sup> Index measures the performance of the small-cap segment of the U.S. equity universe. This index does not include the effect of sales charges, commissions, expenses, or taxes, is not representative of the Fund, and it is not possible to invest directly in an index.*

*The graph reflects investment of growth of a hypothetical $10,000 investment in the Fund.*

*The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares.*

**Past performance is not indicative of future results.**

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| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory RS Small Cap Growth Equity VIP Series** | December 31, 2022 |

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&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Investment Objective and Portfolio Holdings:**

The Fund seeks to provide long-term capital growth.

**Top 10 Holdings\*:**

*December 31, 2022*

*(% of Net Assets)*

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| | |
|:---|:---|
| *MACOM Technology Solutions Holdings, Inc.* | *3.3%* |
| *Evoqua Water Technologies Corp.* | *2.7%* |
| *BellRing Brands, Inc.* | *2.7%* |
| *WNS Holdings Ltd.* | *2.2%* |
| *Inspire Medical Systems, Inc.* | *2.2%* |
| *Advanced Energy Industries, Inc.* | *2.1%* |
| *Acadia Healthcare Co., Inc.* | *2.1%* |
| *Sprout Social, Inc., Class A* | *2.1%* |
| *Denbury, Inc.* | *2.0%* |
| *AAON, Inc.* | *1.9%* |

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**Sector Allocation\*:**

*December 31, 2022*

*(% of Net Assets)*

![](j2325457_bc005.jpg)

\* Does not include futures contracts, money market instruments, and short-term investments purchased with cash collateral from securities loaned.

Percentages are of the net assets of the Fund and may not equal 100%.

Refer to the Schedule of Portfolio Investments for a complete list of securities.

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| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory RS Small Cap Growth Equity VIP Series** | **Schedule of Portfolio Investments**<br> December 31, 2022 |

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| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Common Stocks (97.9%)** | **Common Stocks (97.9%)** | **Common Stocks (97.9%)** |
| **Communication Services (2.4%):** | **Communication Services (2.4%):** | **Communication Services (2.4%):** |
| World Wrestling Entertainment, Inc., Class A | 11750 | $805110 |
| ZipRecruiter, Inc. (a) | 56710 | 931178 |
|  |  | 1736288 |
| **Consumer Discretionary (7.5%):** | **Consumer Discretionary (7.5%):** | **Consumer Discretionary (7.5%):** |
| Acushnet Holdings Corp. | 19570 | 830942 |
| Columbia Sportswear Co. | 9800 | 858284 |
| Fox Factory Holding Corp. (a) | 7560 | 689699 |
| Ollie's Bargain Outlet Holdings, Inc. (a) | 11530 | 540065 |
| Ralph Lauren Corp. | 9290 | 981674 |
| Texas Roadhouse, Inc. | 5740 | 522053 |
| Wingstop, Inc. | 6430 | 884897 |
|  |  | 5307614 |
| **Consumer Staples (7.1%):** | **Consumer Staples (7.1%):** | **Consumer Staples (7.1%):** |
| BellRing Brands, Inc. (a) | 73960 | 1896335 |
| Celsius Holdings, Inc. (a) | 8050 | 837522 |
| e.l.f. Beauty, Inc. (a) | 7420 | 410326 |
| Grocery Outlet Holding Corp. (a) | 45520 | 1328729 |
| The Simply Good Foods Co. (a) | 14710 | 559421 |
|  |  | 5032333 |
| **Energy (6.8%):** | **Energy (6.8%):** | **Energy (6.8%):** |
| Callon Petroleum Co. (a) | 8370 | 310443 |
| Denbury, Inc. (a) | 15990 | 1391450 |
| Matador Resources Co. | 16120 | 922709 |
| Permian Resources Corp. | 96130 | 903622 |
| Ranger Oil Corp. | 31690 | 1281227 |
|  |  | 4809451 |
| **Financials (6.2%):** | **Financials (6.2%):** | **Financials (6.2%):** |
| FirstCash Holdings, Inc. | 6260 | 544056 |
| Focus Financial Partners, Inc., Class A (a) | 13710 | 510972 |
| Kinsale Capital Group, Inc. | 3850 | 1006852 |
| PRA Group, Inc. (a) | 34510 | 1165748 |
| Wintrust Financial Corp. | 13760 | 1162995 |
|  |  | 4390623 |
| **Health Care (24.3%):** | **Health Care (24.3%):** | **Health Care (24.3%):** |
| Acadia Healthcare Co., Inc. (a) | 18300 | 1506456 |
| Agios Pharmaceuticals, Inc. (a) | 27890 | 783151 |
| Apellis Pharmaceuticals, Inc. (a) | 12950 | 669645 |
| Axonics, Inc. (a) | 11940 | 746608 |
| BioCryst Pharmaceuticals, Inc. (a) | 64550 | 741034 |
| Chinook Therapeutics, Inc. (a) | 37200 | 974640 |
| Equillium, Inc. (a) (b) | 72630 | 79893 |
| Evolent Health, Inc., Class A (a) | 37510 | 1053281 |
| Fate Therapeutics, Inc. (a) | 24080 | 242967 |
| Halozyme Therapeutics, Inc. (a) | 17640 | 1003716 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory RS Small Cap Growth Equity VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| HealthEquity, Inc. (a) | 20760 | $| 1279646 |
| Inspire Medical Systems, Inc. (a) | 6130 |  | 1544024 |
| Krystal Biotech, Inc. (a) | 10780 |  | 853992 |
| Kura Oncology, Inc. (a) | 45190 |  | 560808 |
| LivaNova PLC (a) | 14440 |  | 801998 |
| Opthea Ltd., ADR (a) (c) | 38140 |  | 213584 |
| Option Care Health, Inc. (a) | 30300 |  | 911727 |
| PROCEPT BioRobotics Corp. (a) (b) | 5610 |  | 233039 |
| Prometheus Biosciences, Inc. (a) | 3230 |  | 355300 |
| Replimune Group, Inc. (a) | 16400 |  | 446080 |
| Shockwave Medical, Inc. (a) | 4830 |  | 993096 |
| SpringWorks Therapeutics, Inc. (a) | 20050 |  | 521501 |
| Surgery Partners, Inc. (a) | 25430 |  | 708480 |
|  |  |  | 17224666 |
| **Industrials (14.9%):** | **Industrials (14.9%):** | **Industrials (14.9%):** | **Industrials (14.9%):** |
| AAON, Inc. | 17670 |  | 1330905 |
| AAR Corp. (a) | 21950 |  | 985555 |
| Applied Industrial Technologies, Inc. | 10120 |  | 1275424 |
| Bloom Energy Corp., Class A (a) | 58770 |  | 1123682 |
| Chart Industries, Inc. (a) | 6370 |  | 734015 |
| Clean Harbors, Inc. (a) | 10740 |  | 1225649 |
| Evoqua Water Technologies Corp. (a) | 47960 |  | 1899216 |
| Saia, Inc. (a) | 5080 |  | 1065174 |
| Shoals Technologies Group, Inc., Class A (a) | 17520 |  | 432218 |
| Simpson Manufacturing Co., Inc. | 5620 |  | 498269 |
|  |  |  | 10570107 |
| **Information Technology (24.1%):** | **Information Technology (24.1%):** | **Information Technology (24.1%):** | **Information Technology (24.1%):** |
| Advanced Energy Industries, Inc. | 17570 |  | 1507155 |
| Badger Meter, Inc. | 2540 |  | 276936 |
| Box, Inc., Class A (a) | 36640 |  | 1140603 |
| Braze, Inc., Class A (a) | 9940 |  | 271163 |
| CyberArk Software Ltd. (a) | 6730 |  | 872545 |
| Digi International, Inc. (a) | 14810 |  | 541306 |
| DigitalOcean Holdings, Inc. (a) | 20600 |  | 524682 |
| Flywire Corp. (a) | 33120 |  | 810446 |
| Gitlab, Inc., Class A (a) | 14000 |  | 636160 |
| Impinj, Inc. (a) | 9390 |  | 1025200 |
| Jamf Holding Corp. (a) | 16860 |  | 359118 |
| MACOM Technology Solutions Holdings, Inc. (a) | 36680 |  | 2310106 |
| Marqeta, Inc., Class A (a) | 44500 |  | 271895 |
| Paya Holdings, Inc. (a) | 54010 |  | 425059 |
| Paycor HCM, Inc. (a) (b) | 40870 |  | 1000089 |
| Payoneer Global, Inc. (a) | 151220 |  | 827173 |
| Shift4 Payments, Inc., Class A (a) | 9470 |  | 529657 |
| Smartsheet, Inc., Class A (a) | 8480 |  | 333773 |
| Sprout Social, Inc., Class A (a) | 26140 |  | 1475864 |
| Varonis Systems, Inc. (a) | 16340 |  | 391180 |
| WNS Holdings Ltd., ADR (a) | 19716 |  | 1577083 |
|  |  |  | 17107193 |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds<br>**Victory RS Small Cap Growth Equity VIP Series** | **Schedule of Portfolio Investments —** *continued*<br> December 31, 2022 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Materials (4.6%):** | **Materials (4.6%):** | **Materials (4.6%):** |
| Avient Corp. | 16920 | $571219 |
| Livent Corp. (a) | 26390 | 524370 |
| Silgan Holdings, Inc. | 25180 | 1305331 |
| Summit Materials, Inc., Class A (a) | 29503 | 837590 |
|  |  | 3238510 |
| **Total Common Stocks (Cost $70,574,347)** | **Total Common Stocks (Cost $70,574,347)** | 69416785 |
| **Collateral for Securities Loaned (0.2%)^** | **Collateral for Securities Loaned (0.2%)^** | **Collateral for Securities Loaned (0.2%)^** |
| Goldman Sachs Financial Square Government Fund, Institutional <br>Shares, 4.14% (d) | 38142 | 38142 |
| HSBC U.S. Government Money Market Fund, Institutional Shares, 4.13% (d) | 38142 | 38142 |
| Invesco Government & Agency Portfolio, Institutional Shares, 4.22% (d) | 38142 | 38142 |
| Morgan Stanley Institutional Liquidity Government Portfolio, Institutional <br>Shares, 4.08% (d) | 38142 | 38142 |
| **Total Collateral for Securities Loaned (Cost $152,568)** | **Total Collateral for Securities Loaned (Cost $152,568)** | 152568 |
| **Total Investments (Cost $70,726,915) — 98.1%** | **Total Investments (Cost $70,726,915) — 98.1%** | 69569353 |
| **Other assets in excess of liabilities — 1.9%** | **Other assets in excess of liabilities — 1.9%** | 1321535 |
| **NET ASSETS — 100.00%** | **NET ASSETS — 100.00%** | $70890888 |

---

^ Purchased with cash collateral from securities on loan.

(a) Non-income producing security.

(b) All or a portion of this security is on loan.

(c) The Fund's Adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. As of December 31, 2022, illiquid securities were 0.3% of net assets.

(d) Rate disclosed is the daily yield on December 31, 2022.

ADR — American Depositary Receipt

PLC — Public Limited Company

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statement of Assets and Liabilities**<br> December 31, 2022 |

---

---

| | |
|:---|:---|
| | **Victory RS Small Cap<br>Growth Equity VIP Series** |
| **Assets:** | **Assets:** |
| Investments, at value (Cost $70,726,915) | $69569353<br> (a) |
| Cash | 1248312 |
| Receivables: | Receivables: |
| Interest and dividends | 11234 |
| Capital shares issued | 70708 |
| Investments sold | 498064 |
| From Adviser | 7428 |
| Prepaid expenses | 136 |
| Total Assets | 71405235 |
| **Liabilities:** | **Liabilities:** |
| Payables: | Payables: |
| Collateral received on loaned securities | 152568 |
| Investments purchased | 224278 |
| Capital shares redeemed | 41688 |
| Accrued expenses and other payables: | Accrued expenses and other payables: |
| Investment advisory fees | 46930 |
| Administration fees | 4313 |
| Custodian fees | 1273 |
| Transfer agent fees | 21199 |
| Compliance fees | 57 |
| Trustees' fees | 108 |
| Other accrued expenses | 21933 |
| Total Liabilities | 514347 |
| **Net Assets:** | **Net Assets:** |
| Capital | 98091318 |
| Total accumulated earnings/(loss) | (27200430) |
| Net Assets | $70890888 |
| Shares (unlimited shares authorized with a par value of $0.001 per share): | 8923903 |
| Net asset value: | $7.94 |

---

(a) Includes $157,712 of securities on loan.

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statement of Operations**<br> For the Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| | **Victory RS Small Cap<br>Growth Equity VIP Series** |
| **Investment Income:** | **Investment Income:** |
| Dividends | $250366 |
| Interest | 14784 |
| Securities lending (net of fees) | 8763 |
| Total Income | 273913 |
| **Expenses:** | **Expenses:** |
| Investment advisory fees | 612735 |
| Administration fees | 44471 |
| Sub-Administration fees | 16965 |
| Custodian fees | 6354 |
| Transfer agent fees | 93925 |
| Trustees' fees | 6733 |
| Compliance fees | 677 |
| Legal and audit fees | 14559 |
| Interfund lending | 361 |
| Other expenses | 17517 |
| Total Expenses | 814297 |
| Expenses waived/reimbursed by Adviser | (96013) |
| Net Expenses | 718284 |
| Net Investment Income (Loss) | (444371) |
| **Realized/Unrealized Gains (Losses) from Investments:** | **Realized/Unrealized Gains (Losses) from Investments:** |
| Net realized gains (losses) from investment securities | (25183280) |
| Net change in unrealized appreciation/depreciation on investment securities | (15263446) |
| Net realized/unrealized gains (losses) on investments | (40446726) |
| Change in net assets resulting from operations | $(40891097) |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Statements of Changes in Net Assets** |

---

---

| | | |
|:---|:---|:---|
| | **Victory RS Small Cap Growth<br>Equity VIP Series** | **Victory RS Small Cap Growth<br>Equity VIP Series** |
| | **Year<br>Ended<br>December 31,<br>2022** | **Year<br>Ended<br>December 31,<br>2021** |
| **From Investment Activities:** | **From Investment Activities:** | **From Investment Activities:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income (Loss) | $(444371) | $(997483) |
| Net realized gains (losses) | (25183280) | 18931340 |
| Net change in unrealized appreciation/depreciation | (15263446) | (31860727) |
| Change in net assets resulting from operations | (40891097) | (13926870) |
| Change in net assets resulting from distributions to shareholders | (18459749) | (8854544) |
| Change in net assets resulting from capital transactions | 17007983 | (6604640) |
| Change in net assets | (42342863) | (29386054) |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of period | 113233751 | 142619805 |
| End of period | $70890888 | $113233751 |
| **Capital Transactions:** | **Capital Transactions:** | **Capital Transactions:** |
| Proceeds from shares issued | $15690897 | $17744088 |
| Distributions reinvested | 18459749 | 8854544 |
| Cost of shares redeemed | (17142663) | (33203272) |
| Change in net assets resulting from capital transactions | $17007983 | $(6604640) |
| **Share Transactions:** | **Share Transactions:** | **Share Transactions:** |
| Issued | 1349114 | 899924 |
| Reinvested | 2221390 | 565424 |
| Redeemed | (1557497) | (1719218) |
| Change in Shares | 2013007 | (253870) |

---

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Financial Highlights** |

---

*For a Share Outstanding Throughout Each Period*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Victory RS Small Cap Growth Equity VIP Series** | **Victory RS Small Cap Growth Equity VIP Series** | **Victory RS Small Cap Growth Equity VIP Series** | **Victory RS Small Cap Growth Equity VIP Series** | **Victory RS Small Cap Growth Equity VIP Series** |
| | **Year<br>Ended<br>December 31,<br>2022** | **Year<br>Ended<br>December 31,<br>2021** | **Year<br>Ended<br>December 31,<br>2020** | **Year<br>Ended<br>December 31,<br>2019** | **Year<br>Ended<br>December 31,<br>2018** |
| **Net Asset Value, Beginning of Period** | $16.38 | $19.91 | $16.76 | $15.29 | $20.48 |
| Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: | Investment Activities: |
| Net investment income (loss) (a) | (0.06) | (0.15) | (0.12) | (0.10) | (0.10) |
| Net realized and unrealized gains <br>(losses) | (5.78) | (1.99) | 6.45 | 5.95 | (1.62) |
| Total from Investment Activities | (5.84) | (2.14) | 6.33 | 5.85 | (1.72) |
| Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: | Distributions to Shareholders From: |
| Net realized gains from investments | (2.60) | (1.39) | (3.18) | (4.38) | (3.47) |
| Total Distributions to <br>Shareholders | (2.60) | (1.39) | (3.18) | (4.38) | (3.47) |
| **Net Asset Value, End of Period** | $7.94 | $16.38 | $19.91 | $16.76 | $15.29 |
| Total Return (b)(c) | (36.36)% | (10.43)% | 38.06% | 38.78% | (8.25)% |
| **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** | **Ratios to Average Net Assets:** |
| Net Expenses (d) | 0.88% | 0.88% | 0.88% | 0.88% | 0.88% |
| Net Investment Income (Loss) | (0.54)% | (0.75)% | (0.69)% | (0.54)% | (0.44)% |
| Gross Expenses (d) | 1.00% | 0.99% | 1.01% | 1.01% | 0.89% |
| **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** | **Supplemental Data:** |
| Net Assets at end of period (000's) | $70891 | $113234 | $142620 | $105112 | $89056 |
| Portfolio Turnover | 151<br> %(e) | 92% | 74% | 90% | 76% |

---

(a) Per share net investment income (loss) has been calculated using the average daily shares method.

(b) Total returns do not reflect the effects of charges deducted pursuant to the terms of The Guardian Insurance & Annuity Company, Inc.'s variable contracts. Inclusion of such charges would reduce the total returns for all periods shown.

(c) Assumes reinvestment of all net investment income and realized capital gain distributions, if any, during the period. Includes adjustments in accordance with U.S. Generally Accepted Accounting Principles and could differ from the reported total return.

(d) Does not include acquired fund fees and expenses, if any.

(e) Reflects an increase in trading activity due to asset allocation shifts.

*See notes to financial statements.*

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements**<br> December 31, 2022 |

---

**1. Organization:**

Victory Variable Insurance Funds (the "Trust") is organized as a Delaware statutory trust and the Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. The Trust is comprised of six funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with a par value of $0.001 per share.

The accompanying financial statements are those of Victory RS Small Cap Growth Equity VIP Series (the "Fund"), a series of the Trust. The Fund offers a single class of shares: Class I. The Fund's shares are only available for purchase by certain separate accounts of insurance companies as investments for certain variable annuity plans and variable life insurance contracts issued by those insurance companies. The Fund is classified as diversified under the 1940 Act.

Victory Capital Management Inc. ("VCM" or the "Adviser") is an indirect wholly owned subsidiary of Victory Capital Holdings, Inc., a publicly traded Delaware corporation, and a wholly owned direct subsidiary of Victory Capital Operating, LLC.

Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund. However, based on experience, the Fund expects that risk of loss to be remote.

**2. Significant Accounting Policies:**

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with U.S. Generally Accepted Accounting Principles ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies under Accounting Standards Codification Topic 946.

**Investment Valuation:**

The Fund records investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The valuation techniques described below maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Fund's investments are summarized in the three broad levels listed below:

• Level 1 — quoted prices (unadjusted) in active markets for identical securities

• Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, or credit spreads, applicable to those securities, etc.)

• Level 3 — significant unobservable inputs (including the Adviser's assumptions in determining the fair value of investments)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.

The Adviser, appointed as the valuation designee by the Trust's Board of Trustees' (the "Board"), has established the Pricing and Liquidity Committee (the "Committee"), and subject to Board oversight, the Committee administers and oversees the Fund's valuation policies and procedures, which are approved by the Board.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

Portfolio securities listed or traded on securities exchanges, including Exchange-Traded Funds ("ETFs"), and American Depositary Receipts ("ADRs"), are valued at the closing price on the exchange or system where the security is principally traded, if available, or at the Nasdaq Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.

Investments in open-end investment companies, other than ETFs, are valued at their net asset value ("NAV"). These valuations are typically categorized as Level 1 in the fair value hierarchy.

In the event that price quotations or valuations are not readily available, investments are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded and the actual price realized from the sale of a security may differ materially from the fair value price. Valuing these securities at fair value is intended to cause the Fund's NAV to be more reliable than it otherwise would be.

A summary of the valuations as of December 31, 2022, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed on the Schedule of Portfolio Investments:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks | $69416785 | $— | $— | $69416785 |
| Collateral for Securities Loaned | 152568 |  |  | 152568 |
| Total | $69569353 | $— | $— | $69569353 |

---

As of December 31, 2022, there were no transfers into/out of Level 3.

**Real Estate Investment Trusts ("REITs"):**

The Fund may invest in REITs, which report information on the source of their distributions annually. REITs are pooled investment vehicles that invest primarily in income-producing real estate or real-estate related loans or interests (such as mortgages). Certain distributions received from REITs during the year are recorded as realized gains or return of capital as estimated by the Fund or when such information becomes known.

**Investment Companies:**

Open-End Funds:

The Fund may invest in portfolios of open-end investment companies. These investment companies value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value by the methods established by the board of directors of the underlying funds.

**Investment Transactions and Related Income:**

Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date or the last business day of the reporting period. Interest income is determined on the basis of coupon interest accrued using the effective interest method which adjusts, where applicable, the amortization of premiums or accretion of discounts. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are recorded on the identified cost basis.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

**Securities Lending:**

The Fund, through a Securities Lending Agreement with Citibank, N.A. ("Citibank"), may lend its securities to qualified financial institutions, such as certain broker-dealers and banks, to earn additional income, net of income retained by Citibank. Borrowers are required to initially secure their loans for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are generally cured the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities and other securities as permitted by Securities and Exchange Commission ("SEC") guidelines. The cash collateral is invested in short-term instruments or cash equivalents, primarily open-end investment companies, as noted on the Fund's Schedule of Portfolio Investments. The Fund effectively does not have control of the non-cash collateral and therefore it is not disclosed on the Fund's Schedule of Portfolio Investments. Collateral requirements are determined daily based on the value of the Fund's securities on loan as of the end of the prior business day. During the time portfolio securities are on loan, the borrower will pay the Fund any dividends or interest paid on such securities plus any fee negotiated between the parties to the lending agreement. The Fund also earns a return from the collateral. The Fund pays Citibank various fees in connection with the investment of cash collateral and fees based on the investment income received from securities lending activities. Securities lending income (net of these fees) is disclosed on the Statement of Operations. Loans are terminable upon demand and the borrower must return the loaned securities within the lesser of one standard settlement period or five business days. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. In addition, there is a risk that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower.

The Fund's agreement with Citibank does not include master netting provisions. Non-cash collateral received by the Fund may not be sold or repledged, except to satisfy borrower default.

The following table is a summary of the Fund's securities lending transactions as of December 31, 2022.

---

| | | |
|:---|:---|:---|
| **Value of<br>Securities on Loan** | **Non-Cash<br>Collateral** | **Cash<br>Collateral** |
| $157712 | $— | $152568 |

---

**Federal Income Taxes:**

The Fund intends to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes is required in the financial statements. The Fund has a tax year end of December 31.

For the year ended December 31, 2022, the Fund did not incur any income tax, interest, or penalties, and has recorded no liability for net unrecognized tax benefits relating to uncertain tax positions.

Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax years, which includes the current fiscal tax year end). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

**Allocations:**

Expenses directly attributable to the Fund are charged to the Fund, while expenses that are attributable to more than one fund in the Trust, or jointly with an affiliated trust, are allocated among the respective funds in the Trust and/or an affiliated trust based upon net assets or another appropriate basis.

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

**3. Purchases and Sales:**

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the year ended December 31, 2022, were as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Excluding<br>U.S. Government Securities** | &nbsp;&nbsp;&nbsp;&nbsp;**Excluding<br>U.S. Government Securities** |
| **Purchases** | **Sales** |
| $122123863 | $123685878 |

---

**4. Fees and Transactions with Affiliates and Related Parties:**

**Investment Advisory Fees:**

Investment advisory services are provided to the Fund by the Adviser, which is a New York corporation registered as an investment adviser with the SEC.

Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive fees accrued daily and paid monthly at an annualized rate of 0.75% of the Fund's average daily net assets. Amounts incurred and paid to VCM for the year ended December 31, 2022, are reflected on the Statement of Operations as Investment advisory fees.

**Administration and Servicing Fees:**

VCM also serves as the Fund's administrator and fund accountant. Under the Administration and Fund Accounting Agreement, VCM is entitled to receive fees based on a percentage of the average daily net assets of the Trust, Victory Portfolios and Victory Portfolios II. The tiered rates at which VCM is paid by the Funds are shown in the table below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Net Assets** |
| **Up to $15 billion** | **Up to $15 billion** | **$15 billion – $30 billion** | **$15 billion – $30 billion** | **Over $30 billion** |
| 0.08 | %, plus | 0.05 | %, plus | 0.04% |

---

Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Administration fees.

Citi Fund Services Ohio, Inc. ("Citi"), an affiliate of Citibank, acts as sub-administrator and sub-fund accountant to the Fund pursuant to the Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Fund reimburses VCM and Citi for out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Sub-Administration fees.

The Fund (as part of the Trust) has entered into an agreement with the Adviser to provide compliance services, pursuant to which the Adviser furnishes its compliance personnel, including the services of the Chief Compliance Officer ("CCO"), and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration, and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The CCO is an employee of the Adviser, which pays the compensation of the CCO and support staff. The funds in the Trust, Victory Portfolios, Victory Portfolios II and USAA Mutual Funds (collectively, the "Victory Funds Complex"), in aggregate, compensate the Adviser for these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Compliance fees.

**Transfer Agency Fees:**

FIS Investor Services, LLC ("FIS") serves as the Fund's transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Transfer agent fees.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

**Distributor/Underwriting Services:**

Victory Capital Services, Inc. (the "Distributor"), an affiliate of the Adviser, serves as Distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust, and receives no fee or other compensation for these services.

**Other Fees:**

Citibank serves as the Fund's custodian. The Fund pays Citibank a fee for providing these services. Amounts incurred for the year ended December 31, 2022, are reflected on the Statement of Operations as Custodian fees.

Sidley Austin LLP provides legal services to the Trust.

The Adviser has entered into an expense limitation agreement with the Fund until at least April 30, 2023. Under the terms of the agreement, the Adviser has agreed to waive fees or reimburse certain expenses to the extent that ordinary operating expenses incurred in any fiscal year exceed the expense limit for the Fund. Such excess amounts will be the liability of the Adviser. Acquired fund fees and expenses, interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund's business are excluded from the expense limits. As of December 31, 2022, the expense limit (excluding voluntary waivers) is 0.88%.

Under the terms of the expense limitation agreement, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period of up to three years (thirty-six (36) months) after the waiver or reimbursement took place, subject to the lesser of any operating expense limits in effect at the time of: (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount.

As of December 31, 2022, the following amounts are available to be repaid to the Adviser. The Fund has not recorded any amounts available to be repaid as a liability due to an assessment that such repayments are not probable at December 31, 2022.

---

| | | | |
|:---|:---|:---|:---|
| **Expires<br>2023** | **Expires<br>2024** | **Expires<br>2025** | **Total** |
| $140421 | $147496 | $96013 | $383930 |

---

The Adviser may voluntarily waive or reimburse additional fees to assist the Fund in maintaining competitive expense ratios. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the year ended December 31, 2022.

Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, administrator, fund accountant, sub-administrator, sub-fund accountant, custodian, legal counsel, and Distributor.

**5. Risks:**

The Fund may be subject to other risks in addition to these identified risks.

**<u>Equity Risk</u>** — The value of the equity securities in which the Fund invests may decline in response to developments affecting individual companies and/or general, economic conditions in the United States or abroad. A company's earnings or dividends may not increase as expected (or may decline) because of poor management, competitive pressures, reliance on particular suppliers or geographical regions, labor problems or shortages, corporate restructurings, fraudulent disclosures, man-made or natural disasters, military confrontations or wars, terrorism, public health crises, or other events, conditions, and factors. Price changes may be temporary or last for extended periods.

**<u>Small-Capitalization Stock Risk</u>** — Small-capitalization companies are subject to a number of risks not associated with larger, more established companies, potentially making their stock prices more volatile and increasing the risk of loss. Smaller companies may have limited markets, product lines, or

------

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

financial resources and lack management experience and may experience higher failure rates than larger companies.

**<u>Market Risk</u>** — Overall market risks may affect the value of the Fund. Domestic and international factors such as political events, war, terrorism, trade disputes, inflation rates, interest rate levels and other fiscal and monetary policy changes, cybersecurity incidents, pandemics and other public health crises, sanctions against a particular foreign country, its nationals, businesses or industries and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods or other catastrophes, may add to instability in global economies and markets generally, and may lead to increased market volatility. Global economies and financial markets are highly interconnected, which increases the possibility that conditions in one country or region might adversely affect issuers in another country or region. The impact of these and other factors may be short-term or may last for extended periods.

**6. Borrowing and Interfund Lending:**

**Line of Credit:**

The Victory Funds Complex participates in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 27, 2022, with a termination date of June 26, 2023. Under the agreement with Citibank, the Victory Funds Complex may borrow up to $600 million, of which $300 million is committed and $300 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory Floating Rate Fund, another series of the Victory Funds Complex, with Victory Floating Rate Fund paying the related commitment fees for that amount. The purpose of the Line of Credit is to meet temporary or emergency cash needs. For the year ended December 31, 2022, Citibank received an annual commitment fee of 0.15% on $300 million for providing the Line of Credit. Each fund in the Victory Funds Complex paid a pro-rata portion of the commitment fees plus any interest on amounts borrowed. For the period from January 1, 2022, through June 27, 2022, interest was based on the one-month London Interbank Offered Rate ("LIBOR") plus one percent. Effective with the renewal, for the period June 28, 2022, through December 31, 2022, interest was based on the one-month Secured Overnight Financing Rate (SOFR) plus 1.10 percent. The Fund is not expecting any material financial impact of transition from LIBOR to SOFR. Interest charged to the Fund during the period, if applicable, is reflected on the Statement of Operations under Line of credit fees.

The Fund had no borrowings under the Line of Credit agreement during the year ended December 31, 2022.

**Interfund Lending:**

The Trust and the Adviser rely on an exemptive order granted by the SEC in March 2017 (the "Order"), permitting the establishment and operation of an Interfund Lending Facility (the "Facility"). The Facility allows the Fund to directly lend and borrow money to or from any other fund in the Victory Funds Complex that is permitted to participate in the Facility, relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are allowed for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. As a Borrower, interest charged to the Fund, if any, during the period, is reflected on the Statement of Operations under Interfund lending fees. As a Lender, interest earned by the Fund, if any, during the period, is reflected on the Statement of Operations under Interfund lending.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Borrower <br>or Lender** | **Amount <br>Outstanding at<br>December 31, 2022** | **Average<br>Borrowing\*** | **Days<br>Borrowing <br>Outstanding** | **Average <br>Interest <br>Rate\*** | **Maximum<br>Borrowing<br>During<br>the Period** |
| Borrower | $— | $906000 | 3 | 4.85% | $906000 |

---

\* For the year ended December 31, 2022, based on the number of days borrowings were outstanding.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

**7. Federal Income Tax Information:**

The Fund intends to distribute any net investment income annually. Distributable net realized gains, if any, are declared and paid at least annually.

The amounts of dividends from net investment income and distributions from net realized gains (collectively, distributions to shareholders) are determined in accordance with federal income tax regulations, which may differ from GAAP. To the extent these "book/tax" differences are permanent in nature (e.g., net operating loss and distribution reclassification), such amounts are reclassified within the components of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales) do not require reclassification. To the extent dividends and distributions exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. Net investment losses incurred by the Fund may be reclassified as an offset to capital on the accompanying Statement of Assets and Liabilities.

As of December 31, 2022, on the Statement of Assets and Liabilities, as a result of permanent book-to-tax differences, reclassification adjustments were as follows:

---

| | |
|:---|:---|
| **Total <br>Accumulated<br>Earnings/(Loss)** | **Capital** |
| $444568 | $(444568) |

---

The tax character of distributions paid during the tax years ended, as noted below, were as follows (total distributions paid may differ from the Statements of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid).

---

| | | | |
|:---|:---|:---|:---|
| **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |
| **Distributions<br>Paid From:** | | **Distributions<br>Paid From:** | |
| **Net<br>Long-Term<br>Capital Gains** |<br>**Total <br>Distributions<br>Paid** | **Net<br>Long-Term<br>Capital Gains** |<br>**Total <br>Distributions<br>Paid** |
| $18459749 | $18459749 | $8854544 | $8854544 |

---

As of December 31, 2022, the components of accumulated earnings/(loss) on a tax basis were as follows:

---

| | | |
|:---|:---|:---|
| **Accumulated <br>Capital and <br>Other Losses** | **Unrealized <br>Appreciation <br>(Depreciation)\*** | **Total <br>Accumulated <br>Earnings (Loss)** |
| $(22837624) | $(4362806) | $(27200430) |

---

\* The difference between the book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to tax deferral of losses on wash sales.

As of December 31, 2022, the Fund had net capital loss carryforwards as shown in the table below. It is unlikely that the Board will authorize a distribution of capital gains realized in the future until the capital loss carryforwards have been used.

---

| | | |
|:---|:---|:---|
| **Short-Term<br>Amount** | **Long-Term<br>Amount** | **Total** |
| $20688753 | $2148871 | $22837624 |

---

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Notes to Financial Statements —** *continued*<br> December 31, 2022 |

---

As of December 31, 2022, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation (depreciation) for investments were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Cost of <br>Investments <br>for Federal <br>Tax Purposes** | **Net Gross <br>Unrealized <br>Appreciation** | **Gross <br>Unrealized <br>Depreciation** | **Net <br>Unrealized <br>Appreciation <br>(Depreciation)** |
| $73932159 | $4810185 | $(9172991) | $(4362806) |

---

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Shareholders and Board of Trustees of Victory Variable Insurance Funds

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities, including the schedule of portfolio investments, of Victory RS Small Cap Growth Equity VIP Series (the "Fund"), a series of Victory Variable Insurance Funds, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the related notes, and the financial highlights for each of the four years in the period then ended (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, the results of its operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

The Fund's financial highlights for the year ended December 31, 2018, were audited by other auditors whose report dated February 15, 2019, expressed an unqualified opinion on those financial highlights.

**Basis for Opinion**

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the investment companies advised by Victory Capital Management, Inc. since 2015.

![](j2325457_ja006.jpg)

COHEN & COMPANY, LTD.<br>Cleveland, Ohio<br>February 16, 2023

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information**<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Trustee and Officer Information**

**Board of Trustees:**

Overall responsibility for management of the Trust rests with the Board. The Trust is managed by the Board in accordance with the laws of the State of Delaware. There are currently nine Trustees, eight of whom are not "interested persons" of the Trust within the meaning of that term under the 1940 Act ("Independent Trustees") and one of whom is an "interested person" of the Trust within the meaning of that term under the 1940 Act ("Interested Trustee"). The Trustees, in turn, elect the officers of the Trust to actively supervise its day-to-day operations.

The following tables list the Trustees, their date of birth, their position with the Trust, their commencement of service, their principal occupations during the past five years, and any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended, or who file reports under that Act. Each Trustee oversees 6 portfolios in the Trust, 37 portfolios in Victory Portfolios, and 25 portfolios in Victory Portfolios II, each a registered investment company that, together with the Trust, comprise the Victory Fund Complex. David C. Brown is a Trustee of USAA Mutual Funds and oversees 45 portfolios of the USAA Mutual Funds Trust. Each Trustee's address is c/o Victory Portfolios, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. Each Trustee has an indefinite term.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position<br>Held with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation<br>During Past 5 Years** | **Other<br>Directorships<br>Held During<br>Past 5 Years** |
| ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** | ***Independent Trustees.*** |
| David Brooks Adcock, <br>October 1951 | Trustee | February 2005 | Consultant (since 2006). | Chairman, Board of Trustees, Turner Funds (December 2016-December 2017). |
| Nigel D. T. Andrews, <br>April 1947 | Trustee | August 2002 | Retired. | Director, Carlyle Secured Lending, Inc. (formerly TCG BDC I, Inc.) (since 2012); Director, Carlyle Credit Solutions, Inc. (formerly TCG BDC II, Inc.) (since 2017); Trustee, Carlyle Secured Lending III (since 2021). |
| E. Lee Beard,\* <br>August 1951 | Trustee | February 2005 | Retired. | None. |

---

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position<br>Held with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation<br>During Past 5 Years** | **Other<br>Directorships<br>Held During<br>Past 5 Years** |
| Dennis M. Bushe, <br>January 1944 | Trustee | July 2016 | Retired. | None. |
| John L. Kelly, <br>April 1953 | Chair and Trustee | February 2015 | Partner, McCarvill Capital Partners (September 2016- September 2017). | Director, Caledonia Mining Corporation (since May 2012). |
| David L. Meyer,<br>April 1957 | Trustee | December 2008 | Retired. | None. |
| Gloria S. Nelund, <br>May 1961 | Trustee | July 2016 | Chair, CEO and Co-Founder of TriLinc Global, LLC, an investment firm. | TriLinc Global Impact Fund, LLC (since 2012). |
| Timothy Pettee,<br>April 1958 | Advisory<br>Trustee | January 2023 | Chief Investment Officer, Hoya Capital Real Estate LLC (since February 2022); Chief Investment Officer, Sun America Asset Management Corp. (January 2003-July 2021). | None. |
| Leigh A. Wilson, <br>December 1944 | Trustee | February 1998 | Private Investor. | Chair (since 2013), Caledonia Mining Corporation. |
| ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** | ***Interested Trustee.*** |
| David C. Brown,\*\* <br>May 1972 | Trustee | May 2008 | Chief Executive Officer and Chairman (since 2013), the Adviser; Chief Executive Officer and Chairman (since 2013), Victory Capital Holdings, Inc.; Director (since 2013), Victory Capital Services, Inc.; Director (since 2019), Victory Capital Transfer Agency, Inc. | Trustee, USAA Mutual Funds Trust; Board Member, Victory Capital Services, Inc. |

---

\* The Board has designated Ms. Beard as its Audit Committee Financial Expert.

\*\* Mr. Brown is an "Interested Person" by reason of his relationship with the Adviser.

The Statement of Additional Information includes additional information about the Trustees of the Trust and is available, without charge, by calling 800-539-3863.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Officers:**

The officers of the Trust, their date of birth, their commencement of service, and their principal occupations during the past five years, are detailed in the following table. Each officer serves until the earlier of his or her resignation, removal, retirement, death, or the election of a successor. The mailing address of each officer of the Trust is 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. The officers of the Trust receive no compensation directly from the Trust for performing the duties of their offices.

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| | | | |
|:---|:---|:---|:---|
| **Name and Date of Birth** | **Position with<br>the Trust** | **Date<br>Commenced<br>Service** | **Principal Occupation During Past 5 Years** |
| Christopher K. Dyer, <br>February 1962 | President | February 2006 | Director of Mutual Fund Administration, the Adviser (since 2004); Chief Operating Officer, Victory Capital Services, Inc. (since 2020); Vice President, Victory Capital Transfer Agency, Inc. (since 2019). |
| Scott A. Stahorsky, <br>July 1969 | Vice President | December 2014 | Manager, Fund Administration, the Adviser. (since 2015) |
| Thomas Dusenberry,<br>July 1977 | Secretary | May 2022 | Manager, Fund Administration, the Adviser (since 2022); Treasurer and Principal Financial Officer (2020-2022), Assistant Treasurer (2019), Salient MF Trust, Salient Midstream, MLP Fund and Forward Funds; Principal Financial Officer (2018-2021) and Treasurer (2020-2021), Salient Private Access Funds and Endowment PMF Funds; Senior Vice President of Fund Accounting and Operations, Salient Partners (2020-2022); Director of Fund Operations, Salient Partners (2016-2019). |
| Allan Shaer, <br>March 1965 | Treasurer | May 2017 | Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc. (since 2016). |
| Christopher A. Ponte, <br>March 1984 | Assistant Treasurer | December 2017 | Manager, Fund Administration, the Adviser (since 2017); Chief Financial Officer, Victory Capital Services, Inc. (since 2018). |
| Sean Fox,<br>September 1976 | Chief Compliance<br>Officer | June 2022 | Sr. Compliance Officer, the Adviser (since 2019); Compliance Officer, the Adviser (2015-2019). |
| Charles Booth,<br>April 1960 | Anti-Money Laundering Compliance Officer and Identity Theft Officer | May 2015 | Director, Regulatory Administration and CCO Support Services, Citi Fund Services Ohio, Inc. (since 2007). |
| Jay G. Baris, <br>January 1954 | Assistant Secretary | February 1998 | Partner, Sidley Austin LLP (since 2020); Partner, Shearman & Sterling LLP (2018-2020). |

---

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Proxy Voting and Portfolio Holdings Information**

**Proxy Voting:**

Information regarding the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-539-3863. The information is also included in the Fund's Statement of Additional Information, which is available on the SEC's website at sec.gov.

Information relating to how the Fund voted proxies relating to portfolio securities held during the most recent 12 months ended June 30 is available on the SEC's website at sec.gov.

**Availability of Schedules of Portfolio Investments:**

The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarter of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's website at sec.gov.

**Expense Example**

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2022, through December 31, 2022.

The Actual Expense figures in the table below provide information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

The Hypothetical Expense figures in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

Please note the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical expenses in the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Beginning<br>Account Value<br>7/1/22** | **Actual<br>Ending<br>Account Value<br>12/31/22** | **Hypothetical<br>Ending<br>Account Value<br>12/31/22** | **Actual<br>Expenses Paid<br>During Period<br>7/1/22-12/31/22\*** | **Hypothetical<br>Expenses Paid <br>During Period<br>7/1/22-12/31/22\*** | **Annualized<br>Expense Ratio<br>During Period<br>7/1/22-12/31/22** |
| $1000.00 | $1004.30 | $1020.77 | $4.45 | $4.48 | 0.88% |

---

\* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 184/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Additional Federal Income Tax Information**

For the year ended December 31, 2022, the Fund designated long-term capital gain distributions in the amount of $18,459,749.

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| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

**Considerations of the Board in Continuing the Investment Advisory Agreement (the "Agreement")**

The Board approved the Agreement on behalf of the Fund at a meeting, which was called for that purpose, on December 6, 2022. The Board also considered information relating to the Fund and the Agreement provided throughout the year and, more specifically, at the meetings on October 18, 2022 and December 6, 2022. In considering whether to approve the Agreement, the Board requested, and the Adviser provided, information that the Board believed to be reasonably necessary to reach its conclusions.

The Board, including the Independent Trustees, evaluated this information along with other information obtained throughout the year and was advised by legal counsel to the Fund and independent legal counsel to the Independent Trustees. In addition, the Independent Trustees considered a past review of their overall process for conducting the annual review of the Fund's advisory arrangements by a consultant retained through their counsel.

The Board considered the Fund's advisory fee, expense ratio and investment performance as significant factors in determining whether the Agreement should be continued. In considering whether the compensation paid to the Adviser was fair and reasonable, the Board also evaluated, among other things, the following factors:

• The requirements of the Fund for the services provided by the Adviser;

• The nature, quality and extent of the services provided and expected to be provided;

• The performance of the Fund as compared to comparable funds;

• The fees payable for the services and whether the fee arrangements provided for economies of scale that would benefit Fund shareholders as the Fund grows (acknowledging that economies of scale can be complex to assess and typically are not directly measurable);

• Whether the fee would be sufficient to enable the Adviser to attract and retain experienced personnel and continue to provide quality services to the Fund;

• The fees paid by other clients of the Adviser whose accounts are managed in a similar investment style and any differences in the services provided to the other clients compared to those provided to the Fund;

• The total expenses of the Fund;

• Management's commitment to operating the Fund at competitive expense levels;

• The profitability of the Adviser (as reflected by comparing fees earned against an estimate of the Adviser's costs) with respect to the Adviser's relationship with the Fund;

• Research and other service benefits received by the Adviser obtained through payment of client commissions for securities transactions;

• Other benefits received by the Adviser, and its affiliates, including revenues paid to the Adviser, or its affiliates, by the Fund for administration and fund accounting services, and distribution;

• The capabilities and financial condition of the Adviser;

• Current economic and industry trends; and

• The historical relationship between the Fund and the Adviser.

The Board reviewed the Fund's current management fee, comprised of the advisory fee plus the administrative services fee paid to the Adviser, in the context of the Adviser's profitability with respect to the Fund. The Board retained an independent, third-party consultant to provide comparative information about fees, expenses and performance, and to design and maintain a database of relevant information designed to assist the Board in retrieving and analyzing comparative information. The Board met with the consultant to review its inputs and methodologies, among other things. The Board compared the Fund's total operating expense ratio on a net and gross basis with a universe of comparable mutual funds compiled by the consultant and a peer group of funds with similar investment strategies selected by that consultant from the universe. The Board reviewed the factors and methodology used by the consultant in the selection of the Fund's peer group, including the consultant's selection of a broad universe of funds, the more specific universe of comparable funds, and peer groups of funds with comparable investment strategies and asset levels, among other factors. The Board also reviewed any changes to the consultant's methodology as compared to the prior year, including those resulting from the Adviser's input, if any. The Board also reviewed fees and other information related to the Adviser's management of similarly managed institutional or private accounts, and the differences in the services provided to the other

------

---

| | |
|:---|:---|
| Victory Variable Insurance Funds | **Supplemental Information —** *continued*<br> December 31, 2022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(Unaudited)*

accounts, to the extent applicable. The Board noted that the advisory fee arrangements for the Fund do not include breakpoints, which would be a structure that results in reduced fees as a fund grows. The Board also considered the Adviser's commitment to limit expenses as discussed in more detail below.

The Board also reviewed the compliance and administrative services provided to the Fund by the Adviser and its affiliates, including the Adviser's oversight of the Fund's day-to-day operations and oversight of Fund accounting, assistance in meeting legal and regulatory requirements, and other services necessary for the operation of the Fund and the Trust.

The Board reviewed the Fund's performance over one-, three-, five- and ten-year periods against the performance of the Fund's selected peer group and benchmark index. The Board recognized that the performance of the Fund and the peer group funds are net of expenses, while the performance of the benchmark index reflects gross returns.

The Board reviewed various other specific factors with respect to the Fund, as described below. In their deliberations, the Trustees did not rank the importance of any particular information or factor considered and each Trustee may have attributed different weights to various factors.

The Board concluded that the Fund's gross annual management fee was reasonable as compared to the median gross management fee charged to the funds in the Fund's peer group. The Board noted that the Fund's net annual expense ratio, taking into account any shareholder servicing or distribution fees, was reasonable as compared to the median expense ratio for the peer group. The Board considered the Adviser's contractual agreement to waive its fees and reimburse expenses for a specified period of time, as described in the Fund's prospectus.

The Board then compared the Fund's performance for the one-, three-, five- and ten-year periods ended June 30, 2022, to that of the median performance of the Fund's peer group and benchmark index for the same periods and considered the fact that the Fund underperformed the benchmark index for the one-, three- and five-year periods, outperformed the benchmark index for the ten-year period, and underperformed the peer group median for all of the periods reviewed. The Board discussed with management the Fund's underperformance and expense profile, including and any steps by the Adviser that had been or could be taken to enhance performance in the future.

Having considered, among other things: (1) that the Fund's management fee was within the ranges of advisory fees charged to comparable mutual funds; (2) that the Fund's total expense ratio was reasonable; (3) the Adviser's willingness to limit the expenses for a period of time would provide stability to the Fund's expenses during that period; and (4) the performance of the Fund, the Board concluded that the Agreement continued to be in the best interests of the Fund's shareholders.

**Conclusion**

Based on its review of the information requested and provided, and following extended discussions, the Board determined that the Agreement, on behalf of the Fund, was consistent with the best interests of the Fund and its shareholders, and the Board unanimously approved the Agreement, on behalf of the Fund, for an additional annual period on the basis of the foregoing review and discussions and the following considerations, among others:

• The fairness and reasonableness of the investment advisory fee payable to the Adviser under the Agreement in light of the investment advisory services provided, the costs of these services, the profitability of the Adviser's relationship with the Fund and the comparability of the fee paid to the fees paid by other investment companies;

• The nature, quality and extent of the investment advisory services provided by the Adviser;

• The Adviser's entrepreneurial commitment to the management of the Fund and the creation of a broad-based family of funds, which entails a substantial commitment of the Adviser's resources to the successful operation of the Fund;

• The Adviser's representations regarding its staffing and capabilities to manage the Fund, including the retention of personnel with relevant portfolio management experience;

• The Adviser's efforts to enhance investment results by, among other things, developing and supporting quality portfolio management teams; and

• The overall high quality of the personnel, operations, financial condition, investment management capabilities, methodologies and performance of the Adviser.

------

**Privacy Policy**

**Protecting the Privacy of Information**

The Trust respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain personal information about you. This is the information we collect from you on applications or other forms, and from the transactions you make with us or third parties. It may include your name, address, social security number, account transactions and balances, and information about investment goals and risk tolerance.

We do not disclose any information about you or about former customers to anyone except as permitted or required by law. Specifically, we may disclose the information we collect to companies that perform services on our behalf, such as the transfer agent that processes shareholder accounts and printers and mailers that assist us in the distribution of investor materials. We may also disclose this information to companies that perform marketing services on our behalf. This allows us to continue to offer you Victory investment products and services that meet your investing needs, and to effect transactions that you request or authorize. These companies will use this information only in connection with the services for which we hired them. They are not permitted to use or share this information for any other purpose.

To protect your personal information internally, we permit access only by authorized employees and maintain physical, electronic, and procedural safeguards to guard your personal information.\*

\* You may have received communications regarding information about privacy policies from other financial institutions which gave you the opportunity to "opt-out" of certain information sharing with companies which are not affiliated with that financial institution. The Trust does not share information with other companies for purposes of marketing solicitations for products other than the Trust. Therefore, the Trust does not provide opt-out options to their shareholders.

------

Victory Funds<br>P.O. Box 182593<br>Columbus, Ohio 43218-2593

![](j2325457_za007.jpg)

Visit our website at: Call Victory at: <br> vcm.com 800-539-FUND (800-539-3863)

VVIF-RS-SCGEVIP-AR (12/22)

------

**Item 2. Code of Ethics.**

(a) The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This code of ethics is included as an Exhibit.

(b) During the period covered by the report, with respect to the registrant's code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions; there have been no amendments to, not any waivers granted from, a provision that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item 2.

**Item 3. Audit Committee Financial Experts.**

 

(a)(1) The registrant's board of directors has determined that the registrant has at least one audit committee financial expert serving on its audit committee.

(a)(2) The audit committee financial expert is E. Lee Beard, who is "independent" for purposes of this Item 3 of Form N-CSR.

 

**Item 4. Principal Accountant Fees and Services.**

 ****

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| <u>(a) Audit Fees(1)</u> | $105150 | $145250 |
| <u>(b) Audit-Related Fees(2)</u> | 0 | 0 |
| <u>(c) Tax Fees(3)</u> | 0 | 0 |
| <u>(d) All Other Fees(4)</u> | 0 | 0 |

---

 

&nbsp;&nbsp;&nbsp;&nbsp;(1) Audit fees include amounts related to the audit of the Registrant's annual financial statements,
security counts and services normally provided by the accountant in connection with statutory and regulatory filings. Audit fees billed
were for professional services provided by Cohen & Company, Ltd. for audit compliance, audit advice and audit planning.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Represents the fee for assurance and related services by Cohen & Company, Ltd. reasonably related
to the performance of the audit of the Registrant's financial statements that was not reported under (a) of this item.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Represents the aggregate tax fee billed for professional services rendered by Cohen & Company, Ltd.
for tax compliance, tax advice and tax planning. Such tax services included the review of income and excise tax returns for the Registrant.

&nbsp;&nbsp;&nbsp;&nbsp;(4) For fiscal years ended December 31, 2022 and December 31, 2021, there were no fees billed for professional
services rendered by Cohen & Company, Ltd. to the Registrant, other than the services reported in (a) through (c) of this item.

(e)(1) The Registrant's Audit Committee must pre-approve non-audit services to be provided by the principal accountant and the fees charged for these services. The Committee may delegate authority to one or more Committee members to pre-approve these services, subject to subsequent review and approval by the Committee.

(e)(2) There were no services performed under Rule 2.01 (c)(7)(i)(C)

(f) Not applicable.

(g) ---

| | |
|:---|:---|
| 2022 | $0 |
| 2021 | $0 |

---

(h) The Registrant's Audit Committee has evaluated the non-audit services that the principal accountant provided to the registrant's investment adviser (and the adviser's relevant affiliates), which services the Committee did not pre-approve, and has concluded that the provision of those services was compatible with maintaining the accountant's independence.

**Item 5. Audit Committee of Listed Registrants.**

Not applicable.

**Item 6. Investments.**

(a) Not applicable.

(b) Not applicable.

**Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.**

Not applicable.

**Item 8. Portfolio Managers of Closed-End Management Investment Companies.**

Not applicable.

**Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.**

Not applicable.

**Item 10. Submission of Matters to a Vote of Security Holders.**

Not applicable.

**Item 11. Controls and Procedures.**

(a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

**Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.**

(a)(1) Not applicable.

(a)(2) Not applicable.

(a)(3) Not applicable.

(a)(4) Not applicable.

(b) Not applicable.

**Item 13. Exhibits.**

[(a)(1) The code of ethics that is the subject of the disclosure required by Item 2 is attached hereto.](tm232545d1_ex99-codeeth.htm)

[(a)(2) Certifications pursuant to Rule 30a-2(a) are attached hereto.](tm232545d1_ex99-cert.htm)

(a)(3) Not applicable.

[(b) Certifications pursuant to Rule 30a-2(b) are furnished herewith.](tm232545d1_ex99-906cert.htm)

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Victory
 Variable Insurance Funds

---

| | |
|:---|:---|
| By (Signature and Title)\* | /s/ Allan Shaer |
|  | Allan Shaer, Principal Financial Officer |

---

Date <u>February 21, 2023</u>

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| By (Signature and Title)\* | /s/ Christopher K. Dyer |
|  | Christopher K. Dyer, Principal Executive Officer |

---

Date <u>February 21, 2023</u>

---

| | |
|:---|:---|
| By (Signature and Title)\* | /s/ Allan Shaer |
|  | Allan Shaer, Principal Financial Officer |

---

Date <u>February 21, 2023</u>

## Ex-99.Codeeth

**Exhibit 99.CODEETH**

**VICTORY PORTFOLIOS**

**VICTORY PORTFOLIOS II**

**VICTORY VARIABLE INSURANCE FUNDS**

**CODE OF CONDUCT**

**FOR PRINCIPAL EXECUTIVE OFFICER**

**AND PRINCIPAL FINANCIAL OFFICER**

**I.** **Covered Officers/Purpose of the Code** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** This Code of Conduct (the "Code") applies to the Principal Executive Officer and Principal Financial Officer of Victory Portfolios, Victory Portfolios II and Victory Variable Insurance Funds (each a "Trust" and, collectively, the "Trusts") (the "Covered Officers"), each of whom is set forth in Exhibit A, for the purpose of promoting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Honest and
 ethical conduct, including the ethical handling of actual or apparent conflicts of interest
 between personal and professional relationships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Full, fair,
 accurate, timely and understandable disclosure in reports and documents that a registrant
 files with, or submits to, the Securities and Exchange Commission ("SEC") and
 in other public communications made by the Trusts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Compliance
 with applicable laws and governmental rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The prompt
 internal reporting of violations of the Code to an appropriate person or persons identified
 in the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Accountability
 for adherence to the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

**II.** **Covered Officers Should Handle Ethically Any Actual or Apparent Conflicts of Interest** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Overview.** A "conflict of interest" occurs when a Covered Officer's private interest
 interferes with the interests of, or his or her service to, the Trusts. For example, a conflict
 of interest would arise if a Covered Officer, or a member of his family, receives improper
 personal benefits as a result of his or her position with the Trusts.

Certain conflicts of interest that could arise out of the relationships between Covered Officers and the Trusts already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Trusts because of their status as "affiliated persons" of the Trusts. The Trusts' and their investment adviser's compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts may arise or result from the contractual relationship between the Trusts and the investment adviser and the administrator, whose officers or employees also serve as Covered Officers. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Trusts or for the adviser or the administrator, or for both), be involved in establishing policies and implementing decisions that will have different effects on the adviser, the administrator and the Trusts. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the adviser, the administrator and the Trusts and is consistent with the performance by the Covered Officers of their duties as officers of the Trusts. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by each Trust's Board of Trustees (the "Board") that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act or the Investment Advisers Act. Section C describes the types of conflicts of interest that are covered under this Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Obligations of Covered Officers.** Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Not use his
 personal influence or personal relationships improperly to influence investment decisions
 or financial reporting by the Trusts whereby the Covered Officer would benefit personally
 to the detriment of the Trusts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Not cause
 the Trusts to take action, or fail to take action, for the individual personal benefit of
 the Covered Officer rather than the benefit of the Trusts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Report at
 least annually outside business affiliations or other relationships (*e.g.,* officer,
 director, governor, trustee, part-time employment) other than his or her relationship to
 the Trusts, the investment adviser and the administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Conflicts of interest.** When a Covered Person becomes aware of a situation that could involve a conflict of interest, or that could reasonably be considered an appearance of a conflict of interest, the Covered Person should disclose this matter to the Chief Compliance Officer. For purposes of this Code, the Chief Compliance Officer shall be the Chief Compliance

Officer of Victory Capital Management Inc. ("VCM"). Examples of these include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Service as
 a director on the board of any public or private company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The receipt,
 as an officer of the Trusts, of any gift in excess of $100;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The receipt
 of any entertainment from any company with which the Trusts have current or prospective business
 dealings, unless such entertainment is business-related, reasonable in cost, appropriate
 as to time and place, and not so frequent as to raise any question of impropriety;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Any ownership
 interest in, or any consulting or employment relationship with, any of the Trusts'
 service providers, other than their investment adviser, principal underwriter, administrator
 or any affiliated person thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. A direct or
 indirect financial interest in commissions, transaction charges or spreads paid by the Trusts
 for effecting portfolio transactions or for selling or redeeming shares other than an interest
 arising from the Covered Officer's employment, such as compensation or equity ownership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Conflicts of interest not specifically enumerated.** It is impractical to attempt to list in this Code all possible situations that could result in a conflict of interest. If a proposed transaction, interest, personal activity, or investment raises any concerns, questions or doubts, a Covered Officer should consult with the Chief Compliance Officer before engaging in such transaction or investment or pursuing such interest or activity. The Chief Compliance Officer shall review the facts and circumstances of the actual or potential conflict of interest in accordance with Section IV of these Procedures.

**III.** **Disclosure and Compliance** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** Each Covered Officer should familiarize himself or herself with the disclosure requirements generally applicable to the Trusts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Trusts to others, whether within or outside the Trusts, including to the Trusts' Trustees and auditors, and to governmental regulators and self-regulatory organizations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** Each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Trusts, the adviser and the administrator with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Trusts file with, or submit to, the SEC and in other public communications made by the Trusts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

**IV.** **Reporting and Accountability** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Responsibilities and conduct.** Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Upon adoption
 of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing
 to the appropriate Board that he or she has received, read, and understands the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Annually thereafter
 affirm to the appropriate Board that he or she has complied with the requirements of the
 Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Not retaliate
 against any other Covered Officer or any employee of the Trusts or their affiliated persons
 for reports of potential violations that are made in good faith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Notify the
 Chief Compliance Officer promptly if he or she knows of any violation of this Code. Failure
 to do so is itself a violation of this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Chief Compliance Officer.** The Chief Compliance Officer is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. Based on its review, the Chief Compliance Officer shall advise the Covered Officer that the proposed transaction, investment, interest or activity: (i) would not violate this Code; (ii) would not violate this Code only if conducted in a particular manner and/or subject to certain conditions or safeguards; or (iii) would violate the Code and is, therefore, prohibited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Waivers.** A Covered Officer may request a waiver from a provision of this Code if there is a reasonable likelihood that a contemplated action would not involve an actual conflict of interest that this Code is designed to prevent. The Audit and Risk Oversight Committee of the Board (the "Committee") shall review and act upon any request for a waiver from any provision of the Code. The Committee shall disclose any waiver from a provision of the Code to the extent required by SEC rules or any other policy of the Trusts or VCM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Enforcing the Code of Conduct.** The Trusts will adhere to the following procedures in investigating and enforcing this Code:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Chief
 Compliance Officer will take all appropriate action to investigate any potential violations
 reported to him or her;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If, after
 such investigation, the Chief Compliance Officer believes that no violation has occurred,
 no further action is required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Any matter
 that the Chief Compliance Officer believes is a violation shall be reported to the Committee;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. If the Committee
 concurs that a violation has occurred, it will inform the Board and make a recommendation
 of appropriate courses of action. The Board will consider and take appropriate action regarding
 the violation. The Board may among other things, notify VCM, the Trust's administrator,
 or their Boards of Directors; recommend the assessment of a monetary penalty against the
 Covered Person; issue a formal written reprimand to, or recommend the dismissal of, the Covered
 Officer; require additional training by the violator; or recommend modifications to the Trust's
 policies and procedures.

**V.** **Other Policies and Procedures** 

This Code shall be the sole code of conduct adopted by the Trusts for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies relating to that section. Insofar as other policies or procedures of the Trusts, the Trusts' investment adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Codes of Ethics under Rule 17j-1 under the Investment Company Act, and any insider trading policies are separate policies of the Trusts, VCM, any sub-adviser or the principal underwriter that apply to the Covered Officers and others, and are not part of this Code.

**VI.** **Amendments** 

Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Board, including a majority of the Trustees who are not "interested persons" (as defined in the Investment Company Act) (the "Independent Trustees"). Any changes to this Code will, to the extent required, will be disclosed as provided by SEC rules.

**VII.** **Confidentiality** 

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than officers and Trustees of the Trust, the Trusts' investment adviser, administrator or sub-administrator, counsel to the Trusts or counsel to the Independent Trustees.

**VIII.** **Internal Use** 

The Code is intended solely for the internal use by the Trusts and does not constitute an admission, by or on behalf of the Trusts, as to any fact, circumstance, or legal conclusion.

Adopted: August 5, 2003

Adopted: May 1, 2015 Victory Portfolios II

Amended: February 22, 2012 <br> August 20, 2014

**Exhibit A**

**<u>Persons Covered by this Code of Conduct</u>**

Victory Portfolios, Victory Portfolios II and Victory Variable Insurance Funds

Principal Executive Officer: Christopher K. Dyer, President

Principal Financial Officer: Allan Shaer, Treasurer

As of December 5, 2017

**Exhibit B**

**<u>Acknowledgement</u>**

Pursuant to the requirements of the Code of Conduct adopted by Victory Portfolios, Victory Portfolios II and Victory Variable Insurance Funds (the "Code"), I hereby acknowledge and affirm that I have received, read and understand the Code and agree to adhere to and abide by the letter and spirit of its provisions.

---

| | |
|:---|:---|
| Signature: | /s/ Christopher K. Dyer |

---

Print Name: Christopher K. Dyer

Date: <u>02/14/2023</u>

**Exhibit B**

**<u>Acknowledgement</u>**

Pursuant to the requirements of the Code of Conduct adopted by Victory Portfolios, Victory Portfolios II and Victory Variable Insurance Funds (the "Code"), I hereby acknowledge and affirm that I have received, read and understand the Code and agree to adhere to and abide by the letter and spirit of its provisions.

---

| | |
|:---|:---|
| Signature: | /s/ Allan Shaer |

---

Print Name: Allan Shaer

Date: <u>02/14/2023</u>

**Exhibit C**

**<u>Annual Certification</u>**

Pursuant to the requirements of the Code of Conduct adopted by Victory Portfolios, Victory Portfolios II and Victory Variable Insurance Funds (the "Code"), I hereby acknowledge and affirm that since the date of the last annual certification given pursuant to the Code, I have complied with all requirements of the Code.

---

| | |
|:---|:---|
| Signature: | /s/ Allan Shaer |

---

Print Name: Allan Shaer

Date: <u>02/14/2023</u>

**Exhibit C**

**<u>Annual Certification</u>**

Pursuant to the requirements of the Code of Conduct adopted by Victory Portfolios, Victory Portfolios II and Victory Variable Insurance Funds (the "Code"), I hereby acknowledge and affirm that since the date of the last annual certification given pursuant to the Code, I have complied with all requirements of the Code.

---

| | |
|:---|:---|
| Signature: | /s/ Christopher K. Dyer |

---

Print Name: Christopher K. Dyer

Date: <u>02/14/2023</u>

## Ex-99.Cert

**Exhibit 99.CERT**

<u>CERTIFICATIONS</u>

I, Christopher K. Dyer, certify that:

1. I have reviewed this report on Form N-CSR of Victory Variable
Insurance Funds (the "registrant");

2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the financial condition, results of operations, changes
in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of,
and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible
for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of
1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant
and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused
such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which
this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or
caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures,
as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's
internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed
to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent
functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| February 21, 2023 | /s/ Christopher K. Dyer |
| Date | Christopher K. Dyer |
|  | Principal Executive Officer |

---

<u>CERTIFICATIONS</u>

I, Allan Shaer, certify that:

1. I have reviewed this report on Form N-CSR of Victory Variable
Insurance Funds (the "registrant");

2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the financial condition, results of operations, changes
in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of,
and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible
for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of
1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant
and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused
such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which
this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or
caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of
a date within 90 days prior to the filing date of this report, based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's
internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed
to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| February 21, 2023 | /s/ Allan Shaer |
| Date | Allan Shaer |
|  | Principal Financial Officer |

---

## Exhibit 99.906

**Exhibit 99.906CERT**

This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1350, and accompanies the report on Form N-CSR for the period ended December 31, 2022 of Victory Variable Insurance Funds (the "Registrant").

I, Christopher K. Dyer, the Principal Executive Officer of the Registrant, certify that, to the best of my knowledge:

1. the Form N-CSR fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange
Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

---

| |
|:---|
| February 21, 2023 |
| Date |
| /s/ Christopher K. Dyer |
| Christopher K. Dyer |
| Principal Executive Officer |

---

This certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of Form N-CSR or as a separate disclosure document. A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request.

This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1350, and accompanies the report on Form N-CSR for the period ended December 31, 2022 of Victory Variable Insurance Funds (the "Registrant").

I, Allan Shaer, the Principal Financial Officer of the Registrant, certify that, to the best of my knowledge:

1. the Form N-CSR fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange
Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

2. the information contained in the Form N-CSR fairly presents, in all material respects, the financial condition
and results of operations of the Registrant.

---

| |
|:---|
| February 21, 2023 |
| Date |
| /s/ Allan Shaer |
| Allan Shaer |
| Principal Financial Officer |

---

This certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of Form N-CSR or as a separate disclosure document. A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request.