UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05583

Franklin Templeton Variable Insurance Products Trust

(Exact name of registrant as specified in charter)

One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)

Alison Baur, One Franklin Parkway, San Mateo, CA  94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code:(650)312-2000

Date of fiscal year end: 12/31

Date of reporting period: 6/30/22

Item 1. Reports to Stockholders.

a.)

The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)

b.)

Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.

Not Applicable

.

Semiannual

Report

Franklin

Templeton

Variable

Insurance

Products

Trust

June

30,

2022

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

MASTER

CLASS

-

1

Franklin

Templeton

Variable

Insurance

Products

Trust

Semiannual

Report

Table

of

Contents

Important

Notes

to

Performance

Information

...........

i

Fund

Summaries

Franklin

Allocation

VIP

Fund

...................

FA-1

Franklin

Global

Real

Estate

VIP

Fund

.............

FGR-1

Franklin

Growth

and

Income

VIP

Fund

............

FGI-1

Franklin

Income

VIP

Fund

.....................

FI-1

Franklin

Large

Cap

Growth

VIP

Fund

.............

FLG-1

Franklin

Mutual

Global

Discovery

VIP

Fund

.........

MGD-1

Franklin

Mutual

Shares

VIP

Fund

................

MS-1

Franklin

Rising

Dividends

VIP

Fund

..............

FRD-1

Franklin

Small

Cap

Value

VIP

Fund

..............

FSV-1

Franklin

Small-Mid

Cap

Growth

VIP

Fund

..........

FSC-1

Franklin

Strategic

Income

VIP

Fund

..............

FSI-1

*Prospectus

Supplement

....................

FSI-6

Franklin

U.S.

Government

Securities

VIP

Fund

.......

FUS-1

Franklin

VolSmart

Allocation

VIP

Fund

............

FVA-1

Templeton

Developing

Markets

VIP

Fund

..........

TD-1

Templeton

Foreign

VIP

Fund

...................

TF-1

*Prospectus

Supplements

....................

TF-7

*Statement

of

Additional

Information

Supplement

..

TF-28

Templeton

Global

Bond

VIP

Fund

................

TGB-1

Templeton

Growth

VIP

Fund

...................

TG-1

*Prospectus

Supplement

....................

TG-7

Index

Descriptions

..............................

I-1

Shareholder

Information

..........................

SI-1

*Not

part

of

the

semi

annual

report.

Retain

for

your

records

.

i

Semiannual

Report

Important

Notes

to

Performance

Information

Performance

data

is

historical

and

cannot

predict

or

guarantee

future

results.

Principal

value

and

investment

return

will

fluctuate

with

market

conditions,

and

you

may

have

a

gain

or

loss

when

you

withdraw

your

money.

Inception

dates

of

the

funds

may

have

preceded

the

effective

dates

of

the

subaccounts,

contracts

or

their

availability

in

all

states.

When

reviewing

the

index

comparisons,

please

keep

in

mind

that

indexes

have

a

number

of

inherent

performance

differentials

over

the

funds.

First,

unlike

the

funds,

which

must

hold

a

minimum

amount

of

cash

to

maintain

liquidity,

indexes

do

not

have

a

cash

component.

Second,

the

funds

are

actively

managed

and,

thus,

are

subject

to

management

fees

to

cover

salaries

of

securities

analysts

or

portfolio

managers

in

addition

to

other

expenses.

Indexes

are

unmanaged

and

do

not

include

any

commissions

or

other

expenses

typically

associated

with

investing

in

securities.

Third,

indexes

often

contain

a

different

mix

of

securities

than

the

fund

to

which

they

are

compared.

Additionally,

please

remember

that

indexes

are

simply

a

measure

of

performance

and

cannot

be

invested

in

directly.

FA-1

Semiannual

Report

Franklin

Allocation

VIP

Fund

This

semi

annual

report

for

Franklin

Allocation

VIP

Fund

covers

the

period

ended

June

30,

2022

.

Class

1

Performance

Summary

as

of

June

30,

2022

The

Fund’s

Class

1

Shares

posted

a

-16.62%

total

return*

for

the

six-month

period

ended

June

30,

2022.

*On

May

1,

2019,

the

Fund’s

investment

strategies

changed.

Performance

prior

to

May

1,

2019,

is

attributable

to

the

Fund’s

performance

before

the

strategy

change.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

FA-2

Semiannual

Report

Franklin

Allocation

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation,

with

income

as

a

secondary

goal.

Under

normal

market

conditions,

the

Fund

allocates

approximately

60%

of

its

assets

to

the

equity

asset

class

and

40%

of

its

assets

to

the

fixed

income

asset

class

by

allocating

the

Fund’s

assets

among

various

sleeves

(investment

strategies).

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund

is

actively

managed

and

could

experience

losses

if

the

investment

manager’s

or

subadvisors’

judgment

about

markets,

future

volatility,

interest

rates,

industries,

sectors

and

regions

or

the

attractiveness,

relative

values,

liquidity,

effectiveness

or

potential

appreciation

of

particular

investments

made

for

the

Fund’s

portfolio

prove

to

be

incorrect.

The

investment

manager’s

allocation

of

Fund

assets

among

different

asset

classes

and

strategy

sleeves

may

not

prove

beneficial

in

light

of

subsequent

market

events.

There

can

be

no

guarantee

that

these

techniques

or

the

investment

manager’s

or

subadvisors’

investment

decisions

will

produce

the

desired

results.

To

the

extent

the

Fund

invests

in

underlying

investment

companies,

including

exchange-traded

funds,

the

Fund’s

performance

is

related

to

the

performance

of

the

underlying

investment

companies

held

by

it.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

When

interest

rates

rise,

debt

security

prices

generally

fall.

The

opposite

is

also

generally

true:

debt

security

prices

rise

when

interest

rates

fall.

Derivatives

involve

costs

and

can

create

economic

leverage

in

the

Fund’s

portfolio

which

may

result

in

significant

volatility

and

cause

the

Fund

to

participate

in

losses

(as

well

as

gains)

in

an

amount

that

exceeds

the

Fund’s

initial

investment.

Investing

in

foreign

securities

typically

involves

more

risks

than

investing

in

U.S.

securities,

and

includes

risks

associated

with

internal

and

external

political

and

economic

developments,

trading

practices,

availability

of

information,

limited

markets

and

currency

exchange

rate

fluctuations

and

policies.

The

risks

of

foreign

investments

may

be

greater

in

developing

or

emerging

market

countries.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues,

and

can,

therefore,

fall

dramatically

if

the

company

fails

to

meet

those

projections.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia's

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia's

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

benchmark,

the

Standard

&

Poor’s

500

®

Index

(S&P

500

®

),

posted

a

-19.96%

total

return.

1

The

Fund’s

other

benchmarks

performed

as

follows:

the

Bloomberg

U.S.

Aggregate

Bond

Index

posted

a

-10.35%

total

return,

the

MSCI

World

ex

USA

Index-NR

posted

a

-18.76%

total

return,

and

the

Linked

Allocation

VIP

Fund

Benchmark

posted

a

-0.78%

total

return.

1,2

Portfolio

Composition

6/30/22

%

of

Total

Net

Assets

Common

Stocks

56.2%

U.S.

Government

and

Agency

Securities

19.2%

Corporate

Bonds

10.5%

Mortgage-Backed

Securities

3.9%

Management

Investment

Companies

2.1%

Foreign

Government

and

Agency

Securities

1.9%

Other

2.2%

Short-Term

Investments

&

Other

Net

Assets

4.0%

1.

Source:

Morningstar.

2.

Source:

FactSet.

The

Linked

Allocation

VIP

Fund

benchmark

was

calculated

internally

and

was

composed

of

40%

S&P

500,

40%

Bloomberg

U.S.

Aggregate

Bond

Index

and

20%

MSCI

World

ex

USA

Index-NR.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

Franklin

Allocation

VIP

Fund

FA-3

Semiannual

Report

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

-20.18%

total

return

for

the

six

months

ended

June

30,

2022.

1

The

combination

of

resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

many

countries.

This

inflationary

pressure

led

many

of

the

world’s

central

banks

to

adopt

less

accommodative

stances

regarding

monetary

policy.

The

Chinese

government’s

imposition

of

new

lockdowns

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

pressured

Asian

and

global

emerging

market

stocks.

Russia’s

invasion

of

Ukraine

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

constrained

companies

that

do

business

with

Russia

and

disrupted

global

economic

activity

and

commodity

markets.

In

the

U.S.,

gross

domestic

product

(GDP)

growth

turned

negative

in

the

first

quarter

of

2022

as

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

the

economy.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings,

and

anticipated

instituting

further

interest

rate

increases

at

future

meetings.

Economic

growth

in

the

eurozone

maintained

a

slow

rate

in

the

first

quarter

of

2022

as

the

war

in

Ukraine

disrupted

supply

chains,

sent

commodity

prices

higher,

and

weakened

the

economic

outlook.

The

war

in

Ukraine

contributed

to

record

high

inflation

across

the

eurozone

as

commodity

and

oil

prices

soared.

The

European

Central

Bank

indicated

it

will

raise

interest

rates

in

July,

the

first

increase

in

more

than

a

decade,

to

fight

growing

inflation.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-20.79%

total

return

for

the

six

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-17.69%

total

return

for

the

six-month

period.

1

While

many

Asian

countries

experienced

improving

economic

conditions,

Japan’s

GDP

contracted

in

the

first

quarter

of

2022

after

having

returned

to

growth

in

the

fourth

quarter

of

2021.

Although

China’s

economy

continued

to

grow,

it

was

pressured

by

coronavirus-related

restrictions

and

government

measures

to

limit

real

estate

speculation.

Unexpected

regulatory

changes

by

the

Chinese

government,

which

negatively

impacted

education-

and

technology-

related

businesses,

and

investor

concerns

about

the

solvency

of

several

large

Chinese

property

developers

further

pressured

Chinese

stocks.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-17.63%

total

return

for

the

six

months

under

review.

1

Following

Russia’s

invasion

of

Ukraine,

climbing

food

and

energy

prices

kindled

inflationary

pressures

and

raised

concerns

over

the

possibility

of

government

debt

defaults

in

some

countries.

Meanwhile,

some

countries,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

have

benefited

from

the

rising

commodity

prices.

Investment

Strategy

The

Fund

seeks

to

achieve

its

investment

goals

by

allocating

its

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

through

a

variety

of

investment

strategies

or

sleeves

managed

by

the

investment

manager

or

its

affiliates,

which

include

ClearBridge

Large

Cap

Growth

Strategy,

ClearBridge

Large

Cap

Value

Strategy,

Franklin

Emerging

Markets

Core

Equity

Strategy,

Franklin

International

Core

Equity

Strategy,

Franklin

International

Growth

Strategy,

Franklin

U.S.

Core

Equity

Strategy,

Franklin

U.S.

Smart

Beta

Equity

Strategy,

Templeton

Foreign

Strategy,

Brandywine

Global

Opportunities

Bond

Strategy,

Franklin

Investment

Grade

Corporate

Strategy,

Franklin

U.S.

Core

Bond

Strategy,

Franklin

U.S.

Treasury

Securities

Strategy

and

Western

Asset

Core

Bond

Strategy.

The

Fund

is

structured

as

a

multi-manager

fund

(meaning

the

Fund’s

assets

are

managed

by

multiple

subadvisors),

with

the

investment

manager

having

overall

responsibility

for

the

Fund’s

investments.

The

investment

manager

allocates

assets

among

various

asset

classes

and

strategy

sleeves

to

seek

to

diversify

the

Fund’s

portfolio,

to

add

incremental

Geographic

Composition

6/30/22

%

of

Total

Net

Assets

North

America

73.9%

Europe

13.2%

Asia

5.8%

Latin

America

&

Caribbean

1.3%

Other

1.8%

Short-Term

Investments

&

Other

Net

Assets

4.0%

Franklin

Allocation

VIP

Fund

FA-4

Semiannual

Report

return

and

to

reduce

the

Fund’s

risk

of

being

significantly

impacted

by

changes

in

a

specific

asset

class

or

by

changing

market

conditions.

The

investment

manager

may,

at

times,

implement

a

risk

overlay

strategy,

which

seeks

to

neutralize

certain

market

risks

that

may

exist

in

the

Fund

primarily

through

the

use

of

equity

and

interest

rate/bond

futures.

Allocations

to

the

individually

managed

sleeves

typically

will

not

exceed

20%,

but

will

vary

with

market

conditions;

however,

under

normal

market

conditions,

no

sleeve

constitutes

a

majority

of

the

Fund’s

assets.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

the

underlying

sleeves

and

their

investments

in

domestic

and

foreign

equity

securities,

fixed

income

securities,

equity

index

and

U.S.

Treasury

futures,

and

short-term

investments

and

other

net

assets.

During

the

six

months

under

review,

on

the

equity

side,

the

Franklin

International

Growth

Strategy

and

the

Franklin

International

Core

Equity

Strategy

underperformed

the

Fund’s

foreign

equity

benchmark,

the

MSCI

World

ex

USA

Index-NR,

while

the

Templeton

Foreign

Strategy

performed

better

than

the

index.

The

Franklin

Growth

Strategy

underperformed

the

Fund’s

domestic

equity

benchmark,

the

S&P

500,

while

the

Franklin

Rising

Dividends

Strategy,

the

Franklin

U.S.

Core

Equity

Strategy

and

the

Franklin

U.S.

Smart

Beta

Equity

Strategy

outperformed

the

index.

During

the

period,

the

Fund’s

management

team

exited

the

Franklin

Rising

Dividends

and

U.S.

Smart

Beta

strategies,

and

initiated

positions

in

the

ClearBridge

Large

Cap

Growth

and

ClearBridge

Large

Cap

Value

strategies.

Three

of

those

four

strategies

performed

better

than

the

domestic

equity

benchmark;

the

exception

was

ClearBridge

Large

Cap

Growth.

On

the

fixed

income

side,

the

Western

Asset

Core

Bond

Strategy

and

the

Brandywine

Global

Opportunity

Bond

Strategy,

both

new

positions

during

the

period,

underperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

U.S.

Aggregate

Bond

Index.

The

Franklin

Investment

Grade

Corporate

Strategy

and

the

Franklin

U.S.

Core

Bond

Strategy

also

underperformed

the

benchmark.

The

Templeton

Global

Bond

VIP

Fund

–

Class

1

and

the

Franklin

U.S.

Treasury

Securities

Strategy

outperformed

the

index.

The

Fund’s

risk

overlay

strategy,

which

utilized

U.S.

Treasury

and

equity

index

futures

to

seek

to

neutralize

certain

market

risks

that

we

believed

existed

in

the

Fund

during

the

period,

outperformed

both

the

Fund’s

fixed

income

benchmark

and

the

Fund’s

equity

benchmarks.

Thank

you

for

your

participation

in

Franklin

Allocation

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

U.S.

Treasury

Notes

14.9%

Diversified

Financial

Services,

United

States

U.S.

Treasury

Bonds

4.3%

Diversified

Financial

Services,

United

States

Schwab

U.S.

TIPS

ETF

2.1%

Capital

Markets,

United

States

Microsoft

Corp.

2.0%

Software,

United

States

FNMA,

30

Year

1.9%

Thrifts

&

Mortgage

Finance,

United

States

Apple,

Inc.

1.4%

Technology

Hardware,

Storage

&

Peripherals,

United

States

Alphabet,

Inc.

1.3%

Interactive

Media

&

Services,

United

States

Amazon.com,

Inc.

1.1%

Internet

&

Direct

Marketing

Retail,

United

States

Bank

of

America

Corp.

0.9%

Banks,

United

States

UnitedHealth

Group,

Inc.

0.8%

Health

Care

Providers

&

Services,

United

States

Class

1

Fund

Expenses

Franklin

Allocation

VIP

Fund

FA-5

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

1

$1,000

$833.80

$2.56

$1,022.00

$2.82

0.56%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Allocation

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-6

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$6.02

$5.49

$6.86

$6.37

$7.44

$7.13

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.04

0.06

0.10

0.11

c

0.23

c

0.21

c

Net

realized

and

unrealized

gains

(losses)

(1.04)

0.58

0.45

1.11

(0.89)

0.63

Total

from

investment

operations

........

(1.00)

0.64

0.55

1.22

(0.66)

0.84

Less

distributions

from:

Net

investment

income

..............

(0.10)

(0.11)

(0.12)

(0.27)

(0.24)

(0.22)

Net

realized

gains

.................

(0.51)

—

(1.80)

(0.46)

(0.17)

(0.31)

Total

distributions

...................

(0.61)

(0.11)

(1.92)

(0.73)

(0.41)

(0.53)

Net

asset

value,

end

of

period

..........

$4.41

$6.02

$5.49

$6.86

$6.37

$7.44

Total

return

d

.......................

(16.62)%

11.81%

12.19%

20.04%

(9.34)%

12.17%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.60%

0.60%

0.60%

0.44%

0.12%

0.12%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.56%

f

0.56%

f

0.55%

f

0.39%

0.10%

0.10%

Net

investment

income

...............

1.46%

1.04%

1.79%

1.55%

3.13%

2.75%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$710

$841

$811

$842

$984

$1,047

Portfolio

turnover

rate

................

73.06%

54.07%

99.02%

170.79%

2.23%

1.28%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

.........................

73.06%

54.07%

91.62%

g

158.11%

g

2.23%

1.28%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Prod-

ucts

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

See

Note

1(e)

regarding

mortgage

dollar

rolls.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-7

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$5.96

$5.43

$6.81

$6.32

$7.39

$7.08

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.03

0.05

0.09

0.09

c

0.21

c

0.18

c

Net

realized

and

unrealized

gains

(losses)

(1.03)

0.58

0.43

1.11

(0.89)

0.64

Total

from

investment

operations

........

(1.00)

0.63

0.52

1.20

(0.68)

0.82

Less

distributions

from:

Net

investment

income

..............

(0.08)

(0.10)

(0.10)

(0.25)

(0.22)

(0.20)

Net

realized

gains

.................

(0.51)

—

(1.80)

(0.46)

(0.17)

(0.31)

Total

distributions

...................

(0.59)

(0.10)

(1.90)

(0.71)

(0.39)

(0.51)

Net

asset

value,

end

of

period

..........

$4.37

$5.96

$5.43

$6.81

$6.32

$7.39

Total

return

d

.......................

(16.76)%

11.68%

11.74%

19.86%

(9.65)%

11.98%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.85%

0.85%

0.85%

0.69%

0.37%

0.37%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.81%

f

0.81%

f

0.80%

f

0.64%

0.35%

0.35%

Net

investment

income

...............

1.20%

0.80%

1.54%

1.30%

2.88%

2.50%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$237,960

$302,084

$398,620

$403,040

$390,300

$480,402

Portfolio

turnover

rate

................

73.06%

54.07%

99.02%

170.79%

2.23%

1.28%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

.........................

73.06%

54.07%

91.62%

g

158.11%

g

2.23%

1.28%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Prod-

ucts

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

See

Note

1(e)

regarding

mortgage

dollar

rolls.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-8

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$6.17

$5.62

$6.97

$6.46

$7.53

$7.21

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.03

0.04

0.08

0.08

c

0.20

c

0.18

c

Net

realized

and

unrealized

gains

(losses)

(1.07)

0.60

0.46

1.13

(0.89)

0.64

Total

from

investment

operations

........

(1.04)

0.64

0.54

1.21

(0.69)

0.82

Less

distributions

from:

Net

investment

income

..............

(0.08)

(0.09)

(0.09)

(0.24)

(0.21)

(0.19)

Net

realized

gains

.................

(0.51)

—

(1.80)

(0.46)

(0.17)

(0.31)

Total

distributions

...................

(0.59)

(0.09)

(1.89)

(0.70)

(0.38)

(0.50)

Net

asset

value,

end

of

period

..........

$4.54

$6.17

$5.62

$6.97

$6.46

$7.53

Total

return

d

.......................

(16.92)%

11.54%

11.75%

19.56%

(9.58)%

11.78%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.95%

0.95%

0.95%

0.79%

0.47%

0.47%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.91%

f

0.91%

f

0.90%

f

0.74%

0.45%

0.45%

Net

investment

income

...............

1.11%

0.70%

1.44%

1.20%

2.78%

2.40%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$336,206

$418,751

$409,388

$406,693

$393,385

$528,862

Portfolio

turnover

rate

................

73.06%

54.07%

99.02%

170.79%

2.23%

1.28%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

.........................

73.06%

54.07%

91.62%

g

158.11%

g

2.23%

1.28%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Prod-

ucts

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

See

Note

1(e)

regarding

mortgage

dollar

rolls.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Allocation

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-9

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

56.2%

Aerospace

&

Defense

2.2%

BAE

Systems

plc

.....................................

United

Kingdom

128,120

$

1,296,873

BWX

Technologies,

Inc.

................................

United

States

3,401

187,361

Dassault

Aviation

SA

...................................

France

4,924

768,909

General

Dynamics

Corp.

................................

United

States

1,562

345,593

Lockheed

Martin

Corp.

.................................

United

States

3,931

1,690,173

MTU

Aero

Engines

AG

.................................

Germany

6,500

1,190,688

Northrop

Grumman

Corp.

...............................

United

States

5,601

2,680,471

Raytheon

Technologies

Corp.

............................

United

States

43,768

4,206,542

a

Rolls-Royce

Holdings

plc

...............................

United

Kingdom

424,017

431,435

12,798,045

Air

Freight

&

Logistics

0.7%

Deutsche

Post

AG

.....................................

Germany

5,313

200,589

DSV

A/S

............................................

Denmark

5,700

801,535

United

Parcel

Service,

Inc.,

B

............................

United

States

17,383

3,173,093

4,175,217

Airlines

0.1%

a

Delta

Air

Lines,

Inc.

....................................

United

States

4,117

119,269

a

International

Consolidated

Airlines

Group

SA

.................

United

Kingdom

196,163

258,008

377,277

Auto

Components

0.5%

a

Aptiv

plc

............................................

United

States

7,527

670,430

Bridgestone

Corp.

.....................................

Japan

4,400

160,392

Continental

AG

.......................................

Germany

8,481

595,243

a

Faurecia

SE

.........................................

France

33,112

663,545

Valeo

..............................................

France

27,169

529,389

2,618,999

Automobiles

0.6%

Bayerische

Motoren

Werke

AG

...........................

Germany

7,758

601,376

Honda

Motor

Co.

Ltd.

..................................

Japan

27,500

662,933

a

Rivian

Automotive,

Inc.,

A

...............................

United

States

2,200

56,628

Stellantis

NV

.........................................

United

States

66,543

826,075

a

Tesla,

Inc.

...........................................

United

States

1,989

1,339,433

Thor

Industries,

Inc.

...................................

United

States

1,669

124,724

3,611,169

Banks

2.9%

Bank

Leumi

Le-Israel

BM

...............................

Israel

29,281

261,975

Bank

of

America

Corp.

.................................

United

States

113,341

3,528,305

Bank

OZK

...........................................

United

States

2,058

77,237

Barclays

plc

.........................................

United

Kingdom

140,843

263,327

Comerica,

Inc.

.......................................

United

States

3,308

242,741

Commonwealth

Bank

of

Australia

.........................

Australia

6,843

427,558

DBS

Group

Holdings

Ltd.

...............................

Singapore

36,700

785,257

FinecoBank

Banca

Fineco

SpA

...........................

Italy

90,110

1,080,959

FNB

Corp.

..........................................

United

States

10,692

116,115

ING

Groep

NV

.......................................

Netherlands

97,371

959,215

JPMorgan

Chase

&

Co.

.................................

United

States

22,608

2,545,887

Kasikornbank

PCL

....................................

Thailand

119,392

510,277

KB

Financial

Group,

Inc.

................................

South

Korea

19,180

721,530

KeyCorp

............................................

United

States

7,229

124,556

Lloyds

Banking

Group

plc

...............................

United

Kingdom

1,333,680

686,074

Mitsubishi

UFJ

Financial

Group,

Inc.

.......................

Japan

39,400

210,753

Pinnacle

Financial

Partners,

Inc.

..........................

United

States

1,049

75,853

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-10

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Banks

(continued)

Popular,

Inc.

.........................................

United

States

2,335

$

179,631

Shinhan

Financial

Group

Co.

Ltd.

.........................

South

Korea

23,391

675,674

Standard

Chartered

plc

.................................

United

Kingdom

154,167

1,163,677

Sumitomo

Mitsui

Financial

Group,

Inc.

......................

Japan

23,900

710,299

Sumitomo

Mitsui

Financial

Group,

Inc.,

ADR

.................

Japan

98,900

583,510

Truist

Financial

Corp.

..................................

United

States

1,664

78,923

US

Bancorp

.........................................

United

States

15,528

714,598

Wintrust

Financial

Corp.

................................

United

States

934

74,860

16,798,791

Beverages

1.0%

Anheuser-Busch

InBev

SA/NV

...........................

Belgium

2,303

124,015

Brown-Forman

Corp.,

B

................................

United

States

4,091

287,024

b

Budweiser

Brewing

Co.

APAC

Ltd.,

144A,

Reg

S

..............

China

77,100

231,352

Constellation

Brands,

Inc.,

A

.............................

United

States

1,404

327,216

a

Monster

Beverage

Corp.

................................

United

States

16,777

1,555,228

PepsiCo,

Inc.

........................................

United

States

15,498

2,582,897

Pernod

Ricard

SA

.....................................

France

3,269

604,327

Suntory

Beverage

&

Food

Ltd.

...........................

Japan

1,600

60,410

5,772,469

Biotechnology

1.1%

AbbVie,

Inc.

.........................................

United

States

6,211

951,277

Amgen,

Inc.

.........................................

United

States

5,399

1,313,577

CSL

Ltd.

............................................

Australia

8,072

1,498,876

a

Genmab

A/S

.........................................

Denmark

3,600

1,168,026

a

Mirati

Therapeutics,

Inc.

................................

United

States

600

40,278

a

Moderna

,

Inc.

........................................

United

States

1,678

239,702

a

Neurocrine

Biosciences,

Inc.

.............................

United

States

909

88,609

a

PTC

Therapeutics,

Inc.

.................................

United

States

800

32,048

a

Regeneron

Pharmaceuticals,

Inc.

.........................

United

States

1,701

1,005,512

a

Vertex

Pharmaceuticals,

Inc.

.............................

United

States

484

136,386

6,474,291

Building

Products

0.3%

Allegion

plc

..........................................

United

States

1,357

132,850

a

Builders

FirstSource

,

Inc.

...............................

United

States

5,443

292,289

Cie

de

Saint-Gobain

...................................

France

10,691

461,928

Owens

Corning

.......................................

United

States

3,050

226,646

Trane

Technologies

plc

.................................

United

States

2,656

344,935

1,458,648

Capital

Markets

1.8%

3i

Group

plc

.........................................

United

Kingdom

20,638

279,678

Bank

of

New

York

Mellon

Corp.

(The)

......................

United

States

21,298

888,340

BlackRock,

Inc.

.......................................

United

States

365

222,300

Blackstone,

Inc.

......................................

United

States

1,000

91,230

Carlyle

Group,

Inc.

(The)

................................

United

States

4,692

148,549

Charles

Schwab

Corp.

(The)

.............................

United

States

29,749

1,879,542

CME

Group,

Inc.

......................................

United

States

1,395

285,557

Deutsche

Boerse

AG

...................................

Germany

8,603

1,444,605

Evercore

,

Inc.,

A

......................................

United

States

1,140

106,715

FactSet

Research

Systems,

Inc.

..........................

United

States

1,232

473,790

Intercontinental

Exchange,

Inc.

...........................

United

States

3,555

334,312

Intermediate

Capital

Group

plc

...........................

United

Kingdom

46,000

735,307

Macquarie

Group

Ltd.

..................................

Australia

2,000

227,728

MarketAxess

Holdings,

Inc.

..............................

United

States

300

76,803

Morgan

Stanley

.......................................

United

States

2,908

221,182

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-11

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Capital

Markets

(continued)

MSCI,

Inc.

...........................................

United

States

263

$

108,395

S&P

Global,

Inc.

......................................

United

States

3,903

1,315,545

SBI

Holdings,

Inc.

.....................................

Japan

4,500

87,912

SEI

Investments

Co.

...................................

United

States

3,295

177,996

Singapore

Exchange

Ltd.

...............................

Singapore

7,000

47,689

Tradeweb

Markets,

Inc.,

A

...............................

United

States

3,100

211,575

UBS

Group

AG

.......................................

Switzerland

42,837

692,643

10,057,393

Chemicals

1.7%

Air

Products

and

Chemicals,

Inc.

..........................

United

States

7,134

1,715,584

BASF

SE

...........................................

Germany

1,897

82,994

CF

Industries

Holdings,

Inc.

.............................

United

States

6,421

550,472

b

Covestro

AG,

144A,

Reg

S

..............................

Germany

18,596

646,156

Ecolab,

Inc.

..........................................

United

States

1,621

249,245

Huntsman

Corp.

......................................

United

States

2,644

74,958

Koninklijke

DSM

NV

...................................

Netherlands

6,400

916,760

Linde

plc

............................................

United

Kingdom

1,885

541,994

LyondellBasell

Industries

NV,

A

...........................

United

States

7,924

693,033

Mosaic

Co.

(The)

.....................................

United

States

3,749

177,065

Nissan

Chemical

Corp.

.................................

Japan

1,800

83,068

Nitto

Denko

Corp.

.....................................

Japan

6,800

439,733

PPG

Industries,

Inc.

...................................

United

States

8,733

998,531

Sherwin-Williams

Co.

(The)

..............................

United

States

2,130

476,928

Sika

AG

............................................

Switzerland

3,400

784,970

Symrise

AG

.........................................

Germany

9,000

981,541

Tosoh

Corp.

.........................................

Japan

8,800

109,441

Westlake

Corp.

.......................................

United

States

1,030

100,961

Yara

International

ASA

.................................

Brazil

1,197

50,158

9,673,592

Commercial

Services

&

Supplies

0.1%

Cintas

Corp.

.........................................

United

States

284

106,082

Dai

Nippon

Printing

Co.

Ltd.

.............................

Japan

2,100

45,164

Republic

Services,

Inc.

.................................

United

States

4,008

524,527

675,773

Communications

Equipment

0.6%

a

Arista

Networks,

Inc.

...................................

United

States

846

79,304

Cisco

Systems,

Inc.

...................................

United

States

42,295

1,803,459

Juniper

Networks,

Inc.

..................................

United

States

3,212

91,542

Motorola

Solutions,

Inc.

.................................

United

States

7,474

1,566,550

Telefonaktiebolaget

LM

Ericsson,

B

........................

Sweden

16,668

124,488

3,665,343

Construction

&

Engineering

0.1%

Kajima

Corp.

.........................................

Japan

22,100

253,365

Sinopec

Engineering

Group

Co.

Ltd.,

H

.....................

China

168,000

77,093

330,458

Construction

Materials

0.3%

CRH

plc

............................................

Ireland

14,992

517,331

James

Hardie

Industries

plc,

CDI

.........................

United

States

2,445

53,532

Martin

Marietta

Materials,

Inc.

............................

United

States

3,448

1,031,780

1,602,643

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-12

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Consumer

Finance

0.4%

American

Express

Co.

.................................

United

States

15,740

$

2,181,879

a

Credit

Acceptance

Corp.

................................

United

States

219

103,677

Synchrony

Financial

...................................

United

States

7,380

203,835

2,489,391

Containers

&

Packaging

0.0%

†

Packaging

Corp.

of

America

.............................

United

States

1,606

220,825

Distributors

0.0%

†

Genuine

Parts

Co.

....................................

United

States

853

113,449

Diversified

Financial

Services

0.5%

a

Berkshire

Hathaway,

Inc.,

B

..............................

United

States

8,773

2,395,205

EXOR

NV

...........................................

Netherlands

6,337

395,980

ORIX

Corp.

..........................................

Japan

4,200

70,378

Sofina

SA

...........................................

Belgium

451

92,442

Wendel

SE

..........................................

France

1,304

109,287

3,063,292

Diversified

Telecommunication

Services

0.5%

AT&T,

Inc.

...........................................

United

States

33,483

701,804

b

Cellnex

Telecom

SA,

144A,

Reg

S

.........................

Spain

22,000

856,159

Deutsche

Telekom

AG

..................................

Germany

6,132

121,955

Nippon

Telegraph

&

Telephone

Corp.

......................

Japan

36,400

1,045,695

2,725,613

Electric

Utilities

0.7%

American

Electric

Power

Co.,

Inc.

.........................

United

States

6,155

590,511

Edison

International

...................................

United

States

19,898

1,258,349

Elia

Group

SA/NV

.....................................

Belgium

1,493

212,027

Exelon

Corp.

.........................................

United

States

13,645

618,391

NextEra

Energy,

Inc.

...................................

United

States

5,392

417,664

NRG

Energy,

Inc.

.....................................

United

States

7,515

286,848

Power

Assets

Holdings

Ltd.

..............................

Hong

Kong

58,000

365,393

Red

Electrica

Corp.

SA

.................................

Spain

21,224

401,742

SSE

plc

............................................

United

Kingdom

4,745

93,629

4,244,554

Electrical

Equipment

0.5%

Acuity

Brands,

Inc.

....................................

United

States

1,073

165,285

AMETEK,

Inc.

........................................

United

States

1,618

177,802

a

Array

Technologies,

Inc.

................................

United

States

45,200

497,652

Eaton

Corp.

plc

.......................................

United

States

5,955

750,271

Emerson

Electric

Co.

..................................

United

States

3,581

284,833

Fuji

Electric

Co.

Ltd.

...................................

Japan

6,000

248,017

Mitsubishi

Electric

Corp.

................................

Japan

13,400

144,012

Vertiv

Holdings

Co.

....................................

United

States

62,237

511,588

2,779,460

Electronic

Equipment,

Instruments

&

Components

0.8%

Amphenol

Corp.,

A

....................................

United

States

7,466

480,661

a

Arrow

Electronics,

Inc.

.................................

United

States

2,096

234,941

Cognex

Corp.

........................................

United

States

787

33,463

Jabil,

Inc.

...........................................

United

States

4,310

220,715

Keyence

Corp.

.......................................

Japan

400

137,150

a

Keysight

Technologies,

Inc.

..............................

United

States

2,246

309,611

Kyocera

Corp.

........................................

Japan

4,400

235,165

Shimadzu

Corp.

......................................

Japan

1,500

47,534

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-13

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Electronic

Equipment,

Instruments

&

Components

(continued)

TE

Connectivity

Ltd.

...................................

Switzerland

23,758

$

2,688,218

Yokogawa

Electric

Corp.

................................

Japan

5,400

89,317

4,476,775

Energy

Equipment

&

Services

0.2%

SBM

Offshore

NV

.....................................

Netherlands

54,601

739,462

a

Tecnicas

Reunidas

SA

.................................

Spain

16,513

122,312

861,774

Entertainment

0.5%

a

CTS

Eventim

AG

&

Co.

KGaA

............................

Germany

17,200

907,244

a

Netflix,

Inc.

..........................................

United

States

3,022

528,457

Nintendo

Co.

Ltd.

.....................................

Japan

800

343,982

a

ROBLOX

Corp.,

A

.....................................

United

States

3,300

108,438

a

Sea

Ltd.,

ADR

........................................

Singapore

4,312

288,301

Square

Enix

Holdings

Co.

Ltd.

............................

Japan

1,200

53,254

a

Walt

Disney

Co.

(The)

..................................

United

States

6,074

573,386

World

Wrestling

Entertainment,

Inc.,

A

......................

United

States

1,339

83,674

2,886,736

Equity

Real

Estate

Investment

Trusts

(REITs)

1.0%

American

Tower

Corp.

..................................

United

States

5,626

1,437,949

Apartment

Income

REIT

Corp.

............................

United

States

2,445

101,712

Crown

Castle

International

Corp.

..........................

United

States

2,885

485,776

Dexus

..............................................

Australia

10,357

63,694

Equinix

,

Inc.

.........................................

United

States

952

625,483

Extra

Space

Storage,

Inc.

...............................

United

States

531

90,334

Goodman

Group

......................................

Australia

13,033

160,940

Medical

Properties

Trust,

Inc.

............................

United

States

8,596

131,261

Public

Storage

.......................................

United

States

4,804

1,502,067

Segro

plc

...........................................

United

Kingdom

53,112

633,935

Simon

Property

Group,

Inc.

..............................

United

States

765

72,614

Weyerhaeuser

Co.

....................................

United

States

14,878

492,759

5,798,524

Food

&

Staples

Retailing

0.5%

Albertsons

Cos.,

Inc.,

A

.................................

United

States

2,768

73,961

Coles

Group

Ltd.

......................................

Australia

10,496

129,177

Costco

Wholesale

Corp.

................................

United

States

385

184,523

Jeronimo

Martins

SGPS

SA

.............................

Portugal

4,762

103,227

Koninklijke

Ahold

Delhaize

NV

............................

Netherlands

20,655

537,603

Kroger

Co.

(The)

......................................

United

States

20,575

973,815

Sundrug

Co.

Ltd.

......................................

Japan

22,543

504,051

Walmart,

Inc.

........................................

United

States

800

97,264

2,603,621

Food

Products

0.6%

Archer-Daniels-Midland

Co.

.............................

United

States

4,664

361,926

Hershey

Co.

(The)

....................................

United

States

4,488

965,638

Lamb

Weston

Holdings,

Inc.

.............................

United

States

1,232

88,039

Nestle

SA

...........................................

United

States

10,788

1,261,022

Tyson

Foods,

Inc.,

A

...................................

United

States

6,683

575,139

b

WH

Group

Ltd.,

144A,

Reg

S

............................

Hong

Kong

397,500

307,657

3,559,421

Gas

Utilities

0.1%

National

Fuel

Gas

Co.

..................................

United

States

1,586

104,755

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-14

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Gas

Utilities

(continued)

Osaka

Gas

Co.

Ltd.

...................................

Japan

18,700

$

358,324

463,079

Health

Care

Equipment

&

Supplies

1.7%

Abbott

Laboratories

....................................

United

States

3,360

365,064

Alcon,

Inc.,

(CHF

Traded)

...............................

Switzerland

15,178

1,064,472

Alcon,

Inc.,

(USD

Traded)

...............................

Switzerland

10,122

707,427

Becton

Dickinson

and

Co.

...............................

United

States

4,048

997,954

BioMerieux

..........................................

France

1,437

140,898

Cochlear

Ltd.

........................................

Australia

6,900

947,388

a

Dexcom

,

Inc.

.........................................

United

States

6,716

500,544

a

Edwards

Lifesciences

Corp.

.............................

United

States

4,852

461,377

Fisher

&

Paykel

Healthcare

Corp.

Ltd.

......................

New

Zealand

6,734

83,883

a

Haemonetics

Corp.

....................................

United

States

2,524

164,514

a

Hologic

,

Inc.

.........................................

United

States

7,858

544,559

a

IDEXX

Laboratories,

Inc.

................................

United

States

1,988

697,251

a

Intuitive

Surgical,

Inc.

..................................

United

States

5,833

1,170,741

a

QuidelOrtho

Corp.

.....................................

United

States

1,550

150,629

Sonova

Holding

AG

....................................

Switzerland

1,466

468,580

Stryker

Corp.

........................................

United

States

3,302

656,867

Teleflex,

Inc.

.........................................

United

States

1,384

340,256

9,462,404

Health

Care

Providers

&

Services

1.8%

a

Centene

Corp.

.......................................

United

States

1,108

93,748

Cigna

Corp.

.........................................

United

States

358

94,340

CVS

Health

Corp.

.....................................

United

States

9,132

846,171

Elevance

Health,

Inc.

..................................

United

States

5,508

2,658,051

Fresenius

Medical

Care

AG

&

Co.

KGaA

....................

Germany

10,926

547,379

a

Guardant

Health,

Inc.

..................................

United

States

800

32,272

Laboratory

Corp.

of

America

Holdings

......................

United

States

1,010

236,704

McKesson

Corp.

......................................

United

States

3,321

1,083,343

a

Molina

Healthcare,

Inc.

.................................

United

States

289

80,807

Sonic

Healthcare

Ltd.

..................................

Australia

8,883

202,487

UnitedHealth

Group,

Inc.

................................

United

States

8,851

4,546,139

10,421,441

Health

Care

Technology

0.0%

†

a

Certara

,

Inc.

.........................................

United

States

600

12,876

a

Veeva

Systems,

Inc.,

A

.................................

United

States

1,192

236,064

248,940

Hotels,

Restaurants

&

Leisure

0.6%

a

Airbnb,

Inc.,

A

........................................

United

States

1,000

89,080

a

Booking

Holdings,

Inc.

.................................

United

States

971

1,698,269

Choice

Hotels

International,

Inc.

..........................

United

States

1,062

118,551

Compass

Group

plc

...................................

United

Kingdom

16,646

341,709

Domino's

Pizza,

Inc.

...................................

United

States

739

287,996

b

La

Francaise

des

Jeux

SAEM,

144A,

Reg

S

.................

France

4,623

160,523

a

Las

Vegas

Sands

Corp.

.................................

United

States

6,338

212,893

McDonald's

Corp.

.....................................

United

States

2,177

537,458

Yum!

Brands,

Inc.

.....................................

United

States

1,474

167,314

3,613,793

Household

Durables

0.2%

Barratt

Developments

plc

...............................

United

Kingdom

29,489

164,924

Gree

Electric

Appliances,

Inc.

of

Zhuhai,

A

...................

China

50,300

253,780

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-15

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Household

Durables

(continued)

a

NVR,

Inc.

...........................................

United

States

19

$

76,079

Persimmon

plc

.......................................

United

Kingdom

1,868

42,494

PulteGroup,

Inc.

......................................

United

States

1,905

75,495

Sekisui

House

Ltd.

....................................

Japan

10,200

179,032

Sony

Group

Corp.

.....................................

Japan

4,348

354,544

Taylor

Wimpey

plc

.....................................

United

Kingdom

47,621

67,822

1,214,170

Household

Products

0.2%

Colgate-Palmolive

Co.

.................................

United

States

10,220

819,031

Procter

&

Gamble

Co.

(The)

.............................

United

States

4,018

577,748

1,396,779

Independent

Power

and

Renewable

Electricity

Producers

0.1%

RWE

AG

............................................

Germany

2,900

107,255

Vistra

Corp.

..........................................

United

States

13,232

302,351

409,606

Industrial

Conglomerates

0.6%

3M

Co.

.............................................

United

States

2,635

340,995

CK

Hutchison

Holdings

Ltd.

..............................

United

Kingdom

142,500

966,714

Hitachi

Ltd.

..........................................

Japan

24,046

1,143,659

Honeywell

International,

Inc.

.............................

United

States

4,684

814,126

Siemens

AG

.........................................

Germany

3,019

310,328

3,575,822

Insurance

1.5%

AIA

Group

Ltd.

.......................................

Hong

Kong

80,146

875,715

American

Financial

Group,

Inc.

...........................

United

States

2,055

285,255

Assured

Guaranty

Ltd.

.................................

United

States

1,915

106,838

Chubb

Ltd.

..........................................

United

States

2,720

534,698

Dai-ichi

Life

Holdings,

Inc.

...............................

Japan

35,100

649,069

Marsh

&

McLennan

Cos.,

Inc.

............................

United

States

8,000

1,242,000

MetLife,

Inc.

.........................................

United

States

4,598

288,708

Progressive

Corp.

(The)

................................

United

States

9,634

1,120,145

Prudential

plc,

(GBP

Traded)

.............................

Hong

Kong

33,639

418,375

Prudential

plc,

(HKD

Traded)

.............................

Hong

Kong

7,550

91,956

Swiss

Life

Holding

AG

..................................

Switzerland

665

324,683

Tokio

Marine

Holdings,

Inc.

..............................

Japan

5,100

297,336

Travelers

Cos.,

Inc.

(The)

...............................

United

States

6,659

1,126,237

Unum

Group

.........................................

United

States

3,260

110,905

W

R

Berkley

Corp.

....................................

United

States

3,397

231,879

Zurich

Insurance

Group

AG

..............................

Switzerland

1,715

747,983

8,451,782

Interactive

Media

&

Services

1.8%

a

Alphabet,

Inc.,

A

......................................

United

States

2,750

5,992,965

a

Alphabet,

Inc.,

C

......................................

United

States

592

1,294,970

b

Auto

Trader

Group

plc,

144A,

Reg

S

.......................

United

Kingdom

18,854

127,669

a

Baidu,

Inc.,

ADR

......................................

China

1,985

295,229

a

Match

Group,

Inc.

.....................................

United

States

1,531

106,695

a

Meta

Platforms,

Inc.,

A

.................................

United

States

15,439

2,489,539

10,307,067

Internet

&

Direct

Marketing

Retail

1.6%

a

Alibaba

Group

Holding

Ltd.

..............................

China

58,593

835,847

a

Amazon.com,

Inc.

.....................................

United

States

55,926

5,939,900

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-16

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Internet

&

Direct

Marketing

Retail

(continued)

a,b

Delivery

Hero

SE,

144A,

Reg

S

...........................

South

Korea

1,617

$

61,000

a,b

Just

Eat

Takeaway.com

NV,

144A,

Reg

S

...................

United

Kingdom

13,847

217,574

a

MercadoLibre

,

Inc.

....................................

Brazil

1,200

764,244

a

Prosus

NV

..........................................

China

11,673

755,833

a

Vipshop

Holdings

Ltd.,

ADR

.............................

China

50,700

501,423

ZOZO,

Inc.

..........................................

Japan

6,100

110,345

9,186,166

IT

Services

2.4%

Accenture

plc,

A

......................................

United

States

903

250,718

a,b

Adyen

NV,

144A,

Reg

S

................................

Netherlands

736

1,062,095

a

Amadeus

IT

Group

SA

.................................

Spain

21,843

1,223,022

Amdocs

Ltd.

.........................................

United

States

3,885

323,659

Automatic

Data

Processing,

Inc.

..........................

United

States

567

119,093

Cognizant

Technology

Solutions

Corp.,

A

....................

United

States

2,389

161,234

a

DXC

Technology

Co.

...................................

United

States

23,000

697,130

Fidelity

National

Information

Services,

Inc.

...................

United

States

4,210

385,931

Fujitsu

Ltd.

..........................................

Japan

3,000

375,315

a

Gartner,

Inc.

.........................................

United

States

962

232,640

Genpact

Ltd.

.........................................

United

States

5,731

242,765

Jack

Henry

&

Associates,

Inc.

............................

United

States

2,297

413,506

Keywords

Studios

plc

..................................

Ireland

38,000

1,015,002

a

Marqeta

,

Inc.,

A

.......................................

United

States

2,300

18,653

Mastercard

,

Inc.,

A

....................................

United

States

3,748

1,182,419

a

Okta

,

Inc.

...........................................

United

States

1,000

90,400

Paychex,

Inc.

........................................

United

States

6,424

731,501

a

Paymentus

Holdings,

Inc.,

A

.............................

United

States

2,600

34,762

a

PayPal

Holdings,

Inc.

..................................

United

States

8,698

607,468

a

Shopify,

Inc.,

A

.......................................

Canada

16,000

499,840

a

Snowflake,

Inc.,

A

.....................................

United

States

1,500

208,590

Visa,

Inc.,

A

..........................................

United

States

20,954

4,125,633

14,001,376

Leisure

Products

0.0%

†

Shimano,

Inc.

........................................

Japan

500

84,213

Life

Sciences

Tools

&

Services

1.2%

a

10X

Genomics,

Inc.,

A

..................................

United

States

800

36,200

Agilent

Technologies,

Inc.

...............................

United

States

3,185

378,283

Danaher

Corp.

.......................................

United

States

2,987

757,264

Eurofins

Scientific

SE

..................................

Luxembourg

923

72,893

a

Evotec

SE

...........................................

Germany

38,000

921,031

a

Illumina,

Inc.

.........................................

United

States

1,446

266,585

a

Mettler

-Toledo

International,

Inc.

..........................

United

States

1,465

1,682,948

Sartorius

Stedim

Biotech

................................

France

657

207,285

Thermo

Fisher

Scientific,

Inc.

............................

United

States

3,293

1,789,021

a

Waters

Corp.

........................................

United

States

1,873

619,926

6,731,436

Machinery

1.3%

AGCO

Corp.

.........................................

United

States

742

73,235

Allison

Transmission

Holdings,

Inc.

........................

United

States

3,031

116,542

Atlas

Copco

AB,

B

.....................................

Sweden

43,275

362,580

CNH

Industrial

NV

.....................................

United

Kingdom

9,015

104,257

Deere

&

Co.

.........................................

United

States

8,721

2,611,678

Dover

Corp.

.........................................

United

States

1,100

133,452

Illinois

Tool

Works,

Inc.

.................................

United

States

8,171

1,489,165

Ingersoll

Rand,

Inc.

....................................

United

States

4,826

203,078

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-17

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Machinery

(continued)

Komatsu

Ltd.

........................................

Japan

12,100

$

269,383

Lincoln

Electric

Holdings,

Inc.

............................

United

States

1,381

170,360

Mitsubishi

Heavy

Industries

Ltd.

..........................

Japan

2,700

94,352

NGK

Insulators

Ltd.

....................................

Japan

3,600

48,492

Oshkosh

Corp.

.......................................

United

States

2,047

168,141

Otis

Worldwide

Corp.

..................................

United

States

10,609

749,738

a

Proterra

,

Inc.

.........................................

United

States

6,500

30,160

Snap-on,

Inc.

........................................

United

States

1,661

327,267

Stanley

Black

&

Decker,

Inc.

.............................

United

States

1,952

204,687

Techtronic

Industries

Co.

Ltd.

............................

Hong

Kong

12,000

125,305

Toyota

Industries

Corp.

.................................

Japan

2,550

158,089

Xylem,

Inc.

..........................................

United

States

2,400

187,632

7,627,593

Marine

0.0%

†

Nippon

Yusen

KK

.....................................

Japan

900

61,697

SITC

International

Holdings

Co.

Ltd.

.......................

China

60,000

170,650

232,347

Media

1.2%

a,b

Ascential

plc,

Reg

S

...................................

United

Kingdom

255,000

804,313

Cable

One,

Inc.

.......................................

United

States

261

336,513

a

Charter

Communications,

Inc.,

A

..........................

United

States

3,037

1,422,926

Comcast

Corp.,

A

.....................................

United

States

43,777

1,717,809

CyberAgent

,

Inc.

......................................

Japan

66,500

666,110

a

DISH

Network

Corp.,

A

.................................

United

States

51,155

917,209

a

Informa

plc

..........................................

United

Kingdom

76,988

497,308

a

Viaplay

Group

AB,

B

...................................

Sweden

34,000

698,363

7,060,551

Metals

&

Mining

0.5%

Anglo

American

plc

....................................

South

Africa

17,212

615,203

ArcelorMittal

SA

......................................

Luxembourg

18,349

411,464

BHP

Group

Ltd.

......................................

Australia

3,784

108,358

Fortescue

Metals

Group

Ltd.

.............................

Australia

10,458

125,764

Nucor

Corp.

.........................................

United

States

4,076

425,575

Rio

Tinto

Ltd.

........................................

Australia

4,421

315,412

South32

Ltd.

.........................................

Australia

108,716

294,608

Sumitomo

Metal

Mining

Co.

Ltd.

..........................

Japan

16,265

504,192

2,800,576

Multiline

Retail

0.1%

a

Dollar

Tree,

Inc.

......................................

United

States

495

77,146

Macy's,

Inc.

..........................................

United

States

8,617

157,863

Next

plc

............................................

United

Kingdom

1,847

131,929

Seria

Co.

Ltd.

........................................

Japan

14,048

249,714

616,652

Multi-Utilities

0.8%

DTE

Energy

Co.

......................................

United

States

5,833

739,333

E.ON

SE

............................................

Germany

76,106

641,016

National

Grid

plc

......................................

United

Kingdom

6,237

80,138

Sempra

Energy

.......................................

United

States

20,688

3,108,786

4,569,273

Oil,

Gas

&

Consumable

Fuels

2.4%

a

Aker

BP

ASA,

SDR

....................................

Norway

8,596

297,472

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-18

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Oil,

Gas

&

Consumable

Fuels

(continued)

APA

Corp.

...........................................

United

States

5,135

$

179,211

BP

plc

..............................................

United

Kingdom

411,922

1,933,860

Chevron

Corp.

.......................................

United

States

16,232

2,350,069

ConocoPhillips

.......................................

United

States

46,853

4,207,868

Continental

Resources,

Inc.

.............................

United

States

1,118

73,061

Devon

Energy

Corp.

...................................

United

States

1,277

70,375

EOG

Resources,

Inc.

..................................

United

States

2,898

320,055

Equinor

ASA

.........................................

Norway

12,389

431,721

Exxon

Mobil

Corp.

.....................................

United

States

7,564

647,781

Galp

Energia

SGPS

SA,

B

..............................

Portugal

37,722

441,364

Idemitsu

Kosan

Co.

Ltd.

................................

Japan

1,800

42,992

Lundin

Energy

AB

.....................................

Sweden

9,039

6,146

OMV

AG

............................................

Austria

1,457

68,521

Repsol

SA

...........................................

Spain

25,646

378,055

Shell

plc

............................................

Netherlands

65,833

1,714,193

TotalEnergies

SE

.....................................

France

11,064

582,348

Valero

Energy

Corp.

...................................

United

States

2,152

228,715

13,973,807

Paper

&

Forest

Products

0.0%

†

Louisiana-Pacific

Corp.

.................................

United

States

1,490

78,091

Personal

Products

0.2%

Estee

Lauder

Cos.,

Inc.

(The),

A

..........................

United

States

500

127,335

L'Oreal

SA

..........................................

France

2,814

976,990

a

Olaplex

Holdings,

Inc.

..................................

United

States

1,000

14,090

1,118,415

Pharmaceuticals

2.9%

Astellas

Pharma,

Inc.

..................................

Japan

9,500

148,189

AstraZeneca

plc

......................................

United

Kingdom

5,199

685,749

AstraZeneca

plc,

ADR

..................................

United

Kingdom

5,614

370,917

Bayer

AG

...........................................

Germany

18,134

1,082,845

a

Catalent

,

Inc.

........................................

United

States

6,689

717,663

Eli

Lilly

&

Co.

........................................

United

States

3,062

992,792

GSK

plc

............................................

United

States

61,364

1,322,275

Hikma

Pharmaceuticals

plc

..............................

Jordan

39,000

769,366

Ipsen

SA

............................................

France

1,880

177,996

Johnson

&

Johnson

...................................

United

States

12,140

2,154,971

Merck

&

Co.,

Inc.

.....................................

United

States

21,943

2,000,543

Novo

Nordisk

A/S,

B

...................................

Denmark

12,223

1,355,589

Orion

OYJ,

B

........................................

Finland

5,114

228,864

Pfizer,

Inc.

...........................................

United

States

26,071

1,366,903

Roche

Holding

AG

....................................

United

States

4,681

1,565,103

Roche

Holding

AG,

BR

.................................

United

States

146

56,511

Sanofi

SA

...........................................

France

2,887

291,129

Zoetis,

Inc.

..........................................

United

States

6,691

1,150,116

16,437,521

Professional

Services

0.7%

Adecco

Group

AG

.....................................

Switzerland

19,463

663,497

a

Clarivate

plc

.........................................

United

States

69,000

956,340

a

CoStar

Group,

Inc.

....................................

United

States

4,000

241,640

Equifax,

Inc.

.........................................

United

States

1,090

199,230

Experian

plc

.........................................

United

Kingdom

27,000

792,612

Randstad

NV

........................................

Netherlands

4,462

215,640

RELX

plc

...........................................

United

Kingdom

7,908

214,678

Robert

Half

International,

Inc.

............................

United

States

3,437

257,397

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-19

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Professional

Services

(continued)

Verisk

Analytics,

Inc.

...................................

United

States

661

$

114,412

Wolters

Kluwer

NV

....................................

Netherlands

4,399

426,322

4,081,768

Real

Estate

Management

&

Development

0.2%

a

CBRE

Group,

Inc.,

A

...................................

United

States

1,295

95,325

CK

Asset

Holdings

Ltd.

.................................

Hong

Kong

25,500

181,185

a

Jones

Lang

LaSalle,

Inc.

................................

United

States

859

150,205

LEG

Immobilien

SE

....................................

Germany

3,483

289,847

Nomura

Real

Estate

Holdings,

Inc.

........................

Japan

6,000

146,765

863,327

Road

&

Rail

0.5%

Aurizon

Holdings

Ltd.

..................................

Australia

79,699

209,626

a

Avis

Budget

Group,

Inc.

................................

United

States

712

104,721

Canadian

Pacific

Railway

Ltd.

............................

Canada

5,360

374,342

JB

Hunt

Transport

Services,

Inc.

..........................

United

States

1,150

181,090

Landstar

System,

Inc.

..................................

United

States

547

79,545

Nippon

Express

Holdings,

Inc.

............................

Japan

2,500

136,158

Old

Dominion

Freight

Line,

Inc.

...........................

United

States

1,119

286,777

Ryder

System,

Inc.

....................................

United

States

1,546

109,859

a

Uber

Technologies,

Inc.

.................................

United

States

21,482

439,522

Union

Pacific

Corp.

....................................

United

States

5,236

1,116,734

3,038,374

Semiconductors

&

Semiconductor

Equipment

2.4%

ASML

Holding

NV

.....................................

Netherlands

1,915

904,676

ASML

Holding

NV,

NYRS

...............................

Netherlands

1,932

919,400

Broadcom,

Inc.

.......................................

United

States

371

180,235

Infineon

Technologies

AG

...............................

Germany

23,896

581,255

Intel

Corp.

...........................................

United

States

45,655

1,707,954

KLA

Corp.

...........................................

United

States

255

81,365

Micron

Technology,

Inc.

.................................

United

States

21,485

1,187,691

Monolithic

Power

Systems,

Inc.

...........................

United

States

1,200

460,848

NVIDIA

Corp.

........................................

United

States

13,144

1,992,499

NXP

Semiconductors

NV

...............................

China

5,031

744,739

QUALCOMM,

Inc.

.....................................

United

States

11,825

1,510,525

STMicroelectronics

NV

.................................

Singapore

20,349

643,508

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

...............

Taiwan

51,586

826,888

Texas

Instruments,

Inc.

.................................

United

States

9,506

1,460,597

Tokyo

Electron

Ltd.

....................................

Japan

1,800

587,400

13,789,580

Software

4.9%

a

Adobe,

Inc.

..........................................

United

States

3,004

1,099,644

a

Atlassian

Corp.

plc,

A

..................................

United

States

3,627

679,700

a

Autodesk,

Inc.

........................................

United

States

1,942

333,946

a

Avalara,

Inc.

.........................................

United

States

2,280

160,968

AVEVA

Group

plc

.....................................

United

Kingdom

29,000

795,993

a

Bill.com

Holdings,

Inc.

..................................

United

States

2,700

296,838

a

Cadence

Design

Systems,

Inc.

...........................

United

States

6,326

949,090

a

Check

Point

Software

Technologies

Ltd.

....................

Israel

1,200

146,136

a

Crowdstrike

Holdings,

Inc.,

A

.............................

United

States

300

50,568

a

CyberArk

Software

Ltd.

.................................

United

States

7,900

1,010,884

a

Dropbox,

Inc.,

A

......................................

United

States

3,702

77,705

a

Fair

Isaac

Corp.

......................................

United

States

813

325,932

a

Fortinet,

Inc.

.........................................

United

States

9,820

555,616

a

Gitlab

,

Inc.,

A

........................................

United

States

300

15,942

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-20

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Software

(continued)

Intuit,

Inc.

...........................................

United

States

2,185

$

842,186

a

Manhattan

Associates,

Inc.

..............................

United

States

2,008

230,117

Microsoft

Corp.

.......................................

United

States

42,305

10,865,193

Nemetschek

SE

......................................

Germany

2,610

158,776

a

Nice

Ltd.,

ADR

.......................................

Israel

4,600

885,270

Oracle

Corp.

.........................................

United

States

11,176

780,867

a

Palo

Alto

Networks,

Inc.

................................

United

States

2,459

1,214,599

a

Paycom

Software,

Inc.

.................................

United

States

400

112,048

a

Procore

Technologies,

Inc.

..............................

United

States

200

9,078

a

PTC,

Inc.

...........................................

United

States

3,021

321,253

Sage

Group

plc

(The)

..................................

United

Kingdom

8,376

64,851

a

Salesforce,

Inc.

.......................................

United

States

7,516

1,240,441

a

ServiceNow

,

Inc.

......................................

United

States

2,255

1,072,298

SimCorp

A/S

.........................................

Denmark

12,500

913,803

a

Splunk

,

Inc.

..........................................

United

States

5,577

493,341

a

Synopsys,

Inc.

.......................................

United

States

2,230

677,251

a

Teradata

Corp.

.......................................

United

States

3,074

113,769

Trend

Micro,

Inc.

......................................

Japan

1,000

48,912

a

Tyler

Technologies,

Inc.

.................................

United

States

496

164,910

a

UiPath

,

Inc.,

A

........................................

United

States

7,609

138,408

a

Unity

Software,

Inc.

....................................

United

States

4,004

147,427

WiseTech

Global

Ltd.

..................................

Australia

7,323

192,039

a

Workday,

Inc.,

A

......................................

United

States

5,349

746,613

a

Zoom

Video

Communications,

Inc.,

A

......................

United

States

671

72,448

28,004,860

Specialty

Retail

0.8%

Advance

Auto

Parts,

Inc.

................................

United

States

3,298

570,851

a

AutoNation,

Inc.

......................................

United

States

1,249

139,588

a

AutoZone,

Inc.

.......................................

United

States

379

814,516

Best

Buy

Co.,

Inc.

.....................................

United

States

1,103

71,905

Home

Depot,

Inc.

(The)

.................................

United

States

5,397

1,480,235

Kingfisher

plc

........................................

United

Kingdom

73,438

219,432

Lithia

Motors,

Inc.,

A

...................................

United

States

313

86,016

Penske

Automotive

Group,

Inc.

...........................

United

States

860

90,033

Tractor

Supply

Co.

....................................

United

States

2,809

544,525

a

Ulta

Beauty,

Inc.

......................................

United

States

366

141,086

Williams-Sonoma,

Inc.

.................................

United

States

1,711

189,835

4,348,022

Technology

Hardware,

Storage

&

Peripherals

1.7%

Apple,

Inc.

..........................................

United

States

57,119

7,809,310

Canon,

Inc.

..........................................

Japan

7,200

163,132

Elecom

Co.

Ltd.

......................................

Japan

14,100

158,743

HP,

Inc.

.............................................

United

States

13,012

426,533

Samsung

Electronics

Co.

Ltd.

............................

South

Korea

20,438

908,117

9,465,835

Textiles,

Apparel

&

Luxury

Goods

0.5%

Burberry

Group

plc

....................................

United

Kingdom

3,663

73,473

Hermes

International

...................................

France

446

501,917

a

Lululemon

Athletica

,

Inc.

................................

United

States

502

136,850

LVMH

Moet

Hennessy

Louis

Vuitton

SE

....................

France

1,002

614,075

NIKE,

Inc.,

B

.........................................

United

States

13,070

1,335,754

Pandora

A/S

.........................................

Denmark

2,080

132,150

Swatch

Group

AG

(The)

................................

Switzerland

1,066

47,571

2,841,790

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-21

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Thrifts

&

Mortgage

Finance

0.1%

Housing

Development

Finance

Corp.

Ltd.

...................

India

25,429

$

703,604

Tobacco

0.3%

Altria

Group,

Inc.

......................................

United

States

10,163

424,508

British

American

Tobacco

plc

.............................

United

Kingdom

1,730

74,143

Imperial

Brands

plc

....................................

United

Kingdom

41,858

936,952

Swedish

Match

AB

....................................

Sweden

35,469

361,856

1,797,459

Trading

Companies

&

Distributors

0.6%

Fastenal

Co.

.........................................

United

States

8,882

443,389

Marubeni

Corp.

.......................................

Japan

72,700

652,114

Mitsubishi

Corp.

......................................

Japan

31,100

926,024

WW

Grainger,

Inc.

.....................................

United

States

2,586

1,175,156

3,196,683

Water

Utilities

0.0%

†

American

Water

Works

Co.,

Inc.

..........................

United

States

1,619

240,859

Wireless

Telecommunication

Services

0.1%

KDDI

Corp.

..........................................

Japan

21,500

677,864

a

T-Mobile

US,

Inc.

.....................................

United

States

1,118

150,416

828,280

Total

Common

Stocks

(Cost

$312,089,270)

.....................................

323,196,884

Management

Investment

Companies

2.1%

Capital

Markets

2.1%

Schwab

U.S.

TIPS

ETF

.................................

United

States

219,598

12,253,569

Total

Management

Investment

Companies

(Cost

$13,506,924)

....................

12,253,569

Preferred

Stocks

0.1%

Automobiles

0.1%

c

Bayerische

Motoren

Werke

AG,

8.55%

.....................

Germany

2,724

194,281

Total

Preferred

Stocks

(Cost

$252,229)

.........................................

194,281

Units

Private

Limited

Partnership

Funds

0.3%

Oil,

Gas

&

Consumable

Fuels

0.3%

Enterprise

Products

Partners

LP

..........................

United

States

67,434

1,643,367

Total

Private

Limited

Partnership

Funds

(Cost

$1,742,860)

.......................

1,643,367

Principal

Amount

*

Corporate

Bonds

10.5%

Aerospace

&

Defense

0.3%

Boeing

Co.

(The)

,

Senior

Bond,

3.2%,

3/01/29

............................

United

States

20,000

17,324

Senior

Bond,

3.25%,

2/01/35

...........................

United

States

30,000

22,739

Senior

Bond,

3.5%,

3/01/39

............................

United

States

300,000

215,072

Senior

Bond,

5.705%,

5/01/40

..........................

United

States

30,000

28,035

Senior

Bond,

5.805%,

5/01/50

..........................

United

States

60,000

55,217

Senior

Bond,

5.93%,

5/01/60

...........................

United

States

20,000

18,254

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-22

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Aerospace

&

Defense

(continued)

Boeing

Co.

(The),

(continued)

Senior

Note,

4.875%,

5/01/25

..........................

United

States

70,000

$

69,839

Senior

Note,

2.196%,

2/04/26

..........................

United

States

350,000

316,025

Senior

Note,

5.15%,

5/01/30

...........................

United

States

50,000

48,036

General

Dynamics

Corp.

,

Senior

Bond

,

4.25

%

,

4/01/50

.........

United

States

10,000

9,639

Lockheed

Martin

Corp.

,

Senior

Bond,

3.9%,

6/15/32

............................

United

States

10,000

9,879

Senior

Bond,

4.15%,

6/15/53

...........................

United

States

50,000

46,771

Northrop

Grumman

Corp.

,

Senior

Bond,

3.25%,

1/15/28

...........................

United

States

10,000

9,514

Senior

Bond,

5.25%,

5/01/50

...........................

United

States

190,000

201,662

Senior

Note,

2.93%,

1/15/25

...........................

United

States

20,000

19,584

Raytheon

Technologies

Corp.

,

Senior

Bond,

4.125%,

11/16/28

.........................

United

States

20,000

19,758

Senior

Bond,

4.5%,

6/01/42

............................

United

States

300,000

286,610

Senior

Bond,

4.15%,

5/15/45

...........................

United

States

20,000

17,818

Senior

Bond,

3.125%,

7/01/50

..........................

United

States

30,000

23,015

1,434,791

Air

Freight

&

Logistics

0.1%

FedEx

Corp.

,

Senior

Bond,

5.1%,

1/15/44

............................

United

States

400,000

386,036

Senior

Bond,

4.75%,

11/15/45

..........................

United

States

100,000

91,864

United

Parcel

Service,

Inc.

,

Senior

Bond

,

3.75

%

,

11/15/47

.......

United

States

100,000

89,301

567,201

Airlines

0.0%

†

b

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.

,

Senior

Secured

Note,

144A,

4.5%,

10/20/25

...............

United

States

255,000

248,016

Senior

Secured

Note,

144A,

4.75%,

10/20/28

..............

United

States

30,000

28,362

276,378

Automobiles

0.0%

†

General

Motors

Co.

,

Senior

Bond

,

6.6

%

,

4/01/36

..............

United

States

20,000

20,283

Banks

2.0%

b

Banco

de

Chile

,

Senior

Bond

,

144A,

2.99

%

,

12/09/31

..........

Chile

200,000

167,372

Banco

Santander

SA

,

Senior

Note

,

2.746

%

,

5/28/25

...........

Spain

200,000

189,659

Bancolombia

SA

,

Senior

Note

,

3

%

,

1/29/25

..................

Colombia

650,000

600,113

Bank

of

America

Corp.

,

Senior

Bond,

3.419%

to

12/19/27,

FRN

thereafter,

12/20/28

...

United

States

80,000

74,574

Senior

Bond,

2.572%

to

10/19/31,

FRN

thereafter,

10/20/32

...

United

States

90,000

74,326

Senior

Bond,

4.571%

to

4/26/32,

FRN

thereafter,

4/27/33

.....

United

States

70,000

68,207

Senior

Bond,

5%,

1/21/44

.............................

United

States

20,000

19,691

Senior

Bond,

4.083%

to

3/19/50,

FRN

thereafter,

3/20/51

.....

United

States

100,000

86,430

Senior

Note,

3.004%

to

12/19/22,

FRN

thereafter,

12/20/23

....

United

States

40,000

39,879

Senior

Note,

3.55%

to

3/04/23,

FRN

thereafter,

3/05/24

.......

United

States

30,000

29,915

Senior

Note,

3.864%

to

7/22/23,

FRN

thereafter,

7/23/24

......

United

States

200,000

199,236

Senior

Note,

1.319%

to

6/18/25,

FRN

thereafter,

6/19/26

......

United

States

150,000

136,552

Sub.

Bond,

4%,

1/22/25

..............................

United

States

20,000

19,935

Sub.

Bond,

4.25%,

10/22/26

...........................

United

States

100,000

98,667

Sub.

Bond,

2.482%

to

9/20/31,

FRN

thereafter,

9/21/36

.......

United

States

10,000

7,767

L,

Sub.

Bond,

4.183%,

11/25/27

........................

United

States

960,000

933,865

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-23

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Banks

(continued)

Bank

of

Montreal

,

Senior

Note

,

1.85

%

,

5/01/25

...............

Canada

30,000

$

28,418

b

BNP

Paribas

SA

,

Senior

Note

,

144A,

1.675%

to

6/29/26,

FRN

thereafter

,

6/30/27

...................................

France

200,000

176,527

Canadian

Imperial

Bank

of

Commerce

,

Senior

Note

,

0.95

%

,

6/23/23

Canada

20,000

19,432

Citigroup,

Inc.

,

Senior

Bond,

2.572%

to

6/02/30,

FRN

thereafter,

6/03/31

.....

United

States

540,000

454,382

Senior

Bond,

4.91%

to

5/23/32,

FRN

thereafter,

5/24/33

......

United

States

80,000

79,030

Senior

Bond,

2.904%

to

11/02/41,

FRN

thereafter,

11/03/42

....

United

States

30,000

21,772

Senior

Note,

4.044%

to

5/31/23,

FRN

thereafter,

6/01/24

......

United

States

400,000

399,108

Senior

Note,

3.352%

to

4/23/24,

FRN

thereafter,

4/24/25

......

United

States

1,100,000

1,078,330

Senior

Note,

3.29%

to

3/16/25,

FRN

thereafter,

3/17/26

.......

United

States

40,000

38,719

Senior

Note,

4.658%

to

5/23/27,

FRN

thereafter,

5/24/28

......

United

States

120,000

119,180

Sub.

Bond,

5.5%,

9/13/25

.............................

United

States

20,000

20,580

Sub.

Bond,

4.45%,

9/29/27

............................

United

States

60,000

58,812

Sub.

Bond,

5.3%,

5/06/44

.............................

United

States

20,000

19,197

b

Cooperatieve

Rabobank

UA

,

Senior

Note

,

144A,

3.649%

to

4/05/27,

FRN

thereafter

,

4/06/28

...............................

Netherlands

250,000

237,663

Credit

Suisse

Group

Funding

Guernsey

Ltd.

,

Senior

Note

,

3.8

%

,

9/15/22

...........................................

Switzerland

1,200,000

1,201,094

HSBC

Holdings

plc

,

Senior

Note,

1.645%

to

8/17/25,

FRN

thereafter,

4/18/26

......

United

Kingdom

525,000

481,633

Senior

Note,

4.755%

to

6/08/27,

FRN

thereafter,

6/09/28

......

United

Kingdom

200,000

194,610

JPMorgan

Chase

&

Co.

,

Senior

Bond,

3.54%

to

4/30/27,

FRN

thereafter,

5/01/28

......

United

States

1,200,000

1,138,818

Senior

Bond,

4.452%

to

12/04/28,

FRN

thereafter,

12/05/29

...

United

States

60,000

58,506

Senior

Bond,

2.545%

to

11/07/31,

FRN

thereafter,

11/08/32

....

United

States

30,000

24,956

Senior

Bond,

3.109%

to

4/21/50,

FRN

thereafter,

4/22/51

.....

United

States

20,000

14,698

Senior

Note,

1.514%

to

5/31/23,

FRN

thereafter,

6/01/24

......

United

States

50,000

48,764

Senior

Note,

2.083%

to

4/21/25,

FRN

thereafter,

4/22/26

......

United

States

80,000

74,906

Senior

Note,

4.565%

to

6/13/29,

FRN

thereafter,

6/14/30

......

United

States

60,000

58,958

Sub.

Bond,

3.625%,

12/01/27

..........................

United

States

60,000

57,646

Sub.

Bond,

2.956%

to

5/12/30,

FRN

thereafter,

5/13/31

.......

United

States

200,000

172,849

Sub.

Bond,

4.95%,

6/01/45

............................

United

States

20,000

19,134

d

PNC

Financial

Services

Group,

Inc.

(The)

,

T

,

Junior

Sub.

Bond

,

3.4%

to

9/14/26,

FRN

thereafter

,

Perpetual

.....................

United

States

400,000

304,729

Royal

Bank

of

Canada

,

Senior

Bond,

3.875%,

5/04/32

..........................

Canada

50,000

47,757

Senior

Note,

1.6%,

4/17/23

............................

Canada

30,000

29,677

Senior

Note,

1.15%,

6/10/25

...........................

Canada

20,000

18,530

b

Standard

Chartered

plc

,

Senior

Bond

,

144A,

4.05

%

,

4/12/26

.....

United

Kingdom

470,000

461,803

SVB

Financial

Group

,

Senior

Bond

,

3.125

%

,

6/05/30

...........

United

States

100,000

86,144

Toronto-Dominion

Bank

(The)

,

Senior

Bond,

4.456%,

6/08/32

..........................

Canada

10,000

9,898

Senior

Note,

0.75%,

6/12/23

...........................

Canada

30,000

29,186

Senior

Note,

1.15%,

6/12/25

...........................

Canada

20,000

18,471

Truist

Financial

Corp.

,

Sub.

Bond

,

3.875

%

,

3/19/29

............

United

States

760,000

722,849

b

UniCredit

SpA

,

Senior

Note

,

144A,

1.982%

to

6/02/26,

FRN

thereafter

,

6/03/27

...................................

Italy

300,000

259,542

US

Bancorp

,

Senior

Note

,

1.45

%

,

5/12/25

...................

United

States

40,000

37,537

Wells

Fargo

&

Co.

,

Senior

Bond,

2.879%

to

10/29/29,

FRN

thereafter,

10/30/30

...

United

States

150,000

132,031

Senior

Bond,

3.35%

to

3/01/32,

FRN

thereafter,

3/02/33

......

United

States

30,000

26,649

Senior

Bond,

5.013%

to

4/03/50,

FRN

thereafter,

4/04/51

.....

United

States

220,000

216,368

Senior

Note,

1.654%

to

6/01/23,

FRN

thereafter,

6/02/24

......

United

States

40,000

39,086

Senior

Note,

2.188%

to

4/29/25,

FRN

thereafter,

4/30/26

......

United

States

60,000

56,210

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-24

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Banks

(continued)

Wells

Fargo

&

Co.,

(continued)

Sub.

Bond,

4.3%,

7/22/27

.............................

United

States

60,000

$

59,390

Sub.

Bond,

4.9%,

11/17/45

............................

United

States

90,000

83,625

11,683,392

Beverages

0.2%

Anheuser-Busch

Cos.

LLC

/

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond,

4.9%,

2/01/46

............................

Belgium

100,000

94,176

Senior

Note,

3.65%,

2/01/26

...........................

Belgium

30,000

29,561

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond,

4.75%,

1/23/29

...........................

Belgium

60,000

61,102

Senior

Bond,

3.5%,

6/01/30

............................

Belgium

420,000

394,102

Senior

Bond,

4.35%,

6/01/40

...........................

Belgium

30,000

26,898

Senior

Bond,

4.5%,

6/01/50

............................

Belgium

90,000

81,060

Senior

Bond,

5.8%,

1/23/59

............................

Belgium

150,000

156,439

Coca-Cola

Co.

(The)

,

Senior

Bond,

2.5%,

6/01/40

............................

United

States

10,000

7,839

Senior

Note,

1.45%,

6/01/27

...........................

United

States

20,000

18,116

Constellation

Brands,

Inc.

,

Senior

Note,

3.6%,

5/09/24

............................

United

States

10,000

9,970

Senior

Note,

4.35%,

5/09/27

...........................

United

States

10,000

9,924

PepsiCo,

Inc.

,

Senior

Bond

,

1.625

%

,

5/01/30

.................

United

States

10,000

8,489

897,676

Biotechnology

0.3%

AbbVie,

Inc.

,

Senior

Bond,

4.85%,

6/15/44

...........................

United

States

400,000

383,055

Senior

Bond,

4.75%,

3/15/45

...........................

United

States

300,000

282,745

Senior

Bond,

4.25%,

11/21/49

..........................

United

States

40,000

35,578

Senior

Note,

2.6%,

11/21/24

...........................

United

States

100,000

96,911

Senior

Note,

2.95%,

11/21/26

..........................

United

States

40,000

37,930

Senior

Note,

3.2%,

11/21/29

...........................

United

States

90,000

82,867

Amgen,

Inc.

,

Senior

Bond

,

2.45

%

,

2/21/30

...................

United

States

680,000

593,610

Gilead

Sciences,

Inc.

,

Senior

Bond,

3.65%,

3/01/26

...........................

United

States

10,000

9,837

Senior

Bond,

4.75%,

3/01/46

...........................

United

States

10,000

9,611

1,532,144

Building

Products

0.1%

Carrier

Global

Corp.

,

Senior

Bond

,

3.577

%

,

4/05/50

...........

United

States

230,000

174,570

Fortune

Brands

Home

&

Security,

Inc.

,

Senior

Bond

,

4

%

,

3/25/32

.

United

States

400,000

354,229

528,799

Capital

Markets

0.5%

Credit

Suisse

AG

,

Senior

Note

,

1.25

%

,

8/07/26

...............

Switzerland

250,000

218,712

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Bond,

3.5%,

1/23/25

............................

United

States

425,000

419,205

Senior

Bond,

3.691%

to

6/04/27,

FRN

thereafter,

6/05/28

.....

United

States

140,000

132,878

Senior

Bond,

2.65%

to

10/20/31,

FRN

thereafter,

10/21/32

....

United

States

70,000

57,760

Senior

Bond,

2.908%

to

7/20/41,

FRN

thereafter,

7/21/42

.....

United

States

40,000

29,275

Senior

Note,

3.625%,

2/20/24

..........................

United

States

40,000

39,906

Senior

Note,

3.5%,

4/01/25

............................

United

States

40,000

39,262

Sub.

Bond,

4.25%,

10/21/25

...........................

United

States

200,000

198,780

Sub.

Bond,

5.15%,

5/22/45

............................

United

States

50,000

47,593

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-25

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Capital

Markets

(continued)

Intercontinental

Exchange,

Inc.

,

Senior

Bond

,

4.6

%

,

3/15/33

.....

United

States

20,000

$

19,871

Morgan

Stanley

,

Senior

Bond,

3.591%

to

7/21/27,

FRN

thereafter,

7/22/28

.....

United

States

860,000

814,881

Senior

Bond,

3.772%

to

1/23/28,

FRN

thereafter,

1/24/29

.....

United

States

40,000

37,991

Senior

Bond,

3.622%

to

3/31/30,

FRN

thereafter,

4/01/31

.....

United

States

300,000

275,849

Senior

Bond,

2.511%

to

10/19/31,

FRN

thereafter,

10/20/32

....

United

States

100,000

82,744

Senior

Note,

2.188%

to

4/27/25,

FRN

thereafter,

4/28/26

......

United

States

50,000

46,872

b

UBS

Group

AG

,

Senior

Note

,

144A,

4.488%

to

5/11/25,

FRN

thereafter

,

5/12/26

...................................

Switzerland

200,000

199,511

2,661,090

Commercial

Services

&

Supplies

0.0%

†

Cintas

Corp.

No.

2

,

Senior

Bond,

3.7%,

4/01/27

............................

United

States

10,000

9,885

Senior

Bond,

4%,

5/01/32

.............................

United

States

10,000

9,832

Republic

Services,

Inc.

,

Senior

Note

,

2.5

%

,

8/15/24

............

United

States

10,000

9,690

29,407

Consumer

Finance

0.1%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

,

Senior

Note

,

2.45

%

,

10/29/26

................................

Ireland

150,000

130,719

American

Express

Co.

,

Senior

Note,

2.5%,

7/30/24

............................

United

States

70,000

68,177

Senior

Note,

4.05%,

5/03/29

...........................

United

States

30,000

29,437

Capital

One

Financial

Corp.

,

Senior

Bond

,

3.75

%

,

3/09/27

.......

United

States

435,000

416,763

John

Deere

Capital

Corp.

,

Senior

Bond

,

3.9

%

,

6/07/32

.........

United

States

75,000

74,210

719,306

Containers

&

Packaging

0.0%

†

WRKCo

,

Inc.

,

Senior

Bond

,

3

%

,

6/15/33

....................

United

States

135,000

114,590

Diversified

Financial

Services

0.3%

b

CK

Hutchison

International

19

Ltd.

,

Senior

Note

,

144A,

3.25

%

,

4/11/24

...........................................

United

Kingdom

635,000

632,177

b

EDP

Finance

BV

,

Senior

Note

,

144A,

1.71

%

,

1/24/28

..........

Portugal

400,000

343,152

b

NTT

Finance

Corp.

,

Senior

Bond

,

144A,

2.065

%

,

4/03/31

.......

Japan

500,000

419,187

Shell

International

Finance

BV

,

Senior

Bond,

2.875%,

5/10/26

..........................

Netherlands

20,000

19,345

Senior

Bond,

2.75%,

4/06/30

...........................

Netherlands

50,000

45,174

Senior

Bond,

4%,

5/10/46

.............................

Netherlands

20,000

17,858

Senior

Bond,

3.25%,

4/06/50

...........................

Netherlands

40,000

31,616

1,508,509

Diversified

Telecommunication

Services

0.4%

AT&T,

Inc.

,

Senior

Bond,

2.55%,

12/01/33

..........................

United

States

40,000

32,495

Senior

Bond,

3.5%,

6/01/41

............................

United

States

525,000

420,074

Senior

Bond,

3.5%,

9/15/53

............................

United

States

40,000

30,387

Senior

Bond,

3.55%,

9/15/55

...........................

United

States

30,000

22,527

Senior

Bond,

3.65%,

9/15/59

...........................

United

States

10,000

7,512

Senior

Note,

1.65%,

2/01/28

...........................

United

States

100,000

86,599

Orange

SA

,

Senior

Bond

,

9

%

,

3/01/31

......................

France

100,000

129,182

Verizon

Communications,

Inc.

,

Senior

Bond,

2.625%,

8/15/26

..........................

United

States

40,000

37,867

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-26

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Diversified

Telecommunication

Services

(continued)

Verizon

Communications,

Inc.,

(continued)

Senior

Bond,

2.55%,

3/21/31

...........................

United

States

200,000

$

171,171

Senior

Bond,

4.5%,

8/10/33

............................

United

States

100,000

97,633

Senior

Bond,

2.85%,

9/03/41

...........................

United

States

400,000

300,489

Senior

Bond,

2.875%,

11/20/50

.........................

United

States

70,000

49,776

Senior

Note,

2.1%,

3/22/28

............................

United

States

40,000

35,562

Senior

Note,

2.355%,

3/15/32

..........................

United

States

850,000

705,498

2,126,772

Electric

Utilities

0.5%

b

American

Transmission

Systems,

Inc.

,

Senior

Bond

,

144A,

2.65

%

,

1/15/32

...........................................

United

States

20,000

16,962

b

Cleveland

Electric

Illuminating

Co.

(The)

,

Senior

Bond

,

144A,

3.5

%

,

4/01/28

...........................................

United

States

10,000

9,418

Commonwealth

Edison

Co.

,

Senior

Bond

,

4

%

,

3/01/48

.........

United

States

200,000

180,244

Duke

Energy

Corp.

,

Senior

Bond,

3.15%,

8/15/27

...........................

United

States

10,000

9,454

Senior

Bond,

3.75%,

9/01/46

...........................

United

States

100,000

78,952

Duke

Energy

Florida

LLC

,

Senior

Bond

,

6.4

%

,

6/15/38

.........

United

States

200,000

234,294

b

Enel

Finance

International

NV

,

Senior

Bond

,

144A,

2.25

%

,

7/12/31

Italy

200,000

157,193

Exelon

Corp.

,

Senior

Bond,

4.05%,

4/15/30

...........................

United

States

650,000

624,407

Senior

Bond,

5.625%,

6/15/35

..........................

United

States

10,000

10,558

Georgia

Power

Co.

,

Senior

Bond

,

4.3

%

,

3/15/42

..............

United

States

700,000

610,059

MidAmerican

Energy

Co.

,

Senior

Bond

,

3.65

%

,

4/15/29

.........

United

States

20,000

19,448

b

Mid-Atlantic

Interstate

Transmission

LLC

,

Senior

Bond

,

144A,

4.1

%

,

5/15/28

...........................................

United

States

10,000

9,767

Pacific

Gas

and

Electric

Co.

,

Senior

Bond,

2.5%,

2/01/31

............................

United

States

10,000

7,658

Senior

Bond,

3.3%,

8/01/40

............................

United

States

10,000

6,910

Senior

Bond,

3.5%,

8/01/50

............................

United

States

10,000

6,698

Senior

Note,

2.1%,

8/01/27

............................

United

States

10,000

8,391

Southern

Co.

(The)

,

A

,

Senior

Bond

,

3.7

%

,

4/30/30

............

United

States

300,000

278,665

b

State

Grid

Overseas

Investment

BVI

Ltd.

,

Senior

Bond

,

144A,

3.5

%

,

5/04/27

...........................................

China

600,000

594,479

b

Vistra

Operations

Co.

LLC

,

Senior

Secured

Note

,

144A,

3.55

%

,

7/15/24

...........................................

United

States

235,000

227,061

3,090,618

Electrical

Equipment

0.0%

†

Eaton

Corp.

,

Senior

Bond

,

4.15

%

,

11/02/42

..................

United

States

10,000

8,994

Emerson

Electric

Co.

,

Senior

Bond

,

2.8

%

,

12/21/51

............

United

States

60,000

43,888

52,882

Energy

Equipment

&

Services

0.1%

Baker

Hughes

Holdings

LLC

/

Baker

Hughes

Co-Obligor,

Inc.

,

Senior

Bond

,

4.08

%

,

12/15/47

................................

United

States

485,000

411,015

b

Schlumberger

Holdings

Corp.

,

Senior

Note

,

144A,

3.75

%

,

5/01/24

.

United

States

410,000

408,548

819,563

Entertainment

0.2%

b

Magallanes,

Inc.

,

Senior

Bond,

144A,

4.279%,

3/15/32

.....................

United

States

70,000

62,629

Senior

Bond,

144A,

5.05%,

3/15/42

......................

United

States

210,000

178,990

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-27

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Entertainment

(continued)

b

Magallanes,

Inc.,

(continued)

Senior

Bond,

144A,

5.141%,

3/15/52

.....................

United

States

50,000

$

42,033

Senior

Note,

144A,

3.755%,

3/15/27

.....................

United

States

10,000

9,388

Senior

Note,

144A,

4.054%,

3/15/29

.....................

United

States

10,000

9,167

Netflix,

Inc.

,

Senior

Bond

,

5.75

%

,

3/01/24

...................

United

States

400,000

406,648

Walt

Disney

Co.

(The)

,

Senior

Bond

,

2.65

%

,

1/13/31

...........

United

States

200,000

176,198

885,053

Equity

Real

Estate

Investment

Trusts

(REITs)

0.2%

Alexandria

Real

Estate

Equities,

Inc.

,

Senior

Bond

,

4.9

%

,

12/15/30

United

States

50,000

49,684

Essex

Portfolio

LP

,

Senior

Bond

,

2.65

%

,

3/15/32

..............

United

States

360,000

299,294

MPT

Operating

Partnership

LP

/

MPT

Finance

Corp.

,

Senior

Bond

,

3.5

%

,

3/15/31

......................................

United

States

100,000

79,112

Simon

Property

Group

LP

,

Senior

Note

,

3.375

%

,

12/01/27

.......

United

States

595,000

559,101

987,191

Food

&

Staples

Retailing

0.1%

Costco

Wholesale

Corp.

,

Senior

Bond

,

1.75

%

,

4/20/32

.........

United

States

20,000

16,477

Kroger

Co.

(The)

,

Senior

Bond

,

5.4

%

,

1/15/49

................

United

States

400,000

419,613

Walmart,

Inc.

,

Senior

Note

,

1.5

%

,

9/22/28

...................

United

States

10,000

8,777

444,867

Food

Products

0.1%

b

Bimbo

Bakeries

USA,

Inc.

,

Senior

Bond

,

144A,

4

%

,

5/17/51

.....

Mexico

400,000

324,942

b

Cargill,

Inc.

,

Senior

Note

,

144A,

1.375

%

,

7/23/23

..............

United

States

20,000

19,613

b

JBS

Finance

Luxembourg

SARL

,

Senior

Bond

,

144A,

3.625

%

,

1/15/32

...........................................

United

States

200,000

162,045

Kraft

Heinz

Foods

Co.

,

Senior

Note

,

3

%

,

6/01/26

..............

United

States

10,000

9,438

b

Mars,

Inc.

,

Senior

Bond,

144A,

3.2%,

4/01/30

.......................

United

States

30,000

27,886

Senior

Bond,

144A,

2.375%,

7/16/40

.....................

United

States

10,000

7,292

Mondelez

International,

Inc.

,

Senior

Note

,

1.5

%

,

5/04/25

........

United

States

20,000

18,690

569,906

Health

Care

Equipment

&

Supplies

0.0%

†

Abbott

Laboratories

,

Senior

Bond,

3.75%,

11/30/26

..........................

United

States

30,000

30,217

Senior

Bond,

4.9%,

11/30/46

...........................

United

States

10,000

10,507

STERIS

Irish

FinCo

.

UnLtd

.

Co.

,

Senior

Bond

,

3.75

%

,

3/15/51

....

United

States

250,000

194,862

235,586

Health

Care

Providers

&

Services

0.6%

Centene

Corp.

,

Senior

Bond

,

3

%

,

10/15/30

..................

United

States

450,000

374,123

Cigna

Corp.

,

Senior

Bond,

2.375%,

3/15/31

..........................

United

States

100,000

84,507

Senior

Bond,

4.8%,

8/15/38

............................

United

States

20,000

19,489

Senior

Bond,

4.9%,

12/15/48

...........................

United

States

10,000

9,622

Senior

Note,

3.75%,

7/15/23

...........................

United

States

10,000

10,026

Senior

Note,

4.125%,

11/15/25

.........................

United

States

10,000

10,026

Senior

Note,

3.05%,

10/15/27

..........................

United

States

550,000

517,232

Senior

Note,

4.375%,

10/15/28

.........................

United

States

60,000

59,599

CVS

Health

Corp.

,

Senior

Bond,

3.875%,

7/20/25

..........................

United

States

10,000

9,952

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-28

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Health

Care

Providers

&

Services

(continued)

CVS

Health

Corp.,

(continued)

Senior

Bond,

4.3%,

3/25/28

............................

United

States

30,000

$

29,712

Senior

Bond,

2.125%,

9/15/31

..........................

United

States

50,000

40,609

Senior

Bond,

4.78%,

3/25/38

...........................

United

States

40,000

37,927

Senior

Bond,

5.3%,

12/05/43

...........................

United

States

500,000

500,377

Senior

Bond,

5.125%,

7/20/45

..........................

United

States

200,000

193,085

Senior

Bond,

5.05%,

3/25/48

...........................

United

States

50,000

47,934

Senior

Bond,

4.25%,

4/01/50

...........................

United

States

20,000

17,266

Elevance

Health,

Inc.

,

Senior

Bond,

3.65%,

12/01/27

..........................

United

States

20,000

19,481

Senior

Bond,

4.1%,

5/15/32

............................

United

States

10,000

9,742

Senior

Bond,

5.1%,

1/15/44

............................

United

States

400,000

400,910

Senior

Bond,

4.55%,

5/15/52

...........................

United

States

10,000

9,429

HCA,

Inc.

,

Senior

Bond

,

4.5

%

,

2/15/27

.....................

United

States

408,000

392,602

Humana,

Inc.

,

Senior

Bond

,

3.125

%

,

8/15/29

.................

United

States

90,000

81,413

Quest

Diagnostics,

Inc.

,

Senior

Bond

,

2.8

%

,

6/30/31

...........

United

States

300,000

257,334

UnitedHealth

Group,

Inc.

,

Senior

Bond,

2.75%,

5/15/40

...........................

United

States

30,000

23,415

Senior

Bond,

3.25%,

5/15/51

...........................

United

States

20,000

15,738

Senior

Bond,

3.875%,

8/15/59

..........................

United

States

30,000

25,984

Senior

Note,

3.75%,

7/15/25

...........................

United

States

10,000

10,000

Senior

Note,

4%,

5/15/29

.............................

United

States

20,000

19,826

Senior

Note,

4.2%,

5/15/32

............................

United

States

30,000

30,001

3,257,361

Hotels,

Restaurants

&

Leisure

0.1%

Las

Vegas

Sands

Corp.

,

Senior

Bond

,

3.9

%

,

8/08/29

...........

United

States

450,000

368,022

McDonald's

Corp.

,

Senior

Bond,

4.875%,

12/09/45

.........................

United

States

10,000

9,849

Senior

Bond,

4.2%,

4/01/50

............................

United

States

30,000

26,863

Senior

Note,

1.45%,

9/01/25

...........................

United

States

40,000

37,257

Senior

Note,

2.125%,

3/01/30

..........................

United

States

30,000

25,673

467,664

Household

Durables

0.1%

MDC

Holdings,

Inc.

,

Senior

Bond

,

2.5

%

,

1/15/31

..............

United

States

156,000

115,300

Mohawk

Industries,

Inc.

,

Senior

Bond

,

3.625

%

,

5/15/30

.........

United

States

210,000

187,600

302,900

Household

Products

0.1%

b

Kimberly-Clark

de

Mexico

SAB

de

CV

,

Senior

Bond

,

144A,

2.431

%

,

7/01/31

...........................................

Mexico

500,000

416,567

Procter

&

Gamble

Co.

(The)

,

Senior

Bond

,

3

%

,

3/25/30

.........

United

States

10,000

9,446

426,013

Industrial

Conglomerates

0.0%

†

3M

Co.

,

Senior

Bond,

3.05%,

4/15/30

...........................

United

States

40,000

37,348

Senior

Bond,

3.7%,

4/15/50

............................

United

States

10,000

8,591

Honeywell

International,

Inc.

,

Senior

Note

,

1.35

%

,

6/01/25

.......

United

States

10,000

9,426

55,365

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-29

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Insurance

0.7%

Aflac,

Inc.

,

Senior

Bond

,

4.75

%

,

1/15/49

....................

United

States

600,000

$

580,200

Allstate

Corp.

(The)

,

Senior

Bond

,

4.2

%

,

12/15/46

.............

United

States

500,000

455,906

American

International

Group,

Inc.

,

Senior

Note

,

2.5

%

,

6/30/25

...

United

States

10,000

9,544

Aon

Corp.

,

Senior

Bond

,

2.8

%

,

5/15/30

.....................

United

States

500,000

437,559

Arch

Capital

Group

Ltd.

,

Senior

Bond

,

3.635

%

,

6/30/50

.........

United

States

600,000

467,781

Berkshire

Hathaway

Finance

Corp.

,

Senior

Bond,

4.25%,

1/15/49

...........................

United

States

20,000

18,473

Senior

Bond,

3.85%,

3/15/52

...........................

United

States

200,000

171,584

b

Guardian

Life

Global

Funding

,

Secured

Note

,

144A,

1.1

%

,

6/23/25

United

States

10,000

9,241

Marsh

&

McLennan

Cos.,

Inc.

,

Senior

Bond

,

4.9

%

,

3/15/49

......

United

States

250,000

245,657

MetLife,

Inc.

,

Junior

Sub.

Bond

,

6.4

%

,

12/15/36

...............

United

States

270,000

272,205

b

Metropolitan

Life

Global

Funding

I

,

Secured

Note,

144A,

0.9%,

6/08/23

......................

United

States

150,000

146,864

Secured

Note,

144A,

3.6%,

1/11/24

......................

United

States

940,000

936,635

b

New

York

Life

Global

Funding

,

Senior

Secured

Note

,

144A,

0.95

%

,

6/24/25

...........................................

United

States

10,000

9,223

b

Teachers

Insurance

&

Annuity

Association

of

America

,

Sub.

Bond

,

144A,

4.9

%

,

9/15/44

.................................

United

States

10,000

9,611

3,770,483

Interactive

Media

&

Services

0.1%

Alphabet,

Inc.

,

Senior

Bond,

1.1%,

8/15/30

............................

United

States

10,000

8,216

Senior

Bond,

1.9%,

8/15/40

............................

United

States

10,000

7,186

Senior

Bond,

2.05%,

8/15/50

...........................

United

States

10,000

6,726

b

Tencent

Holdings

Ltd.

,

Senior

Bond,

144A,

3.595%,

1/19/28

.....................

China

500,000

475,401

Senior

Note,

144A,

2.39%,

6/03/30

......................

China

300,000

251,382

748,911

Internet

&

Direct

Marketing

Retail

0.3%

Alibaba

Group

Holding

Ltd.

,

Senior

Bond

,

4.2

%

,

12/06/47

.......

China

800,000

663,933

Amazon.com,

Inc.

,

Senior

Bond,

3.6%,

4/13/32

............................

United

States

70,000

67,476

Senior

Bond,

3.875%,

8/22/37

..........................

United

States

30,000

28,496

Senior

Bond,

4.05%,

8/22/47

...........................

United

States

400,000

375,476

Senior

Bond,

2.5%,

6/03/50

............................

United

States

110,000

77,760

Senior

Bond,

4.25%,

8/22/57

...........................

United

States

10,000

9,412

Senior

Note,

1.2%,

6/03/27

............................

United

States

60,000

53,433

b

Prosus

NV

,

Senior

Bond

,

144A,

3.68

%

,

1/21/30

...............

China

200,000

159,513

1,435,499

IT

Services

0.2%

Fidelity

National

Information

Services,

Inc.

,

Senior

Bond

,

2.25

%

,

3/01/31

...........................................

United

States

650,000

528,231

Fiserv,

Inc.

,

Senior

Bond,

3.5%,

7/01/29

............................

United

States

470,000

429,127

Senior

Bond,

2.65%,

6/01/30

...........................

United

States

200,000

169,590

Mastercard

,

Inc.

,

Senior

Bond,

3.35%,

3/26/30

...........................

United

States

10,000

9,553

Senior

Bond,

3.85%,

3/26/50

...........................

United

States

40,000

36,712

PayPal

Holdings,

Inc.

,

Senior

Bond,

2.3%,

6/01/30

............................

United

States

10,000

8,594

Senior

Bond,

4.4%,

6/01/32

............................

United

States

10,000

9,911

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-30

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

IT

Services

(continued)

PayPal

Holdings,

Inc.,

(continued)

Senior

Note,

1.65%,

6/01/25

...........................

United

States

10,000

$

9,443

Visa,

Inc.

,

Senior

Bond,

3.15%,

12/14/25

..........................

United

States

20,000

19,721

Senior

Bond,

4.3%,

12/14/45

...........................

United

States

20,000

19,788

1,240,670

Life

Sciences

Tools

&

Services

0.0%

†

Thermo

Fisher

Scientific,

Inc.

,

Senior

Note

,

0.797

%

,

10/18/23

....

United

States

200,000

193,901

Machinery

0.0%

†

Caterpillar,

Inc.

,

Senior

Bond

,

2.6

%

,

4/09/30

.................

United

States

215,000

194,783

Deere

&

Co.

,

Senior

Bond,

3.1%,

4/15/30

............................

United

States

10,000

9,348

Senior

Bond,

3.75%,

4/15/50

...........................

United

States

30,000

27,447

Otis

Worldwide

Corp.

,

Senior

Note

,

2.056

%

,

4/05/25

...........

United

States

10,000

9,483

241,061

Media

0.3%

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

,

Senior

Secured

Bond,

5.05%,

3/30/29

....................

United

States

80,000

77,088

Senior

Secured

Bond,

2.8%,

4/01/31

.....................

United

States

350,000

280,663

Senior

Secured

Bond,

4.4%,

4/01/33

.....................

United

States

30,000

26,824

Senior

Secured

Bond,

3.5%,

3/01/42

.....................

United

States

160,000

111,285

Senior

Secured

Bond,

3.9%,

6/01/52

.....................

United

States

70,000

48,730

Senior

Secured

Bond,

5.5%,

4/01/63

.....................

United

States

40,000

34,066

Senior

Secured

Note,

4.908%,

7/23/25

...................

United

States

60,000

60,221

Comcast

Corp.

,

Senior

Bond,

4.15%,

10/15/28

..........................

United

States

70,000

69,873

Senior

Bond,

3.4%,

4/01/30

............................

United

States

10,000

9,392

Senior

Bond,

4.25%,

10/15/30

..........................

United

States

60,000

59,221

Senior

Bond,

4.25%,

1/15/33

...........................

United

States

300,000

295,131

Senior

Bond,

3.75%,

4/01/40

...........................

United

States

30,000

26,345

Senior

Bond,

3.969%,

11/01/47

.........................

United

States

30,000

26,007

Senior

Bond,

2.887%,

11/01/51

.........................

United

States

40,000

28,627

Senior

Bond,

4.049%,

11/01/52

.........................

United

States

500,000

438,140

Senior

Bond,

2.937%,

11/01/56

.........................

United

States

20,000

13,939

Senior

Note,

3.95%,

10/15/25

..........................

United

States

30,000

30,161

Fox

Corp.

,

Senior

Bond,

5.476%,

1/25/39

..........................

United

States

40,000

38,905

Senior

Note,

4.709%,

1/25/29

..........................

United

States

300,000

294,470

Time

Warner

Cable

LLC

,

Senior

Secured

Bond

,

6.55

%

,

5/01/37

..

United

States

10,000

10,030

1,979,118

Metals

&

Mining

0.1%

b

Anglo

American

Capital

plc

,

Senior

Note

,

144A,

3.625

%

,

9/11/24

..

South

Africa

200,000

196,303

Barrick

North

America

Finance

LLC

,

Senior

Bond

,

5.7

%

,

5/30/41

..

Canada

20,000

20,747

BHP

Billiton

Finance

USA

Ltd.

,

Senior

Bond

,

5

%

,

9/30/43

.......

Australia

20,000

20,591

Freeport-McMoRan,

Inc.

,

Senior

Bond

,

5.45

%

,

3/15/43

.........

United

States

20,000

18,546

b

Glencore

Funding

LLC

,

Senior

Bond,

144A,

4%,

3/27/27

........................

Australia

20,000

19,249

Senior

Note,

144A,

4.125%,

3/12/24

.....................

Australia

30,000

29,870

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-31

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Metals

&

Mining

(continued)

Southern

Copper

Corp.

,

Senior

Bond

,

5.25

%

,

11/08/42

.........

Peru

100,000

$

97,967

Vale

Overseas

Ltd.

,

Senior

Bond

,

6.25

%

,

8/10/26

.............

Brazil

130,000

135,953

539,226

Multiline

Retail

0.1%

Dollar

Tree,

Inc.

,

Senior

Note

,

4

%

,

5/15/25

..................

United

States

350,000

348,131

Kohl's

Corp.

,

Senior

Bond

,

3.375

%

,

5/01/31

.................

United

States

400,000

347,357

Target

Corp.

,

Senior

Note

,

2.25

%

,

4/15/25

...................

United

States

20,000

19,332

714,820

Multi-Utilities

0.4%

b

Berkshire

Hathaway

Energy

Co.

,

Senior

Bond

,

144A,

4.6

%

,

5/01/53

United

States

500,000

480,284

Consolidated

Edison

Co.

of

New

York,

Inc.

,

20A,

Senior

Bond,

3.35%,

4/01/30

.......................

United

States

10,000

9,327

20B,

Senior

Bond,

3.95%,

4/01/50

.......................

United

States

10,000

8,695

Dominion

Energy,

Inc.

,

Senior

Note

,

4.25

%

,

6/01/28

...........

United

States

750,000

738,504

Public

Service

Enterprise

Group,

Inc.

,

Senior

Note

,

2.875

%

,

6/15/24

United

States

1,000,000

979,290

2,216,100

Oil,

Gas

&

Consumable

Fuels

0.8%

b

Aker

BP

ASA

,

Senior

Bond

,

144A,

3.75

%

,

1/15/30

.............

Norway

500,000

448,416

BP

Capital

Markets

America,

Inc.

,

Senior

Bond,

1.749%,

8/10/30

..........................

United

States

40,000

32,778

Senior

Bond,

2.939%,

6/04/51

..........................

United

States

40,000

28,688

Senior

Note,

3.119%,

5/04/26

..........................

United

States

40,000

38,845

b

Cameron

LNG

LLC

,

Senior

Secured

Bond,

144A,

2.902%,

7/15/31

..............

United

States

20,000

17,634

Senior

Secured

Bond,

144A,

3.302%,

1/15/35

..............

United

States

40,000

34,281

Chevron

Corp.

,

Senior

Bond,

3.078%,

5/11/50

..........................

United

States

20,000

15,950

Senior

Note,

1.554%,

5/11/25

..........................

United

States

20,000

18,990

Senior

Note,

1.995%,

5/11/27

..........................

United

States

30,000

27,599

Continental

Resources,

Inc.

,

Senior

Bond,

4.9%,

6/01/44

............................

United

States

20,000

15,785

Senior

Note,

4.5%,

4/15/23

............................

United

States

10,000

10,051

Senior

Note,

3.8%,

6/01/24

............................

United

States

10,000

9,882

Senior

Note,

4.375%,

1/15/28

..........................

United

States

40,000

37,675

b

Coterra

Energy,

Inc.

,

Senior

Note,

144A,

3.9%,

5/15/27

.......................

United

States

30,000

28,792

Senior

Note,

144A,

4.375%,

3/15/29

.....................

United

States

60,000

58,912

Devon

Energy

Corp.

,

Senior

Bond,

5.85%,

12/15/25

..........................

United

States

10,000

10,421

Senior

Bond,

4.75%,

5/15/42

...........................

United

States

30,000

27,253

Senior

Bond,

5%,

6/15/45

.............................

United

States

80,000

74,364

Diamondback

Energy,

Inc.

,

Senior

Bond,

3.125%,

3/24/31

..........................

United

States

10,000

8,721

Senior

Bond,

4.4%,

3/24/51

............................

United

States

10,000

8,538

Senior

Note,

3.5%,

12/01/29

...........................

United

States

30,000

27,507

Energy

Transfer

LP

,

Senior

Bond,

4.95%,

6/15/28

...........................

United

States

40,000

39,456

Senior

Bond,

3.75%,

5/15/30

...........................

United

States

50,000

45,110

Senior

Bond,

6.05%,

6/01/41

...........................

United

States

350,000

336,721

Senior

Bond,

6.25%,

4/15/49

...........................

United

States

50,000

48,573

Senior

Note,

2.9%,

5/15/25

............................

United

States

20,000

19,030

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-32

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Oil,

Gas

&

Consumable

Fuels

(continued)

Enterprise

Products

Operating

LLC

,

Senior

Bond,

4.15%,

10/16/28

..........................

United

States

30,000

$

29,341

Senior

Bond,

3.125%,

7/31/29

..........................

United

States

400,000

360,360

Senior

Bond,

2.8%,

1/31/30

............................

United

States

60,000

52,584

Senior

Bond,

6.125%,

10/15/39

.........................

United

States

500,000

529,784

Senior

Bond,

4.45%,

2/15/43

...........................

United

States

20,000

17,459

Senior

Bond,

3.7%,

1/31/51

............................

United

States

50,000

39,179

EOG

Resources,

Inc.

,

Senior

Bond,

4.375%,

4/15/30

..........................

United

States

30,000

30,152

Senior

Bond,

3.9%,

4/01/35

............................

United

States

20,000

18,485

Senior

Bond,

4.95%,

4/15/50

...........................

United

States

40,000

41,435

EQT

Corp.

,

Senior

Bond

,

7.5

%

,

2/01/30

....................

United

States

10,000

10,753

Exxon

Mobil

Corp.

,

Senior

Bond,

3.482%,

3/19/30

..........................

United

States

50,000

47,995

Senior

Bond,

4.227%,

3/19/40

..........................

United

States

10,000

9,470

Senior

Bond,

3.452%,

4/15/51

..........................

United

States

20,000

16,389

Senior

Note,

2.992%,

3/19/25

..........................

United

States

40,000

39,437

Kinder

Morgan,

Inc.

,

Senior

Bond,

4.3%,

3/01/28

............................

United

States

40,000

38,952

Senior

Bond,

5.55%,

6/01/45

...........................

United

States

340,000

320,937

MPLX

LP

,

Senior

Bond,

4%,

3/15/28

.............................

United

States

20,000

19,018

Senior

Bond,

4.5%,

4/15/38

............................

United

States

10,000

8,784

Senior

Bond,

5.5%,

2/15/49

............................

United

States

385,000

357,970

Senior

Note,

2.65%,

8/15/30

...........................

United

States

400,000

334,285

Phillips

66

,

Senior

Bond

,

3.3

%

,

3/15/52

.....................

United

States

200,000

149,275

Pioneer

Natural

Resources

Co.

,

Senior

Note

,

2.15

%

,

1/15/31

....

United

States

60,000

49,463

b

Sinopec

Group

Overseas

Development

2018

Ltd.

,

Senior

Bond

,

144A,

3.35

%

,

5/13/50

.................................

China

200,000

150,997

Targa

Resources

Corp.

,

Senior

Bond

,

4.95

%

,

4/15/52

..........

United

States

10,000

8,592

b

Tennessee

Gas

Pipeline

Co.

LLC

,

Senior

Bond

,

144A,

2.9

%

,

3/01/30

United

States

30,000

25,943

Transcontinental

Gas

Pipe

Line

Co.

LLC

,

Senior

Note,

7.85%,

2/01/26

...........................

United

States

300,000

331,662

Senior

Note,

3.25%,

5/15/30

...........................

United

States

50,000

44,955

Western

Midstream

Operating

LP

,

Senior

Note

,

3.6

%

,

2/01/25

....

United

States

10,000

9,232

Williams

Cos.,

Inc.

(The)

,

Senior

Bond,

3.75%,

6/15/27

...........................

United

States

60,000

57,348

Senior

Bond,

5.1%,

9/15/45

............................

United

States

30,000

28,010

4,648,218

Paper

&

Forest

Products

0.1%

Suzano

Austria

GmbH

,

Senior

Bond,

3.75%,

1/15/31

...........................

Brazil

225,000

182,297

Senior

Note,

6%,

1/15/29

.............................

Brazil

200,000

198,657

380,954

Pharmaceuticals

0.2%

AstraZeneca

plc

,

Senior

Bond,

4%,

9/18/42

.............................

United

Kingdom

200,000

184,629

Senior

Bond,

4.375%,

11/16/45

.........................

United

Kingdom

450,000

434,183

Bristol-Myers

Squibb

Co.

,

Senior

Bond,

4.55%,

2/20/48

...........................

United

States

10,000

9,810

Senior

Note,

2.9%,

7/26/24

............................

United

States

30,000

29,744

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-33

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Pharmaceuticals

(continued)

Bristol-Myers

Squibb

Co.,

(continued)

Senior

Note,

3.2%,

6/15/26

............................

United

States

10,000

$

9,876

Senior

Note,

3.4%,

7/26/29

............................

United

States

10,000

9,661

Johnson

&

Johnson

,

Senior

Bond,

2.1%,

9/01/40

............................

United

States

30,000

21,972

Senior

Bond,

3.7%,

3/01/46

............................

United

States

10,000

9,229

Merck

&

Co.,

Inc.

,

Senior

Bond,

1.45%,

6/24/30

...........................

United

States

10,000

8,317

Senior

Bond,

2.75%,

12/10/51

..........................

United

States

30,000

22,212

Senior

Note,

0.75%,

2/24/26

...........................

United

States

20,000

18,145

Pfizer,

Inc.

,

Senior

Bond,

1.7%,

5/28/30

............................

United

States

30,000

25,552

Senior

Bond,

2.55%,

5/28/40

...........................

United

States

30,000

23,512

Senior

Bond,

2.7%,

5/28/50

............................

United

States

30,000

22,893

Takeda

Pharmaceutical

Co.

Ltd.

,

Senior

Bond

,

3.175

%

,

7/09/50

..

Japan

400,000

300,038

1,129,773

Road

&

Rail

0.2%

Burlington

Northern

Santa

Fe

LLC

,

Senior

Bond,

4.9%,

4/01/44

............................

United

States

200,000

201,397

Senior

Bond,

2.875%,

6/15/52

..........................

United

States

10,000

7,490

Canadian

Pacific

Railway

Co.

,

Senior

Bond,

2.45%,

12/02/31

..........................

Canada

70,000

59,965

Senior

Bond,

3%,

12/02/41

............................

Canada

20,000

15,680

CSX

Corp.

,

Senior

Bond,

3.8%,

11/01/46

...........................

United

States

200,000

169,931

Senior

Bond,

4.75%,

11/15/48

..........................

United

States

525,000

513,969

Union

Pacific

Corp.

,

Senior

Bond,

2.4%,

2/05/30

............................

United

States

10,000

8,851

Senior

Bond,

2.891%,

4/06/36

..........................

United

States

10,000

8,282

Senior

Bond,

3.839%,

3/20/60

..........................

United

States

10,000

8,373

Senior

Bond,

3.75%,

2/05/70

...........................

United

States

20,000

15,922

Senior

Note,

3.75%,

7/15/25

...........................

United

States

10,000

10,022

Senior

Note,

2.15%,

2/05/27

...........................

United

States

10,000

9,273

1,029,155

Semiconductors

&

Semiconductor

Equipment

0.1%

Applied

Materials,

Inc.

,

Senior

Bond

,

1.75

%

,

6/01/30

...........

United

States

20,000

16,845

b

Broadcom,

Inc.

,

Senior

Bond

,

144A,

3.137

%

,

11/15/35

.........

United

States

80,000

60,861

Intel

Corp.

,

Senior

Bond,

3.05%,

8/12/51

...........................

United

States

40,000

29,866

Senior

Note,

1.6%,

8/12/28

............................

United

States

10,000

8,760

KLA

Corp.

,

Senior

Bond

,

4.65

%

,

7/15/32

....................

United

States

10,000

10,208

NVIDIA

Corp.

,

Senior

Bond,

2.85%,

4/01/30

...........................

United

States

10,000

9,164

Senior

Bond,

3.5%,

4/01/40

............................

United

States

20,000

17,543

Senior

Bond,

3.5%,

4/01/50

............................

United

States

40,000

34,048

Senior

Bond,

3.7%,

4/01/60

............................

United

States

20,000

16,835

NXP

BV

/

NXP

Funding

LLC

/

NXP

USA,

Inc.

,

Senior

Note

,

2.7

%

,

5/01/25

...........................................

China

10,000

9,516

Texas

Instruments,

Inc.

,

Senior

Bond,

1.75%,

5/04/30

...........................

United

States

10,000

8,587

Senior

Bond,

3.875%,

3/15/39

..........................

United

States

10,000

9,438

Senior

Bond,

4.15%,

5/15/48

...........................

United

States

20,000

19,232

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-34

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Semiconductors

&

Semiconductor

Equipment

(continued)

TSMC

Arizona

Corp.

,

Senior

Bond

,

2.5

%

,

10/25/31

............

Taiwan

200,000

$

171,746

422,649

Software

0.1%

Adobe,

Inc.

,

Senior

Bond

,

2.3

%

,

2/01/30

....................

United

States

20,000

17,679

Microsoft

Corp.

,

Senior

Bond,

3.3%,

2/06/27

............................

United

States

80,000

79,545

Senior

Bond,

2.921%,

3/17/52

..........................

United

States

20,000

15,808

Senior

Note,

2.65%,

11/03/22

..........................

United

States

420,000

420,354

Oracle

Corp.

,

Senior

Bond,

2.875%,

3/25/31

..........................

United

States

50,000

41,245

Senior

Note,

1.65%,

3/25/26

...........................

United

States

50,000

44,872

Salesforce,

Inc.

,

Senior

Bond

,

3.7

%

,

4/11/28

.................

United

States

20,000

19,786

ServiceNow

,

Inc.

,

Senior

Bond

,

1.4

%

,

9/01/30

................

United

States

150,000

117,525

Workday,

Inc.

,

Senior

Bond,

3.8%,

4/01/32

............................

United

States

20,000

18,296

Senior

Note,

3.5%,

4/01/27

............................

United

States

10,000

9,571

Senior

Note,

3.7%,

4/01/29

............................

United

States

20,000

18,727

803,408

Specialty

Retail

0.0%

†

AutoZone,

Inc.

,

Senior

Bond

,

1.65

%

,

1/15/31

.................

United

States

265,000

208,067

Home

Depot,

Inc.

(The)

,

Senior

Bond,

2.7%,

4/15/30

............................

United

States

10,000

9,079

Senior

Bond,

3.3%,

4/15/40

............................

United

States

10,000

8,507

Senior

Bond,

3.35%,

4/15/50

...........................

United

States

20,000

16,286

Senior

Note,

2.5%,

4/15/27

............................

United

States

10,000

9,449

Lowe's

Cos.,

Inc.

,

Senior

Bond,

4.5%,

4/15/30

............................

United

States

10,000

9,890

Senior

Note,

1.7%,

9/15/28

............................

United

States

20,000

17,044

278,322

Technology

Hardware,

Storage

&

Peripherals

0.0%

†

Apple,

Inc.

,

Senior

Bond,

2.45%,

8/04/26

...........................

United

States

40,000

38,340

Senior

Bond,

3.85%,

8/04/46

...........................

United

States

10,000

9,170

Senior

Bond,

2.8%,

2/08/61

............................

United

States

300,000

215,809

263,319

Textiles,

Apparel

&

Luxury

Goods

0.0%

†

NIKE,

Inc.

,

Senior

Bond,

2.85%,

3/27/30

...........................

United

States

10,000

9,194

Senior

Bond,

3.25%,

3/27/40

...........................

United

States

10,000

8,577

Senior

Note,

2.75%,

3/27/27

...........................

United

States

10,000

9,631

27,402

Thrifts

&

Mortgage

Finance

0.1%

b

BPCE

SA

,

Sub.

Bond

,

144A,

5.15

%

,

7/21/24

.................

France

600,000

600,474

Radian

Group,

Inc.

,

Senior

Note

,

4.875

%

,

3/15/27

.............

United

States

150,000

134,659

735,133

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-35

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Tobacco

0.1%

Altria

Group,

Inc.

,

Senior

Bond,

4.8%,

2/14/29

............................

United

States

30,000

$

28,542

Senior

Bond,

5.8%,

2/14/39

............................

United

States

20,000

18,206

Senior

Bond,

5.95%,

2/14/49

...........................

United

States

50,000

43,921

BAT

Capital

Corp.

,

Senior

Bond,

4.54%,

8/15/47

...........................

United

Kingdom

20,000

14,699

Senior

Note,

3.557%,

8/15/27

..........................

United

Kingdom

50,000

45,782

b

Imperial

Brands

Finance

plc

,

Senior

Bond

,

144A,

4.25

%

,

7/21/25

.

United

Kingdom

285,000

282,509

Philip

Morris

International,

Inc.

,

Senior

Bond,

2.1%,

5/01/30

............................

United

States

20,000

16,403

Senior

Bond,

4.5%,

3/20/42

............................

United

States

10,000

8,678

458,740

Trading

Companies

&

Distributors

0.0%

†

Air

Lease

Corp.

,

Senior

Note

,

3.375

%

,

7/01/25

...............

United

States

20,000

18,855

Transportation

Infrastructure

0.0%

†

b

DP

World

Ltd.

,

Senior

Bond

,

144A,

5.625

%

,

9/25/48

...........

United

Arab

Emirates

200,000

187,951

Wireless

Telecommunication

Services

0.2%

b

Rogers

Communications,

Inc.

,

Senior

Bond

,

144A,

4.55

%

,

3/15/52

Canada

180,000

158,493

T-Mobile

USA,

Inc.

,

Senior

Secured

Bond,

2.25%,

11/15/31

...................

United

States

50,000

40,629

Senior

Secured

Bond,

3%,

2/15/41

......................

United

States

10,000

7,473

Senior

Secured

Bond,

3.3%,

2/15/51

.....................

United

States

200,000

146,071

Senior

Secured

Note,

3.5%,

4/15/25

.....................

United

States

20,000

19,586

Senior

Secured

Note,

3.75%,

4/15/27

....................

United

States

325,000

313,213

Senior

Secured

Note,

3.875%,

4/15/30

...................

United

States

80,000

74,735

Vodafone

Group

plc

,

Senior

Bond

,

6.15

%

,

2/27/37

.............

United

Kingdom

200,000

216,187

976,387

Total

Corporate

Bonds

(Cost

$66,367,554)

......................................

60,135,362

Foreign

Government

and

Agency

Securities

1.9%

b

African

Export-Import

Bank

(The)

,

Senior

Bond

,

144A,

3.994

%

,

9/21/29

...........................................

Supranational

e

500,000

430,704

b

Australia

Government

Bond

,

Reg

S,

5.75

%

,

7/15/22

...........

Australia

380,000

AUD

262,687

b

Banque

Ouest

Africaine

de

Developpement

,

Senior

Bond

,

144A,

5

%

,

7/27/27

...........................................

Supranational

e

300,000

274,134

Brazil

Notas

do

Tesouro

Nacional

,

10%,

1/01/27

.......................................

Brazil

1,680,000

BRL

292,323

10%,

1/01/29

.......................................

Brazil

480,000

BRL

80,662

10%,

1/01/31

.......................................

Brazil

510,000

BRL

83,431

10%,

1/01/33

.......................................

Brazil

1,030,000

BRL

165,141

Colombia

Government

Bond

,

Senior

Bond,

3.25%,

4/22/32

...........................

Colombia

200,000

145,017

Senior

Bond,

5%,

6/15/45

.............................

Colombia

500,000

336,025

Colombia

Titulos

de

Tesoreria

,

B,

6.25%,

11/26/25

...................................

Colombia

740,000,000

COP

156,638

B,

6%,

4/28/28

......................................

Colombia

1,220,000,000

COP

231,109

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-36

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

b

Comision

Federal

de

Electricidad

,

Senior

Bond

,

144A,

3.348

%

,

2/09/31

...........................................

Mexico

300,000

$

230,114

b

Corp.

Nacional

del

Cobre

de

Chile

,

Senior

Bond

,

144A,

3.7

%

,

1/30/50

...........................................

Chile

200,000

149,503

Ecopetrol

SA

,

Senior

Bond

,

5.875

%

,

5/28/45

.................

Colombia

150,000

102,375

b

Electricite

de

France

SA

,

Senior

Bond

,

144A,

4.5

%

,

9/21/28

.....

France

655,000

637,029

b

Export-Import

Bank

of

India

,

Senior

Bond

,

144A,

3.25

%

,

1/15/30

..

India

200,000

174,165

b

France

Government

Bond

,

Reg

S,

Zero

Cpn

.,

5/25/32

.............................

France

680,000

EUR

589,238

Reg

S,

0.75%,

5/25/52

................................

France

300,000

EUR

200,471

Israel

Government

Bond

,

Senior

Bond

,

2.75

%

,

7/03/30

.........

Israel

200,000

185,723

Korea

Treasury

Bond

,

Senior

Bond,

2%,

6/10/31

.............................

South

Korea

900,000,000

KRW

609,495

Senior

Bond,

1.875%,

3/10/51

..........................

South

Korea

360,000,000

KRW

197,812

Malaysia

Government

Bond

,

3.48%,

3/15/23

.....................................

Malaysia

690,000

MYR

157,148

3.955%,

9/15/25

.....................................

Malaysia

260,000

MYR

59,385

3.899%,

11/16/27

....................................

Malaysia

500,000

MYR

112,244

Mexican

Bonos

Desarr

Fixed

Rate

,

M,

8%,

11/07/47

.....................................

Mexico

1,800,000

f

MXN

79,893

M,

8%,

7/31/53

.....................................

Mexico

2,700,000

f

MXN

117,873

M,

Senior

Bond,

7.75%,

11/13/42

........................

Mexico

6,700,000

f

MXN

291,498

M

20,

Senior

Bond,

8.5%,

5/31/29

.......................

Mexico

6,400,000

f

MXN

309,181

M

30,

Senior

Bond,

8.5%,

11/18/38

......................

Mexico

6,800,000

f

MXN

321,025

Mexico

Government

Bond

,

Senior

Bond

,

4.75

%

,

3/08/44

........

Mexico

300,000

250,587

New

South

Wales

Treasury

Corp.

,

Senior

Note

,

4

%

,

4/20/23

.....

Australia

80,000

AUD

55,906

Panama

Government

Bond

,

Senior

Bond

,

2.252

%

,

9/29/32

......

Panama

200,000

156,431

Panama

Notas

del

Tesoro

,

Senior

Note

,

3.75

%

,

4/17/26

........

Panama

450,000

437,625

b

Pertamina

Persero

PT

,

Senior

Bond

,

144A,

4.7

%

,

7/30/49

.......

Indonesia

200,000

165,819

Peru

Government

Bond

,

Senior

Bond,

2.783%,

1/23/31

..........................

Peru

200,000

170,530

Senior

Bond,

6.55%,

3/14/37

...........................

Peru

200,000

217,419

b

Perusahaan

Perseroan

Persero

PT

Perusahaan

Listrik

Negara

,

Senior

Bond

,

Reg

S,

5.25

%

,

10/24/42

....................

Indonesia

200,000

171,995

b

Petroleos

del

Peru

SA

,

Senior

Bond

,

144A,

4.75

%

,

6/19/32

......

Peru

200,000

154,925

Petroleos

Mexicanos

,

Senior

Bond

,

6.625

%

,

6/15/35

...........

Mexico

100,000

68,508

Philippines

Government

Bond

,

Senior

Bond

,

3.95

%

,

1/20/40

.....

Philippines

310,000

270,438

Poland

Government

Bond

,

4%,

10/25/23

.......................................

Poland

420,000

PLN

89,905

Senior

Bond,

4%,

1/22/24

.............................

Poland

70,000

70,108

b

Queensland

Treasury

Corp.

,

Senior

Bond

,

144A,

Reg

S,

4.25

%

,

7/21/23

...........................................

Australia

170,000

AUD

119,133

b

Romania

Government

Bond

,

Senior

Bond

,

144A,

5.125

%

,

6/15/48

.

Romania

200,000

155,887

South

Africa

Government

Bond

,

Senior

Bond,

6.5%,

2/28/41

............................

South

Africa

6,300,000

ZAR

237,894

Senior

Bond,

8.75%,

2/28/48

...........................

South

Africa

5,200,000

ZAR

246,857

b

United

Kingdom

Gilt

,

Reg

S,

0.25

%

,

7/31/31

.................

United

Kingdom

570,000

GBP

581,672

Uruguay

Government

Bond

,

Senior

Bond

,

4.375

%

,

1/23/31

......

Uruguay

200,000

202,562

Western

Australian

Treasury

Corp.

,

Senior

Bond

,

6

%

,

10/16/23

...

Australia

180,000

AUD

128,943

Total

Foreign

Government

and

Agency

Securities

(Cost

$11,886,609)

..............

10,935,187

U.S.

Government

and

Agency

Securities

19.2%

U.S.

Treasury

Bonds

,

6%,

2/15/26

........................................

United

States

705,000

776,078

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-37

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

U.S.

Government

and

Agency

Securities

(continued)

U.S.

Treasury

Bonds,

(continued)

1.125%,

8/15/40

.....................................

United

States

332,000

$

229,508

1.375%,

11/15/40

....................................

United

States

1,771,000

1,276,158

2%,

11/15/41

.......................................

United

States

360,000

286,059

2.875%,

5/15/43

.....................................

United

States

3,370,000

3,075,915

3.125%,

8/15/44

.....................................

United

States

725,000

687,391

2.5%,

5/15/46

......................................

United

States

945,000

801,700

2.25%,

8/15/46

.....................................

United

States

3,305,000

2,667,561

3.375%,

11/15/48

....................................

United

States

3,300,000

3,354,527

3%,

2/15/49

........................................

United

States

1,713,000

1,633,172

2.25%,

8/15/49

.....................................

United

States

150,000

123,146

1.25%,

5/15/50

.....................................

United

States

1,620,000

1,031,421

1.375%,

8/15/50

.....................................

United

States

595,000

391,921

2.375%,

5/15/51

.....................................

United

States

1,794,000

1,515,159

2%,

8/15/51

........................................

United

States

480,000

371,194

1.875%,

11/15/51

....................................

United

States

1,275,000

957,047

2.25%,

2/15/52

.....................................

United

States

320,000

263,450

2.875%,

5/15/52

.....................................

United

States

5,520,000

5,215,106

U.S.

Treasury

Notes

,

1.5%,

3/31/23

......................................

United

States

465,000

460,603

2.125%,

11/30/23

....................................

United

States

1,120,000

1,107,334

2.125%,

3/31/24

.....................................

United

States

6,750,000

6,652,178

2%,

4/30/24

........................................

United

States

1,345,000

1,321,830

2.5%,

5/15/24

......................................

United

States

5,710,000

5,660,484

2%,

5/31/24

........................................

United

States

1,705,000

1,674,363

2.5%,

5/31/24

......................................

United

States

5,260,000

5,212,948

2%,

6/30/24

........................................

United

States

2,255,000

2,212,807

1.75%,

7/31/24

.....................................

United

States

13,225,000

12,895,925

2.375%,

8/15/24

.....................................

United

States

1,640,000

1,618,795

1.25%,

8/31/24

.....................................

United

States

700,000

674,488

1.5%,

10/31/24

.....................................

United

States

2,920,000

2,821,792

1.5%,

11/30/24

......................................

United

States

510,000

492,090

0.25%,

6/30/25

.....................................

United

States

600,000

552,504

0.25%,

9/30/25

.....................................

United

States

310,000

283,269

0.375%,

11/30/25

....................................

United

States

5,143,000

4,698,613

0.875%,

6/30/26

.....................................

United

States

975,000

895,172

1.875%,

7/31/26

.....................................

United

States

389,000

371,655

1.25%,

12/31/26

.....................................

United

States

2,680,000

2,477,377

2.375%,

5/15/27

.....................................

United

States

3,140,000

3,040,403

0.5%,

6/30/27

......................................

United

States

8,585,000

7,568,382

2.25%,

11/15/27

.....................................

United

States

5,000,000

4,794,727

g

Index

Linked,

0.5%,

1/15/28

............................

United

States

1,300,000

1,514,101

1.25%,

4/30/28

.....................................

United

States

1,700,000

1,533,719

3.125%,

11/15/28

....................................

United

States

320,000

320,737

3.25%,

6/30/29

.....................................

United

States

320,000

323,825

1.625%,

8/15/29

.....................................

United

States

2,565,000

2,335,953

0.625%,

8/15/30

.....................................

United

States

1,550,000

1,285,410

1.25%,

8/15/31

.....................................

United

States

125,000

107,637

1.375%,

11/15/31

....................................

United

States

2,300,000

1,995,250

1.875%,

2/15/32

.....................................

United

States

320,000

289,950

h

FRN,

1.793%,

(3-month

U.S.

Treasury

Bill

Rate

+

0.035%),

10/31/23

..........................................

United

States

5,490,000

5,503,826

h

FRN,

1.683%,

(3-month

U.S.

Treasury

Bill

Rate

+

(0.075)%),

4/30/24

...........................................

United

States

3,190,000

3,187,824

Total

U.S.

Government

and

Agency

Securities

(Cost

$120,193,731)

................

110,542,484

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-38

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Asset-Backed

Securities

0.6%

Airlines

0.1%

American

Airlines

Pass-Through

Trust

,

2016-3

,

A

,

3.25

%

,

10/15/28

.

United

States

410,758

$

344,280

United

Airlines

Pass-Through

Trust

,

2016-1,

A,

3.45%,

7/07/28

.............................

United

States

76,256

66,266

2019-2,

A,

2.9%,

5/01/28

..............................

United

States

90,448

79,646

2020-1,

B,

4.875%,

7/15/27

............................

United

States

249,000

236,825

727,017

a

a

a

a

a

a

Banks

0.1%

Capital

One

Multi-Asset

Execution

Trust

,

2017-A6

,

A6

,

2.29

%

,

7/15/25

.

...........................................

United

States

600,000

600,363

Diversified

Financial

Services

0.4%

i

Asset-Backed

Securities

Corp.

Home

Equity

Loan

Trust

,

2006-HE3

,

A5

,

FRN

,

2.164

%

,

(

1-month

USD

LIBOR

+

0.54

%

),

3/25/36

.

....

United

States

98,214

95,171

b,i

Carlyle

Global

Market

Strategies

CLO

Ltd.

,

2013-4A

,

A1RR

,

144A,

FRN

,

2.044

%

,

(

3-month

USD

LIBOR

+

1

%

),

1/15/31

.

.........

United

States

246,369

241,975

i

First

Frankin

Mortgage

Loan

Trust

,

2006-FF4

,

A3

,

FRN

,

2.184

%

,

(

1-month

USD

LIBOR

+

0.56

%

),

3/25/36

.

..................

United

States

95,690

94,546

b

MVW

LLC

,

2021-1WA

,

A

,

144A,

1.14

%

,

1/22/41

.

..............

United

States

105,973

98,630

b,i

Neuberger

Berman

Loan

Advisers

CLO

40

Ltd.

,

2021-40A

,

A

,

144A,

FRN

,

2.104

%

,

(

3-month

USD

LIBOR

+

1.06

%

),

4/16/33

.

.......

United

States

500,000

489,888

b

New

Economy

Assets

Phase

1

Sponsor

LLC

,

2021-1

,

A1

,

144A,

1.91

%

,

10/20/61

.

....................................

United

States

490,000

428,300

b,i

Octagon

Investment

Partners

XXI

Ltd.

,

2014-1A

,

AAR3

,

144A,

FRN

,

2.411

%

,

(

3-month

USD

LIBOR

+

1

%

),

2/14/31

.

..............

United

States

250,000

244,343

b,i

Palmer

Square

CLO

Ltd.

,

2014-1A

,

A1R2

,

144A,

FRN

,

2.174

%

,

(

3-month

USD

LIBOR

+

1.13

%

),

1/17/31

.

..................

United

States

250,000

246,930

b,i

Reese

Park

CLO

Ltd.

,

2020-1A

,

AR

,

144A,

FRN

,

2.174

%

,

(

3-month

USD

LIBOR

+

1.13

%

),

10/15/34

.

........................

United

States

180,000

174,301

b,i

Symphony

CLO

XV

Ltd.

,

2014-15A

,

AR3

,

144A,

FRN

,

2.124

%

,

(

3-month

USD

LIBOR

+

1.08

%

),

1/17/32

.

..................

United

States

250,000

245,000

2,359,084

a

a

a

a

a

a

Total

Asset-Backed

Securities

(Cost

$3,812,996)

................................

3,686,464

Commercial

Mortgage-Backed

Securities

0.3%

Diversified

Financial

Services

0.3%

BANK

,

2021-BN33

,

A5

,

2.556

%

,

5/15/64

....................

United

States

210,000

183,460

b,i

BX

Commercial

Mortgage

Trust

,

2021-VOLT,

B,

144A,

FRN,

2.274%,

(1-month

USD

LIBOR

+

0.95%),

9/15/36

.....................................

United

States

250,000

235,418

2022-LP2,

A,

144A,

FRN,

2.347%,

(1-month

SOFR

+

1.013%),

2/15/39

...........................................

United

States

214,780

206,632

b,i

BX

Mortgage

Trust

,

2021-PAC

,

A

,

144A,

FRN

,

2.014

%

,

(

1-month

USD

LIBOR

+

0.689

%

),

10/15/36

........................

United

States

230,000

218,758

b,i

BX

Trust

,

2022-IND

,

A

,

144A,

FRN

,

2.825

%

,

(

1-month

SOFR

+

1.491

%

),

4/15/37

....................................

United

States

400,000

390,114

b,i

MTN

Commercial

Mortgage

Trust

,

2022-LPFL

,

A

,

144A,

FRN

,

2.676

%

,

(

1-month

SOFR

+

1.397

%

),

3/15/39

...............

United

States

100,000

98,399

1,332,781

a

a

a

a

a

a

Thrifts

&

Mortgage

Finance

0.0%

†

j,k

BBCMS

Mortgage

Trust

,

2017-C1

,

XA

,

IO,

FRN

,

1.602

%

,

2/15/50

.

United

States

1,811,140

92,010

Total

Commercial

Mortgage-Backed

Securities

(Cost

$1,488,536)

.................

1,424,791

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-39

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Mortgage-Backed

Securities

3.9%

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Fixed

Rate

0.9%

FHLMC

Gold

Pools,

30

Year,

4.5%,

1/01/49

..................

United

States

393,996

$

403,306

FHLMC

Pool,

15

Year,

2.5%,

4/01/37

.......................

United

States

262,569

251,087

FHLMC

Pool,

15

Year,

3%,

8/01/34

........................

United

States

48,721

48,155

FHLMC

Pool,

30

Year,

2.5%,

5/01/51

.......................

United

States

88,570

79,857

FHLMC

Pool,

30

Year,

3%,

3/01/50

-

4/01/52

.................

United

States

817,770

765,635

FHLMC

Pool,

30

Year,

3.5%,

2/01/47

-

4/01/50

...............

United

States

1,830,217

1,782,654

FHLMC

Pool,

30

Year,

4%,

5/01/47

-

6/01/52

.................

United

States

859,278

861,491

FHLMC

Pool,

30

Year,

4.5%,

10/01/48

-

9/01/50

..............

United

States

615,975

627,246

4,819,431

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

2.8%

FNMA,

15

Year,

2%,

8/01/36

-

12/01/36

.....................

United

States

1,073,694

1,003,706

FNMA,

15

Year,

2.5%,

7/01/36

...........................

United

States

905,799

866,464

FNMA,

30

Year,

2%,

5/01/51

-

2/01/52

......................

United

States

3,995,420

3,482,080

l

FNMA,

30

Year,

2.5%,

12/01/50

-

12/01/51

..................

United

States

3,846,333

3,473,213

FNMA,

30

Year,

3%,

8/01/50

-

11/01/51

.....................

United

States

2,446,749

2,296,209

FNMA,

30

Year,

3.5%,

6/01/49

...........................

United

States

308,723

303,201

FNMA,

30

Year,

4%,

2/01/49

-

6/01/52

......................

United

States

960,983

955,361

FNMA,

30

Year,

4.5%,

2/01/50

...........................

United

States

190,044

193,517

m

FNMA,

Single-family,

30

Year,

3%,

7/25/52

..................

United

States

900,000

838,477

m

FNMA,

Single-family,

30

Year,

3.5%,

7/25/52

.................

United

States

1,750,000

1,683,418

m

FNMA,

Single-family,

30

Year,

4%,

8/25/52

..................

United

States

200,000

196,941

m

FNMA,

Single-family,

30

Year,

4.5%,

9/25/52

.................

United

States

500,000

500,026

m,n

FNMA,

Single-family,

30

Year,

5%,

9/25/52

..................

United

States

200,000

203,192

15,995,805

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

0.2%

GNMA

II,

Single-family,

30

Year,

3.5%,

2/20/52

-

8/15/52

........

United

States

397,193

386,084

m

GNMA

II,

Single-family,

30

Year,

4%,

8/15/52

.................

United

States

400,000

397,492

m

GNMA

II,

Single-family,

30

Year,

4.5%,

8/15/52

...............

United

States

400,000

404,469

m

GNMA

II,

Single-family,

30

Year,

5%,

8/15/52

.................

United

States

100,000

102,109

1,290,154

Total

Mortgage-Backed

Securities

(Cost

$23,434,438)

............................

22,105,390

Municipal

Bonds

0.9%

Arizona

0.1%

Maricopa

County

Union

High

School

District

No.

210-Phoenix

,

GO

,

2020

C

,

5

%

,

7/01/31

.................................

United

States

200,000

228,499

California

0.5%

California

Health

Facilities

Financing

Authority

,

State

of

California

Personal

Income

Tax,

Revenue,

Senior

Lien,

2019,

2.934%,

6/01/32

..............................

United

States

65,000

57,873

State

of

California

Personal

Income

Tax,

Revenue,

Senior

Lien,

2019,

2.984%,

6/01/33

..............................

United

States

55,000

48,410

State

of

California

Personal

Income

Tax,

Revenue,

Senior

Lien,

2019,

3.034%,

6/01/34

..............................

United

States

40,000

34,780

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-40

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

California

State

University

,

Revenue

,

2021

B

,

Refunding

,

2.719

%

,

11/01/52

..........................................

United

States

200,000

$

149,260

Clovis

Unified

School

District

,

GO

,

2021

B

,

Refunding

,

3.067

%

,

8/01/39

...........................................

United

States

1,045,000

868,128

Foothill-Eastern

Transportation

Corridor

Agency

,

Revenue

,

2019

A

,

Refunding

,

4.094

%

,

1/15/49

............................

United

States

35,000

30,725

Gilroy

Unified

School

District

,

GO

,

2019

,

Refunding

,

3.364

%

,

8/01/47

United

States

140,000

111,434

Golden

State

Tobacco

Securitization

Corp.

,

Revenue

,

2021

B-1

,

Refunding

,

3.85

%

,

6/01/50

.............................

United

States

540,000

487,728

San

Bernardino

Community

College

District

,

GO,

2021,

Refunding,

2.686%,

8/01/41

...................

United

States

485,000

376,955

GO,

2021,

Refunding,

2.856%,

8/01/49

...................

United

States

285,000

205,061

State

of

California

,

GO

,

2.5

%

,

10/01/29

.....................

United

States

500,000

458,780

2,829,134

Florida

0.1%

County

of

Broward

,

Airport

System

,

Revenue

,

2019

C

,

Refunding

,

3.477

%

,

10/01/43

....................................

United

States

70,000

59,125

County

of

Sarasota

,

Half-Cent

Sales

Tax

,

Revenue

,

2020

,

5

%

,

10/01/34

..........................................

United

States

500,000

573,572

632,697

Illinois

0.0%

†

State

of

Illinois

,

GO

,

2003

,

5.1

%

,

6/01/33

...................

United

States

125,000

125,912

Massachusetts

0.0%

†

Massachusetts

State

College

Building

Authority

,

Revenue

,

2019

C

,

Refunding

,

3.373

%

,

5/01/43

............................

United

States

230,000

191,267

New

York

0.0%

†

Metropolitan

Transportation

Authority

,

Revenue

,

2020

E

,

Refunding

,

4

%

,

11/15/45

.......................................

United

States

95,000

85,501

Ohio

0.0%

†

Greenville

City

School

District

,

GO

,

2019

,

Refunding

,

3.541

%

,

1/01/51

...........................................

United

States

160,000

134,282

Pennsylvania

0.1%

Commonwealth

Financing

Authority

,

Revenue

,

2021

A

,

2.991

%

,

6/01/42

...........................................

United

States

625,000

499,363

University

of

Pittsburgh-of

the

Commonwealth

System

of

Higher

Education

,

Revenue

,

2017

C

,

Refunding

,

3.005

%

,

9/15/41

.....

United

States

250,000

202,751

702,114

Texas

0.1%

City

of

Austin

,

Electric

Utility

,

Revenue

,

2008

,

Refunding

,

AGMC

Insured

,

6.262

%

,

11/15/32

.............................

United

States

335,000

380,160

Total

Municipal

Bonds

(Cost

$6,201,051)

.......................................

5,309,566

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-41

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Residential

Mortgage-Backed

Securities

0.0%

†

Diversified

Financial

Services

0.0%

†

b,k

PRKCM

Trust

,

2021-AFC2

,

A1

,

144A,

FRN

,

2.071

%

,

11/25/56

....

United

States

93,999

$

80,612

b,k

Verus

Securitization

Trust

,

2022-6

,

A3

,

144A,

FRN

,

4.91

%

,

6/25/67

United

States

100,000

96,655

177,267

a

a

a

a

a

a

Total

Residential

Mortgage-Backed

Securities

(Cost

$176,011)

....................

177,267

Total

Long

Term

Investments

(Cost

$561,152,209)

...............................

551,604,612

a

Number

of

Contracts

Notional

Amount

#

a

a

a

aa

Options

Purchased

0.0%

†

Calls

-

Exchange-Traded

Options

on

Interest

Rate

Futures

U.S.

Treasury

10

Year

Notes

Futures,

July

Strike

Price

$117.00,

Expires

7/22/22

.....................................

2

200,000

3,844

U.S.

Treasury

30

Year

Bonds

Futures,

July

Strike

Price

$134.50,

Expires

7/22/22

.....................................

1

100,000

4,625

8,469

Total

Options

Purchased

(Cost

$5,380)

.........................................

8,469

Short

Term

Investments

5.2%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

5.2%

o

BNY

Mellon

Institutional

Cash

Reserve

Fund

(The)

............

United

States

324,051

324,051

o,p

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

....

United

States

13,636,013

13,636,013

o

JPMorgan

100%

U.S.

Treasury

Securities

Money

Market

Fund,

0.56%

............................................

United

States

3,425,459

3,425,459

o,p

Western

Asset

Premier

Institutional

Government

Reserves,

1.4%

.

United

States

11,529,697

11,529,697

o,p

Western

Asset

Premier

Institutional

U.S.

Treasury

Reserves,

0.9%

United

States

856,365

856,365

Total

Money

Market

Funds

(Cost

$29,771,584)

..................................

29,771,585

Total

Short

Term

Investments

(Cost

$29,771,584

)

................................

29,771,585

a

Total

Investments

(Cost

$590,929,173)

101.2%

..................................

$581,384,666

Options

Written

(0.0)%

†

......................................................

(50,258)

Other

Assets,

less

Liabilities

(1.2)%

...........................................

(6,459,363)

Net

Assets

100.0%

...........................................................

$574,875,045

Number

of

Contracts

Notional

Amount

#

a

a

a

q

Options

Written

(0.0)%

†

Calls

-

Exchange-Traded

Options

on

Interest

Rate

Futures

90-Day

Eurodollar

Futures,

December

Strike

Price

$96.50,

Expires

12/19/22

..........................................

8

2,0

00,000

(5,750)

U.S.

Treasury

10

Year

Notes

Futures,

July

Strike

Price

$116.50,

Expires

7/22/22

.....................................

1

100,000

(2,313)

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-42

a

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

a

a

q

Options

Written

(continued)

Calls

-

Exchange-Traded

(continued)

Options

on

Interest

Rate

Futures

(continued)

U.S.

Treasury

10

Year

Notes

Futures,

July

Strike

Price

$117.50,

Expires

7/22/22

.....................................

3

300,000

$

(4,687)

U.S.

Treasury

10

Year

Notes

Futures,

July

Strike

Price

$118.00,

Expires

7/22/22

.....................................

14

1,400,000

(17,281)

U.S.

Treasury

10

Year

Notes

Futures,

July

Strike

Price

$120.00,

Expires

7/22/22

.....................................

1

100,000

(391)

U.S.

Treasury

30

Year

Bonds

Futures,

July

Strike

Price

$138.00,

Expires

7/22/22

.....................................

1

10

0,000

(2,172)

U.S.

Treasury

30

Year

Bonds

Futures,

July

Strike

Price

$139.00,

Expires

7/22/22

.....................................

1

100,000

(1,656)

U.S.

Treasury

5

Year

Notes

Futures,

July

Strike

Price

$111.00,

Expires

7/22/22

.....................................

1

100,000

(1,461)

U.S.

Treasury

5

Year

Notes

Futures,

July

Strike

Price

$111.50,

Expires

7/22/22

.....................................

4

400,000

(4,344)

U.S.

Treasury

5

Year

Notes

Futures,

July

Strike

Price

$112.00,

Expires

7/22/22

.....................................

12

1,200,000

(9,281)

(49,336)

Puts

-

Exchange-Traded

Options

on

Interest

Rate

Futures

U.S.

Treasury

10

Year

Notes

Futures

,

July

Strike

Price

$117.00,

Expires

7/22/22

.....................................

1

100,000

(391)

U.S.

Treasury

10

Year

Notes

Futures

,

July

Strike

Price

$117.50,

Expires

7/01/22

.....................................

1

1

00

,000

(31)

U.S.

Treasury

30

Year

Bonds

Futures

,

July

Strike

Price

$134.00,

Expires

7/22/22

.....................................

1

100,000

(422)

U.S.

Treasury

5

Year

Notes

Futures

,

July

Strike

Price

$110.00,

Expires

7/22/22

.....................................

1

100,000

(78)

(922)

Total

Options

Written

(Premiums

received

$33,156)

.............................

$

(50,258)

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-43

#

Notional

amount

is

the

number

of

units

specified

in

the

contract,

and

can

include

currency

units,

bushels,

shares,

pounds,

barrels

or

other

units.

Currency

units

are

stated

in

U.S.

dollars

unless

otherwise

indicated.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2022,

the

aggregate

value

of

these

securities

was

$22,904,060,

representing

4.0%

of

net

assets.

c

Variable

rate

security.

The

rate

shown

represents

the

yield

at

period

end.

d

Perpetual

security

with

no

stated

maturity

date.

e

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

f

Principal

amount

is

stated

in

100

Mexican

Peso

Units.

g

Principal

amount

of

security

is

adjusted

for

inflation.

See

Note

1(g).

h

The

coupon

rate

shown

represents

the

rate

at

period

end.

i

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

j

Investment

in

an

interest-only

security

entitles

holders

to

receive

only

the

interest

payment

on

the

underlying

instruments.

The

principal

amount

shown

is

the

notional

amount

of

the

underlying

instruments.

k

Adjustable

rate

security

with

an

interest

rate

that

is

not

based

on

a

published

reference

index

and

spread.

The

rate

is

based

on

the

structure

of

the

agreement

and

current

market

conditions.

The

coupon

rate

shown

represents

the

rate

at

period

end.

l

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(c).

m

Security

purchased

on

a

to-be-announced

(TBA)

basis.

See

Note

1(c).

n

Security

purchased

on

a

when-issued

basis.

See

Note

1(c).

o

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

p

See

Note

3(e)

regarding

investments

in

affiliated

management

investment

companies.

q

See

Note

1(d)

regarding

written

options.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-44

At

June

30,

2022,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1(d). 

At

June

30,

2022,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(d). 

Futures

Contracts

Description

Type

Number

of

Contracts

Notional

Amount

*

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Equity

contracts

S&P

500

E-Mini

Index

.........................

Long

45

$

8,526,375

9/16/22

$

13,873

Interest

rate

contracts

3-month

SOFR

..............................

Short

8

1,940,900

12/20/22

(2,149)

90-day

Eurodollar

............................

Long

38

9,171,763

12/19/22

51,157

U.S.

Treasury

10

Year

Notes

....................

Short

53

6,282,156

9/21/22

(1,742)

U.S.

Treasury

10

Year

Notes

....................

Long

55

6,519,219

9/21/22

21,115

U.S.

Treasury

10

Year

Ultra

Notes

................

Short

16

2,038,000

9/21/22

(76,743)

U.S.

Treasury

2

Year

Notes

.....................

Long

39

8,190,609

9/30/22

70,237

U.S.

Treasury

5

Year

Notes

.....................

Short

12

1,347,000

9/30/22

(34,796)

U.S.

Treasury

5

Year

Notes

.....................

Long

85

9,541,250

9/30/22

190,691

U.S.

Treasury

Long

Bonds

.....................

Short

1

138,625

9/21/22

(6,376)

U.S.

Treasury

Ultra

Bonds

......................

Short

8

1,234,750

9/21/22

(61,512)

U.S.

Treasury

Ultra

Bonds

......................

Long

8

1,234,750

9/21/22

(25,291)

Total

Futures

Contracts

......................................................................

$138,464

*

As

of

period

end.

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

Swedish

Krona

.....

GSCO

Buy

6,200,000

618,169

7/07/22

$

—

$

(12,081)

Swedish

Krona

.....

HSBC

Sell

6,200,000

607,099

7/07/22

1,011

—

Brazilian

Real

......

HSBC

Sell

2,720,000

524,200

7/18/22

6,612

—

Euro

.............

BRCP

Sell

450,000

468,792

7/26/22

—

(3,436)

Euro

.............

JPHQ

Buy

2,190,000

2,327,094

7/26/22

—

(28,920)

Polish

Zloty

........

JPHQ

Sell

2,310,000

506,753

7/27/22

—

(6,960)

Polish

Zloty

........

UBSW

Buy

4,870,000

1,088,071

7/27/22

—

(5,048)

Columbian

Peso

....

JPHQ

Sell

1,550,000,000

376,447

7/28/22

4,740

—

South

Korean

Won

..

JPHQ

Buy

50,000,000

38,756

7/28/22

51

—

South

Korean

Won

..

JPHQ

Sell

1,060,000,000

837,296

7/28/22

14,596

—

Chilean

Peso

......

JPHQ

Buy

1,010,000,000

1,142,922

8/05/22

—

(49,034)

Chilean

Peso

......

JPHQ

Sell

190,000,000

206,690

8/05/22

909

—

Thai

Baht

.........

NAB

Buy

4,500,000

130,514

8/10/22

—

(2,837)

South

African

Rand

..

HSBC

Sell

7,900,000

486,618

8/17/22

3,135

—

Hungarian

Forint

....

HSBC

Buy

155,000,000

424,341

8/23/22

—

(18,100)

Mexican

Peso

......

JPHQ

Sell

22,500,000

1,103,414

8/24/22

—

(4,853)

British

Pound

......

HSBC

Sell

470,000

588,368

8/25/22

15,765

—

British

Pound

......

JPHQ

Buy

20,000

23,899

8/25/22

468

—

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-45

At

June

30,

2022,

the

Fund

had

the

following credit

default

swap

contracts outstanding.

See

Note

1(d). 

At

June

30,

2022,

the

Fund

had

the

following

interest

rate

swap

contracts

outstanding.

See

Note

1(d)

. 

Forward

Exchange

Contracts

(continued)

Currency

Counter-

party

a

Type

Quantity

Contract

Amount*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

(continued)

Australian

Dollar

....

MSCO

Sell

800,000

558,982

9/07/22

$

6,472

$

—

Malaysian

Ringgit

...

GSCO

Sell

1,380,000

312,394

9/21/22

—

(1,200)

Japanese

Yen

......

JPHQ

Buy

348,000,000

2,651,570

9/26/22

—

(71,582)

Swedish

Krona

.....

HSBC

Buy

6,200,000

609,570

10/07/22

—

(989)

Total

Forward

Exchange

Contracts

...................................................

$53,759

$(205,040)

Net

unrealized

appreciation

(depreciation)

............................................

$(151,281)

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

*

In

U.S.

dollars

unless

otherwise

indicated.

Credit

Default

Swap

Contracts

Description

Periodic

Payment

Rate

Received

(Paid)

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

(a)

Value

Unamortized

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Rating

(b)

Centrally

Cleared

Swap

Contracts

Contracts

to

Sell

Protection

(c)(d)

Traded

Index

CDX.NA.IG.38

..

1.00%

Quarterly

6/20/27

12,000,000

$

3,333

$

13,631

$

(10,298)

Investment

Grade

Total

Centrally

Cleared

Swap

Contracts

.....................................

$3,333

$13,631

$(10,298)

OTC

Swap

Contracts

Contracts

to

Sell

Protection

(c)(d)

Single

Name

Mexico

Government

Bond

......

1.00%

Quarterly

GSCO

6/20/26

575,000

(10,482)

1,328

(11,810)

BBB

Total

OTC

Swap

Contracts

..............................................

$(10,482)

$1,328

$(11,810)

Total

Credit

Default

Swap

Contracts

....................................

$(7,149)

$

14,959

$(22,108)

(a)

In

U.S.

dollars

unless

otherwise

indicated.

For

contracts

to

sell

protection,

the

notional

amount

is

equal

to

the

maximum

potential

amount

of

the

future

payments

and

no

recourse

provisions

have

been

entered

into

in

association

with

the

contracts.

(b)

Based

on

Standard

and

Poor's

(S&P)

Rating

for

single

name

swaps

and

internal

ratings

for

index

swaps.

Internal

ratings

based

on

mapping

into

equivalent

ratings

from

external

vendors.

(c)

Performance

triggers

for

settlement

of

contract

include

default,

bankruptcy

or

restructuring

for

single

name

swaps,

and

failure

to

pay

or

bankruptcy

of

the

underlying

securities

for

traded

index

swaps.

(d)

The

fund

enters

contracts

to

sell

protection

to

create

a

long

credit

position.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-46

(a)

In

U.S.

dollars

unless

otherwise

indicated.

See

No

te

9

regarding

other

derivative

information.

See

Abbreviations

on

page

FA-

64

.

Interest

Rate

Swap

Contracts

Description

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

a

Value

Unamortized

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

aa

aa

aa

aa

Centrally

Cleared

Swap

Contracts

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

3.27%

....

Annual

4/30/29

2,617,000

$

(75,429)

$

(75,429)

$

—

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.62%

....

Annual

2/15/48

1,530,000

29,694

29,694

—

Total

Interest

Rate

Swap

Contracts

...............................

$(45,735)

$

(45,735)

$—

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-47

Franklin

Allocation

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$564,907,098

Cost

-

Non-controlled

affiliates

(Note

3e)

........................................................

26,022,075

Value

-

Unaffiliated

issuers

..................................................................

$555,362,591

Value

-

Non-controlled

affiliates

(Note

3e)

.......................................................

26,022,075

Cash

....................................................................................

276,945

Foreign

currency,

at

value

(cost

$369,459)

........................................................

368,680

Receivables:

Investment

securities

sold

...................................................................

13,181,363

Capital

shares

sold

........................................................................

198,379

Dividends

and

interest

.....................................................................

2,028,747

Deposits

with

brokers

for:

Futures

contracts

........................................................................

789,695

Centrally

cleared

swap

contracts

............................................................

360,702

Variation

margin

on

centrally

cleared

swap

contracts

...............................................

12,458

OTC

swap

contracts

(upfront

payments

$1,623)

....................................................

1,328

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

53,759

Total

assets

..........................................................................

598,656,722

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

21,835,597

Capital

shares

redeemed

...................................................................

731,972

Management

fees

.........................................................................

205,626

Distribution

fees

..........................................................................

148,610

Trustees'

fees

and

expenses

.................................................................

613

Variation

margin

on

futures

contracts

...........................................................

297,864

Unrealized

depreciation

on

OTC

swap

contracts

....................................................

11,810

Options

written,

at

value

(premiums

received

$33,156)

...............................................

50,258

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

205,040

Deferred

tax

...............................................................................

8,813

Accrued

expenses

and

other

liabilities

...........................................................

285,474

Total

liabilities

.........................................................................

23,781,677

Net

assets,

at

value

.................................................................

$574,875,045

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$567,259,988

Total

distributable

earnings

(losses)

.............................................................

7,615,057

Net

assets,

at

value

.................................................................

$574,875,045

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-48

Franklin

Allocation

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$710,010

Shares

outstanding

........................................................................

161,065

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$4.41

Class

2:

Net

assets,

at

value

.......................................................................

$237,959,516

Shares

outstanding

........................................................................

54,475,838

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$4.37

Class

4:

Net

assets,

at

value

.......................................................................

$336,205,519

Shares

outstanding

........................................................................

73,988,403

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$4.54

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FA-49

Franklin

Allocation

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$215,637)

Unaffiliated

issuers

........................................................................

$4,007,321

Non-controlled

affiliates

(

Note

3e)

.............................................................

31,818

Interest:

(net

of

foreign

taxes

of

$940)

Unaffiliated

issuers

........................................................................

2,392,038

Total

investment

income

...................................................................

6,431,177

Expenses:

Management

fees

(Note

3

a

)

...................................................................

1,756,500

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

333,523

    Class

4

................................................................................

649,506

Custodian

fees

(Note

4

)

......................................................................

8,813

Reports

to

shareholders

fees

..................................................................

44,807

Professional

fees

...........................................................................

58,341

Trustees'

fees

and

expenses

..................................................................

3,733

Other

....................................................................................

43,744

Total

expenses

.........................................................................

2,898,967

Expense

reductions

(Note

4

)

...............................................................

(21)

Expenses

waived/paid

by

affiliates

(Note

3e

and

3f)

..............................................

(123,347)

Net

expenses

.........................................................................

2,775,599

Net

investment

income

................................................................

3,655,578

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

(net

of

foreign

taxes

of

$6,411)

Unaffiliated

issuers

......................................................................

25,754,557

Non-controlled

affiliates

(Note

3e)

...........................................................

(1,396,313)

Written

options

...........................................................................

1,353

Foreign

currency

transactions

................................................................

8,642

Forward

exchange

contracts

.................................................................

(78,219)

Futures

contracts

.........................................................................

(3,269,363)

Swap

contracts

...........................................................................

(11,332)

Net

realized

gain

(loss)

..................................................................

21,009,325

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(144,753,984)

Non-controlled

affiliates

(Note

3e)

...........................................................

1,151,023

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

9,508

Written

options

...........................................................................

(17,102)

Forward

exchange

contracts

.................................................................

(151,281)

Futures

contracts

.........................................................................

66,848

Swap

contracts

...........................................................................

(18,342)

Change

in

deferred

taxes

on

unrealized

appreciation

...............................................

20,607

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(143,692,723)

Net

realized

and

unrealized

gain

(loss)

............................................................

(122,683,398)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(119,027,820)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-50

Franklin

Allocation

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$3,655,578

$5,721,145

Net

realized

gain

(loss)

.................................................

21,009,325

66,714,704

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(143,692,723)

11,744,579

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(119,027,820)

84,180,428

Distributions

to

shareholders:

Class

1

.............................................................

(86,111)

(15,547)

Class

2

.............................................................

(28,489,853)

(7,020,699)

Class

4

.............................................................

(38,575,172)

(6,571,792)

Total

distributions

to

shareholders

..........................................

(67,151,136)

(13,608,038)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

96,420

(44,550)

Class

2

.............................................................

13,923,515

(128,346,341)

Class

4

.............................................................

25,358,420

(29,324,411)

Total

capital

share

transactions

............................................

39,378,355

(157,715,302)

Net

increase

(decrease)

in

net

assets

...................................

(146,800,601)

(87,142,912)

Net

assets:

Beginning

of

period

.....................................................

721,675,646

808,818,558

End

of

period

..........................................................

$574,875,045

$721,675,646

Franklin

Templeton

Variable

Insurance

Products

Trust

FA-51

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

Franklin

Allocation

VIP

Fund

1.

Organization

and

Significant

Accounting

Policies

Franklin

Templeton

Variable

Insurance

Products

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Allocation

VIP

Fund

(Fund)

is

included

in

this

report. Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

At

June

30,

2022,

44.3%

of

the

Fund’s

shares

were

held

through

one

insurance

company.

Investment

activities

of

these

insurance

company

separate

accounts

could

have

a

material

impact

on

the

Fund.

The

Fund

offers

three

classes

of

shares:

Class

1,

Class

2

and

Class

4.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege.

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities,

exchange

traded

funds

and

derivative

financial

instruments

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-

counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Debt

securities

generally

trade

in

the OTC

market

rather

than

on

a

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

Certain

derivative

financial

instruments

are

centrally

cleared

or

trade

in

the

OTC

market.

The

Fund's

pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

fair

value

of

those

instruments.

The

Fund's

net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FA-52

Semiannual

Report

Franklin

Allocation

VIP

Fund

(continued)

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day. Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time. In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Securities

Purchased

on

a

When-Issued

or

Delayed

Delivery

and

TBA

Basis

The

Fund

purchases

securities

on

a

when-issued

or

delayed

delivery

and

to-be-announced

(TBA)

basis,

with

payment

and

delivery

scheduled

for

a

future

date.

These

transactions

are

subject

to

market

fluctuations

and

are

subject

to

the

risk

that

the

value

at

delivery

may

be

more

or

less

than

the

trade

date

purchase

price.

Although

the

Fund

will

generally

purchase

these

securities

with

the

intention

of

holding

the

securities,

it

may

sell

the

securities

before

the

settlement

date.

d.

Derivative

Financial

Instruments

The

Fund invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FA-53

Semiannual

Report

Franklin

Allocation

VIP

Fund

(continued)

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statement

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statement

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

The

Fund

attempts

to

reduce its

exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the Fund

include

failure

of

the

Fund

to

maintain

certain

net

asset

levels

and/or

limit

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Fund

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

At

June

30,

2022,

the

Fund

had

OTC

derivatives

in

a

net

liability

position

for

such

contracts

of

$215,522.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

or

initial

margin

requirements

are

set

by

the

broker

or

exchange

clearing

house

for

exchange

traded

and

centrally

cleared

derivatives.

Initial

margin

deposited

is

held

at

the

exchange

and

can

be

in

the

form

of

cash

and/or

securities.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of

agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund

for

OTC

derivatives,

if

any,

is

held

in

segregated

accounts

with

the

Fund's

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Fund's

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

The

Fund

entered

into

exchange

traded

futures

contracts

primarily

to

manage

and/or

gain

exposure

to

interest

rate

and

equity

price

risk.

A

futures

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

an

asset

at

a

specified

price

on

a

future

date.

Required

initial

margins

are

pledged

by

the

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the

Statement

of

Assets

and

Liabilities.

The

Fund entered

into

OTC

forward

exchange

contracts

primarily

to

manage

and/or

gain

exposure

to

certain

foreign

currencies.

A

forward

exchange

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

foreign

currency at

a

specific

exchange

rate

on

a

future

date. 

The

Fund

entered

into

credit

default

swap

contracts

primarily

to

manage

and/or

gain

exposure

to

credit

risk.

A

credit

default

swap

is

an

agreement

between

the

Fund

and

a

counterparty

whereby

the

buyer

of

the

contract

receives

credit

protection

and

the

seller

of

the

contract

guarantees

the

credit

worthiness

of

a

referenced

debt

obligation.

These

agreements

may

be

privately

negotiated

in

the

over-the-

counter

market

(OTC

credit

default

swaps)

or

may

be

executed

in

a

multilateral

trade

facility

platform,

such

as

a

registered

exchange

(centrally

cleared

credit

default

swaps).

The

underlying

referenced

debt

obligation

may

be

a

single

issuer

of

corporate

or

sovereign

debt,

a

credit

index,

a

basket

of

issuers

or

indices,

or

a

tranche

of

a

credit

index

or

basket

of

issuers

or

indices.

In

the

event

of

a

default

of

the

underlying

referenced

debt

obligation,

the

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Derivative

Financial

Instruments

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FA-54

Semiannual

Report

Franklin

Allocation

VIP

Fund

(continued)

buyer

is

entitled

to

receive

the

notional

amount

of

the

credit

default

swap

contract

from

the

seller

in

exchange

for

the

referenced

debt

obligation,

a

net

settlement

amount

equal

to

the

notional

amount

of

the

credit

default

swap

less

the

recovery

value

of

the

referenced

debt

obligation,

or

other

agreed

upon

amount.

For

centrally

cleared

credit

default

swaps,

required

initial

margins

are

pledged

by

the

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the

Statement

of

Assets

and

Liabilities.

Over

the

term

of

the

contract,

the

buyer

pays

the

seller

a

periodic

stream

of

payments,

provided

that

no

event

of

default

has

occurred.

Such

periodic

payments

are

accrued

daily

as

an

unrealized

appreciation

or

depreciation

until

the

payments

are

made,

at

which

time

they

are

realized.

Upfront

payments

and

receipts

are

reflected

in

the Statement

of

Assets

and

Liabilities

and

represent

compensating

factors

between

stated

terms

of

the

credit

default

swap

agreement

and

prevailing

market

conditions

(credit

spreads

and

other

relevant

factors).

These

upfront

payments

and

receipts

are

amortized

over

the

term

of

the

contract

as

a

realized

gain

or

loss

in

the Statement

of

Operations.

The

Fund entered

into

interest

rate

swap

contracts

primarily

to

manage

interest

rate

risk.

An

interest

rate

swap

is

an

agreement

between

the

Fund

and

a

counterparty

to

exchange

cash

flows

based

on

the

difference

between

two

interest

rates,

applied

to

a

notional

amount.

These

agreements

may

be

privately

negotiated

in

the

over-the-

counter

market

(OTC

interest

rate

swaps)

or

may

be

executed

on

a

registered

exchange

(centrally

cleared

interest

rate

swaps).

For

centrally

cleared

interest

rate

swaps,

required

initial

margins

are

pledged

by

the

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the

Statement

of

Assets

and

Liabilities.

Over

the

term

of

the

contract,

contractually

required

payments

to

be

paid

and

to

be

received

are

accrued

daily

and

recorded

as

unrealized

depreciation

and

appreciation

until

the

payments

are

made,

at

which

time

they

are

realized.

The

Fund

purchased

or

wrote

exchange

traded

option

contracts

primarily

to

manage

and/or

gain

exposure

to

interest

rate

risk.

An

option

is

a

contract

entitling

the

holder

to

purchase

or

sell

a

specific

amount

of

shares

or

units

of

an

asset

or

notional

amount

of

a

swap

(swaption),

at

a

specified

price.

When

an

option

is

purchased

or

written,

an

amount

equal

to

the

premium

paid

or

received

is

recorded

as

an

asset

or

liability,

respectively.

Upon

exercise

of

an

option,

the

acquisition

cost

or

sales

proceeds

of

the

underlying

investment

is

adjusted

by

any

premium

received

or

paid.

Upon

expiration

of

an

option,

any

premium

received

or

paid

is

recorded

as

a

realized

gain

or

loss.

Upon

closing

an

option

other

than

through

expiration

or

exercise,

the

difference

between

the

premium

received

or

paid

and

the

cost

to

close

the

position

is

recorded

as

a

realized

gain

or

loss.

See

Note

9 regarding

other

derivative

information.

e.

Mortgage

Dollar

Rolls

The

Fund

enters

into

mortgage

dollar

rolls,

typically

on

a

TBA

basis.

Mortgage

dollar

rolls

are

agreements

between

the

Fund

and

a

financial

institution

where

the

Fund

sells

(or

buys)

mortgage-backed

securities

for

delivery

on

a

specified

date

and

simultaneously

contracts

to

repurchase

(or

sell)

substantially

similar

(same

type,

coupon,

and

maturity)

securities

at

a

future

date

and

at

a

predetermined

price.

Gains

or

losses

are

realized

on

the

initial

sale,

and

the

difference

between

the

repurchase

price

and

the

sale

price

is

recorded

as

an

unrealized

gain

or

loss

to

the

Fund

upon

entering

into

the

mortgage

dollar

roll.

In

addition,

the

Fund

may

invest

the

cash

proceeds

that

are

received

from

the

initial

sale.

During

the

period

between

the

sale

and

repurchase,

the

Fund

is

not

entitled

to

principal

and

interest

paid

on

the

mortgage

backed

securities.

Transactions

in

mortgage

dollar

rolls

are

accounted

for

as

purchases

and

sales

and

may

result

in

an

increase

to

the

Fund's

portfolio

turnover

rate.

The

risks

of

mortgage

dollar

roll

transactions

include

the

potential

inability

of

the

counterparty

to

fulfill

its

obligations.

f.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Derivative

Financial

Instruments

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FA-55

Semiannual

Report

Franklin

Allocation

VIP

Fund

(continued)

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date. 

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

g.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Paydown

gains

and

losses

are

recorded

as

an

adjustment

to

interest

income.

Dividend

income,

capital

gain

distributions

are

recorded

on

the

ex-

dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

Inflation-indexed

bonds

are

adjusted

for

inflation

through

periodic

increases

or

decreases

in

the

security's

interest

accruals,

face

amount,

or

principal

redemption

value,

by

amounts

corresponding

to

the

rate

of

inflation

as

measured

by

an

index.

Any

increase

or

decrease

in

the

face

amount

or

principal

redemption

value

will

be

included

as

interest

income

in

the

Statement

of

Operations.

h.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

i.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust, on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

f.

Income

and

Deferred

Taxes

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FA-56

Semiannual

Report

Franklin

Allocation

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

4,496

$24,526

11,749

$68,109

Shares

issued

in

reinvestment

of

distributions

..........

19,526

86,111

2,704

15,547

Shares

redeemed

...............................

(2,588)

(14,217)

(22,563)

(128,206)

Net

increase

(decrease)

..........................

21,434

$96,420

(8,110)

$(44,550)

Class

2

Shares:

Shares

sold

...................................

1,500,739

$8,051,897

2,481,710

$14,077,892

Shares

issued

in

reinvestment

of

distributions

..........

6,519,416

28,489,853

1,231,702

7,020,699

Shares

redeemed

...............................

(4,236,715)

(22,618,235)

(26,406,666)

(149,444,932)

Net

increase

(decrease)

..........................

3,783,440

$13,923,515

(22,693,254)

$(128,346,341)

Class

4

Shares:

Shares

sold

...................................

1,264,895

$7,114,575

1,953,061

$11,577,200

Shares

issued

in

reinvestment

of

distributions

..........

8,478,060

38,575,172

1,113,863

6,571,792

Shares

redeemed

...............................

(3,644,251)

(20,331,327)

(8,025,411)

(47,473,403)

Net

increase

(decrease)

..........................

6,098,704

$25,358,420

(4,958,487)

$(29,324,411)

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Brandywine

Global

Investment

Management,

LLC

(Brandywine)

Investment

manager

ClearBridge

Investments,

LLC

(ClearBridge)

Investment

manager

Franklin

Templeton

Institutional,

LLC

(FT

Institutional)

Investment

manager

Templeton

Global

Advisors

Limited

(Global

Advisors)

Investment

manager

Western

Asset

Management

Company,

LLC

(Western)

Investment

manager

Western

Asset

Management

Company,

Limited

(Western

London)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FA-57

Semiannual

Report

Franklin

Allocation

VIP

Fund

(continued)

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

p

aid

monthly,

to

Advisers

of

0.55

%

per

year

of

the

average

daily

net

assets

of

the

Fund

.

Under

each

subadvisory

agreement,

the

below

entities

provide

subadvisory

services

to

the

Fund.

The

subadvisory

fees

are

paid

by

Advisors

and

are

not

an

additional

expense

of

the

Fund.

Each

subadvisor

is

compensated

for

managing

its

respective

portion

of

the

Fund's

average

daily

net

assets.

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

2

and

Class

4

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.35%

per

year

of

its

average

daily

net

assets

of

each

class.

The

Board

has

agreed

to

limit

the

current

rate

to

0.25%

per

year

for

Class

2.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

e.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Subadvisors

Brandywine

(Effective

May

9,

2022)

ClearBridge

(Effective

April

22,

2022)

FT

Institutional

Global

Advisors

Western

(Effective

June

13,

2022)

Western

London

(Effective

June

13,

2022)

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FA-58

Semiannual

Report

Franklin

Allocation

VIP

Fund

(continued)

f.

Waiver

and

Expense

Reimbursements

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Fund

so

that

the

operating expenses

(excluding

interest

expense,

distribution

fees and

certain

non-

routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

and

acquired

fund

fees

and

expenses for

each

class

of

the

Fund

do not

exceed

0.57%,

based

on

the

average

net

assets

of

each

class

until

April

30,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund's

fiscal

year

end.

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

June

30,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

At

June

30,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

passive

foreign

investment

company

shares,

paydown

losses,

bond

discounts

and

premiums

and

wash

sales.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Allocation

VIP

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$

18,002,980

$

153,857,112

$

(158,224,079)

$

—

$

—

$

13,636,013

13,636,013

$

30,979

Templeton

Global

Bond

VIP

Fund,

Class

1

............

7,062,310

—

(6,817,020)

(1,396,313)

1,151,023

—

 —

—

Western

Asset

Premier

Institutional

Government

Reserves,

Class

Premium,

1.4%

—

39,637,514

(28,107,817)

—

—

11,529,697

11,529,697

—

Western

Asset

Premier

Institutional

U.S.

Treasury

Reserves,

Class

Premium,

0.9%

—

19,734,956

(18,878,591)

—

—

856,365

856,365

839

Total

Affiliated

Securities

...

$25,065,290

$213,229,582

$(212,027,507)

$(1,396,313)

$1,151,023

$26,022,075

$31,818

Cost

of

investments

..........................................................................

$596,898,740

Unrealized

appreciation

........................................................................

$39,995,537

Unrealized

depreciation

........................................................................

(55,625,569)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(15,630,032)

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FA-59

Semiannual

Report

Franklin

Allocation

VIP

Fund

(continued)

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

aggregated

$455,722,545

and

$457,443,503,

respectively.

7.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

8.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

9.

Other

Derivative

Information

At

June

30,

2022,

investments

in

derivative

contracts

are

reflected

in

the

Statement of

Assets

and

Liabilities

as

follows:

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Franklin

Allocation

VIP

Fund

Interest

rate

contracts

.......

Investments

in

securities,

at

value

$

8,469

a

Options

written,

at

value

$

50,258

Variation

margin

on

futures

contracts

333,200

b

Variation

margin

on

futures

contracts

208,609

b

Variation

margin

on

centrally

cleared

swap

contracts

—

c

Variation

margin

on

centrally

cleared

swap

contracts

—

c

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

53,759

Unrealized

depreciation

on

OTC

forward

exchange

contracts

205,040

Credit

contracts

............

Variation

margin

on

centrally

cleared

swap

contracts

—

Variation

margin

on

centrally

cleared

swap

contracts

10,298

c

OTC

swap

contracts

(upfront

payments)

1,328

OTC

swap

contracts

(upfront

receipts)

—

Unrealized

appreciation

on

OTC

swap

contracts

—

Unrealized

depreciation

on

OTC

swap

contracts

11,810

Equity

contracts

...........

Variation

margin

on

futures

contracts

13,873

b

Variation

margin

on

futures

contracts

—

Total

....................

$410,629

$486,015

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FA-60

Semiannual

Report

Franklin

Allocation

VIP

Fund

(continued)

For

the

period

ended

June

30,

2022,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

period

ended

June

30,

2022,

the

average

month

end

notional

amount

of

futures

contracts,

swap

contracts

and

options,

and

the

average

month

end

contract

value

for

forward

exchange

contracts

were

as

follows:

See

Note

1(d)

regarding

derivative

financial

instruments. 

10.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

a

Purchased

option

contracts

are

included

in

the

net

change

in

unrealized

appreciation

(depreciation)

on

investments

in

the

Statement

of

Assets

and

Liabilities.

b

This

amount

reflects

the

cumulative

appreciation

(depreciation)

of

futures

contracts

as

reported

in

the

Schedule

of

Investments.

Only

the

variation

margin

receivable/payable

at

period

end

is

separately

reported

within

the

Statement

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

c

This

amount

reflects

the

cumulative

appreciation

(depreciation)

of

centrally

cleared

swap

contracts

as

reported

in

the

Schedule

of

Investments.

Only

the

variation

margin

receivable/payable

at

period

end

is

separately

reported

within

the

Statement

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Period

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Period

Franklin

Allocation

VIP

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Interest

rate

contracts

..........

Investments

$—

Investments

$3,089

a

Written

options

1,353

Written

options

(17,102)

Futures

contracts

668,421

Futures

contracts

309,727

Foreign

exchange

contracts

.....

Forward

exchange

contracts

(78,219)

Forward

exchange

contracts

(151,281)

Credit

contracts

...............

Swap

contracts

(11,332)

Swap

contracts

(18,342)

Equity

Contracts

..............

Futures

contracts

(3,937,784)

Futures

contracts

(242,879)

Total

.......................

$(3,357,561)

$(116,788)

a

Purchased

option

contracts

are

included

in

the

net

change

in

unrealized

appreciation

(depreciation)

on

investments

in

the

Statement

of

Operations.

Franklin

Allocation

VIP

Fund

Futures

contracts

.........................

$39,889,079

Swap

Contracts

..........................

3,113,857

Forward

exchange

contracts

.................

4,226,748

Options

.................................

928,571

9.

Other

Derivative

Information

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FA-61

Semiannual

Report

Franklin

Allocation

VIP

Fund

(continued)

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

11.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's assets

and

liabilities

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Allocation

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

9,110,140

$

3,687,905

$

—

$

12,798,045

Air

Freight

&

Logistics

...................

3,173,093

1,002,124

—

4,175,217

Airlines

..............................

119,269

258,008

—

377,277

Auto

Components

......................

670,430

1,948,569

—

2,618,999

Automobiles

..........................

1,520,785

2,090,384

—

3,611,169

Banks

...............................

8,342,216

8,456,575

—

16,798,791

Beverages

...........................

4,752,365

1,020,104

—

5,772,469

Biotechnology

.........................

3,807,389

2,666,902

—

6,474,291

Building

Products

......................

996,720

461,928

—

1,458,648

Capital

Markets

........................

6,541,831

3,515,562

—

10,057,393

Chemicals

...........................

5,578,771

4,094,821

—

9,673,592

Commercial

Services

&

Supplies

...........

630,609

45,164

—

675,773

Communications

Equipment

..............

3,540,855

124,488

—

3,665,343

Construction

&

Engineering

...............

—

330,458

—

330,458

Construction

Materials

..................

1,031,780

570,863

—

1,602,643

Consumer

Finance

.....................

2,489,391

—

—

2,489,391

Containers

&

Packaging

.................

220,825

—

—

220,825

Distributors

...........................

113,449

—

—

113,449

Diversified

Financial

Services

.............

2,395,205

668,087

—

3,063,292

Diversified

Telecommunication

Services

.....

701,804

2,023,809

—

2,725,613

Electric

Utilities

........................

3,171,763

1,072,791

—

4,244,554

Electrical

Equipment

....................

2,387,431

392,029

—

2,779,460

Electronic

Equipment,

Instruments

&

Components

........................

3,967,609

509,166

—

4,476,775

10.

Credit

Facility

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FA-62

Semiannual

Report

Franklin

Allocation

VIP

Fund

(continued)

Level

1

Level

2

Level

3

Total

Franklin

Allocation

VIP

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Energy

Equipment

&

Services

.............

$

—

$

861,774

$

—

$

861,774

Entertainment

.........................

1,582,256

1,304,480

—

2,886,736

Equity

Real

Estate

Investment

Trusts

(REITs)

.

4,939,955

858,569

—

5,798,524

Food

&

Staples

Retailing

.................

1,329,563

1,274,058

—

2,603,621

Food

Products

........................

1,990,742

1,568,679

—

3,559,421

Gas

Utilities

..........................

104,755

358,324

—

463,079

Health

Care

Equipment

&

Supplies

.........

6,757,183

2,705,221

—

9,462,404

Health

Care

Providers

&

Services

..........

9,671,575

749,866

—

10,421,441

Health

Care

Technology

.................

248,940

—

—

248,940

Hotels,

Restaurants

&

Leisure

.............

3,111,561

502,232

—

3,613,793

Household

Durables

....................

151,574

1,062,596

—

1,214,170

Household

Products

....................

1,396,779

—

—

1,396,779

Independent

Power

and

Renewable

Electricity

Producers

..........................

302,351

107,255

—

409,606

Industrial

Conglomerates

................

1,155,121

2,420,701

—

3,575,822

Insurance

............................

5,046,665

3,405,117

—

8,451,782

Interactive

Media

&

Services

..............

10,179,398

127,669

—

10,307,067

Internet

&

Direct

Marketing

Retail

..........

7,205,567

1,980,599

—

9,186,166

IT

Services

...........................

10,325,942

3,675,434

—

14,001,376

Leisure

Products

.......................

—

84,213

—

84,213

Life

Sciences

Tools

&

Services

............

5,530,227

1,201,209

—

6,731,436

Machinery

............................

6,465,135

1,162,458

—

7,627,593

Marine

..............................

—

232,347

—

232,347

Media

...............................

4,394,457

2,666,094

—

7,060,551

Metals

&

Mining

.......................

425,575

2,375,001

—

2,800,576

Multiline

Retail

........................

235,009

381,643

—

616,652

Multi-Utilities

..........................

3,848,119

721,154

—

4,569,273

Oil,

Gas

&

Consumable

Fuels

.............

8,077,135

5,896,672

—

13,973,807

Paper

&

Forest

Products

.................

78,091

—

—

78,091

Personal

Products

.....................

141,425

976,990

—

1,118,415

Pharmaceuticals

.......................

8,753,905

7,683,616

—

16,437,521

Professional

Services

...................

1,769,019

2,312,749

—

4,081,768

Real

Estate

Management

&

Development

....

245,530

617,797

—

863,327

Road

&

Rail

..........................

2,692,590

345,784

—

3,038,374

Semiconductors

&

Semiconductor

Equipment

.

10,245,853

3,543,727

—

13,789,580

Software

.............................

25,830,486

2,174,374

—

28,004,860

Specialty

Retail

........................

4,128,590

219,432

—

4,348,022

Technology

Hardware,

Storage

&

Peripherals

.

8,235,843

1,229,992

—

9,465,835

Textiles,

Apparel

&

Luxury

Goods

..........

1,472,604

1,369,186

—

2,841,790

Thrifts

&

Mortgage

Finance

...............

—

703,604

—

703,604

Tobacco

.............................

424,508

1,372,951

—

1,797,459

Trading

Companies

&

Distributors

..........

1,618,545

1,578,138

—

3,196,683

Water

Utilities

.........................

240,859

—

—

240,859

Wireless

Telecommunication

Services

.......

150,416

677,864

—

828,280

Management

Investment

Companies

.........

12,253,569

—

—

12,253,569

Preferred

Stocks

........................

—

194,281

—

194,281

Private

Limited

Partnership

Funds

............

1,643,367

—

—

1,643,367

Corporate

Bonds

........................

—

60,135,362

—

60,135,362

Foreign

Government

and

Agency

Securities

....

—

10,935,187

—

10,935,187

U.S.

Government

and

Agency

Securities

.......

—

110,542,484

—

110,542,484

Asset-Backed

Securities

..................

—

3,686,464

—

3,686,464

Commercial

Mortgage-Backed

Securities

......

—

1,424,791

—

1,424,791

Mortgage-Backed

Securities

................

—

22,105,390

—

22,105,390

11.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FA-63

Semiannual

Report

Franklin

Allocation

VIP

Fund

(continued)

12.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

In June

2022,

FASB

issued

ASU

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

13.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Level

1

Level

2

Level

3

Total

Franklin

Allocation

VIP

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Municipal

Bonds

.........................

$

—

$

5,309,566

$

—

$

5,309,566

Residential

Mortgage-Backed

Securities

......

—

177,267

—

177,267

Options

purchased

.......................

8,469

—

—

8,469

Short

Term

Investments

...................

29,771,585

—

—

29,771,585

Total

Investments

in

Securities

...........

$269,444,568

$311,940,098

a

$—

$581,384,666

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

53,759

$

—

$

53,759

Futures

contracts

........................

347,073

—

—

347,073

Total

Other

Financial

Instruments

.........

$347,073

$53,759

$—

$400,832

Liabilities:

Other

Financial

Instruments:

Options

written

..........................

$

50,258

$

—

$

—

$

50,258

Forward

exchange

contracts

................

—

205,040

—

205,040

Futures

contracts

........................

208,609

—

—

208,609

Swap

contracts

..........................

—

22,108

—

22,108

Total

Other

Financial

Instruments

.........

$258,867

$227,148

$—

$486,015

a

Includes

foreign

securities

valued

at

$97,326,115,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

11.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FA-64

Semiannual

Report

Franklin

Allocation

VIP

Fund

(continued)

Abbreviations

Counterparty

BRCP

Barclays

Capital,

Inc.

GSCO

Goldman

Sachs

Group,

Inc.

HSBC

HSBC

Bank

USA,

NA

JPHQ

JPMorgan

Chase

Bank

NA

MSCO

Morgan

Stanley

NAB

National

Australia

Bank

Ltd.

UBSW

UBS

AG

Cu

r

rency

AUD

Australian

Dollar

BRL

Brazilian

Real

CHF

Swiss

Franc

COP

Colombian

Peso

EUR

Euro

GBP

British

Pound

HKD

Hong

Kong

Dollar

KRW

South

Korean

Won

MXN

Mexican

Peso

MYR

Malaysian

Ringgit

PLN

Polish

Zloty

USD

United

States

Dollar

ZAR

South

African

Rand

Index

CDX.NA.IG.

Series

number

CDX

North

America

Investment

Grade

Index

Selected

Portfolio

ADR

American

Depositary

Receipt

AGMC

Assured

Guaranty

Municipal

Corp.

CDI

CREST

Depository

Interest

CLO

Collateralized

Loan

Obligation

ETF

Exchange-Traded

Fund

FHLMC

Federal

Home

Loan

Mortgage

Corp.

FNMA

Federal

National

Mortgage

Association

FRN

Floating

Rate

Note

GNMA

Government

National

Mortgage

Association

GO

General

Obligation

LIBOR

London

Inter-Bank

Offered

Rate

NYRS

New

York

Registry

Shares

REIT

Real

Estate

Investment

Trust

SDR

Swedish

Depository

Receipt

Selected

Portfolio

(continued)

SOFR

Secured

Overnight

Financing

Rate

TIPS

Treasury

Inflation

Protected

Securities

FGR-1

Semiannual

Report

Franklin

Global

Real

Estate

VIP

Fund

This

semi

annual

report

for

Franklin

Global

Real

Estate

VIP

Fund

covers

the

period

ended

June

30,

2022

.

Class

1

Performance

Summary

as

of

June

30,

2022

The

Fund’s

Class

1

Shares

posted

a

-21.36%

total

return*

for

the

six-month

period

ended

June

30,

2022.

*The

Fund

has

an

expense

reduction

contractually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction;

without

this

reduction,

the

results

would

have

been

lower.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

FGR-2

Semiannual

Report

Franklin

Global

Real

Estate

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

high

total

return.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

investments

of

companies

located

anywhere

in

the

world

that

operate

in

the

real

estate

sector,

including:

real

estate

investment

trusts

(REITs)

and

similar

REIT-like

entities

domiciled

outside

the

U.S.;

companies

qualifying

under

U.S.

federal

tax

law

as

REITs;

and

companies

that

derive

at

least

half

of

their

assets

or

revenues

from

the

ownership,

management,

development

or

sale

of

residential

or

commercial

real

estate

(such

as

real

estate

operating

or

service

companies).

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund

concentrates

in

real

estate

securities,

which

involve

special

risks,

such

as

declines

in

the

value

of

real

estate

and

increased

susceptibility

to

adverse

economic

or

regulatory

developments

affecting

the

sector.

The

Fund’s

investments

in

REITs

involve

additional

risks;

since

REITs

typically

are

invested

in

a

limited

number

of

projects

or

in

a

particular

market

segment,

they

are

more

susceptible

to

adverse

developments

affecting

a

single

project

or

market

segment

than

more

broadly

diversified

investments.

Foreign

investing,

especially

in

emerging

markets,

involves

additional

risks

such

as

currency

and

market

volatility,

as

well

as

political

and

social

instability.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

In

comparison,

the

FTSE

®

EPRA

®

/

NAREIT

®

Developed

Index

posted

a

-20.35%

total

return

for

the

same

period.

1

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR,

posted

a

-20.18%

total

return

for

the

six

months

ended

June

30,

2022.

1

The

combination

of

resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

many

countries.

This

inflationary

pressure

led

many

of

the

world’s

central

banks

to

adopt

less

accommodative

stances

regarding

monetary

policy.

The

Chinese

government’s

imposition

of

new

lockdowns

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

pressured

Asian

and

global

emerging

market

stocks.

Russia’s

invasion

of

Ukraine

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

constrained

companies

that

do

business

with

Russia

and

disrupted

global

economic

activity

and

commodity

markets.

In

the

U.S.,

gross

domestic

product

(GDP)

growth

turned

negative

in

the

first

quarter

of

2022

as

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

the

economy.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

Portfolio

Composition

6/30/22

%

of

Total

Net

Assets

Equity

Real

Estate

Investment

Trusts

(REITs)

82.7%

Real

Estate

Management

&

Development

14.8%

Other

0.7%

Short-Term

Investments

&

Other

Net

Assets

1.8%

1.

Source:

Morningstar.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

Franklin

Global

Real

Estate

VIP

Fund

FGR-3

Semiannual

Report

of

1.50%–1.75%.

The

Fed

noted

in

its

June

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings,

and

anticipated

instituting

further

interest

rate

increases

at

future

meetings.

Economic

growth

in

the

eurozone

maintained

a

slow

rate

in

the

first

quarter

of

2022

as

the

war

in

Ukraine

disrupted

supply

chains,

sent

commodity

prices

higher,

and

weakened

the

economic

outlook.

The

war

in

Ukraine

contributed

to

record

high

inflation

across

the

eurozone

as

commodity

and

oil

prices

soared.

The

European

Central

Bank

indicated

it

will

raise

interest

rates

in

July,

the

first

increase

in

more

than

a

decade,

to

fight

growing

inflation.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-20.79%

total

return

for

the

six

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-17.69%

total

return

for

the

six-month

period.

1

While

many

Asian

countries

experienced

improving

economic

conditions,

Japan’s

GDP

contracted

in

the

first

quarter

of

2022

after

having

returned

to

growth

in

the

fourth

quarter

of

2021.

Although

China’s

economy

continued

to

grow,

it

was

pressured

by

coronavirus-related

restrictions

and

government

measures

to

limit

real

estate

speculation.

Unexpected

regulatory

changes

by

the

Chinese

government,

which

negatively

impacted

education-

and

technology-

related

businesses,

and

investor

concerns

about

the

solvency

of

several

large

Chinese

property

developers

further

pressured

Chinese

stocks.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-17.63%

total

return

for

the

six

months

under

review.

1

Following

Russia’s

invasion

of

Ukraine,

climbing

food

and

energy

prices

kindled

inflationary

pressures

and

raised

concerns

over

the

possibility

of

government

debt

defaults

in

some

countries.

Meanwhile,

some

countries,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

have

benefited

from

the

rising

commodity

prices.

Investment

Strategy

We

seek

to

limit

price

volatility

by

investing

across

markets

and

property

types.

When

selecting

investments

for

the

Fund’s

portfolio,

we

apply

a

“bottom-up”

stock

selection

process

that

incorporates

macro-level

views

in

the

evaluation

process.

Our

portfolio

construction

process

combines

bottom-up

analysis

of

individual

stock

and

real

estate

market

fundamentals

and

top-down

macro

overlays

to

provide

country/regional,

property

type

and

company

size

perspectives

in

identifying

international/local

cyclical

and

thematic

trends

that

highlight

investment

opportunities.

Manager’s

Discussion

During

the

six

months

under

review,

the

Fund’s

performance

relative

to

the

FTSE

EPRA/NAREIT

Developed

Index

benefited

from

an

underweighted

position

in

the

regional

malls

subsector,

which

has

been

pressured

by

the

perceived

negative

impact

of

rising

interest

rates

on

consumer

discretionary

spending.

In

particular,

the

Fund’s

underweighting

to

U.S.

mall

operator

Simon

Property

Group

was

a

leading

positive

relative

contributor.

The

Fund

also

benefited

from

stock

selection

in

Asia,

where

several

holdings,

notably

Mitsui

Fudosan,

Capitaland

Investment

and

Nomura

Real

Estate

Holdings,

produced

strong

returns.

Mitsui

Fudosan

is

an

owner,

manager

and

developer

of

commercial

and

residential

real

estate

predominantly

in

Japan,

and

strength

in

its

property

sales

division

led

the

company

to

upgrade

its

2022

profit

guidance

and

shareholder

return

(higher

dividend

and

buyback).

Capitaland

is

a

Singapore-listed

global

real

estate

investment

manager

with

assets

mostly

in

the

Asia

Pacific

region

and

has

performed

well

since

the

company’s

restructuring

in

September

2021.

The

company

also

reported

a

recovery

in

its

lodging

business

as

COVID-19

restrictions

eased.

Nomura

Real

Estate

saw

robust

housing

sales

trends

over

the

period

with

activity

levels

recovering

to

pre-

COVID-19

levels.

The

Fund’s

overweighted

position

to

the

industrial

property

subsector

was

a

leading

relative

detractor

over

the

period,

with

industrial

REITs

broadly

selling

off

after

Amazon.com

(not

a

Fund

holding),

a

significant

tenant,

announced

they

had

too

much

warehouse

space

following

their

significant

expansion

in

recent

years.

Industrial

holdings

that

detracted

Top

10

Countries

6/30/22

a

%

of

Total

Net

Assets

a

a

United

States

59.3%

Japan

9.8%

United

Kingdom

6.0%

Hong

Kong

4.2%

Singapore

4.0%

Australia

3.6%

Canada

2.8%

Germany

2.5%

Belgium

1.9%

Spain

1.5%

Franklin

Global

Real

Estate

VIP

Fund

FGR-4

Semiannual

Report

included

an

off-benchmark

stake

in

Goodman

Group

and

a

position

in

Segro.

Goodman

Group

is

an

Australian-

listed

manager/developer

with

operations

across

several

continents,

while

Segro

is

an

owner/developer

predominantly

focused

on

infill

locations

in

the

U.K.

Other

detractors

included

holdings

in

diversified

Swedish

company

Fastighets

AB

Balder

and

German

apartment

landlord

Vonovia.

Shares

of

Balder

declined

on

account

of

the

sharp

rise

in

interest

rates

that

occurred,

recognizing

the

higher

leverage

and

shorter

interest-rate

maturity

profiles

that

are

inherent

within

the

Swedish

property

segment

broadly.

Vonovia

shares

underperformed

due

to

investor

concerns

over

its

higher

leverage

during

a

time

of

rising

interest

rates

and

its

rent

growth

profile

amid

higher

inflation.

Thank

you

for

your

participation

in

Franklin

Global

Real

Estate

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Prologis,

Inc.

6.5%

Equity

Real

Estate

Investment

Trusts

(REITs),

United

States

Equinix,

Inc.

4.4%

Equity

Real

Estate

Investment

Trusts

(REITs),

United

States

Public

Storage

4.2%

Equity

Real

Estate

Investment

Trusts

(REITs),

United

States

AvalonBay

Communities,

Inc.

3.4%

Equity

Real

Estate

Investment

Trusts

(REITs),

United

States

Realty

Income

Corp.

3.3%

Equity

Real

Estate

Investment

Trusts

(REITs),

United

States

Welltower,

Inc.

3.2%

Equity

Real

Estate

Investment

Trusts

(REITs),

United

States

Mitsui

Fudosan

Co.

Ltd.

2.8%

Real

Estate

Management

&

Development,

Japan

Camden

Property

Trust

2.7%

Equity

Real

Estate

Investment

Trusts

(REITs),

United

States

UDR,

Inc.

2.7%

Equity

Real

Estate

Investment

Trusts

(REITs),

United

States

American

Homes

4

Rent

2.5%

Equity

Real

Estate

Investment

Trusts

(REITs),

United

States

Class

1

Fund

Expenses

Franklin

Global

Real

Estate

VIP

Fund

FGR-5

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

any

ongoing

expenses

of

the

Contract

for

which

the

Fund

is

an

investment

option

or

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

1

$1,000

$786.40

$4.43

$1,019.84

$5.01

1.00%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Global

Real

Estate

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FGR-6

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$18.06

$14.66

$17.99

$15.41

$16.96

$15.83

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.15

0.19

0.39

0.29

0.33

0.17

Net

realized

and

unrealized

gains

(losses)

(4.03)

3.76

(1.59)

3.15

(1.41)

1.52

Total

from

investment

operations

........

(3.88)

3.95

(1.20)

3.44

(1.08)

1.69

Less

distributions

from:

Net

investment

income

..............

(0.39)

(0.18)

(0.54)

(0.50)

(0.47)

(0.56)

Net

realized

gains

.................

(1.04)

(0.37)

(1.59)

(0.36)

—

—

Total

distributions

...................

(1.43)

(0.55)

(2.13)

(0.86)

(0.47)

(0.56)

Net

asset

value,

end

of

period

..........

$12.75

$18.06

$14.66

$17.99

$15.41

$16.96

Total

return

c

.......................

(21.36)%

27.20%

(5.17)%

22.62%

(6.52)%

10.76%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.17%

1.16%

1.24%

1.14%

1.15%

1.14%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.00%

e

1.00%

e

1.00%

e

1.04%

e

1.15%

e

1.14%

f

Net

investment

income

...............

1.88%

1.14%

2.73%

1.66%

1.92%

1.04%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$771

$1,001

$966

$1,057

$878

$819

Portfolio

turnover

rate

................

8.71%

26.48%

23.01%

28.34%

17.78%

22.18%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Global

Real

Estate

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FGR-7

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$17.47

$14.21

$17.50

$15.00

$16.52

$15.42

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.13

0.14

0.35

0.24

0.27

0.13

Net

realized

and

unrealized

gains

(losses)

(3.89)

3.63

(1.56)

3.08

(1.36)

1.47

Total

from

investment

operations

........

(3.76)

3.77

(1.21)

3.32

(1.09)

1.60

Less

distributions

from:

Net

investment

income

..............

(0.35)

(0.14)

(0.49)

(0.46)

(0.43)

(0.50)

Net

realized

gains

.................

(1.04)

(0.37)

(1.59)

(0.36)

—

—

Total

distributions

...................

(1.39)

(0.51)

(2.08)

(0.82)

(0.43)

(0.50)

Net

asset

value,

end

of

period

..........

$12.32

$17.47

$14.21

$17.50

$15.00

$16.52

Total

return

c

.......................

(21.40)%

26.79%

(5.39)%

22.37%

(6.77)%

10.47%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.42%

1.41%

1.48%

1.39%

1.40%

1.39%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.25%

e

1.25%

e

1.25%

e

1.29%

e

1.40%

e

1.39%

f

Net

investment

income

...............

1.62

%

0.88%

2.47%

1.41%

1.67%

0.79%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$117,250

$154,411

$134,051

$159,153

$146,408

$183,532

Portfolio

turnover

rate

................

8.71%

26.48%

23.01%

28.34%

17.78%

22.18%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Global

Real

Estate

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FGR-8

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

98.2%

Diversified

Telecommunication

Services

0.7%

a

Cellnex

Telecom

SA,

144A,

Reg

S

.........................

Spain

22,622

$

880,365

Equity

Real

Estate

Investment

Trusts

(REITs)

82.7%

Aedifica

SA

..........................................

Belgium

14,206

1,364,881

Alexandria

Real

Estate

Equities,

Inc.

.......................

United

States

18,430

2,672,903

Allied

Properties

Real

Estate

Investment

Trust

................

Canada

33,751

870,258

American

Homes

4

Rent,

A

..............................

United

States

84,880

3,008,147

Americold

Realty

Trust,

Inc.

..............................

United

States

37,133

1,115,475

AvalonBay

Communities,

Inc.

............................

United

States

20,860

4,052,055

Camden

Property

Trust

.................................

United

States

23,933

3,218,510

Canadian

Apartment

Properties

REIT

......................

Canada

46,779

1,628,834

Capital

&

Counties

Properties

plc

.........................

United

Kingdom

504,562

861,322

CapitaLand

Integrated

Commercial

Trust

....................

Singapore

946,551

1,479,615

Cousins

Properties,

Inc.

................................

United

States

53,430

1,561,759

Derwent

London

plc

...................................

United

Kingdom

39,375

1,255,214

Dexus

..............................................

Australia

179,731

1,105,329

Equinix

,

Inc.

.........................................

United

States

7,845

5,154,322

Equity

LifeStyle

Properties,

Inc.

...........................

United

States

33,693

2,374,346

First

Industrial

Realty

Trust,

Inc.

..........................

United

States

26,121

1,240,225

Gecina

SA

..........................................

France

10,031

941,364

GLP

J-

Reit

..........................................

Japan

1,082

1,325,702

Goodman

Group

......................................

Australia

167,140

2,063,949

GPT

Group

(The)

.....................................

Australia

381,115

1,113,960

H&R

Real

Estate

Investment

Trust

........................

Canada

84,000

812,461

Healthcare

Realty

Trust,

Inc.

.............................

United

States

39,500

1,074,400

Healthpeak

Properties,

Inc.

..............................

United

States

62,596

1,621,862

Host

Hotels

&

Resorts,

Inc.

..............................

United

States

98,524

1,544,856

Japan

Hotel

REIT

Investment

Corp.

........................

Japan

2,416

1,211,224

Kenedix

Office

Investment

Corp.

..........................

Japan

256

1,287,196

Kilroy

Realty

Corp.

....................................

United

States

21,104

1,104,372

Life

Storage,

Inc.

......................................

United

States

9,681

1,080,980

Link

REIT

...........................................

Hong

Kong

179,002

1,462,682

Mapletree

Logistics

Trust

...............................

Singapore

1,138,650

1,377,895

Merlin

Properties

Socimi

SA

.............................

Spain

92,143

892,302

NETSTREIT

Corp.

....................................

United

States

56,215

1,060,777

b

Nippon

Building

Fund,

Inc.

..............................

Japan

169

843,276

NTT

UD

REIT

Investment

Corp.

..........................

Japan

971

1,060,223

Orix

JREIT,

Inc.

.......................................

Japan

851

1,155,942

Prologis,

Inc.

.........................................

United

States

65,704

7,730,076

Public

Storage

.......................................

United

States

15,918

4,977,081

Realty

Income

Corp.

...................................

United

States

57,521

3,926,384

Regency

Centers

Corp.

.................................

United

States

46,136

2,736,326

Rexford

Industrial

Realty,

Inc.

............................

United

States

43,031

2,478,155

RPT

Realty

..........................................

United

States

49,786

489,396

c

Ryman

Hospitality

Properties,

Inc.

.........................

United

States

15,578

1,184,395

Sabra

Health

Care

REIT,

Inc.

............................

United

States

43,400

606,298

SBA

Communications

Corp.

.............................

United

States

3,234

1,035,042

Segro

plc

...........................................

United

Kingdom

199,707

2,383,665

Simon

Property

Group,

Inc.

..............................

United

States

15,798

1,499,546

Spirit

Realty

Capital,

Inc.

................................

United

States

45,574

1,721,786

UDR,

Inc.

...........................................

United

States

69,704

3,209,172

UNITE

Group

plc

(The)

.................................

United

Kingdom

83,064

1,079,537

VICI

Properties,

Inc.

...................................

United

States

91,449

2,724,266

Welltower

,

Inc.

.......................................

United

States

46,390

3,820,217

97,599,960

Real

Estate

Management

&

Development

14.8%

Capitaland

Investment

Ltd.

..............................

Singapore

667,222

1,836,343

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Global

Real

Estate

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FGR-9

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Real

Estate

Management

&

Development

(continued)

Castellum

AB

........................................

Sweden

52,265

$

673,728

a

CTP

NV,

144A,

Reg

S

..................................

Netherlands

52,752

607,227

c

Fastighets

AB

Balder,

B

.................................

Sweden

189,549

908,024

Grainger

plc

.........................................

United

Kingdom

428,154

1,465,351

Hang

Lung

Properties

Ltd.

...............................

Hong

Kong

441,161

839,446

Mitsui

Fudosan

Co.

Ltd.

................................

Japan

152,383

3,273,323

New

World

Development

Co.

Ltd.

.........................

Hong

Kong

180,713

650,948

Nomura

Real

Estate

Holdings,

Inc.

........................

Japan

57,577

1,408,385

Shurgard

Self

Storage

SA

...............................

Belgium

18,340

855,260

Sun

Hung

Kai

Properties

Ltd.

............................

Hong

Kong

166,991

1,977,171

Vonovia

SE

..........................................

Germany

94,534

2,924,787

17,419,993

Total

Common

Stocks

(Cost

$89,788,324)

......................................

115,900,318

Short

Term

Investments

1.0%

a

a

Principal

Amount

*

a

Value

a

a

a

a

a

a

Repurchase

Agreements

1.0%

d

Joint

Repurchase

Agreement,

1.411%,

7/01/22

(Maturity

Value

$1,152,376)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$630,718)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$32,843)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$488,815)

Collateralized

by

U.S.

Government

Agency

Securities,

2%

-

6%,

12/28/37

-

12/20/51;

U.S.

Government

Agency

Strips,

7/15/23;

and

U.S.

Treasury

Notes,

0.25%

-

0.75%,

7/31/25

-

3/31/26

(valued

at

$1,175,735)

........................................

1,152,331

1,152,331

Total

Repurchase

Agreements

(Cost

$1,152,331)

................................

1,152,331

Country

Shares

e

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.0%

†

Money

Market

Funds

0.0%

†

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

....

United

States

33,000

33,000

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Global

Real

Estate

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FGR-10

See

Abbreviations

on

page

FGR-21.

Short

Term

Investments

(continued)

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Repurchase

Agreements

0.0%

†

d

Joint

Repurchase

Agreement,

J.P.

Morgan

Securities

LLC,

1.48%,

7/01/22

(Maturity

Value

$8,504)

Collateralized

by

U.S.

Treasury

Notes,

0.5%,

4/30/27

-

5/31/27

(valued

at

$8,674)

...................................

8,504

$

8,504

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$41,504)

...............................................................

41,504

Total

Short

Term

Investments

(Cost

$1,193,835

)

.................................

1,193,835

a

Total

Investments

(Cost

$90,982,159)

99.2%

....................................

$117,094,153

Other

Assets,

less

Liabilities

0.8%

.............................................

927,597

Net

Assets

100.0%

...........................................................

$118,021,750

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2022,

the

aggregate

value

of

these

securities

was

$1,487,592,

representing

1.3%

of

net

assets.

b

A

portion

or

all

of

the

security

is

on

loan

at

June

30,

2022.

See

Note

1(d).

c

Non-income

producing.

d

See

Note

1(c)

regarding

joint

repurchase

agreement.

e

See

Note

1(d)

regarding

securities

on

loan.

f

See

Note

3(e)

regarding

investments

in

affiliated

management

investment

companies.

g

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FGR-11

Franklin

Global

Real

Estate

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$89,788,324

Cost

-

Non-controlled

affil

iates

(Note

3e)

........................................................

33,000

Cost

-

Unaffiliated

repurchase

agreements

......................................................

1,160,835

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$39,918)

....................................

$115,900,318

Value

-

Non-controlled

affiliates

(Note

3e)

.......................................................

33,000

Value

-

Unaffiliated

repurchase

agreements

......................................................

1,160,835

Foreign

currency,

at

value

(cost

$6,276)

..........................................................

6,269

Receivables:

Capital

shares

sold

........................................................................

280

Dividends

and

interest

.....................................................................

466,359

European

Union

tax

reclaims

(Note

1

e

)

.........................................................

903,754

Total

assets

..........................................................................

118,470,815

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

124,926

Management

fees

.........................................................................

89,870

Distribution

fees

..........................................................................

24,797

Reports

to

shareholders

fees

................................................................

57,166

Professional

fees

.........................................................................

44,218

Trustees'

fees

and

expenses

.................................................................

551

Payable

upon

return

of

securities

loaned

(Note

1

d

)

..................................................

41,504

Accrued

expenses

and

other

liabilities

...........................................................

66,033

Total

liabilities

.........................................................................

449,065

Net

assets,

at

value

.................................................................

$118,021,750

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$96,067,892

Total

distributable

earnings

(losses)

.............................................................

21,953,858

Net

assets,

at

value

.................................................................

$118,021,750

Franklin

Global

Real

Estate

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$771,470

Shares

outstanding

........................................................................

60,513

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.75

Class

2:

Net

assets,

at

value

.......................................................................

$117,250,280

Shares

outstanding

........................................................................

9,520,731

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.32

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FGR-12

Franklin

Global

Real

Estate

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$185,444)

Unaffiliated

issuers

........................................................................

$1,978,137

Interest:

Unaffiliated

issuers

........................................................................

957

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

2,202

Non-controlled

affiliates

(Note

3

e

)

.............................................................

21

Total

investment

income

...................................................................

1,981,317

Expenses:

Management

fees

(Note

3

a

)

...................................................................

723,935

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

171,250

Custodian

fees

(Note

4

)

......................................................................

4,137

Reports

to

shareholders

fees

..................................................................

12,446

Professional

fees

...........................................................................

36,099

Trustees'

fees

and

expenses

..................................................................

1,207

Other

....................................................................................

26,703

Total

expenses

.........................................................................

975,777

Expense

reductions

(Note

4

)

...............................................................

(4)

Expenses

waived/paid

by

affiliates

(

Note

3e

and

3f)

..............................................

(115,057)

Net

expenses

.........................................................................

860,716

Net

investment

income

................................................................

1,120,601

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

(101,336)

Foreign

currency

transactions

................................................................

(21,909)

Net

realized

gain

(loss)

..................................................................

(123,245)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(33,692,552)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(90,915)

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(33,783,467)

Net

realized

and

unrealized

gain

(loss)

............................................................

(33,906,712)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(32,786,111)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FGR-13

Franklin

Global

Real

Estate

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$1,120,601

$1,289,600

Net

realized

gain

(loss)

.................................................

(123,245)

10,956,207

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(33,783,467)

22,199,213

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(32,786,111)

34,445,020

Distributions

to

shareholders:

Class

1

.............................................................

(78,041)

(29,467)

Class

2

.............................................................

(11,968,613)

(4,585,707)

Total

distributions

to

shareholders

..........................................

(12,046,654)

(4,615,174)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

58,241

(147,334)

Class

2

.............................................................

7,383,392

(9,286,881)

Total

capital

share

transactions

............................................

7,441,633

(9,434,215)

Net

increase

(decrease)

in

net

assets

...................................

(37,391,132)

20,395,631

Net

assets:

Beginning

of

period

.....................................................

155,412,882

135,017,251

End

of

period

..........................................................

$118,021,750

$155,412,882

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

Franklin

Global

Real

Estate

VIP

Fund

FGR-14

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

 Franklin

Templeton

Variable

Insurance

Products

Trust

(Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen

separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Global

Real

Estate

VIP

Fund

(Fund)

is

included

in

this

report.

Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

At

June

30,

2022,

82.1%

of

the

Fund’s

shares

were

held

through

one

insurance

company.

Investment

activities

of

these

insurance

company

separate

accounts

could

have

a

material

impact

on

the

Fund.

The

Fund

offers

two

classes

of

shares:

Class

1

and

Class

2.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege. 

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the Trust’s

Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Investments

in

open-end

mutual

funds

are

valued

at

the

closing

NAV.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day. Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time. In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FGR-15

Semiannual

Report

Franklin

Global

Real

Estate

VIP

Fund

(continued)

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Joint

Repurchase

Agreement

The

Fund

enters

into

a

joint

repurchase

agreement

whereby

its

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Fund's

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Fund,

certain

MRAs

may

permit

the

non-

defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Fund

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Fund

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the Fund

at

period

end,

as

indicated

in

the

Schedule

of

Investments,

had

been

entered

into

on

June

30,

2022.

d.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the

Fund,

and/or

a

joint

repurchase

agreement.

The

Fund

may

receive

income

from

the

investment

of

cash

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FGR-16

Semiannual

Report

Franklin

Global

Real

Estate

VIP

Fund

(continued)

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to

any

cash

collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

e.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

As

a

result

of

several

court

cases,

in

certain

countries

across

the

European

Union,

the

Fund

filed

additional

tax

reclaims

for

previously

withheld

taxes

on

dividends

earned

in

those

countries

(EU

reclaims).

Income

recognized,

if

any,

for

EU

reclaims

is

reflected

as

other

income

in

the

Statement

of

Operations

and

any

related

receivable,

if

any,

is

reflected

as

European

Union

tax

reclaims

in

the

Statement

of

Assets

and

Liabilities.

Any

fees

associated

with

these

filings

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

When

uncertainty

exists

as

to

the

ultimate

resolution

of

these

proceedings,

the

likelihood

of

receipt

of

these

EU

reclaims,

and

the

potential

timing

of

payment,

no

amounts

are

reflected

in

the

financial

statements.

For

U.S.

income

tax

purposes,

when

EU

reclaims

are

received

by

the

Fund

and

the

Fund

previously

passed

foreign

tax

credit

on

to

its

shareholders,

the

Fund

will

enter

into

a

closing

agreement

with

the

Internal

Revenue

Service

(IRS)

in

order

to

pay

the

associated

tax

liability

on

behalf

of

the

Fund’s

shareholders. 

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

f.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Securities

Lending

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FGR-17

Semiannual

Report

Franklin

Global

Real

Estate

VIP

Fund

(continued)

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

The

Fund

intends

to

distribute

substantially

all

of

the

income

quarterly.

g.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

h.

Guarantees

and

Indemnifications

Under

the

Trust’s

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust’s

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

66

$1,080

98

$1,479

Shares

issued

in

reinvestment

of

distributions

..........

6,194

78,041

1,752

29,467

Shares

redeemed

...............................

(1,207)

(20,880)

(12,274)

(178,280)

Net

increase

(decrease)

..........................

5,053

$58,241

(10,424)

$(147,334)

Class

2

Shares:

Shares

sold

...................................

133,495

$2,141,992

228,144

$3,630,429

Shares

issued

in

reinvestment

of

distributions

..........

983,456

11,968,613

281,332

4,585,707

Shares

redeemed

...............................

(433,322)

(6,727,213)

(1,108,976)

(17,503,017)

Net

increase

(decrease)

..........................

683,629

$7,383,392

(599,500)

$(9,286,881)

1.

Organization

and

Significant

Accounting

Policies

(continued)

f.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FGR-18

Semiannual

Report

Franklin

Global

Real

Estate

VIP

Fund

(continued)

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

FT

Institutional

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was

1.050%

of

the

Fund’s

average

daily

net

assets.

b.

Administrative

Fees

Under

an

agreement

with

FT

Institutional,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

FT

Institutional

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

a

distribution

plan

for

Class

2

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plan,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.35%

per

year

of

its

average

daily

net

assets.

The

Board

has

agreed

to

limit

the

current

rate

to

0.25%

per

year

for

Class

2.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

Subsidiary

Affiliation

Franklin

Templeton

Institutional,

LLC

(FT

Institutional)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

1.050%

Up

to

and

including

$500

million

0.950%

Over

$500

million,

up

to

and

including

$1

billion

0.900%

Over

$1

billion,

up

to

and

including

$1.5

billion

0.850%

Over

$1.5

billion,

up

to

and

including

$6.5

billion

0.830%

Over

$6.5

billion,

up

to

and

including

$11.5

billion

0.810%

Over

$11.5

billion,

up

to

and

including

$16.5

billion

0.790%

Over

$16.5

billion,

up

to

and

including

$19

billion

0.780%

Over

$19

billion,

up

to

and

including

$21.5

billion

0.770%

In

excess

of

$21.5

billion

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FGR-19

Semiannual

Report

Franklin

Global

Real

Estate

VIP

Fund

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

f.

Waiver

and

Expense

Reimbursements

FT

Institutional

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Fund

so

that

the

operating

expenses

(excluding

interest

expense,

distribution

fees

and

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

do

not

exceed

1.00%

based

on

the

average

net

assets

of

each

class

until

April

30,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund's

fiscal

year

end.

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

June

30,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

At

June

30,

2022,

the

cost

of

investments,

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Global

Real

Estate

VIP

Fund

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$—

$1,530,000

$(1,497,000)

$—

$—

$33,000

33,000

$21

Total

Affiliated

Securities

...

$—

$1,530,000

$(1,497,000)

$—

$—

$33,000

$21

Cost

of

investments

..........................................................................

$97,252,553

Unrealized

appreciation

........................................................................

$33,390,606

Unrealized

depreciation

........................................................................

(13,549,006)

Net

unrealized

appreciation

(depreciation)

..........................................................

$19,841,600

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FGR-20

Semiannual

Report

Franklin

Global

Real

Estate

VIP

Fund

(continued)

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

EU

reclaims,

passive

foreign

investment

company

shares,

corporate

actions

and

wash

sales.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

aggregated

$12,006,906

and

$15,605,114,

respectively.

7.

Concentration

of

Risk

Investing

in

foreign

securities

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities,

such

as

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

Political

and

financial

uncertainty

in

many

foreign

regions

may

increase

market

volatility

and

the

economic

risk

of

investing

in

foreign

securities.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

8.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

9.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

10.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

5.

Income

Taxes

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FGR-21

Semiannual

Report

Franklin

Global

Real

Estate

VIP

Fund

(continued)

11.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's assets

carried

at

fair

value,

is

as

follows:

12.

New

Accounting

Pronouncements

In

June

2022,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

13.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

Level

1

Level

2

Level

3

Total

Franklin

Global

Real

Estate

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Diversified

Telecommunication

Services

.....

$

—

$

880,365

$

—

$

880,365

Equity

Real

Estate

Investment

Trusts

(REITs)

.

73,334,682

24,265,278

—

97,599,960

Real

Estate

Management

&

Development

....

1,465,351

15,954,642

—

17,419,993

Short

Term

Investments

...................

33,000

1,160,835

—

1,193,835

Total

Investments

in

Securities

...........

$74,833,033

$42,261,120

a

$—

$117,094,153

a

Includes

foreign

securities

valued

at

$41,100,285,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

Selected

Portfolio

REIT

Real

Estate

Investment

Trust

FGI-1

Semiannual

Report

Franklin

Growth

and

Income

VIP

Fund

This

semiannual

report

for

Franklin

Growth

and

Income

VIP

Fund

covers

the

period

ended

June

30,

2022.

Class

1

Performance

Summary

as

of

June

30,

2022

The

Fund’s

Class

1

Shares

posted

a

-13.77%

total

return*

for

the

six-month

period

ended

June

30,

2022.

*The

Fund

has

an

expense

reduction

contractually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction;

without

this

reduction,

the

results

would

have

been

lower.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

FGI-2

Semiannual

Report

Franklin

Growth

and

Income

VIP

Fund

Fund

Goals

and

Main

Investments

The

Fund

seeks

capital

appreciation

with

current

income

as

a

secondary

goal.

Under

normal

market

conditions,

the

Fund

invests

predominantly

in

equity

securities,

including

common

stock,

preferred

stock

and

securities

convertible

into

common

stocks,

with

the

remainder

of

its

net

assets

in

other

equity-related

instruments

such

as

convertible

securities

and

equity-linked

notes

(ELNs).

The

Fund

does

not

currently

anticipate

investing

more

than

15%

of

its

net

assets

in

foreign

securities.

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

A

blend

strategy

results

in

investments

in

both

value

and

growth

stocks,

or

in

stocks

with

characteristics

of

both.

Value

stocks

may

not

increase

in

value

as

anticipated

or

may

decline

further

if

other

investors

fail

to

recognize

the

company’s

value,

or

favor

investing

in

faster-growing

companies.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues

and

can

fall

dramatically

if

the

company

fails

to

meet

those

projections.

Because

the

Fund

can

only

distribute

what

it

earns,

the

Fund’s

distributions

to

shareholders

may

decline

when

dividend

income

from

investments

in

stocks

decline

or

when

prevailing

interest

rates

fall.

To

the

extent

the

Fund

focuses

on

particular

countries,

regions,

industries,

sectors

or

types

of

investment

from

time

to

time,

it

may

be

subject

to

greater

risks

of

adverse

developments

in

such

areas

of

focus

than

a

fund

that

invests

in

a

wider

variety

of

countries,

regions,

industries,

sectors

or

investments.

Investing

in

foreign

securities

typically

involves

more

risks

than

investing

in

U.S.

securities,

including

risks

related

to

currency

exchange

rates

and

policies,

country

or

government

specific

issues,

less

favorable

trading

practices

or

regulation

and

greater

price

volatility.

Common

stocks

with

higher

dividend

yields

can

be

sensitive

to

interest-rate

movements.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia's

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia's

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

*Categories

within

the

Other

category

are

listed

in

full

in

the

Fund’s

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

primary

benchmark,

the

Russell

1000

®

Value

Index,

posted

a

-12.86%

total

return.

1

Also

for

comparison,

the

Fund’s

secondary

benchmark,

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

posted

a

-19.96%

total

return.

1

Portfolio

Composition

6/30/22

%

of

Total

Net

Assets

Oil,

Gas

&

Consumable

Fuels

9.1%

Capital

Markets

7.7%

Electric

Utilities

7.3%

Banks

6.7%

Pharmaceuticals

5.7%

Health

Care

Equipment

&

Supplies

5.1%

Beverages

4.2%

Health

Care

Providers

&

Services

4.0%

Aerospace

&

Defense

3.8%

Life

Sciences

Tools

&

Services

3.8%

Specialty

Retail

3.5%

Software

3.1%

Semiconductors

&

Semiconductor

Equipment

3.0%

Multiline

Retail

3.0%

Other*

27.7%

Short-Term

Investments

&

Other

Net

Assets

2.3%

1.

Source:

Morningstar.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

Franklin

Growth

and

Income

VIP

Fund

FGI-3

Semiannual

Report

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

posted

a

-19.96%

total

return

for

the

six

months

ended

June

30,

2022.

1

Concerns

surrounding

higher

inflation,

geopolitical

stability

and

rising

interest

rates

pressured

stocks,

particularly

in

the

second

half

of

the

period.

Elevated

demand

combined

with

supply

chain

disruptions

led

to

the

highest

inflation

since

1981

and

borrowing

costs

increased

from

historically

low

levels.

Russia’s

invasion

of

Ukraine

injected

further

uncertainty

into

financial

markets,

provoking

significant

volatility

in

commodity

and

equity

prices.

Gross

domestic

product

growth

contracted

in

the

first

quarter

of

2022

amid

lower

investments

in

inventories

and

a

growing

trade

deficit.

Private

domestic

investment

slowed

sharply,

while

government

spending

declined

in

the

first

quarter.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

The

inflation

rate

was

elevated

during

the

six-month

period

amid

increased

demand

and

supply

chain

bottlenecks.

U.S.

consumer

spending

on

goods

remained

strong

during

the

first

half

of

the

period,

adding

to

pressure

on

the

prices

of

many

products.

Energy

costs

also

rose,

as

oil

prices

increased

significantly,

driven

by

greater

global

demand

and

sanctions

on

Russia,

one

of

the

world’s

largest

oil

producers.

The

personal

consumption

expenditures

index,

a

measure

of

inflation,

rose

dramatically

during

the

period,

representing

the

highest

12-month

increase

in

decades.

The

unemployment

rate

declined

from

3.9%

in

December

2021

to

3.6%

in

June

2022,

but

a

relative

lack

of

available

workers

fueled

wage

growth,

adding

to

some

investors’

inflation

concerns.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

2022

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

will

continue

to

reduce

its

bond

holdings,

and

it

anticipated

instituting

further

interest-rate

increases

at

future

meetings.

Investment

Strategy

We

seek

to

invest

in

a

broadly

diversified

portfolio

of

equity

securities

that

we

consider

to

be

financially

strong,

with

a

focus

on

blue

chip

companies.

We

apply

a

bottom-up

approach

to

investing

in

individual

securities.

We

will

assess

the

market

price

of

a

company’s

securities

relative

to

our

evaluation

of

the

company’s

long-term

earnings,

cash

flow

potential

and

balance

sheet

strength.

We

also

consider

a

company’s

price/earnings

ratio,

return

on

capital,

profit

margins

and

asset

value.

We

consider

dividend

yield

and

the

opportunity

for

dividend

growth

in

selecting

stocks

for

the

Fund

because

we

believe

that,

over

time,

dividend

income

can

contribute

significantly

to

total

return

and

can

be

a

more

consistent

source

of

investment

return

than

capital

appreciation.

We

seek

to

take

advantage

of

price

dislocations

that

result

from

the

market’s

short-term

focus

and

choose

to

invest

in

those

companies

that,

in

our

opinion,

offer

the

best

trade-off

between

growth

opportunity,

business

and

financial

risk,

and

valuation.

Manager’s

Discussion

During

the

six-month

period,

the

financials

sector,

which

is

our

largest

sector

allocation,

detracted

most

from

absolute

performance.

Geopolitical

headlines

dominated

by

the

Ukraine

crisis

weighed

on

the

sector,

which

reacted

negatively

to

U.S.

sanctions

against

Russia

that

banned

transactions

with

other

financial

institutions.

This

impacted

our

holdings

in

JPMorgan

Chase,

Bank

of

America

and

Morgan

Stanley.

Weak

capital

markets

activity

and

higher

expenses

also

dampened

the

shares

of

JPMorgan

Chase.

Going

forward,

we

expect

revenue

to

increase

from

higher

interest

rates,

but

this

may

be

offset

by

higher

credit

costs

and

continued

weakness

within

its

capital

markets

business

and

potentially

slower

loan

demand.

Over

the

long

term,

the

company

can

potentially

benefit

from

a

healthy

economy,

Top

10

Holdings

6/30/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Johnson

&

Johnson

3.9%

Pharmaceuticals,

United

States

JPMorgan

Chase

&

Co.

3.3%

Banks,

United

States

Morgan

Stanley

3.1%

Capital

Markets,

United

States

Raytheon

Technologies

Corp.

2.9%

Aerospace

&

Defense,

United

States

Chevron

Corp.

2.9%

Oil,

Gas

&

Consumable

Fuels,

United

States

Duke

Energy

Corp.

2.9%

Electric

Utilities,

United

States

Procter

&

Gamble

Co.

(The)

2.8%

Household

Products,

United

States

United

Parcel

Service,

Inc.

2.7%

Air

Freight

&

Logistics,

United

States

Medtronic

plc

2.6%

Health

Care

Equipment

&

Supplies,

United

States

NextEra

Energy,

Inc.

2.4%

Electric

Utilities,

United

States

Franklin

Growth

and

Income

VIP

Fund

FGI-4

Semiannual

Report

low

credit

losses

and

a

strong

capital

position,

in

our

view.

JPMorgan

performed

well

in

its

most

recent

government-

mandated

stressed

tests

and

continues

to

have

a

strong

capital

base.

Performance

in

the

consumer

discretionary

sector

also

hindered

the

Fund’s

results.

Rising

costs,

supply

chain

bottlenecks

and

a

shift

in

consumer

purchasing

patterns

were

headwinds

for

big-box

retailer

Target

in

the

consumer

discretionary

sector.

While

first-quarter

sales

and

foot

traffic

were

better

than

expected,

there

were

sizeable

changes

in

consumer

behavior

related

to

what

people

were

buying

and

more

trade-down

to

Target’s

lower-cost

private

brand

that

led

to

higher-than-expected

inventory

levels.

Management

elected

to

markdown

items

swiftly

and

will

be

increasing

promotional

activity

in

the

next

few

months.

Additional

fuel

and

freight

costs

also

put

pressure

on

margins.

Longer

term,

we

remain

positive

on

Target,

which

continues

to

attract

and

deliver

value

to

a

broad

range

of

customers.

In

contrast,

the

energy

sector,

which

experienced

oil

prices

climb

to

multi-year

highs,

was

a

top

contributor

to

absolute

Fund

performance.

Chevron,

Suncor

Energy

and

Shell

led

results

in

this

space.

In

the

case

of

Chevron,

shares

of

the

oil

giant

reached

new

highs,

spurred

by

higher

oil

prices

and

a

surge

in

free

cash

flow

expectations.

Elsewhere,

Raytheon

Technologies

added

to

returns

in

the

industrials

sector.

The

aerospace

and

defense

company

has

been

benefiting

from

improvements

in

the

aerospace

market.

Thank

you

for

your

participation

in

Franklin

Growth

and

Income

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Class

1

Fund

Expenses

Franklin

Growth

and

Income

VIP

Fund

FGI-5

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

any

ongoing

expenses

of

the

Contract

for

which

the

Fund

is

an

investment

option

or

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

1

$1,000

$862.30

$2.75

$1,021.84

$2.99

0.59%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Growth

and

Income

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FGI-6

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.23

$13.33

$17.20

$14.80

$16.32

$15.97

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.13

0.25

0.31

0.41

0.31

0.35

Net

realized

and

unrealized

gains

(losses)

(2.22)

3.03

(0.13)

3.28

(0.97)

2.04

Total

from

investment

operations

........

(2.09)

3.28

0.18

3.69

(0.66)

2.39

Less

distributions

from:

Net

investment

income

..............

(0.48)

(0.39)

(0.63)

(0.41)

(0.43)

(1.03)

Net

realized

gains

.................

(6.53)

(0.99)

(3.42)

(0.88)

(0.43)

(1.01)

Total

distributions

...................

(7.01)

(1.38)

(4.05)

(1.29)

(0.86)

(2.04)

Net

asset

value,

end

of

period

..........

$6.13

$15.23

$13.33

$17.20

$14.80

$16.32

Total

return

c

.......................

(13.77)%

25.59%

5.81%

26.05%

(4.37)%

16.15%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.71%

0.85%

0.83%

0.72%

0.73%

0.72%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

0.59

%

0.59%

0.59%

0.59%

0.59%

0.59%

Net

investment

income

...............

2.03%

1.71%

2.31%

2.07%

1.96%

2.21%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$6,379

$5,772

$3,206

$3,539

$31,479

$35,865

Portfolio

turnover

rate

................

15.68%

30.74%

33.46%

25.20%

24.29%

33.91%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Growth

and

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FGI-7

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.76

$12.97

$16.84

$14.51

$16.02

$15.69

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.11

0.20

0.27

0.25

0.27

0.31

Net

realized

and

unrealized

gains

(losses)

(2.16)

2.94

(0.14)

3.33

(0.96)

2.00

Total

from

investment

operations

........

(2.05)

3.14

0.13

3.58

(0.69)

2.31

Less

distributions

from:

Net

investment

income

..............

(0.41)

(0.36)

(0.58)

(0.37)

(0.39)

(0.97)

Net

realized

gains

.................

(6.53)

(0.99)

(3.42)

(0.88)

(0.43)

(1.01)

Total

distributions

...................

(6.94)

(1.35)

(4.00)

(1.25)

(0.82)

(1.98)

Net

asset

value,

end

of

period

..........

$5.77

$14.76

$12.97

$16.84

$14.51

$16.02

Total

return

c

.......................

(13.97)%

25.24%

5.52%

25.66%

(4.58)%

15.85%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.95%

1.08%

1.08%

0.97%

0.98%

0.97%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

0.84%

0.84%

0.84%

0.84%

0.84%

0.84%

Net

investment

income

...............

1.74%

1.44%

2.07%

1.82%

1.71%

1.96%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$32,028

$39,934

$64,455

$69,635

$61,855

$74,105

Portfolio

turnover

rate

................

15.68%

30.74%

33.46%

25.20%

24.29%

33.91%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Growth

and

Income

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FGI-8

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

81.0%

Aerospace

&

Defense

3.8%

L3Harris

Technologies,

Inc.

..............................

United

States

880

$

212,696

Lockheed

Martin

Corp.

.................................

United

States

285

122,539

Raytheon

Technologies

Corp.

............................

United

States

11,710

1,125,448

1,460,683

Air

Freight

&

Logistics

2.7%

United

Parcel

Service,

Inc.,

B

............................

United

States

5,655

1,032,264

Banks

6.1%

Bank

of

America

Corp.

.................................

United

States

25,370

789,768

JPMorgan

Chase

&

Co.

.................................

United

States

11,110

1,251,097

Truist

Financial

Corp.

..................................

United

States

6,470

306,872

2,347,737

Beverages

4.2%

Coca-Cola

Co.

(The)

...................................

United

States

11,035

694,212

PepsiCo,

Inc.

........................................

United

States

5,455

909,130

1,603,342

Capital

Markets

6.1%

Ares

Management

Corp.

................................

United

States

10,520

598,167

BlackRock,

Inc.

.......................................

United

States

865

526,820

Morgan

Stanley

.......................................

United

States

15,825

1,203,649

2,328,636

Chemicals

2.3%

BASF

SE

...........................................

Germany

6,245

273,220

Huntsman

Corp.

......................................

United

States

11,693

331,497

Linde

plc

............................................

United

Kingdom

340

97,760

Sherwin-Williams

Co.

(The)

..............................

United

States

850

190,323

892,800

Commercial

Services

&

Supplies

1.6%

Republic

Services,

Inc.

.................................

United

States

4,645

607,891

Communications

Equipment

1.6%

Cisco

Systems,

Inc.

...................................

United

States

14,700

626,808

Consumer

Finance

0.4%

American

Express

Co.

.................................

United

States

1,090

151,096

Diversified

Financial

Services

1.6%

Apollo

Global

Management,

Inc.

..........................

United

States

13,020

631,210

Diversified

Telecommunication

Services

0.4%

TELUS

Corp.

........................................

Canada

7,250

161,480

Electric

Utilities

7.3%

Duke

Energy

Corp.

....................................

United

States

10,455

1,120,881

Entergy

Corp.

........................................

United

States

2,995

337,357

Evergy

,

Inc.

..........................................

United

States

4,885

318,746

NextEra

Energy,

Inc.

...................................

United

States

11,805

914,415

Xcel

Energy,

Inc.

......................................

United

States

1,600

113,216

2,804,615

Electrical

Equipment

1.9%

Eaton

Corp.

plc

.......................................

United

States

4,260

536,717

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Growth

and

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FGI-9

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Electrical

Equipment

(continued)

Emerson

Electric

Co.

..................................

United

States

2,310

$

183,738

720,455

Equity

Real

Estate

Investment

Trusts

(REITs)

2.1%

Healthpeak

Properties,

Inc.

..............................

United

States

13,675

354,319

Prologis,

Inc.

.........................................

United

States

2,780

327,067

Public

Storage

.......................................

United

States

450

140,702

822,088

Food

&

Staples

Retailing

1.1%

Walmart,

Inc.

........................................

United

States

3,440

418,235

Food

Products

0.9%

Mondelez

International,

Inc.,

A

............................

United

States

5,680

352,671

Health

Care

Equipment

&

Supplies

2.6%

Medtronic

plc

........................................

United

States

11,300

1,014,175

Health

Care

Providers

&

Services

3.3%

HCA

Healthcare,

Inc.

...................................

United

States

3,121

524,515

UnitedHealth

Group,

Inc.

................................

United

States

1,480

760,173

1,284,688

Hotels,

Restaurants

&

Leisure

1.7%

McDonald's

Corp.

.....................................

United

States

2,595

640,653

Household

Products

2.8%

Procter

&

Gamble

Co.

(The)

.............................

United

States

7,575

1,089,209

Insurance

0.6%

Arthur

J

Gallagher

&

Co.

................................

United

States

1,295

211,137

Life

Sciences

Tools

&

Services

1.3%

Thermo

Fisher

Scientific,

Inc.

............................

United

States

906

492,212

Machinery

0.5%

Illinois

Tool

Works,

Inc.

.................................

United

States

1,040

189,540

Media

0.6%

Comcast

Corp.,

A

.....................................

United

States

6,005

235,636

Multiline

Retail

2.1%

Target

Corp.

.........................................

United

States

5,650

797,949

Oil,

Gas

&

Consumable

Fuels

8.3%

Canadian

Natural

Resources

Ltd.

.........................

Canada

4,490

241,023

Chevron

Corp.

.......................................

United

States

7,770

1,124,941

EOG

Resources,

Inc.

..................................

United

States

4,330

478,205

Shell

plc,

ADR

........................................

Netherlands

12,770

667,743

Suncor

Energy,

Inc.

....................................

Canada

19,390

680,008

3,191,920

Pharmaceuticals

5.7%

AstraZeneca

plc,

ADR

..................................

United

Kingdom

5,170

341,582

Johnson

&

Johnson

...................................

United

States

8,510

1,510,610

Pfizer,

Inc.

...........................................

United

States

6,320

331,358

2,183,550

Road

&

Rail

0.8%

Norfolk

Southern

Corp.

.................................

United

States

1,331

302,523

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Growth

and

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FGI-10

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Semiconductors

&

Semiconductor

Equipment

1.6%

Broadcom,

Inc.

.......................................

United

States

480

$

233,189

Texas

Instruments,

Inc.

.................................

United

States

2,425

372,601

605,790

Software

1.9%

Microsoft

Corp.

.......................................

United

States

155

39,808

Oracle

Corp.

.........................................

United

States

10,055

702,543

742,351

Specialty

Retail

2.2%

Lowe's

Cos.,

Inc.

......................................

United

States

2,590

452,395

TJX

Cos.,

Inc.

(The)

...................................

United

States

2,160

120,636

Tractor

Supply

Co.

....................................

United

States

1,330

257,821

830,852

Water

Utilities

0.9%

Essential

Utilities,

Inc.

..................................

United

States

7,229

331,450

Total

Common

Stocks

(Cost

$21,412,154)

......................................

31,105,646

a

Equity-Linked

Securities

9.5%

Banks

0.6%

b

BNP

Paribas

Issuance

BV

into

Bank

of

America

Corp.,

144A,

6%,

11/08/22

..........................................

United

States

7,200

232,570

Chemicals

0.6%

b

Citigroup

Global

Markets

Holdings,

Inc.

into

Huntsman

Corp.,

144A,

8.75%,

4/21/23

.....................................

United

States

7,200

218,847

Consumer

Finance

0.6%

b

BNP

Paribas

Issuance

BV

into

American

Express

Co.,

144A,

6.25%,

1/27/23

...........................................

United

States

1,700

245,492

Electrical

Equipment

0.5%

b

Royal

Bank

of

Canada

into

Eaton

Corp.

plc,

144A,

5.75%,

8/26/22

United

States

1,600

204,260

Health

Care

Providers

&

Services

0.7%

b

Royal

Bank

of

Canada

into

HCA

Healthcare,

Inc.,

Senior

Note,

144A,

6%,

7/15/22

........................................

United

States

1,640

280,852

Internet

&

Direct

Marketing

Retail

0.8%

b

Citigroup

Global

Markets

Holdings,

Inc.

into

Amazon.com,

Inc.,

144A,

6.25%,

5/12/23

.....................................

United

States

140

315,556

Life

Sciences

Tools

&

Services

0.8%

b

Credit

Suisse

AG

into

Thermo

Fisher

Scientific,

Inc.,

144A,

4.5%,

8/05/22

...........................................

United

States

540

294,161

Multiline

Retail

0.9%

b

Goldman

Sachs

International

Bank

into

Dollar

Tree,

Inc.,

144A,

7.5%,

7/08/22

......................................

United

States

2,300

356,193

Oil,

Gas

&

Consumable

Fuels

0.8%

b

Goldman

Sachs

International

Bank

into

Canadian

Natural

Resources

Ltd.,

144A,

9.5%,

12/30/22

.............................

Canada

6,200

289,199

Road

&

Rail

0.7%

b

Credit

Suisse

AG

into

Norfolk

Southern

Corp.,

144A,

6%,

11/18/22

United

States

1,200

279,574

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Growth

and

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FGI-11

a

a

Country

Shares

a

Value

a

a

a

a

a

a

a

Equity-Linked

Securities

(continued)

Software

1.2%

b

Citigroup

Global

Markets

Holdings,

Inc.

into

Salesforce,

Inc.,

144A,

5%,

8/19/22

........................................

United

States

1,280

$

214,916

b

Royal

Bank

of

Canada

into

Microsoft

Corp.,

144A,

6%,

12/16/22

..

United

States

900

238,798

453,714

Specialty

Retail

1.3%

b

BNP

Paribas

Issuance

BV

into

TJX

Cos.,

Inc.

(The),

144A,

5.75%,

9/30/22

...........................................

United

States

4,900

276,429

b

Citigroup

Global

Markets

Holdings,

Inc.

into

Tractor

Supply

Co.,

144A,

7.25%,

6/09/23

.................................

United

States

1,100

205,458

481,887

Total

Equity-Linked

Securities

(Cost

$4,228,537)

................................

3,652,305

Convertible

Preferred

Stocks

7.2%

Capital

Markets

1.6%

KKR

&

Co.,

Inc.,

6%,

C

.................................

United

States

10,095

590,255

Health

Care

Equipment

&

Supplies

2.5%

Becton

Dickinson

and

Co.,

6%,

B

.........................

United

States

6,820

337,317

Boston

Scientific

Corp.,

5.5%,

A

..........................

United

States

6,185

627,406

964,723

Life

Sciences

Tools

&

Services

1.7%

Danaher

Corp.,

5%,

B

..................................

United

States

490

648,373

Semiconductors

&

Semiconductor

Equipment

1.4%

Broadcom,

Inc.,

8%,

A

..................................

United

States

365

548,650

Total

Convertible

Preferred

Stocks

(Cost

$2,987,953)

............................

2,752,001

Total

Long

Term

Investments

(Cost

$28,628,644)

................................

37,509,952

a

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Growth

and

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FGI-12

Short

Term

Investments

2.4%

a

a

Principal

Amount

*

a

Value

a

a

a

a

a

a

Repurchase

Agreements

2.4%

c

Joint

Repurchase

Agreement,

1.411%,

7/01/22

(Maturity

Value

$932,199)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$510,211)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$26,568)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$395,420)

Collateralized

by

U.S.

Government

Agency

Securities,

2%

-

6%,

12/28/37

-

12/20/51;

U.S.

Government

Agency

Strips,

7/15/23;

and

U.S.

Treasury

Notes,

0.25%

-

0.75%,

7/31/25

-

3/31/26

(valued

at

$951,095)

.........................................

932,163

$

932,163

Total

Repurchase

Agreements

(Cost

$932,163)

..................................

932,163

Total

Short

Term

Investments

(Cost

$932,163

)

..................................

932,163

a

Total

Investments

(Cost

$29,560,807)

100.1%

...................................

$38,442,115

Other

Assets,

less

Liabilities

(0.1)%

...........................................

(35,386)

Net

Assets

100.0%

...........................................................

$38,406,729

See

Abbreviations

on

page

FGI-

24

.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

See

Note

1(d)

regarding

equity-linked

securities.

b

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2022,

the

aggregate

value

of

these

securities

was

$3,652,305,

representing

9.5%

of

net

assets.

c

See

Note

1(c)

regarding

joint

repurchase

agreement.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FGI-13

Franklin

Growth

and

Income

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$28,628,644

Cost

-

Unaffiliated

repurchase

agreements

......................................................

932,163

Value

-

Unaffiliated

issuers

..................................................................

$37,509,952

Value

-

Unaffiliated

repurchase

agreements

......................................................

932,163

Cash

....................................................................................

7,351

Receivables:

Investment

securities

sold

...................................................................

44,154

Capital

shares

sold

........................................................................

10,647

Dividends

and

interest

.....................................................................

42,112

Total

assets

..........................................................................

38,546,379

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

3,906

Capital

shares

redeemed

...................................................................

65,108

Management

fees

.........................................................................

7,324

Distribution

fees

..........................................................................

6,679

Reports

to

shareholders

fees

................................................................

23,797

Professional

fees

.........................................................................

26,985

Trustees'

fees

and

expenses

.................................................................

673

Accrued

expenses

and

other

liabilities

...........................................................

5,178

Total

liabilities

.........................................................................

139,650

Net

assets,

at

value

.................................................................

$38,406,729

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$27,447,837

Total

distributable

earnings

(losses)

.............................................................

10,958,892

Net

assets,

at

value

.................................................................

$38,406,729

Franklin

Growth

and

Income

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$6,378,611

Shares

outstanding

........................................................................

1,041,016

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$6.13

Class

2:

Net

assets,

at

value

.......................................................................

$32,028,118

Shares

outstanding

........................................................................

5,546,097

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$5.77

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FGI-14

Franklin

Growth

and

Income

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$7,274)

Unaffiliated

issuers

........................................................................

$544,935

Interest:

Unaffiliated

issuers

........................................................................

1,354

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

1,338

Non-controlled

affiliates

(Note

3

e

)

.............................................................

269

Total

investment

income

...................................................................

547,896

Expenses:

Management

fees

(Note

3

a

)

...................................................................

132,432

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

45,315

Custodian

fees

(Note

4

)

......................................................................

248

Reports

to

shareholders

fees

..................................................................

(32,528)

Professional

fees

...........................................................................

32,517

Trustees'

fees

and

expenses

..................................................................

878

Other

....................................................................................

14,655

Total

expenses

.........................................................................

193,517

Expense

reductions

(Note

4

)

...............................................................

(279)

Expenses

waived/paid

by

affiliates

(

Note

3e)

...................................................

(22,907)

Net

expenses

.........................................................................

170,331

Net

investment

income

................................................................

377,565

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

1,890,669

Foreign

currency

transactions

................................................................

15

Net

realized

gain

(loss)

..................................................................

1,890,684

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(8,488,032)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(722)

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(8,488,754)

Net

realized

and

unrealized

gain

(loss)

............................................................

(6,598,070)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(6,220,505)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FGI-15

Franklin

Growth

and

Income

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$377,565

$973,383

Net

realized

gain

(loss)

.................................................

1,890,684

19,987,628

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(8,488,754)

(5,408,767)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(6,220,505)

15,552,244

Distributions

to

shareholders:

Class

1

.............................................................

(3,327,326)

(341,784)

Class

2

.............................................................

(17,571,734)

(6,298,087)

Total

distributions

to

shareholders

..........................................

(20,899,060)

(6,639,871)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

4,860,598

1,996,872

Class

2

.............................................................

14,960,560

(32,864,638)

Total

capital

share

transactions

............................................

19,821,158

(30,867,766)

Net

increase

(decrease)

in

net

assets

...................................

(7,298,407)

(21,955,393)

Net

assets:

Beginning

of

period

.....................................................

45,705,136

67,660,529

End

of

period

..........................................................

$38,406,729

$45,705,136

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

Franklin

Growth

and

Income

VIP

Fund

FGI-16

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Templeton

Variable

Insurance

Products

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Growth

and

Income

VIP

Fund

(Fund)

is

included

in

this

report.

Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

At

June

30,

2022,

41.9%

of

the

Fund’s

shares

were

held

through

one

insurance

company.

Investment

activities

of

these

insurance

company

separate

accounts

could

have

a

material

impact

on

the

Fund.

The

Fund

offers

two

classes

of

shares:

Class

1

and

Class

2.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege.

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price

of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities.

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day. Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time. In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information. 

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FGI-17

Semiannual

Report

Franklin

Growth

and

Income

VIP

Fund

(continued)

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board. 

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations. 

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Joint

Repurchase

Agreement

The

Fund

enters

into

a

joint

repurchase

agreement

whereby

its

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Fund's

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Fund,

certain

MRAs

may

permit

the

non-

defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Fund

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Fund

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the Fund

at

period

end,

as

indicated

in

the

Schedule

of

Investments,

had

been

entered

into

on

June

30,

2022.

d.

Equity-Linked

Securities

The

Fund

invests

in

equity-linked

securities.

Equity-linked

securities

are

hybrid

financial

instruments

that

generally

combine

both

debt

and

equity

characteristics

into

a

single

note

form.

Income

received

from

equity-linked

securities

is

recorded

as

realized

gains

in

the

Statement

of

Operations

and

may

be

based

on

the

performance

of

an

underlying

equity

security,

an

equity

index,

or

an

option

position.

The

risks

of

investing

in

equity-linked

securities

include

unfavorable

price

movements

in

the

underlying

security

and

the

credit

risk

of

the

issuing

financial

institution.

There

may

be

no

guarantee

of

a

return

of

principal

with

equity-linked

securities

and

the

appreciation

potential

may

be

limited.

Equity-linked

securities

may

be

more

volatile

and

less

liquid

than

other

investments

held

by

the

Fund.

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FGI-18

Semiannual

Report

Franklin

Growth

and

Income

VIP

Fund

(continued)

e.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the Fund,

and/or

a

joint

repurchase

agreement.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to any

cash collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

At

June

30,

2022,

the

Fund

had

no

securities

on

loan.

f.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date. 

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

g.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Dividend

income

and

capital

gain

distributions

are

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FGI-19

Semiannual

Report

Franklin

Growth

and

Income

VIP

Fund

(continued)

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

h.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

i.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

127,545

$1,650,100

145,803

$2,117,954

Shares

issued

in

reinvestment

of

distributions

..........

542,794

3,327,326

24,659

341,784

Shares

redeemed

...............................

(8,296)

(116,828)

(31,887)

(462,866)

Net

increase

(decrease)

..........................

662,043

$4,860,598

138,575

$1,996,872

Class

2

Shares:

Shares

sold

...................................

26,023

$345,592

80,772

$1,113,188

Shares

issued

in

reinvestment

of

distributions

..........

3,040,093

17,571,734

467,912

6,298,087

Shares

redeemed

...............................

(224,887)

(2,956,766)

(2,813,816)

(40,275,913)

Net

increase

(decrease)

..........................

2,841,229

$14,960,560

(2,265,132)

$(32,864,638)

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

1.

Organization

and

Significant

Accounting

Policies

(continued)

g.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FGI-20

Semiannual

Report

Franklin

Growth

and

Income

VIP

Fund

(continued)

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was

0.625%

of

the

Fund’s

average

daily

net

assets.

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

a

distribution

plan

for

Class

2

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plan,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.35%

per

year

of

its

average

daily

net

assets.

The

Board

has

agreed

to

limit

the

current

rate

to

0.25%

per

year

for

Class

2.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rate,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

e.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$112.5

billion,

up

to

and

including

$15

billion

0.400%

In

excess

of

$15

billion

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FGI-21

Semiannual

Report

Franklin

Growth

and

Income

VIP

Fund

(continued)

f.

Waiver

and

Expense

Reimbursements

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Fund

so

that

the

operating

expenses

(excluding

interest

expense,

distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

do

not

exceed

0.59%

based

on

the

average

net

assets

of

each

class

until

April

30,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund's

fiscal

year

end.

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

June

30,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

At

June

30,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

equity-linked

securities

and

wash

sales.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

aggregated

$6,614,834

and

$7,810,041,

respectively.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Growth

and

Income

VIP

Fund

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$430,000

$4,148,000

$(4,578,000)

$—

$—

$—

—

$269

Total

Affiliated

Securities

...

$430,000

$4,148,000

$(4,578,000)

$—

$—

$—

$269

Cost

of

investments

..........................................................................

$29,673,861

Unrealized

appreciation

........................................................................

$10,547,068

Unrealized

depreciation

........................................................................

(1,778,814)

Net

unrealized

appreciation

(depreciation)

..........................................................

$8,768,254

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FGI-22

Semiannual

Report

Franklin

Growth

and

Income

VIP

Fund

(continued)

7.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

8.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

9.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

10.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's assets

carried

at

fair

value,

is

as

follows:

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FGI-23

Semiannual

Report

Franklin

Growth

and

Income

VIP

Fund

(continued)

11.

New

Accounting

Pronouncements

In June

2022,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

Level

1

Level

2

Level

3

Total

Franklin

Growth

and

Income

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

1,460,683

$

—

$

—

$

1,460,683

Air

Freight

&

Logistics

...................

1,032,264

—

—

1,032,264

Banks

...............................

2,347,737

—

—

2,347,737

Beverages

...........................

1,603,342

—

—

1,603,342

Capital

Markets

........................

2,328,636

—

—

2,328,636

Chemicals

...........................

619,580

273,220

—

892,800

Commercial

Services

&

Supplies

...........

607,891

—

—

607,891

Communications

Equipment

..............

626,808

—

—

626,808

Consumer

Finance

.....................

151,096

—

—

151,096

Diversified

Financial

Services

.............

631,210

—

—

631,210

Diversified

Telecommunication

Services

.....

161,480

—

—

161,480

Electric

Utilities

........................

2,804,615

—

—

2,804,615

Electrical

Equipment

....................

720,455

—

—

720,455

Equity

Real

Estate

Investment

Trusts

(REITs)

.

822,088

—

—

822,088

Food

&

Staples

Retailing

.................

418,235

—

—

418,235

Food

Products

........................

352,671

—

—

352,671

Health

Care

Equipment

&

Supplies

.........

1,014,175

—

—

1,014,175

Health

Care

Providers

&

Services

..........

1,284,688

—

—

1,284,688

Hotels,

Restaurants

&

Leisure

.............

640,653

—

—

640,653

Household

Products

....................

1,089,209

—

—

1,089,209

Insurance

............................

211,137

—

—

211,137

Life

Sciences

Tools

&

Services

............

492,212

—

—

492,212

Machinery

............................

189,540

—

—

189,540

Media

...............................

235,636

—

—

235,636

Multiline

Retail

........................

797,949

—

—

797,949

Oil,

Gas

&

Consumable

Fuels

.............

3,191,920

—

—

3,191,920

Pharmaceuticals

.......................

2,183,550

—

—

2,183,550

Road

&

Rail

..........................

302,523

—

—

302,523

Semiconductors

&

Semiconductor

Equipment

.

605,790

—

—

605,790

Software

.............................

742,351

—

—

742,351

Specialty

Retail

........................

830,852

—

—

830,852

Water

Utilities

.........................

331,450

—

—

331,450

Equity-Linked

Securities

...................

—

3,652,305

—

3,652,305

Convertible

Preferred

Stocks

...............

2,752,001

—

—

2,752,001

Short

Term

Investments

...................

—

932,163

—

932,163

Total

Investments

in

Securities

...........

$33,584,427

$4,857,688

a

$—

$38,442,115

a

Includes

foreign

securities

valued

at

$273,220,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

10.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FGI-24

Semiannual

Report

Franklin

Growth

and

Income

VIP

Fund

(continued)

12.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

Selected

Portfolio

ADR

American

Depositary

Receipt

FI-1

Semiannual

Report

Franklin

Income

VIP

Fund

This

semi

annual

report

for

Franklin

Income

VIP

Fund

covers

the

period

ended

June

30,

2022

.

Class

1

Performance

Summary

as

of

June

30,

2022

The

Fund’s

Class

1

Shares

posted

a

-7.58%

total

return

for

the

six-month

period

ended

June

30,

2022.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

FI-2

Semiannual

Report

Franklin

Income

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

to

maximize

income,

while

maintaining

prospects

for

capital

appreciation.

Under

normal

market

conditions,

the

Fund

invests

in

a

diversified

portfolio

of

debt

and

equity

securities.

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

High-

yield

debt

securities

are

generally

considered

predominantly

speculative

by

the

applicable

rating

agencies

as

their

issuers

are

more

likely

to

encounter

financial

difficulties

because

they

may

be

more

highly

leveraged,

or

because

of

other

considerations.

When

interest

rates

rise,

debt

security

prices

generally

fall.

The

opposite

is

also

generally

true:

debt

security

prices

rise

when

interest

rates

fall.

Changes

in

an

issuer’s

financial

strength

or

in

a

security’s

or

government’s

credit

rating

may

affect

a

security’s

value.

The

Fund's

distributions

to

shareholders

may

decline

when

prevailing

interest

rates

fall,

when

dividend

income

from

investments

in

stocks

decline,

when

the

Fund

experiences

defaults

on

debt

securities

it

holds

or

when

it

realizes

a

loss

upon

the

sale

of

a

debt

security.

Investing

in

foreign

securities

typically

involves

more

risks

than

investing

in

U.S.

securities,

including

risks

related

to

currency

exchange

rates

and

policies,

country

or

government

specific

issues,

less

favorable

trading

practices

or

regulation

and

greater

price

volatility.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia's

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia's

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

primary

benchmark,

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

which

tracks

total

U.S.

equity

market

performance,

posted

a

-19.96%

total

return.

1

The

Fund’s

secondary

benchmark,

the

Blended

Benchmark,

posted

a

-10.67%

total

return.

2

*Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

posted

a

-19.96%

total

return

for

the

six

months

ended

June

30,

2022.

1

Concerns

surrounding

Portfolio

Composition

6/30/22

%

of

Total

Net

Assets

Diversified

Financial

Services

10.2%

Health

Care

Providers

&

Services

7.8%

Pharmaceuticals

7.7%

Oil,

Gas

&

Consumable

Fuels

7.2%

Banks

6.3%

Semiconductors

&

Semiconductor

Equipment

5.5%

Electric

Utilities

5.4%

Media

4.7%

Aerospace

&

Defense

3.0%

Capital

Markets

3.0%

Multi-Utilities

2.7%

Diversified

Telecommunication

Services

2.4%

Chemicals

2.3%

Biotechnology

2.3%

Other*

28.6%

Short-Term

Investments

&

Other

Net

Assets

0.9%

1.

Source:

Morningstar.

2.

Source:

FactSet.

The

Fund’s

Blended

Benchmark

was

calculated

internally

and

was

composed

of

50%

MSCI

USA

High

Dividend

Yield

Index

+

25%

Bloomberg

U.S.

High

Yield

Very

Liquid

Index

+

25%

Bloomberg

U.S.

Aggregate

Bond

Index.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

Franklin

Income

VIP

Fund

FI-3

Semiannual

Report

higher

inflation,

geopolitical

stability

and

rising

interest

rates

pressured

stocks,

particularly

in

the

second

half

of

the

period.

Elevated

demand

combined

with

supply

chain

disruptions

led

to

the

highest

inflation

since

1981

and

borrowing

costs

increased

from

historically

low

levels.

Russia’s

invasion

of

Ukraine

injected

further

uncertainty

into

financial

markets,

provoking

significant

volatility

in

commodity

and

equity

prices.

Gross

domestic

product

growth

contracted

in

the

first

quarter

of

2022

amid

lower

investments

in

inventories

and

a

growing

trade

deficit.

Private

domestic

investment

slowed

sharply,

while

government

spending

declined

in

the

first

quarter.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

The

inflation

rate

was

elevated

during

the

six-month

period

amid

increased

demand

and

supply

chain

bottlenecks.

U.S.

consumer

spending

on

goods

remained

strong

during

the

first

half

of

the

period,

adding

to

pressure

on

the

prices

of

many

products.

Energy

costs

also

rose,

as

oil

prices

increased

significantly,

driven

by

greater

global

demand

and

sanctions

on

Russia,

one

of

the

world’s

largest

oil

producers.

The

personal

consumption

expenditures

index,

a

measure

of

inflation,

rose

dramatically

during

the

period,

representing

the

highest

12-month

increase

in

decades.

The

unemployment

rate

declined

from

3.9%

in

December

2021

to

3.6%

in

June

2022,

but

a

relative

lack

of

available

workers

fueled

wage

growth,

adding

to

some

investors’

inflation

concerns.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

2022

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

will

continue

to

reduce

its

bond

holdings,

and

it

anticipated

instituting

further

interest-rate

increases

at

future

meetings.

Investment

Strategy

We

search

for

undervalued

or

out-of-favor

securities

we

believe

offer

opportunities

for

income

today

and

significant

growth

tomorrow.

In

analyzing

corporate

debt

and

equity

securities,

we

consider

such

factors

as

a

security’s

relative

value

based

on

anticipated

cash

flow,

interest

or

dividend

coverage,

asset

coverage

and

earnings

prospects;

the

experience

and

strength

of

the

company’s

management;

the

company’s

changing

financial

condition

and

market

recognition

of

the

change;

the

company’s

sensitivity

to

changes

in

interest

rates

and

business

conditions;

and

the

company’s

debt

maturity

schedules

and

borrowing

requirements.

When

choosing

investments

for

the

Fund,

we

apply

a

bottom-up,

value

oriented,

long-term

approach,

focusing

on

the

market

price

of

a

company’s

securities

relative

to

our

evaluation

of

the

company’s

long-term

earnings,

asset

value

and

cash

flow

potential.

We

also

consider

a

company’s

price/earnings

ratio,

profit

margins

and

liquidation

value,

and

we

perform

independent

analysis

of

the

debt

securities

being

considered

for

the

Fund’s

portfolio,

rather

than

relying

principally

on

the

rating

assigned

by

rating

organizations.

Manager’s

Discussion

During

the

six-month

period

under

review,

the

Fund

performed

better

than

the

Fund’s

blended

benchmark

across

both

equity

and

fixed

income.

Dividend

stocks,

particularly

value-oriented

sectors,

outperformed

growth-oriented

peers

considerably

during

the

period.

The

equity

component

of

the

Fund’s

blended

benchmark

decreased

with

the

MSCI

USA

High

Dividend

Yield

Index

posting

negative

returns

for

the

six-month

period.

The

Fund’s

equity

positions

outperformed

the

Fund’s

blended

benchmark.

Government

bond

yields

increased,

and

corporate

credit

spreads

widened

materially

during

the

period

as

inflationary

concerns

and

aggressive

monetary

policy

tightening

elevated

concerns

around

growth

prospects

globally.

Fixed

income

returns

for

the

Fund

outperformed

the

Fund’s

blended

benchmark.

The

Bloomberg

U.S.

Aggregate

Bond

Index

as

well

as

the

Bloomberg

U.S.

High

Yield

Very

Liquid

Index

posted

negative

returns

during

the

period.

The

Fund

entered

the

period

with

an

equity

weighting

of

over

two

thirds

of

the

portfolio

with

the

remainder

in

fixed

income

and

a

small

position

in

cash

equivalents.

The

Fund

made

meaningful

shifts

to

its

asset

allocation

over

the

period

under

review

in

response

to

the

market

conditions.

The

Fund

decreased

exposure

to

the

equity

markets

given

elevated

valuations

and

increased

exposure

to

the

fixed

income

markets

as

yields

moved

higher

and

credit

spreads

increased.

The

Fund’s

equity

weighting

at

period-end

was

slightly

over

one

half

of

the

portfolio,

and

the

Fund’s

fixed

income

weighting

was

just

under

one

half

of

the

portfolio

with

a

marginal

position

in

cash

equivalents.

Franklin

Income

VIP

Fund

FI-4

Semiannual

Report

Fixed

income

Fixed

income

holdings

posted

negative

returns

during

the

period,

although

it

performed

better

than

the

Fund’s

blended

fixed

income

benchmark.

As

an

asset

class,

fixed

income

underperformed

the

equity

asset

class,

which

benefited

the

Fund

given

our

overweight

allocation

to

equities

relative

to

the

Fund’s

blended

benchmark.

The

Fund’s

duration

positioning

at

the

front

end

of

the

yield

curve

in

the

face

of

rising

interest

rates

during

the

period

was

a

key

source

driving

the

better

performance

relative

to

the

Fund’s

benchmark.

Offsetting

this

duration

positioning

was

widening

credit

spreads

during

the

period

under

review.

The

Fund

actively

used

this

period

to

increase

exposure

to

the

fixed

income

asset

class

given

increased

yields

and

total

return

prospects.

Every

corporate

credit

sector

posted

negative

absolute

returns

during

the

period

under

review,

with

health

care,

consumer

discretionary,

information

technology

(IT)

and

consumer

staples

the

notable

absolute

detractors.

Relative

to

the

Fund’s

blended

benchmark,

positive

contributors

included

the

financials

and

industrials

sectors,

while

the

key

detractor

was

health

care.

Our

holdings

in

U.S.

Treasuries

and

agency

mortgage-backed

securities

were

absolute

detractors

during

the

period,

but

these

positions

were

shorter

in

duration

and

much

smaller

in

size

relative

to

the

benchmark,

so

these

sectors

were

positive

contributors

relative

to

the

Fund’s

blended

benchmark.

High-yield

rated

hospital

peers

Community

Health

Systems

and

Tenet

Healthcare

were

detractors

as

increased

labor

costs

resulted

in

margin

pressure

for

the

companies.

Additional

detractors

in

the

health

care

space

included

pharmaceutical

peers

Bausch

Health

and

Endo

Pharmaceutical.

Outside

of

health

care,

Dish

Network

in

the

communication

services

sector

and

Ford

Motor

in

the

consumer

discretionary

sector

weighed

on

results.

PBF

Energy

was

a

key

corporate

bond

contributor

to

absolute

performance

during

the

period

as

the

company

experienced

increased

profitability

in

response

to

tight

petroleum

refining

market

fundamentals.

Equity

Equity

holdings

posted

negative

returns

during

the

period

but

performed

better

than

the

Fund’s

equity

benchmark.

As

an

asset-class,

equities

also

performed

better

than

fixed

income

during

the

period.

We

actively

reduced

exposure

to

the

equity

markets

during

the

period,

particularly

within

common

stocks.

The

Fund

saw

mixed

performance

across

sectors

during

the

period

under

review

with

strong

positive

performance

from

the

energy,

health

care

and

utilities

sectors,

while

experiencing

negative

contributions

from

consumer

discretionary,

financials

and

IT.

Energy

peers

Chevron

and

Exxon

Mobil

were

notable

positive

contributors

during

the

period

as

the

companies

saw

increased

profitability

amid

higher

commodity

prices.

Top

performers

in

the

Fund

outside

of

energy

were

large-cap

pharmaceutical

players

Bristol-

Myers

Squibb,

AbbVie

and

Merck

within

the

health

care

sector

as

well

as

Sempra

Energy

and

American

Electric

Power

within

the

utilities

sector.

Key

detractors

included

common

equity

positions

in

the

financials

sector

as

growth

concerns

outpaced

the

benefits

of

rising

interest

rates,

with

JPMorgan

Chase

and

Bank

of

America

producing

negative

returns.

Communication

services

peers

Amazon.com

and

Comcast

and

IT

peers

Intel

Corporation,

Workday

and

Texas

Instruments

were

other

notable

detractors

during

the

period.

Despite

positive

absolute

contributions,

equity

holdings

in

the

health

care

sector

were

modest

detractors

in

the

period

relative

to

the

Fund’s

benchmark.

During

the

period,

the

Fund

did

not

use

any

derivatives.

At

times

the

Fund

will

use

derivatives

such

as

equity

call

and

put

options

to

sell

and

reduce

positions

and/or

to

initiate

and

add

to

positions.

Top

Five

Fixed

Income

Holdings

6/30/22

Company

Industry,

Country

%

of

Total

Net

Assets

a

a

U.S.

Treasury

Notes

9.4%

Diversified

Financial

Servic

es,

United

States

CHS/Community

Health

Systems,

Inc.

3.5%

Health

Care

Providers

&

Services,

United

States

Tenet

Healthcare

Corp.

2.2%

Health

Care

Providers

&

Services,

United

States

Bausch

Health

Cos.,

Inc.

1.9%

Pharmaceuticals,

United

States

DISH

DBS

Corp.

1.5%

Media,

United

States

Top

Five

Equity

Holdings

6/30/22

Company

Industry,

Country

%

of

Total

Net

Assets

a

a

Chevron

Corp.

1.6%

Oil,

Gas

&

Consumable

Fuels,

United

States

Dominion

Energy,

Inc.

1.6%

Multi-Utilities,

United

States

UBS

AG

into

Chevron

Corp.

1.4%

Oil,

Gas

&

Consumable

Fuels,

United

States

Southern

Co.

(The)

1.4%

Electric

Utilities,

United

States

Lockheed

Martin

Corp.

1.4%

Aerospace

&

Defense,

United

States

Franklin

Income

VIP

Fund

FI-5

Semiannual

Report

Thank

you

for

your

participation

in

Franklin

Income

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Class

1

Fund

Expenses

Franklin

Income

VIP

Fund

FI-6

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

any

ongoing

expenses

of

the

Contract

for

which

the

Fund

is

an

investment

option

or

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

1

$1,000

$924.20

$2.23

$1,022.48

$2.34

0.47%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Income

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FI-7

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$17.47

$15.65

$16.52

$15.26

$16.72

$15.87

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.30

0.53

0.59

0.75

0.71

0.69

Net

realized

and

unrealized

gains

(losses)

(1.61)

2.09

(0.54)

1.68

(1.35)

0.87

Total

from

investment

operations

........

(1.31)

2.62

0.05

2.43

(0.64)

1.56

Less

distributions

from:

Net

investment

income

..............

(0.83)

(0.80)

(0.91)

(0.91)

(0.82)

(0.71)

Net

realized

gains

.................

(0.32)

—

(0.01)

(0.26)

—

—

Total

distributions

...................

(1.15)

(0.80)

(0.92)

(1.17)

(0.82)

(0.71)

Net

asset

value,

end

of

period

..........

$15.01

$17.47

$15.65

$16.52

$15.26

$16.72

Total

return

c

.......................

(7.58)%

17.00%

0.97%

16.42%

(4.09)%

9.94%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.47%

0.47%

0.47%

0.46%

0.47%

0.47%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

0.47%

f

0.47%

f

0.46%

0.45%

0.45%

0.45%

Net

investment

income

...............

3.49%

3.20%

3.96%

4.38%

4.33%

4.22%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$213,602

$243,732

$306,641

$309,330

$612,657

$735,149

Portfolio

turnover

rate

................

34.73%

39.27%

45.93%

25.16%

43.22%

20.96%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FI-8

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$16.76

$15.04

$15.91

$14.74

$16.17

$15.38

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.26

0.47

0.53

0.64

0.65

0.63

Net

realized

and

unrealized

gains

(losses)

(1.54)

2.02

(0.53)

1.66

(1.30)

0.83

Total

from

investment

operations

........

(1.28)

2.49

—

2.30

(0.65)

1.46

Less

distributions

from:

Net

investment

income

..............

(0.78)

(0.77)

(0.86)

(0.87)

(0.78)

(0.67)

Net

realized

gains

.................

(0.32)

—

(0.01)

(0.26)

—

—

Total

distributions

...................

(1.10)

(0.77)

(0.87)

(1.13)

(0.78)

(0.67)

Net

asset

value,

end

of

period

..........

$14.38

$16.76

$15.04

$15.91

$14.74

$16.17

Total

return

c

.......................

(7.72)%

16.75%

0.69%

16.06%

(4.30)%

9.67%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.72%

0.72%

0.72%

0.71%

0.72%

0.72%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

0.72%

f

0.72%

f

0.71%

0.70%

0.70%

0.70%

Net

investment

income

...............

3.24%

2.95%

3.73%

4.13%

4.08%

3.97%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,629,066

$3,026,228

$3,852,709

$4,318,156

$4,086,652

$5,041,498

Portfolio

turnover

rate

................

34.73%

39.27%

45.93%

25.16%

43.22%

20.96%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FI-9

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$17.23

$15.45

$16.32

$15.08

$16.53

$15.71

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.26

0.46

0.53

0.64

0.64

0.62

Net

realized

and

unrealized

gains

(losses)

(1.58)

2.07

(0.54)

1.71

(1.33)

0.85

Total

from

investment

operations

........

(1.32)

2.53

(0.01)

2.35

(0.69)

1.47

Less

distributions

from:

Net

investment

income

..............

(0.77)

(0.75)

(0.85)

(0.85)

(0.76)

(0.65)

Net

realized

gains

.................

(0.32)

—

(0.01)

(0.26)

—

—

Total

distributions

...................

(1.09)

(0.75)

(0.86)

(1.11)

(0.76)

(0.65)

Net

asset

value,

end

of

period

..........

$14.82

$17.23

$15.45

$16.32

$15.08

$16.53

Total

return

c

.......................

(7.71)%

16.59%

0.58%

16.05%

(4.42)%

9.55%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.82%

0.82%

0.82%

0.81%

0.82%

0.82%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

0.82%

f

0.82%

f

0.81%

0.80%

0.80%

0.80%

Net

investment

income

...............

3.14%

2.82%

3.62%

4.03%

3.98%

3.87%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$320,054

$333,522

$302,474

$323,582

$294,700

$335,217

Portfolio

turnover

rate

................

34.73%

39.27%

45.93%

25.16%

43.22%

20.96%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Income

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FI-10

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

32.9%

Aerospace

&

Defense

2.0%

Lockheed

Martin

Corp.

.................................

United

States

100,000

$

42,996,000

Raytheon

Technologies

Corp.

............................

United

States

225,000

21,624,750

64,620,750

Air

Freight

&

Logistics

0.9%

United

Parcel

Service,

Inc.,

B

............................

United

States

157,700

28,786,558

Banks

2.8%

Bank

of

America

Corp.

.................................

United

States

370,000

11,518,100

Citigroup,

Inc.

........................................

United

States

250,000

11,497,500

JPMorgan

Chase

&

Co.

.................................

United

States

250,000

28,152,500

Truist

Financial

Corp.

..................................

United

States

495,000

23,477,850

US

Bancorp

.........................................

United

States

325,000

14,956,500

89,602,450

Biotechnology

1.4%

AbbVie,

Inc.

.........................................

United

States

170,000

26,037,200

Amgen,

Inc.

.........................................

United

States

70,000

17,031,000

43,068,200

Capital

Markets

0.8%

Morgan

Stanley

.......................................

United

States

310,000

23,578,600

Chemicals

1.2%

Air

Products

and

Chemicals,

Inc.

..........................

United

States

111,053

26,706,026

BASF

SE

...........................................

Germany

225,000

9,843,785

36,549,811

Diversified

Telecommunication

Services

2.0%

BCE,

Inc.

...........................................

Canada

466,000

22,905,392

Verizon

Communications,

Inc.

............................

United

States

800,000

40,600,000

63,505,392

Electric

Utilities

3.5%

American

Electric

Power

Co.,

Inc.

.........................

United

States

200,000

19,188,000

Duke

Energy

Corp.

....................................

United

States

230,000

24,658,300

Edison

International

...................................

United

States

450,000

28,458,000

Exelon

Corp.

.........................................

United

States

300,000

13,596,000

Southern

Co.

(The)

....................................

United

States

350,000

24,958,500

110,858,800

Energy

Equipment

&

Services

0.1%

a

Weatherford

International

plc

.............................

United

States

190,000

4,022,300

Health

Care

Equipment

&

Supplies

0.9%

Medtronic

plc

........................................

United

States

330,000

29,617,500

Health

Care

Providers

&

Services

0.1%

a

CHS/Community

Health

Systems,

Inc.

......................

United

States

500,000

1,875,000

Household

Products

0.6%

Procter

&

Gamble

Co.

(The)

.............................

United

States

120,000

17,254,800

Industrial

Conglomerates

0.6%

Honeywell

International,

Inc.

.............................

United

States

115,000

19,988,150

Insurance

0.6%

MetLife,

Inc.

.........................................

United

States

300,000

18,837,000

IT

Services

0.9%

International

Business

Machines

Corp.

.....................

United

States

199,679

28,192,678

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FI-11

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Media

0.7%

Comcast

Corp.,

A

.....................................

United

States

550,000

$

21,582,000

Metals

&

Mining

0.3%

b

Rio

Tinto

plc,

ADR

.....................................

Australia

150,000

9,150,000

Multi-Utilities

2.1%

Dominion

Energy,

Inc.

..................................

United

States

618,347

49,350,274

Sempra

Energy

.......................................

United

States

105,000

15,778,350

65,128,624

Oil,

Gas

&

Consumable

Fuels

4.2%

BP

plc,

ADR

.........................................

United

Kingdom

400,000

11,340,000

Chevron

Corp.

.......................................

United

States

350,000

50,673,000

Exxon

Mobil

Corp.

.....................................

United

States

500,000

42,820,000

Shell

plc,

ADR

........................................

Netherlands

225,000

11,765,250

TotalEnergies

SE,

ADR

.................................

France

325,000

17,108,000

133,706,250

Personal

Products

0.4%

Unilever

plc

..........................................

United

Kingdom

300,000

13,671,693

Pharmaceuticals

3.5%

AstraZeneca

plc,

ADR

..................................

United

Kingdom

300,000

19,821,000

Bristol-Myers

Squibb

Co.

................................

United

States

450,000

34,650,000

Johnson

&

Johnson

...................................

United

States

190,000

33,726,900

Merck

&

Co.,

Inc.

.....................................

United

States

100,000

9,117,000

Pfizer,

Inc.

...........................................

United

States

275,000

14,418,250

111,733,150

Road

&

Rail

0.3%

Union

Pacific

Corp.

....................................

United

States

50,000

10,664,000

Semiconductors

&

Semiconductor

Equipment

2.1%

Intel

Corp.

...........................................

United

States

806,856

30,184,483

Texas

Instruments,

Inc.

.................................

United

States

234,000

35,954,100

66,138,583

Specialty

Retail

0.3%

Home

Depot,

Inc.

(The)

.................................

United

States

32,000

8,776,640

Tobacco

0.6%

Philip

Morris

International,

Inc.

...........................

United

States

200,000

19,748,000

Total

Common

Stocks

(Cost

$794,525,665)

.....................................

1,040,656,929

c

Equity-Linked

Securities

15.1%

Automobiles

0.4%

d

Citigroup

Global

Markets

Holdings,

Inc.

into

Ford

Motor

Co.,

144A,

12.5%,

1/12/23

.....................................

United

States

877,000

11,141,437

Banks

2.1%

d

Citigroup

Global

Markets

Holdings,

Inc.

into

JPMorgan

Chase

&

Co.,

144A,

8%,

8/15/22

...................................

United

States

232,000

26,566,564

d

Credit

Suisse

AG

into

Bank

of

America

Corp.,

144A,

7.5%,

7/19/22

United

States

1,015,000

32,351,428

d

J.P.

Morgan

Structured

Products

BV

into

Bank

of

America

Corp.,

144A,

9.5%,

5/12/23

.................................

United

States

250,000

8,373,007

67,290,999

Biotechnology

0.6%

d

BNP

Paribas

Issuance

BV

into

AbbVie,

Inc.,

144A,

8%,

2/23/23

...

United

States

125,000

18,353,543

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FI-12

a

a

Country

Shares

a

Value

a

a

a

a

a

a

c

Equity-Linked

Securities

(continued)

Capital

Markets

0.6%

d

BNP

Paribas

Issuance

BV

into

Morgan

Stanley,

144A,

8%,

5/22/23

United

States

125,000

$

9,895,799

d

J.P.

Morgan

Structured

Products

BV

into

Goldman

Sachs

Group,

Inc.

(The),

144A,

8.5%,

3/09/23

............................

United

States

26,000

8,070,913

17,966,712

Chemicals

0.4%

d

Credit

Suisse

AG

into

Air

Products

and

Chemicals,

Inc.,

144A,

8.5%,

5/15/23

...........................................

United

States

49,560

12,053,725

Communications

Equipment

0.5%

d

Barclays

Bank

plc

into

Cisco

Systems,

Inc.,

144A,

7.5%,

3/10/23

..

United

States

350,000

15,491,716

Electric

Utilities

0.2%

d

National

Bank

of

Canada

into

NextEra

Energy,

Inc.,

144A,

8.5%,

12/05/23

..........................................

United

States

102,000

7,857,013

Entertainment

0.4%

d

Royal

Bank

of

Canada

into

Walt

Disney

Co.

(The),

144A,

10%,

5/26/23

...........................................

United

States

139,700

13,991,807

Health

Care

Providers

&

Services

0.7%

d

Royal

Bank

of

Canada

into

CVS

Health

Corp.,

144A,

8%,

12/16/22

United

States

250,000

22,732,782

Independent

Power

and

Renewable

Electricity

Producers

0.2%

d

Goldman

Sachs

International

Bank

into

NextEra

Energy

Partners

LP,

144A,

10%,

7/05/23

..................................

United

States

100,000

6,107,292

Industrial

Conglomerates

0.3%

d

Goldman

Sachs

International

Bank

into

Honeywell

International,

Inc.,

144A,

8.5%,

4/04/23

.................................

United

States

45,400

8,245,647

Insurance

0.9%

d

BNP

Paribas

Issuance

BV

into

MetLife,

Inc.,

144A,

8.5%,

8/23/22

.

United

States

450,000

28,201,561

Interactive

Media

&

Services

0.3%

d

Citigroup

Global

Markets

Holdings,

Inc.

into

Alphabet,

Inc.,

144A,

9%,

6/22/23

........................................

United

States

4,800

10,365,118

Internet

&

Direct

Marketing

Retail

0.9%

d

Merrill

Lynch

International

&

Co.

CV

into

Amazon.com,

Inc.,

144A,

8.5%,

1/11/23

.......................................

United

States

11,700

26,948,029

Machinery

0.4%

d

Goldman

Sachs

International

Bank

into

Cummins,

Inc.,

144A,

8%,

1/10/23

...........................................

United

States

60,000

12,054,871

Media

0.6%

d

Morgan

Stanley

Finance

II

Ltd.

into

Comcast

Corp.,

144A,

6%,

7/19/22

...........................................

United

States

485,000

19,316,188

Metals

&

Mining

1.1%

d

Citigroup

Global

Markets

Holdings,

Inc.

into

Barrick

Gold

Corp.,

144A,

9%,

10/13/22

..................................

Canada

1,000,000

18,050,782

d

National

Bank

of

Canada

into

Rio

Tinto

plc,

144A,

12.5%,

7/28/22

.

Australia

260,000

16,390,502

34,441,284

Oil,

Gas

&

Consumable

Fuels

1.4%

d

UBS

AG

into

Chevron

Corp.,

144A,

10%,

8/16/22

.............

United

States

400,000

44,233,478

Pharmaceuticals

0.4%

d

Societe

Generale

SA

into

Pfizer,

Inc.,

144A,

8.5%,

6/09/23

......

United

States

260,000

13,634,352

Semiconductors

&

Semiconductor

Equipment

2.3%

d

Credit

Suisse

AG

into

Intel

Corp.,

144A,

9%,

7/19/22

...........

United

States

384,590

14,907,031

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FI-13

a

a

Country

Shares

a

Value

a

a

a

a

a

a

c

Equity-Linked

Securities

(continued)

Semiconductors

&

Semiconductor

Equipment

(continued)

d

Goldman

Sachs

International

Bank

into

Texas

Instruments,

Inc.,

144A,

8.5%,

12/14/22

.................................

United

States

130,000

$

20,654,555

d

Mizuho

Markets

Cayman

LP

into

Microchip

Technology,

Inc.,

144A,

9%,

10/11/22

.......................................

United

States

40,000

4,778,391

d

Mizuho

Markets

Cayman

LP

into

Microchip

Technology,

Inc.,

144A,

10%,

6/26/23

.......................................

United

States

100,000

6,178,695

d

Royal

Bank

of

Canada

into

Analog

Devices,

Inc.,

144A,

10%,

5/19/23

United

States

178,000

27,106,721

73,625,393

Software

0.4%

d

Societe

Generale

SA

into

Workday,

Inc.,

144A,

8%,

9/02/22

......

United

States

90,600

13,040,623

Total

Equity-Linked

Securities

(Cost

$556,712,978)

..............................

477,093,570

Convertible

Preferred

Stocks

3.3%

Capital

Markets

0.2%

KKR

&

Co.,

Inc.,

6%,

C

.................................

United

States

85,000

4,969,950

Electric

Utilities

1.6%

NextEra

Energy,

Inc.,

5.279%

............................

United

States

400,000

19,860,000

NextEra

Energy,

Inc.,

6.219%

............................

United

States

230,200

11,314,330

Southern

Co.

(The),

6.75%,

2019

.........................

United

States

350,000

18,543,000

49,717,330

Multi-Utilities

0.6%

DTE

Energy

Co.,

6.25%

................................

United

States

400,000

20,568,000

Semiconductors

&

Semiconductor

Equipment

0.8%

Broadcom,

Inc.,

8%,

A

..................................

United

States

17,000

25,553,550

Thrifts

&

Mortgage

Finance

0.1%

FNMA,

5.375%

.......................................

United

States

475

4,631,250

Total

Convertible

Preferred

Stocks

(Cost

$122,326,072)

..........................

105,440,080

Principal

Amount

*

Convertible

Bonds

0.3%

Airlines

0.1%

JetBlue

Airways

Corp.

,

Senior

Note

,

0.5

%

,

4/01/26

............

United

States

5,000,000

3,702,500

Hotels,

Restaurants

&

Leisure

0.1%

DraftKings

Holdings,

Inc.

,

Senior

Note

,

Zero

Cpn.,

3/15/28

......

United

States

2,500,000

1,545,000

Media

0.1%

DISH

Network

Corp.

,

Senior

Note

,

2.375

%

,

3/15/24

............

United

States

4,555,000

4,025,481

Total

Convertible

Bonds

(Cost

$10,713,403)

....................................

9,272,981

Corporate

Bonds

36.4%

Aerospace

&

Defense

1.0%

Boeing

Co.

(The)

,

Senior

Note

,

5.15

%

,

5/01/30

...............

United

States

15,000,000

14,410,832

Raytheon

Technologies

Corp.

,

Senior

Note

,

3.95

%

,

8/16/25

......

United

States

7,500,000

7,526,442

TransDigm,

Inc.

,

Senior

Note

,

6.375

%

,

6/15/26

...............

United

States

10,000,000

9,370,000

31,307,274

Airlines

0.4%

d

American

Airlines

Inc/AAdvantage

Loyalty

IP

Ltd.

,

Senior

Secured

Note

,

144A,

5.5

%

,

4/20/26

.............................

United

States

15,000,000

13,834,500

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FI-14

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Auto

Components

0.7%

d

Dornoch

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

10/15/29

..........................................

United

States

11,945,000

$

8,836,314

Goodyear

Tire

&

Rubber

Co.

(The)

,

Senior

Note

,

5

%

,

7/15/29

....

United

States

15,000,000

12,443,506

21,279,820

Automobiles

0.4%

b

Ford

Motor

Co.

,

Senior

Note

,

4.346

%

,

12/08/26

...............

United

States

7,000,000

6,502,476

General

Motors

Co.

,

Senior

Bond

,

5.15

%

,

4/01/38

.............

United

States

7,500,000

6,551,528

13,054,004

Banks

1.4%

Bank

of

America

Corp.

,

e

AA,

Junior

Sub.

Bond,

6.1%

to

3/16/25,

FRN

thereafter,

Perpetual

United

States

8,000,000

7,883,000

e

X,

Junior

Sub.

Bond,

6.25%

to

9/04/24,

FRN

thereafter,

Perpetual

United

States

6,000,000

5,847,000

Senior

Bond,

3.419%

to

12/19/27,

FRN

thereafter,

12/20/28

...

United

States

5,000,000

4,660,847

Citigroup,

Inc.

,

Sub.

Bond

,

4.125

%

,

7/25/28

..................

United

States

12,500,000

12,003,329

e

JPMorgan

Chase

&

Co.

,

f

I,

Junior

Sub.

Bond,

FRN,

4.709%,

(3-month

USD

LIBOR

+

3.47%),

Perpetual

...................................

United

States

10,559,000

10,025,756

R,

Junior

Sub.

Bond,

6%

to

7/31/23,

FRN

thereafter,

Perpetual

.

United

States

3,200,000

3,007,904

43,427,836

Biotechnology

0.3%

AbbVie,

Inc.

,

Senior

Note

,

3.8

%

,

3/15/25

....................

United

States

10,500,000

10,429,080

Capital

Markets

0.4%

d

Coinbase

Global,

Inc.

,

Senior

Bond

,

144A,

3.625

%

,

10/01/31

....

United

States

5,000,000

2,822,554

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Note

,

3.272%

to

9/28/24,

FRN

thereafter

,

9/29/25

...............................

United

States

9,000,000

8,754,034

11,576,588

Chemicals

0.7%

d

Consolidated

Energy

Finance

SA

,

Senior

Note

,

144A,

6.5

%

,

5/15/26

Switzerland

10,000,000

9,227,566

d

SCIH

Salt

Holdings,

Inc.

,

b

Senior

Note,

144A,

6.625%,

5/01/29

.....................

United

States

10,000,000

7,914,847

Senior

Secured

Note,

144A,

4.875%,

5/01/28

..............

United

States

7,900,000

6,582,162

23,724,575

Commercial

Services

&

Supplies

0.4%

d

APX

Group,

Inc.

,

Senior

Note

,

144A,

5.75

%

,

7/15/29

...........

United

States

15,000,000

11,638,443

Communications

Equipment

0.8%

d

CommScope

Technologies

LLC

,

Senior

Bond,

144A,

6%,

6/15/25

........................

United

States

12,602,868

10,925,867

Senior

Note,

144A,

5%,

3/15/27

........................

United

States

2,500,000

1,851,668

d

CommScope,

Inc.

,

Senior

Note,

144A,

8.25%,

3/01/27

......................

United

States

10,000,000

7,929,900

b

Senior

Note,

144A,

7.125%,

7/01/28

.....................

United

States

7,141,000

5,437,872

26,145,307

Consumer

Finance

1.6%

Capital

One

Financial

Corp.

,

Sub.

Note

,

4.2

%

,

10/29/25

........

United

States

8,000,000

7,906,220

Ford

Motor

Credit

Co.

LLC

,

Senior

Note,

5.125%,

6/16/25

..........................

United

States

20,000,000

19,140,800

Senior

Note,

4.95%,

5/28/27

...........................

United

States

15,000,000

13,965,600

General

Motors

Financial

Co.,

Inc.

,

Senior

Note,

2.4%,

4/10/28

............................

United

States

6,000,000

5,076,858

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FI-15

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Consumer

Finance

(continued)

General

Motors

Financial

Co.,

Inc.,

(continued)

Senior

Note,

4.3%,

4/06/29

............................

United

States

5,000,000

$

4,593,367

50,682,845

Containers

&

Packaging

1.2%

d

Mauser

Packaging

Solutions

Holding

Co.

,

Senior

Note,

144A,

7.25%,

4/15/25

......................

United

States

20,432,000

17,867,273

Senior

Secured

Note,

144A,

5.5%,

4/15/24

................

United

States

16,500,000

15,790,500

d

Pactiv

Evergreen

Group

Issuer,

Inc./Pactiv

Evergreen

Group

Issuer

LLC

,

Senior

Secured

Note

,

144A,

4

%

,

10/15/27

.............

United

States

5,000,000

4,285,150

37,942,923

Diversified

Financial

Services

0.8%

d

MPH

Acquisition

Holdings

LLC

,

b

Senior

Note,

144A,

5.75%,

11/01/28

.....................

United

States

20,000,000

16,614,100

Senior

Secured

Note,

144A,

5.5%,

9/01/28

................

United

States

8,890,000

7,937,205

24,551,305

Diversified

Telecommunication

Services

0.4%

d

Altice

France

SA

,

Senior

Secured

Note

,

144A,

5.5

%

,

10/15/29

...

France

11,500,000

8,820,327

d

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond

,

144A,

5.5

%

,

5/01/26

.................................

United

States

5,002,000

4,889,380

13,709,707

Electric

Utilities

0.1%

d

Vistra

Operations

Co.

LLC

,

Senior

Note

,

144A,

4.375

%

,

5/01/29

..

United

States

5,255,000

4,411,914

Energy

Equipment

&

Services

0.5%

d

Weatherford

International

Ltd.

,

Senior

Note,

144A,

11%,

12/01/24

.......................

United

States

3,013,000

3,039,906

Senior

Note,

144A,

8.625%,

4/30/30

.....................

United

States

14,500,000

12,060,177

15,100,083

Entertainment

1.3%

d

Magallanes,

Inc.

,

Senior

Bond,

144A,

4.279%,

3/15/32

.....................

United

States

6,500,000

5,815,549

Senior

Note,

144A,

3.755%,

3/15/27

.....................

United

States

6,500,000

6,102,499

Netflix,

Inc.

,

Senior

Bond

,

4.875

%

,

4/15/28

..................

United

States

22,000,000

20,749,960

d

ROBLOX

Corp.

,

Senior

Note

,

144A,

3.875

%

,

5/01/30

..........

United

States

9,100,000

7,403,396

40,071,404

Equity

Real

Estate

Investment

Trusts

(REITs)

0.6%

MPT

Operating

Partnership

LP

/

MPT

Finance

Corp.

,

Senior

Bond

,

5

%

,

10/15/27

.......................................

United

States

8,750,000

8,021,213

VICI

Properties

LP

,

Senior

Bond

,

5.125

%

,

5/15/32

.............

United

States

10,000,000

9,444,200

17,465,413

Health

Care

Equipment

&

Supplies

0.9%

d

Medline

Borrower

LP

,

Senior

Note,

144A,

5.25%,

10/01/29

.....................

United

States

18,000,000

14,839,560

Senior

Secured

Note,

144A,

3.875%,

4/01/29

..............

United

States

16,800,000

14,366,016

29,205,576

Health

Care

Providers

&

Services

7.0%

d

CHS/Community

Health

Systems,

Inc.

,

Secured

Note,

144A,

6.875%,

4/15/29

....................

United

States

70,000,000

45,353,700

Secured

Note,

144A,

6.125%,

4/01/30

....................

United

States

53,500,000

32,770,890

Senior

Note,

144A,

6.875%,

4/01/28

.....................

United

States

10,000,000

5,876,517

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FI-16

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Health

Care

Providers

&

Services

(continued)

d

CHS/Community

Health

Systems,

Inc.,

(continued)

Senior

Secured

Note,

144A,

8%,

3/15/26

..................

United

States

12,500,000

$

11,419,625

Senior

Secured

Note,

144A,

8%,

12/15/27

.................

United

States

10,000,000

9,098,200

Senior

Secured

Note,

144A,

5.25%,

5/15/30

...............

United

States

10,000,000

7,617,199

CVS

Health

Corp.

,

Senior

Bond,

4.3%,

3/25/28

............................

United

States

8,000,000

7,923,286

Senior

Note,

4.1%,

3/25/25

............................

United

States

1,225,000

1,234,005

d

DaVita,

Inc.

,

Senior

Bond,

144A,

3.75%,

2/15/31

......................

United

States

2,500,000

1,798,925

Senior

Note,

144A,

4.625%,

6/01/30

.....................

United

States

20,000,000

15,660,440

HCA,

Inc.

,

Senior

Secured

Note

,

5

%

,

3/15/24

................

United

States

10,400,000

10,456,076

Tenet

Healthcare

Corp.

,

d

Secured

Note,

144A,

6.25%,

2/01/27

.....................

United

States

29,000,000

26,752,500

d

Senior

Note,

144A,

6.125%,

10/01/28

....................

United

States

9,000,000

7,729,830

Senior

Note,

6.75%,

6/15/23

...........................

United

States

24,000,000

24,717,974

d

Senior

Secured

Note,

144A,

6.125%,

6/15/30

..............

United

States

12,500,000

11,569,500

219,978,667

Hotels,

Restaurants

&

Leisure

1.9%

d

Boyd

Gaming

Corp.

,

Senior

Bond

,

144A,

4.75

%

,

6/15/31

........

United

States

3,130,000

2,651,110

d

Caesars

Entertainment,

Inc.

,

Senior

Secured

Note

,

144A,

6.25

%

,

7/01/25

...........................................

United

States

20,000,000

19,342,300

d

Fertitta

Entertainment

LLC

/

Fertitta

Entertainment

Finance

Co.,

Inc.

,

Senior

Note,

144A,

6.75%,

1/15/30

......................

United

States

9,000,000

6,933,420

Senior

Secured

Note,

144A,

4.625%,

1/15/29

..............

United

States

4,500,000

3,849,007

d

Penn

National

Gaming,

Inc.

,

Senior

Note

,

144A,

4.125

%

,

7/01/29

.

United

States

8,000,000

6,081,440

d

Wynn

Las

Vegas

LLC

/

Wynn

Las

Vegas

Capital

Corp.

,

Senior

Bond,

144A,

5.5%,

3/01/25

.......................

United

States

17,820,000

16,340,584

b

Senior

Note,

144A,

5.25%,

5/15/27

......................

United

States

6,000,000

5,147,010

60,344,871

Independent

Power

and

Renewable

Electricity

Producers

0.4%

d,e

Vistra

Corp.

,

Junior

Sub.

Bond

,

144A,

7%

to

12/14/26,

FRN

thereafter

,

Perpetual

.................................

United

States

12,500,000

11,368,688

Media

3.2%

d

Clear

Channel

Outdoor

Holdings,

Inc.

,

Senior

Note,

144A,

7.75%,

4/15/28

......................

United

States

2,800,000

2,044,406

Senior

Note,

144A,

7.5%,

6/01/29

.......................

United

States

10,500,000

7,581,315

d

CSC

Holdings

LLC

,

Senior

Bond

,

144A,

5.5

%

,

4/15/27

.........

United

States

15,000,000

13,620,750

d

Diamond

Sports

Group

LLC

/

Diamond

Sports

Finance

Co.

,

Secured

Note

,

144A,

5.375

%

,

8/15/26

...........................

United

States

15,000,000

3,768,750

d

Directv

Financing

LLC

/

Directv

Financing

Co-Obligor,

Inc.

,

Senior

Secured

Note

,

144A,

5.875

%

,

8/15/27

....................

United

States

9,500,000

8,134,897

DISH

DBS

Corp.

,

Senior

Note,

5.875%,

7/15/22

..........................

United

States

14,000,000

13,963,110

Senior

Note,

5%,

3/15/23

.............................

United

States

11,000,000

10,494,880

Senior

Note,

5.875%,

11/15/24

.........................

United

States

20,859,000

17,645,045

d

Senior

Secured

Note,

144A,

5.25%,

12/01/26

..............

United

States

6,500,000

5,107,148

d

Stagwell

Global

LLC

,

Senior

Note

,

144A,

5.625

%

,

8/15/29

.......

United

States

5,000,000

4,031,625

d

Univision

Communications,

Inc.

,

Senior

Secured

Note,

144A,

5.125%,

2/15/25

..............

United

States

7,140,000

6,733,020

Senior

Secured

Note,

144A,

6.625%,

6/01/27

..............

United

States

8,500,000

8,109,000

101,233,946

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FI-17

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Metals

&

Mining

0.7%

d

Cleveland-Cliffs,

Inc.

,

Senior

Secured

Note

,

144A,

6.75

%

,

3/15/26

.

United

States

5,000,000

$

4,972,775

d

FMG

Resources

August

2006

Pty.

Ltd.

,

Senior

Bond,

144A,

4.375%,

4/01/31

.....................

Australia

6,000,000

4,908,420

Senior

Note,

144A,

5.875%,

4/15/30

.....................

Australia

5,000,000

4,508,175

d

Glencore

Funding

LLC

,

Senior

Bond

,

144A,

2.5

%

,

9/01/30

......

Australia

10,000,000

8,155,662

22,545,032

Oil,

Gas

&

Consumable

Fuels

1.3%

d

Calumet

Specialty

Products

Partners

LP

/

Calumet

Finance

Corp.

,

Senior

Note,

144A,

11%,

4/15/25

........................

United

States

15,000,000

14,298,675

Senior

Note,

144A,

8.125%,

1/15/27

.....................

United

States

8,820,000

7,468,021

Senior

Secured

Note,

144A,

9.25%,

7/15/24

...............

United

States

5,185,000

5,357,271

Occidental

Petroleum

Corp.

,

Senior

Note,

8%,

7/15/25

.............................

United

States

5,000,000

5,270,975

Senior

Note,

6.625%,

9/01/30

..........................

United

States

6,000,000

6,190,920

d

PBF

Holding

Co.

LLC

/

PBF

Finance

Corp.

,

Senior

Secured

Note

,

144A,

9.25

%

,

5/15/25

.................................

United

States

3,623,000

3,792,828

42,378,690

Pharmaceuticals

3.8%

d

Bausch

Health

Americas,

Inc.

,

Senior

Note

,

144A,

8.5

%

,

1/31/27

..

United

States

40,000,000

28,146,000

d

Bausch

Health

Cos.,

Inc.

,

Senior

Note,

144A,

9%,

12/15/25

.......................

United

States

7,000,000

5,191,060

Senior

Note,

144A,

6.25%,

2/15/29

......................

United

States

3,921,000

2,097,735

Senior

Secured

Note,

144A,

5.5%,

11/01/25

...............

United

States

18,750,000

16,500,000

Senior

Secured

Note,

144A,

6.125%,

2/01/27

..............

United

States

23,909,673

20,366,140

Senior

Secured

Note,

144A,

5.75%,

8/15/27

...............

United

States

10,000,000

8,300,000

Senior

Secured

Note,

144A,

4.875%,

6/01/28

..............

United

States

7,900,000

6,198,498

d

Bayer

US

Finance

II

LLC

,

Senior

Note

,

144A,

4.25

%

,

12/15/25

...

Germany

11,000,000

10,874,772

Bristol-Myers

Squibb

Co.

,

Senior

Note

,

3.4

%

,

7/26/29

..........

United

States

2,473,000

2,389,129

d

Endo

Dac

/

Endo

Finance

LLC

/

Endo

Finco,

Inc.

,

Senior

Secured

Note

,

144A,

5.875

%

,

10/15/24

..........................

United

States

4,500,000

3,442,500

d

Par

Pharmaceutical,

Inc.

,

Senior

Secured

Note

,

144A,

7.5

%

,

4/01/27

United

States

8,429,000

6,432,591

Utah

Acquisition

Sub,

Inc.

,

Senior

Note

,

3.95

%

,

6/15/26

.........

United

States

10,000,000

9,439,369

119,377,794

Road

&

Rail

0.1%

d

Ashtead

Capital,

Inc.

,

Senior

Note

,

144A,

4.25

%

,

11/01/29

......

United

Kingdom

4,500,000

3,963,281

Semiconductors

&

Semiconductor

Equipment

0.3%

d

Broadcom,

Inc.

,

Senior

Bond,

144A,

4%,

4/15/29

........................

United

States

5,000,000

4,637,774

Senior

Bond,

144A,

4.15%,

4/15/32

......................

United

States

5,000,000

4,519,709

9,157,483

Software

0.8%

Oracle

Corp.

,

Senior

Bond

,

2.875

%

,

3/25/31

.................

United

States

10,000,000

8,248,962

d

Rocket

Software,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

2/15/29

........

United

States

11,000,000

7,971,362

Workday,

Inc.

,

Senior

Bond

,

3.8

%

,

4/01/32

..................

United

States

10,000,000

9,147,698

25,368,022

Specialty

Retail

0.2%

d

Carvana

Co.

,

Senior

Note

,

144A,

10.25

%

,

5/01/30

.............

United

States

5,000,000

4,116,550

d

Michaels

Cos.,

Inc.

(The)

,

Senior

Secured

Note

,

144A,

5.25

%

,

5/01/28

...........................................

United

States

4,000,000

3,151,940

7,268,490

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FI-18

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Technology

Hardware,

Storage

&

Peripherals

0.3%

HP,

Inc.

,

Senior

Bond

,

5.5

%

,

1/15/33

.......................

United

States

10,000,000

$

9,766,549

Tobacco

0.6%

BAT

Capital

Corp.

,

Senior

Note

,

3.557

%

,

8/15/27

.............

United

Kingdom

20,000,000

18,312,883

Trading

Companies

&

Distributors

0.8%

United

Rentals

North

America,

Inc.

,

Senior

Bond

,

4.875

%

,

1/15/28

United

States

11,300,000

10,708,841

d

WESCO

Distribution,

Inc.

,

Senior

Note

,

144A,

7.125

%

,

6/15/25

...

United

States

14,000,000

13,998,250

24,707,091

Wireless

Telecommunication

Services

1.1%

Sprint

Communications,

Inc.

,

Senior

Note

,

6

%

,

11/15/22

........

United

States

6,300,000

6,346,352

Sprint

Corp.

,

Senior

Note,

7.875%,

9/15/23

..........................

United

States

12,500,000

12,925,000

Senior

Note,

7.125%,

6/15/24

..........................

United

States

8,200,000

8,440,670

Senior

Note,

7.625%,

3/01/26

..........................

United

States

7,500,000

7,918,624

35,630,646

Total

Corporate

Bonds

(Cost

$1,303,147,248)

...................................

1,150,960,730

Units

a

g

Index-Linked

Notes

1.0%

Capital

Markets

1.0%

d,h

Credit

Suisse

AG

,

Senior

Note

,

144A,

29.019

%

,

9/06/22

........

Switzerland

10,332

33,267,490

Total

Index-Linked

Notes

(Cost

$34,999,753)

....................................

33,267,490

Principal

Amount

*

i

Senior

Floating

Rate

Interests

0.1%

Media

0.1%

j

Diamond

Sports

Group

LLC

,

First

Lien,

CME

Term

Loan

,

9.181

%

,

(

1-month

SOFR

+

8

%

),

5/25/26

.........................

United

States

2,171,245

2,166,718

Total

Senior

Floating

Rate

Interests

(Cost

$1,996,600)

...........................

2,166,718

U.S.

Government

and

Agency

Securities

9.4%

U.S.

Treasury

Notes

,

2.75%,

5/31/23

.....................................

United

States

50,000,000

49,935,835

1.75%,

3/15/25

.....................................

United

States

100,000,000

96,691,406

1.875%,

2/15/32

.....................................

United

States

24,000,000

21,746,250

2.875%,

5/15/32

.....................................

United

States

130,000,000

128,557,813

Total

U.S.

Government

and

Agency

Securities

(Cost

$295,611,599)

................

296,931,304

Asset-Backed

Securities

0.3%

Airlines

0.3%

United

Airlines

Pass-Through

Trust

,

2020-1

,

A

,

5.875

%

,

10/15/27

.

.

United

States

8,468,417

8,335,467

Total

Asset-Backed

Securities

(Cost

$8,468,417)

................................

8,335,467

Mortgage-Backed

Securities

0.0%

†

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

0.0%

†

FNMA,

30

Year,

4%,

8/01/49

.............................

United

States

1,722,332

1,721,760

Total

Mortgage-Backed

Securities

(Cost

$1,824,595)

.............................

1,721,760

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FI-19

See

A

bbreviations

on

page

FI-

33

.

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Escrows

and

Litigation

Trusts

0.3%

a,d

Chesapeake

Energy

Corp.,

Escrow

Account,

144A

............

United

States

9,500,000

$

8,976,550

Total

Escrows

and

Litigation

Trusts

(Cost

$9,500,000)

...........................

8,976,550

Total

Long

Term

Investments

(Cost

$3,139,826,330)

.............................

3,134,823,579

a

Short

Term

Investments

1.0%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

0.6%

k,l

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

....

United

States

19,514,420

19,514,420

Total

Money

Market

Funds

(Cost

$19,514,420)

..................................

19,514,420

a

a

a

m

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.4%

Money

Market

Funds

0.3%

k,l

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

....

United

States

8,787,000

8,787,000

Principal

Amount

*

Repurchase

Agreements

0.1%

n

Joint

Repurchase

Agreement,

J.P.

Morgan

Securities

LLC,

1.48%,

7/01/22

(Maturity

Value

$2,088,094)

Collateralized

by

U.S.

Treasury

Notes,

0.5%,

4/30/27

-

5/31/27

(valued

at

$2,129,770)

................................

2,088,008

2,088,008

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$10,875,008)

...........................................................

10,875,008

Total

Short

Term

Investments

(Cost

$30,389,428

)

................................

30,389,428

a

Total

Investments

(Cost

$3,170,215,758)

100.1%

................................

$3,165,213,007

Other

Assets,

less

Liabilities

(0.1)%

...........................................

(2,490,798)

Net

Assets

100.0%

...........................................................

$3,162,722,209

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

A

portion

or

all

of

the

security

is

on

loan

at

June

30,

2022.

See

Note

1(f).

c

See

Note

1(e)

regarding

equity-linked

securities.

d

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2022,

the

aggregate

value

of

these

securities

was

$1,260,444,040,

representing

39.9%

of

net

assets.

e

Perpetual

security

with

no

stated

maturity

date.

f

The

coupon

rate

shown

represents

the

rate

at

period

end.

g

See

Note

1(d)

regarding

index-linked

notes.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FI-20

h

Security

pays

variable

interest

based

on

the

distributions

of

the

strategy

index

and

proceeds

earned

from

related

equity

derivatives.

The

coupon

rate

shown

represents

the

combined

rate

at

period

end.

Cash

payment

at

maturity

or

upon

early

redemption

is

based

on

the

performance

of

the

strategy

index.

i

See

Note

1(g)

regarding

senior

floating

rate

interests.

j

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

k

See

Note

3(e)

regarding

investments

in

affiliated

management

investment

companies.

l

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

m

See

Note

1(f)

regarding

securities

on

loan.

n

See

Note

1(c)

regarding

joint

repurchase

agreement.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FI-21

Franklin

Income

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$3,139,826,330

Cost

-

Non-controlled

affiliates

(Note

3e)

........................................................

28,301,420

Cost

-

Unaffiliated

repurchase

agreements

......................................................

2,088,008

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$10,471,865)

.................................

$3,134,823,579

Value

-

Non-controlled

affiliates

(Note

3e)

.......................................................

28,301,420

Value

-

Unaffiliated

repurchase

agreements

......................................................

2,088,008

Cash

....................................................................................

1,877

Receivables:

Capital

shares

sold

........................................................................

1,016,885

Dividends

and

interest

.....................................................................

23,110,358

European

Union

tax

reclaims

(Note

1

h

)

.........................................................

1,603,423

Total

assets

..........................................................................

3,190,945,550

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

8,247,500

Capital

shares

redeemed

...................................................................

6,403,633

Management

fees

.........................................................................

1,207,019

Distribution

fees

..........................................................................

651,671

Trustees'

fees

and

expenses

.................................................................

410

Payable

upon

return

of

securities

loaned

(Note

1

f

)

..................................................

10,875,008

Accrued

expenses

and

other

liabilities

...........................................................

838,100

Total

liabilities

.........................................................................

28,223,341

Net

assets,

at

value

.................................................................

$3,162,722,209

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$2,863,271,253

Total

distributable

earnings

(losses)

.............................................................

299,450,956

Net

assets,

at

value

.................................................................

$3,162,722,209

Franklin

Income

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$213,601,805

Shares

outstanding

........................................................................

14,231,767

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$15.01

Class

2:

Net

assets,

at

value

.......................................................................

$2,629,066,056

Shares

outstanding

........................................................................

182,792,132

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$14.38

Class

4:

Net

assets,

at

value

.......................................................................

$320,054,348

Shares

outstanding

........................................................................

21,602,846

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$14.82

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FI-22

Franklin

Income

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$354,625)

Unaffiliated

issuers

........................................................................

$28,529,285

Non-controlled

affiliates

(Note

3e)

.............................................................

36,044

Interest:

Unaffiliated

issuers

........................................................................

39,824,109

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

39,099

Non-controlled

affiliates

(Note

3

e

)

.............................................................

7,314

Other

income

(Note

1

h

)

......................................................................

28,186

Total

investment

income

...................................................................

68,464,037

Expenses:

Management

fees

(Note

3

a

)

...................................................................

7,909,613

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

3,621,551

    Class

4

................................................................................

578,402

Custodian

fees

(Note

4

)

......................................................................

20,458

Reports

to

shareholders

fees

..................................................................

95,801

Professional

fees

...........................................................................

54,076

Trustees'

fees

and

expenses

..................................................................

16,523

Other

....................................................................................

64,783

Total

expenses

.........................................................................

12,361,207

Expense

reductions

(Note

4

)

...............................................................

(216)

Expenses

waived/paid

by

affiliates

(N

ote

3e)

...................................................

(73,300)

Net

expenses

.........................................................................

12,287,691

Net

investment

income

................................................................

56,176,346

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

266,482,567

Foreign

currency

transactions

................................................................

8,188

Net

realized

gain

(loss)

..................................................................

266,490,755

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(590,554,218)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(150,494)

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(590,704,712)

Net

realized

and

unrealized

gain

(loss)

............................................................

(324,213,957)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(268,037,611)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FI-23

Franklin

Income

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$56,176,346

$119,675,102

Net

realized

gain

(loss)

.................................................

266,490,755

513,668,217

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(590,704,712)

10,214,847

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(268,037,611)

643,558,166

Distributions

to

shareholders:

Class

1

.............................................................

(15,259,288)

(16,108,181)

Class

2

.............................................................

(187,850,088)

(184,021,190)

Class

4

.............................................................

(21,816,089)

(14,055,725)

Total

distributions

to

shareholders

..........................................

(224,925,465)

(214,185,096)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

2,874,600

(92,365,384)

Class

2

.............................................................

14,443,242

(1,191,742,494)

Class

4

.............................................................

34,885,728

(3,607,701)

Total

capital

share

transactions

............................................

52,203,570

(1,287,715,579)

Net

increase

(decrease)

in

net

assets

...................................

(440,759,506)

(858,342,509)

Net

assets:

Beginning

of

period

.....................................................

3,603,481,715

4,461,824,224

End

of

period

..........................................................

$3,162,722,209

$3,603,481,715

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

Franklin

Income

VIP

Fund

FI-24

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Templeton

Variable

Insurance

Products

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Income

VIP

Fund

(Fund)

is

included

in

this

report.

Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

The

Fund

offers

three

classes

of

shares:

Class

1,

Class

2

and

Class

4.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege.

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

and

derivative

financial

instruments

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Debt

securities

generally

trade

in

the OTC

market

rather

than

on

a

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day.

Events

can

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FI-25

Semiannual

Report

Franklin

Income

VIP

Fund

(continued)

occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Joint

Repurchase

Agreement

The

Fund

enters

into

a

joint

repurchase

agreement

whereby

its

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Fund's

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Fund,

certain

MRAs

may

permit

the

non-

defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Fund

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Fund

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FI-26

Semiannual

Report

Franklin

Income

VIP

Fund

(continued)

seller.

The

joint

repurchase

agreement

held

by

the Fund

at

period

end,

as

indicated

in

the

Schedule

of

Investments,

had

been

entered

into

on

June

30,

2022.

d.

Index-Linked

Notes

The

Fund

invests

in

index-linked

notes.

Index-linked

notes

are

senior,

unsecured,

subordinated

debt

securities

issued

by

a

financial

institution,

and

the

value

is

based

on

the

price

movements

of

the

underlying

index.

Index-linked

notes

are

designed

to

provide

investors

access

to

the

returns

of

various

market

benchmarks

and

intended

to

replicate

the

economic

effects

that

would

apply

had

the

Fund

directly

purchased

the

underlying

referenced

asset

or

basket

of

assets.

The

risks

of

investing

in

index-linked

notes

include

unfavorable

price

movements

in

the

underlying

index

and

the

credit

risk

of

the

issuing

financial

institution.

There

may

be

no

guarantee

of

a

return

of

principal

with

index-linked

notes

and

the

appreciation

potential

may

be

limited.

Index-linked

notes

may

be

more

volatile

and

less

liquid

than

other

investments

held

by

the

Fund.

e.

Equity-Linked

Securities

The

Fund

invests

in

equity-linked

securities.

Equity-linked

securities

are

hybrid

financial

instruments

that

generally

combine

both

debt

and

equity

characteristics

into

a

single

note

form.

Income

received

from

equity-linked

securities

is

recorded

as

realized

gains

in

the

Statement

of

Operations

and

may

be

based

on

the

performance

of

an

underlying

equity

security,

an

equity

index,

or

an

option

position.

The

risks

of

investing

in

equity-linked

securities

include

unfavorable

price

movements

in

the

underlying

security

and

the

credit

risk

of

the

issuing

financial

institution.

There

may

be

no

guarantee

of

a

return

of

principal

with

equity-linked

securities

and

the

appreciation

potential

may

be

limited.

Equity-linked

securities

may

be

more

volatile

and

less

liquid

than

other

investments

held

by

the

Fund.

f.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the Fund,

and/or

a

joint

repurchase

agreement.

Additionally,

at

June

30,

2022,

the

Fund

held $32,247

in

U.S.

Government

and

Agency

securities

as

collateral.

These

securities

are

held as

collateral

in

segregated

accounts

with

the

Fund’s

custodian.

The

Fund

cannot

repledge

or

resell

these

securities

held

as

collateral.

As

such,

the

non-

cash

collateral

is

excluded

from

the

Statement

of

Assets

and

Liabilities.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/

or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to any

cash collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

g.

Senior

Floating

Rate

Interests

The

Fund

invests

in

senior

secured

corporate

loans

that

pay

interest

at

rates

which

are

periodically

reset

by

reference

to

a

base

lending

rate

plus

a

spread.

These

base

lending

rates

are

generally

the

prime

rate

offered

by

a

designated

U.S.

bank

or

the

London

InterBank

Offered

Rate

(LIBOR).

Senior

secured

corporate

loans

often

require

prepayment

of

principal

from

excess

cash

flows

or

at

the

discretion

of

the

borrower.

As

a

result,

actual

maturity

may

be

substantially

less

than

the

stated

maturity.

Senior

secured

corporate

loans

in

which

the Fund

invests

are

generally

readily

marketable,

but

may

be

subject

to

certain

restrictions

on

resale.

h.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Joint

Repurchase

Agreement

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FI-27

Semiannual

Report

Franklin

Income

VIP

Fund

(continued)

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

As

a

result

of

several

court

cases,

in

certain

countries

across

the

European

Union,

the

Fund

filed

additional

tax

reclaims

for

previously

withheld

taxes

on

dividends

earned

in

those

countries

(EU

reclaims). Income

recognized,

if

any,

for

EU

reclaims

is

reflected

as

other

income

in

the

Statement

of

Operations

and

any

related

receivable,

if

any,

is

reflected

as

European

Union

tax

reclaims

in

the

Statement

of

Assets

and

Liabilities.

Any

fees

associated

with

these

filings

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

When

uncertainty

exists

as

to

the

ultimate

resolution

of

these

proceedings,

the

likelihood

of

receipt

of

these

EU

reclaims,

and

the

potential

timing

of

payment,

no

amounts

are

reflected

in

the

financial

statements.

For

U.S.

income

tax

purposes,

when

EU

reclaims

are

received

by

the

Fund

and

the

Fund

previously

passed

foreign

tax

credit

on

to

its

shareholders,

the

Fund

will

enter

into

a

closing

agreement

with

the

Internal

Revenue

Service

(IRS)

in

order

to

pay

the

associated

tax

liability

on

behalf

of

the

Fund’s

shareholders.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

i.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Paydown

gains

and

losses

are

recorded

as

an

adjustment

to

interest

income.

Facility

fees

are

recognized

as

income

over

the

expected

term

of

the

loan.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods. 

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

j.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

1.

Organization

and

Significant

Accounting

Policies

(continued)

h.

Income

and

Deferred

Taxes

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FI-28

Semiannual

Report

Franklin

Income

VIP

Fund

(continued)

k.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust, on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

412,199

$7,151,785

2,421,558

$40,162,495

Shares

issued

in

reinvestment

of

distributions

..........

1,008,545

15,259,288

964,562

16,108,181

Shares

redeemed

...............................

(1,139,891)

(19,536,473)

(9,030,990)

(148,636,060)

Net

increase

(decrease)

..........................

280,853

$2,874,600

(5,644,870)

$(92,365,384)

Class

2

Shares:

Shares

sold

...................................

9,840,749

$161,827,575

8,261,102

$133,024,654

Shares

issued

in

reinvestment

of

distributions

..........

12,955,178

187,850,088

11,472,643

184,021,190

Shares

redeemed

...............................

(20,565,487)

(335,234,421)

(95,307,859)

(1,508,788,338)

Net

increase

(decrease)

..........................

2,230,440

$14,443,242

(75,574,114)

$(1,191,742,494)

Class

4

Shares:

Shares

sold

...................................

2,879,430

$48,413,623

2,779,479

$45,895,938

Shares

issued

in

reinvestment

of

distributions

..........

1,461,225

21,816,089

851,346

14,055,725

Shares

redeemed

...............................

(2,093,120)

(35,343,984)

(3,856,387)

(63,559,364)

Net

increase

(decrease)

..........................

2,247,535

$34,885,728

(225,562)

$(3,607,701)

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

Manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

Manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FI-29

Semiannual

Report

Franklin

Income

VIP

Fund

(continued)

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was

0.457%

of

the

Fund’s

average

daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

2

and

Class

4

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.35%

per

year

of

its

average

daily

net

assets

of

each

class.

The

Board

has

agreed

to

limit

the

current

rate

to

0.25%

per

year

for

Class

2.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

e.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Subsidiary

Affiliation

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

In

excess

of

$15

billion

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FI-30

Semiannual

Report

Franklin

Income

VIP

Fund

(continued)

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

June

30,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

At

June

30,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

EU

reclaims,

equity-linked

securities

and

convertible

securities.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

aggregated

$1,176,250,651

and

$1,231,248,831,

respectively.

At

June

30,

2022,

in

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received

$10,875,008

of

cash

collateral.

The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Statement

of

Assets

and

Liabilities.

The

agreements

can

be

terminated

at

any

time.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Income

VIP

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$

56,779,626

$

709,493,981

$

(746,759,187)

$

—

$

—

$

19,514,420

19,514,420

$

36,044

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$20,527,000

$107,084,000

$(118,824,000)

$—

$—

$8,787,000

8,787,000

$7,314

Total

Affiliated

Securities

...

$77,306,626

$816,577,981

$(865,583,187)

$—

$—

$28,301,420

$43,358

Cost

of

investments

..........................................................................

$3,177,949,393

Unrealized

appreciation

........................................................................

$320,259,607

Unrealized

depreciation

........................................................................

(332,995,993)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(12,736,386)

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FI-31

Semiannual

Report

Franklin

Income

VIP

Fund

(continued)

7.

Credit

Risk

At

June

30,

2022,

the

Fund

had

28.0%

of

its

portfolio

invested

in

high

yield,

senior

secured

floating

rate

loans,

or

other

securities

rated

below

investment

grade

and

unrated

securities.

These

securities

may

be

more

sensitive

to

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

to

a

greater

risk

of

loss

due

to

default

than

higher

rated

securities.

8.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

9.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

10.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

11.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FI-32

Semiannual

Report

Franklin

Income

VIP

Fund

(continued)

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Income

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

64,620,750

$

—

$

—

$

64,620,750

Air

Freight

&

Logistics

...................

28,786,558

—

—

28,786,558

Banks

...............................

89,602,450

—

—

89,602,450

Biotechnology

.........................

43,068,200

—

—

43,068,200

Capital

Markets

........................

23,578,600

—

—

23,578,600

Chemicals

...........................

26,706,026

9,843,785

—

36,549,811

Diversified

Telecommunication

Services

.....

63,505,392

—

—

63,505,392

Electric

Utilities

........................

110,858,800

—

—

110,858,800

Energy

Equipment

&

Services

.............

4,022,300

—

—

4,022,300

Health

Care

Equipment

&

Supplies

.........

29,617,500

—

—

29,617,500

Health

Care

Providers

&

Services

..........

1,875,000

—

—

1,875,000

Household

Products

....................

17,254,800

—

—

17,254,800

Industrial

Conglomerates

................

19,988,150

—

—

19,988,150

Insurance

............................

18,837,000

—

—

18,837,000

IT

Services

...........................

28,192,678

—

—

28,192,678

Media

...............................

21,582,000

—

—

21,582,000

Metals

&

Mining

.......................

9,150,000

—

—

9,150,000

Multi-Utilities

..........................

65,128,624

—

—

65,128,624

Oil,

Gas

&

Consumable

Fuels

.............

133,706,250

—

—

133,706,250

Personal

Products

.....................

—

13,671,693

—

13,671,693

Pharmaceuticals

.......................

111,733,150

—

—

111,733,150

Road

&

Rail

..........................

10,664,000

—

—

10,664,000

Semiconductors

&

Semiconductor

Equipment

.

66,138,583

—

—

66,138,583

Specialty

Retail

........................

8,776,640

—

—

8,776,640

Tobacco

.............................

19,748,000

—

—

19,748,000

Equity-Linked

Securities

...................

—

477,093,570

—

477,093,570

Convertible

Preferred

Stocks

:

Capital

Markets

........................

4,969,950

—

—

4,969,950

Electric

Utilities

........................

49,717,330

—

—

49,717,330

Multi-Utilities

..........................

20,568,000

—

—

20,568,000

Semiconductors

&

Semiconductor

Equipment

.

25,553,550

—

—

25,553,550

Thrifts

&

Mortgage

Finance

...............

—

4,631,250

—

4,631,250

Convertible

Bonds

.......................

—

9,272,981

—

9,272,981

Corporate

Bonds

........................

—

1,150,960,730

—

1,150,960,730

Index-Linked

Notes

......................

—

33,267,490

—

33,267,490

Senior

Floating

Rate

Interests

...............

—

2,166,718

—

2,166,718

U.S.

Government

and

Agency

Securities

.......

—

296,931,304

—

296,931,304

Asset-Backed

Securities

..................

—

8,335,467

—

8,335,467

Mortgage-Backed

Securities

................

—

1,721,760

—

1,721,760

Escrows

and

Litigation

Trusts

...............

—

8,976,550

—

8,976,550

Short

Term

Investments

...................

28,301,420

2,088,008

—

30,389,428

Total

Investments

in

Securities

...........

$1,146,251,701

$2,018,961,306

a

$—

$3,165,213,007

a

Includes

foreign

securities

valued

at

$23,515,478,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

11.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FI-33

Semiannual

Report

Franklin

Income

VIP

Fund

(continued)

12.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-

04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

LIBOR

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

In June

2022,

the

FASB

issued

ASU

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

13.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

Cu

r

rency

USD

United

States

Dollar

Selected

Portfolio

ADR

American

Depositary

Receipt

CME

Chicago

Mercantile

Exchange

FNMA

Federal

National

Mortgage

Association

FRN

Floating

Rate

Note

LIBOR

London

Inter-Bank

Offered

Rate

SOFR

Secured

Overnight

Financing

Rate

FLG-1

Semiannual

Report

Franklin

Large

Cap

Growth

VIP

Fund

This

semiannual

report

for

Franklin

Large

Cap

Growth

VIP

Fund

covers

the

period

ended

June

30

,

2022

.

Class

1

Performance

Summary

as

of

June

30

,

2022

The

Fund’s

Class

1

Shares

posted

a

-

33.49%

total

return

for

the

six-month

period

ended

June

30,

2022.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

FLG-2

Semiannual

Report

Franklin

Large

Cap

Growth

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

investments

of

large-capitalization

companies.

For

this

Fund,

large-capitalization

companies

are

those

with

market

capitalization

values

within

those

of

the

top

50%

of

companies

in

the

Russell

1000

®

Index

at

the

time

of

purchase.

1

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues,

and

can,

therefore,

fall

dramatically

if

the

company

fails

to

meet

those

projections.

The

Fund

may

focus

on

particular

sectors

of

the

market

from

time

to

time,

which

can

carry

greater

risks

of

adverse

developments

in

such

sectors.

Smaller

or

midsized

companies

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger

companies.

Investments

in

foreign

securities

may

involve

special

risks

including

currency

fluctuations

and

economic

and

political

uncertainty.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

benchmark,

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

posted

a

-19.96%

total

return.

2

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

S&P

500,

posted

a

-19.96%

total

return

for

the

six

months

ended

June

30,

2022.

2

Concerns

surrounding

higher

inflation,

geopolitical

stability

and

rising

interest

rates

pressured

stocks,

particularly

in

the

second

half

of

the

period.

Elevated

demand

combined

with

supply

chain

disruptions

led

to

the

highest

inflation

since

1981

and

borrowing

costs

increased

from

historically

low

levels.

Russia’s

invasion

of

Ukraine

injected

further

uncertainty

into

financial

markets,

provoking

significant

volatility

in

commodity

and

equity

prices.

*Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

Portfolio

Composition

6/30/22

%

of

Total

Net

Assets

Software

22.2%

IT

Services

8.9%

Internet

&

Direct

Marketing

Retail

7.1%

Life

Sciences

Tools

&

Services

6.7%

Semiconductors

&

Semiconductor

Equipment

5.9%

Technology

Hardware,

Storage

&

Peripherals

5.6%

Interactive

Media

&

Services

5.4%

Capital

Markets

4.9%

Health

Care

Equipment

&

Supplies

4.2%

Health

Care

Providers

&

Services

3.7%

Equity

Real

Estate

Investment

Trusts

(REITs)

3.2%

Pharmaceuticals

2.6%

Professional

Services

2.3%

Hotels,

Restaurants

&

Leisure

2.0%

Other*

13.3%

Short-Term

Investments

&

Other

Net

Assets

2.0%

1.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

2.

Source:

Morningstar.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

Franklin

Large

Cap

Growth

VIP

Fund

FLG-3

Semiannual

Report

Gross

domestic

product

growth

contracted

in

the

first

quarter

of

2022

amid

lower

investments

in

inventories

and

a

growing

trade

deficit.

Private

domestic

investment

slowed

sharply,

while

government

spending

declined

in

the

first

quarter.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

The

inflation

rate

was

elevated

during

the

six-month

period

amid

increased

demand

and

supply

chain

bottlenecks.

U.S.

consumer

spending

on

goods

remained

strong

during

the

first

half

of

the

period,

adding

to

pressure

on

the

prices

of

many

products.

Energy

costs

also

rose,

as

oil

prices

increased

significantly,

driven

by

greater

global

demand

and

sanctions

on

Russia,

one

of

the

world’s

largest

oil

producers.

The

personal

consumption

expenditures

index,

a

measure

of

inflation,

rose

dramatically

during

the

period,

representing

the

highest

12-month

increase

in

decades.

The

unemployment

rate

declined

from

3.9%

in

December

2021

to

3.6%

in

June

2022,

but

a

relative

lack

of

available

workers

fueled

wage

growth,

adding

to

some

investors’

inflation

concerns.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

2022

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

will

continue

to

reduce

its

bond

holdings,

and

it

anticipated

instituting

further

interest-rate

increases

at

future

meetings.

Investment

Strategy

We

are

research

driven,

fundamental

investors,

pursuing

a

growth

strategy.

As

bottom-up

investors

focusing

primarily

on

individual

securities,

we

seek

companies

that

have

identifiable

drivers

of

future

earnings

growth

and

that

present,

in

our

opinion,

the

best

trade-off

between

that

potential

earnings

growth,

business

and

financial

risk,

and

valuation.

Manager’s

Discussion

For

the

six-month

reporting

period,

the

Fund

underperformed

the

S&P

500

Index

at

a

time

of

heightened

market

volatility.

Much

of

the

underperformance

was

due

to

stock

selection

and

overweighting

in

the

information

technology

(IT)

sector.

Off-index

stakes

in

payment

solutions

provider

Bill.com

Holdings

and

e-commerce

platform

Shopify

were

drags

on

relative

returns.

Both

companies

tracked

markets

lower

despite

what

we

view

as

their

strong

fundamentals.

In

contrast,

Mastercard

was

a

top

contributor

in

the

IT

sector.

The

payment

processor

has

seen

improved

cross-border

trends

as

post-pandemic

travel

recovers.

While

health

care

was

a

detractor

at

the

sector

level,

the

Fund’s

investments

in

global

pharmaceutical

company

AstraZeneca

and

private

health

insurer

UnitedHealth

Group

boosted

results.

AstraZeneca

holds

a

portfolio

of

multiple

blockbuster

drugs

that

are

helping

drive

revenue

growth

for

the

company,

while

increasing

demand

for

health

insurance

along

with

price

hikes

passed

on

to

customers

have

been

revenue

boosts

for

UnitedHealth.

The

impact

of

rising

inflation

on

consumer

spending

weighed

on

the

consumer

discretionary

sector,

where

stock

selection

and

an

overweighting

proved

adverse.

In

the

sector,

supply-

chain

snarls

and

parts

shortages

have

been

headwinds

for

electric

vehicle

manufacturer

Rivian

Automotive,

while

rising

oil

prices

and

higher

expenses

pressured

the

shares

of

e-commerce

giant

Amazon.com.

In

the

communication

services

sector,

a

lighter-than-index

exposure

to

interactive

media

and

services

company

Meta

Platforms

proved

beneficial

in

relative

terms.

The

company

struggled

with

headwinds

from

platform

changes

by

Apple

(also

a

Fund

holding);

the

negative

impact

of

supply

chain

and

inflationary

pressures;

and

decreased

user

engagement.

Our

lower-than-benchmark

exposure

to

Meta

helped

mitigate

the

relative

impact

of

the

stock’s

substantial

decline.

Top

10

Holdings

6/30/22

Company

Industry

%

of

Total

Net

Assets

a

aa

Amazon.com,

Inc.

7.1%

Internet

&

Direct

Marketing

Retail

Microsoft

Corp.

6.5%

Software

Apple,

Inc.

5.6%

Technology

Hardware,

Storage

&

Peripherals

Mastercard

,

Inc.

5.3%

IT

Services

ServiceNow

,

Inc.

4.1%

Software

Alphabet,

Inc.

4.1%

Interactive

Media

&

Services

UnitedHealth

Group,

Inc.

3.3%

Health

Care

Providers

&

Services

SBA

Communications

Corp.

3.2%

Equity

Real

Estate

Investment

Trusts

(REITs)

Danaher

Corp.

2.9%

Life

Sciences

Tools

&

Services

West

Pharmaceutical

Services,

Inc.

2.4%

Life

Sciences

Tools

&

Services

Franklin

Large

Cap

Growth

VIP

Fund

FLG-4

Semiannual

Report

Thank

you

for

your

participation

in

Franklin

Large

Cap

Growth

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Class

1

Fund

Expenses

Franklin

Large

Cap

Growth

VIP

Fund

FLG-5

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

1

$1,000

$665.10

$3.56

$1,020.52

$4.31

0.86%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Large

Cap

Growth

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FLG-6

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$30.30

$29.78

$22.73

$19.19

$20.93

$17.85

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..............

(0.04)

(0.10)

(0.09)

(0.06)

(0.04)

(0.03)

Net

realized

and

unrealized

gains

(losses)

(10.14)

4.39

9.54

6.51

0.03

4.91

Total

from

investment

operations

........

(10.18)

4.29

9.45

6.45

(0.01)

4.88

Less

distributions

from:

Net

investment

income

..............

—

—

—

—

—

(0.20)

Net

realized

gains

.................

(5.08)

(3.77)

(2.40)

(2.91)

(1.73)

(1.60)

Total

distributions

...................

(5.08)

(3.77)

(2.40)

(2.91)

(1.73)

(1.80)

Net

asset

value,

end

of

period

..........

$15.04

$30.30

$29.78

$22.73

$19.19

$20.93

Total

return

c

.......................

(33.49)%

15.56%

44.98%

34.98%

(1.24)%

28.38%

Ratios

to

average

net

assets

d

Expenses

e

........................

0.86%

f

0.84%

f

0.84%

f

0.84%

f

0.85%

0.87%

Net

investment

(loss)

................

(0.31)%

(0.32)%

(0.36)%

(0.25)%

(0.17)%

(0.14)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,576

$5,387

$4,606

$1,350

$1,040

$1,092

Portfolio

turnover

rate

................

6.56%

14.98%

14.90%

17.01%

21.93%

24.96%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Large

Cap

Growth

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FLG-7

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$28.93

$28.65

$22.00

$18.70

$20.48

$17.48

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..............

(0.06)

(0.16)

(0.14)

(0.11)

(0.09)

(0.08)

Net

realized

and

unrealized

gains

(losses)

(9.69)

4.21

9.19

6.32

0.04

4.81

Total

from

investment

operations

........

(9.75)

4.05

9.05

6.21

(0.05)

4.73

Less

distributions

from:

Net

investment

income

..............

—

—

—

—

—

(0.13)

Net

realized

gains

.................

(5.08)

(3.77)

(2.40)

(2.91)

(1.73)

(1.60)

Total

distributions

...................

(5.08)

(3.77)

(2.40)

(2.91)

(1.73)

(1.73)

Net

asset

value,

end

of

period

..........

$14.10

$28.93

$28.65

$22.00

$18.70

$20.48

Total

return

c

.......................

(33.57)%

15.28%

44.63%

34.58%

(1.47)%

28.11%

Ratios

to

average

net

assets

d

Expenses

e

........................

1.11%

f

1.09%

f

1.09%

f

1.09%

f

1.10%

1.12%

Net

investment

(loss)

................

(0.57)%

(0.57)%

(0.58)%

(0.50)%

(0.42)%

(0.39)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$80,858

$128,584

$131,001

$114,170

$100,435

$118,875

Portfolio

turnover

rate

................

6.56%

14.98%

14.90%

17.01%

21.93%

24.96%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Large

Cap

Growth

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FLG-8

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

98.0%

Auto

Components

0.7%

a

Aptiv

plc

............................................

United

States

6,658

$

593,028

Automobiles

1.7%

a,b

Lucid

Group,

Inc.

.....................................

United

States

8,802

151,042

a,b

Rivian

Automotive,

Inc.,

A

...............................

United

States

18,726

482,007

a

Tesla,

Inc.

...........................................

United

States

1,166

785,208

1,418,257

Beverages

1.7%

Constellation

Brands,

Inc.,

A

.............................

United

States

2,753

641,614

a

Monster

Beverage

Corp.

................................

United

States

8,433

781,739

1,423,353

Biotechnology

0.1%

a

Heron

Therapeutics,

Inc.

................................

United

States

45,652

127,369

Capital

Markets

4.9%

Intercontinental

Exchange,

Inc.

...........................

United

States

5,953

559,820

MSCI,

Inc.

...........................................

United

States

4,881

2,011,704

S&P

Global,

Inc.

......................................

United

States

4,789

1,614,181

4,185,705

Chemicals

1.4%

Linde

plc

............................................

United

Kingdom

4,186

1,203,601

Commercial

Services

&

Supplies

0.6%

Republic

Services,

Inc.

.................................

United

States

4,079

533,819

Electric

Utilities

0.7%

NextEra

Energy,

Inc.

...................................

United

States

7,386

572,120

Entertainment

0.6%

a

Walt

Disney

Co.

(The)

..................................

United

States

5,049

476,626

Equity

Real

Estate

Investment

Trusts

(REITs)

3.2%

SBA

Communications

Corp.

.............................

United

States

8,480

2,714,024

Food

Products

0.2%

a

Freshpet

,

Inc.

........................................

United

States

3,595

186,545

Health

Care

Equipment

&

Supplies

4.2%

a

Edwards

Lifesciences

Corp.

.............................

United

States

13,113

1,246,915

a

Figs,

Inc.,

A

..........................................

United

States

28,790

262,277

a

IDEXX

Laboratories,

Inc.

................................

United

States

1,821

638,679

a

Intuitive

Surgical,

Inc.

..................................

United

States

5,607

1,125,381

a

Nevro

Corp.

.........................................

United

States

5,836

255,792

3,529,044

Health

Care

Providers

&

Services

3.7%

a

Guardant

Health,

Inc.

..................................

United

States

9,904

399,527

UnitedHealth

Group,

Inc.

................................

United

States

5,400

2,773,602

3,173,129

Health

Care

Technology

1.3%

a

Veeva

Systems,

Inc.,

A

.................................

United

States

5,571

1,103,281

Hotels,

Restaurants

&

Leisure

2.0%

a

Chipotle

Mexican

Grill,

Inc.

..............................

United

States

1,023

1,337,327

a,b

Dutch

Bros,

Inc.,

A

....................................

United

States

10,162

321,627

1,658,954

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Large

Cap

Growth

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FLG-9

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Industrial

Conglomerates

1.0%

Honeywell

International,

Inc.

.............................

United

States

4,780

$

830,812

Interactive

Media

&

Services

5.4%

a

Alphabet,

Inc.,

A

......................................

United

States

1,580

3,443,231

a

Meta

Platforms,

Inc.,

A

.................................

United

States

6,839

1,102,788

4,546,019

Internet

&

Direct

Marketing

Retail

7.1%

a

Amazon.com,

Inc.

.....................................

United

States

56,500

6,000,865

IT

Services

8.9%

a

Cloudflare

,

Inc.,

A

.....................................

United

States

4,150

181,562

a,b

Marqeta

,

Inc.,

A

.......................................

United

States

22,256

180,496

Mastercard

,

Inc.,

A

....................................

United

States

14,122

4,455,209

a

Okta

,

Inc.

...........................................

United

States

3,388

306,275

a

Shopify,

Inc.,

A

.......................................

Canada

10,760

336,142

a

Snowflake,

Inc.,

A

.....................................

United

States

2,859

397,573

Visa,

Inc.,

A

..........................................

United

States

8,454

1,664,508

7,521,765

Life

Sciences

Tools

&

Services

6.7%

Danaher

Corp.

.......................................

United

States

9,543

2,419,341

a

Illumina,

Inc.

.........................................

United

States

2,385

439,699

Thermo

Fisher

Scientific,

Inc.

............................

United

States

1,318

716,043

West

Pharmaceutical

Services,

Inc.

........................

United

States

6,796

2,054,906

5,629,989

Machinery

0.3%

a,b

Proterra

,

Inc.

.........................................

United

States

47,147

218,762

Pharmaceuticals

2.6%

AstraZeneca

plc,

ADR

..................................

United

Kingdom

21,344

1,410,198

a

Catalent

,

Inc.

........................................

United

States

7,698

825,918

2,236,116

Professional

Services

2.3%

a

CoStar

Group,

Inc.

....................................

United

States

25,058

1,513,754

TransUnion

..........................................

United

States

5,166

413,228

1,926,982

Road

&

Rail

1.9%

a

Uber

Technologies,

Inc.

.................................

United

States

16,438

336,322

Union

Pacific

Corp.

....................................

United

States

5,937

1,266,243

1,602,565

Semiconductors

&

Semiconductor

Equipment

5.9%

Analog

Devices,

Inc.

...................................

United

States

6,231

910,287

ASML

Holding

NV,

NYRS

...............................

Netherlands

888

422,582

a,b

GLOBALFOUNDRIES,

Inc.

..............................

United

States

5,921

238,853

Monolithic

Power

Systems,

Inc.

...........................

United

States

3,610

1,386,384

NVIDIA

Corp.

........................................

United

States

13,285

2,013,873

4,971,979

Software

22.2%

a

Adobe,

Inc.

..........................................

United

States

3,895

1,425,804

a

Atlassian

Corp.

plc,

A

..................................

United

States

1,898

355,685

a

Bill.com

Holdings,

Inc.

..................................

United

States

9,394

1,032,776

a

Confluent,

Inc.,

A

......................................

United

States

9,664

224,591

a

Crowdstrike

Holdings,

Inc.,

A

.............................

United

States

2,442

411,624

a

HashiCorp

,

Inc.,

A

.....................................

United

States

9,880

290,867

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Large

Cap

Growth

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FLG-10

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Software

(continued)

Intuit,

Inc.

...........................................

United

States

4,284

$

1,651,225

Microsoft

Corp.

.......................................

United

States

21,408

5,498,217

a

Monday.com

Ltd.

......................................

United

States

2,336

240,982

a

Paycom

Software,

Inc.

.................................

United

States

1,453

407,014

Roper

Technologies,

Inc.

................................

United

States

2,774

1,094,759

a

Salesforce,

Inc.

.......................................

United

States

5,202

858,538

a

ServiceNow

,

Inc.

......................................

United

States

7,329

3,485,086

a

Synopsys,

Inc.

.......................................

United

States

3,864

1,173,497

a

Workday,

Inc.,

A

......................................

United

States

4,484

625,877

18,776,542

Technology

Hardware,

Storage

&

Peripherals

5.6%

Apple,

Inc.

..........................................

United

States

34,440

4,708,637

Textiles,

Apparel

&

Luxury

Goods

1.1%

NIKE,

Inc.,

B

.........................................

United

States

8,953

914,997

Total

Common

Stocks

(Cost

$40,703,164)

......................................

82,784,885

Short

Term

Investments

2.7%

a

a

Principal

Amount

*

a

Value

a

a

a

a

a

a

Repurchase

Agreements

0.9%

c

Joint

Repurchase

Agreement,

1.411%,

7/01/22

(Maturity

Value

$780,350)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$427,101)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$22,240)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$331,009)

Collateralized

by

U.S.

Government

Agency

Securities,

2%

-

6%,

12/28/37

-

12/20/51;

U.S.

Government

Agency

Strips,

7/15/23;

and

U.S.

Treasury

Notes,

0.25%

-

0.75%,

7/31/25

-

3/31/26

(valued

at

$796,168)

.........................................

780,320

780,320

Total

Repurchase

Agreements

(Cost

$780,320)

..................................

780,320

Country

Shares

d

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

1.8%

Money

Market

Funds

1.4%

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

....

United

States

1,185,000

1,185,000

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Large

Cap

Growth

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FLG-11

See

Abbreviations

on

page

FLG-

21

.

Short

Term

Investments

(continued)

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Repurchase

Agreements

0.4%

c

Joint

Repurchase

Agreement,

J.P.

Morgan

Securities

LLC,

1.48%,

7/01/22

(Maturity

Value

$297,145)

Collateralized

by

U.S.

Treasury

Notes,

0.5%,

4/30/27

-

5/31/27

(valued

at

$303,076)

.................................

297,133

$

297,133

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$1,482,133)

............................................................

1,482,133

Total

Short

Term

Investments

(Cost

$2,262,453

)

.................................

2,262,453

a

Total

Investments

(Cost

$42,965,617)

100.7%

...................................

$85,047,338

Other

Assets,

less

Liabilities

(0.7)%

...........................................

(613,728)

Net

Assets

100.0%

...........................................................

$84,433,610

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Non-income

producing.

b

A

portion

or

all

of

the

security

is

on

loan

at

June

30,

2022.

See

Note

1(d).

c

See

Note

1(c)

regarding

repurchase

agreement.

d

See

Note

1(d)

regarding

securities

on

loan.

e

See

Note

3(e)

regarding

investments

in

affiliated

management

investment

companies.

f

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

g

See

Note

1(c)

regarding

joint

repurchase

agreement.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FLG-12

Franklin

Large

Cap

Growth

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$40,703,164

Cost

-

Non-controlled

affiliates

(Note

3e)

........................................................

1,185,000

Cost

-

Unaffiliated

repurchase

agreements

......................................................

1,077,453

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$1,479,751)

.................................

$82,784,885

Value

-

Non-controlled

affilia

tes

(Note

3e)

.......................................................

1,185,000

Value

-

Unaffiliated

repurchase

agreements

......................................................

1,077,453

Receivables:

Investment

securities

sold

...................................................................

695,363

Capital

shares

sold

........................................................................

469,189

Dividends

and

interest

.....................................................................

30,413

Total

assets

..........................................................................

86,242,303

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

158,367

Capital

shares

redeemed

...................................................................

24,350

Management

fees

.........................................................................

52,761

Distribution

fees

..........................................................................

16,932

Trustees'

fees

and

expenses

.................................................................

606

Payable

upon

return

of

securities

loaned

(Note

1

d

)

..................................................

1,482,133

Accrued

expenses

and

other

liabilities

...........................................................

73,544

Total

liabilities

.........................................................................

1,808,693

Net

assets,

at

value

.................................................................

$84,433,610

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$41,023,131

Total

distributable

earnings

(losses)

.............................................................

43,410,479

Net

assets,

at

value

.................................................................

$84,433,610

Franklin

Large

Cap

Growth

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$3,576,036

Shares

outstanding

........................................................................

237,760

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$15.04

Class

2:

Net

assets,

at

value

.......................................................................

$80,857,574

Shares

outstanding

........................................................................

5,733,997

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$14.10

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FLG-13

Franklin

Large

Cap

Growth

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$519)

Unaffiliated

issuers

........................................................................

$220,964

Interest:

Unaffiliated

issuers

........................................................................

2,273

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

56,580

Non-controlled

affiliates

(Note

3

e

)

.............................................................

720

Total

investment

income

...................................................................

280,537

Expenses:

Management

fees

(Note

3

a

)

...................................................................

386,317

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

123,449

Custodian

fees

(Note

4

)

......................................................................

743

Reports

to

shareholders

fees

..................................................................

19,169

Professional

fees

...........................................................................

32,162

Trustees'

fees

and

expenses

..................................................................

1,158

Other

....................................................................................

5,108

Total

expenses

.........................................................................

568,106

Expense

reductions

(Note

4

)

...............................................................

(3)

Expenses

waived/paid

by

affiliates

(

Note

3e)

...................................................

(1,457)

Net

expenses

.........................................................................

566,646

Net

investment

income

(loss)

............................................................

(286,109)

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

1,618,902

Foreign

currency

transactions

................................................................

117

Net

realized

gain

(loss)

..................................................................

1,619,019

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(45,362,582)

Net

realized

and

unrealized

gain

(loss)

............................................................

(43,743,563)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(44,029,672)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FLG-14

Franklin

Large

Cap

Growth

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

............................................

$(286,109)

$(759,087)

Net

realized

gain

(loss)

.................................................

1,619,019

23,018,611

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(45,362,582)

(3,017,147)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(44,029,672)

19,242,377

Distributions

to

shareholders:

Class

1

.............................................................

(901,917)

(589,813)

Class

2

.............................................................

(21,324,131)

(16,040,591)

Total

distributions

to

shareholders

..........................................

(22,226,048)

(16,630,404)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

893,208

643,138

Class

2

.............................................................

15,824,762

(4,891,047)

Total

capital

share

transactions

............................................

16,717,970

(4,247,909)

Net

increase

(decrease)

in

net

assets

...................................

(49,537,750)

(1,635,936)

Net

assets:

Beginning

of

period

.....................................................

133,971,360

135,607,296

End

of

period

..........................................................

$84,433,610

$133,971,360

Franklin

Templeton

Variable

Insurance

Products

Trust

FLG-15

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

Franklin

Large

Cap

Growth

VIP

Fund

1.

Organization

and

Significant

Accounting

Policies

Franklin

Templeton

Variable

Insurance

Products

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Large

Cap

Growth

VIP

Fund

(Fund)

is

included

in

this

report. Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

At

June

30,

2022,

67.6%

of

the

Fund’s

shares

were

held

through

one

insurance

company.

Investment

activities

of

these

insurance

company

separate

accounts

could

have

a

material

impact

on

the

Fund.

The

Fund

offers

two

classes

of

shares:

Class

1

and

Class

2.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege.

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Investments

in open-end

mutual

funds

are

valued

at

the

closing

NAV.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day.

Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund’s

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FLG-16

Semiannual

Report

Franklin

Large

Cap

Growth

VIP

Fund

(continued)

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Joint

Repurchase

Agreement

The

Fund

enters

into

a

joint

repurchase

agreement

whereby

its

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Fund's

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Fund,

certain

MRAs

may

permit

the

non-

defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Fund

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Fund

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the Fund

at

year

end,

as

indicated

in

the

Schedule

of

Investments,

had

been

entered

into

on

June

30,

2022.

d.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the Fund,

and/or

a

joint

repurchase

agreement.

Additionally,

the

Fund

received

$97,195

in

U.S.

Government

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FLG-17

Semiannual

Report

Franklin

Large

Cap

Growth

VIP

Fund

(continued)

and

Agency

securities

as

collateral.

These

securities

are

held

as

collateral

in

segregated

accounts

with

the

Fund’s

custodian.

The

Fund

cannot

repledge

or

resell

these

securities

held

as

collateral.

As

such,

the

non-cash

collateral

is

excluded

from

the

Statement

of

Assets

and

Liabilities.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to any

cash collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

e.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date. 

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

f.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Dividend

income

and

capital

gain

distributions

are

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

g.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Securities

Lending

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FLG-18

Semiannual

Report

Franklin

Large

Cap

Growth

VIP

Fund

(continued)

h.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

—

$—

4,879

$142,500

Shares

issued

in

reinvestment

of

distributions

..........

60,329

901,917

21,262

589,813

Shares

redeemed

...............................

(351)

(8,709)

(3,046)

(89,175)

Net

increase

(decrease)

..........................

59,978

$893,208

23,095

$643,138

Class

2

Shares:

Shares

sold

...................................

273,122

$6,127,790

268,877

$7,625,062

Shares

issued

in

reinvestment

of

distributions

..........

1,520,980

21,324,131

604,849

16,040,591

Shares

redeemed

...............................

(505,409)

(11,627,159)

(1,000,883)

(28,556,700)

Net

increase

(decrease)

..........................

1,288,693

$15,824,762

(127,157)

$(4,891,047)

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.750%

Up

to

and

including

$500

million

0.625%

Over

$500

million,

up

to

and

including

$1

billion

0.500%

In

excess

of

$1

billion

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FLG-19

Semiannual

Report

Franklin

Large

Cap

Growth

VIP

Fund

(continued)

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was

0.750%

of

the

Fund’s

average

daily

net

assets.

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

a

distribution

plan

for

Class

2

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plan,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.35%

per

year

of

its

average

daily

net

assets.

The

Board

has

agreed

to

limit

the

current

rate

to

0.25%

per

year

for

Class

2.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rate,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

e.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

June

30,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Large

Cap

Growth

VIP

Fund

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$1,948,000

$13,993,000

$(14,756,000)

$—

$—

$1,185,000

1,185,000

$720

Total

Affiliated

Securities

...

$1,948,000

$13,993,000

$(14,756,000)

$—

$—

$1,185,000

$720

3.

Transactions

with

Affiliates

(continued)

a.

Management

Fees

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FLG-20

Semiannual

Report

Franklin

Large

Cap

Growth

VIP

Fund

(continued)

5.

Income

Taxes

At

June

30,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatment

of

passive

foreign

investment

company

shares.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

aggregated

$6,902,941

and

$13,606,076,

respectively.

At

June

30,

2022,

in

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received $1,482,133 of

cash

collateral. The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Statement

of

Assets

and

Liabilities.

The

agreements

can

be

terminated

at

any

time.

7.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

8.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

9.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

Cost

of

investments

..........................................................................

$42,969,476

Unrealized

appreciation

........................................................................

$49,862,651

Unrealized

depreciation

........................................................................

(7,784,788)

Net

unrealized

appreciation

(depreciation)

..........................................................

$42,077,863

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FLG-21

Semiannual

Report

Franklin

Large

Cap

Growth

VIP

Fund

(continued)

10.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's assets

carried

at

fair

value,

is

as

follows:

11.

New

Accounting

Pronouncements

In June

2022,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

12.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

Level

1

Level

2

Level

3

Total

Franklin

Large

Cap

Growth

VIP

Fund

Assets:

Investments

in

Securities:

a

Common

Stocks

........................

$

82,784,885

$

—

$

—

$

82,784,885

Short

Term

Investments

...................

1,185,000

1,077,453

—

2,262,453

Total

Investments

in

Securities

...........

$83,969,885

$1,077,453

$—

$85,047,338

a

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

Selected

Portfolio

ADR

American

Depositary

Receipt

NYRS

New

York

Registry

Shares

MGD-1

Semiannual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

This

semiannual

report

for

Franklin

Mutual

Global

Discovery

VIP

Fund

covers

the

period

ended

June

30,

2022

.

Class

1

Performance

Summary

as

of

June

30,

2022

The

Fund’s

Class

1

Shares

posted

a

-

9.35%

total

return

for

the

six-month

period

ended

June

30,

2022.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

MGD-2

Semiannual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation.

Under

normal

market

conditions,

the

Fund

invests

primarily

in

equity

securities

of

U.S.

and

foreign

companies

that

we

believe

are

available

at

market

prices

less

than

their

intrinsic

value.

The

equity

securities

in

which

the

Fund

invests

are

primarily

common

stock,

with

a

current

focus

on

mid-

and

large

cap

companies.

To

a

lesser

extent,

the

Fund

also

invests

in

merger

arbitrage

securities

and

the

debt

and

equity

of

distressed

companies.

The

Fund

may

invest

substantially

and

potentially

up

to

100%

of

its

assets

in

foreign

securities,

which

may

include

sovereign

debt

and

participations

in

foreign

government

debt.

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

Value

securities

may

not

increase

in

price

as

anticipated

if

other

investors

fail

to

recognize

the

company's

value

and

bid

up

the

price,

the

markets

favor

faster-growing

companies,

or

the

factors

that

the

investment

manager

believes

will

increase

the

price

of

the

security

do

not

occur

or

do

not

have

the

anticipated

effect.

Investing

in

foreign

securities

typically

involve

more

risks

than

investing

in

U.S.

securities,

and

includes

risks

associated

with

internal

and

external

political

and

economic

developments,

trading

practices,

availability

of

information,

limited

markets,

and

currency

exchange

rate

fluctuations

and

policies.

Because

the

Fund

may

invest

at

least

a

significant

portion

of

its

assets

in

companies

in

a

specific

region,

including

Europe,

the

Fund

is

subject

to

greater

risks

of

adverse

developments

in

that

region

and/

or

the

surrounding

regions

than

a

fund

that

is

more

broadly

diversified

geographically.

Securities

issued

by

small

and

mid-capitalization

companies

may

be

more

volatile

in

price

than

those

of

larger

companies

and

may

involve

additional

risks.

Derivative

instruments

involve

costs

and

can

create

economic

leverage

in

the

Fund’s

portfolio

which

may

result

in

significant

volatility

and

cause

the

Fund

to

participate

in

losses

(as

well

as

gains)

in

an

amount

that

significantly

exceeds

the

Fund’s

initial

investment.

A

merger

or

other

restructuring,

or

a

tender

or

exchange

offer,

proposed

or

pending

at

the

time

the

Fund

invests

in

merger

arbitrage

securities

may

not

be

completed

on

the

terms

or

within

the

time

frame

contemplated,

which

may

result

in

losses

to

the

Fund.

Debt

obligations

of

distressed

companies

typically

are

unrated,

lower-rated,

in

default

or

close

to

default

and

are

generally

more

likely

to

become

worthless

than

the

securities

of

more

financially

stable

companies.

To

the

extent

that

the

Fund

focuses

on

particular

countries,

regions,

industries,

sectors

or

types

of

investment

from

time

to

time,

the

Fund

may

be

subject

to

greater

risks

of

adverse

developments

in

such

areas

of

focus

than

a

fund

that

invests

in

a

wider

variety

of

countries,

regions,

industries,

sectors

or

investments.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia's

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia's

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

benchmark,

the

MSCI

World

Value

Index-NR

(USD),

posted

a

-20.51%

total

return

for

the

period

under

review.

1

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

-20.18%

total

return

for

the

six

months

ended

June

30,

2022.

1

The

combination

of

resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

many

countries.

This

inflationary

pressure

led

many

of

the

1.

Source:

Morningstar.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

Franklin

Mutual

Global

Discovery

VIP

Fund

MGD-3

Semiannual

Report

world’s

central

banks

to

adopt

less

accommodative

stances

regarding

monetary

policy.

The

Chinese

government’s

imposition

of

new

lockdowns

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

pressured

Asian

and

global

emerging

market

stocks.

Russia’s

invasion

of

Ukraine

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

constrained

companies

that

do

business

with

Russia

and

disrupted

global

economic

activity

and

commodity

markets.

In

the

U.S.,

gross

domestic

product

(GDP)

growth

turned

negative

in

the

first

quarter

of

2022

as

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

the

economy.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings,

and

anticipated

instituting

further

interest

rate

increases

at

future

meetings.

Economic

growth

in

the

eurozone

maintained

a

slow

rate

in

the

first

quarter

of

2022

as

the

war

in

Ukraine

disrupted

supply

chains,

sent

commodity

prices

higher,

and

weakened

the

economic

outlook.

The

war

in

Ukraine

contributed

to

record

high

inflation

across

the

eurozone

as

commodity

and

oil

prices

soared.

The

European

Central

Bank

indicated

it

will

raise

interest

rates

in

July,

the

first

increase

in

more

than

a

decade,

to

fight

growing

inflation.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-20.79%

total

return

for

the

six

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-17.69%

total

return

for

the

six-month

period.

1

While

many

Asian

countries

experienced

improving

economic

conditions,

Japan’s

GDP

contracted

in

the

first

quarter

of

2022

after

having

returned

to

growth

in

the

fourth

quarter

of

2021.

Although

China’s

economy

continued

to

grow,

it

was

pressured

by

coronavirus-related

restrictions

and

government

measures

to

limit

real

estate

speculation.

Unexpected

regulatory

changes

by

the

Chinese

government,

which

negatively

impacted

education-

and

technology-

related

businesses,

and

investor

concerns

about

the

solvency

of

several

large

Chinese

property

developers

further

pressured

Chinese

stocks.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-17.63%

total

return

for

the

six

months

under

review.

1

Following

Russia’s

invasion

of

Ukraine,

climbing

food

and

energy

prices

kindled

inflationary

pressures

and

raised

concerns

over

the

possibility

of

government

debt

defaults

in

some

countries.

Meanwhile,

some

countries,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

have

benefited

from

the

rising

commodity

prices.

Investment

Strategy

At

Franklin

Mutual

Advisors,

we

are

committed

to

our

distinctive

value

approach

to

investing.

Our

major

investment

strategy

is

investing

in

undervalued

stocks.

When

selecting

undervalued

equities,

we

are

attracted

to

what

we

believe

Geographic

Composition

6/30/22

%

of

Total

Net

Assets

United

States

49.3%

Germany

11.5%

France

9.7%

United

Kingdom

6.7%

Netherlands

4.3%

Japan

3.2%

Switzerland

2.4%

Israel

2.1%

Spain

2.0%

Ireland

1.7%

China

1.4%

South

Korea

1.2%

Other

1.3%

Short-Term

Investments

&

Other

Net

Assets

3.2%

Top

10

Industries

6/30/22

%

of

Total

Net

Assets

a

Banks

8.4%

Insurance

7.5%

Health

Care

Providers

&

Services

7.5%

Pharmaceuticals

7.4%

IT

Services

5.1%

Oil,

Gas

&

Consumable

Fuels

4.3%

Food

Products

4.1%

Technology

Hardware,

Storage

&

Peripherals

3.7%

Entertainment

3.5%

Machinery

3.2%

Franklin

Mutual

Global

Discovery

VIP

Fund

MGD-4

Semiannual

Report

are

fundamentally

strong

companies

with

healthy

balance

sheets,

high-quality

assets,

substantial

free

cash

flow

and

shareholder-oriented

management

teams

and

whose

stocks

are

trading

at

discounts

to

our

assessment

of

the

companies’

intrinsic

or

business

value.

We

also

look

for

asset-rich

companies

whose

shares

may

be

trading

at

depressed

levels

due

to

concerns

over

short-term

earnings

disappointments,

litigation,

management

strategy

or

other

perceived

negatives.

While

the

vast

majority

of

our

undervalued

equity

and

debt

investments

are

made

in

publicly

traded

companies

globally,

we

may

invest

occasionally

in

privately

held

companies

as

well.

We

complement

this

more

traditional

investment

strategy

with

two

others.

One

is

distressed

investing,

which

is

complex

and

can

take

many

forms.

The

most

common

distressed

investment

the

Fund

undertakes

is

the

purchase

of

financially

troubled

or

bankrupt

companies’

debt

at

a

substantial

discount

to

face

value.

After

the

financially

distressed

company

is

reorganized,

often

in

bankruptcy

court,

the

old

debt

is

typically

replaced

with

new

securities

issued

by

the

financially

stronger

company.

The

other

piece

of

our

investment

strategy

is

participating

in

arbitrage

situations,

another

highly

specialized

field.

When

companies

announce

proposed

mergers

or

takeovers,

commonly

referred

to

as

deals,

the

target

company

may

trade

at

a

discount

to

the

bid

it

ultimately

accepts.

One

form

of

arbitrage

involves

purchasing

the

target

company’s

stock

when

it

is

trading

below

the

value

we

believe

it

would

receive

in

a

deal.

In

keeping

with

our

commitment

to

a

relatively

conservative

investment

approach,

we

typically

focus

our

arbitrage

efforts

on

announced

deals,

and

eschew

rumored

deals

or

other

situations

we

consider

relatively

risky.

In

addition,

it

is

our

practice

to

hedge

the

Fund’s

currency

exposure

when

we

deem

it

advantageous

for

our

shareholders.

Manager’s

Discussion

During

the

six-month

review

period,

the

Fund

fared

better

than

its

benchmark,

as

stock

selection

in

the

financials,

consumer

staples

and

information

technology

sectors

contributed

to

relative

returns.

Conversely,

security

selection

in

the

materials,

industrials

and

communication

services

sectors

detracted

from

relative

performance.

Top

positive

contributors

to

performance

during

the

six-

month

period

included

Deutsche

Telekom,

Williams

and

Canadian

Natural

Resources

(not

held

at

period-end).

Deutsche

Telekom

(DT)

supported

relative

returns,

following

press

reports

about

multiple

bidders

for

its

German

tower

business

and

a

solid

earnings

report

through

which

the

company

raised

its

outlook

for

the

year.

We

believe

a

significant

improvement

in

free

cash

flow

generation

at

T-Mobile,

DT’s

U.S.

subsidiary,

following

the

completion

of

its

integration

of

Sprint

will

further

support

DT

shares

in

the

coming

quarters.  

Energy

infrastructure

company

Williams

was

a

significant

relative

contributor,

amid

improving

investor

sentiment

toward

the

energy

sector.

Greater

appreciation

of

both

continued

growth

prospects

and

the

strong

contribution

Williams’

assets

can

make

to

decarbonization

also

benefited

the

company’s

share

price

performance.

Additionally,

Williams

stands

to

benefit

from

an

expected

increase

in

liquid

natural

gas

exports

from

the

U.S.

as

efforts

to

reduce

Europe’s

reliance

on

Russian

gas

take

hold.

Williams

generates

good

free

cash

flow,

financial

results

tend

to

be stable, and it

is

our

opinion

the

reinvestment

opportunities

have

been

underappreciated.

Canadian

Natural

Resources,

an

oil

and

gas

company,

bolstered

relative

performance

during

the

period

as

rising

oil

prices

supported

the

sector.

The

company

further

benefited

from

a

robust

quarterly

earnings

report

and

news

it

was

raising

its

dividend

significantly.

Canadian

Natural

Resources

generates

significant

amounts

of

excess

free

cash

flow

and

is

highly

disciplined

with

its

capital.

Its

carbon

footprint also is

improving

faster

than generally

perceived. 

Top

10

Holdings

6/30/22

Company

Industry

,

Country

%

of

Total

Net

Assets

A

a

Deutsche

Telekom

AG

3.0%

Diversified

Telecommunication

Services,

Germany

BP

plc

2.8%

Oil,

Gas

&

Consumable

Fuels,

United

Kingdom

Charter

Communications,

Inc.

2.6%

Media,

United

States

GSK

plc

2.5%

Pharmaceuticals,

United

States

Novartis

AG

2.4%

Pharmaceuticals,

Switzerland

NN

Group

NV

2.2%

Insurance,

Netherlands

Kraft

Heinz

Co.

(The)

2.2%

Food

Products,

United

States

Voya

Financial,

Inc.

2.1%

Diversified

Financial

Services,

United

States

Merck

&

Co.,

Inc.

2.1%

Pharmaceuticals,

United

States

Humana,

Inc.

2.1%

Health

Care

Providers

&

Services,

United

States

Franklin

Mutual

Global

Discovery

VIP

Fund

MGD-5

Semiannual

Report

During

the

six-month

period,

investments

that

detracted

from

Fund

performance

included

General

Motors,

Johnson

Controls

International

and

Covestro.

General

Motors

curbed

relative

performance

during

the

period

due

to

management

changes

at

its

Cruise

autonomous

vehicle

business,

and

concerns

about

commodity

inflation

and

the

economy.

Nonetheless,

we

believe

the

company’s

financial

results

were

solid,

with

profitability

remaining

strong

despite

commodity

inflation

and

increased

investments

in

electric

vehicles.

Johnson

Controls

International

hindered

relative

returns

following

its

second-quarter

earnings

report.

The

company

posted

solid

top-line

execution,

weaker

margins

due

to

supply

chain

disruptions

and

an

inline

earnings

per

share

figure

resulting

from

higher

profits

and

a

lower

share

count.

Management

continues

to

see

improved

underlying

trends

and

is

encouraged

by

the

pace

of

order

growth

but

given

the

pace

of

the

backlog

conversion

due

to

supply

chain

issues,

Johnson

Controls

was

forced

to

cut

full-year

guidance.

German

chemicals

company

Covestro

detracted

from

relative

performance,

amid

concerns

about

higher

energy

costs

in

Europe,

the

potential

for

reduced

gas

supplies,

weaker

demand

in

a

recessionary

scenario,

and

the

negative

impact

from

supply

chain

disruptions

in

China

during

lockdowns

this

spring.

We

believe

the

energy

cost

and

gas

supply

situation

should

be

manageable,

even

in

a

negative

outcome,

and

China’s

lockdowns

were

temporary.

Although

a

recession

would

certainly

hurt

demand

for

some

of

Covestro’s

products,

we

believe

there

would

be

offsets

in

the

form

of

greater

investment

in

insulation

to

conserve

energy,

and

light-weighting

of

vehicles,

and

that

a

negative

scenario

is

already

factored

into

the

share

price.

During

the

period,

the

Fund

held

currency

forwards

and

futures,

seeking

to

hedge

a

significant

portion

of

the

currency

risk

in

the

portfolio.

The

hedges

had

a

positive

overall

impact

on

the

Fund’s

performance

as

the

dollar

rose

against

most

currencies

during

the

period.

Thank

you

for

your

participation

in

Franklin

Mutual

Global

Discovery

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Class

1

Fund

Expenses

Franklin

Mutual

Global

Discovery

VIP

Fund

MGD-6

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

any

ongoing

expenses

of

the

Contract

for

which

the

Fund

is

an

investment

option

or

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

1

$1,000

$906.50

$4.46

$1,020.12

$4.73

0.95

%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Mutual

Global

Discovery

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

MGD-7

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$20.32

$17.50

$19.17

$17.47

$20.38

$20.22

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.27

0.25

0.57

c

0.43

0.36

0.47

Net

realized

and

unrealized

gains

(losses)

(2.17)

3.14

(1.52)

3.64

(2.50)

1.29

Total

from

investment

operations

........

(1.90)

3.39

(0.95)

4.07

(2.14)

1.76

Less

distributions

from:

Net

investment

income

..............

—

(0.57)

(0.42)

(0.37)

(0.52)

(0.42)

Net

realized

gains

.................

—

—

(0.30)

(2.00)

(0.25)

(1.18)

Total

distributions

...................

—

(0.57)

(0.72)

(2.37)

(0.77)

(1.60)

Net

asset

value,

end

of

period

..........

$18.42

$20.32

$17.50

$19.17

$17.47

$20.38

Total

return

d

.......................

(9.35)%

19.43%

(4.22)%

24.71%

(11.01)%

8.99%

Ratios

to

average

net

assets

e

Expenses

f,g,h

.......................

0.95%

0.98%

0.97%

0.94%

0.96%

1.01%

Expenses

-

incurred

in

connection

with

securities

sold

short

.................

—%

i

0.02%

0.01%

0.02%

0.01%

—%

Net

investment

income

...............

2.72%

1.29%

3.57%

c

2.22%

1.81%

2.29%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,665

$4,166

$3,788

$3,878

$3,282

$3,189

Portfolio

turnover

rate

................

33.51%

41.58%

34.79%

21.82%

29.84%

17.49%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.24

per

share

related

to

income

received

in

the

form

of

special

dividends

and

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

2.07%.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Prod-

ucts

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

i

Rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MGD-8

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.61

$16.91

$18.54

$16.96

$19.80

$19.69

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.24

0.20

0.51

c

0.37

0.30

0.41

Net

realized

and

unrealized

gains

(losses)

(2.09)

3.02

(1.47)

3.53

(2.42)

1.25

Total

from

investment

operations

........

(1.85)

3.22

(0.96)

3.90

(2.12)

1.66

Less

distributions

from:

Net

investment

income

..............

—

(0.52)

(0.37)

(0.32)

(0.47)

(0.37)

Net

realized

gains

.................

—

—

(0.30)

(2.00)

(0.25)

(1.18)

Total

distributions

...................

—

(0.52)

(0.67)

(2.32)

(0.72)

(1.55)

Net

asset

value,

end

of

period

..........

$17.76

$19.61

$16.91

$18.54

$16.96

$19.80

Total

return

d

.......................

(9.43)%

19.13%

(4.46)%

24.37%

(11.22)%

8.71%

Ratios

to

average

net

assets

e

Expenses

f,g,h

.......................

1.20%

1.22%

1.22%

1.19%

1.21%

1.26%

Expenses

-

incurred

in

connection

with

securities

sold

short

.................

—%

i

0.02%

0.01%

0.02%

0.01%

—%

Net

investment

income

...............

2.45%

1.05%

3.33%

c

1.97%

1.56%

2.04%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$403,108

$477,214

$467,653

$539,759

$500,607

$631,179

Portfolio

turnover

rate

................

33.51%

41.58%

34.79%

21.82%

29.84%

17.49%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.24

per

share

related

to

income

received

in

the

form

of

special

dividends

and

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.83%.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Prod-

ucts

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

i

Rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

MGD-9

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$20.12

$17.34

$18.98

$17.30

$20.17

$20.02

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.23

0.19

0.51

c

0.36

0.29

0.40

Net

realized

and

unrealized

gains

(losses)

(2.14)

3.09

(1.50)

3.61

(2.47)

1.27

Total

from

investment

operations

........

(1.91)

3.28

(0.99)

3.97

(2.18)

1.67

Less

distributions

from:

Net

investment

income

..............

—

(0.50)

(0.35)

(0.29)

(0.44)

(0.34)

Net

realized

gains

.................

—

—

(0.30)

(2.00)

(0.25)

(1.18)

Total

distributions

...................

—

(0.50)

(0.65)

(2.29)

(0.69)

(1.52)

Net

asset

value,

end

of

period

..........

$18.21

$20.12

$17.34

$18.98

$17.30

$20.17

Total

return

d

.......................

(9.49)%

18.98%

(4.54)%

24.28%

(11.31)%

8.61%

Ratios

to

average

net

assets

e

Expenses

f,g,h

.......................

1.29%

1.32%

1.32%

1.29%

1.31%

1.36%

Expenses

-

incurred

in

connection

with

securities

sold

short

.................

—%

i

0.02%

0.01%

0.02%

0.01%

—%

Net

investment

income

...............

2.33%

0.95%

3.22%

c

1.87%

1.46%

1.94%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$21,226

$25,930

$26,688

$30,865

$30,094

$41,713

Portfolio

turnover

rate

................

33.51%

41.58%

34.79%

21.82%

29.84%

17.49%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.24

per

share

related

to

income

received

in

the

form

of

special

dividends

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.72%.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Prod-

ucts

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

i

Rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Mutual

Global

Discovery

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MGD-10

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

95.0%

Aerospace

&

Defense

1.5%

Airbus

SE

...........................................

France

64,119

$

6,271,173

Auto

Components

1.1%

Cie

Generale

des

Etablissements

Michelin

SCA

..............

France

176,536

4,821,140

a,b,c

International

Automotive

Components

Group

Brazil

LLC

........

Brazil

424,073

9,971

4,831,111

Automobiles

1.5%

b

General

Motors

Co.

....................................

United

States

208,865

6,633,552

Banks

8.4%

BNP

Paribas

SA

......................................

France

186,364

8,913,732

CaixaBank

SA

........................................

Spain

2,464,866

8,631,680

First

Horizon

Corp.

....................................

United

States

125,693

2,747,649

ING

Groep

NV

.......................................

Netherlands

889,714

8,764,693

Wells

Fargo

&

Co.

.....................................

United

States

179,033

7,012,723

36,070,477

Building

Products

1.8%

Johnson

Controls

International

plc

.........................

United

States

163,437

7,825,364

Capital

Markets

2.0%

BlackRock,

Inc.

.......................................

United

States

14,021

8,539,350

Chemicals

1.5%

d

Covestro

AG,

144A,

Reg

S

..............................

Germany

188,300

6,542,868

Construction

Materials

1.4%

HeidelbergCement

AG

.................................

Germany

119,784

5,783,051

Diversified

Financial

Services

2.1%

e

Voya

Financial,

Inc.

....................................

United

States

153,889

9,161,012

Diversified

Telecommunication

Services

3.0%

Deutsche

Telekom

AG

..................................

Germany

637,266

12,674,144

Electrical

Equipment

1.6%

Mitsubishi

Electric

Corp.

................................

Japan

627,151

6,740,102

Energy

Equipment

&

Services

1.7%

Baker

Hughes

Co.

.....................................

United

States

259,507

7,491,967

Entertainment

3.5%

Activision

Blizzard,

Inc.

.................................

United

States

104,758

8,156,458

b

Walt

Disney

Co.

(The)

..................................

United

States

72,701

6,862,974

15,019,432

Food

Products

4.1%

Danone

SA

..........................................

France

143,437

8,032,403

Kraft

Heinz

Co.

(The)

..................................

United

States

247,788

9,450,634

17,483,037

Health

Care

Equipment

&

Supplies

2.1%

Medtronic

plc

........................................

United

States

98,818

8,868,916

Health

Care

Providers

&

Services

7.5%

CVS

Health

Corp.

.....................................

United

States

93,660

8,678,536

Elevance

Health,

Inc.

..................................

United

States

14,607

7,049,046

Fresenius

SE

&

Co.

KGaA

...............................

Germany

238,482

7,252,306

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

MGD-11

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Health

Care

Providers

&

Services

(continued)

Humana,

Inc.

........................................

United

States

19,116

$

8,947,626

31,927,514

Household

Durables

1.8%

DR

Horton,

Inc.

.......................................

United

States

118,128

7,818,892

Household

Products

1.8%

Reckitt

Benckiser

Group

plc

.............................

United

Kingdom

103,398

7,775,519

Independent

Power

and

Renewable

Electricity

Producers

1.2%

RWE

AG

............................................

Germany

135,132

4,997,761

Industrial

Conglomerates

1.4%

Siemens

AG

.........................................

Germany

57,790

5,940,326

Insurance

7.5%

China

Pacific

Insurance

Group

Co.

Ltd.,

H

...................

China

2,444,544

6,003,780

Everest

Re

Group

Ltd.

.................................

United

States

29,259

8,200,713

NN

Group

NV

........................................

Netherlands

211,643

9,585,464

Willis

Towers

Watson

plc

................................

United

States

42,527

8,394,405

32,184,362

Internet

&

Direct

Marketing

Retail

1.2%

eBay,

Inc.

...........................................

United

States

124,378

5,182,831

IT

Services

5.1%

Capgemini

SE

........................................

France

40,896

7,052,593

b

Fiserv,

Inc.

..........................................

United

States

66,605

5,925,847

Global

Payments,

Inc.

..................................

United

States

79,676

8,815,352

21,793,792

Machinery

3.2%

Alstom

SA

...........................................

France

284,554

6,497,351

Parker-Hannifin

Corp.

..................................

United

States

28,431

6,995,447

13,492,798

Media

2.6%

b

Charter

Communications,

Inc.,

A

..........................

United

States

23,404

10,965,476

Metals

&

Mining

0.5%

Rio

Tinto

plc

.........................................

Australia

35,992

2,151,487

Oil,

Gas

&

Consumable

Fuels

4.3%

BP

plc

..............................................

United

Kingdom

2,551,971

11,980,798

Williams

Cos.,

Inc.

(The)

................................

United

States

202,478

6,319,339

18,300,137

Pharmaceuticals

7.0%

GSK

plc

............................................

United

States

491,591

10,592,832

Merck

&

Co.,

Inc.

.....................................

United

States

99,870

9,105,148

Novartis

AG,

ADR

.....................................

Switzerland

120,956

10,224,411

29,922,391

Real

Estate

Management

&

Development

1.5%

b

CBRE

Group,

Inc.,

A

...................................

United

States

85,550

6,297,336

Semiconductors

&

Semiconductor

Equipment

2.1%

b

Renesas

Electronics

Corp.

..............................

Japan

751,901

6,802,968

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MGD-12

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Semiconductors

&

Semiconductor

Equipment

(continued)

b

Tower

Semiconductor

Ltd.

...............................

Israel

50,822

$

2,346,960

9,149,928

Software

1.5%

b

Avaya

Holdings

Corp.

..................................

United

States

4

9

b

Check

Point

Software

Technologies

Ltd.

....................

Israel

53,416

6,505,000

6,505,009

Technology

Hardware,

Storage

&

Peripherals

3.7%

Catcher

Technology

Co.

Ltd.

.............................

Taiwan

606,612

3,384,605

Samsung

Electronics

Co.

Ltd.

............................

South

Korea

120,441

5,351,531

b

Western

Digital

Corp.

..................................

United

States

157,314

7,052,387

15,788,523

Tobacco

2.1%

British

American

Tobacco

plc

.............................

United

Kingdom

208,361

8,929,775

Trading

Companies

&

Distributors

1.7%

b

AerCap

Holdings

NV

...................................

Ireland

177,592

7,270,617

Total

Common

Stocks

(Cost

$384,300,266)

.....................................

406,330,030

Preferred

Stocks

1.4%

Automobiles

1.4%

f

Volkswagen

AG,

5.88%

.................................

Germany

44,653

6,011,781

Total

Preferred

Stocks

(Cost

$7,606,692)

.......................................

6,011,781

Warrants

Warrants

0.0%

†

Software

0.0%

†

b

Avaya

Holdings

Corp.,

12/15/22

..........................

United

States

3,613

190

Total

Warrants

(Cost

$–)

......................................................

190

Principal

Amount

*

Corporate

Bonds

0.4%

Pharmaceuticals

0.4%

d

Bausch

Health

Americas,

Inc.

,

Senior

Note,

144A,

9.25%,

4/01/26

......................

United

States

1,707,000

1,225,208

Senior

Note,

144A,

8.5%,

1/31/27

.......................

United

States

784,000

551,661

d

Bausch

Health

Cos.,

Inc.

,

Senior

Note

,

144A,

9

%

,

12/15/25

......

United

States

65,000

48,203

1,825,072

Total

Corporate

Bonds

(Cost

$2,591,747)

.......................................

1,825,072

Shares

a

Companies

in

Liquidation

0.0%

a,b,g

Walter

Energy,

Inc.,

Litigation

Trust,

Contingent

Distribution

......

United

States

966,000

—

Total

Companies

in

Liquidation

(Cost

$–)

......................................

—

Total

Long

Term

Investments

(Cost

$394,498,705)

...............................

414,167,073

a

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

MGD-13

Short

Term

Investments

0.7%

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

U.S.

Government

and

Agency

Securities

0.7%

h

FHLB,

7/01/22

.......................................

United

States

2,200,000

$

2,200,000

h

U.S.

Treasury

Bills,

7/12/22

..............................

United

States

1,000,000

999,708

Total

U.S.

Government

and

Agency

Securities

(Cost

$3,199,765)

..................

3,199,708

i

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.0%

†

Repurchase

Agreements

0.0%

†

j

Joint

Repurchase

Agreement,

J.P.

Morgan

Securities

LLC,

1.48%,

7/01/22

(Maturity

Value

$25)

Collateralized

by

U.S.

Treasury

Notes,

0.5%,

4/30/27

-

5/31/27

(valued

at

$26)

......................................

25

25

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$25)

..................................................................

25

Total

Short

Term

Investments

(Cost

$3,199,790

)

.................................

3,199,733

a

Total

Investments

(Cost

$397,698,495)

97.5%

...................................

$417,366,806

Other

Assets,

less

Liabilities

2.5%

.............................................

10,632,328

Net

Assets

100.0%

...........................................................

$427,999,134

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Fair

valued

using

significant

unobservable

inputs.

See

Note

14

regarding

fair

value

measurements.

b

Non-income

producing.

c

See

Note

11

regarding

restricted

securities.

d

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2022,

the

aggregate

value

of

these

securities

was

$8,367,940,

representing

2.0%

of

net

assets.

e

A

portion

or

all

of

the

security

is

on

loan

at

June

30,

2022.

See

Note

1(f).

f

Variable

rate

security.

The

rate

shown

represents

the

yield

at

period

end.

g

Contingent

distributions

represent

the

right

to

receive

additional

distributions,

if

any,

during

the

reorganization

of

the

underlying

company.

Shares

represent

total

underlying

principal

of

debt

securities.

h

The

security

was

issued

on

a

discount

basis

with

no

stated

coupon

rate.

i

See

Note

1(f)

regarding

securities

on

loan.

j

See

Note

1(e)

regarding

joint

repurchase

agreement.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MGD-14

At

June

30,

2022,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1(c). 

At

June

30,

2022,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(c)

. 

See

Note 

12

 regarding

other

derivative

information.

See

Abbreviations

on

page

MGD-32.

Futures

Contracts

Description

Type

Number

of

Contracts

Notional

Amount

*

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Foreign

exchange

contracts

Foreign

Exchange

EUR/USD

...................

Short

94

$

12,382,150

9/19/22

$

272,671

Foreign

Exchange

GBP/USD

...................

Short

13

991,169

9/19/22

25,237

Total

Futures

Contracts

......................................................................

$297,908

*

As

of

period

end.

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

Swiss

Franc

.......

BOFA

Buy

596,485

655,614

7/20/22

$

—

$

(30,095)

Swiss

Franc

.......

HSBK

Buy

3,988,045

4,353,892

7/20/22

—

(171,729)

Swiss

Franc

.......

HSBK

Sell

7,091,004

7,784,142

7/20/22

347,983

—

Swiss

Franc

.......

UBSW

Buy

2,506,473

2,738,423

7/20/22

—

(109,946)

Euro

.............

BOFA

Buy

8,567,783

9,177,392

7/25/22

9,247

(196,263)

Euro

.............

BOFA

Sell

1,776,694

1,959,057

7/25/22

94,731

—

Euro

.............

HSBK

Buy

6,122,628

6,604,737

7/25/22

1,887

(182,009)

Euro

.............

HSBK

Sell

28,699,746

32,636,814

7/25/22

2,521,503

—

Euro

.............

SSBT

Buy

3,567,382

3,896,592

7/25/22

—

(153,253)

Euro

.............

SSBT

Sell

265,839

295,968

7/25/22

17,016

—

Euro

.............

UBSW

Buy

7,672,046

8,266,509

7/25/22

—

(216,054)

Euro

.............

UBSW

Sell

29,515,488

33,534,729

7/25/22

2,563,440

—

British

Pound

......

BOFA

Buy

708,770

911,253

8/15/22

—

(47,939)

British

Pound

......

BOFA

Sell

1,732,598

2,260,625

8/15/22

150,241

—

British

Pound

......

HSBK

Sell

1,732,598

2,260,963

8/15/22

150,578

—

British

Pound

......

UBSW

Buy

679,913

849,635

8/15/22

—

(21,471)

New

Taiwan

Dollar

..

HSBK

Sell

50,523,304

1,715,853

9/30/22

4,867

—

New

Taiwan

Dollar

..

UBSW

Sell

49,870,982

1,691,717

9/30/22

2,822

—

South

Korean

Won

..

HSBK

Buy

460,686,825

357,174

11/14/22

1,680

—

South

Korean

Won

..

HSBK

Sell

5,162,149,967

4,035,827

11/14/22

24,676

(9,926)

South

Korean

Won

..

UBSW

Sell

447,389,608

350,524

11/14/22

2,658

(630)

Japanese

Yen

......

UBSW

Sell

886,275,771

6,941,057

11/18/22

331,992

—

Total

Forward

Exchange

Contracts

...................................................

$6,225,321

$(1,139,315)

Net

unrealized

appreciation

(depreciation)

............................................

$5,086,006

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

MGD-15

Franklin

Mutual

Global

Discovery

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$397,698,470

Cost

-

Unaffiliated

repurchase

agreements

......................................................

25

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$7,435,297)

.................................

$417,366,781

Value

-

Unaffiliated

repurchase

agreements

......................................................

25

Cash

....................................................................................

4,775,846

Foreign

currency,

at

value

(cost

$309,525)

........................................................

309,525

Receivables:

Investment

securities

sold

...................................................................

659,942

Capital

shares

sold

........................................................................

6,262

Dividends

and

interest

.....................................................................

1,054,118

European

Union

tax

reclaims

(Note

1

g

)

.........................................................

1,048,085

Deposits

with

brokers

for:

Futures

contracts

........................................................................

263,010

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

6,225,321

Other

assets

..............................................................................

166,974

Total

assets

..........................................................................

431,875,889

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

1,308,184

Capital

shares

redeemed

...................................................................

487,265

Management

fees

.........................................................................

321,514

Distribution

fees

..........................................................................

93,597

Trustees'

fees

and

expenses

.................................................................

499

Variation

margin

on

futures

contracts

...........................................................

48,594

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

1,139,315

Payable

upon

return

of

securities

loaned

(Note

1

f

)

..................................................

25

Accrued

expenses

and

other

liabilities

...........................................................

477,762

Total

liabilities

.........................................................................

3,876,755

Net

assets,

at

value

.................................................................

$427,999,134

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$315,840,703

Total

distributable

earnings

(losses)

.............................................................

112,158,431

Net

assets,

at

value

.................................................................

$427,999,134

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MGD-16

Franklin

Mutual

Global

Discovery

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$3,664,501

Shares

outstanding

........................................................................

198,927

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$18.42

Class

2:

Net

assets,

at

value

.......................................................................

$403,108,331

Shares

outstanding

........................................................................

22,695,345

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$17.76

Class

4:

Net

assets,

at

value

.......................................................................

$21,226,302

Shares

outstanding

........................................................................

1,165,562

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$18.21

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

MGD-17

Franklin

Mutual

Global

Discovery

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$938,499)

Unaffiliated

issuers

........................................................................

$8,493,446

Interest:

Unaffiliated

issuers

........................................................................

78,442

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

4,192

Non-controlled

affiliates

(Note

3

e

)

.............................................................

830

Other

income

(Note

1

g

)

......................................................................

183,293

Total

investment

income

...................................................................

8,760,203

Expenses:

Management

fees

(Note

3

a

)

...................................................................

2,105,722

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

566,248

    Class

4

................................................................................

42,512

Custodian

fees

(Note

4

)

......................................................................

11,608

Reports

to

shareholders

fees

..................................................................

27,243

Professional

fees

...........................................................................

67,156

Trustees'

fees

and

expenses

..................................................................

2,735

Dividends

on

securities

sold

short

..............................................................

5,441

Other

....................................................................................

55,057

Total

expenses

.........................................................................

2,883,722

Expense

reductions

(Note

4

)

...............................................................

(54)

Expenses

waived/paid

by

affiliates

(Not

e

3e)

...................................................

(4,480)

Net

expenses

.........................................................................

2,879,188

Net

investment

income

................................................................

5,881,015

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

37,237,052

Foreign

currency

transactions

................................................................

(201,143)

Forward

exchange

contracts

.................................................................

3,440,440

Futures

contracts

.........................................................................

1,238,909

Securities

sold

short

.......................................................................

(2,003,645)

Net

realized

gain

(loss)

..................................................................

39,711,613

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(98,504,341)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(56,747)

Forward

exchange

contracts

.................................................................

3,505,591

Futures

contracts

.........................................................................

530,493

Securities

sold

short

.......................................................................

3,495,780

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(91,029,224)

Net

realized

and

unrealized

gain

(loss)

............................................................

(51,317,611)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(45,436,596)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MGD-18

Franklin

Mutual

Global

Discovery

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

incom

e

.................................................

$5,881,015

$5,398,915

Net

realized

gain

(loss)

.................................................

39,711,613

65,601,434

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(91,029,224)

19,012,410

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(45,436,596)

90,012,759

Distributions

to

shareholders:

Class

1

.............................................................

—

(112,415)

Class

2

.............................................................

—

(12,672,652)

Class

4

.............................................................

—

(650,689)

Total

distributions

to

shareholders

..........................................

—

(13,435,756)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

(121,832)

(216,018)

Class

2

.............................................................

(31,320,698)

(62,330,624)

Class

4

.............................................................

(2,431,203)

(4,849,570)

Total

capital

share

transactions

............................................

(33,873,733)

(67,396,212)

Net

increase

(decrease)

in

net

assets

...................................

(79,310,329)

9,180,791

Net

assets:

Beginning

of

period

.....................................................

507,309,463

498,128,672

End

of

period

..........................................................

$427,999,134

$507,309,463

Franklin

Templeton

Variable

Insurance

Products

Trust

MGD-19

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

Franklin

Mutual

Global

Discovery

VIP

Fund

1.

Organization

and

Significant

Accounting

Policies

Franklin

Templeton

Variable

Insurance

Products

Trust

(Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen

separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Mutual

Global

Discovery

VIP

Fund

(Fund)

is

included

in

this

report.

Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

At

June

30,

2022,

44.2%

of

the

Fund's

shares

were

held

through

one

insurance

company.

Investment

activities

of

these

insurance

company

separate

accounts

could

have

a

material

impact

on

the

Fund.

The

Fund

offers

three

classes

of

shares:

Class

1,

Class

2

and

Class

4.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege.  

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities,

exchange

traded

funds

and

derivative

financial

instruments

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-

counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Debt

securities

generally

trade

in

the OTC

market

rather

than

on

a

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

Certain

derivative

financial

instruments

are

centrally

cleared

or

trade

in

the

OTC

market.

The

Fund's

pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

fair

value

of

those

instruments.

The

Fund's

net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MGD-20

Semiannual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day. Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time. In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Derivative

Financial

Instruments

The

Fund invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statement

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statement

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

The

Fund

attempts

to

reduce

its

exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MGD-21

Semiannual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the

Fund

include

failure

of

the

Fund

to

maintain

certain

net

asset

levels

and/or

limit

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Fund

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

or

initial

margin

requirements

are

set

by

the

broker

or

exchange

clearing

house

for

exchange

traded

and

centrally

cleared

derivatives.

Initial

margin

deposited

is

held

at

the

exchange

and

can

be

in

the

form

of

cash

and/or

securities.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund

for

OTC

derivatives,

if

any,

is

held

in

segregated

accounts

with

the

Fund's

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Fund's

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

The

Fund

entered

into

exchange

traded

futures

contracts

primarily

to

manage

and/or

gain

exposure

to

interest

rate

and

equity

price

risk.

A

futures

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

an

asset

at

a

specified

price

on

a

future

date.

Required

initial

margins

are

pledged

by

the

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the

Statement

of

Assets

and

Liabilities

.

The

Fund entered

into

OTC

forward

exchange

contracts

primarily

to

manage

and/or

gain

exposure

to

certain

foreign

currencies.

A

forward

exchange

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

foreign

currency at

a

specific

exchange

rate

on

a

future

date.

See

Note

12

regarding

other

derivative

information.

d.

Securities

Sold

Short

The

Fund

is

engaged

in

selling

securities

short,

which

obligates

the

Fund

to

replace

a

borrowed

security

with

the

same

security

at

current

fair

value.

The

Fund

incurs

a

loss

if

the

price

of

the

security

increases

between

the

date

of

the

short

sale

and

the

date

on

which

the

Fund

replaces

the

borrowed

security.

The

Fund

realizes

a

gain

if

the

price

of

the

security

declines

between

those

dates.

Gains

are

limited

to

the

price

at

which

the

Fund

sold

the

security

short,

while

losses

are

potentially

unlimited

in

size.

The

Fund

is

required

to

establish

a

margin

account

with

the

broker

lending

the

security

sold

short.

While

the

short

sale

is

outstanding,

the

broker

retains

the

proceeds

of

the

short

sale

to

the

extent

necessary

to

meet

margin

requirements

until

the

short

position

is

closed

out.

A

deposit

must

also

be

maintained

with

the

Fund's

custodian/counterparty

broker

consisting

of

cash

and/or

securities

having

a

value

equal

to

a

specified

percentage

of

the

value

of

the

securities

sold

short.

The

Fund

is

obligated

to

pay

fees

for

borrowing

the

securities

sold

short

and

is

required

to

pay

the

counterparty

any

dividends

and/or

interest

due

on

securities

sold

short.

Such

dividends

and/or

interest

and

any

security

borrowing

fees

are

recorded

as

an

expense

to

the

Fund.

At

June

30,

2022,

the

Fund

had

no

securities

sold

short.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Derivative

Financial

Instruments

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MGD-22

Semiannual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

e.

Joint

Repurchase

Agreement

The

Fund

enters

into

a

joint

repurchase

agreement

whereby

its

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Fund's

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Fund,

certain

MRAs

may

permit

the

non-

defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Fund

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Fund

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the Fund

at

period

end,

as

indicated

in

the

Statement

of

Investments,

had

been

entered

into

on

June

30,

2022.

f.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the Fund,

and/or

a

joint

repurchase

agreement.

Additionally,

the

Fund

received

$7,636,319

in

U.S.

Government

and

Agency

securities

as

collateral.

These

securities

are

held

as

collateral

in

segregated

accounts

with

the

Fund’s

custodian.

The

Fund

cannot

repledge

or

resell

these

securities

held

as

collateral.

As

such,

the

non-

cash

collateral

is

excluded

from

the

Statement

of

Assets

and

Liabilities.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/

or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to any

cash collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

g.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

As

a

result

of

several

court

cases,

in

certain

countries

across

the

European

Union,

the

Fund

filed

additional

tax

reclaims

for

previously

withheld

taxes

on

dividends

earned

in

those

countries

(EU

reclaims).

Income

recognized,

if

any,

for

EU

reclaims

is

reflected

as

other

income

in

the

Statement

of

Operations

and

any

related

receivable,

if

any,

is

reflected

as

European

Union

tax

reclaims

in

the

Statement

of

Assets

and

Liabilities.

Any

fees

associated

with

these

filings

are

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MGD-23

Semiannual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

reflected

in

other

expenses

in

the

Statement

of

Operations.

When

uncertainty

exists

as

to

the

ultimate

resolution

of

these

proceedings,

the

likelihood

of

receipt

of

these

EU

reclaims,

and

the

potential

timing

of

payment,

no

amounts

are

reflected

in

the

financial

statements.

For

U.S.

income

tax

purposes,

when

EU

reclaims

are

received

by

the

Fund

and

the

Fund

previously

passed

foreign

tax

credit

on

to

its

shareholders,

the

Fund

will

enter

into

a

closing

agreement

with

the

Internal

Revenue

Service

(IRS)

in

order

to

pay

the

associated

tax

liability

on

behalf

of

the

Fund’s

shareholders.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

h.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Paydown

gains

and

losses

are

recorded

as

an

adjustment

to

interest

income.

Dividend

income,

capital

gain

distributions

are

recorded

on

the

ex-

dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

i.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

j.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust, on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

g.

Income

and

Deferred

Taxes

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MGD-24

Semiannual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

66,477

$1,375,524

21,257

$414,362

Shares

issued

in

reinvestment

of

distributions

..........

—

—

5,686

112,415

Shares

redeemed

...............................

(72,583)

(1,497,356)

(38,354)

(742,795)

Net

increase

(decrease)

..........................

(6,106)

$(121,832)

(11,411)

$(216,018)

Class

2

Shares:

Shares

sold

...................................

420,497

$8,186,119

769,967

$14,519,351

Shares

issued

in

reinvestment

of

distributions

..........

—

—

663,490

12,672,652

Shares

redeemed

...............................

(2,055,434)

(39,506,817)

(4,752,157)

(89,522,627)

Net

increase

(decrease)

..........................

(1,634,937)

$(31,320,698)

(3,318,700)

$(62,330,624)

Class

4

Shares:

Shares

sold

...................................

35,493

$718,676

14,869

$289,930

Shares

issued

in

reinvestment

of

distributions

..........

—

—

33,198

650,689

Shares

redeemed

...............................

(158,645)

(3,149,879)

(298,686)

(5,790,189)

Net

increase

(decrease)

..........................

(123,152)

$(2,431,203)

(250,619)

$(4,849,570)

Subsidiary

Affiliation

Franklin

Mutual

Advisers,

LLC.

(Franklin

Mutual)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MGD-25

Semiannual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Franklin

Mutual

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

management

fee

rate

was

0.875%

of

the

Fund’s

average

daily

net

assets.

b.

Administrative

Fees

Under

an

agreement

with

Franklin

Mutual,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Franklin

Mutual

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

2

and

Class

4

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.35%

per

year

of

its

average

daily

net

assets

of

each

class.

The

Board

has

agreed

to

limit

the

current

rate

to

0.25%

per

year

for

Class

2.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

e.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Annualized

Fee

Rate

Net

Assets

0.875%

Up

to

and

including

$4

billion

0.845%

Over

$4

billion,

up

to

and

including

$7

billion

0.825%

Over

$7

billion,

up

to

and

including

$10

billion

0.805%

Over

$10

billion,

up

to

and

including

$13

billion

0.785%

Over

$13

billion,

up

to

and

including

$16

billion

0.765%

Over

$16

billion,

up

to

and

including

$19

billion

0.745%

Over

$19

billion,

up

to

and

including

$22

billion

0.725%

Over

$22

billion,

up

to

and

including

$25

billion

0.705%

Over

$25

billion,

up

to

and

including

$28

billion

0.685%

In

excess

of

$28

billion

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MGD-26

Semiannual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

June

30,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

At

June

30,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

defaulted

securities,

foreign

currency

transactions,

wash

sales,

EU

reclaims

and

tax

straddles.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities

and

securities

sold

short)

for

the

period

ended

June

30,

2022,

aggregated

$156,734,367

and

$173,048,857,

respectively.

At

June

30,

2022,

in

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received $25 of

cash

collateral. The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Statement

of

Assets

and

Liabilities.

The

agreements

can

be

terminated

at

any

time.

7.

Credit Risk

and

Defaulted

Securities

The

Fund

may

purchase

the

pre-default

or

defaulted

debt

of

distressed

companies.

Distressed

companies

are

financially

troubled

and

could

be

or

are

already

involved

in

financial

restructuring

or

bankruptcy.

Risks

associated

with

purchasing

these

securities

include

the

possibility

that

the

bankruptcy

or

other

restructuring

process

takes

longer

than

expected,

or

that

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Mutual

Global

Discovery

VIP

Fund

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$—

$23,657,000

$(23,657,000)

$—

$—

$—

—

$830

Total

Affiliated

Securities

...

$—

$23,657,000

$(23,657,000)

$—

$—

$—

$830

Cost

of

investments

..........................................................................

$401,837,276

Unrealized

appreciation

........................................................................

$69,002,372

Unrealized

depreciation

........................................................................

(48,088,928)

Net

unrealized

appreciation

(depreciation)

..........................................................

$20,913,444

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MGD-27

Semiannual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

distributions

in

restructuring

are

less

than

anticipated,

either

or

both

of

which

may

result

in

unfavorable

consequences

to

the

Fund.

If

it

becomes

probable

that

the

income

on

debt

securities,

including

those

of

distressed

companies,

will

not

be

collected,

the

Fund

discontinues

accruing

income

and

recognizes

an

adjustment

for

uncollectible

interest.

At

June

30,

2022,

the

Fund

did

not

hold

any

distressed

company

securities

for

which

interest

recognition

has

been

discontinued.

8.

Concentration

of

Risk

Investing

in

foreign

securities

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities,

such

as

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

Political

and

financial

uncertainty

in

many

foreign

regions

may

increase

market

volatility

and

the

economic

risk

of

investing

in

foreign

securities.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

9.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

10.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

11.

Restricted

Securities

The

Fund

invests

in

securities

that

are

restricted

under

the

Securities

Act

of

1933

(1933

Act).

Restricted

securities

are

often

purchased

in

private

placement

transactions,

and

cannot

be

sold

without

prior

registration

unless

the

sale

is

pursuant

to

an

exemption

under

the

1933

Act.

Disposal

of

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

The Fund

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

At

June

30,

2022,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Mutual

Global

Discovery

VIP

Fund

424,073

International

Automotive

Components

Group

Brazil

LLC

4/13/06

-

12/26/08

$

281,629

$

9,971

Total

Restricted

Securities

(Value

is

0.0%

†

of

Net

Assets)

.............

$281,629

$9,971

†

Rounds

to

less

than

0.1%

of

net

assets.

7.

Credit Risk

and

Defaulted

Securities

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MGD-28

Semiannual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

12.

Other

Derivative

Information

At

June

30,

2022,

investments

in

derivative

contracts

are

reflected

in

the

Statement of

Assets

and

Liabilities

as

follows:

For

the

period

ended

June

30,

2022,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

period

ended

June

30,

2022

,

the

average

month

end

notional

amount

of

futures

contracts

represented

$19,024,379.

The

average

month

end

contract

value

of

forward

exchange

contracts

was

$108,537,875.

At

June

30,

2022,

OTC

derivative

assets

and

liabilities

are

as

follows:

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Franklin

Mutual

Global

Discovery

VIP

Fund

Foreign

exchange

contracts

..

Variation

margin

on

futures

contracts

$

297,908

a

Variation

margin

on

futures

contracts

$

—

Unrealized

appreciation

on

OTC

forward

exchange

contracts

6,225,321

Unrealized

depreciation

on

OTC

forward

exchange

contracts

1,139,315

Total

....................

$6,523,229

$1,139,315

a

This

amount

reflects

the

cumulative

appreciation

(depreciation)

of

futures

contracts

as

reported

in

the

Schedule

of

Investments.

Only

the

variation

margin

receivable/payable

at

period

end

is

separately

reported

within

the

Statement

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Period

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Period

Franklin

Mutual

Global

Discovery

VIP

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Futures

contracts

$1,238,909

Futures

contracts

$530,493

Forward

exchange

contracts

3,440,440

Forward

exchange

contracts

3,505,591

Total

.......................

$4,679,349

$4,036,084

Gross

Amounts

of

Assets

and

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Assets

a

Liabilities

a

Franklin

Mutual

Global

Discovery

VIP

Fund

Derivatives

Forward

exchange

contracts

.............................

$

6,225,321

$

1,139,315

Total

.............................................

$6,225,321

$1,139,315

a

Absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MGD-29

Semiannual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

At

June

30,

2022,

OTC

derivative

assets,

which

may

be

offset

against

OTC

derivative

liabilities

and

collateral

received

from

the

counterparty,

are

as

follows:

At

June

30,

2022,

OTC

derivative

liabilities,

which

may

be

offset

against

OTC

derivative

assets

and

collateral

pledged

to

the

counterparty,

are

as

follows:

See

Note

1(c)

regarding

derivative

financial

instruments. 

13.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Assets

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Received

a

Cash

Collateral

Received

Net

Amount

(Not

less

than

zero)

Franklin

Mutual

Global

Discovery

VIP

Fund

Counterparty

BOFA

....................

$254,219

$(254,219)

$—

$—

$—

HSBK

...................

3,053,174

(363,664)

(2,135,897)

—

553,613

SSBT

....................

17,016

(17,016)

—

—

—

UBSW

...................

2,900,912

(348,101)

(2,522,721)

—

30,090

Total

...................

$6,225,321

$(983,000)

$

(4,658,618)

$—

$583,703

$

1

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Pledged

Cash

Collateral

Pledged

Net

Amount

(Not

less

than

zero)

Franklin

Mutual

Global

Discovery

VIP

Fund

Counterparty

BOFA

....................

$274,297

$(254,219)

$—

$—

$20,078

HSBK

...................

363,664

(363,664)

—

—

—

SSBT

....................

153,253

(17,016)

—

—

136,237

UBSW

...................

348,101

(348,101)

—

—

—

Total

...................

$1,139,315

$(983,000)

$—

$—

$156,315

a

At

June

30,

2022,

the

Fund

received

U.S.

Treasury

Bonds,

bills

and

Notes

and

U.K

Treasury

Inflation-Linked

Gilt

Bonds

as

collateral

for

derivatives

.

12.

Other

Derivative

Information

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MGD-30

Semiannual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

14.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments).

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Mutual

Global

Discovery

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

—

$

6,271,173

$

—

$

6,271,173

Auto

Components

......................

—

4,821,140

9,971

4,831,111

Automobiles

..........................

6,633,552

—

—

6,633,552

Banks

...............................

9,760,372

26,310,105

—

36,070,477

Building

Products

......................

7,825,364

—

—

7,825,364

Capital

Markets

........................

8,539,350

—

—

8,539,350

Chemicals

...........................

—

6,542,868

—

6,542,868

Construction

Materials

..................

—

5,783,051

—

5,783,051

Diversified

Financial

Services

.............

9,161,012

—

—

9,161,012

Diversified

Telecommunication

Services

.....

—

12,674,144

—

12,674,144

Electrical

Equipment

....................

—

6,740,102

—

6,740,102

Energy

Equipment

&

Services

.............

7,491,967

—

—

7,491,967

Entertainment

.........................

15,019,432

—

—

15,019,432

Food

Products

........................

9,450,634

8,032,403

—

17,483,037

Health

Care

Equipment

&

Supplies

.........

8,868,916

—

—

8,868,916

Health

Care

Providers

&

Services

..........

24,675,208

7,252,306

—

31,927,514

Household

Durables

....................

7,818,892

—

—

7,818,892

Household

Products

....................

—

7,775,519

—

7,775,519

Independent

Power

and

Renewable

Electricity

Producers

..........................

—

4,997,761

—

4,997,761

Industrial

Conglomerates

................

—

5,940,326

—

5,940,326

Insurance

............................

16,595,118

15,589,244

—

32,184,362

Internet

&

Direct

Marketing

Retail

..........

5,182,831

—

—

5,182,831

IT

Services

...........................

14,741,199

7,052,593

—

21,793,792

13.

Credit

Facility

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MGD-31

Semiannual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the period. 

15.

New

Accounting

Pronouncements

In June

2022,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

16.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Level

1

Level

2

Level

3

Total

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Machinery

............................

$

6,995,447

$

6,497,351

$

—

$

13,492,798

Media

...............................

10,965,476

—

—

10,965,476

Metals

&

Mining

.......................

—

2,151,487

—

2,151,487

Oil,

Gas

&

Consumable

Fuels

.............

6,319,339

11,980,798

—

18,300,137

Pharmaceuticals

.......................

19,329,559

10,592,832

—

29,922,391

Real

Estate

Management

&

Development

....

6,297,336

—

—

6,297,336

Semiconductors

&

Semiconductor

Equipment

.

2,346,960

6,802,968

—

9,149,928

Software

.............................

6,505,009

—

—

6,505,009

Technology

Hardware,

Storage

&

Peripherals

.

7,052,387

8,736,136

—

15,788,523

Tobacco

.............................

—

8,929,775

—

8,929,775

Trading

Companies

&

Distributors

..........

7,270,617

—

—

7,270,617

Preferred

Stocks

........................

—

6,011,781

—

6,011,781

Warrants

..............................

190

—

—

190

Corporate

Bonds

........................

—

1,825,072

—

1,825,072

Companies

in

Liquidation

..................

—

—

—

a

—

Short

Term

Investments

...................

—

3,199,733

—

3,199,733

Total

Investments

in

Securities

...........

$224,846,167

$192,510,668

b

$9,971

$417,366,806

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

6,225,321

$

—

$

6,225,321

Futures

contracts

........................

297,908

—

—

297,908

Total

Other

Financial

Instruments

.........

$297,908

$6,225,321

$—

$6,523,229

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

1,139,315

$

—

$

1,139,315

Total

Other

Financial

Instruments

.........

$—

$1,139,315

$—

$1,139,315

a

Includes

securities

determined

to

have

no

value

at

June

30,

2022.

b

Includes

foreign

securities

valued

at

$187,485,865,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

14.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MGD-32

Semiannual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

Abbreviations

Counterparty

BOFA

Bank

of

America

Corp.

HSBK

HSBC

Bank

plc

SSBT

State

Street

Bank

and

Trust

Co.

UBSW

UBS

AG

Currency

EUR

Euro

GBP

British

Pound

USD

United

States

Dollar

Selected

Portfolio

ADR

American

Depositary

Receipt

FHLB

Federal

Home

Loan

Banks

MS-1

Semiannual

Report

Franklin

Mutual

Shares

VIP

Fund

This

semiannual

report

for

Franklin

Mutual

Shares

VIP

Fund

covers

the

period

ended

June

30,

2022

.

Class

1

Performance

Summary

as

of

June

30,

2022

The

Fund’s

Class

1

Shares

posted

a

-12.64%

total

return

for

the

six-month

period

ended

June

30,

2022.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

MS-2

Semiannual

Report

Franklin

Mutual

Shares

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation.

Its

secondary

goal

is

income.

Under

normal

market

conditions,

the

Fund

invests

primarily

in

equity

securities

of

U.S.

and

foreign

companies

that

we

believe

are

available

at

market

prices

less

than

their

fundamental

value.

The

equity

securities

in

which

the

Fund

invests

are

primarily

common

stock,

and

generally

companies

with

market

capitalizations

greater

than

$5

billion,

with

a

portion

or

significant

amount

in

smaller

companies.

To

a

lesser

extent,

the

Fund

also

invests

in

merger

arbitrage

securities

and

the

debt

and

equity

of

distressed

companies.

The

Fund

may

invest

up

to

35%

of

its

assets

in

foreign

securities,

which

may

include

sovereign

debt

and

participations

in

foreign

government

debt.

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

A

value

stock

may

not

increase

in

price

as

anticipated

by

the

investment

manager

if

other

investors

fail

to

recognize

the

company's

value

and

bid

up

the

price,

the

markets

favor

faster-growing

companies,

or

the

factors

that

the

investment

manager

believes

will

increase

the

price

of

the

security

do

not

occur

or

do

not

have

the

anticipated

effect.

Investing

in

foreign

securities

typically

involves

more

risks

than

investing

in

U.S.

securities,

including

risks

related

to

currency

exchange

rates

and

policies,

country

or

government

specific

issues,

less

favorable

trading

practices

or

regulation

and

greater

price

volatility.

Securities

issued

by

small

and

mid-capitalization

companies

may

be

more

volatile

in

price

than

those

of

larger

companies

and

may

involve

additional

risks.

Derivative

investments

involve

costs

and

can

create

economic

leverage

in

the

Fund’s

portfolio

which

may

result

in

significant

volatility

and

cause

the

Fund

to

participate

in

losses

(as

well

as

gains)

in

an

amount

that

significantly

exceeds

the

Fund’s

initial

investment.

A

merger

or

other

restructuring,

or

a

tender

or

exchange

offer,

proposed

or

pending

at

the

time

the

Fund

invests

in

merger

arbitrage

securities

may

not

be

completed

on

the

terms

or

within

the

time

frame

contemplated,

which

may

result

in

losses

to

the

Fund.

Debt

obligations

of

distressed

companies

typically

are

unrated,

lower-rated,

in

default

or

close

to

default

and

are

generally

more

likely

to

become

worthless

than

the

securities

of

more

financially

stable

companies.

To

the

extent

that

the

Fund

focuses

on

particular

countries,

regions,

industries,

sectors

or

types

of

investment

from

time

to

time,

the

Fund

may

be

subject

to

greater

risks

of

adverse

developments

in

such

areas

of

focus

than

a

fund

that

invests

in

a

wider

variety

of

countries,

regions,

industries,

sectors

or

investments.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia's

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia's

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

*Rounds

to

less

than

0.1%

of

net

assets.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

benchmark,

the

Russell

1000

®

Value

Index,

posted

a

-12.86%

total

return

for

the

period

under

review.

1

Geographic

Composition

6/30/22

%

of

Total

Net

Assets

United

States

88.6%

United

Kingdom

4.9%

Switzerland

2.3%

Netherlands

1.7%

Other*

0.0%

Short-Term

Investments

&

Other

Net

Assets

2.5%

1.

Source:

Morningstar.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

Franklin

Mutual

Shares

VIP

Fund

MS-3

Semiannual

Report

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

-20.18%

total

return

for

the

six

months

ended

June

30,

2022.

1

The

combination

of

resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

many

countries.

This

inflationary

pressure

led

many

of

the

world’s

central

banks

to

adopt

less

accommodative

stances

regarding

monetary

policy.

The

Chinese

government’s

imposition

of

new

lockdowns

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

pressured

Asian

and

global

emerging

market

stocks.

Russia’s

invasion

of

Ukraine

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

constrained

companies

that

do

business

with

Russia

and

disrupted

global

economic

activity

and

commodity

markets.

In

the

U.S.,

gross

domestic

product

(GDP)

growth

turned

negative

in

the

first

quarter

of

2022

as

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

the

economy.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings,

and

anticipated

instituting

further

interest

rate

increases

at

future

meetings.

Economic

growth

in

the

eurozone

maintained

a

slow

rate

in

the

first

quarter

of

2022

as

the

war

in

Ukraine

disrupted

supply

chains,

sent

commodity

prices

higher,

and

weakened

the

economic

outlook.

The

war

in

Ukraine

contributed

to

record

high

inflation

across

the

eurozone

as

commodity

and

oil

prices

soared.

The

European

Central

Bank

indicated

it

will

raise

interest

rates

in

July,

the

first

increase

in

more

than

a

decade,

to

fight

growing

inflation.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-20.79%

total

return

for

the

six

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-17.69%

total

return

for

the

six-month

period.

1

While

many

Asian

countries

experienced

improving

economic

conditions,

Japan’s

GDP

contracted

in

the

first

quarter

of

2022

after

having

returned

to

growth

in

the

fourth

quarter

of

2021.

Although

China’s

economy

continued

to

grow,

it

was

pressured

by

coronavirus-related

restrictions

and

government

measures

to

limit

real

estate

speculation.

Unexpected

regulatory

changes

by

the

Chinese

government,

which

negatively

impacted

education-

and

technology-

related

businesses,

and

investor

concerns

about

the

solvency

of

several

large

Chinese

property

developers

further

pressured

Chinese

stocks.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-17.63%

total

return

for

the

six

months

under

review.

1

Following

Russia’s

invasion

of

Ukraine,

climbing

food

and

energy

prices

kindled

inflationary

pressures

and

raised

concerns

over

the

possibility

of

government

debt

defaults

in

some

countries.

Meanwhile,

some

countries,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

have

benefited

from

the

rising

commodity

prices.

Investment

Strategy

At

Franklin

Mutual

Advisors,

we

are

committed

to

our

distinctive

value

approach

to

investing.

Our

major

investment

strategy

is

investing

in

undervalued

stocks.

When

selecting

undervalued

equities,

we

are

attracted

to

what

we

believe

are

fundamentally

strong

companies

with

healthy

balance

sheets,

high-quality

assets,

substantial

free

cash

flow

and

shareholder-oriented

management

teams

and

whose

stocks

are

trading

at

discounts

to

our

assessment

of

the

companies’

intrinsic

or

business

value.

We

also

look

for

asset-rich

companies

whose

shares

may

be

trading

at

depressed

levels

due

to

concerns

over

short-term

earnings

disappointments,

litigation,

management

strategy

or

other

perceived

negatives.

While

the

vast

majority

of

our

undervalued

equity

and

debt

investments

are

made

Top

10

Industries

6/30/22

%

of

Total

Net

Assets

a

Pharmaceuticals

8.1%

IT

Services

7.1%

Health

Care

Providers

&

Services

7.0%

Banks

6.7%

Software

5.5%

Insurance

5.4%

Oil,

Gas

&

Consumable

Fuels

5.4%

Media

4.7%

Tobacco

3.3%

Entertainment

3.2%

Franklin

Mutual

Shares

VIP

Fund

MS-4

Semiannual

Report

in

publicly

traded

companies

globally,

we

may

invest

occasionally

in

privately

held

companies

as

well.

We

complement

this

more

traditional

investment

strategy

with

two

others.

One

is

distressed

investing,

which

is

complex

and

can

take

many

forms.

The

most

common

distressed

investment

the

Fund

undertakes

is

the

purchase

of

financially

troubled

or

bankrupt

companies’

debt

at

a

substantial

discount

to

face

value.

After

the

financially

distressed

company

is

reorganized,

often

in

bankruptcy

court,

the

old

debt

is

typically

replaced

with

new

securities

issued

by

the

financially

stronger

company.

The

other

piece

of

our

investment

strategy

is

participating

in

arbitrage

situations,

another

highly

specialized

field.

When

companies

announce

proposed

mergers

or

takeovers,

commonly

referred

to

as

deals,

the

target

company

may

trade

at

a

discount

to

the

bid

it

ultimately

accepts.

One

form

of

arbitrage

involves

purchasing

the

target

company’s

stock

when

it

is

trading

below

the

value

we

believe

it

would

receive

in

a

deal.

In

keeping

with

our

commitment

to

a

relatively

conservative

investment

approach,

we

typically

focus

our

arbitrage

efforts

on

announced

deals,

and

eschew

rumored

deals

or

other

situations

we

consider

relatively

risky.

In

addition,

it

is

our

practice

to

hedge

the

Fund’s

currency

exposure

when

we

deem

it

advantageous

for

our

shareholders.

Manager’s

Discussion

During

the

six-month

period,

the

Fund

fared

better

than

its

benchmark,

as

stock

selection

in

the

financials,

consumer

staples

and

health

care

sectors

contributed

to

relative

returns.

Stock

selection

in

the

consumer

discretionary,

energy

and

industrials

sectors

detracted

from

relative

performance.

Top

positive

contributors

to

performance

during

the

six-

month

period

included

BP,

Williams

and

British

American

Tobacco.

U.K.-based

global

integrated

oil

company

BP

contributed

to

relative

returns,

as

high

energy

prices

continued

to

support

the

stock

despite

uncertainty

about

the

costs

of

exiting

its

Russian

assets

and

stake

in

a

Russian

government-

controlled

oil

producer

Rosneft

(not

a

Fund

holding).

Nonetheless,

the

company

recently

reiterated

its

financial

framework,

with

some

of

its

significant

free

cash

flow

invested

in

transitioning

the

company

to

an

integrated

energy

company,

and

the

rest

of

its

free

cash

flow

being

returned

to

shareholders

through

stock

buybacks

and

dividends.

Energy

infrastructure

company

Williams

was

a

significant

relative

contributor,

amid

improving

investor

sentiment

toward

the

energy

sector.

Greater

appreciation

of

both

continued

growth

prospects

and

the

strong

contribution

Williams’

assets

can

make

to

decarbonization

also

benefited

the

company’s

share

price

performance.

Additionally,

Williams

stands

to

benefit

from

an

expected

increase

in

liquid

natural

gas

exports

from

the

U.S.

as

efforts

to

reduce

Europe’s

reliance

on

Russian

gas

take

hold. Williams

generates

good

free

cash

flow,

financial

results

tend

to

be stable, and it

is

our

opinion

the

reinvestment

opportunities

have

been

underappreciated. 

British

American

Tobacco

buoyed

relative

returns

during

the

period,

as

stable

growth

businesses

had

a

strong

start

to

the

year.

The

company’s

full-year

financial

results

were

also

positive,

and

the

company

confirmed

that

losses

in

their

new

categories

would

improve

in

2022.

The

company

also

announced

a

stock

buyback

program.

We

believe

the

shares

remain

undervalued,

particularly

as

the

losses

in

its

next

generation

products

are

expected

to

continue

to

decline

over

time.

During

the

six-month

period,

investments

that

detracted

from

Fund

performance

included

General

Motors,

Johnson

Controls

International

and

Lennar.

General

Motors

(GM)

curbed

relative

performance

during

the

period.

The

company

experienced

production

troubles

due

to

ongoing

semiconductor

supply

chain

issues.

GM

also

struggled

with

management

changes

at

its

Cruise

autonomous

vehicle

business,

and

concerns

about

Top

10

Holdings

6/30/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Charter

Communications,

Inc.

3.2%

Media,

United

States

BP

plc

3.0%

Oil,

Gas

&

Consumable

Fuels,

United

Kingdom

T-Mobile

US,

Inc.

2.9%

Wireless

Telecommunication

Services,

United

States

Kraft

Heinz

Co.

(The)

2.8%

Food

Products,

United

States

CVS

Health

Corp.

2.7%

Health

Care

Providers

&

Services,

United

States

Bank

of

America

Corp.

2.4%

Banks,

United

States

Global

Payments,

Inc.

2.4%

IT

Services,

United

States

Fiserv,

Inc.

2.4%

IT

Services,

United

States

Humana,

Inc.

2.3%

Health

Care

Providers

&

Services,

United

States

Novartis

AG

2.3%

Pharmaceuticals,

Switzerland

Franklin

Mutual

Shares

VIP

Fund

MS-5

Semiannual

Report

commodity

inflation

and

the

economy.

Nonetheless,

we

believe

the

company’s

financial

results

were

solid,

with

profitability

remaining

strong

despite

commodity

inflation

and

increased

investments

in

electric

vehicles.

Johnson

Controls

International

hindered

relative

returns

following

its

second-quarter

earnings

report.

The

company

posted

solid

top-line

execution,

weaker

margins

due

to

supply

chain

disruptions

and

an

inline

earnings-per-share

figure

resulting

from

higher

profits

and

a

lower

share

count.

Management

continues

to

see

improved

underlying

trends

and

is

encouraged

by

the

pace

of

order

growth

but

given

the

pace

of

the

backlog

conversion

due

to

supply

chain

issues,

Johnson

Controls

was

forced

to

cut

full-year

guidance.

Lennar,

a

U.S.

homebuilder,

curbed

relative

returns

during

the

period

on

concerns

that

higher

mortgage

rates

would

hurt

its

business.

The

company

is

experiencing

robust

demand

across

its

business,

and

it

anticipates

a

strong

selling

season

in

2022

as

supply

constraints

ease.

Lennar

is

also

continuing

to

buy

back

shares.

The

company

continues

to

emphasize

an

asset

light

business

model,

which

we

believe

can

drive

robust

returns

on

invested

capital

and

strong

free

cash

flow

generation.

We

exited

our

holding

in

Lennar

during

the

period.

During

the

period,

the

Fund

held

currency

forwards

and

futures,

seeking

to

hedge

a

significant

portion

of

the

currency

risk

in

the

portfolio.

The

hedges

had

a

positive

overall

impact

on

the

Fund’s

performance

as

the

dollar

rose

against

most

currencies

during

the

period.

Thank

you

for

your

participation

in

Franklin

Mutual

Shares

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Class

1

Fund

Expenses

Franklin

Mutual

Shares

VIP

Fund

MS-6

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

any

ongoing

expenses

of

the

Contract

for

which

the

Fund

is

an

investment

option

or

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

D

uring

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

1

$1,000

$873.60

$3.24

$1,021.34

$3.49

0.70%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Mutual

Shares

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

MS-7

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.62

$16.93

$19.19

$17.71

$20.71

$20.40

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.18

0.27

0.55

c

0.46

0.36

0.49

Net

realized

and

unrealized

gains

(losses)

(2.67)

3.02

(1.68)

3.39

(2.04)

1.22

Total

from

investment

operations

........

(2.49)

3.29

(1.13)

3.85

(1.68)

1.71

Less

distributions

from:

Net

investment

income

..............

—

(0.60)

(0.50)

(0.42)

(0.55)

(0.53)

Net

realized

gains

.................

—

—

(0.63)

(1.95)

(0.77)

(0.87)

Total

distributions

...................

—

(0.60)

(1.13)

(2.37)

(1.32)

(1.40)

Net

asset

value,

end

of

period

..........

$17.13

$19.62

$16.93

$19.19

$17.71

$20.71

Total

return

d

.......................

(12.64)%

19.52%

(4.85)%

22.92%

(8.86)%

8.64%

Ratios

to

average

net

assets

e

Expenses

f,g,h

.......................

0.70%

0.73%

0.73%

0.71%

0.71%

0.72%

Expenses

-

incurred

in

connection

with

securities

sold

short

.................

—%

i

0.02%

0.01%

0.02%

0.01%

—%

Net

investment

income

...............

1.95%

1.44%

3.48%

c

2.35%

1.77%

2.34%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$97,334

$116,861

$157,734

$158,431

$537,324

$653,700

Portfolio

turnover

rate

................

34.23%

47.31%

j

36.96%

38.50%

24.67%

18.32%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.19

per

share

related

to

income

received

in

the

form

of

special

dividends

and

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

2.27%.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

i

Rounds

to

less

than

0.01%.

j

Excludes

the

value

of

portfolio

securities

delivered

as

a

result

of

redemption

in-kind.

See

Note

13.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Mutual

Shares

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MS-8

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.20

$16.59

$18.81

$17.40

$20.36

$20.08

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.15

0.22

0.51

c

0.40

0.31

0.43

Net

realized

and

unrealized

gains

(losses)

(2.60)

2.95

(1.65)

3.32

(2.00)

1.20

Total

from

investment

operations

........

(2.45)

3.17

(1.14)

3.72

(1.69)

1.63

Less

distributions

from:

Net

investment

income

..............

—

(0.56)

(0.45)

(0.36)

(0.50)

(0.48)

Net

realized

gains

.................

—

—

(0.63)

(1.95)

(0.77)

(0.87)

Total

distributions

...................

—

(0.56)

(1.08)

(2.31)

(1.27)

(1.35)

Net

asset

value,

end

of

period

..........

$16.75

$19.20

$16.59

$18.81

$17.40

$20.36

Total

return

d

.......................

(12.76)%

19.17%

(5.04)%

22.57%

(9.07)%

8.35%

Ratios

to

average

net

assets

e

Expenses

f

,

g

,

h

.......................

0.95%

0.98%

0.98%

0.96%

0.96%

0.97%

Expenses

-

incurred

in

connection

with

securities

sold

short

.................

—%

i

0.02%

0.01%

0.02%

0.01%

—%

Net

investment

income

...............

1.67%

1.17%

3.25%

c

2.10%

1.52%

2.09%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,867,876

$2,517,899

$2,620,645

$2,931,753

$2,516,834

$3,476,913

Portfolio

turnover

rate

................

34.23%

47.31%

j

36.96%

38.50%

24.67%

18.32%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.19

per

share

related

to

income

received

in

the

form

of

special

dividends

and

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

2.04%.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

i

Rounds

to

less

than

0.01%.

j

Excludes

the

value

of

portfolio

securities

delivered

as

a

result

of

redemption

in-kind.

See

Note

13.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Mutual

Shares

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

MS-9

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.39

$16.75

$18.99

$17.55

$20.53

$20.23

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.15

0.20

0.49

c

0.38

0.29

0.41

Net

realized

and

unrealized

gains

(losses)

(2.63)

2.98

(1.66)

3.36

(2.02)

1.21

Total

from

investment

operations

........

(2.48)

3.18

(1.17)

3.74

(1.73)

1.62

Less

distributions

from:

Net

investment

income

..............

—

(0.54)

(0.44)

(0.35)

(0.48)

(0.45)

Net

realized

gains

.................

—

—

(0.63)

(1.95)

(0.77)

(0.87)

Total

distributions

...................

—

(0.54)

(1.07)

(2.30)

(1.25)

(1.32)

Net

asset

value,

end

of

period

..........

$16.91

$19.39

$16.75

$18.99

$17.55

$20.53

Total

return

d

.......................

(12.79)%

19.06%

(5.17)%

22.44%

(9.16)%

8.25%

Ratios

to

average

net

assets

e

Expenses

f,g

,h

.......................

1.05%

1.08%

1.08%

1.06%

1.06%

1.07%

Expenses

-

incurred

in

connection

with

securities

sold

short

.................

—%

i

0.02%

0.01%

0.02%

0.01%

—%

Net

investment

income

...............

1.60%

1.06%

3.13%

c

2.00%

1.42%

1.99%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$97,946

$120,424

$116,704

$120,345

$105,047

$122,942

Portfolio

turnover

rate

................

34.23%

47.31%

j

36.96%

38.50%

24.67%

18.32%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.19

per

share

related

to

income

received

in

the

form

of

special

dividends

and

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.92%.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

ret

urn

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

i

Rounds

to

less

than

0.01%.

j

Excludes

the

value

of

portfolio

securities

delivered

as

a

result

of

redemption

in-kind.

See

Note

13.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Mutual

Shares

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MS-10

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

93.3%

Auto

Components

0.0%

†

a,b,c

International

Automotive

Components

Group

Brazil

LLC

........

Brazil

1,730,515

$

40,688

Automobiles

1.9%

b

General

Motors

Co.

....................................

United

States

1,230,665

39,085,920

Banks

6.7%

Bank

of

America

Corp.

.................................

United

States

1,620,701

50,452,422

First

Horizon

Corp.

....................................

United

States

544,181

11,895,797

ING

Groep

NV

.......................................

Netherlands

3,468,988

34,173,471

Wells

Fargo

&

Co.

.....................................

United

States

1,054,485

41,304,177

137,825,867

Building

Products

1.8%

Johnson

Controls

International

plc

.........................

United

States

786,671

37,665,808

Capital

Markets

2.1%

BlackRock,

Inc.

.......................................

United

States

70,761

43,096,279

Chemicals

2.1%

Ashland

Global

Holdings,

Inc.

............................

United

States

421,948

43,481,741

Commercial

Services

&

Supplies

1.1%

b

Stericycle,

Inc.

.......................................

United

States

519,160

22,765,166

Containers

&

Packaging

1.7%

International

Paper

Co.

.................................

United

States

852,830

35,673,879

Diversified

Financial

Services

1.9%

Voya

Financial,

Inc.

....................................

United

States

645,309

38,415,245

Diversified

Telecommunication

Services

0.4%

a,b,c

Windstream

Holdings,

Inc.

...............................

United

States

609,467

8,747,699

Electric

Utilities

1.2%

Pinnacle

West

Capital

Corp.

.............................

United

States

327,873

23,974,074

Electrical

Equipment

1.2%

Sensata

Technologies

Holding

plc

.........................

United

States

608,640

25,142,918

Electronic

Equipment,

Instruments

&

Components

1.6%

b

Flex

Ltd.

............................................

United

States

2,241,816

32,439,078

Energy

Equipment

&

Services

1.7%

Schlumberger

NV

.....................................

United

States

990,655

35,425,823

Entertainment

3.2%

Activision

Blizzard,

Inc.

.................................

United

States

502,434

39,119,511

b

Walt

Disney

Co.

(The)

..................................

United

States

280,587

26,487,413

65,606,924

Equity

Real

Estate

Investment

Trusts

(REITs)

1.7%

Vornado

Realty

Trust

...................................

United

States

1,232,638

35,241,120

Food

Products

2.8%

Kraft

Heinz

Co.

(The)

..................................

United

States

1,498,201

57,141,386

Health

Care

Equipment

&

Supplies

2.1%

Medtronic

plc

........................................

United

States

476,834

42,795,852

Health

Care

Providers

&

Services

7.0%

CVS

Health

Corp.

.....................................

United

States

608,005

56,337,743

Elevance

Health,

Inc.

..................................

United

States

84,716

40,882,247

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Mutual

Shares

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

MS-11

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Health

Care

Providers

&

Services

(continued)

Humana,

Inc.

........................................

United

States

100,707

$

47,137,926

144,357,916

Household

Durables

2.1%

DR

Horton,

Inc.

.......................................

United

States

650,428

43,051,829

Insurance

5.4%

Everest

Re

Group

Ltd.

.................................

United

States

125,724

35,237,923

Hartford

Financial

Services

Group,

Inc.

(The)

................

United

States

511,699

33,480,465

Willis

Towers

Watson

plc

................................

United

States

214,351

42,310,744

111,029,132

Internet

&

Direct

Marketing

Retail

1.2%

eBay,

Inc.

...........................................

United

States

602,510

25,106,592

IT

Services

7.1%

Bread

Financial

Holdings,

Inc.

............................

United

States

545,923

20,231,907

Cognizant

Technology

Solutions

Corp.,

A

....................

United

States

415,945

28,072,128

b

Fiserv,

Inc.

..........................................

United

States

553,323

49,229,147

Global

Payments,

Inc.

..................................

United

States

450,922

49,890,010

147,423,192

Machinery

1.6%

Parker-Hannifin

Corp.

..................................

United

States

138,360

34,043,478

Media

4.7%

b

Charter

Communications,

Inc.,

A

..........................

United

States

140,842

65,988,702

Comcast

Corp.,

A

.....................................

United

States

799,640

31,377,874

b

Loyalty

Ventures,

Inc.

..................................

United

States

157,255

561,400

97,927,976

Oil,

Gas

&

Consumable

Fuels

4.7%

BP

plc

..............................................

United

Kingdom

13,241,146

62,163,519

Williams

Cos.,

Inc.

(The)

................................

United

States

1,134,772

35,416,234

97,579,753

Pharmaceuticals

7.8%

b

Elanco

Animal

Health,

Inc.

...............................

United

States

1,646,930

32,329,236

Eli

Lilly

&

Co.

........................................

United

States

143,430

46,504,309

Merck

&

Co.,

Inc.

.....................................

United

States

379,932

34,638,400

Novartis

AG,

ADR

.....................................

Switzerland

555,453

46,952,442

160,424,387

Professional

Services

1.8%

KBR,

Inc.

...........................................

United

States

775,453

37,524,171

Real

Estate

Management

&

Development

1.0%

b

CBRE

Group,

Inc.,

A

...................................

United

States

271,524

19,986,882

Software

3.5%

b

Avaya

Holdings

Corp.

..................................

United

States

116

260

NortonLifeLock

,

Inc.

...................................

United

States

1,485,981

32,632,143

Oracle

Corp.

.........................................

United

States

583,016

40,735,328

73,367,731

Specialty

Retail

0.0%

a,b,c

Wayne

Services

Legacy,

Inc.

.............................

United

States

2,039

—

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Mutual

Shares

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MS-12

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Technology

Hardware,

Storage

&

Peripherals

1.9%

b

Western

Digital

Corp.

..................................

United

States

861,023

$

38,599,661

Textiles,

Apparel

&

Luxury

Goods

2.1%

Tapestry,

Inc.

........................................

United

States

1,397,628

42,655,607

Tobacco

3.3%

Altria

Group,

Inc.

......................................

United

States

693,627

28,972,800

British

American

Tobacco

plc

.............................

United

Kingdom

897,319

38,456,606

67,429,406

Wireless

Telecommunication

Services

2.9%

b

T-Mobile

US,

Inc.

.....................................

United

States

447,036

60,144,223

Total

Common

Stocks

(Cost

$1,717,133,791)

....................................

1,925,217,403

Warrants

Warrants

0.0%

†

Diversified

Telecommunication

Services

0.0%

†

a,b,c

Windstream

Holdings,

Inc.,

9/21/55

........................

United

States

34,368

493,285

Software

0.0%

†

b

Avaya

Holdings

Corp.,

12/15/22

..........................

United

States

63,871

3,354

Total

Warrants

(Cost

$436,130)

................................................

496,639

Principal

Amount

*

Corporate

Bonds

2.6%

Diversified

Telecommunication

Services

0.1%

Frontier

Communications

Holdings

LLC

,

Secured

Note

,

5.875

%

,

11/01/29

..........................................

United

States

2,949,278

2,274,306

Oil,

Gas

&

Consumable

Fuels

0.7%

d

Citgo

Holding,

Inc.

,

Senior

Secured

Note

,

144A,

9.25

%

,

8/01/24

..

United

States

13,861,000

13,435,744

Pharmaceuticals

0.3%

d

Bausch

Health

Americas,

Inc.

,

Senior

Note,

144A,

9.25%,

4/01/26

......................

United

States

5,309,000

3,810,562

Senior

Note,

144A,

8.5%,

1/31/27

.......................

United

States

3,434,000

2,416,334

d

Bausch

Health

Cos.,

Inc.

,

Senior

Note

,

144A,

9

%

,

12/15/25

......

United

States

340,000

252,137

6,479,033

Software

0.5%

d

Veritas

US,

Inc.

/

Veritas

Bermuda

Ltd.

,

Senior

Secured

Note

,

144A,

7.5

%

,

9/01/25

......................................

United

States

15,032,000

11,310,077

Specialty

Retail

1.0%

d

Staples,

Inc.

,

Senior

Note,

144A,

10.75%,

4/15/27

.....................

United

States

21,435,000

14,205,296

Senior

Secured

Note,

144A,

7.5%,

4/15/26

................

United

States

6,845,000

5,694,356

19,899,652

Total

Corporate

Bonds

(Cost

$66,287,009)

......................................

53,398,812

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Mutual

Shares

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

MS-13

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

e

Senior

Floating

Rate

Interests

1.5%

f

Software

1.5%

Banff

Guarantor,

Inc.

,

Second

Lien,

Initial

Term

Loan

,

7.166

%

,

(

1-month

USD

LIBOR

+

5.5

%

),

2/27/26

...................

United

States

6,640,700

$

6,263,043

Quest

Software

US

Holdings,

Inc.

,

Second

Lien,

Initial

CME

Term

Loan

,

8.724

%

,

(

3-month

SOFR

+

7.5

%

),

2/01/30

............

United

States

13,032,127

11,753,349

Veritas

US,

Inc.

,

2021

Dollar

Term

Loan,

B

,

7.25

%

,

(

3-month

USD

LIBOR

+

5

%

),

9/01/25

................................

United

States

14,817,938

12,237,098

30,253,490

a

a

a

a

a

a

Total

Senior

Floating

Rate

Interests

(Cost

$34,198,852)

..........................

30,253,490

Asset-Backed

Securities

0.1%

Airlines

0.1%

American

Airlines

Pass-Through

Trust

,

2013-2

,

A

,

4.95

%

,

1/15/23

.

.

United

States

1,928,839

1,894,014

Total

Asset-Backed

Securities

(Cost

$1,899,907)

................................

1,894,014

Shares

a

Companies

in

Liquidation

0.0%

a,b,g

Bosgen

Liquidating

Trust

c/o

Verdolino

and

Lowey

P.C.,

Contingent

Distribution

........................................

Netherlands

347,093

—

a,b,g

Walter

Energy,

Inc.,

Litigation

Trust,

Contingent

Distribution

......

United

States

6,301,000

—

Total

Companies

in

Liquidation

(Cost

$–)

......................................

—

Total

Long

Term

Investments

(Cost

$1,819,955,689)

.............................

2,011,260,358

a

Short

Term

Investments

0.7%

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

U.S.

Government

and

Agency

Securities

0.7%

h

FHLB,

7/01/22

.......................................

United

States

11,600,000

11,600,000

h

U.S.

Treasury

Bills

,

7/12/22

...........................................

United

States

500,000

499,854

i

12/15/22

..........................................

United

States

2,000,000

1,979,102

2,478,956

Total

U.S.

Government

and

Agency

Securities

(Cost

$14,078,590)

.................

14,078,956

Total

Short

Term

Investments

(Cost

$14,078,590

)

................................

14,078,956

a

Total

Investments

(Cost

$1,834,034,279)

98.2%

..................................

$2,025,339,314

Other

Assets,

less

Liabilities

1.8%

.............................................

37,816,759

Net

Assets

100.0%

...........................................................

$2,063,156,073

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Fair

valued

using

significant

unobservable

inputs.

See

Note

14

regarding

fair

value

measurements.

b

Non-income

producing.

c

See

Note

10

regarding

restricted

securities.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Mutual

Shares

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MS-14

At

June

30,

2022,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1(c)

. 

At

June

30,

2022,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(c)

. 

See

Note 

11

 regarding

other

derivative

information.

See

Abbreviations

on

page

MS-

30

.

d

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2022,

the

aggregate

value

of

these

securities

was

$51,124,506,

representing

2.5%

of

net

assets.

e

See

Note

1(f)

regarding

senior

floating

rate

interests.

f

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

g

Contingent

distributions

represent

the

right

to

receive

additional

distributions,

if

any,

during

the

reorganization

of

the

underlying

company.

Shares

represent

total

underlying

principal

of

debt

securities.

h

The

security

was

issued

on

a

discount

basis

with

no

stated

coupon

rate.

i

A

portion

or

all

of

the

security

has

been

segregated

as

collateral

for

open

forward

exchange

contracts.

At

June

30,

2022,

the

value

of

the

security

pledged

amounted

to

$374,050,

representing

less

than

0.1%

of

net

assets.

Futures

Contracts

Description

Type

Number

of

Contracts

Notional

Amount

*

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Foreign

exchange

contracts

Foreign

Exchange

EUR/USD

...................

Short

39

$

5,137,275

9/19/22

$

113,139

Foreign

Exchange

GBP/USD

...................

Short

151

11,512,806

9/19/22

293,133

Total

Futures

Contracts

......................................................................

$406,272

*

As

of

period

end.

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

Euro

.............

BOFA

Buy

10,822,464

11,649,668

7/25/22

$

1,529

$

(294,934)

Euro

.............

BOFA

Sell

456,078

504,095

7/25/22

25,523

—

Euro

.............

HSBK

Buy

3,742,993

4,127,883

7/25/22

1,026

(201,299)

Euro

.............

HSBK

Sell

23,062,516

26,295,403

7/25/22

2,095,368

—

Euro

.............

SSBT

Buy

4,832,939

5,364,197

7/25/22

—

(292,881)

Euro

.............

SSBT

Sell

4,534,895

4,797,115

7/25/22

38,544

—

Euro

.............

UBSW

Buy

16,079,441

17,117,834

7/25/22

—

(245,303)

Euro

.............

UBSW

Sell

23,814,766

27,111,719

7/25/22

2,122,331

—

British

Pound

......

BOFA

Sell

1,183,272

1,536,811

8/15/22

95,531

—

British

Pound

......

HSBK

Sell

1,030,049

1,344,168

8/15/22

89,520

—

British

Pound

......

SSBT

Sell

64,037

77,767

8/15/22

—

(233)

Total

Forward

Exchange

Contracts

...................................................

$4,469,372

$(1,034,650)

Net

unrealized

appreciation

(depreciation)

............................................

$3,434,722

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

MS-15

Franklin

Mutual

Shares

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$1,834,034,279

Value

-

Unaffiliated

issuers

..................................................................

$2,025,339,314

Cash

....................................................................................

22,235,078

Receivables:

Investment

securities

sold

...................................................................

25,158,741

Capital

shares

sold

........................................................................

128,449

Dividends

and

interest

.....................................................................

3,739,036

European

Union

tax

reclaims

(Note

1

g

)

.........................................................

1,340,691

Deposits

with

brokers

for:

Futures

contracts

........................................................................

426,405

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

4,469,372

Other

assets

..............................................................................

437,802

Total

assets

..........................................................................

2,083,274,888

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

15,356,426

Capital

shares

redeemed

...................................................................

932,123

Management

fees

.........................................................................

1,194,175

Distribution

fees

..........................................................................

430,322

Trustees'

fees

and

expenses

.................................................................

508

Variation

margin

on

futures

contracts

...........................................................

77,494

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

1,034,650

Accrued

expenses

and

other

liabilities

...........................................................

1,093,117

Total

liabilities

.........................................................................

20,118,815

Net

assets,

at

value

.................................................................

$2,063,156,073

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$1,424,850,795

Total

distributable

earnings

(losses)

.............................................................

638,305,278

Net

assets,

at

value

.................................................................

$2,063,156,073

Franklin

Mutual

Shares

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$97,333,924

Shares

outstanding

........................................................................

5,680,799

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$17.13

Class

2:

Net

assets,

at

value

.......................................................................

$1,867,876,170

Shares

outstanding

........................................................................

111,539,619

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$16.75

Class

4:

Net

assets,

at

value

.......................................................................

$97,945,979

Shares

outstanding

........................................................................

5,792,181

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$16.91

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MS-16

Franklin

Mutual

Shares

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$863,794)

Unaffiliated

issuers

........................................................................

$27,316,142

Interest:

Unaffiliated

issuers

........................................................................

3,902,920

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

1,937

Non-controlled

affiliates

(Note

3

e

)

.............................................................

2,205

Other

income

(Note

1

g

)

......................................................................

1,142,709

Total

investment

income

...................................................................

32,365,913

Expenses:

Management

fees

(Note

3

a

)

...................................................................

8,332,325

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

2,809,128

    Class

4

................................................................................

195,495

Custodian

fees

(Note

4

)

......................................................................

19,723

Reports

to

shareholders

fees

..................................................................

45,865

Professional

fees

...........................................................................

71,114

Trustees'

fees

and

expenses

..................................................................

12,514

Dividends

on

securities

sold

short

..............................................................

36,916

Other

....................................................................................

96,717

Total

expenses

.........................................................................

11,619,797

Expense

reductions

(Note

4

)

...............................................................

(375)

Expenses

waived/paid

by

affiliates

(Not

e

3e)

...................................................

(6,

292)

Net

expenses

.........................................................................

11,613,130

Net

investment

income

................................................................

20,752,783

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

175,673,224

Foreign

currency

transactions

................................................................

(244,727)

Forward

exchange

contracts

.................................................................

2,973,232

Futures

contracts

.........................................................................

1,012,849

Securities

sold

short

.......................................................................

(14,311,989)

Net

realized

gain

(loss)

..................................................................

165,102,589

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(528,398,613)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

38,801

Forward

exchange

contracts

.................................................................

1,780,312

Futures

contracts

.........................................................................

754,386

Securities

sold

short

.......................................................................

24,435,973

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(501,389,141)

Net

realized

and

unrealized

gain

(loss)

............................................................

(336,286,552)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(315,533,769)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

MS-17

Franklin

Mutual

Shares

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$20,752,783

$34,124,197

Net

realized

gain

(loss)

.................................................

165,102,589

421,824,240

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(501,389,141)

64,801,158

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(315,533,769)

520,749,595

Distributions

to

shareholders:

Class

1

.............................................................

—

(3,422,611)

Class

2

.............................................................

—

(73,136,481)

Class

4

.............................................................

—

(3,309,278)

Total

distributions

to

shareholders

..........................................

—

(79,868,370)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

(5,309,562)

(64,966,663)

Class

2

.............................................................

(363,252,111)

(501,789,098)

Class

4

.............................................................

(7,932,269)

(14,024,839)

Total

capital

share

transactions

............................................

(376,493,942)

(580,780,600)

Net

increase

(decrease)

in

net

assets

...................................

(692,027,711)

(139,899,375)

Net

assets:

Beginning

of

period

.....................................................

2,755,183,784

2,895,083,159

End

of

period

..........................................................

$2,063,156,073

$2,755,183,784

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

Franklin

Mutual

Shares

VIP

Fund

MS-18

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Templeton

Variable

Insurance

Products

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Mutual

Shares

VIP

Fund

(Fund)

is

included

in

this

report. Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

The

Fund

offers

three

classes

of

shares:

Class

1,

Class

2

and

Class

4.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege.

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

and

derivative

financial

instruments

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Debt

securities

generally

trade

in

the OTC

market

rather

than

on

a

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

Certain

derivative

financial

instruments

are

centrally

cleared

or

trade

in

the

OTC

market.

The

Fund's

pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

fair

value

of

those

instruments.

The

Fund's

net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MS-19

Semiannual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day.

Events

can

occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Derivative

Financial

Instruments

The

Fund invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statement

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statement

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

The

Fund

attempts

to

reduce

its

exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MS-20

Semiannual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the

Fund

include

failure

of

the

Fund

to

maintain

certain

net

asset

levels

and/or

limit

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Fund

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

At

June

30,

2022

the

Fund

had

OTC

derivatives

in

a

net

liability

position

of

$426,921

and

the

aggregate

value

of

collateral

pledged

for

such

contracts

was

$374,050.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

or

initial

margin

requirements

are

set

by

the

broker

or

exchange

clearing

house

for

exchange

traded

and

centrally

cleared

derivatives.

Initial

margin

deposited

is

held

at

the

exchange

and

can

be

in

the

form

of

cash

and/or

securities.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund

for

OTC

derivatives,

if

any,

is

held

in

segregated

accounts

with

the

Fund's

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Fund's

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

At

June

30,

2022, the

Fund

received

$3,282,416

in

United

Kingdom

Inflation-Linked

Gilt

and

U.S.

Treasury

Bills

as

collateral

for

derivatives.

The

Fund

entered

into

exchange

traded

futures

contracts

primarily

to

manage

and/or

gain

exposure

to

interest

rate

and

equity

price

risk.

A

futures

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

an

asset

at

a

specified

price

on

a

future

date.

Required

initial

margins

are

pledged

by

the

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the

Statement

of

Assets

and

Liabilities.

The

Fund entered

into

OTC

forward

exchange

contracts

primarily

to

manage

and/or

gain

exposure

to

certain

foreign

currencies.

A

forward

exchange

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

foreign

currency at

a

specific

exchange

rate

on

a

future

date.

See

Note

11

regarding

other

derivative

information.

d.

Securities

Sold

Short

The

Fund

is

engaged

in

selling

securities

short,

which

obligates

the

Fund

to

replace

a

borrowed

security

with

the

same

security

at

current

fair

value.

The

Fund

incurs

a

loss

if

the

price

of

the

security

increases

between

the

date

of

the

short

sale

and

the

date

on

which

the

Fund

replaces

the

borrowed

security.

The

Fund

realizes

a

gain

if

the

price

of

the

security

declines

between

those

dates.

Gains

are

limited

to

the

price

at

which

the

Fund

sold

the

security

short,

while

losses

are

potentially

unlimited

in

size.

The

Fund

is

required

to

establish

a

margin

account

with

the

broker

lending

the

security

sold

short.

While

the

short

sale

is

outstanding,

the

broker

retains

the

proceeds

of

the

short

sale

to

the

extent

necessary

to

meet

margin

requirements

until

the

short

position

is

closed

out.

A

deposit

must

also

be

maintained

with

the

Fund's

custodian/counterparty

broker

consisting

of

cash

and/or

securities

having

a

value

equal

to

a

specified

percentage

of

the

value

of

the

securities

sold

short.

The

Fund

is

obligated

to

pay

fees

for

borrowing

the

securities

sold

short

and

is

required

to

pay

the

counterparty

any

dividends

and/or

interest

due

on

securities

sold

short.

Such

dividends

and/or

interest

and

any

security

borrowing

fees

are

recorded

as

an

expense

to

the

Fund.

At

June

30,

2022,

the

Fund

had

no

securities

sold

short. 

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Derivative

Financial

Instruments

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MS-21

Semiannual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

e.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the Fund,

and/or

a

joint

repurchase

agreement.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to any

cash collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

At

June

30,

2022,

the

Fund

had

no

securities

on

loan.

f.

Senior

Floating

Rate

Interests

The

Fund

invests

in

senior

secured

corporate

loans

that

pay

interest

at

rates

which

are

periodically

reset

by

reference

to

a

base

lending

rate

plus

a

spread.

These

base

lending

rates

are

generally

the

prime

rate

offered

by

a

designated

U.S.

bank

or

the

London

InterBank

Offered

Rate

(LIBOR).

Senior

secured

corporate

loans

often

require

prepayment

of

principal

from

excess

cash

flows

or

at

the

discretion

of

the

borrower.

As

a

result,

actual

maturity

may

be

substantially

less

than

the

stated

maturity.

Senior

secured

corporate

loans

in

which

the Fund

invests

are

generally

readily

marketable,

but

may

be

subject

to

certain

restrictions

on

resale.

g.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

As

a

result

of

several

court

cases,

in

certain

countries

across

the

European

Union,

the

Fund

filed

additional

tax

reclaims

for

previously

withheld

taxes

on

dividends

earned

in

those

countries

(EU

reclaims). Income

recognized,

if

any,

for

EU

reclaims

is

reflected

as

other

income

in

the

Statement

of

Operations

and

any

related

receivable,

if

any,

is

reflected

as

European

Union

tax

reclaims

in

the

Statement

of

Assets

and

Liabilities.

Any

fees

associated

with

these

filings

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

When

uncertainty

exists

as

to

the

ultimate

resolution

of

these

proceedings,

the

likelihood

of

receipt

of

these

EU

reclaims,

and

the

potential

timing

of

payment,

no

amounts

are

reflected

in

the

financial

statements.

For

U.S.

income

tax

purposes,

when

EU

reclaims

are

received

by

the

Fund

and

the

Fund

previously

passed

foreign

tax

credit

on

to

its

shareholders,

the

Fund

will

enter

into

a

closing

agreement

with

the

Internal

Revenue

Service

(IRS)

in

order

to

pay

the

associated

tax

liability

on

behalf

of

the

Fund’s

shareholders.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MS-22

Semiannual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

h.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Paydown

gains

and

losses

are

recorded

as

an

adjustment

to

interest

income.

Dividend

income,

capital

gain

distributions

are

recorded

on

the

ex-

dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

i.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

j.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust, on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

50,566

$970,675

318,693

$6,213,133

Shares

issued

in

reinvestment

of

distributions

..........

—

—

179,100

3,422,611

Shares

redeemed

in-kind

(Note

13

)

..................

—

—

(3,060,698)

(59,532,727)

Shares

redeemed

...............................

(327,263)

(6,280,237)

(794,758)

(15,069,680)

Net

increase

(decrease)

..........................

(276,697)

$(5,309,562)

(3,357,663)

$(64,966,663)

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MS-23

Semiannual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Franklin

Mutual

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was

0.675%

of

the

Fund’s

average

daily

net

assets. 

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

2

Shares:

Shares

sold

...................................

2,174,588

$41,087,050

9,578,231

$183,303,412

Shares

issued

in

reinvestment

of

distributions

..........

—

—

3,908,951

73,136,481

Shares

redeemed

in-kind

(Note

13

)

..................

—

—

(13,941,656)

(265,295,778)

Shares

redeemed

...............................

(21,803,535)

(404,339,161)

(26,387,039)

(492,933,213)

Net

increase

(decrease)

..........................

(19,628,947)

$(363,252,111)

(26,841,513)

$(501,789,098)

Class

4

Shares:

Shares

sold

...................................

132,293

$2,480,846

337,245

$6,316,446

Shares

issued

in

reinvestment

of

distributions

..........

—

—

175,002

3,309,278

Shares

redeemed

...............................

(549,726)

(10,413,115)

(1,268,725)

(23,650,563)

Net

increase

(decrease)

..........................

(417,433)

$(7,932,269)

(756,478)

$(14,024,839)

Subsidiary

Affiliation

Franklin

Mutual

Advisers,

LLC

(Franklin

Mutual)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.675%

Up

to

and

including

$5

billion

0.645%

Over

$5

billion,

up

to

and

including

$10

billion

0.625%

Over

$10

billion,

up

to

and

including

$15

billion

0.595%

Over

$15

billion,

up

to

and

including

$20

billion

0.585%

Over

$20

billion,

up

to

and

including

$25

billion

0.565%

Over

$25

billion,

up

to

and

including

$30

billion

0.555%

Over

$30

billion,

up

to

and

including

$35

billion

0.545%

In

excess

of

$35

billion

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MS-24

Semiannual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

b.

Administrative

Fees

Under

an

agreement

with

Franklin

Mutual,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Franklin

Mutual

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

2

and

Class

4

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.35%

per

year

of

its

average

daily

net

assets

of

each

class.

The

Board

has

agreed

to

limit

the

current

rate

to

0.25%

per

year

for

Class

2.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

e.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

June

30,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Mutual

Shares

VIP

Fund

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$—

$47,640,000

$(47,640,000)

$—

$—

$—

—

$2,205

Total

Affiliated

Securities

...

$—

$47,640,000

$(47,640,000)

$—

$—

$—

$2,205

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MS-25

Semiannual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

5.

Income

Taxes

At

June

30,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

foreign

currency

transactions,

defaulted

bonds,

wash

sales,

EU

reclaims,

and

gains

realized

on

in-kind

shareholder

redemptions.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities

and

securities

sold

short)

for

the

period

ended

June

30,

2022,

aggregated

$832,069,148

and

$1,159,073,421,

respectively.

7.

Defaulted

Securities

The

Fund

may

purchase

the

pre-default

or

defaulted

debt

of

distressed

companies.

Distressed

companies

are

financially

troubled

and

could

be

or

are

already

involved

in

financial

restructuring

or

bankruptcy.

Risks

associated

with

purchasing

these

securities

include

the

possibility

that

the

bankruptcy

or

other

restructuring

process

takes

longer

than

expected,

or

that

distributions

in

restructuring

are

less

than

anticipated,

either

or

both

of

which

may

result

in

unfavorable

consequences

to

the

Fund.

If

it

becomes

probable

that

the

income

on

debt

securities,

including

those

of

distressed

companies,

will

not

be

collected,

the

Fund

discontinues

accruing

income

and

recognizes

an

adjustment

for

uncollectible

interest.

At

June

30,

2022,

the

Fund

did

not

hold

any

distressed

company

securities

for

which

interest

recognition

has

been

discontinued.

8.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

9.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

Cost

of

investments

..........................................................................

$1,852,717,734

Unrealized

appreciation

........................................................................

$371,748,301

Unrealized

depreciation

........................................................................

(195,285,727)

Net

unrealized

appreciation

(depreciation)

..........................................................

$176,462,574

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MS-26

Semiannual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

10.

Restricted

Securities

The

Fund

invests

in

securities

that

are

restricted

under

the

Securities

Act

of

1933

(1933

Act).

Restricted

securities

are

often

purchased

in

private

placement

transactions,

and

cannot

be

sold

without

prior

registration

unless

the

sale

is

pursuant

to

an

exemption

under

the

1933

Act.

Disposal

of

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

The Fund

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

At

June

30,

2022,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

11.

Other

Derivative

Information

At

June

30,

2022,

investments

in

derivative

contracts

are

reflected

in

the

Statement of

Assets

and

Liabilities

as

follows:

Shares

/

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Mutual

Shares

VIP

Fund

1,730,515

International

Automotive

Components

Group

Brazil

LLC

4/13/06

-

12/26/08

$

1,149,241

$

40,688

2,039

Wayne

Services

Legacy,

Inc.

...................

1/22/20

—

—

609,467

Windstream

Holdings,

Inc.

.....................

9/21/20

4,827,676

8,747,699

34,368

Windstream

Holdings,

Inc.,

9/21/55

..............

9/21/20

436,130

493,285

Total

Restricted

Securities

(Value

is

0.4%

of

Net

Assets)

..............

$6,413,047

$9,281,672

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Franklin

Mutual

Shares

VIP

Fund

Foreign

exchange

contracts

..

Variation

margin

on

futures

contracts

$

406,272

a

Variation

margin

on

futures

contracts

$

—

Unrealized

appreciation

on

OTC

forward

exchange

contracts

4,469,372

Unrealized

depreciation

on

OTC

forward

exchange

contracts

1,034,650

Total

....................

$4,875,644

$1,034,650

a

This

amount

reflects

the

cumulative

appreciation

(depreciation)

of

futures

contracts

as

reported

in

the

Schedule

of

Investments.

Only

the

variation

margin

receivable/payable

at

period

end

is

separately

reported

within

the

Statement

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MS-27

Semiannual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

For

the

period

ended

June

30,

2022,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

period

ended

June

30,

2022,

the

average

month

end

notional

amount

of

futures

contracts

represented

$18,513,883.

The

average

month

end

contract

value

of

forward

exchange

contracts

was

$126,900,552.

See

Note

1(c)

regarding

derivative

financial

instruments.

12.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

13.

Redemption

In-Kind

During

the

year

ended

December

31,

2021,

the

Fund

realized

$91,591,427

of

net

gains

resulting

from

a

redemption

in-kind

in

which

a

shareholder

redeemed

fund

shares

for

cash

and

securities

held

by

the

Fund.

Because

such

gains

are

not

taxable

to

the

Fund

and

are

not

distributed

to

remaining

shareholders,

they

are

reclassified

from

accumulated

net

realized

gains

to

paid-

in

capital.

14.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Period

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Period

Franklin

Mutual

Shares

VIP

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Futures

contracts

$1,012,849

Futures

contracts

$754,386

Forward

exchange

contracts

2,973,232

Forward

exchange

contracts

1,780,312

Total

.......................

$3,986,081

$2,534,698

11.

Other

Derivative

Information

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MS-28

Semiannual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Mutual

Shares

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Auto

Components

......................

$

—

$

—

$

40,688

$

40,688

Automobiles

..........................

39,085,920

—

—

39,085,920

Banks

...............................

103,652,396

34,173,471

—

137,825,867

Building

Products

......................

37,665,808

—

—

37,665,808

Capital

Markets

........................

43,096,279

—

—

43,096,279

Chemicals

...........................

43,481,741

—

—

43,481,741

Commercial

Services

&

Supplies

...........

22,765,166

—

—

22,765,166

Containers

&

Packaging

.................

35,673,879

—

—

35,673,879

Diversified

Financial

Services

.............

38,415,245

—

—

38,415,245

Diversified

Telecommunication

Services

.....

—

—

8,747,699

8,747,699

Electric

Utilities

........................

23,974,074

—

—

23,974,074

Electrical

Equipment

....................

25,142,918

—

—

25,142,918

Electronic

Equipment,

Instruments

&

Components

........................

32,439,078

—

—

32,439,078

Energy

Equipment

&

Services

.............

35,425,823

—

—

35,425,823

Entertainment

.........................

65,606,924

—

—

65,606,924

Equity

Real

Estate

Investment

Trusts

(REITs)

.

35,241,120

—

—

35,241,120

Food

Products

........................

57,141,386

—

—

57,141,386

Health

Care

Equipment

&

Supplies

.........

42,795,852

—

—

42,795,852

Health

Care

Providers

&

Services

..........

144,357,916

—

—

144,357,916

Household

Durables

....................

43,051,829

—

—

43,051,829

Insurance

............................

111,029,132

—

—

111,029,132

Internet

&

Direct

Marketing

Retail

..........

25,106,592

—

—

25,106,592

IT

Services

...........................

147,423,192

—

—

147,423,192

Machinery

............................

34,043,478

—

—

34,043,478

Media

...............................

97,927,976

—

—

97,927,976

Oil,

Gas

&

Consumable

Fuels

.............

35,416,234

62,163,519

—

97,579,753

Pharmaceuticals

.......................

160,424,387

—

—

160,424,387

Professional

Services

...................

37,524,171

—

—

37,524,171

Real

Estate

Management

&

Development

....

19,986,882

—

—

19,986,882

Software

.............................

73,367,731

—

—

73,367,731

Specialty

Retail

........................

—

—

—

a

—

Technology

Hardware,

Storage

&

Peripherals

.

38,599,661

—

—

38,599,661

Textiles,

Apparel

&

Luxury

Goods

..........

42,655,607

—

—

42,655,607

Tobacco

.............................

28,972,800

38,456,606

—

67,429,406

Wireless

Telecommunication

Services

.......

60,144,223

—

—

60,144,223

Warrants

:

Diversified

Telecommunication

Services

.....

—

—

493,285

493,285

14.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MS-29

Semiannual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the period.

15.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

In June

2022,

FASB

issued

ASU

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

16.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

.

Level

1

Level

2

Level

3

Total

Franklin

Mutual

Shares

VIP

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Warrants:

Software

.............................

$

3,354

$

—

$

—

$

3,354

Corporate

Bonds

........................

—

53,398,812

—

53,398,812

Senior

Floating

Rate

Interests

...............

—

30,253,490

—

30,253,490

Asset-Backed

Securities

..................

—

1,894,014

—

1,894,014

Companies

in

Liquidation

..................

—

—

—

a

—

Short

Term

Investments

...................

—

14,078,956

—

14,078,956

Total

Investments

in

Securities

...........

$1,781,638,774

$234,418,868

b

$9,281,672

$2,025,339,314

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

4,469,372

$

—

$

4,469,372

Futures

contracts

........................

406,272

—

—

406,272

Total

Other

Financial

Instruments

.........

$406,272

$4,469,372

$—

$4,875,644

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

1,034,650

$

—

$

1,034,650

Total

Other

Financial

Instruments

.........

$—

$1,034,650

$—

$1,034,650

a

Includes

securities

determined

to

have

no

value

at

June

30,

2022.

b

Includes

foreign

securities

valued

at

$134,793,596,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

14.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

MS-30

Semiannual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

Abbreviations

Counterparty

BOFA

Bank

of

America

Corp.

HSBK

HSBC

Bank

plc

SSBT

State

Street

Bank

and

Trust

Co.

UBSW

UBS

AG

Cu

r

rency

EUR

Euro

GBP

British

Pound

USD

United

States

Dollar

Selected

Portfolio

ADR

American

Depositary

Receipt

CME

Chicago

Mercantile

Exchange

FHLB

Federal

Home

Loan

Banks

LIBOR

London

Inter-Bank

Offered

Rate

SOFR

Secured

Overnight

Financing

Rate

FRD-1

Semiannual

Report

Franklin

Rising

Dividends

VIP

Fund

This

semiannual

report

for

Franklin

Rising

Dividends

VIP

Fund

covers

the

period

ended

June

30,

2022

.

Class

1

Performance

Summary

as

of

June

30,

2022

The

Fund’s

Class

1

Shares

posted

a

-17.57%

total

return

for

the

six-month

period

ended

June

30,

2022.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

FRD-2

Semiannual

Report

Franklin

Rising

Dividends

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

long-term

capital

appreciation.

Preservation

of

capital,

while

not

a

goal,

is

also

an

important

consideration.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

equity

securities,

mostly

common

stocks,

of

financially

sound

companies

that

have

paid

consistently

rising

dividends.

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues

and

can

fall

dramatically

if

the

company

fails

to

meet

those

projections.

Value

stocks

may

not

increase

in

value

as

anticipated

by

the

Fund

or

may

decline

even

further

if

other

investors

fail

to

recognize

the

company’s

value,

or

favor

investing

in

faster-growing

companies.

Companies

that

have

historically

paid

regular

dividends

to

shareholders

may

decrease

or

eliminate

dividend

payments

in

the

future.

Securities

issued

by

small

and

mid-capitalization

companies

may

be

more

volatile

in

price

than

those

of

larger

companies

and

may

involve

additional

risks.

To

the

extent

that

the

Fund

focuses

on

particular

countries,

regions,

industries,

sectors

or

types

of

investment

from

time

to

time,

the

Fund

may

be

subject

to

greater

risks

of

adverse

developments

in

such

areas

of

focus

than

a

fund

that

invests

in

a

wider

variety

of

countries,

regions,

industries,

sectors

or

investments.

Investing

in

foreign

securities

typically

involves

more

risks

than

investing

in

U.S.

securities,

including

risks

related

to

currency

exchange

rates

and

policies,

country

or

government

specific

issues,

less

favorable

trading

practices

or

regulation

and

greater

price

volatility.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia's

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia's

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

In

comparison,

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

)

posted

a

-19.96%

total

return

for

the

same

period.

1

Please

note

the

Fund

employs

a

bottom-up

stock

selection

process,

and

the

managers

invest

in

securities

without

regard

to

benchmark

comparisons.

*Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

posted

a

-19.96%

total

return

for

the

six

months

ended

June

30,

2022.

1

Concerns

surrounding

higher

inflation,

geopolitical

stability

and

rising

interest

Portfolio

Composition

6/30/22

%

of

Total

Net

Assets

Software

12.4%

Health

Care

Equipment

&

Supplies

9.5%

Chemicals

9.5%

Semiconductors

&

Semiconductor

Equipment

6.1%

IT

Services

5.9%

Aerospace

&

Defense

4.4%

Health

Care

Providers

&

Services

3.5%

Pharmaceuticals

3.3%

Specialty

Retail

3.2%

Oil,

Gas

&

Consumable

Fuels

3.1%

Household

Products

3.1%

Machinery

2.8%

Building

Products

2.5%

Hotels,

Restaurants

&

Leisure

2.4%

Other*

26.8%

Short-Term

Investments

&

Other

Net

Assets

1.5%

1.

Source:

Morningstar.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

Franklin

Rising

Dividends

VIP

Fund

FRD-3

Semiannual

Report

rates

pressured

stocks,

particularly

in

the

second

half

of

the

period.

Elevated

demand

combined

with

supply

chain

disruptions

led

to

the

highest

inflation

since

1981

and

borrowing

costs

increased

from

historically

low

levels.

Russia’s

invasion

of

Ukraine

injected

further

uncertainty

into

financial

markets,

provoking

significant

volatility

in

commodity

and

equity

prices.

Gross

domestic

product

growth

contracted

in

the

first

quarter

of

2022

amid

lower

investments

in

inventories

and

a

growing

trade

deficit.

Private

domestic

investment

slowed

sharply,

while

government

spending

declined

in

the

first

quarter.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

The

inflation

rate

was

elevated

during

the

six-month

period

amid

increased

demand

and

supply

chain

bottlenecks.

U.S.

consumer

spending

on

goods

remained

strong

during

the

first

half

of

the

period,

adding

to

pressure

on

the

prices

of

many

products.

Energy

costs

also

rose,

as

oil

prices

increased

significantly,

driven

by

greater

global

demand

and

sanctions

on

Russia,

one

of

the

world’s

largest

oil

producers.

The

personal

consumption

expenditures

index,

a

measure

of

inflation,

rose

dramatically

during

the

period,

representing

the

highest

12-month

increase

in

decades.

The

unemployment

rate

declined

from

3.9%

in

December

2021

to

3.6%

in

June

2022,

but

a

relative

lack

of

available

workers

fueled

wage

growth,

adding

to

some

investors’

inflation

concerns.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

2022

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

will

continue

to

reduce

its

bond

holdings,

and

it

anticipated

instituting

further

interest-rate

increases

at

future

meetings.

Investment

Strategy

We

are

research-driven,

fundamental

investors.

As

bottom-

up

investors

focusing

primarily

on

individual

securities,

we

look

for

companies

that

we

believe

meet

our

criteria

and

are

fundamentally

sound

and

attempt

to

acquire

them

at

attractive

prices.

These

criteria

include

consistent,

substantial

dividend

increases;

reinvested

earnings;

and

either

long-term

debt

that

is

no

more

than

50%

of

total

capitalization

or

senior

debt

that

has

been

rated

investment

grade

by

at

least

one

of

the

major

bond

rating

organizations.

In

following

these

criteria,

the

Fund

does

not

necessarily

focus

on

companies

whose

securities

pay

a

high

dividend

rate

but

rather

on

companies

that

consistently

increase

their

dividends.

Manager’s

Discussion

Over

the

six-month

period

through

June

30,

2022,

the

energy

sector

contributed

to

performance,

while

information

technology

(IT),

consumer

discretionary

and

industrials

sectors

detracted

from

performance

on

an

absolute

basis.

Some

companies

that

detracted

from

absolute

performance

included

Microsoft,

Accenture

and

Target.

Enterprise

software

company

Microsoft

detracted

as

shares

continued

to

decline

from

record-high

levels

in

late

2021,

pressured

by

concerns

of

a

potential

recession,

persistent

inflation,

rising

interest

rates

and

a

more

hawkish

U.S.

Federal

Reserve.

Supply

chain

issues,

exacerbated

by

COVID-19

lockdowns

in

China,

a

key

chip

supplier,

also

impacted

investor

sentiment.

Microsoft

reduced

guidance

for

the

second

quarter

in

early

June

2022,

citing

the

strength

of

the

U.S.

dollar,

which

could

weigh

on

overseas

revenues

and

profits.

Concerns

about

slowing

growth

for

personal

computer

shipments

and

growth

for

its

Office

365

productivity

software

have

risen.

However,

we

continue

to

believe

that

the

trends

of

helping

business

customers

move

to

the

cloud

and

providing

workers

with

productivity

tools

should

support

attractive

growth

over

the

medium

to

longer

term.

Top

10

Holdings

6/30/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Microsoft

Corp.

8.8%

Software,

United

States

Roper

Technologies,

Inc.

3.6%

Software,

United

States

Accenture

plc

3.5%

IT

Services,

United

States

Linde

plc

3.3%

Chemicals,

United

Kingdom

Analog

Devices,

Inc.

3.1%

Semiconductors

&

Semiconductor

Equipment,

United

States

UnitedHealth

Group,

Inc.

3.0%

Health

Care

Providers

&

Services,

United

States

Texas

Instruments,

Inc.

3.0%

Semiconductors

&

Semiconductor

Equipment,

United

States

Raytheon

Technologies

Corp.

2.9%

Aerospace

&

Defense,

United

States

Stryker

Corp.

2.8%

Health

Care

Equipment

&

Supplies,

United

States

Becton

Dickinson

and

Co.

2.5%

Franklin

Rising

Dividends

VIP

Fund

FRD-4

Semiannual

Report

Global

IT

services

giant

Accenture

detracted

during

the

period,

declining

steadily

after

posting

a

record

high

in

December

2021

as

technology

stocks

were

pressured

by

several

macroeconomic

concerns.

The

company

reported

better-than-expected

earnings

during

the

period

and

boosted

guidance,

which

helped

reverse

the

decline

for

a

time.

June

earnings

showed

the

impact

of

suspending

operations

in

Russia,

while

a

strengthening

U.S.

dollar

on

the

Ireland-

based

company’s

non-U.S.

earnings

drove

a

lower-than-

expected

revenue

estimate

that

disappointed

investors.

Target

was

an

absolute

detractor

as

shares

declined

sharply

during

the

latter

part

of

the

six-month

period.

The

retailer

announced

quarterly

results

in

May

2022,

which

came

in

well

below

analysts'

forecasts,

as

profits

dropped

to

roughly

half

of

first-quarter

2021

levels

despite

increased

revenues.

The

company

twice

cut

its

outlook

during

the

second

quarter,

as

inflation,

supply-chain

issues

and

changing

consumer

habits

weighed

on

the

retail

industry.

Inventory

levels

rose

sharply.

However,

in

June

the

company's

board

of

directors

declared

a

quarterly

dividend

of

$1.08

per

common

share,

a

20%

increase

from

the

prior

quarter.

In

contrast,

some

companies

that

contributed

to

absolute

performance

included

Raytheon

Technologies,

AbbVie

and

Chevron.

Aerospace

and

defense

firm

Raytheon

Technologies

was

a

notable

relative

contributor.

The

company

reported

strong

profits

that

beat

consensus

estimates

in

both

January

and

April,

backed

by

strong

performance

in

its

aerospace

businesses

as

coronavirus

restrictions

eased

and

air

travel

began

to

recover,

driving

demand

for

commercial

aviation

parts

and

equipment.

The

ongoing

geopolitical

crisis

in

Europe

and

the

war

in

Ukraine

also

contributed

to

strong

performance

among

defense

contractors

during

the

period.

AbbVie

shares

reached

an

all-time

high

in

April

after

the

firm

reported

results

punctuated

by

better-than-expected

sales

of

its

blockbuster

biologic

treatment

Humira,

as

well

as

promising

test

results

that

could

expand

treatment

for

Vuity,

a

vision

drug.

Shares

retreated

later

in

the

period

after

first-

quarter

earnings

disappointed

and

the

company

reduced

full-year

guidance.

We

remain

positive

on

the

outlook

for

our

investment

given

what

we

regard

as

its

low

valuation

relative

to

long

term

earnings

and

cash

flow

growth.

We

are

confident

that

its

management

will

be

able

to

navigate

biosimilar

erosion

to

Humira

starting

in

2023

and

are

also

encouraged

by

management’s

strong

track

record

of

capital

allocation

and

strategic

execution.

Integrated

energy

firm

Chevron

saw

benefits

from

higher

oil

and

energy

prices

and

strong

demand.

In

April,

the

company

reported

its

highest

quarterly

earnings

since

2012.

Chevron’s

free

cash

flow

is

higher

than

it

has

been

in

many

years

amid

strong

financial

results,

in

part

because

the

company

has

maintained

capital

discipline

despite

strong

energy

prices,

with

a

focus

on

dividends

and

increasing

its

target

for

share

buybacks.

Consensus

earnings

estimates

have

risen

sharply.

Chevron

also

completed

the

acquisition

of

Renewable

Energy

Group

(not

a

Fund

holding

before

the

acquisition)

as

it

continues

efforts

to

grow

its

lower

carbon

energy

businesses.

Thank

you

for

your

participation

in

Franklin

Rising

Dividends

VIP

Fund.

We

look

forward

to

continuing

to

serve

your

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Health

Care

Equipment

&

Supplies,

United

States

Class

1

Fund

Expenses

Franklin

Rising

Dividends

VIP

Fund

FRD-5

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

1

$1,000

$824.30

$2.89

$1,021.63

$3.20

0.64%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Rising

Dividends

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FRD-6

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$36.74

$30.17

$27.90

$25.75

$29.21

$25.51

Income

from

investment

operations

a

Net

investment

income

b

.............

0.18

0.30

0.32

0.37

0.39

0.40

Net

realized

and

unrealized

gains

(losses)

(6.65)

7.68

3.76

6.77

(1.65)

4.76

Total

from

investment

operations

........

(6.47)

7.98

4.08

7.14

(1.26)

5.16

Less

distributions

from:

Net

investment

income

..............

(0.35)

(0.35)

(0.41)

(0.45)

(0.44)

(0.48)

Net

realized

gains

.................

(4.01)

(1.06)

(1.40)

(4.54)

(1.76)

(0.98)

Total

distributions

...................

(4.36)

(1.41)

(1.81)

(4.99)

(2.20)

(1.46)

Net

asset

value,

end

of

period

..........

$25.91

$36.74

$30.17

$27.90

$25.75

$29.21

Total

return

c

.......................

(17.57)%

27.10%

16.23%

29.58%

(4.84)%

20.85%

Ratios

to

average

net

assets

d

Expenses

e,f

........................

0.64%

0.63%

0.65%

0.63%

0.62%

0.62%

Net

investment

income

...............

1.08%

0.90%

1.20%

1.34%

1.38%

1.49%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$107,823

$141,433

$156,585

$150,864

$157,838

$216,015

Portfolio

turnover

rate

................

6.26%

3.92%

12.83%

7.26%

g

3.09%

g

3.36%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Rising

Dividends

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FRD-7

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$35.42

$29.14

$26.99

$25.04

$28.46

$24.89

Income

from

investment

operations

a

Net

investment

income

b

.............

0.13

0.21

0.24

0.29

0.31

0.33

Net

realized

and

unrealized

gains

(losses)

(6.41)

7.41

3.65

6.57

(1.61)

4.63

Total

from

investment

operations

........

(6.28)

7.62

3.89

6.86

(1.30)

4.96

Less

distributions

from:

Net

investment

income

..............

(0.25)

(0.28)

(0.33)

(0.37)

(0.36)

(0.41)

Net

realized

gains

.................

(4.01)

(1.06)

(1.41)

(4.54)

(1.76)

(0.98)

Total

distributions

...................

(4.26)

(1.34)

(1.74)

(4.91)

(2.12)

(1.39)

Net

asset

value,

end

of

period

..........

$24.88

$35.42

$29.14

$26.99

$25.04

$28.46

Total

return

c

.......................

(17.68)%

26.79%

15.97%

29.23%

(5.07)%

20.56%

Ratios

to

average

net

assets

d

Expenses

e,f

........................

0.89%

0.88%

0.90%

0.88%

0.87%

0.87%

Net

investment

income

...............

0.82%

0.66%

0.95%

1.09%

1.13%

1.24%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,073,009

$1,513,905

$1,365,745

$1,387,688

$1,106,334

$1,640,883

Portfolio

turnover

rate

................

6.26%

3.92%

12.83%

7.26%

g

3.09%

g

3.36%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Rising

Dividends

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FRD-8

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$35.49

$29.22

$27.08

$25.11

$28.54

$24.98

Income

from

investment

operations

a

Net

investment

income

b

.............

0.12

0.18

0.22

0.26

0.29

0.30

Net

realized

and

unrealized

gains

(losses)

(6.42)

7.42

3.65

6.60

(1.62)

4.65

Total

from

investment

operations

........

(6.30)

7.60

3.87

6.86

(1.33)

4.95

Less

distributions

from:

Net

investment

income

..............

(0.25)

(0.27)

(0.32)

(0.35)

(0.34)

(0.41)

Net

realized

gains

.................

(4.01)

(1.06)

(1.41)

(4.54)

(1.76)

(0.98)

Total

distributions

...................

(4.26)

(1.33)

(1.73)

(4.89)

(2.10)

(1.39)

Net

asset

value,

end

of

period

..........

$24.93

$35.49

$29.22

$27.08

$25.11

$28.54

Total

return

c

.......................

(17.71)%

26.63%

15.85%

29.16%

(5.16)%

20.40%

Ratios

to

average

net

assets

d

Expenses

e,f

........................

0.99%

0.98%

1.00%

0.98%

0.97%

0.97%

Net

investment

income

...............

0.74%

0.56%

0.85%

0.99%

1.03%

1.14%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$63,638

$72,589

$51,137

$46,539

$32,825

$36,407

Portfolio

turnover

rate

................

6.26%

3.92%

12.83%

7.26%

g

3.09%

g

3.36%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions

.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Rising

Dividends

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FRD-9

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

98.5%

Aerospace

&

Defense

4.4%

General

Dynamics

Corp.

................................

United

States

83,052

$

18,375,255

Raytheon

Technologies

Corp.

............................

United

States

380,146

36,535,832

54,911,087

Air

Freight

&

Logistics

2.3%

United

Parcel

Service,

Inc.,

B

............................

United

States

154,517

28,205,533

Banks

1.2%

JPMorgan

Chase

&

Co.

.................................

United

States

136,025

15,317,775

Beverages

2.0%

PepsiCo,

Inc.

........................................

United

States

146,930

24,487,354

Biotechnology

1.7%

AbbVie,

Inc.

.........................................

United

States

138,836

21,264,122

Building

Products

2.5%

Carlisle

Cos.,

Inc.

.....................................

United

States

58,602

13,983,023

Johnson

Controls

International

plc

.........................

United

States

363,610

17,409,647

31,392,670

Capital

Markets

1.2%

Nasdaq,

Inc.

.........................................

United

States

95,500

14,567,570

Chemicals

9.5%

Air

Products

and

Chemicals,

Inc.

..........................

United

States

125,467

30,172,304

Albemarle

Corp.

......................................

United

States

116,410

24,327,362

Ecolab,

Inc.

..........................................

United

States

96,509

14,839,224

Linde

plc

............................................

United

Kingdom

143,832

41,356,015

Sherwin-Williams

Co.

(The)

..............................

United

States

34,800

7,792,068

118,486,973

Commercial

Services

&

Supplies

1.9%

Cintas

Corp.

.........................................

United

States

63,772

23,820,755

Electrical

Equipment

0.7%

nVent

Electric

plc

.....................................

United

States

264,326

8,281,334

Food

&

Staples

Retailing

1.3%

Walmart,

Inc.

........................................

United

States

137,308

16,693,907

Food

Products

2.0%

McCormick

&

Co.,

Inc.

.................................

United

States

226,094

18,822,325

Mondelez

International,

Inc.,

A

............................

United

States

93,600

5,811,624

24,633,949

Health

Care

Equipment

&

Supplies

9.5%

Abbott

Laboratories

....................................

United

States

240,895

26,173,242

Becton

Dickinson

and

Co.

...............................

United

States

127,215

31,362,314

Medtronic

plc

........................................

United

States

287,154

25,772,071

Stryker

Corp.

........................................

United

States

178,145

35,438,385

118,746,012

Health

Care

Providers

&

Services

3.5%

CVS

Health

Corp.

.....................................

United

States

68,493

6,346,561

UnitedHealth

Group,

Inc.

................................

United

States

73,100

37,546,353

43,892,914

Hotels,

Restaurants

&

Leisure

2.4%

McDonald's

Corp.

.....................................

United

States

99,999

24,687,753

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Rising

Dividends

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FRD-10

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Hotels,

Restaurants

&

Leisure

(continued)

Starbucks

Corp.

......................................

United

States

73,400

$

5,607,026

30,294,779

Household

Products

3.1%

Colgate-Palmolive

Co.

.................................

United

States

192,340

15,414,128

Procter

&

Gamble

Co.

(The)

.............................

United

States

156,794

22,545,409

37,959,537

Industrial

Conglomerates

2.2%

Honeywell

International,

Inc.

.............................

United

States

159,975

27,805,255

Insurance

0.8%

Erie

Indemnity

Co.,

A

...................................

United

States

49,070

9,430,763

IT

Services

5.9%

Accenture

plc,

A

......................................

United

States

157,478

43,723,767

Visa,

Inc.,

A

..........................................

United

States

152,462

30,018,243

73,742,010

Life

Sciences

Tools

&

Services

2.3%

Danaher

Corp.

.......................................

United

States

12,900

3,270,408

West

Pharmaceutical

Services,

Inc.

........................

United

States

84,401

25,520,330

28,790,738

Machinery

2.8%

Donaldson

Co.,

Inc.

...................................

United

States

143,697

6,917,574

Dover

Corp.

.........................................

United

States

141,788

17,201,720

Pentair

plc

..........................................

United

States

224,794

10,288,821

34,408,115

Multiline

Retail

1.8%

Target

Corp.

.........................................

United

States

162,137

22,898,609

Oil,

Gas

&

Consumable

Fuels

3.1%

Chevron

Corp.

.......................................

United

States

115,894

16,779,133

EOG

Resources,

Inc.

..................................

United

States

109,861

12,133,049

Exxon

Mobil

Corp.

.....................................

United

States

114,261

9,785,312

38,697,494

Pharmaceuticals

3.3%

Johnson

&

Johnson

...................................

United

States

150,529

26,720,403

Pfizer,

Inc.

...........................................

United

States

262,315

13,753,175

40,473,578

Road

&

Rail

2.2%

JB

Hunt

Transport

Services,

Inc.

..........................

United

States

66,830

10,523,720

Norfolk

Southern

Corp.

.................................

United

States

72,547

16,489,208

27,012,928

Semiconductors

&

Semiconductor

Equipment

6.1%

Analog

Devices,

Inc.

...................................

United

States

263,819

38,541,318

Texas

Instruments,

Inc.

.................................

United

States

240,968

37,024,733

75,566,051

Software

12.4%

Microsoft

Corp.

.......................................

United

States

425,028

109,159,941

Roper

Technologies,

Inc.

................................

United

States

114,583

45,220,181

154,380,122

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Rising

Dividends

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FRD-11

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Specialty

Retail

3.2%

Lowe's

Cos.,

Inc.

......................................

United

States

146,600

$

25,606,622

Ross

Stores,

Inc.

.....................................

United

States

208,230

14,623,993

40,230,615

Technology

Hardware,

Storage

&

Peripherals

0.3%

Apple,

Inc.

..........................................

United

States

23,400

3,199,248

Textiles,

Apparel

&

Luxury

Goods

1.8%

NIKE,

Inc.,

B

.........................................

United

States

214,484

21,920,265

Trading

Companies

&

Distributors

1.1%

WW

Grainger,

Inc.

.....................................

United

States

30,193

13,720,605

Total

Common

Stocks

(Cost

$502,165,040)

.....................................

1,225,232,667

Short

Term

Investments

1.6%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

1.6%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

....

United

States

19,561,827

19,561,827

Total

Money

Market

Funds

(Cost

$19,561,827)

..................................

19,561,827

Total

Short

Term

Investments

(Cost

$19,561,827

)

................................

19,561,827

a

Total

Investments

(Cost

$521,726,867)

100.1%

..................................

$1,244,794,494

Other

Assets,

less

Liabilities

(0.1)%

...........................................

(325,147)

Net

Assets

100.0%

...........................................................

$1,244,469,347

a

See

Note

3(e)

regarding

investments

in

affiliated

management

investment

companies.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FRD-12

Franklin

Rising

Dividends

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$502,165,040

Cost

-

Non-controlled

affiliates

(Note

3e)

........................................................

19,561,827

Value

-

Unaffiliated

issuers

..................................................................

$1,225,232,667

Value

-

Non-controlled

affiliates

(Note

3e)

.......................................................

19,561,827

Cash

....................................................................................

7,771

Receivables:

Capital

shares

sold

........................................................................

306,114

Dividends

...............................................................................

954,918

Total

assets

..........................................................................

1,246,063,297

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

434,359

Management

fees

.........................................................................

672,502

Distribution

fees

..........................................................................

244,070

Reports

to

shareholders

fees

................................................................

195,943

Trustees'

fees

and

expenses

.................................................................

626

Accrued

expenses

and

other

liabilities

...........................................................

46,450

Total

liabilities

.........................................................................

1,593,950

Net

assets,

at

value

.................................................................

$1,244,469,347

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$400,337,095

Total

distributable

earnings

(losses)

.............................................................

844,132,252

Net

assets,

at

value

.................................................................

$1,244,469,347

Franklin

Rising

Dividends

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$107,822,750

Shares

outstanding

........................................................................

4,161,680

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$25.91

Class

2:

Net

assets,

at

value

.......................................................................

$1,073,009,003

Shares

outstanding

........................................................................

43,126,620

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$24.88

Class

4:

Net

assets,

at

value

.......................................................................

$63,637,594

Shares

outstanding

........................................................................

2,552,846

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$24.93

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

intergral

part

of

these

financial

statments.

Semiannual

Report

FRD-13

Franklin

Rising

Dividends

VIP

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

........................................................................

$12,439,398

Non-controlled

affiliates

(Note

3e)

.............................................................

14,648

Total

investment

income

...................................................................

12,454,046

Expenses:

Management

fees

(Note

3

a

)

...................................................................

4,564,429

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

1,577,291

    Class

4

................................................................................

117,555

Custodian

fees

(Note

4

)

......................................................................

4,021

Reports

to

shareholders

fees

..................................................................

46,011

Professional

fees

...........................................................................

32,868

Trustees'

fees

and

expenses

..................................................................

7,759

Other

....................................................................................

15,978

Total

expenses

.........................................................................

6,365,912

Expense

reductions

(Note

4

)

...............................................................

(21)

Expenses

waived/paid

by

affiliates

(Note

3e)

...................................................

(29,864)

Net

expenses

.........................................................................

6,336,027

Net

investment

income

................................................................

6,118,019

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

118,355,251

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(418,011,696)

Net

realized

and

unrealized

gain

(loss)

............................................................

(299,656,445)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(293,538,426)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FRD-14

Franklin

Rising

Dividends

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$6,118,019

$11,395,075

Net

realized

gain

(loss)

.................................................

118,355,251

171,565,322

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(418,011,696)

215,633,524

Net

increase

(decrease)

in

net

assets

resulting

from

ope

rations

................

(293,538,426)

398,593,921

Distributions

to

shareholders:

Class

1

.............................................................

(16,307,359)

(6,930,364)

Class

2

.............................................................

(157,005,061)

(59,905,574)

Class

4

.............................................................

(9,292,634)

(2,534,485)

Total

distributions

to

shareholders

..........................................

(182,605,054)

(69,370,423)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

7,193,331

(47,704,793)

Class

2

.............................................................

(28,055,959)

(136,274,181)

Class

4

.............................................................

13,547,660

9,216,825

Total

capital

share

transactions

............................................

(7,314,968)

(174,762,149)

Net

increase

(decrease)

in

net

assets

...................................

(483,458,448)

154,461,349

Net

assets:

Beginning

of

period

.....................................................

1,727,927,795

1,573,466,446

End

of

period

..........................................................

$1,244,469,347

$1,727,927,795

Franklin

Templeton

Variable

Insurance

Products

Trust

FRD-15

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

Franklin

Rising

Dividends

VIP

Fund

1.

Organization

and

Significant

Accounting

Policies

Franklin

Templeton

Variable

Insurance

Products

Trust

(Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen

separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Rising

Dividends

VIP

Fund

(Fund)

is

included

in

this

report.

Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

The

Fund

offers

three

classes

of

shares:

Class

1,

Class

2

and

Class

4.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege.  

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Investments

in

open-end

mutual

funds

are

valued

at

the

closing

NAV.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day. Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time. In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time. 

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FRD-16

Semiannual

Report

Franklin

Rising

Dividends

VIP

Fund

(continued)

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

d.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Estimated

expenses

are

accrued

daily.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FRD-17

Semiannual

Report

Franklin

Rising

Dividends

VIP

Fund

(continued)

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

e.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

f.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote

.

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

136,372

$4,470,721

244,064

$8,168,743

Shares

issued

in

reinvestment

of

distributions

..........

600,459

15,485,835

215,162

6,930,364

Shares

redeemed

...............................

(424,760)

(12,763,225)

(1,798,891)

(62,803,900)

Net

increase

(decrease)

..........................

312,071

$7,193,331

(1,339,665)

$(47,704,793)

Class

2

Shares:

Shares

sold

...................................

3,777,242

$124,208,143

1,868,187

$60,306,863

Shares

issued

in

reinvestment

of

distributions

..........

6,338,516

157,005,061

1,926,844

59,905,574

Shares

redeemed

...............................

(9,735,632)

(309,269,163)

(7,913,034)

(256,486,618)

Net

increase

(decrease)

..........................

380,126

$(28,055,959)

(4,118,003)

$(136,274,181)

Class

4

Shares:

Shares

sold

...................................

280,117

$8,865,687

463,060

$14,756,595

Shares

issued

in

reinvestment

of

distributions

..........

374,401

9,292,634

81,311

2,534,485

Shares

redeemed

...............................

(147,061)

(4,610,661)

(249,162)

(8,074,255)

Net

increase

(decrease)

..........................

507,457

$13,547,660

295,209

$9,216,825

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FRD-18

Semiannual

Report

Franklin

Rising

Dividends

VIP

Fund

(continued)

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was 0.628%

of

the

Fund’s

average daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

2

and

Class

4

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.35%

per

year

of

its

average

daily

net

assets

of

each

class.

The

Board

has

agreed

to

limit

the

current

rate

to

0.25%

per

year

for

Class

2.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

e.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.750%

Up

to

and

including

$500

million

0.625%

Over

$500

million,

up

to

and

including

$1

billion

0.500%

Over

$1

billion,

up

to

and

including

$5

billion

0.490%

In

excess

of

$5

billion

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FRD-19

Semiannual

Report

Franklin

Rising

Dividends

VIP

Fund

(continued)

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

June

30,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

At

June

30,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatment

of

corporate

actions.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities

for

the

period

ended

June

30,

2022,

aggregated

$91,208,701

and

$269,493,485,

respectively.

7.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Rising

Dividends

VIP

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$

19,398,008

$

252,022,008

$

(251,858,189)

$

—

$

—

$

19,561,827

19,561,827

$

14,648

Total

Affiliated

Securities

...

$19,398,008

$252,022,008

$(251,858,189)

$—

$—

$19,561,827

$14,648

Cost

of

investments

..........................................................................

$524,270,736

Unrealized

appreciation

........................................................................

$732,264,308

Unrealized

depreciation

........................................................................

(11,740,549)

Net

unrealized

appreciation

(depreciation)

..........................................................

$720,523,759

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FRD-20

Semiannual

Report

Franklin

Rising

Dividends

VIP

Fund

(continued)

8.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

9.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

10.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

At

June

30,

2022,

all

of

the

Fund’s

investments

in

financial

instruments

carried

at

fair

value

were

valued

using

Level

1

inputs.

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

11.

New

Accounting

Pronouncements

In June

2022,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FRD-21

Semiannual

Report

Franklin

Rising

Dividends

VIP

Fund

(continued)

12.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

FSV-1

Semiannual

Report

Franklin

Small

Cap

Value

VIP

Fund

This

semiannual

report

for

Franklin

Small

Cap

Value

VIP

Fund

covers

the

period

ended

June

30,

2022

.

The

Fund

closed

to

new

insurance

company

subaccounts

on

June

20,

2021.

Existing

insurance

company

subaccounts

who

had

an

open

and

funded

account

on

June

20,

2021,

can

continue

to

make

additional

purchases.

Class

1

Performance

Summary

as

of

June

30,

2022

The

Fund’s

Class

1

Shares

posted

a

-17.26%

total

return

for

the

six-month

period

ended

June

30,

2022.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

FSV-2

Semiannual

Report

Franklin

Small

Cap

Value

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

long-term

total

return.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

investments

of

small-capitalization

companies.

For

this

Fund,

small-capitalization

companies

are

those

with

market

capitalizations

not

exceeding

either

the

highest

market

capitalization

in

the

Russell

2000

®

Index

or

the

12-month

average

of

the

highest

market

capitalization

in

the

Russell

2000

®

Index,

whichever

is

greater,

at

the

time

of

purchase.

The

Fund

generally

invests

in

equity

securities

of

companies

that

the

Fund’s

investment

manager

believes

are

undervalued

at

the

time

of

purchase

and

have

the

potential

for

capital

appreciation.

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

Securities

issued

by

small-capitalization

companies

may

be

more

volatile

in

price

than

those

of

larger

companies

and

may

involve

substantial

risks.

Such

risks

may

include

greater

sensitivity

to

economic

conditions,

less

certain

growth

prospects,

lack

of

depth

of

management

and

funds

for

growth

and

development

and

limited

or

less

developed

product

lines

and

markets.

A

value

stock

may

not

increase

in

price

as

anticipated

by

the

investment

manager

if

other

investors

fail

to

recognize

the

company’s

value

and

bid

up

the

price,

the

markets

favor

faster-growing

companies,

or

the

factors

that

the

investment

manager

believes

will

increase

the

price

of

the

security

do

not

occur

or

do

not

have

the

anticipated

effect.

Investing

in

foreign

securities

typically

involves

more

risks

than

investing

in

U.S.

securities,

including

risks

related

to

currency

exchange

rates

and

policies,

country

or

government

specific

issues,

less

favorable

trading

practices

or

regulation

and

greater

price

volatility.

A

REIT’s

performance

depends

on

the

types,

values

and

locations

of

the

properties

it

owns

and

how

well

those

properties

are

managed.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

*Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

In

comparison,

the

Russell

2000

®

Value

Index

posted

a

-17.31%

total

return

for

the

same

period.

1

Please

note

the

Fund

employs

a

bottom-up

stock

Portfolio

Composition

6/30/22

%

of

Total

Net

Assets

Banks

11.3%

Insurance

7.6%

Chemicals

7.4%

Hotels,

Restaurants

&

Leisure

6.2%

Electronic

Equipment,

Instruments

&

Components

5.7%

Trading

Companies

&

Distributors

5.6%

Machinery

5.0%

Construction

&

Engineering

4.8%

Energy

Equipment

&

Services

4.6%

Oil,

Gas

&

Consumable

Fuels

4.6%

Health

Care

Equipment

&

Supplies

4.4%

Software

4.2%

Communications

Equipment

3.5%

Building

Products

3.1%

Other*

20.3%

Short-Term

Investments

&

Other

Net

Assets

1.7%

1.

Source:

Morningstar.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

Franklin

Small

Cap

Value

VIP

Fund

FSV-3

Semiannual

Report

selection

process,

and

the

managers

invest

in

securities

without

regard

to

benchmark

comparisons.

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index,

posted

a

-19.96%

total

return

for

the

six

months

ended

June

30,

2022.

1

Concerns

surrounding

higher

inflation,

geopolitical

stability

and

rising

interest

rates

pressured

stocks,

particularly

in

the

second

half

of

the

period.

Elevated

demand

combined

with

supply

chain

disruptions

led

to

the

highest

inflation

since

1981

and

borrowing

costs

increased

from

historically

low

levels.

Russia’s

invasion

of

Ukraine

injected

further

uncertainty

into

financial

markets,

provoking

significant

volatility

in

commodity

and

equity

prices.

Gross

domestic

product

growth

contracted

in

the

first

quarter

of

2022

amid

lower

investments

in

inventories

and

a

growing

trade

deficit.

Private

domestic

investment

slowed

sharply,

while

government

spending

declined

in

the

first

quarter.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

The

inflation

rate

was

elevated

during

the

six-month

period

amid

increased

demand

and

supply

chain

bottlenecks.

U.S.

consumer

spending

on

goods

remained

strong

during

the

first

half

of

the

period,

adding

to

pressure

on

the

prices

of

many

products.

Energy

costs

also

rose,

as

oil

prices

increased

significantly,

driven

by

greater

global

demand

and

sanctions

on

Russia,

one

of

the

world’s

largest

oil

producers.

The

personal

consumption

expenditures

index,

a

measure

of

inflation,

rose

dramatically

during

the

period,

representing

the

highest

12-month

increase

in

decades.

The

unemployment

rate

declined

from

3.9%

in

December

2021

to

3.6%

in

June

2022,

but

a

relative

lack

of

available

workers

fueled

wage

growth,

adding

to

some

investors’

inflation

concerns.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

2022

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

will

continue

to

reduce

its

bond

holdings,

and

it

anticipated

instituting

further

interest-rate

increases

at

future

meetings.

Investment

Strategy

Our

strategy

is

to

invest

in

small-capitalization

companies

that

we

believe

are

undervalued

at

the

time

of

purchase

and

have

the

potential

for

capital

appreciation.

A

stock

is

undervalued

when

it

trades

at

less

than

the

price

at

which

the

investment

manager

believes

it

would

trade

if

the

market

reflected

all

factors

relating

to

the

company’s

worth.

Following

this

strategy,

the

Fund

invests

in

companies

that

the

investment

manager

believes

have,

for

example:

stock

prices

that

are

low

relative

to

current,

or

historical

or

future

earnings,

book

value,

cash

flow

or

sales;

recent

sharp

price

declines

but

the

potential

for

good

long-term

earnings

prospects;

and

valuable

intangibles

not

reflected

in

the

stock

price.

The

Fund

also

may

invest

in

real

estate

investment

trusts

(REITs).

Manager’s

Discussion

During

the

six-month

period,

relative

contributors

included

stock

selection

in

financials,

an

underweighting

and

stock

selection

within

health

care

and

a

significant

underweighting

in

communication

services.

Conversely,

stock

selection

and

an

overweighting

in

consumer

discretionary,

stock

selection

in

industrials

and

an

underweighting

in

utilities

curbed

relative

performance.

Crescent

Point

Energy

(not

part

of

the

index),

a

Canada-

based

exploration

and

production

company,

boosted

relative

results.

Multiple

factors

contributed

to

its

strong

performance,

including

a

surprise

dividend

boost,

a

share

Top

10

Holdings

6/30/22

Company

Industry

%

of

Total

Net

Assets

a

aa

NetScout

Systems,

Inc.

3.5%

Communications

Equipment

Hanover

Insurance

Group,

Inc.

(The)

3.0%

Insurance

McGrath

RentCorp

3.0%

Trading

Companies

&

Distributors

WillScot

Mobile

Mini

Holdings

Corp.

3.0%

Construction

&

Engineering

Crescent

Point

Energy

Corp.

2.8%

Oil,

Gas

&

Consumable

Fuels

Knowles

Corp.

2.7%

Electronic

Equipment,

Instruments

&

Components

Integer

Holdings

Corp.

2.4%

Health

Care

Equipment

&

Supplies

ACI

Worldwide,

Inc.

2.4%

Software

Ashland

Global

Holdings,

Inc.

2.4%

Chemicals

Minerals

Technologies,

Inc.

2.3%

Chemicals

Franklin

Small

Cap

Value

VIP

Fund

FSV-4

Semiannual

Report

buyback

announcement,

a

reduction

in

debt,

a

positive

free

cash

flow

outlook

and

an

increase

in

oil

prices.

The

Hanover

Insurance

Group

(not

part

of

the

index),

a

property

and

casualty

insurer,

also

outperformed.

Shares

were

supported

by

a

favorable

commercial

lines

profitability

outlook

as

well

as

personal

automobile

results

that

were

better

than

expected.

While

The

Hanover’s

personal

automobile

loss

ratios

rose

on

a

year-over-year

basis

due

to

higher

loss

severity,

2021

fourth-quarter

underwriting

profitability

was

still

above

the

comparable

period

in

2019,

with

management

citing

lower

frequency

that

persisted

through

the

quarter.

In

conjunction

with

strong

fourth-quarter

results,

management

also

laid

out

a

favorable

2022

outlook

relative

to

consensus.

NexTier

Oilfield

Solutions,

an

oilfield

services

company,

contributed

to

relative

returns

in

the

period

driven

by

strength

in

oil

prices

and

increased

activity

levels

in

U.S.

shale

deposits.

The

company

hosted

its

investor

day

in

March

2022

and

was

positive

on

the

balanced

supply/demand

for

fracturing

fleets

and

improving

pricing

environment.

Conversely,

Summit

Materials,

a

vertically

integrated

supplier

of

aggregates,

cement

and

downstream

ready-mix

concrete

and

asphalt,

detracted

as

sentiment

changed

on

the

industry

following

the

passage

of

the

infrastructure

bill

in

November

2021

and

amid

fears

that

higher

oil

prices

will

put

pressure

on

margins.

Nonetheless,

we

remain

constructive

on

Summit.

The

company

is

in

the

early

days

of

an

operational

turnaround

under

new

management,

continues

to

reduce

debt,

and

profit

margins

and

returns

are

improving.

For

2022,

Summit

hedged

51%

of

its

diesel

purchases

at

prices

below

spot.

Lastly,

while

the

infrastructure

bill

is

not

likely

to

contribute

meaningfully

to

revenue

in

2022,

we

believe

government

spending

will

rise

significantly

for

the

period

of

2022

to

2026

compared

to

the

prior

five

years.

Denny’s,

a

full-service

family

restaurant

chain,

underperformed

during

the

period

after

reporting

a

weaker-

than-expected

quarter

ending

March

31,

2022.

Results

were

primarily

driven

by

a

decline

in

restaurant

level

margins

due

to

increased

commodity

and

labor

inflation

being

felt

throughout

the

restaurant

industry.

Jack

in

the

Box,

an

owner

and

franchisor

of

quick-service

restaurants,

underperformed

during

the

period

after

reporting

a

weaker-than-expected

2022

first

quarter.

During

the

quarter,

Jack

in

the

Box

saw

EBITDA

(earnings

before

interest,

taxes,

depreciation

and

amortization)

decline

by

15%

year-over-year,

as

it

faced

headwinds

from

challenging

comparisons

and

increased

commodity

and

labor

inflation.

Thank

you

for

your

participation

in

Franklin

Small

Cap

Value

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Class

1

Fund

Expenses

Franklin

Small

Cap

Value

VIP

Fund

FSV-5

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

)

.

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

)

.

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

1

$1,000

$827.40

$2.98

$1,021.54

$3.29

0.66%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Small

Cap

Value

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSV-6

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$18.43

$15.20

$15.73

$15.14

$20.43

$19.93

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.06

0.19

0.20

0.24

c

0.21

0.21

d

Net

realized

and

unrealized

gains

(losses)

(3.10)

3.71

0.31

3.35

(2.29)

1.82

Total

from

investment

operations

........

(3.04)

3.90

0.51

3.59

(2.08)

2.03

Less

distributions

from:

Net

investment

income

..............

(0.21)

(0.21)

(0.23)

(0.22)

(0.23)

(0.15)

Net

realized

gains

.................

(2.96)

(0.46)

(0.81)

(2.78)

(2.98)

(1.38)

Total

distributions

...................

(3.17)

(0.67)

(1.04)

(3.00)

(3.21)

(1.53)

Net

asset

value,

end

of

period

..........

$12.22

$18.43

$15.20

$15.73

$15.14

$20.43

Total

return

e

.......................

(17.26)%

25.67%

5.41%

26.72%

(12.69)%

10.92%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.66%

0.66%

0.68%

0.67%

0.66%

0.66%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.66%

g

0.66%

g

0.68%

g,h

0.67%

g,h

0.65%

h

0.65%

h

Net

investment

income

...............

0.70%

1.07%

1.54%

1.58%

c

1.13%

1.06%

d

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$60,579

$73,715

$50,572

$46,980

$40,644

$51,245

Portfolio

turnover

rate

................

24.65%

60.41%

69.40%

54.36%

47.82%

33.36%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.05

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.23%.

d

Net

investment

income

per

share

includes

approximately

$0.06

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

0.75%.

e

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Small

Cap

Value

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSV-7

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$17.54

$14.50

$15.05

$14.60

$19.80

$19.36

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.04

0.14

0.16

0.20

c

0.16

0.15

d

Net

realized

and

unrealized

gains

(losses)

(2.95)

3.53

0.30

3.20

(2.20)

1.77

Total

from

investment

operations

........

(2.91)

3.67

0.46

3.40

(2.04)

1.92

Less

distributions

from:

Net

investment

income

..............

(0.16)

(0.17)

(0.19)

(0.17)

(0.18)

(0.10)

Net

realized

gains

.................

(2.96)

(0.46)

(0.82)

(2.78)

(2.98)

(1.38)

Total

distributions

...................

(3.12)

(0.63)

(1.01)

(2.95)

(3.16)

(1.48)

Net

asset

value,

end

of

period

..........

$11.51

$17.54

$14.50

$15.05

$14.60

$19.80

Total

return

e

.......................

(17.39)%

25.37%

5.19%

26.35%

(12.88)%

10.65%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.91%

0.91%

0.93%

0.92%

0.91%

0.91%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.91%

g

0.91%

g

0.93%

g,h

0.92%

g,h

0.90%

h

0.90%

h

Net

investment

income

...............

0.44%

0.83%

1.28%

1.33%

c

0.88%

0.81%

d

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$895,913

$1,135,623

$1,103,373

$1,123,093

$978,675

$1,302,055

Portfolio

turnover

rate

................

24.65%

60.41%

69.40%

54.36%

47.82%

33.36%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.05

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

0.98%.

d

Net

investment

income

per

share

includes

approximately

$0.06

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

0.50%.

e

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Small

Cap

Value

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSV-8

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$18.14

$14.99

$15.51

$14.96

$20.22

$19.74

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.03

0.13

0.15

0.19

c

0.15

0.14

d

Net

realized

and

unrealized

gains

(losses)

(3.05)

3.64

0.32

3.30

(2.28)

1.81

Total

from

investment

operations

........

(3.02)

3.77

0.47

3.49

(2.13)

1.95

Less

distributions

from:

Net

investment

income

..............

(0.15)

(0.16)

(0.18)

(0.16)

(0.15)

(0.09)

Net

realized

gains

.................

(2.96)

(0.46)

(0.81)

(2.78)

(2.98)

(1.38)

Total

distributions

...................

(3.11)

(0.62)

(0.99)

(2.94)

(3.13)

(1.47)

Net

asset

value,

end

of

period

..........

$12.01

$18.14

$14.99

$15.51

$14.96

$20.22

Total

return

e

.......................

(17.40)%

25.17%

5.13%

26.23%

(13.01)%

10.56%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.01%

1.01%

1.03%

1.02%

1.01%

1.01%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.01%

g

1.01%

g

1.03%

g,h

1.02%

g,h

1.00%

h

1.00%

h

Net

investment

income

...............

0.35%

0.73%

1.18%

1.23%

c

0.78%

0.71%

d

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$32,015

$38,148

$29,461

$29,238

$24,592

$32,053

Portfolio

turnover

rate

................

24.65%

60.41%

69.40%

54.36%

47.82%

33.36%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.05

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

0.88%.

d

Net

investment

income

per

share

includes

approximately

$0.06

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

0.40%.

e

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Small

Cap

Value

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSV-9

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

98.3%

Aerospace

&

Defense

0.4%

QinetiQ

Group

plc

.....................................

United

Kingdom

886,602

$

3,964,663

Auto

Components

0.7%

a

Adient

plc

...........................................

United

States

199,118

5,899,867

LCI

Industries

........................................

United

States

10,514

1,176,306

7,076,173

Banks

11.3%

Atlantic

Union

Bankshares

Corp.

..........................

United

States

445,875

15,124,080

Camden

National

Corp.

.................................

United

States

191,504

8,435,751

Columbia

Banking

System,

Inc.

...........................

United

States

736,855

21,110,896

First

Interstate

BancSystem

,

Inc.,

A

........................

United

States

267,670

10,200,904

First

of

Long

Island

Corp.

(The)

...........................

United

States

317,915

5,573,050

German

American

Bancorp,

Inc.

..........................

United

States

189,677

6,483,160

Peoples

Bancorp,

Inc.

..................................

United

States

230,957

6,143,456

SouthState

Corp.

.....................................

United

States

280,334

21,627,768

TriCo

Bancshares

.....................................

United

States

170,046

7,760,900

Washington

Trust

Bancorp,

Inc.

...........................

United

States

197,439

9,550,124

112,010,089

Biotechnology

0.5%

a

Mirum

Pharmaceuticals,

Inc.

.............................

United

States

203,327

3,956,743

a

Rhythm

Pharmaceuticals,

Inc.

............................

United

States

328,692

1,364,072

5,320,815

Building

Products

3.1%

Apogee

Enterprises,

Inc.

................................

United

States

233,333

9,151,320

Insteel

Industries,

Inc.

..................................

United

States

24,093

811,212

a

Masonite

International

Corp.

.............................

United

States

13,523

1,038,972

UFP

Industries,

Inc.

....................................

United

States

290,821

19,816,543

30,818,047

Chemicals

7.4%

Ashland

Global

Holdings,

Inc.

............................

United

States

226,272

23,317,329

Avient

Corp.

.........................................

United

States

430,921

17,271,314

a

Elementis

plc

........................................

United

Kingdom

7,572,641

9,069,720

Minerals

Technologies,

Inc.

..............................

United

States

375,936

23,059,914

72,718,277

Communications

Equipment

3.5%

a

NetScout

Systems,

Inc.

.................................

United

States

1,028,438

34,812,625

Construction

&

Engineering

4.8%

a

Great

Lakes

Dredge

&

Dock

Corp.

........................

United

States

969,461

12,709,634

Primoris

Services

Corp.

.................................

United

States

231,391

5,035,068

a

WillScot

Mobile

Mini

Holdings

Corp.

.......................

United

States

901,925

29,240,408

46,985,110

Construction

Materials

1.8%

a

Summit

Materials,

Inc.,

A

................................

United

States

756,884

17,627,828

Electric

Utilities

0.1%

IDACORP,

Inc.

.......................................

United

States

10,257

1,086,422

Electrical

Equipment

0.4%

Regal

Rexnord

Corp.

..................................

United

States

36,258

4,116,008

Electronic

Equipment,

Instruments

&

Components

5.7%

Benchmark

Electronics,

Inc.

.............................

United

States

635,574

14,338,549

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Small

Cap

Value

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSV-10

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Electronic

Equipment,

Instruments

&

Components

(continued)

CTS

Corp.

..........................................

United

States

157,675

$

5,368,834

a

II-VI,

Inc.

............................................

United

States

180,569

9,199,990

a

Knowles

Corp.

.......................................

United

States

1,565,705

27,133,668

56,041,041

Energy

Equipment

&

Services

4.6%

Hunting

plc

..........................................

United

Kingdom

2,577,025

6,774,834

a

Natural

Gas

Services

Group,

Inc.

.........................

United

States

153,048

1,683,528

a

NexTier

Oilfield

Solutions,

Inc.

............................

United

States

1,630,118

15,502,422

a

TechnipFMC

plc

......................................

United

Kingdom

3,204,540

21,566,554

45,527,338

Equity

Real

Estate

Investment

Trusts

(REITs)

2.8%

Alexander

&

Baldwin,

Inc.

...............................

United

States

408,210

7,327,370

Highwoods

Properties,

Inc.

..............................

United

States

139,905

4,783,352

STAG

Industrial,

Inc.

...................................

United

States

31,915

985,535

a

Sunstone

Hotel

Investors,

Inc.

............................

United

States

1,446,246

14,346,760

27,443,017

Food

Products

3.0%

Glanbia

plc

..........................................

Ireland

1,834,419

19,916,944

Maple

Leaf

Foods,

Inc.

.................................

Canada

502,542

9,881,400

29,798,344

Health

Care

Equipment

&

Supplies

4.4%

a

Envista

Holdings

Corp.

.................................

United

States

450,753

17,372,021

a

Integer

Holdings

Corp.

.................................

United

States

341,510

24,131,096

a

Integra

LifeSciences

Holdings

Corp.

.......................

United

States

35,771

1,932,707

43,435,824

Hotels,

Restaurants

&

Leisure

6.2%

a

Brinker

International,

Inc.

...............................

United

States

391,883

8,633,182

a

Dalata

Hotel

Group

plc

.................................

Ireland

2,336,982

8,510,009

a

Denny's

Corp.

........................................

United

States

1,231,098

10,685,931

a

Hilton

Grand

Vacations,

Inc.

.............................

United

States

385,078

13,758,837

Jack

in

the

Box,

Inc.

...................................

United

States

341,585

19,149,255

60,737,214

Household

Durables

0.9%

Century

Communities,

Inc.

..............................

United

States

39,881

1,793,449

a

M/I

Homes,

Inc.

.......................................

United

States

81,331

3,225,587

a

Meritage

Homes

Corp.

.................................

United

States

25,747

1,866,657

a

Taylor

Morrison

Home

Corp.

.............................

United

States

77,544

1,811,428

8,697,121

Insurance

7.6%

CNO

Financial

Group,

Inc.

..............................

United

States

589,690

10,667,492

Hanover

Insurance

Group,

Inc.

(The)

.......................

United

States

203,013

29,690,651

Horace

Mann

Educators

Corp.

...........................

United

States

472,170

18,121,885

Selective

Insurance

Group,

Inc.

...........................

United

States

186,782

16,238,827

74,718,855

IT

Services

0.9%

Bread

Financial

Holdings,

Inc.

............................

United

States

249,448

9,244,543

Leisure

Products

0.5%

Brunswick

Corp.

......................................

United

States

73,151

4,782,612

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Small

Cap

Value

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSV-11

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Machinery

5.0%

Astec

Industries,

Inc.

...................................

United

States

119,417

$

4,869,825

Columbus

McKinnon

Corp.

..............................

United

States

19,801

561,754

Greenbrier

Cos.,

Inc.

(The)

..............................

United

States

585,699

21,079,307

REV

Group,

Inc.

......................................

United

States

472,869

5,140,086

Timken

Co.

(The)

.....................................

United

States

338,771

17,971,802

49,622,774

Multi-Utilities

0.3%

Black

Hills

Corp.

......................................

United

States

36,340

2,644,462

Oil,

Gas

&

Consumable

Fuels

4.6%

Crescent

Point

Energy

Corp.

.............................

Canada

3,866,331

27,483,630

a

Green

Plains,

Inc.

.....................................

United

States

649,325

17,642,160

45,125,790

Professional

Services

2.7%

ICF

International,

Inc.

..................................

United

States

117,238

11,137,610

Stantec

,

Inc.

.........................................

Canada

358,251

15,694,355

26,831,965

Real

Estate

Management

&

Development

0.6%

a

Cushman

&

Wakefield

plc

...............................

United

States

407,982

6,217,646

Road

&

Rail

0.3%

a

Saia,

Inc.

...........................................

United

States

17,466

3,283,608

Semiconductors

&

Semiconductor

Equipment

1.3%

a

Cohu

,

Inc.

...........................................

United

States

320,121

8,883,358

a

Onto

Innovation,

Inc.

...................................

United

States

60,322

4,206,856

13,090,214

Software

4.2%

a

ACI

Worldwide,

Inc.

....................................

United

States

901,772

23,346,877

Software

AG

.........................................

Germany

559,489

18,551,514

41,898,391

Specialty

Retail

1.0%

a

Children's

Place,

Inc.

(The)

..............................

United

States

226,368

8,810,243

Group

1

Automotive,

Inc.

................................

United

States

6,189

1,050,892

9,861,135

Textiles,

Apparel

&

Luxury

Goods

0.5%

Carter's,

Inc.

.........................................

United

States

71,239

5,020,925

Thrifts

&

Mortgage

Finance

1.6%

WSFS

Financial

Corp.

..................................

United

States

396,656

15,901,939

Trading

Companies

&

Distributors

5.6%

Herc

Holdings,

Inc.

....................................

United

States

154,637

13,940,526

McGrath

RentCorp

....................................

United

States

387,097

29,419,372

a

Univar

Solutions,

Inc.

..................................

United

States

493,508

12,273,544

55,633,442

Total

Common

Stocks

(Cost

$944,213,016)

.....................................

972,094,257

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Small

Cap

Value

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSV-12

Short

Term

Investments

1.8%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

1.8%

b,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

....

United

States

18,017,359

$

18,017,359

Total

Money

Market

Funds

(Cost

$18,017,359)

..................................

18,017,359

Total

Short

Term

Investments

(Cost

$18,017,359

)

................................

18,017,359

a

Total

Investments

(Cost

$962,230,375)

100.1%

..................................

$990,111,616

Other

Assets,

less

Liabilities

(0.1)%

...........................................

(1,604,197)

Net

Assets

100.0%

...........................................................

$988,507,419

a

Non

-income

producing.

b

See

Note

3(e)

regarding

investments

in

affiliated

management

investment

companies.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSV-13

Franklin

Small

Cap

Value

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$944,213,016

Cost

-

Non-controlled

affiliates

(Note

3e)

........................................................

18,017,359

Value

-

Unaffiliated

issuers

..................................................................

$972,094,257

Value

-

Non-controlled

affiliates

(Note

3e)

.......................................................

18,017,359

Foreign

currency,

at

value

(cost

$438)

...........................................................

439

Receivables:

Investment

securities

sold

...................................................................

95,521

Capital

shares

sold

........................................................................

352,199

Dividends

...............................................................................

706,981

Total

assets

..........................................................................

991,266,756

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

984,637

Capital

shares

redeemed

...................................................................

575,515

Management

fees

.........................................................................

547,070

Distribution

fees

..........................................................................

204,059

Reports

to

shareholders

fees

................................................................

400,346

Trustees'

fees

and

expenses

.................................................................

717

Accrued

expenses

and

other

liabilities

...........................................................

46,993

Total

liabilities

.........................................................................

2,759,337

Net

assets,

at

value

.................................................................

$988,507,419

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$914,851,498

Total

distributable

earnings

(losses)

.............................................................

73,655,921

Net

assets,

at

value

.................................................................

$988,507,419

Franklin

Small

Cap

Value

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$60,579,182

Shares

outstanding

........................................................................

4,958,244

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.22

Class

2:

Net

assets,

at

value

.......................................................................

$895,912,911

Shares

outstanding

........................................................................

77,849,458

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.51

Class

4:

Net

assets,

at

value

.......................................................................

$32,015,326

Shares

outstanding

........................................................................

2,666,132

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.01

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSV-14

Franklin

Small

Cap

Value

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$141,458)

Unaffiliated

issuers

........................................................................

$7,673,851

Non-controlled

affiliates

(Note

3e)

.............................................................

18,955

Total

investment

income

...................................................................

7,692,806

Expenses:

Management

fees

(Note

3

a

)

...................................................................

3,651,314

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

1,293,229

    Class

4

................................................................................

62,208

Custodian

fees

(Note

4

)

......................................................................

5,362

Reports

to

shareholders

fees

..................................................................

61,099

Professional

fees

...........................................................................

36,296

Trustees'

fees

and

expenses

..................................................................

6,143

Other

....................................................................................

13,874

Total

expenses

.........................................................................

5,129,525

Expenses

waived/paid

by

affiliates

(Note

3e)

...................................................

(34,625)

Net

expenses

.........................................................................

5,094,900

Net

investment

income

................................................................

2,597,906

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

50,588,310

Foreign

currency

transactions

................................................................

(75,325)

Net

realized

gain

(loss)

..................................................................

50,512,985

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(264,033,992)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(6,305)

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(264,040,297)

Net

realized

and

unrealized

gain

(loss)

............................................................

(213,527,312)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(210,929,406)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSV-15

Franklin

Small

Cap

Value

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$2,597,906

$11,128,647

Net

realized

gain

(loss)

.................................................

50,512,985

199,440,417

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(264,040,297)

78,093,890

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(210,929,406)

288,662,954

Distributions

to

shareholders:

Class

1

.............................................................

(12,921,313)

(2,642,045)

Class

2

.............................................................

(192,841,212)

(45,737,885)

Class

4

.............................................................

(6,602,856)

(1,174,804)

Total

distributions

to

shareholders

..........................................

(212,365,381)

(49,554,734)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

12,579,170

12,468,955

Class

2

.............................................................

144,612,355

(189,934,717)

Class

4

.............................................................

7,124,278

2,438,024

Total

capital

share

transactions

............................................

164,315,803

(175,027,738)

Net

increase

(decrease)

in

net

assets

...................................

(258,978,984)

64,080,482

Net

assets:

Beginning

of

period

.....................................................

1,247,486,403

1,183,405,921

End

of

period

..........................................................

$988,507,419

$1,247,486,403

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

Franklin

Small

Cap

Value

VIP

Fund

FSV-16

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

 Franklin

Templeton

Variable

Insurance

Products

Trust

(Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen

separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Small

Cap

Value

VIP

Fund

(Fund)

is

included

in

this

report.

Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

The

Fund

offers

three

classes

of

shares:

Class

1,

Class

2

and

Class

4.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege. 

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Investments

in

open-end

mutual

funds

are

valued

at

the

closing

NAV.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day. Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time. In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSV-17

Semiannual

Report

Franklin

Small

Cap

Value

VIP

Fund

(continued)

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

d.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Dividend

income

and

capital

gain

distributions

are

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSV-18

Semiannual

Report

Franklin

Small

Cap

Value

VIP

Fund

(continued)

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

e.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

f.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote

.

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

294,635

$5,024,396

1,117,537

$20,319,471

Shares

issued

in

reinvestment

of

distributions

..........

986,475

12,607,150

136,633

2,503,125

Shares

redeemed

...............................

(321,916)

(5,052,376)

(581,230)

(10,353,641)

Net

increase

(decrease)

..........................

959,194

$12,579,170

672,940

$12,468,955

Class

2

Shares:

Shares

sold

...................................

2,811,037

$45,327,748

8,044,540

$137,488,496

Shares

issued

in

reinvestment

of

distributions

..........

16,016,712

192,841,212

2,619,581

45,737,885

Shares

redeemed

...............................

(5,726,314)

(93,556,605)

(21,998,749)

(373,161,098)

Net

increase

(decrease)

..........................

13,101,435

$144,612,355

(11,334,628)

$(189,934,717)

Class

4

Shares:

Shares

sold

...................................

291,473

$4,753,048

593,014

$10,356,001

Shares

issued

in

reinvestment

of

distributions

..........

525,705

6,602,855

65,014

1,174,804

Shares

redeemed

...............................

(253,448)

(4,231,625)

(521,176)

(9,092,781)

Net

increase

(decrease)

..........................

563,730

$7,124,278

136,852

$2,438,024

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSV-19

Semiannual

Report

Franklin

Small

Cap

Value

VIP

Fund

(continued)

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Franklin

Mutual

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was

0.641%

of

the

Fund’s

average

daily

net

assets.

b.

Administrative

Fees

Under

an

agreement

with

Franklin

Mutual,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Franklin

Mutual

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

2

and

Class

4

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.35%

per

year

of

its

average

daily

net

asset

of

each

class.

The

Board

has

agreed

to

limit

the

current

rate

to

0.25%

per

year

for

Class

2.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

e.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

Subsidiary

Affiliation

Franklin

Mutual

Advisers,

LLC

(Franklin

Mutual)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.750%

Up

to

and

including

$200

million

0.635%

Over

$200

million,

up

to

and

including

$700

million

0.600%

Over

$700

million,

up

to

and

including

$1.2

billion

0.575%

Over

$1.2

billion,

up

to

and

including

$1.3

billion

0.475%

In

excess

of

$1.3

billion

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSV-20

Semiannual

Report

Franklin

Small

Cap

Value

VIP

Fund

(continued)

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

4.

Expense

Offset

Arrangement

The

Fund

has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund’s

custodian

expenses.

During

the

period

ended

June

30,

2022,

there

were

no

credits

earned.

5.

Income

Taxes

At

June

30,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatment

of

wash

sales.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

aggregated

$276,655,480

and

$315,151,337,

respectively.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Small

Cap

Value

VIP

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$

24,112,773

$

129,018,816

$

(135,114,230)

$

—

$

—

$

18,017,359

18,017,359

$

18,955

Total

Affiliated

Securities

...

$24,112,773

$129,018,816

$(135,114,230)

$—

$—

$18,017,359

$18,955

Cost

of

investments

..........................................................................

$968,760,625

Unrealized

appreciation

........................................................................

$139,444,222

Unrealized

depreciation

........................................................................

(118,093,231)

Net

unrealized

appreciation

(depreciation)

..........................................................

$21,350,991

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSV-21

Semiannual

Report

Franklin

Small

Cap

Value

VIP

Fund

(continued)

7.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

8.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19,

has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general,

and

may

continue

for

an

unpredictable

duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the

Fund, its

ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its

ability

to

achieve its

investment

objectives.

9.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

10.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's assets

carried

at

fair

value,

is

as

follows:

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSV-22

Semiannual

Report

Franklin

Small

Cap

Value

VIP

Fund

(continued)

11.

New

Accounting

Pronouncements

In June

2022,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

Level

1

Level

2

Level

3

Total

Franklin

Small

Cap

Value

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

—

$

3,964,663

$

—

$

3,964,663

Auto

Components

......................

7,076,173

—

—

7,076,173

Banks

...............................

112,010,089

—

—

112,010,089

Biotechnology

.........................

5,320,815

—

—

5,320,815

Building

Products

......................

30,818,047

—

—

30,818,047

Chemicals

...........................

63,648,557

9,069,720

—

72,718,277

Communications

Equipment

..............

34,812,625

—

—

34,812,625

Construction

&

Engineering

...............

46,985,110

—

—

46,985,110

Construction

Materials

..................

17,627,828

—

—

17,627,828

Electric

Utilities

........................

1,086,422

—

—

1,086,422

Electrical

Equipment

....................

4,116,008

—

—

4,116,008

Electronic

Equipment,

Instruments

&

Components

........................

56,041,041

—

—

56,041,041

Energy

Equipment

&

Services

.............

45,527,338

—

—

45,527,338

Equity

Real

Estate

Investment

Trusts

(REITs)

.

27,443,017

—

—

27,443,017

Food

Products

........................

9,881,400

19,916,944

—

29,798,344

Health

Care

Equipment

&

Supplies

.........

43,435,824

—

—

43,435,824

Hotels,

Restaurants

&

Leisure

.............

60,737,214

—

—

60,737,214

Household

Durables

....................

8,697,121

—

—

8,697,121

Insurance

............................

74,718,855

—

—

74,718,855

IT

Services

...........................

9,244,543

—

—

9,244,543

Leisure

Products

.......................

4,782,612

—

—

4,782,612

Machinery

............................

49,622,774

—

—

49,622,774

Multi-Utilities

..........................

2,644,462

—

—

2,644,462

Oil,

Gas

&

Consumable

Fuels

.............

45,125,790

—

—

45,125,790

Professional

Services

...................

26,831,965

—

—

26,831,965

Real

Estate

Management

&

Development

....

6,217,646

—

—

6,217,646

Road

&

Rail

..........................

3,283,608

—

—

3,283,608

Semiconductors

&

Semiconductor

Equipment

.

13,090,214

—

—

13,090,214

Software

.............................

23,346,877

18,551,514

—

41,898,391

Specialty

Retail

........................

9,861,135

—

—

9,861,135

Textiles,

Apparel

&

Luxury

Goods

..........

5,020,925

—

—

5,020,925

Thrifts

&

Mortgage

Finance

...............

15,901,939

—

—

15,901,939

Trading

Companies

&

Distributors

..........

55,633,442

—

—

55,633,442

Short

Term

Investments

...................

18,017,359

—

—

18,017,359

Total

Investments

in

Securities

...........

$938,608,775

$51,502,841

a

$—

$990,111,616

a

Includes

foreign

securities

valued

at

$51,502,841,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

10.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSV-23

Semiannual

Report

Franklin

Small

Cap

Value

VIP

Fund

(continued)

12.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

FSC-1

Semiannual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

This

semiannual

report

for

Franklin

Small-Mid

Cap

Growth

VIP

Fund

covers

the

period

ended

June

30,

2022

.

Class

1

Performance

Summary

as

of

June

30,

2022

The

Fund’s

Class

1

Shares

posted

a

-34.76%

total

return

for

the

six-month

period

ended

June

30,

2022.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

FSC-2

Semiannual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

long-term

capital

growth.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

investments

of

small-capitalization

and

mid-capitalization

companies.

For

this

Fund,

small-cap

companies

are

those

within

the

market

capitalization

range

of

companies

in

the

Russell

2500

TM

Index

at

the

time

of

purchase,

and

mid-cap

companies

are

those

within

the

market

capitalization

range

of

companies

in

the

Russell

Midcap

®

Index

at

the

time

of

purchase.

1

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues,

and

can,

therefore,

fall

dramatically

if

the

company

fails

to

meet

those

projections.

Smaller

or

midsized

companies

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger

companies.

Historically,

these

securities

have

experienced

more

price

volatility

than

larger-company

stocks,

especially

over

the

short

term.

To

the

extent

the

Fund

focuses

on

particular

countries,

regions,

industries,

sectors

or

types

of

investment

from

time

to

time,

it

may

be

subject

to

greater

risk

of

adverse

developments

in

such

areas

of

focus

than

a

fund

that

invests

in

a

wider

variety

of

countries,

regions,

industries,

sectors

or

investments.

From

time

to

time,

the

trading

market

for

a

particular

security

or

type

of

security

in

which

the

Fund

invests

may

become

less

liquid

or

even

illiquid.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

narrow

benchmark,

the

Russell

Midcap

Growth

®

Index,

posted

a

-31.00%

total

return,

and

its

broad

benchmark,

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

posted

a

-19.96%

total

return

for

the

same

period.

2

*Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

S&P

500,

posted

a

-19.96%

total

return

for

the

six

months

ended

June

30,

2022.

2

Concerns

surrounding

higher

inflation,

geopolitical

stability

and

rising

interest

rates

pressured

stocks,

Portfolio

Composition

6/30/22

%

of

Total

Net

Assets

Software

16.0%

Life

Sciences

Tools

&

Services

6.2%

Hotels,

Restaurants

&

Leisure

5.9%

Semiconductors

&

Semiconductor

Equipment

5.3%

Health

Care

Equipment

&

Supplies

4.9%

IT

Services

4.5%

Capital

Markets

4.1%

Specialty

Retail

3.9%

Professional

Services

3.3%

Biotechnology

3.0%

Electronic

Equipment,

Instruments

&

Components

2.7%

Equity

Real

Estate

Investment

Trusts

(REITs)

2.7%

Road

&

Rail

2.4%

Electrical

Equipment

2.4%

Other*

27.0%

Short-Term

Investments

&

Other

Net

Assets

5.7%

1.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

2.

Source:

Morningstar.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

Franklin

Small-Mid

Cap

Growth

VIP

Fund

FSC-3

Semiannual

Report

particularly

in

the

second

half

of

the

period.

Elevated

demand

combined

with

supply

chain

disruptions

led

to

the

highest

inflation

since

1981

and

borrowing

costs

increased

from

historically

low

levels.

Russia’s

invasion

of

Ukraine

injected

further

uncertainty

into

financial

markets,

provoking

significant

volatility

in

commodity

and

equity

prices.

Gross

domestic

product

growth

contracted

in

the

first

quarter

of

2022

amid

lower

investments

in

inventories

and

a

growing

trade

deficit.

Private

domestic

investment

slowed

sharply,

while

government

spending

declined

in

the

first

quarter.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

The

inflation

rate

was

elevated

during

the

six-month

period

amid

increased

demand

and

supply

chain

bottlenecks.

U.S.

consumer

spending

on

goods

remained

strong

during

the

first

half

of

the

period,

adding

to

pressure

on

the

prices

of

many

products.

Energy

costs

also

rose,

as

oil

prices

increased

significantly,

driven

by

greater

global

demand

and

sanctions

on

Russia,

one

of

the

world’s

largest

oil

producers.

The

personal

consumption

expenditures

index,

a

measure

of

inflation,

rose

dramatically

during

the

period,

representing

the

highest

12-month

increase

in

decades.

The

unemployment

rate

declined

from

3.9%

in

December

2021

to

3.6%

in

June

2022,

but

a

relative

lack

of

available

workers

fueled

wage

growth,

adding

to

some

investors’

inflation

concerns.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

2022

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

will

continue

to

reduce

its

bond

holdings,

and

it

anticipated

instituting

further

interest-rate

increases

at

future

meetings.

Investment

Strategy

We

use

fundamental,

bottom-up

research

to

seek

companies

meeting

our

criteria

of

growth

potential,

quality

and

valuation.

In

seeking

sustainable

growth

characteristics,

we

look

for

companies

we

believe

can

produce

sustainable

earnings

and

cash

flow

growth,

evaluating

the

long-term

market

opportunity

and

competitive

structure

of

an

industry

to

target

leaders

and

emerging

leaders.

We

define

quality

companies

as

those

with

strong

and

improving

competitive

positions

in

attractive

markets.

We

also

believe

important

attributes

of

quality

are

experienced

and

talented

management

teams

as

well

as

financial

strength

reflected

in

the

capital

structure,

gross

and

operating

margins,

free

cash

flow

generation

and

returns

on

capital

employed.

Our

valuation

analysis

includes

a

range

of

potential

outcomes

based

on

an

assessment

of

multiple

scenarios.

In

assessing

value,

we

consider

whether

security

prices

fully

reflect

the

balance

of

the

sustainable

growth

opportunities

relative

to

business

and

financial

risks.

Manager’s

Discussion

For

the

six-month

period

under

review,

the

Fund

underperformed

the

Russell

Midcap

®

Growth

Index

at

a

time

of

heightened

market

volatility.

Much

of

the

Fund’s

underperformance

was

due

to

stock

selection

in

the

information

technology

(IT)

sector,

our

largest

sector

exposure,

as

surging

inflation

and

increasing

interest

rates

raised

concerns

about

a

recession.

Weakness

in

the

sector

came

from

a

position

in

identity

management

company

Okta,

which

faced

a

potential

data

breach

that

drove

down

its

shares.

While

an

underweighting

in

the

energy

sector

weakened

relative

returns,

our

position

in

Coterra

Energy

was

a

top

contributor

for

the

period.

The

diversified

energy

producer

benefited

from

historically

high

energy

prices.

Stock

selection

was

a

drag

on

relative

results

in

the

industrials

sector,

where

a

position

in

ride-share

company

Lyft

undermined

performance.

In

contrast,

waste

services

company

Republic

Services

was

a

top

contributor

in

the

sector.

The

company,

which

handles

non-hazardous

waste

disposal,

acquired

US

Ecology

(formerly

a

Fund

holding),

which

handles

hazardous

waste

disposal,

in

a

union

that

is

Top

10

Holdings

6/30/22

Company

Industry

%

of

Total

Net

Assets

a

aa

Synopsys,

Inc.

2.9%

Software

Palo

Alto

Networks,

Inc.

2.2%

Software

Chipotle

Mexican

Grill,

Inc.

2.1%

Hotels,

Restaurants

&

Leisure

CoStar

Group,

Inc.

2.0%

Professional

Services

Veeva

Systems,

Inc.

1.9%

Health

Care

Technology

Fastenal

Co.

1.9%

Trading

Companies

&

Distributors

Old

Dominion

Freight

Line,

Inc.

1.8%

Road

&

Rail

IDEXX

Laboratories,

Inc.

1.8%

Health

Care

Equipment

&

Supplies

MSCI,

Inc.

1.7%

Capital

Markets

Crowdstrike

Holdings,

Inc.

1.7%

Software

Franklin

Small-Mid

Cap

Growth

VIP

Fund

FSC-4

Semiannual

Report

financially

accretive

as

it

leverages

the

core

capabilities

of

both

companies,

in

our

view.

The

Fund’s

top

detractor

over

the

period

was

streaming

platform

Roku

(not

held

at

period-end)

in

the

communication

services

sector.

Decelerating

revenue

growth

and

supply-

chain

issues

put

pressure

on

the

stock.

Turning

to

contributors,

stock

selection

in

the

consumer

discretionary

sector

and

a

position

in

licensed

sports

merchandiser

Fanatics

Holdings

(not

part

of

the

index)

proved

positive

for

relative

performance.

The

company’s

e-commerce

business

has

been

outperforming

expectations

and

delivering

outsized

growth

and

improved

profits.

The

acquisition

by

Fanatics

of

trading

card

company

Topps

(not

a

Fund

holding

prior

to

the

acquisition)

in

January

2022

has

also

added

value

to

the

business,

in

our

view.

In

contrast,

the

shares

of

footwear

company

Allbirds

(not

part

of

the

index,

not

held

at

period-end)

were

pressured

by

weaker

gross

margins

and

higher

marketing

costs.

Elsewhere,

HealthEquity

(not

part

of

the

index)

added

to

performance

in

the

health

care

sector.

The

health

care

benefits

manager

reported

improved

annual

enrollment

trends

and

strong

sales

of

health

savings

accounts.

Thank

you

for

your

participation

in

Franklin

Small-Mid

Cap

Growth

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Class

1

Fund

Expenses

Franklin

Small-Mid

Cap

Growth

VIP

Fund

FSC-5

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

any

ongoing

expenses

of

the

Contract

for

which

the

Fund

is

an

investment

option

or

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annua

lized

Expense

Ratio

2

1

$1,000

$652.40

$3.36

$1,020.73

$4.11

0.82%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSC-6

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$26.72

$26.99

$19.74

$17.04

$19.71

$17.77

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..............

(0.04)

(0.15)

(0.07)

(0.04)

(0.05)

(0.04)

Net

realized

and

unrealized

gains

(losses)

(9.25)

2.79

9.96

5.31

(0.70)

3.74

Total

from

investment

operations

........

(9.29)

2.64

9.89

5.27

(0.75)

3.70

Less

distributions

from:

Net

realized

gains

.................

(4.26)

(2.91)

(2.64)

(2.57)

(1.92)

(1.76)

Net

asset

value,

end

of

period

..........

$13.17

$26.72

$26.99

$19.74

$17.04

$19.71

Total

return

c

.......................

(34.76)%

10.25%

55.52%

31.80%

(5.15)%

21.75%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.83%

0.83%

0.85%

0.84%

0.86%

0.85%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

0.82%

0.82%

0.84%

0.83%

0.85%

0.84%

Net

investment

(loss)

................

(0.37)%

(0.55)%

(0.33)%

(0.19)%

(0.24)%

(0.24)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$56,541

$79,526

$72,039

$43,169

$33,518

$36,864

Portfolio

turnover

rate

................

23.69%

43.35%

48.93%

59.07%

44.78%

40.49%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

doe

s

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSC-7

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$22.39

$23.11

$17.29

$15.22

$17.83

$16.27

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..............

(0.05)

(0.19)

(0.11)

(0.08)

(0.09)

(0.08)

Net

realized

and

unrealized

gains

(losses)

(7.76)

2.38

8.57

4.72

(0.60)

3.40

Total

from

investment

operations

........

(7.81)

2.19

8.46

4.64

(0.69)

3.32

Less

distributions

from:

Net

realized

gains

.................

(4.26)

(2.91)

(2.64)

(2.57)

(1.92)

(1.76)

Net

asset

value,

end

of

period

..........

$10.32

$22.39

$23.11

$17.29

$15.22

$17.83

Total

return

c

.......................

(34.89)%

10.01%

55.09%

31.44%

(5.37)%

21.40%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.08%

1.08%

1.10%

1.09%

1.11%

1.10%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

1.07%

1.07%

1.09%

1.08%

1.10%

1.09%

Net

investment

(loss)

................

(0.63)%

(0.80)%

(0.61)%

(0.44)%

(0.49)%

(0.49)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$298,242

$472,565

$503,032

$372,442

$310,300

$390,094

Portfolio

turnover

rate

................

23.69%

43.35%

48.93%

59.07%

44.78%

40.49%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSC-8

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$23.62

$24.26

$18.04

$15.81

$18.47

$16.81

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..............

(0.06)

(0.22)

(0.14)

(0.10)

(0.11)

(0.10)

Net

realized

and

unrealized

gains

(losses)

(8.18)

2.49

9.00

4.90

(0.63)

3.52

Total

from

investment

operations

........

(8.24)

2.27

8.86

4.80

(0.74)

3.42

Less

distributions

from:

Net

realized

gains

.................

(4.26)

(2.91)

(2.64)

(2.57)

(1.92)

(1.76)

Net

asset

value,

end

of

period

..........

$11.12

$23.62

$24.26

$18.04

$15.81

$18.47

Total

return

c

.......................

(34.88)%

9.86%

55.01%

31.26%

(5.46)%

21.30%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.18%

1.18%

1.20%

1.19%

1.21%

1.20%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

1.17%

1.17%

1.19%

1.18%

1.20%

1.19%

Net

investment

(loss)

................

(0.72)%

(0.90)%

(0.71)%

(0.54)%

(0.59)%

(0.59)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$17,879

$26,518

$25,580

$17,662

$13,759

$15,829

Portfolio

turnover

rate

................

23.69%

43.35%

48.93%

59.07%

44.78%

40.49%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Small-Mid

Cap

Growth

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSC-9

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

92.9%

Aerospace

&

Defense

1.5%

a

TransDigm

Group,

Inc.

.................................

United

States

10,500

$

5,635,035

Airlines

1.1%

a

Delta

Air

Lines,

Inc.

....................................

United

States

135,300

3,919,641

Banks

0.9%

a

SVB

Financial

Group

...................................

United

States

8,400

3,317,916

Biotechnology

3.0%

a

Alnylam

Pharmaceuticals,

Inc.

............................

United

States

13,800

2,012,730

a

Horizon

Therapeutics

plc

................................

United

States

39,600

3,158,496

a

Neurocrine

Biosciences,

Inc.

.............................

United

States

14,000

1,364,720

a

PTC

Therapeutics,

Inc.

.................................

United

States

45,300

1,814,718

a

Seagen,

Inc.

.........................................

United

States

15,900

2,813,346

11,164,010

Building

Products

1.1%

Trane

Technologies

plc

.................................

United

States

31,600

4,103,892

Capital

Markets

4.1%

Ares

Management

Corp.

................................

United

States

63,700

3,621,982

MarketAxess

Holdings,

Inc.

..............................

United

States

12,100

3,097,721

MSCI,

Inc.

...........................................

United

States

15,500

6,388,325

Tradeweb

Markets,

Inc.,

A

...............................

United

States

31,300

2,136,225

15,244,253

Commercial

Services

&

Supplies

1.2%

Republic

Services,

Inc.

.................................

United

States

35,400

4,632,798

Communications

Equipment

1.2%

a

Arista

Networks,

Inc.

...................................

United

States

48,400

4,537,016

Containers

&

Packaging

1.9%

Avery

Dennison

Corp.

..................................

United

States

26,900

4,354,303

Ball

Corp.

...........................................

United

States

40,100

2,757,677

7,111,980

Electrical

Equipment

2.4%

a

Generac

Holdings,

Inc.

.................................

United

States

20,000

4,211,600

Rockwell

Automation,

Inc.

...............................

United

States

23,000

4,584,130

8,795,730

Electronic

Equipment,

Instruments

&

Components

2.7%

Cognex

Corp.

........................................

United

States

60,800

2,585,216

a

Keysight

Technologies,

Inc.

..............................

United

States

27,350

3,770,197

a

Zebra

Technologies

Corp.,

A

.............................

United

States

13,200

3,880,140

10,235,553

Equity

Real

Estate

Investment

Trusts

(REITs)

2.7%

Equity

LifeStyle

Properties,

Inc.

...........................

United

States

43,500

3,065,445

SBA

Communications

Corp.

.............................

United

States

14,157

4,530,948

Terreno

Realty

Corp.

...................................

United

States

45,250

2,521,782

10,118,175

Food

Products

0.4%

a

Freshpet,

Inc.

........................................

United

States

25,300

1,312,817

Health

Care

Equipment

&

Supplies

4.9%

a

Dexcom,

Inc.

.........................................

United

States

64,152

4,781,249

a

IDEXX

Laboratories,

Inc.

................................

United

States

18,650

6,541,114

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSC-10

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Health

Care

Equipment

&

Supplies

(continued)

a

Inari

Medical,

Inc.

.....................................

United

States

32,000

$

2,175,680

a

Insulet

Corp.

.........................................

United

States

21,400

4,663,916

18,161,959

Health

Care

Providers

&

Services

1.3%

a

Guardant

Health,

Inc.

..................................

United

States

69,500

2,803,630

a

HealthEquity,

Inc.

.....................................

United

States

36,300

2,228,457

5,032,087

Health

Care

Technology

2.2%

a

Certara,

Inc.

.........................................

United

States

57,100

1,225,366

a

Veeva

Systems,

Inc.,

A

.................................

United

States

35,700

7,070,028

8,295,394

Hotels,

Restaurants

&

Leisure

5.9%

a

Chipotle

Mexican

Grill,

Inc.

..............................

United

States

5,930

7,752,052

Darden

Restaurants,

Inc.

...............................

United

States

36,000

4,072,320

a

Expedia

Group,

Inc.

...................................

United

States

39,700

3,764,751

Vail

Resorts,

Inc.

......................................

United

States

16,600

3,619,630

a

Wynn

Resorts

Ltd.

....................................

United

States

46,200

2,632,476

21,841,229

Household

Durables

1.2%

a

NVR,

Inc.

...........................................

United

States

1,082

4,332,479

Interactive

Media

&

Services

1.7%

a

Match

Group,

Inc.

.....................................

United

States

61,524

4,287,608

a

Pinterest,

Inc.,

A

......................................

United

States

119,400

2,168,304

6,455,912

IT

Services

4.5%

a,b

Adyen

NV,

144A,

Reg

S

................................

Netherlands

1,500

2,164,595

a

Cloudflare,

Inc.,

A

.....................................

United

States

53,700

2,349,375

a

Marqeta,

Inc.,

A

.......................................

United

States

126,178

1,023,304

a

MongoDB,

Inc.

.......................................

United

States

13,100

3,399,450

a

Okta,

Inc.

...........................................

United

States

40,000

3,616,000

Paychex,

Inc.

........................................

United

States

10,700

1,218,409

a

Shopify,

Inc.,

A

.......................................

Canada

17,100

534,204

a

Snowflake,

Inc.,

A

.....................................

United

States

18,500

2,572,610

16,877,947

Leisure

Products

1.9%

a,c,d

Fanatics

Holdings,

Inc.

.................................

United

States

94,539

5,557,841

a

YETI

Holdings,

Inc.

....................................

United

States

33,500

1,449,545

7,007,386

Life

Sciences

Tools

&

Services

6.2%

a

10X

Genomics,

Inc.,

A

..................................

United

States

44,100

1,995,525

a

Avantor,

Inc.

.........................................

United

States

158,400

4,926,240

Bio-Techne

Corp.

.....................................

United

States

14,825

5,138,938

a

Mettler-Toledo

International,

Inc.

..........................

United

States

5,180

5,950,629

West

Pharmaceutical

Services,

Inc.

........................

United

States

17,200

5,200,764

23,212,096

Machinery

1.6%

IDEX

Corp.

..........................................

United

States

17,650

3,205,769

a,e

Proterra,

Inc.

.........................................

United

States

234,900

1,089,936

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSC-11

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Machinery

(continued)

Stanley

Black

&

Decker,

Inc.

.............................

United

States

16,846

$

1,766,472

6,062,177

Oil,

Gas

&

Consumable

Fuels

0.7%

Coterra

Energy,

Inc.

...................................

United

States

79,900

2,060,621

Hess

Corp.

..........................................

United

States

6,900

730,986

2,791,607

Personal

Products

1.2%

a

BellRing

Brands,

Inc.

...................................

United

States

124,100

3,088,849

a

Olaplex

Holdings,

Inc.

..................................

United

States

110,174

1,552,352

4,641,201

Pharmaceuticals

1.6%

a

Catalent,

Inc.

........................................

United

States

29,700

3,186,513

a

Jazz

Pharmaceuticals

plc

...............................

United

States

17,400

2,714,574

5,901,087

Professional

Services

3.3%

a

CoStar

Group,

Inc.

....................................

United

States

123,350

7,451,574

TransUnion

..........................................

United

States

58,900

4,711,411

12,162,985

Road

&

Rail

2.4%

a

Lyft,

Inc.,

A

..........................................

United

States

168,400

2,236,352

Old

Dominion

Freight

Line,

Inc.

...........................

United

States

26,050

6,676,094

8,912,446

Semiconductors

&

Semiconductor

Equipment

5.3%

Entegris,

Inc.

.........................................

United

States

44,000

4,053,720

a

Lattice

Semiconductor

Corp.

.............................

United

States

73,455

3,562,567

Monolithic

Power

Systems,

Inc.

...........................

United

States

12,450

4,781,298

a

Semtech

Corp.

.......................................

United

States

53,600

2,946,392

a

SiTime

Corp.

.........................................

United

States

26,400

4,303,992

19,647,969

Software

14.8%

a

Alkami

Technology,

Inc.

.................................

United

States

88,325

1,226,834

a

ANSYS,

Inc.

.........................................

United

States

23,600

5,647,244

a,e

Arteris,

Inc.

..........................................

United

States

99,228

691,619

a

Atlassian

Corp.

plc,

A

..................................

United

States

12,400

2,323,760

a

Avalara,

Inc.

.........................................

United

States

50,600

3,572,360

a

Bill.com

Holdings,

Inc.

..................................

United

States

27,548

3,028,627

a

Crowdstrike

Holdings,

Inc.,

A

.............................

United

States

37,800

6,371,568

a

Datadog,

Inc.,

A

......................................

United

States

10,300

980,972

a

DocuSign,

Inc.

.......................................

United

States

9,100

522,158

a

Duck

Creek

Technologies,

Inc.

...........................

United

States

108,670

1,613,750

a,e

Monday.com

Ltd.

......................................

United

States

20,700

2,135,412

a

Palo

Alto

Networks,

Inc.

................................

United

States

16,700

8,248,798

a

Paylocity

Holding

Corp.

.................................

United

States

24,650

4,299,453

a

Synopsys,

Inc.

.......................................

United

States

35,950

10,918,015

a

Zscaler,

Inc.

.........................................

United

States

23,500

3,513,485

55,094,055

Specialty

Retail

3.9%

a

Burlington

Stores,

Inc.

..................................

United

States

22,800

3,106,044

a

Five

Below,

Inc.

.......................................

United

States

31,350

3,556,031

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSC-12

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Specialty

Retail

(continued)

a

Petco

Health

&

Wellness

Co.,

Inc.

.........................

United

States

126,500

$

1,864,610

Tractor

Supply

Co.

....................................

United

States

31,937

6,190,987

14,717,672

Textiles,

Apparel

&

Luxury

Goods

2.2%

Levi

Strauss

&

Co.,

A

..................................

United

States

111,600

1,821,312

a

Lululemon

Athletica,

Inc.

................................

United

States

22,800

6,215,508

8,036,820

Trading

Companies

&

Distributors

1.9%

Fastenal

Co.

.........................................

United

States

140,700

7,023,744

Total

Common

Stocks

(Cost

$321,096,984)

.....................................

346,337,068

Convertible

Preferred

Stocks

1.3%

Diversified

Consumer

Services

0.2%

a,c,d

Newsela,

Inc.,

D

......................................

United

States

48,915

701,044

a

Software

1.1%

a,c,d

Benchling,

Inc.,

F

.....................................

United

States

35,200

627,584

a,c,d

Blaize,

Inc.,

D

........................................

United

States

206,272

1,766,359

a,c,d

Databricks,

Inc.,

G

....................................

United

States

8,626

860,063

a,c,d

OneTrust

LLC,

C

......................................

United

States

82,367

962,351

4,216,357

Total

Convertible

Preferred

Stocks

(Cost

$7,484,934)

............................

4,917,401

Warrants

Warrants

0.0%

†

Software

0.0%

†

a,c,d

Blaize,

Inc.,

D,

2/28/24

.................................

United

States

26,474

3,550

Total

Warrants

(Cost

$–)

......................................................

3,550

Principal

Amount

*

Corporate

Bonds

0.1%

Software

0.1%

c,d

Blaize,

Inc.

,

D

,

10

%

,

8/24/23

.............................

United

States

275,000

275,000

Total

Corporate

Bonds

(Cost

$275,000)

........................................

275,000

Total

Long

Term

Investments

(Cost

$328,856,918)

...............................

351,533,019

a

Short

Term

Investments

7.0%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

6.7%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

....

United

States

24,809,760

24,809,760

Total

Money

Market

Funds

(Cost

$24,809,760)

..................................

24,809,760

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSC-13

Short

Term

Investments

(continued)

a

a

Country

Shares

a

Value

a

a

a

a

a

a

h

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.3%

Money

Market

Funds

0.3%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

....

United

States

1,218,350

$

1,218,350

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$1,218,350)

............................................................

1,218,350

Total

Short

Term

Investments

(Cost

$26,028,110

)

................................

26,028,110

a

Total

Investments

(Cost

$354,885,028)

101.3%

..................................

$377,561,129

Other

Assets,

less

Liabilities

(1.3)%

...........................................

(4,899,139)

Net

Assets

100.0%

...........................................................

$372,661,990

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2022,

the

value

of

this

security

was

$2,164,595,

representing

0.6%

of

net

assets.

c

Fair

valued

using

significant

unobservable

inputs.

See

Note

12

regarding

fair

value

measurements.

d

See

Note

7

regarding

restricted

securities.

e

A

portion

or

all

of

the

security

is

on

loan

at

June

30,

2022.

See

Note

1(c).

f

See

Note

3(e)

regarding

investments

in

affiliated

management

investment

companies.

g

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

h

See

Note

1(c)

regarding

securities

on

loan.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSC-14

Franklin

Small-

Mid

Cap

Growth

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$328,856,918

Cost

-

Non-controlled

affiliates

(Not

e

3e)

........................................................

26,028,110

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$1,150,753)

.................................

$351,533,019

Value

-

Non-controlled

affiliates

(Not

e

3e)

.......................................................

26,028,110

Cash

....................................................................................

7,866

Receivables:

Investment

securities

sold

...................................................................

335,717

Capital

shares

sold

........................................................................

162,340

Dividends

and

interest

.....................................................................

108,731

Total

assets

..........................................................................

378,175,783

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

3,594,383

Capital

shares

redeemed

...................................................................

155,417

Management

fees

.........................................................................

242,264

Distribution

fees

..........................................................................

67,836

Trustees'

fees

and

expenses

.................................................................

777

Payable

upon

return

of

securities

loaned

(Note

1

c

)

..................................................

1,218,350

Accrued

expenses

and

other

liabilities

...........................................................

234,766

Total

liabilities

.........................................................................

5,513,793

Net

assets,

at

value

.................................................................

$372,661,990

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$364,963,459

Total

distributable

earnings

(losses)

.............................................................

7,698,531

Net

assets,

at

value

.................................................................

$372,661,990

Franklin

Small-

Mid

Cap

Growth

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$56,540,622

Shares

outstanding

........................................................................

4,294,158

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$13.17

Class

2:

Net

assets,

at

value

.......................................................................

$298,242,363

Shares

outstanding

........................................................................

28,889,523

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$10.32

Class

4:

Net

assets,

at

value

.......................................................................

$17,879,005

Shares

outstanding

........................................................................

1,608,009

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.12

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSC-15

Franklin

Small-

Mid

Cap

Growth

VIP

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

........................................................................

$930,452

Non-controlled

affiliates

(Not

e

3e)

.............................................................

19,976

Interest:

Unaffiliated

issuers

........................................................................

6,875

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

29,218

Non-controlled

affiliates

(Not

e

3e)

.............................................................

1,046

Total

investment

income

...................................................................

987,567

Expenses:

Management

fees

(Note

3

a

)

...................................................................

1,773,125

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

448,851

    Class

4

................................................................................

36,693

Custodian

fees

(Note

4

)

......................................................................

1,643

Reports

to

shareholders

fees

..................................................................

23,349

Registration

and

filing

fees

....................................................................

56

Professional

fees

...........................................................................

34,696

Trustees'

fees

and

expenses

..................................................................

3,175

Other

....................................................................................

11,551

Total

expenses

.........................................................................

2,333,139

Expense

reductions

(Note

4

)

...............................................................

(3)

Expenses

waived/paid

by

affiliates

(Not

e

3e)

...................................................

(26,580)

Net

expenses

.........................................................................

2,306,556

Net

investment

income

(loss)

............................................................

(1,318,989)

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

(13,760,666)

Foreign

currency

transactions

................................................................

(5,141)

Net

realized

gain

(loss)

..................................................................

(13,765,807)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(184,914,865)

Net

realized

and

unrealized

gain

(loss)

............................................................

(198,680,672)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(199,999,661)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSC-16

Franklin

Small-Mid

Cap

Growth

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

............................................

$(1,318,989)

$(4,651,887)

Net

realized

gain

(loss)

.................................................

(13,765,807)

110,267,902

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(184,914,865)

(48,020,742)

Net

increase

(decrease)

in

net

assets

resulting

from

o

perations

................

(199,999,661)

57,595,273

Distributions

to

shareholders:

Class

1

.............................................................

(13,727,212)

(7,430,783)

Class

2

.............................................................

(86,996,421)

(58,482,161)

Class

4

.............................................................

(4,892,046)

(3,098,704)

Total

distributions

to

shareholders

..........................................

(105,615,679)

(69,011,648)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

18,991,927

7,817,577

Class

2

.............................................................

75,039,843

(19,844,931)

Class

4

.............................................................

5,637,439

1,399,650

Total

capital

share

transactions

............................................

99,669,209

(10,627,704)

Net

increase

(decrease)

in

net

assets

...................................

(205,946,131)

(22,044,079)

Net

assets:

Beginning

of

period

.....................................................

578,608,121

600,652,200

End

of

period

..........................................................

$372,661,990

$578,608,121

Franklin

Templeton

Variable

Insurance

Products

Trust

FSC-17

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

Franklin

Small-Mid

Cap

Growth

VIP

Fund

1.

Organization

and

Significant

Accounting

Policies

Franklin

Templeton

Variable

Insurance

Products

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen

separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(Fund)

is

included

in

this

report.

Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

At

June

30,

2022,

40.0%

of

the

Fund's

shares

were

held

through

one

insurance

company.

Investment

activities

of

these

insurance

company

separate

accounts

could

have

a

material

impact

on

the

Fund.

The

Fund

offers

three

classes

of

shares:

Class

1,

Class

2

and

Class

4.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege.

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day. Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time. In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSC-18

Semiannual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the Fund.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/

or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to any

cash collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

d.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSC-19

Semiannual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Estimated

expenses

are

accrued

daily.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust, on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Income

and

Deferred

Taxes

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSC-20

Semiannual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

400,923

$8,000,301

576,234

$15,810,750

Shares

issued

in

reinvestment

of

distributions

..........

1,042,309

13,727,212

290,492

7,430,783

Shares

redeemed

...............................

(125,367)

(2,735,586)

(559,560)

(15,423,956)

Net

increase

(decrease)

..........................

1,317,865

$18,991,927

307,166

$7,817,577

Class

2

Shares:

Shares

sold

...................................

911,926

$15,069,854

815,205

$18,971,660

Shares

issued

in

reinvestment

of

distributions

..........

8,421,725

86,996,421

2,725,170

58,482,161

Shares

redeemed

...............................

(1,554,044)

(27,026,432)

(4,194,907)

(97,298,752)

Net

increase

(decrease)

..........................

7,779,607

$75,039,843

(654,532)

$(19,844,931)

Class

4

Shares:

Shares

sold

...................................

150,276

$2,627,947

227,811

$5,628,165

Shares

issued

in

reinvestment

of

distributions

..........

439,932

4,892,046

136,748

3,098,704

Shares

redeemed

...............................

(104,811)

(1,882,554)

(296,435)

(7,327,219)

Net

increase

(decrease)

..........................

485,397

$5,637,439

68,124

$1,399,650

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSC-21

Semiannual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was

0.799%

of

the

Fund’s

average

daily

net

assets.

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

2

and

Class

4

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.35%

per

year

of

its

average

daily

net

assets

of

each

class.

The

Board

has

agreed

to

limit

the

current

rate

to

0.25%

per

year

for

Class

2.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

e.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Annualized

Fee

Rate

Net

Assets

0.800%

Up

to

and

including

$500

million

0.700%

Over

$500

million,

up

to

and

including

$1

billion

0.650%

Over

$1

billion,

up

to

and

including

$1.5

billion

0.600%

Over

$1.5

billion,

up

to

and

including

$6.5

billion

0.575%

Over

$6.5

billion,

up

to

and

including

$11.5

billion

0.550%

Over

$11.5

billion,

up

to

and

including

$16.5

billion

0.540%

Over

$16.5

billion,

up

to

and

including

$19

billion

0.530%

Over

$19

billion,

up

to

and

including

$21.5

billion

0.520%

In

excess

of

$21.5

billion

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSC-22

Semiannual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

June

30,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations.

5.

Income

Taxes

At

June

30,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

aggregated

$104,534,897

and

$124,906,694,

respectively.

At

June

30,

2022,

in

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received

$1,218,350

of

cash

collateral.

The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Statement

of

Assets

and

Liabilities.

The

agreements

can

be

terminated

at

any

time.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Small-Mid

Cap

Growth

VIP

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$

8,439,570

$

64,141,425

$

(47,771,235)

$

—

$

—

$

24,809,760

24,809,760

$

19,976

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$8,496,850

$20,624,411

$(27,902,911)

$—

$—

$1,218,350

1,218,350

$1,046

Total

Affiliated

Securities

...

$16,936,420

$84,765,836

$(75,674,146)

$—

$—

$26,028,110

$21,022

Cost

of

investments

..........................................................................

$354,848,570

Unrealized

appreciation

........................................................................

$79,793,518

Unrealized

depreciation

........................................................................

(57,080,959)

Net

unrealized

appreciation

(depreciation)

..........................................................

$22,712,559

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSC-23

Semiannual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

7.

Restricted

Securities

The

Fund

invests

in

securities

that

are

restricted

under

the

Securities

Act

of

1933

(1933

Act).

Restricted

securities

are

often

purchased

in

private

placement

transactions,

and

cannot

be

sold

without

prior

registration

unless

the

sale

is

pursuant

to

an

exemption

under

the

1933

Act.

Disposal

of

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

The Fund

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

At

June

30,

2022,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

8.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

The

1940

Act

defines

"affiliated

companies"

to

include

investments

in

portfolio

companies

in

which

a

fund

owns

5%

or

more

of

the

outstanding

voting

securities.

Additionally,

as

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

companies’

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

company.

During

the

period

ended

June

30,

2022,

investments

in

“affiliated

companies”

were

as

follows:

a

As

of

June

30,

2022,

no

longer

an

affiliate.

Principal

Amount

*

/

Shares

/

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Small-Mid

Cap

Growth

VIP

Fund

35,200

Benchling,

Inc.,

F

............................

10/20/21

$

1,150,910

$

627,584

206,272

Blaize,

Inc.,

D

..............................

3/02/21

-

11/09/21

2,154,000

1,766,359

275,000

Blaize,

Inc.,

D,

10%,

8/24/23

...................

4/01/22

275,000

275,000

26,474

Blaize,

Inc.,

D,

2/28/24

........................

3/01/21

-

11/09/21

—

3,550

8,626

Databricks,

Inc.,

G

...........................

2/01/21

1,529,975

860,063

94,539

Fanatics

Holdings,

Inc.

........................

8/13/20

-

3/22/21

1,669,739

5,557,841

48,915

Newsela,

Inc.,

D

.............................

1/21/21

1,034,807

701,044

82,367

OneTrust

LLC,

C

............................

4/01/21

1,615,242

962,351

Total

Restricted

Securities

(Value

is

2.9%

of

Net

Assets)

..............

$9,429,673

$10,753,792

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares/Principal

Amount

Held

at

End

of

Period

Investment

Income

Franklin

Small-Mid

Cap

Growth

VIP

Fund

Non-Controlled

Affiliates

Dividends

Blaize,

Inc.,

D,

2/28/24

.

$

31,313

$

—

$

—

$

—

$

—

a

$

—

a

—

a

$

—

Blaize,

Inc.,

D

.......

2,050,037

—

—

—

—

a

—

a

—

a

—

Total

Affiliated

Securities

(Value

is

—%

of

Net

Assets)

..........

$2,081,350

$—

$—

$

—

$

—

$—

$—

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSC-24

Semiannual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

9.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

10.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

11.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

12.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSC-25

Semiannual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's assets

carried

at

fair

value,

is

as

follows:

a

Includes

foreign

securities

valued

at

$2,164,595,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

Level

1

Level

2

Level

3

Total

Franklin

Small-Mid

Cap

Growth

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

5,635,035

$

—

$

—

$

5,635,035

Airlines

..............................

3,919,641

—

—

3,919,641

Banks

...............................

3,317,916

—

—

3,317,916

Biotechnology

.........................

11,164,010

—

—

11,164,010

Building

Products

......................

4,103,892

—

—

4,103,892

Capital

Markets

........................

15,244,253

—

—

15,244,253

Commercial

Services

&

Supplies

...........

4,632,798

—

—

4,632,798

Communications

Equipment

..............

4,537,016

—

—

4,537,016

Containers

&

Packaging

.................

7,111,980

—

—

7,111,980

Electrical

Equipment

....................

8,795,730

—

—

8,795,730

Electronic

Equipment,

Instruments

&

Components

........................

10,235,553

—

—

10,235,553

Equity

Real

Estate

Investment

Trusts

(REITs)

.

10,118,175

—

—

10,118,175

Food

Products

........................

1,312,817

—

—

1,312,817

Health

Care

Equipment

&

Supplies

.........

18,161,959

—

—

18,161,959

Health

Care

Providers

&

Services

..........

5,032,087

—

—

5,032,087

Health

Care

Technology

.................

8,295,394

—

—

8,295,394

Hotels,

Restaurants

&

Leisure

.............

21,841,229

—

—

21,841,229

Household

Durables

....................

4,332,479

—

—

4,332,479

Interactive

Media

&

Services

..............

6,455,912

—

—

6,455,912

IT

Services

...........................

14,713,352

2,164,595

—

16,877,947

Leisure

Products

.......................

1,449,545

—

5,557,841

7,007,386

Life

Sciences

Tools

&

Services

............

23,212,096

—

—

23,212,096

Machinery

............................

6,062,177

—

—

6,062,177

Oil,

Gas

&

Consumable

Fuels

.............

2,791,607

—

—

2,791,607

Personal

Products

.....................

4,641,201

—

—

4,641,201

Pharmaceuticals

.......................

5,901,087

—

—

5,901,087

Professional

Services

...................

12,162,985

—

—

12,162,985

Road

&

Rail

..........................

8,912,446

—

—

8,912,446

Semiconductors

&

Semiconductor

Equipment

.

19,647,969

—

—

19,647,969

Software

.............................

55,094,055

—

—

55,094,055

Specialty

Retail

........................

14,717,672

—

—

14,717,672

Textiles,

Apparel

&

Luxury

Goods

..........

8,036,820

—

—

8,036,820

Trading

Companies

&

Distributors

..........

7,023,744

—

—

7,023,744

Convertible

Preferred

Stocks

...............

—

—

4,917,401

4,917,401

Warrants

..............................

—

—

3,550

3,550

Corporate

Bonds

........................

—

—

275,000

275,000

Short

Term

Investments

...................

26,028,110

—

—

26,028,110

Total

Investments

in

Securities

...........

$364,642,742

$2,164,595

a

$10,753,792

$377,561,129

12.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSC-26

Semiannual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the period.

At

June

30,

2022,

the

reconciliation is

as follows:

Significant

unobservable

valuation

inputs

for

material

Level

3 assets

and/or

liabilities and

impact

to

fair

value

as

a

result

of

changes

in

unobservable

valuation

inputs

as

of

June

30,

2022,

are

as

follows:

Balance

at

Beginning

of

Period

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Small-Mid

Cap

Growth

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Leisure

Products

....

$

4,026,670

$

—

$

—

$

—

$

—

$

—

$

—

$

1,531,171

$

5,557,841

$

1,531,171

Textiles,

Apparel

&

Luxury

Goods

....

1,330,614

—

(1,068,276)

—

—

—

—

(262,338)

—

—

Convertible

Preferred

Stocks

:

Diversified

Consumer

Services

........

987,771

—

—

—

—

—

—

(286,727)

701,044

(286,727)

Software

..........

6,692,175

—

—

—

—

—

—

(2,475,818)

4,216,357

(2,475,818)

Warrants

:

Software

..........

31,313

—

—

—

—

—

—

(27,763)

3,550

(27,763)

Corporate

Bonds

:

Software

..........

—

275,000

—

—

—

—

—

—

275,000

—

Total

Investments

in

Securities

............

$13,068,543

$275,000

$(1,068,276)

$—

$—

$—

$—

$(1,521,475)

$10,753,792

$(1,259,137)

a

Purchases

include

all

purchases

of

securities

and

securities

received

in

corporate

actions.

b

Sales

include

all

sales

of

securities,

maturities,

paydowns

and

securities

tendered

in

corporate

actions.

12.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSC-27

Semiannual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

Abbreviations

List

EV

-

Enterprise

value

13.

New

Accounting

Pronouncements

In June

2022,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

Description

Fair

Value

at

End

of

Period

Valuation

Technique

Unobservable

Inputs

Amount

/

Range

(Weighted

Average)

a

Impact

to

Fair

Value

if

Input

Increases

b

Franklin

Small-Mid

Cap

Growth

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

Leisure

Products

.............

$5,557,841

Market

comparables

Discount

for

lack

of

marketability

19.1%

Decrease

c

EV

/

revenue

multiple

5.6x

Increase

c

Convertible

Preferred

Stocks

Diversified

Consumer

Services.

.

.

701,044

Discounted

cash

flow

Discount

for

lack

of

marketability

21.8%

Decrease

d

Weighted

average

cost

of

capital

18.3%

Decrease

d

Long-term

growth

rate

5.0%

Increase

Volatility

of

peers

86.5%

Decrease

Software

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

4,216,357

Discounted

cash

flow

Discount

for

lack

of

marketability

15.7%

Decrease

Weighted

average

cost

of

capital

19.4%

Decrease

d

Long-term

growth

rate

2.5%

Increase

Volatility

of

peers

64.0%

Decrease

Market

comparables

Discount

for

lack

of

marketability

17.8%

-

18.7%

(18.1%)

Decrease

d

EV

/

revenue

multiple

7.8x

-

39.8x

(19.3x)

Increase

d

All

Other

Investments

..........

278,550

e

Total

$10,753,792

a

Weighted

based

on

the

relative

fair

value

of

the

financial

instruments.

b

Represents

the

directional

change

in

the

fair

value

that

would

result

from

a

significant

and

reasonable

increase

in

the

corresponding

input.

A

significant

and

reasonable

decrease

in

the

input

would

have

the

opposite

effect.

Significant

impacts,

if

any,

to

fair

value

and/or

net

assets

have

been

indicated.

c

Represents

a

significant

impact

to

fair

value

and

net

assets.

d

Represents

a

significant

impact

to

fair

value

but

not

net

assets.

e

Includes

fair

value

of

immaterial

assets

and/or

liabilities

developed

using

various

valuation

techniques

and

unobservable

inputs.

May

also

include

values

derived

using

private

transaction

prices

or

non-public

third

party

pricing

information

which

is

unobservable.

12.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSC-28

Semiannual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

14.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

13.

New

Accounting

Pronouncements

(continued)

FSI-1

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

This

semi

annual

report

for

Franklin

Strategic

Income

VIP

Fund

covers

the

period

ended

June

30,

2022

.

Class

1

Performance

Summary

as

of

June

30,

2022

The

Fund’s

Class

1

Shares

posted

a

-11.44%

total

return*

for

the

six-month

period

ended

June

30,

2022.

*The

Fund

has

a

fee

waiver

associated

with

any

investment

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

fee

waiver;

without

this

waiver,

the

results

would

have

been

lower.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

FSI-2

Semiannual

Report

1.

Source:

Morningstar.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Summary

Schedule

of

Investments

(SOI).

Franklin

Strategic

Income

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

a

high

level

of

current

income,

with

capital

appreciation

over

the

long

term

as

a

secondary

goal.

Under

normal

market

conditions,

the

Fund

invests

primarily

to

predominantly

in

U.S.

and

foreign

debt

securities,

including

those

in

emerging

markets.

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Changes

in

the

financial

strength

of

a

bond

issuer

or

in

a

bond’s

credit

rating

may

affect

its

value.

High

yields

reflect

the

higher

credit

risks

associated

with

certain

lower

rated

securities

held

in

the

portfolio.

Floating

rate

loans

and

high

yield

corporate

bonds

are

rated

below

investment

grade

and

are

subject

to

greater

risk

of

default,

which

could

result

in

loss

of

principal—a

risk

that

may

be

heightened

in

a

slowing

economy.

The

risks

of

foreign

securities

include

currency

fluctuations

and

political

uncertainty.

Investments

in

developing

markets

involve

heightened

risks

related

to

the

same

factors,

in

addition

to

those

associated

with

their

relatively

small

size

and

lesser

liquidity.

Investing

in

derivative

securities

and

the

use

of

foreign

currency

techniques

involve

special

risks

as

such

may

not

achieve

the

anticipated

benefits

and/or

may

result

in

losses

to

the

Fund.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

For

comparison,

the

Fund’s

benchmark,

the

Bloomberg

U.S.

Aggregate

Bond

Index,

posted

a

-10.35%

total

return

for

the

period

under

review.

1

Economic

and

Market

Overview

The

U.S.

bond

market,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index,

posted

a

-10.35%

total

return

for

the

six

months

ended

June

30,

2022.

1

High

inflation

amid

supply

chain

disruptions

and

increased

consumer

spending

led

to

significantly

tighter

monetary

policy,

reducing

the

value

of

most

bonds.

Geopolitical

instability

disrupted

financial

markets

following

Russia’s

invasion

of

Ukraine,

adding

to

the

uncertainty

surrounding

the

global

economy.

The

yield

curve

flattened

notably

during

the

period,

reflecting

investors’

expectations

that

short-term

interest

rates

would

continue

to

rise,

while

the

outlook

for

long-term

economic

growth

was

uncertain.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

in

March

2022,

the

first

such

increase

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

Portfolio

Composition

6/30/22

%

of

Total

Net

Assets

Corporate

Bonds

42.0%

U.S.

Government

and

Agency

Securities

16.5%

Management

Investment

Companies

8.8%

Asset-Backed

Securities

7.6%

Foreign

Government

and

Agency

Securities

7.1%

Residential

Mortgage-Backed

Securities

6.9%

Mortgage-Backed

Securities

3.3%

Marketplace

Loans

2.9%

Other

2.4%

Short-Term

Investments

&

Other

Net

Assets

2.5%

Franklin

Strategic

Income

VIP

Fund

FSI-3

Semiannual

Report

of

1.50%–1.75%.

The

Fed

noted

in

its

June

2022

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings,

and

anticipated

instituting

further

interest-rate

increases

at

future

meetings.

U.S.

Treasury

(UST)

bonds,

as

measured

by

the

Bloomberg

U.S.

Treasury

Index,

posted

a

-9.14%

total

return

for

the

six-month

period.

1

The

10-year

UST

yield

(which

moves

inversely

to

price)

grew

notably,

particularly

beginning

in

March

2022,

amid

high

inflation

and

the

Fed’s

tightening

monetary

stance.

Mortgage-backed

securities

(MBS),

as

measured

by

the

Bloomberg

U.S.

MBS

Index,

posted

a

-8.78%

total

return

for

the

period

as

mortgage

rates

rose

to

the

highest

level

in

over

a

decade.

1

Corporate

bond

prices

also

declined

overall,

constrained

by

inflation,

rising

interest

rates

and

concerns

about

the

impact

of

higher

interest

rates

on

corporate

borrowing

costs

and

the

wider

economy.

Corporate

yield

spreads,

a

measure

of

the

difference

in

yields

between

corporate

bonds

and

similarly-dated

USTs,

rose,

reflecting

investors’

increased

risk-aversion

preferences.

In

this

environment,

high-yield

corporate

bonds,

as

represented

by

the

Bloomberg

U.S.

Corporate

High

Yield

Bond

Index,

posted

a

-14.19%

total

return,

and

investment-grade

corporate

bonds,

as

represented

by

the

Bloomberg

U.S.

Corporate

Bond

Index,

posted

a

-14.39%

total

return.

1

Investment

Strategy

We

allocate

our

investments

among

the

various

types

of

debt

available

based

on

our

assessment

of

changing

economic,

global

market,

industry

and

issuer

conditions.

We

use

a

top-down

analysis

of

macroeconomic

trends,

combined

with

a

bottom-up

fundamental

analysis

of

market

sectors,

industries

and

issuers,

seeking

to

take

advantage

of

varying

sector

reactions

to

economic

events.

For

example,

we

may

evaluate

business

cycles,

yield

curves,

country

risk,

and

the

relative

interest

rates

among

currencies,

and

values

between

and

within

markets.

In

selecting

debt

securities,

we

generally

conduct

our

own

analysis

of

the

security’s

intrinsic

value

rather

than

simply

relying

on

the

coupon

rate

or

rating.

We

may

also

enter

into

various

transactions

involving

certain

currency-,

interest

rate-

or

credit-related

derivative

instruments.

Manager’s

Discussion

The

Fund

allocated

assets

across

the

broad

fixed

income

markets

seeking

the

best

relative

value

opportunities

for

income

and

capital

appreciation.

The

portfolio

held

sizable

exposure

across

corporate

credit

sectors

and

maintained

our

largest

exposure

in

high-yield

corporate

credit,

but

decreased

allocation

over

the

period.

We

are

cautious

on

high-yield

spreads

in

the

near-term

as

the

Fed

will

likely

need

to

take

the

federal

funds

rate

into

restrictive

territory

and

interest

rates,

therefore,

have

significant

room

to

the

upside.

Longer-term,

we

remain

constructive

on

the

asset

class

as

we

believe

high-yield

credit

fundamentals

entered

this

turbulent

period

in

solid

shape,

with

net

leverage

having

essentially

healed

from

the

COVID-19

shock

and

interest

coverage

at

a

record

level.

While

we

expect

the

default

rate

to

increase

from

a

record

low

reached

earlier

this

year,

we

believe

this

default

cycle

will

likely

be

more

muted

with

maturity

walls

for

most

issuers

having

been

pushed

out

substantially

over

the

past

two

years

as

wide-open

capital

markets

sparked

a

massive

refinancing

wave.

The

portfolio’s

second

largest

allocation

was

U.S.

Treasuries,

as

we

increased

exposure

meaningfully

over

the

period,

followed

by

investment-grade

corporate

credit

and

senior

secured

floating-rate

loans.

The

Fed’s

increasingly

aggressive

policy

aimed

at

combatting

persistently

high

inflation

caused

recalibrations

of

growth

expectations

fueled

by

worries

that

the

tightening

cycle

may

end

in

a

recession.

Even

though

company

revenues

have

continued

to

grow,

rising

input

prices,

supply

chain

disruptions,

and

weaker

consumer

demand

are

putting

pressure

on

margins

and

impacting

corporate

profitability,

while

geopolitical

risk

and

COVID-19

related

lockdowns

in

China

are

adding

to

uncertainty.

The

portfolio

remains

allocated

to

sovereign

emerging

market

securities

(sovereign

EM),

but

significantly

reduced

allocation

over

the

period.

The

tragic

events

that

have

taken

place

in

Ukraine

since

the

Russian

invasion

in

late

February

2022

have

been

a

key

factor

in

the

weakness

of

sovereign

EM.

We

still

see

select

sovereign

EMs

as

fundamentally

strong

due

to

increased

and

improving

external

balances,

as

high

commodity

prices

bring

benefits

in

aggregate

to

the

asset

class.

While

inflationary

factors,

particularly

food

prices,

pose

a

potential

risk

to

government

stability

in

countries

reliant

on

imports

of

food

staples,

decisive

action

by

emerging

markets

central

banks

so

far,

has

put

them

ahead

of

the

curve—in

contrast

to

most

developed

market

peers.

Better

managed

debt

stocks,

with

longer

durations

and

lower

foreign-currency

exposure

underpin

our

belief

that,

while

the

next

few

months

of

further

tightening

in

external

financing

conditions

will

not

be

easy

for

sovereign

EM,

it

should

not

unravel

into

a

systemic

crisis

for

the

asset

class.

Franklin

Strategic

Income

VIP

Fund

FSI-4

Semiannual

Report

We

increased

our

allocation

to

collateralized

loan

obligations

(CLOs)

and

we

remained

allocated

to

the

non-

agency

residential

mortgage-backed

securities

(RMBS)

sector,

with

exposure

primarily

in

the

seasoned

credit

risk

transfer

securities.

While

we

believe

the

U.S.

housing

market

remains

in

a

solid

fundamental

position,

we

have

downgraded

our

outlook

for

the

sector

and

decreased

allocation

over

the

quarter.

Our

outlook

downgrade

was

driven

by

our

expectations

for

a

deceleration

in

home

price

growth

and

heavy

near-term

supply

in

RMBS.

Heavy

issuance

and

slower

prepayments

due

to

higher

rates

have

put

pressure

on

new

issue

RMBS

spreads

and

we

expect

widening

to

continue

in

the

near-term.

In

our

foreign-currency

exposure,

we

closed

out

many

existing

positions

with

allocation

at

period-end

consisting

of

long

Dominican

peso

and

short

euro,

and

a

small,

short

Colombian

peso,

positions.

Allocation

across

corporate

credit

sectors

(including

high-

yield

and

investment-grade

corporate

bonds,

senior

secured

floating-rate

loans

and

CLOs)

detracted

from

performance.

As

the

continuing

Russia-Ukraine

war

led

to

significant

volatility

in

global

financial

markets,

the

emerging

market

sector

was

directly

impacted

by

risk-off

sentiment

and

outflows,

resulting

in

it

being

the

worst

performing

fixed

income

asset

class.

Extreme

price

volatility

in

our

exposure

to

the

region

had

a

material

impact

on

performance.

Allocation

to

RMBS

was

a

slight

contributor

to

performance.

The

Fund

utilized

derivatives,

including

credit

default

swaps,

currency

forwards

and

government

bond

futures,

primarily

as

a

tool

for

efficient

portfolio

management

and

to

manage

overall

portfolio

risk.

These

derivative

transactions

may

provide

the

same,

or

similar,

net

long

or

short

exposure

to

select

currencies,

interest

rates,

countries,

duration

or

credit

risks

compared

to

holding

securities.

Thank

you

for

your

participation

in

Franklin

Strategic

Income

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Class

1

Fund

Expenses

Franklin

Strategic

Income

VIP

Fund

FSI-5

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

any

ongoing

expenses

of

the

Contract

for

which

the

Fund

is

an

investment

option

or

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

1

$1,000

$885.60

$3.44

$1,021.14

$3.69

0.74%

FSI-6

Semiannual

Report

FSI

P1

P2

P4

08/22

SUPPLEMENT

DATED

AUGUST

1,

2022

TO

THE

PROSPECTUS

DATED

MAY

1,

2022

OF

FRANKLIN

STRATEGIC

INCOME

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

The

Prospectus

is

amended

as

follows:

I.

The

portfolio

management

team

under

the

“Fund

Summaries

–

Portfolio

Manager”

section

on

page

FSI-S7

of

the

prospectus

is

replaced

with

the

following:

Portfolio

Managers

Sonal

Desai,

Ph.D.

Executive

Vice

President

and

Director

of

Advisers

and

portfolio

manager

of

the

Fund

since

2018.

Patrick

Klein,

Ph.D.

Senior

Vice

President

of

Advisers

and

portfolio

manager

of

the

Fund

since

August

2022.

Patricia

O’Connor,

CFA

Vice

President

of

Advisers

and

portfolio

manager

of

the

Fund

since

2016.

Thomas

Runkel

,

CFA

Vice

President

of

Advisers

and

portfolio

manager

of

the

Fund

since

August

2022.

Benjamin

Cryer,

CFA

Portfolio

Manager

of

Advisers

and

portfolio

manager

of

the

Fund

since

August

2022.

David

Yuen,

CFA,

FRM

Portfolio

Manager

of

Advisers

and

portfolio

manager

of

the

Fund

since

2019.

David

Yuen

will

be

retiring

effective

September

30,

2022.

Effective

October

1,

2022,

Mr.

Yuen

will

no

longer

be

portfolio

manager

of

the

Fund.

II.

The

portfolio

management

team

under

the

“Fund

Details

–

Management”

section

on

page

FSI-D12

the

prospectus

is

replaced

with

the

following:

Sonal

Desai,

Ph.D.

Executive

Vice

President

and

Director

of

Advisers

Dr.

Desai

has

been

a

portfolio

manager

of

the

Fund

since

2018.

She

joined

Franklin

Templeton

in

2009.

Patrick

Klein,

Ph.D.

Senior

Vice

President

of

Advisers

Dr.

Klein

has

been

a

portfolio

manager

of

the

Fund

since

August

2022.

He

joined

Franklin

Templeton

in

2005.

Patricia

O’Connor,

CFA

Ms.

O’Connor

has

been

a

portfolio

manager

of

the

Fund

since

2016.

She

joined

Franklin

Templeton

in

1997.

Thomas

Runkel

,

CFA

Vice

President

of

Advisers

Mr.

Runkel

has

been

a

portfolio

manager

of

the

Fund

since

August

2022.

He

first

joined

Franklin

Templeton

in

1983

and

rejoined

in

2006.

Benjamin

Cryer,

CFA

Portfolio

Manager

of

Advisers

FSI-7

Semiannual

Report

Mr.

Cryer

has

been

a

portfolio

manager

of

the

Fund

since

August

2022.

He

joined

Franklin

Templeton

in

2006.

David

Yuen,

CFA,

FRM

Portfolio

Manager

of

Advisers

Mr.

Yuen

has

been

a

portfolio

manager

of

the

Fund

since

2019.

He

joined

Franklin

Templeton

in

2000.

The

portfolio

managers

of

the

Fund

are

jointly

and

primarily

responsible

for

the

day-to-day

management

of

the

Fund.

Each

manager

has

equal

authority

over

all

aspects

of

the

Fund’s

investment

portfolio,

including

but

not

limited

to,

purchases

and

sales

of

individual

securities,

portfolio

risk

assessment,

and

the

management

of

daily

cash

balances

in

accordance

with

anticipated

investment

management

requirements.

The

degree

to

which

each

portfolio

manager

may

perform

these

functions,

and

the

nature

of

these

functions,

may

change

from

time

to

time.

CFA

®

and

Chartered

Financial

Analyst

®

are

trademarks

owned

by

CFA

Institute.

David

Yuen

will

be

retiring

effective

September

30,

2022.

Effective

October

1,

2022,

Mr.

Yuen

will

no

longer

be

portfolio

manager

of

the

Fund.

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Strategic

Income

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-8

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021*

2020

a

2019

a

2018

a

2017

a

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.64

$10.76

$10.93

$10.65

$11.15

$11.01

Income

from

investment

operations

b

:

Net

investment

income

c

.............

0.18

0.33

0.36

0.45

0.47

0.45

Net

realized

and

unrealized

gains

(losses)

(1.40)

(0.08)

0.01

0.43

(0.65)

0.04

Total

from

investment

operations

........

(1.22)

0.25

0.37

0.88

(0.18)

0.49

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

....................

(0.43)

(0.37)

(0.54)

(0.60)

(0.32)

(0.35)

Net

asset

value,

end

of

period

..........

$8.99

$10.64

$10.76

$10.93

$10.65

$11.15

Total

return

d

.......................

(11.44)%

2.28%

3.75%

8.41%

(1.65)%

4.46%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.81%

0.78%

0.75%

0.71%

0.67%

0.68%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.74%

0.74%

0.73%

0.68%

0.63%

0.63%

Net

investment

income

...............

3.68%

3.11%

3.46%

4.09%

4.28%

4.00%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$204,710

$248,352

$261,409

$285,437

$302,610

$361,465

Portfolio

turnover

rate

................

25.07%

58.28%

g

114.19%

114.89%

g

107.90%

g

108.73%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

h

........................

25.07%

43.00%

g

73.45%

72.45%

g

40.38%

g

48.11%

*

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

III

from

January

1,

2021

through

April

27,

2021.

a

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

III.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

h

See

Note

1(f)

regarding

mortgage

dollar

rolls.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-9

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021*

2020

a

2019

a

2018

a

2017

a

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.23

$10.36

$10.55

$10.28

$10.76

$10.64

Income

from

investment

operations

b

:

Net

investment

income

c

.............

0.16

0.29

0.33

0.40

0.42

0.40

Net

realized

and

unrealized

gains

(losses)

(1.34)

(0.07)

—

d

0.42

(0.61)

0.04

Total

from

investment

operations

........

(1.18)

0.22

0.33

0.82

(0.19)

0.44

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

....................

(0.40)

(0.35)

(0.52)

(0.55)

(0.29)

(0.32)

Net

asset

value,

end

of

period

..........

$8.65

$10.23

$10.36

$10.55

$10.28

$10.76

Total

return

e

.......................

(11.57)%

2.11%

3.43%

8.05%

(1.77)%

4.17%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.06%

1.03%

1.01%

0.96%

0.92%

0.93%

Expenses

net

of

waiver

and

payments

by

affiliates

g

..........................

0.99%

0.99%

0.99%

0.93%

0.88%

0.88%

Net

investment

income

...............

3.44%

2.86%

3.23%

3.84%

4.03%

3.75%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$77,204

$89,733

$100,758

$94,928

$89,264

$214,271

Portfolio

turnover

rate

................

25.07%

58.28%

h

114.19%

114.89%

h

107.90%

h

108.73%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

i

........................

25.07%

43.00%

h

73.45%

72.45%

h

40.38%

h

48.11%

*

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

III

from

January

1,

2021

through

April

27,

2021.

a

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

III.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

i

See

Note

1(f)

regarding

mortgage

dollar

rolls.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Strategic

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-10

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021*

2020

a

2019

a

2018

a

2017

a

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.54

$10.66

$10.83

$10.56

$11.04

$10.90

Income

from

investment

operations

b

:

Net

investment

income

c

.............

0.16

0.29

0.32

0.41

0.43

0.40

Net

realized

and

unrealized

gains

(losses)

(1.38)

(0.07)

0.01

0.42

(0.64)

0.04

Total

from

investment

operations

........

(1.22)

0.22

0.33

0.83

(0.21)

0.44

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

....................

(0.39)

(0.34)

(0.50)

(0.56)

(0.27)

(0.30)

Net

asset

value,

end

of

period

..........

$8.93

$10.54

$10.66

$10.83

$10.56

$11.04

Total

return

d

.......................

(11.64)%

2.06%

3.34%

7.93%

(1.88)%

4.08%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.16%

1.13%

1.10%

1.06%

1.02%

1.03%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.09%

1.09%

1.09%

1.03%

0.98%

0.98%

Net

investment

income

...............

3.33%

2.76%

3.12%

3.74%

3.93%

3.65%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$42,152

$50,381

$51,709

$54,485

$60,763

$74,013

Portfolio

turnover

rate

................

25.07%

58.28%

g

114.19%

114.89%

g

107.90%

g

108.73%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

h

........................

25.07%

43.00%

g

73.45%

72.45%

g

40.38%

g

48.11%

*

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

III

from

January

1,

2021

through

April

27,

2021.

a

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

III.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

h

See

Note

1(f)

regarding

mortgage

dollar

rolls.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Strategic

Income

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-11

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

0.4%

Energy

Equipment

&

Services

0.1%

a

Weatherford

International

plc

.............................

United

States

13,794

$

292,019

Machinery

0.3%

a

Birch

Permian

Holdings,

Inc.

.............................

United

States

4,478

96,277

a

Birch

Permian

Holdings,

Inc.

.............................

United

States

34,907

746,137

842,414

Media

0.0%

†

a

Clear

Channel

Outdoor

Holdings,

Inc.

......................

United

States

20,804

22,260

a

iHeartMedia

,

Inc.,

A

....................................

United

States

8,384

66,150

a,b

iHeartMedia

,

Inc.,

B

...................................

United

States

142

1,042

89,452

Multiline

Retail

0.0%

a,b,c

K2016470219

South

Africa

Ltd.,

A

.........................

South

Africa

14,792,309

—

a,b,c

K2016470219

South

Africa

Ltd.,

B

.........................

South

Africa

1,472,041

—

—

Oil,

Gas

&

Consumable

Fuels

0.0%

†

a

Amplify

Energy

Corp.

..................................

United

States

431

2,819

a,b,c

Riviera

Resources,

Inc.

.................................

United

States

6,620

—

2,819

Total

Common

Stocks

(Cost

$2,063,658)

.......................................

1,226,704

Management

Investment

Companies

8.8%

Capital

Markets

8.8%

a,d

Franklin

Floating

Rate

Income

Fund

.......................

United

States

3,738,451

28,561,766

a

Total

Management

Investment

Companies

(Cost

$33,656,917)

....................

28,561,766

Warrants

Warrants

0.0%

†

Oil,

Gas

&

Consumable

Fuels

0.0%

a,b

Battalion

Oil

Corp.,

A,

10/08/22

...........................

United

States

879

—

a,b

Battalion

Oil

Corp.,

B,

10/08/22

...........................

United

States

1,098

—

a,b

Battalion

Oil

Corp.,

C,

10/08/22

...........................

United

States

1,412

—

—

Paper

&

Forest

Products

0.0%

†

a

Verso

Corp.,

7/25/23

...................................

United

States

592

5,061

Total

Warrants

(Cost

$–)

......................................................

5,061

Principal

Amount

*

Convertible

Bonds

0.0%

†

Wireless

Telecommunication

Services

0.0%

†

e,f,g

Digicel

Group

Holdings

Ltd.

,

Sub.

Bond

,

144A,

PIK,

7

%

,

Perpetual

Bermuda

29,100

13,089

Total

Convertible

Bonds

(Cost

$8,003)

.........................................

13,089

Corporate

Bonds

42.0%

Aerospace

&

Defense

0.5%

Boeing

Co.

(The)

,

Senior

Note

,

5.15

%

,

5/01/30

...............

United

States

700,000

672,506

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-12

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Aerospace

&

Defense

(continued)

g

TransDigm

,

Inc.

,

Senior

Secured

Note

,

144A,

6.25

%

,

3/15/26

....

United

States

900,000

$

870,327

1,542,833

Air

Freight

&

Logistics

0.2%

g

DAE

Funding

LLC

,

Senior

Note

,

144A,

1.55

%

,

8/01/24

.........

United

Arab

Emirates

300,000

281,224

FedEx

Corp.

,

Senior

Bond

,

4.05

%

,

2/15/48

..................

United

States

650,000

545,385

826,609

Airlines

0.6%

g

American

Airlines

Inc

/

AAdvantage

Loyalty

IP

Ltd.

,

Senior

Secured

Note

,

144A,

5.75

%

,

4/20/29

............................

United

States

600,000

514,302

g

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.

,

Senior

Secured

Note

,

144A,

4.5

%

,

10/20/25

.....................................

United

States

1,100,000

1,069,872

g

International

Consolidated

Airlines

Group

SA

,

Senior

Note

,

Reg

S,

3.75

%

,

3/25/29

.....................................

United

Kingdom

300,000

EUR

224,096

g

United

Airlines,

Inc.

,

Senior

Secured

Note

,

144A,

4.375

%

,

4/15/26

.

United

States

100,000

88,472

1,896,742

Auto

Components

1.1%

g

Allison

Transmission,

Inc.

,

Senior

Bond,

144A,

5.875%,

6/01/29

.....................

United

States

800,000

745,524

Senior

Bond,

144A,

3.75%,

1/30/31

......................

United

States

300,000

240,966

Dana,

Inc.

,

Senior

Note

,

5.625

%

,

6/15/28

...................

United

States

1,000,000

862,556

g

Dornoch

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

10/15/29

..........................................

United

States

600,000

443,850

Goodyear

Tire

&

Rubber

Co.

(The)

,

Senior

Note

,

5

%

,

7/15/29

....

United

States

800,000

663,654

g

Real

Hero

Merger

Sub

2,

Inc.

,

Senior

Note

,

144A,

6.25

%

,

2/01/29

.

United

States

1,000,000

759,813

3,716,363

Automobiles

0.3%

g

Jaguar

Land

Rover

Automotive

plc

,

Senior

Note

,

144A,

5.5

%

,

7/15/29

...........................................

United

Kingdom

1,200,000

871,692

Banks

2.9%

Banco

Santander

SA

,

Sub.

Bond

,

2.749

%

,

12/03/30

...........

Spain

300,000

238,572

g

BNP

Paribas

SA

,

Senior

Note

,

144A,

2.219%

to

6/08/25,

FRN

thereafter

,

6/09/26

...................................

France

500,000

462,275

g

China

Construction

Bank

Corp.

,

Sub.

Bond

,

Reg

S,

4.25%

to

2/26/24,

FRN

thereafter

,

2/27/29

........................

China

800,000

805,366

HSBC

Holdings

plc

,

Senior

Bond,

2.848%

to

6/03/30,

FRN

thereafter,

6/04/31

.....

United

Kingdom

800,000

676,662

Senior

Bond,

2.357%

to

8/17/30,

FRN

thereafter,

8/18/31

.....

United

Kingdom

300,000

243,439

Senior

Note,

4.18%

to

12/08/24,

FRN

thereafter,

12/09/25

.....

United

Kingdom

900,000

886,725

JPMorgan

Chase

&

Co.

,

f

R,

Junior

Sub.

Bond,

6%

to

7/31/23,

FRN

thereafter,

Perpetual

.

United

States

213,000

200,214

Senior

Bond,

3.2%,

6/15/26

............................

United

States

1,213,000

1,172,491

Senior

Bond,

2.522%

to

4/21/30,

FRN

thereafter,

4/22/31

.....

United

States

1,000,000

852,608

Senior

Note,

3.845%

to

6/13/24,

FRN

thereafter,

6/14/25

......

United

States

700,000

693,774

National

Bank

of

Canada

,

Senior

Note

,

3.75%

to

6/08/24,

FRN

thereafter

,

6/09/25

...................................

Canada

900,000

893,916

g

Societe

Generale

SA

,

Senior

Bond

,

144A,

2.889%

to

6/08/31,

FRN

thereafter

,

6/09/32

...................................

France

800,000

639,632

SVB

Financial

Group

,

Senior

Bond

,

3.125

%

,

6/05/30

...........

United

States

300,000

258,432

g

UniCredit

SpA

,

Senior

Bond

,

144A,

3.127%

to

6/02/31,

FRN

thereafter

,

6/03/32

...................................

Italy

500,000

390,600

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-13

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Banks

(continued)

Wells

Fargo

&

Co.

,

Senior

Note

,

1.654%

to

6/01/23,

FRN

thereafter

,

6/02/24

...........................................

United

States

900,000

$

879,437

9,294,143

Beverages

0.5%

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond

,

3.5

%

,

6/01/30

Belgium

800,000

750,670

g

Primo

Water

Holdings,

Inc.

,

Senior

Note

,

144A,

4.375

%

,

4/30/29

..

Canada

1,000,000

818,365

1,569,035

Biotechnology

0.2%

AbbVie,

Inc.

,

Senior

Note

,

3.2

%

,

11/21/29

...................

United

States

700,000

644,520

Building

Products

0.4%

g

Eco

Material

Technologies,

Inc.

,

Senior

Secured

Note

,

144A,

7.875

%

,

1/31/27

.....................................

United

States

500,000

445,026

g

Standard

Industries,

Inc.

,

Senior

Bond,

144A,

4.75%,

1/15/28

......................

United

States

500,000

428,880

Senior

Bond,

144A,

4.375%,

7/15/30

.....................

United

States

200,000

158,117

Senior

Bond,

144A,

3.375%,

1/15/31

.....................

United

States

200,000

147,910

1,179,933

Capital

Markets

1.3%

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Bond,

3.21%

to

4/21/41,

FRN

thereafter,

4/22/42

......

United

States

400,000

306,129

Senior

Note,

0.673%

to

3/07/23,

FRN

thereafter,

3/08/24

......

United

States

900,000

879,590

Senior

Note,

4.387%

to

6/14/26,

FRN

thereafter,

6/15/27

......

United

States

300,000

296,381

Morgan

Stanley

,

Senior

Bond,

3.591%

to

7/21/27,

FRN

thereafter,

7/22/28

.....

United

States

809,000

766,557

Senior

Note,

3.737%

to

4/23/23,

FRN

thereafter,

4/24/24

......

United

States

900,000

897,250

g

MSCI,

Inc.

,

Senior

Bond

,

144A,

3.25

%

,

8/15/33

...............

United

States

1,200,000

958,800

4,104,707

Chemicals

2.8%

g

Alpek

SAB

de

CV

,

Senior

Bond

,

144A,

4.25

%

,

9/18/29

.........

Mexico

800,000

720,608

e,g

Anagram

International,

Inc.

/

Anagram

Holdings

LLC

,

Secured

Note

,

144A,

PIK,

10

%

,

8/15/26

..............................

United

States

141,103

140,538

g

ASP

Unifrax

Holdings,

Inc.

,

Senior

Note

,

144A,

7.5

%

,

9/30/29

....

United

States

200,000

139,195

g

Braskem

Idesa

SAPI

,

Senior

Secured

Bond

,

144A,

6.99

%

,

2/20/32

Mexico

900,000

697,360

g

Braskem

Netherlands

Finance

BV

,

Senior

Bond

,

144A,

4.5

%

,

1/31/30

...........................................

Brazil

700,000

598,913

g

CNAC

HK

Finbridge

Co.

Ltd.

,

Senior

Note

,

Reg

S,

4.875

%

,

3/14/25

China

800,000

813,728

g

Consolidated

Energy

Finance

SA

,

Senior

Note

,

144A,

5.625

%

,

10/15/28

..........................................

Switzerland

700,000

564,087

g

CVR

Partners

LP

/

CVR

Nitrogen

Finance

Corp.

,

Senior

Secured

Note

,

144A,

6.125

%

,

6/15/28

...........................

United

States

300,000

268,652

g

Element

Solutions,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

9/01/28

.....

United

States

800,000

661,332

g

Gates

Global

LLC

/

Gates

Corp.

,

Senior

Note

,

144A,

6.25

%

,

1/15/26

United

States

400,000

371,556

g

INEOS

Quattro

Finance

1

plc

,

Senior

Note

,

144A,

3.75

%

,

7/15/26

.

United

Kingdom

800,000

EUR

674,713

e,g

Kobe

US

Midco

2,

Inc.

,

Senior

Note

,

144A,

PIK,

9.25

%

,

11/01/26

..

United

States

300,000

277,028

g

SABIC

Capital

II

BV

,

Senior

Bond

,

144A,

4.5

%

,

10/10/28

........

Saudi

Arabia

600,000

605,394

Sasol

Financing

USA

LLC

,

Senior

Bond

,

6.5

%

,

9/27/28

.........

South

Africa

900,000

816,665

g

Syngenta

Finance

NV

,

Senior

Note

,

144A,

4.892

%

,

4/24/25

......

Switzerland

800,000

802,785

g

Vibrantz

Technologies,

Inc.

,

Senior

Note

,

144A,

9

%

,

2/15/30

.....

United

States

800,000

565,076

Westlake

Corp.

,

Senior

Bond

,

3.375

%

,

6/15/30

...............

United

States

200,000

179,559

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-14

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Chemicals

(continued)

g

Yara

International

ASA

,

Senior

Bond

,

144A,

3.148

%

,

6/04/30

.....

Brazil

100,000

$

85,438

8,982,627

Commercial

Services

&

Supplies

0.6%

g

APX

Group,

Inc.

,

Senior

Note

,

144A,

5.75

%

,

7/15/29

...........

United

States

400,000

310,358

g

Prime

Security

Services

Borrower

LLC

/

Prime

Finance,

Inc.

,

Senior

Secured

Note

,

144A,

3.375

%

,

8/31/27

....................

United

States

1,000,000

826,870

g

Stericycle,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

1/15/29

...........

United

States

1,000,000

818,855

1,956,083

Communications

Equipment

0.3%

g

CommScope

Technologies

LLC

,

Senior

Note

,

144A,

5

%

,

3/15/27

..

United

States

1,374,000

1,017,677

Construction

&

Engineering

0.2%

g

Arcosa

,

Inc.

,

Senior

Note

,

144A,

4.375

%

,

4/15/29

.............

United

States

300,000

255,018

g

Great

Lakes

Dredge

&

Dock

Corp.

,

Senior

Note

,

144A,

5.25

%

,

6/01/29

...........................................

United

States

500,000

433,341

688,359

Construction

Materials

0.1%

g

Cemex

SAB

de

CV

,

Senior

Bond

,

144A,

3.875

%

,

7/11/31

.......

Mexico

500,000

376,368

Consumer

Finance

0.2%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

,

Senior

Bond

,

3.4

%

,

10/29/33

.................................

Ireland

500,000

395,428

g

PRA

Group,

Inc.

,

Senior

Note

,

144A,

5

%

,

10/01/29

............

United

States

300,000

249,006

644,434

Containers

&

Packaging

0.8%

g

Ardagh

Packaging

Finance

plc

/

Ardagh

Holdings

USA,

Inc.

,

Senior

Note

,

144A,

5.25

%

,

8/15/27

............................

United

States

300,000

214,730

g

Owens-Brockway

Glass

Container,

Inc.

,

Senior

Note,

144A,

5.875%,

8/15/23

.....................

United

States

375,000

371,736

Senior

Note,

144A,

6.625%,

5/13/27

.....................

United

States

75,000

70,095

g

Pactiv

Evergreen

Group

Issuer

LLC

/

Pactiv

Evergreen

Group

Issuer,

Inc.

,

Senior

Secured

Note

,

144A,

4.375

%

,

10/15/28

..........

United

States

500,000

425,727

g

Pactiv

Evergreen

Group

Issuer,

Inc./Pactiv

Evergreen

Group

Issuer

LLC

,

Senior

Secured

Note

,

144A,

4

%

,

10/15/27

.............

United

States

600,000

514,218

g

Sealed

Air

Corp.

,

Senior

Bond,

144A,

5.125%,

12/01/24

....................

United

States

709,000

704,845

Senior

Bond,

144A,

5.5%,

9/15/25

.......................

United

States

124,000

123,988

WRKCo

,

Inc.

,

Senior

Bond

,

3

%

,

6/15/33

....................

United

States

400,000

339,527

2,764,866

Diversified

Consumer

Services

0.2%

Grand

Canyon

University

,

5.125

%

,

10/01/28

.................

United

States

800,000

748,632

Diversified

Financial

Services

0.4%

g

Jefferson

Capital

Holdings

LLC

,

Senior

Note

,

144A,

6

%

,

8/15/26

..

United

States

700,000

613,746

g

MPH

Acquisition

Holdings

LLC

,

Senior

Note

,

144A,

5.75

%

,

11/01/28

United

States

1,000,000

830,705

1,444,451

Diversified

Telecommunication

Services

1.1%

g

Altice

France

Holding

SA

,

Senior

Note

,

144A,

6

%

,

2/15/28

......

Luxembourg

900,000

640,490

g

Altice

France

SA

,

Senior

Secured

Note

,

144A,

5.5

%

,

1/15/28

....

France

200,000

161,722

AT&T,

Inc.

,

Senior

Bond

,

3.65

%

,

9/15/59

....................

United

States

800,000

600,934

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-15

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Diversified

Telecommunication

Services

(continued)

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond

,

4.5

%

,

5/01/32

......................................

United

States

1,000,000

$

813,085

g

Iliad

Holding

SASU

,

Senior

Secured

Note,

144A,

6.5%,

10/15/26

...............

France

300,000

270,531

Senior

Secured

Note,

144A,

7%,

10/15/28

.................

France

600,000

522,870

Telefonica

Emisiones

SA

,

Senior

Bond

,

4.895

%

,

3/06/48

........

Spain

150,000

128,199

g

Virgin

Media

Secured

Finance

plc

,

Senior

Secured

Bond

,

144A,

4.5

%

,

8/15/30

......................................

United

Kingdom

400,000

329,738

3,467,569

Electric

Utilities

1.6%

g

CGNPC

International

Ltd.

,

Senior

Bond

,

Reg

S,

3.75

%

,

12/11/27

..

China

300,000

293,527

Duke

Energy

Corp.

,

Senior

Bond

,

2.45

%

,

6/01/30

.............

United

States

400,000

337,549

Exelon

Corp.

,

Senior

Bond

,

4.05

%

,

4/15/30

..................

United

States

1,300,000

1,248,815

Southern

Co.

(The)

,

Senior

Bond

,

4.4

%

,

7/01/46

..............

United

States

400,000

348,468

g

State

Grid

Overseas

Investment

BVI

Ltd.

,

Senior

Bond

,

144A,

3.5

%

,

5/04/27

...........................................

China

1,651,000

1,635,807

Virginia

Electric

and

Power

Co.

,

Senior

Bond

,

6.35

%

,

11/30/37

...

United

States

85,000

98,211

g

Vistra

Operations

Co.

LLC

,

Senior

Note,

144A,

4.375%,

5/01/29

.....................

United

States

1,100,000

923,522

Senior

Secured

Bond,

144A,

4.3%,

7/15/29

................

United

States

500,000

453,289

5,339,188

Electrical

Equipment

0.5%

g

Sensata

Technologies

BV

,

Senior

Note

,

144A,

4

%

,

4/15/29

......

United

States

1,000,000

850,290

g

Vertiv

Group

Corp.

,

Senior

Secured

Note

,

144A,

4.125

%

,

11/15/28

United

States

900,000

732,114

1,582,404

Electronic

Equipment,

Instruments

&

Components

0.5%

CDW

LLC

/

CDW

Finance

Corp.

,

Senior

Note

,

3.25

%

,

2/15/29

....

United

States

900,000

760,104

Flex

Ltd.

,

Senior

Bond

,

4.875

%

,

5/12/30

....................

United

States

800,000

762,394

1,522,498

Energy

Equipment

&

Services

0.6%

g

Nabors

Industries

Ltd.

,

Senior

Note

,

144A,

7.25

%

,

1/15/26

......

United

States

400,000

355,310

g

Nabors

Industries,

Inc.

,

Senior

Note

,

144A,

7.375

%

,

5/15/27

.....

United

States

200,000

190,251

g

Schlumberger

Holdings

Corp.

,

Senior

Note

,

144A,

3.9

%

,

5/17/28

..

United

States

400,000

378,344

g

Weatherford

International

Ltd.

,

Senior

Note,

144A,

11%,

12/01/24

.......................

United

States

51,000

51,455

Senior

Note,

144A,

8.625%,

4/30/30

.....................

United

States

1,200,000

998,084

1,973,444

Entertainment

0.5%

g

Magallanes,

Inc.

,

Senior

Note

,

144A,

4.054

%

,

3/15/29

..........

United

States

300,000

275,010

Netflix,

Inc.

,

Senior

Bond,

4.375%,

11/15/26

.........................

United

States

300,000

289,839

Senior

Bond,

5.875%,

11/15/28

.........................

United

States

1,000,000

980,210

1,545,059

Equity

Real

Estate

Investment

Trusts

(REITs)

1.2%

g

American

Finance

Trust,

Inc.

/

American

Finance

Operating

Partner

LP

,

Senior

Note

,

144A,

4.5

%

,

9/30/28

.....................

United

States

500,000

393,385

AvalonBay

Communities,

Inc.

,

Senior

Bond

,

2.45

%

,

1/15/31

.....

United

States

500,000

432,510

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-16

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Equity

Real

Estate

Investment

Trusts

(REITs)

(continued)

g

Global

Net

Lease,

Inc.

/

Global

Net

Lease

Operating

Partnership

LP

,

Senior

Note

,

144A,

3.75

%

,

12/15/27

......................

United

States

400,000

$

334,622

MPT

Operating

Partnership

LP

/

MPT

Finance

Corp.

,

Senior

Bond

,

3.5

%

,

3/15/31

......................................

United

States

300,000

237,337

Simon

Property

Group

LP

,

Senior

Bond

,

4.25

%

,

11/30/46

.......

United

States

800,000

691,251

g

VICI

Properties

LP

/

VICI

Note

Co.,

Inc.

,

Senior

Note,

144A,

3.75%,

2/15/27

......................

United

States

1,400,000

1,234,251

Senior

Note,

144A,

3.875%,

2/15/29

.....................

United

States

300,000

258,605

g

XHR

LP

,

Senior

Secured

Note

,

144A,

4.875

%

,

6/01/29

.........

United

States

400,000

343,749

3,925,710

Food

Products

0.4%

g

Bimbo

Bakeries

USA,

Inc.

,

Senior

Bond

,

144A,

4

%

,

5/17/51

.....

Mexico

200,000

162,471

g

Darling

Ingredients,

Inc.

,

Senior

Note

,

144A,

6

%

,

6/15/30

.......

United

States

100,000

99,832

g

JBS

Finance

Luxembourg

SARL

,

Senior

Bond,

144A,

3.625%,

1/15/32

.....................

United

States

400,000

324,090

Senior

Note,

144A,

2.5%,

1/15/27

.......................

United

States

700,000

610,534

1,196,927

Gas

Utilities

0.1%

Piedmont

Natural

Gas

Co.,

Inc.

,

Senior

Bond

,

3.35

%

,

6/01/50

....

United

States

300,000

224,204

Health

Care

Equipment

&

Supplies

0.1%

g

Medline

Borrower

LP

,

Senior

Note

,

144A,

5.25

%

,

10/01/29

......

United

States

500,000

412,210

Health

Care

Providers

&

Services

1.6%

Centene

Corp.

,

Senior

Note,

4.25%,

12/15/27

..........................

United

States

300,000

280,971

Senior

Note,

2.45%,

7/15/28

...........................

United

States

100,000

83,673

Senior

Note,

4.625%,

12/15/29

.........................

United

States

200,000

187,087

Senior

Note,

3.375%,

2/15/30

..........................

United

States

600,000

510,549

Senior

Note,

2.625%,

8/01/31

..........................

United

States

200,000

159,532

g

CHS/Community

Health

Systems,

Inc.

,

Secured

Note,

144A,

6.875%,

4/15/29

....................

United

States

800,000

518,328

Senior

Secured

Note,

144A,

5.625%,

3/15/27

..............

United

States

700,000

594,366

CVS

Health

Corp.

,

Senior

Bond

,

1.75

%

,

8/21/30

..............

United

States

400,000

320,726

g

DaVita,

Inc.

,

Senior

Note

,

144A,

4.625

%

,

6/01/30

.............

United

States

800,000

626,418

Elevance

Health,

Inc.

,

Senior

Bond

,

3.7

%

,

9/15/49

............

United

States

150,000

124,337

HCA,

Inc.

,

Senior

Bond

,

3.5

%

,

9/01/30

.....................

United

States

100,000

85,361

g

ModivCare

Escrow

Issuer,

Inc.

,

Senior

Note

,

144A,

5

%

,

10/01/29

.

United

States

500,000

404,568

Orlando

Health

Obligated

Group

,

3.777

%

,

10/01/28

............

United

States

330,000

315,373

Quest

Diagnostics,

Inc.

,

Senior

Bond

,

2.8

%

,

6/30/31

...........

United

States

200,000

171,556

g

Tenet

Healthcare

Corp.

,

Senior

Secured

Note

,

144A,

6.125

%

,

6/15/30

...........................................

United

States

800,000

740,448

5,123,293

Hotels,

Restaurants

&

Leisure

1.3%

g

Everi

Holdings,

Inc.

,

Senior

Note

,

144A,

5

%

,

7/15/29

...........

United

States

500,000

423,170

Las

Vegas

Sands

Corp.

,

Senior

Bond

,

3.9

%

,

8/08/29

...........

United

States

800,000

654,262

g

Melco

Resorts

Finance

Ltd.

,

Senior

Note

,

144A,

5.75

%

,

7/21/28

..

Hong

Kong

600,000

387,000

g

Motion

Bondco

DAC

,

Senior

Note

,

144A,

6.625

%

,

11/15/27

......

United

Kingdom

200,000

158,619

g

NCL

Corp.

Ltd.

,

Senior

Note

,

144A,

5.875

%

,

3/15/26

...........

United

States

600,000

472,695

g

Papa

John's

International,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

9/15/29

United

States

300,000

247,905

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-17

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Hotels,

Restaurants

&

Leisure

(continued)

g

Premier

Entertainment

Sub

LLC

/

Premier

Entertainment

Finance

Corp.

,

Senior

Bond,

144A,

5.875%,

9/01/31

.....................

United

States

400,000

$

278,159

Senior

Note,

144A,

5.625%,

9/01/29

.....................

United

States

500,000

356,740

g

Station

Casinos

LLC

,

Senior

Note

,

144A,

4.5

%

,

2/15/28

........

United

States

200,000

169,210

g

Studio

City

Finance

Ltd.

,

Senior

Note

,

144A,

5

%

,

1/15/29

.......

Macau

1,200,000

621,414

g

Wynn

Macau

Ltd.

,

Senior

Note

,

144A,

5.625

%

,

8/26/28

.........

Macau

700,000

433,149

4,202,323

Household

Durables

0.4%

M/I

Homes,

Inc.

,

Senior

Note

,

3.95

%

,

2/15/30

................

United

States

600,000

453,289

Mohawk

Industries,

Inc.

,

Senior

Bond

,

3.625

%

,

5/15/30

.........

United

States

810,000

723,600

1,176,889

Household

Products

0.4%

g

Central

Garden

&

Pet

Co.

,

Senior

Bond

,

144A,

4.125

%

,

4/30/31

..

United

States

700,000

563,035

g

Kimberly-Clark

de

Mexico

SAB

de

CV

,

Senior

Bond

,

144A,

2.431

%

,

7/01/31

...........................................

Mexico

300,000

249,940

g

Spectrum

Brands,

Inc.

,

Senior

Bond

,

144A,

3.875

%

,

3/15/31

.....

United

States

500,000

403,700

1,216,675

Independent

Power

and

Renewable

Electricity

Producers

1.7%

g

Atlantica

Sustainable

Infrastructure

plc

,

Senior

Note

,

144A,

4.125

%

,

6/15/28

...........................................

Spain

400,000

349,074

g

Calpine

Corp.

,

Senior

Bond

,

144A,

5

%

,

2/01/31

...............

United

States

600,000

485,871

g

Clearway

Energy

Operating

LLC

,

Senior

Note

,

144A,

3.75

%

,

2/15/31

United

States

700,000

566,471

g

Colbun

SA

,

Senior

Bond,

144A,

3.95%,

10/11/27

.....................

Chile

800,000

746,300

Senior

Bond,

144A,

3.15%,

3/06/30

......................

Chile

300,000

250,902

g

InterGen

NV

,

Senior

Secured

Bond

,

144A,

7

%

,

6/30/23

.........

Netherlands

1,100,000

1,060,576

g

Leeward

Renewable

Energy

Operations

LLC

,

Senior

Note

,

144A,

4.25

%

,

7/01/29

.....................................

United

States

1,000,000

799,950

g,h

Talen

Energy

Supply

LLC

,

Senior

Secured

Note

,

144A,

7.25

%

,

5/15/27

...........................................

United

States

1,300,000

1,281,898

5,541,042

Insurance

0.2%

Arch

Capital

Group

Ltd.

,

Senior

Bond

,

3.635

%

,

6/30/50

.........

United

States

1,000,000

779,634

Interactive

Media

&

Services

0.6%

g

Tencent

Holdings

Ltd.

,

Senior

Note

,

144A,

2.39

%

,

6/03/30

.......

China

2,100,000

1,759,676

g

ZipRecruiter,

Inc.

,

Senior

Note

,

144A,

5

%

,

1/15/30

.............

United

States

400,000

336,504

2,096,180

Internet

&

Direct

Marketing

Retail

0.6%

Alibaba

Group

Holding

Ltd.

,

Senior

Bond

,

4

%

,

12/06/37

.........

China

400,000

346,025

JD.com,

Inc.

,

Senior

Bond

,

3.375

%

,

1/14/30

.................

China

1,200,000

1,097,480

g

Match

Group

Holdings

II

LLC

,

Senior

Note

,

144A,

3.625

%

,

10/01/31

United

States

600,000

473,670

1,917,175

IT

Services

1.1%

g

Cablevision

Lightpath

LLC

,

Senior

Secured

Note

,

144A,

3.875

%

,

9/15/27

...........................................

United

States

900,000

745,956

g

Gartner,

Inc.

,

Senior

Note,

144A,

4.5%,

7/01/28

.......................

United

States

700,000

644,000

Senior

Note,

144A,

3.625%,

6/15/29

.....................

United

States

200,000

173,618

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-18

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

IT

Services

(continued)

g

Northwest

Fiber

LLC

/

Northwest

Fiber

Finance

Sub,

Inc.

,

Senior

Note

,

144A,

6

%

,

2/15/28

..............................

United

States

1,100,000

$

792,107

g

Presidio

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

4.875

%

,

2/01/27

United

States

1,200,000

1,104,138

3,459,819

Machinery

0.2%

g

ATS

Automation

Tooling

Systems,

Inc.

,

Senior

Note

,

144A,

4.125

%

,

12/15/28

..........................................

Canada

400,000

334,586

Parker-Hannifin

Corp.

,

Senior

Note

,

4.25

%

,

9/15/27

...........

United

States

400,000

397,513

732,099

Marine

0.4%

g

ICTSI

Treasury

BV

,

Senior

Bond

,

Reg

S,

4.625

%

,

1/16/23

.......

Philippines

1,200,000

1,210,752

Media

1.5%

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

,

Senior

Secured

Bond

,

2.8

%

,

4/01/31

.......

United

States

1,300,000

1,042,464

g

Clear

Channel

Outdoor

Holdings,

Inc.

,

Senior

Note,

144A,

7.75%,

4/15/28

......................

United

States

400,000

292,058

Senior

Note,

144A,

7.5%,

6/01/29

.......................

United

States

300,000

216,609

Senior

Secured

Note,

144A,

5.125%,

8/15/27

..............

United

States

300,000

254,092

g

Diamond

Sports

Group

LLC

/

Diamond

Sports

Finance

Co.

,

Secured

Note

,

144A,

5.375

%

,

8/15/26

...........................

United

States

600,000

150,750

g

Directv

Financing

LLC

/

Directv

Financing

Co-Obligor,

Inc.

,

Senior

Secured

Note

,

144A,

5.875

%

,

8/15/27

....................

United

States

600,000

513,783

g

DISH

DBS

Corp.

,

Senior

Secured

Note

,

144A,

5.75

%

,

12/01/28

...

United

States

600,000

445,371

g

Sinclair

Television

Group,

Inc.

,

Senior

Secured

Note

,

144A,

4.125

%

,

12/01/30

..........................................

United

States

800,000

635,600

g

Sirius

XM

Radio,

Inc.

,

Senior

Note

,

144A,

4

%

,

7/15/28

.........

United

States

600,000

521,127

g

Univision

Communications,

Inc.

,

Senior

Secured

Note,

144A,

5.125%,

2/15/25

..............

United

States

900,000

848,700

Senior

Secured

Note,

144A,

4.5%,

5/01/29

................

United

States

100,000

84,016

5,004,570

Metals

&

Mining

0.3%

g

Constellium

SE

,

Senior

Note

,

144A,

3.75

%

,

4/15/29

...........

United

States

700,000

556,211

g

SunCoke

Energy,

Inc.

,

Senior

Secured

Note

,

144A,

4.875

%

,

6/30/29

United

States

600,000

480,260

1,036,471

Multiline

Retail

0.3%

b,e,g

K2016470219

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

3

%

,

12/31/22

.......................................

South

Africa

1,021,044

—

b,e,g

K2016470260

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

25

%

,

12/31/22

......................................

South

Africa

501,953

—

g

Macy's

Retail

Holdings

LLC

,

Senior

Bond,

144A,

6.125%,

3/15/32

.....................

United

States

500,000

418,585

Senior

Note,

144A,

5.875%,

3/15/30

.....................

United

States

500,000

420,400

838,985

Oil,

Gas

&

Consumable

Fuels

5.1%

g

Antero

Resources

Corp.

,

Senior

Note,

144A,

8.375%,

7/15/26

.....................

United

States

130,000

137,726

Senior

Note,

144A,

7.625%,

2/01/29

.....................

United

States

166,000

169,147

Canadian

Natural

Resources

Ltd.

,

Senior

Bond

,

2.95

%

,

7/15/30

..

Canada

450,000

395,293

Cenovus

Energy,

Inc.

,

Senior

Note

,

5.375

%

,

7/15/25

...........

Canada

277,000

285,379

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-19

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Oil,

Gas

&

Consumable

Fuels

(continued)

g

Crestwood

Midstream

Partners

LP

/

Crestwood

Midstream

Finance

Corp.

,

Senior

Note

,

144A,

6

%

,

2/01/29

....................

United

States

1,500,000

$

1,311,518

g

CrownRock

LP

/

CrownRock

Finance,

Inc.

,

Senior

Note

,

144A,

5

%

,

5/01/29

...........................................

United

States

300,000

269,517

g

DT

Midstream,

Inc.

,

Senior

Bond

,

144A,

4.375

%

,

6/15/31

.......

United

States

500,000

420,260

g

Endeavor

Energy

Resources

LP

/

EER

Finance,

Inc.

,

Senior

Bond

,

144A,

5.75

%

,

1/30/28

.................................

United

States

900,000

859,739

Energy

Transfer

LP

,

Senior

Bond

,

3.75

%

,

5/15/30

.............

United

States

200,000

180,442

EnLink

Midstream

LLC

,

Senior

Bond,

5.375%,

6/01/29

..........................

United

States

1,100,000

964,466

g

Senior

Note,

144A,

5.625%,

1/15/28

.....................

United

States

100,000

91,902

g

EQM

Midstream

Partners

LP

,

Senior

Note

,

144A,

7.5

%

,

6/01/27

..

United

States

100,000

96,659

g

Hilcorp

Energy

I

LP

/

Hilcorp

Finance

Co.

,

Senior

Bond,

144A,

6%,

2/01/31

........................

United

States

700,000

604,625

Senior

Bond,

144A,

6.25%,

4/15/32

......................

United

States

200,000

176,010

Senior

Note,

144A,

5.75%,

2/01/29

......................

United

States

200,000

175,978

g

Kinetik

Holdings

LP

,

Senior

Note

,

144A,

5.875

%

,

6/15/30

........

United

States

800,000

763,504

g

Lundin

Energy

Finance

BV

,

Senior

Bond

,

144A,

3.1

%

,

7/15/31

...

Netherlands

900,000

745,507

g

Martin

Midstream

Partners

LP

/

Martin

Midstream

Finance

Corp.

,

Secured

Note

,

144A,

11.5

%

,

2/28/25

.....................

United

States

1,394,630

1,378,697

MPLX

LP

,

Senior

Note

,

2.65

%

,

8/15/30

.....................

United

States

1,500,000

1,253,569

Occidental

Petroleum

Corp.

,

Senior

Bond,

8.875%,

7/15/30

..........................

United

States

700,000

804,991

Senior

Bond,

6.125%,

1/01/31

..........................

United

States

600,000

609,372

Senior

Bond,

6.45%,

9/15/36

...........................

United

States

500,000

513,710

Senior

Bond,

6.2%,

3/15/40

............................

United

States

800,000

789,656

Sabine

Pass

Liquefaction

LLC

,

Senior

Secured

Note

,

4.5

%

,

5/15/30

United

States

1,600,000

1,535,012

Sunoco

LP

/

Sunoco

Finance

Corp.

,

Senior

Note,

6%,

4/15/27

.............................

United

States

500,000

477,577

Senior

Note,

4.5%,

5/15/29

............................

United

States

1,200,000

991,463

g

Venture

Global

Calcasieu

Pass

LLC

,

Senior

Secured

Bond,

144A,

4.125%,

8/15/31

..............

United

States

300,000

257,249

Senior

Secured

Note,

144A,

3.875%,

8/15/29

..............

United

States

300,000

263,235

16,522,203

Paper

&

Forest

Products

0.3%

g

Glatfelter

Corp.

,

Senior

Note

,

144A,

4.75

%

,

11/15/29

...........

United

States

400,000

280,422

Suzano

Austria

GmbH

,

Senior

Bond,

3.75%,

1/15/31

...........................

Brazil

700,000

567,147

DM3N,

Senior

Bond,

3.125%,

1/15/32

....................

Brazil

400,000

302,068

1,149,637

Personal

Products

0.3%

g

Oriflame

Investment

Holding

plc

,

Senior

Secured

Note

,

144A,

5.125

%

,

5/04/26

.....................................

Switzerland

800,000

512,000

g

Prestige

Brands,

Inc.

,

Senior

Bond

,

144A,

3.75

%

,

4/01/31

.......

United

States

400,000

332,332

844,332

Pharmaceuticals

1.1%

g

Bausch

Health

Cos.,

Inc.

,

Senior

Bond,

144A,

5.25%,

2/15/31

......................

United

States

300,000

154,410

Senior

Secured

Note,

144A,

6.125%,

2/01/27

..............

United

States

100,000

85,179

Senior

Secured

Note,

144A,

4.875%,

6/01/28

..............

United

States

1,000,000

784,620

g

Bayer

US

Finance

II

LLC

,

Senior

Bond

,

144A,

4.375

%

,

12/15/28

..

Germany

889,000

866,620

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-20

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Pharmaceuticals

(continued)

g

Organon

&

Co.

/

Organon

Foreign

Debt

Co-Issuer

BV

,

Senior

Bond,

144A,

5.125%,

4/30/31

.....................

United

States

300,000

$

259,941

Senior

Secured

Note,

144A,

4.125%,

4/30/28

..............

United

States

500,000

444,362

Royalty

Pharma

plc

,

Senior

Bond

,

3.3

%

,

9/02/40

..............

United

States

500,000

370,106

Teva

Pharmaceutical

Finance

Netherlands

III

BV

,

Senior

Note

,

5.125

%

,

5/09/29

.....................................

Israel

900,000

743,697

3,708,935

Real

Estate

Management

&

Development

0.8%

g

China

Overseas

Finance

Cayman

VI

Ltd.

,

Senior

Bond

,

Reg

S,

5.95

%

,

5/08/24

.....................................

China

700,000

722,645

g

Country

Garden

Holdings

Co.

Ltd.

,

Senior

Secured

Note

,

Reg

S,

7.25

%

,

4/08/26

.....................................

China

1,000,000

548,000

g

Five

Point

Operating

Co.

LP

/

Five

Point

Capital

Corp.

,

Senior

Note

,

144A,

7.875

%

,

11/15/25

...............................

United

States

200,000

168,026

g

Howard

Hughes

Corp.

(The)

,

Senior

Note

,

144A,

5.375

%

,

8/01/28

.

United

States

1,000,000

839,565

g

Vivion

Investments

SARL

,

Senior

Note

,

Reg

S,

3

%

,

8/08/24

.....

Luxembourg

200,000

EUR

181,633

2,459,869

Road

&

Rail

0.6%

CSX

Corp.

,

Senior

Bond

,

4.1

%

,

3/15/44

....................

United

States

550,000

484,082

g

First

Student

Bidco

,

Inc.

/

First

Transit

Parent,

Inc.

,

Senior

Secured

Note

,

144A,

4

%

,

7/31/29

..............................

United

States

300,000

240,490

g

Kazakhstan

Temir

Zholy

Finance

BV

,

Senior

Bond

,

144A,

6.95

%

,

7/10/42

...........................................

Kazakhstan

800,000

728,560

g

NESCO

Holdings

II,

Inc.

,

Secured

Note

,

144A,

5.5

%

,

4/15/29

....

United

States

500,000

420,215

1,873,347

Software

0.4%

g

Condor

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

7.375

%

,

2/15/30

...

United

States

500,000

407,865

g

Rocket

Software,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

2/15/29

........

United

States

1,100,000

797,136

1,205,001

Specialty

Retail

0.7%

AutoNation,

Inc.

,

Senior

Bond

,

4.75

%

,

6/01/30

...............

United

States

200,000

188,353

g

Lithia

Motors,

Inc.

,

Senior

Bond,

144A,

4.375%,

1/15/31

.....................

United

States

500,000

427,100

Senior

Note,

144A,

3.875%,

6/01/29

.....................

United

States

700,000

596,096

g

Michaels

Cos.,

Inc.

(The)

,

Senior

Note

,

144A,

7.875

%

,

5/01/29

...

United

States

600,000

397,206

g

Park

River

Holdings,

Inc.

,

Senior

Note

,

144A,

6.75

%

,

8/01/29

....

United

States

1,200,000

779,973

2,388,728

Technology

Hardware,

Storage

&

Peripherals

0.0%

†

Teledyne

FLIR

LLC

,

Senior

Note

,

2.5

%

,

8/01/30

..............

United

States

200,000

165,925

Thrifts

&

Mortgage

Finance

0.3%

g

Ladder

Capital

Finance

Holdings

LLLP

/

Ladder

Capital

Finance

Corp.

,

Senior

Note

,

144A,

4.75

%

,

6/15/29

.................

United

States

1,100,000

848,296

Tobacco

0.3%

Altria

Group,

Inc.

,

Senior

Bond

,

3.4

%

,

5/06/30

................

United

States

1,200,000

1,019,035

Trading

Companies

&

Distributors

0.6%

g

H&E

Equipment

Services,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

12/15/28

United

States

1,100,000

892,386

g

Herc

Holdings,

Inc.

,

Senior

Note

,

144A,

5.5

%

,

7/15/27

..........

United

States

1,000,000

914,791

1,807,177

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-21

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Transportation

Infrastructure

0.0%

†

g

Rutas

2

and

7

Finance

Ltd.

,

Senior

Secured

Bond

,

144A,

Zero

Cpn

.,

9/30/36

...........................................

United

States

193,333

$

114,367

Wireless

Telecommunication

Services

0.7%

g

America

Movil

SAB

de

CV

,

Senior

Bond

,

144A,

5.375

%

,

4/04/32

..

Mexico

700,000

622,751

e,g

Digicel

Group

Holdings

Ltd.

,

Senior

Note

,

144A,

PIK,

8

%

,

4/01/25

.

Bermuda

20,686

14,435

T-Mobile

USA,

Inc.

,

Senior

Secured

Bond,

3.3%,

2/15/51

.....................

United

States

500,000

365,177

Senior

Secured

Note,

3.875%,

4/15/30

...................

United

States

1,300,000

1,214,452

2,216,815

Total

Corporate

Bonds

(Cost

$162,722,881)

.....................................

136,118,861

i

Senior

Floating

Rate

Interests

0.7%

Aerospace

&

Defense

0.1%

j

Dynasty

Acquisition

Co.,

Inc.

,

2020

Term

Loan,

B1,

5.166%,

(1-month

USD

LIBOR

+

3.5%),

4/06/26

...........................................

United

States

243,980

225,681

2020

Term

Loan,

B2,

5.166%,

(1-month

USD

LIBOR

+

3.5%),

4/06/26

...........................................

United

States

131,172

121,334

347,015

a

a

a

a

a

a

Diversified

Consumer

Services

0.1%

j

KUEHG

Corp.

,

Term

Loan,

B3

,

5.077

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

2/21/25

.....................................

United

States

468,999

438,179

j

Leisure

Products

0.2%

Hercules

Achievement,

Inc.

(Varsity

Brands

Holding

Co.,

Inc.)

,

First

Lien,

Initial

Term

Loan

,

5.166

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

12/16/24

..........................................

United

States

190,409

178,866

Motion

Acquisition

Ltd.

,

Term

Loan,

B1,

5.5%,

(3-month

USD

LIBOR

+

3.25%),

11/12/26

.

United

Kingdom

346,603

321,184

Term

Loan,

B2,

5.5%,

(3-month

USD

LIBOR

+

3.25%),

11/12/26

.

United

Kingdom

49,412

45,789

545,839

a

a

a

a

a

a

j

Media

0.3%

Cengage

Learning,

Inc.

,

First

Lien,

Term

Loan,

B

,

5.75

%

,

(

3-month

USD

LIBOR

+

4.75

%

),

7/14/26

..........................

United

States

741,808

671,337

Clear

Channel

Outdoor

Holdings,

Inc.

,

Term

Loan,

B

,

4.739

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

8/21/26

...................

United

States

129,663

112,061

Diamond

Sports

Group

LLC

,

First

Lien,

CME

Term

Loan,

9.181%,

(1-month

SOFR

+

8%),

5/25/26

...........................................

United

States

189,240

188,845

Second

Lien,

CME

Term

Loan,

4.431%,

(1-month

SOFR

+

3.25%),

8/24/26

...........................................

United

States

442,649

107,710

1,079,953

a

a

a

a

a

a

Total

Senior

Floating

Rate

Interests

(Cost

$2,870,220)

...........................

2,410,986

k

Marketplace

Loans

2.9%

b

Diversified

Financial

Services

2.9%

a

a

a

a

a

a

Total

Marketplace

Loans

(Cost

$9,694,332)

.....................................

9,237,918

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-22

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Foreign

Government

and

Agency

Securities

7.1%

g

African

Export-Import

Bank

(The)

,

Senior

Bond

,

144A,

3.994

%

,

9/21/29

...........................................

Supranational

l

1,400,000

$

1,205,971

g

Banque

Ouest

Africaine

de

Developpement

,

Senior

Bond

,

144A,

5

%

,

7/27/27

...........................................

Supranational

l

1,200,000

1,096,536

Brazil

Government

Bond

,

Senior

Bond

,

3.875

%

,

6/12/30

........

Brazil

1,000,000

839,281

Colombia

Government

Bond

,

Senior

Bond,

3.875%,

4/25/27

..........................

Colombia

1,400,000

1,240,387

Senior

Bond,

9.85%,

6/28/27

...........................

Colombia

5,315,000,000

COP

1,261,813

Senior

Bond,

5%,

6/15/45

.............................

Colombia

1,700,000

1,142,484

g

Comision

Federal

de

Electricidad

,

Senior

Bond

,

144A,

3.348

%

,

2/09/31

...........................................

Mexico

1,000,000

767,045

g

Dominican

Republic

Government

Bond

,

Senior

Bond,

144A,

6.85%,

1/27/45

......................

Dominican

Republic

700,000

555,520

Senior

Note,

144A,

8.9%,

2/15/23

.......................

Dominican

Republic

81,500,000

DOP

1,483,306

Ecopetrol

SA

,

Senior

Bond,

4.125%,

1/16/25

..........................

Colombia

400,000

371,360

Senior

Bond,

4.625%,

11/02/31

.........................

Colombia

400,000

304,000

f,g

Electricite

de

France

SA

,

Junior

Sub.

Bond

,

144A,

5.25%

to

1/28/23,

FRN

thereafter

,

Perpetual

.............................

France

2,425,000

2,297,141

g

Export-Import

Bank

of

India

,

Senior

Bond

,

144A,

3.875

%

,

2/01/28

.

India

1,655,000

1,581,303

g

Gabon

Government

Bond

,

Senior

Bond

,

144A,

6.625

%

,

2/06/31

..

Gabon

400,000

296,916

g

Indonesia

Asahan

Aluminium

Persero

PT

,

Senior

Bond

,

144A,

5.45

%

,

5/15/30

.....................................

Indonesia

1,400,000

1,316,161

g

Indonesia

Government

Bond

,

Senior

Bond,

144A,

4.35%,

1/08/27

......................

Indonesia

900,000

899,929

Senior

Bond,

144A,

3.85%,

7/18/27

......................

Indonesia

1,200,000

1,178,912

Senior

Bond,

144A,

4.625%,

4/15/43

.....................

Indonesia

300,000

272,775

g

Iraq

Government

Bond

,

Senior

Bond

,

144A,

5.8

%

,

1/15/28

......

Iraq

487,500

439,386

g

Israel

Electric

Corp.

Ltd.

,

Senior

Secured

Bond

,

144A,

Reg

S,

4.25

%

,

8/14/28

...........................................

Israel

1,000,000

963,743

Mexico

Government

Bond

,

Senior

Bond

,

3.75

%

,

1/11/28

........

Mexico

500,000

479,862

Peru

Government

Bond

,

Senior

Bond

,

6.55

%

,

3/14/37

..........

Peru

800,000

869,677

g

Romania

Government

Bond

,

Senior

Bond

,

144A,

6.125

%

,

1/22/44

.

Romania

500,000

440,581

Turkey

Government

Bond

,

Senior

Bond,

4.875%,

10/09/26

.........................

Turkey

800,000

643,050

Senior

Bond,

5.95%,

1/15/31

...........................

Turkey

1,600,000

1,165,832

Total

Foreign

Government

and

Agency

Securities

(Cost

$27,817,994)

..............

23,112,971

U.S.

Government

and

Agency

Securities

16.5%

U.S.

Treasury

Bonds

,

3%,

11/15/44

.......................................

United

States

2,000,000

1,855,234

3%,

2/15/47

........................................

United

States

1,800,000

1,682,227

3%,

2/15/48

........................................

United

States

1,800,000

1,696,781

U.S.

Treasury

Notes

,

1.5%,

9/15/22

......................................

United

States

3,600,000

3,598,790

1.625%,

11/15/22

....................................

United

States

2,700,000

2,693,089

1.75%,

1/31/23

.....................................

United

States

2,700,000

2,687,105

2.75%,

5/31/23

.....................................

United

States

1,000,000

998,717

2.75%,

2/15/24

.....................................

United

States

3,700,000

3,688,148

2.625%,

3/31/25

.....................................

United

States

7,000,000

6,930,273

2.875%,

4/30/25

.....................................

United

States

9,100,000

9,063,031

m

Index

Linked,

0.625%,

1/15/26

..........................

United

States

2,800,000

3,446,200

2.125%,

5/31/26

.....................................

United

States

4,600,000

4,445,020

2.25%,

2/15/27

.....................................

United

States

1,400,000

1,350,180

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-23

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

U.S.

Government

and

Agency

Securities

(continued)

U.S.

Treasury

Notes,

(continued)

1.125%,

2/28/27

.....................................

United

States

5,500,000

$

5,040,020

2.375%,

5/15/27

.....................................

United

States

4,400,000

4,260,437

Total

U.S.

Government

and

Agency

Securities

(Cost

$55,588,059)

.................

53,435,252

Asset-Backed

Securities

7.6%

Airlines

0.0%

†

United

Airlines

Pass-Through

Trust

,

2020-1

,

B

,

4.875

%

,

7/15/27

.

..

United

States

83,000

78,942

Consumer

Finance

0.5%

j

Citibank

Credit

Card

Issuance

Trust

,

2017-A7

,

A7

,

FRN

,

1.53

%

,

(

1-month

USD

LIBOR

+

0.37

%

),

8/08/24

.

..................

United

States

1,494,000

1,494,300

Diversified

Financial

Services

7.1%

g,j

Antares

CLO

Ltd.

,

2018-1A

,

B

,

144A,

FRN

,

2.713

%

,

(

3-month

USD

LIBOR

+

1.65

%

),

4/20/31

.

.............................

United

States

1,455,000

1,399,834

g,j

BCC

Middle

Market

CLO

LLC

,

2018-1A

,

A2

,

144A,

FRN

,

3.213

%

,

(

3-month

USD

LIBOR

+

2.15

%

),

10/20/30

.

.................

United

States

700,000

681,582

g,j

BlueMountain

CLO

Ltd.

,

2018-1A

,

D

,

144A,

FRN

,

4.336

%

,

(

3-month

USD

LIBOR

+

3.05

%

),

7/30/30

.

.........................

United

States

1,000,000

898,464

g,j

BlueMountain

Fuji

EUR

CLO

V

DAC

,

5A

,

B

,

144A,

FRN

,

1.55

%

,

(

3-month

EURIBOR

+

1.55

%

),

1/15/33

.

...................

Ireland

600,000

EUR

586,349

g,j

Burnham

Park

CLO

Ltd.

,

2016-1A

,

BR

,

144A,

FRN

,

2.563

%

,

(

3-month

USD

LIBOR

+

1.5

%

),

10/20/29

.

..................

United

States

460,000

444,132

g,j

Carlyle

Global

Market

Strategies

CLO

Ltd.

,

2014-4RA

,

C

,

144A,

FRN

,

3.944

%

,

(

3-month

USD

LIBOR

+

2.9

%

),

7/15/30

.

........

United

States

300,000

269,190

g,j

Carlyle

GMS

Finance

MM

CLO

LLC

,

2015-1A

,

A2R

,

144A,

FRN

,

3.244

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

10/15/31

.

...........

United

States

1,213,000

1,172,837

g,j

Carlyle

US

CLO

Ltd.

,

2021-1A

,

A2

,

144A,

FRN

,

2.494

%

,

(

3-month

USD

LIBOR

+

1.45

%

),

4/15/34

.

.........................

United

States

1,500,000

1,392,218

g,n

Consumer

Loan

Underlying

Bond

Certificate

Issuer

Trust

I

,

2019-51,

PT,

144A,

FRN,

16.822%,

1/15/45

................

United

States

201,480

194,541

2019-52,

PT,

144A,

FRN,

16.896%,

1/15/45

................

United

States

226,821

220,179

2019-S8,

PT,

144A,

FRN,

10.479%,

1/15/45

................

United

States

131,922

125,929

2020-2,

PT,

144A,

FRN,

16.314%,

3/15/45

.................

United

States

209,561

202,651

2020-7,

PT,

144A,

FRN,

16.381%,

4/17/45

.................

United

States

121,704

116,011

g,j

Dryden

55

CLO

Ltd.

,

2018-55A

,

D

,

144A,

FRN

,

3.894

%

,

(

3-month

USD

LIBOR

+

2.85

%

),

4/15/31

.

.........................

United

States

300,000

271,738

g,j

Dryden

75

CLO

Ltd.

,

2019-75A

,

AR2

,

144A,

FRN

,

2.084

%

,

(

3-month

USD

LIBOR

+

1.04

%

),

4/15/34

.

.........................

United

States

2,400,000

2,322,059

g,j

Galaxy

XVIII

CLO

Ltd.

,

2018-28A

,

C

,

144A,

FRN

,

2.994

%

,

(

3-month

USD

LIBOR

+

1.95

%

),

7/15/31

.

.........................

United

States

250,000

236,913

g,j

Galaxy

XXVII

CLO

Ltd.

,

2018-27A

,

C

,

144A,

FRN

,

3.211

%

,

(

3-month

USD

LIBOR

+

1.8

%

),

5/16/31

.

..........................

United

States

400,000

377,131

g

Home

Partners

of

America

Trust

,

2021-2,

B,

144A,

2.302%,

12/17/26

......................

United

States

1,246,879

1,123,356

2021-3,

B,

144A,

2.649%,

1/17/41

.......................

United

States

460,707

418,752

g,j

LCM

26

Ltd.

,

26A

,

B

,

144A,

FRN

,

2.463

%

,

(

3-month

USD

LIBOR

+

1.4

%

),

1/20/31

.

.....................................

United

States

250,000

239,343

g,j

LCM

XVII

LP

,

17A,

BRR,

144A,

FRN,

2.644%,

(3-month

USD

LIBOR

+

1.6%),

10/15/31

..........................................

United

States

350,000

328,144

17A,

CRR,

144A,

FRN,

3.144%,

(3-month

USD

LIBOR

+

2.1%),

10/15/31

..........................................

United

States

320,000

305,506

g,j

LCM

XVIII

LP

,

18A

,

DR

,

144A,

FRN

,

3.863

%

,

(

3-month

USD

LIBOR

+

2.8

%

),

4/20/31

.

....................................

United

States

770,000

696,120

g,j

Madison

Park

Euro

Funding

VIII

DAC

,

8A

,

BRN

,

144A,

FRN

,

1.7

%

,

(

3-month

EURIBOR

+

1.7

%

),

4/15/32

.

....................

Ireland

400,000

EUR

395,093

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-24

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Asset-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

g,j

Madison

Park

Funding

LVII

Ltd.

,

2018-1A

,

C

,

144A,

FRN

,

3.144

%

,

(

3-month

USD

LIBOR

+

2.1

%

),

10/15/31

.

..................

United

States

1,408,860

$

1,344,752

g,j

Magnetite

XXIX

Ltd.

,

2021-29A

,

B

,

144A,

FRN

,

2.444

%

,

(

3-month

USD

LIBOR

+

1.4

%

),

1/15/34

.

..........................

United

States

1,500,000

1,415,490

g,j

Northwoods

Capital

Ltd.

,

2018-11BA

,

A1

,

144A,

FRN

,

2.144

%

,

(

3-month

USD

LIBOR

+

1.1

%

),

4/19/31

.

...................

United

States

591,108

582,674

g,j

Octagon

Investment

Partners

28

Ltd.

,

2016-1A

,

BR

,

144A,

FRN

,

2.984

%

,

(

3-month

USD

LIBOR

+

1.8

%

),

10/24/30

.

...........

United

States

250,000

241,034

g,j

Octagon

Investment

Partners

36

Ltd.

,

2018-1A

,

A1

,

144A,

FRN

,

2.014

%

,

(

3-month

USD

LIBOR

+

0.97

%

),

4/15/31

.

...........

United

States

500,000

491,342

g,j

Octagon

Investment

Partners

37

Ltd.

,

2018-2A

,

C

,

144A,

FRN

,

4.034

%

,

(

3-month

USD

LIBOR

+

2.85

%

),

7/25/30

.

...........

United

States

400,000

361,373

g,j

Octagon

Investment

Partners

38

Ltd.

,

2018-1A

,

C

,

144A,

FRN

,

4.013

%

,

(

3-month

USD

LIBOR

+

2.95

%

),

7/20/30

.

...........

United

States

1,000,000

907,970

g,n

Prosper

Pass-Thru

Trust

III

,

2020-PT1,

A,

144A,

FRN,

17.886%,

3/15/26

................

United

States

126,597

126,947

2020-PT2,

A,

144A,

FRN,

16.518%,

4/15/26

................

United

States

142,049

138,125

2020-PT3,

A,

144A,

FRN,

17.031%,

5/15/26

................

United

States

37,685

36,285

g,j

Strata

CLO

I

Ltd.

,

2018-1A

,

B

,

144A,

FRN

,

3.244

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

1/15/31

.

..............................

United

States

1,300,000

1,264,176

g,n

Upgrade

Master

Pass-Thru

Trust

,

2019-PT2

,

A

,

144A,

FRN

,

14.456

%

,

2/15/26

.

...................................

United

States

111,484

112,009

g,j

Voya

CLO

Ltd.

,

2013-2A,

BR,

144A,

FRN,

3.034%,

(3-month

USD

LIBOR

+

1.85%),

4/25/31

.....................................

United

States

780,000

736,520

2014-1A,

CR2,

144A,

FRN,

3.844%,

(3-month

USD

LIBOR

+

2.8%),

4/18/31

......................................

United

States

1,000,000

888,418

23,065,187

a

a

a

a

a

a

Total

Asset-Backed

Securities

(Cost

$26,060,175)

...............................

24,638,429

Commercial

Mortgage-Backed

Securities

0.5%

Diversified

Financial

Services

0.5%

g,j

BX

Commercial

Mortgage

Trust

,

2021-VOLT,

A,

144A,

FRN,

2.024%,

(1-month

USD

LIBOR

+

0.7%),

9/15/36

......................................

United

States

250,000

241,497

2021-VOLT,

B,

144A,

FRN,

2.274%,

(1-month

USD

LIBOR

+

0.95%),

9/15/36

.....................................

United

States

400,000

376,668

2022-LP2,

A,

144A,

FRN,

2.347%,

(1-month

SOFR

+

1.013%),

2/15/39

...........................................

United

States

887,134

853,482

n

Commercial

Mortgage

Trust

,

2006-GG7

,

AJ

,

FRN

,

6.214

%

,

7/10/38

United

States

186,216

149,066

1,620,713

a

a

a

a

a

a

Total

Commercial

Mortgage-Backed

Securities

(Cost

$1,712,949)

.................

1,620,713

Mortgage-Backed

Securities

3.3%

o

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Adjustable

Rate

0.0%

†

FHLMC,

2.348%,

(1-year

CMT

T-Note

+/-

MBS

Margin),

1/01/33

..

United

States

4,649

4,592

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Fixed

Rate

0.9%

FHLMC

Gold

Pools,

30

Year,

5%,

4/01/34

-

8/01/35

............

United

States

81,517

84,318

FHLMC

Gold

Pools,

30

Year,

5.5%,

3/01/33

-

1/01/35

..........

United

States

65,470

68,992

FHLMC

Gold

Pools,

30

Year,

6%,

4/01/33

-

2/01/36

............

United

States

60,427

64,649

FHLMC

Gold

Pools,

30

Year,

6.5%,

11/01/27

-

7/01/32

..........

United

States

7,990

8,483

FHLMC

Gold

Pools,

30

Year,

7%,

4/01/30

...................

United

States

1,016

1,083

FHLMC

Gold

Pools,

30

Year,

7.5%,

8/01/30

..................

United

States

129

139

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-25

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Mortgage-Backed

Securities

(continued)

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Fixed

Rate

(continued)

FHLMC

Pool,

30

Year,

4%,

6/01/52

........................

United

States

2,804,535

$

2,770,584

2,998,248

o

Federal

National

Mortgage

Association

(FNMA)

Adjustable

Rate

0.0%

†

FNMA,

2.279%,

(1-year

CMT

T-Note

+/-

MBS

Margin),

12/01/34

..

United

States

28,729

28,786

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

2.3%

FNMA,

10

Year,

2.5%,

7/01/22

...........................

United

States

11

11

FNMA,

20

Year,

5%,

4/01/30

.............................

United

States

18,695

19,302

FNMA,

30

Year,

3%,

9/01/48

-

9/01/51

......................

United

States

2,075,219

1,948,955

FNMA,

30

Year,

4%,

2/01/49

.............................

United

States

669,020

671,252

FNMA,

30

Year,

4.5%,

5/01/48

...........................

United

States

1,440,432

1,466,140

FNMA,

30

Year,

6.5%,

6/01/28

-

10/01/37

...................

United

States

55,910

60,037

p

FNMA,

Single-family,

30

Year,

3.5%,

7/25/52

.................

United

States

3,300,000

3,174,445

7,340,142

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

0.1%

GNMA

I,

Single-family,

30

Year,

5%,

11/15/33

-

7/15/34

.........

United

States

88,479

93,289

GNMA

I,

Single-family,

30

Year,

7%,

10/15/28

-

2/15/29

.........

United

States

9,998

10,040

GNMA

I,

Single-family,

30

Year,

7.5%,

9/15/30

................

United

States

813

872

GNMA

II,

30

Year,

6.5%,

2/20/34

..........................

United

States

1,767

1,753

GNMA

II,

Single-family,

30

Year,

5%,

9/20/33

-

11/20/33

.........

United

States

24,752

26,332

GNMA

II,

Single-family,

30

Year,

6%,

11/20/34

................

United

States

36,736

40,223

GNMA

II,

Single-family,

30

Year,

6.5%,

4/20/31

-

1/20/33

........

United

States

15,751

16,931

GNMA

II,

Single-family,

30

Year,

7.5%,

1/20/28

-

4/20/32

........

United

States

4,588

4,851

194,291

Total

Mortgage-Backed

Securities

(Cost

$10,698,299)

............................

10,566,059

Municipal

Bonds

0.8%

California

0.1%

San

Bernardino

Community

College

District

,

GO

,

2019

A-1

,

3.271

%

,

8/01/39

...........................................

United

States

210,000

183,573

Illinois

0.2%

State

of

Illinois

,

GO

,

2003

,

5.1

%

,

6/01/33

...................

United

States

695,000

700,069

New

Jersey

0.1%

New

Jersey

Transportation

Trust

Fund

Authority

,

Revenue

,

2019

B

,

Refunding

,

4.131

%

,

6/15/42

............................

United

States

345,000

300,727

New

York

0.2%

Metropolitan

Transportation

Authority

,

Revenue

,

2020

E

,

Refunding

,

4

%

,

11/15/45

.......................................

United

States

535,000

481,509

New

York

State

Dormitory

Authority

,

State

University

of

New

York

Dormitory

Facilities

,

Revenue

,

2019

B

,

Refunding

,

3.142

%

,

7/01/43

...........................................

United

States

305,000

258,280

739,789

Ohio

0.0%

†

State

of

Ohio

,

Cleveland

Clinic

Health

System

Obligated

Group

,

Revenue

,

2019

G

,

Refunding

,

3.276

%

,

1/01/42

.............

United

States

190,000

157,365

Pennsylvania

0.1%

University

of

Pittsburgh-of

the

Commonwealth

System

of

Higher

Education

,

Revenue

,

2017

C

,

Refunding

,

3.005

%

,

9/15/41

.....

United

States

535,000

433,887

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-26

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Texas

0.1%

Texas

State

University

System

,

Revenue

,

2019

B

,

Refunding

,

3.289

%

,

3/15/40

.....................................

United

States

190,000

$

161,305

Total

Municipal

Bonds

(Cost

$2,998,361)

.......................................

2,676,715

Residential

Mortgage-Backed

Securities

6.9%

Diversified

Financial

Services

2.3%

g

BRAVO

Residential

Funding

Trust

,

2019-1,

A1C,

144A,

3.5%,

3/25/58

.......................

United

States

177,298

176,226

n

2019-2,

A3,

144A,

FRN,

3.5%,

10/25/44

...................

United

States

429,587

415,718

g,n

CIM

Trust

,

2019-INV1,

A1,

144A,

FRN,

4%,

2/25/49

..................

United

States

106,423

105,226

2019-INV2,

A3,

144A,

FRN,

4%,

5/25/49

..................

United

States

224,424

220,428

g,n

COLT

Mortgage

Loan

Trust

,

2022-4

,

A1

,

144A,

FRN

,

4.301

%

,

3/25/67

...........................................

United

States

420,644

416,001

g,n

J.P.

Morgan

Mortgage

Trust

,

2021-13,

A4,

144A,

FRN,

2.5%,

4/25/52

...................

United

States

1,427,719

1,306,143

2021-15,

A4,

144A,

FRN,

2.5%,

6/25/52

...................

United

States

447,423

409,011

2021-6,

A4,

144A,

FRN,

2.5%,

10/25/51

...................

United

States

809,882

740,352

g,n

Mill

City

Mortgage

Loan

Trust

,

2018-4

,

A1B

,

144A,

FRN

,

3.495

%

,

4/25/66

...........................................

United

States

743,469

723,170

g,n

OBX

Trust

,

2021-J3

,

A4

,

144A,

FRN

,

2.5

%

,

10/25/51

...........

United

States

295,146

268,505

n

Provident

Funding

Associates

LLP

,

2021-J1

,

A3

,

FRN

,

2.5

%

,

2/20/49

United

States

926,050

842,461

g,n

Provident

Funding

Mortgage

Trust

,

2019-1

,

A2

,

144A,

FRN

,

3

%

,

12/25/49

..........................................

United

States

167,788

151,756

g,n

PSMC

Trust

,

2021-3

,

A3

,

144A,

FRN

,

2.5

%

,

8/25/51

...........

United

States

1,757,286

1,599,419

7,374,416

a

a

a

a

a

a

Thrifts

&

Mortgage

Finance

4.6%

j

FHLMC

Structured

Agency

Credit

Risk

Debt

Notes

,

2013-DN2,

M2,

FRN,

5.874%,

(1-month

USD

LIBOR

+

4.25%),

11/25/23

..........................................

United

States

813,900

819,581

2014-DN2,

M3,

FRN,

5.224%,

(1-month

USD

LIBOR

+

3.6%),

4/25/24

...........................................

United

States

1,084,003

1,094,868

2014-DN3,

M3,

FRN,

5.624%,

(1-month

USD

LIBOR

+

4%),

8/25/24

...........................................

United

States

38,743

39,057

2014-DN4,

M3,

FRN,

6.174%,

(1-month

USD

LIBOR

+

4.55%),

10/25/24

..........................................

United

States

234,746

237,690

2015-DNA1,

M3,

FRN,

4.924%,

(1-month

USD

LIBOR

+

3.3%),

10/25/27

..........................................

United

States

55,182

55,694

2015-DNA3,

M3,

FRN,

6.324%,

(1-month

USD

LIBOR

+

4.7%),

4/25/28

...........................................

United

States

816,386

841,723

2016-DNA2,

M3,

FRN,

6.274%,

(1-month

USD

LIBOR

+

4.65%),

10/25/28

..........................................

United

States

696,201

717,922

j

FNMA

,

2013-C01,

M2,

FRN,

6.874%,

(1-month

USD

LIBOR

+

5.25%),

10/25/23

..........................................

United

States

96,096

98,807

2014-C01,

M2,

FRN,

6.024%,

(1-month

USD

LIBOR

+

4.4%),

1/25/24

...........................................

United

States

167,709

171,609

2014-C02,

1M2,

FRN,

4.224%,

(1-month

USD

LIBOR

+

2.6%),

5/25/24

...........................................

United

States

531,447

529,754

2014-C02,

2M2,

FRN,

4.224%,

(1-month

USD

LIBOR

+

2.6%),

5/25/24

...........................................

United

States

174,746

174,841

2014-C03,

1M2,

FRN,

4.624%,

(1-month

USD

LIBOR

+

3%),

7/25/24

...........................................

United

States

1,054,495

1,051,288

2014-C03,

2M2,

FRN,

4.524%,

(1-month

USD

LIBOR

+

2.9%),

7/25/24

...........................................

United

States

28,405

28,454

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-27

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Residential

Mortgage-Backed

Securities

(continued)

Thrifts

&

Mortgage

Finance

(continued)

j

FNMA,

(continued)

2015-C01,

1M2,

FRN,

5.924%,

(1-month

USD

LIBOR

+

4.3%),

2/25/25

...........................................

United

States

199,868

$

202,121

2015-C02,

1M2,

FRN,

5.624%,

(1-month

USD

LIBOR

+

4%),

5/25/25

...........................................

United

States

521,812

524,977

2015-C03,

1M2,

FRN,

6.624%,

(1-month

USD

LIBOR

+

5%),

7/25/25

...........................................

United

States

743,004

752,426

2016-C01,

1M2,

FRN,

8.374%,

(1-month

USD

LIBOR

+

6.75%),

8/25/28

...........................................

United

States

129,065

135,679

2016-C02,

1M2,

FRN,

7.624%,

(1-month

USD

LIBOR

+

6%),

9/25/28

...........................................

United

States

776,872

807,731

2016-C03,

1M2,

FRN,

6.924%,

(1-month

USD

LIBOR

+

5.3%),

10/25/28

..........................................

United

States

667,410

688,982

2016-C05,

2M2,

FRN,

6.074%,

(1-month

USD

LIBOR

+

4.45%),

1/25/29

...........................................

United

States

672,609

701,252

2016-C06,

1M2,

FRN,

5.874%,

(1-month

USD

LIBOR

+

4.25%),

4/25/29

...........................................

United

States

220,982

228,677

2016-C07,

2M2,

FRN,

5.974%,

(1-month

USD

LIBOR

+

4.35%),

5/25/29

...........................................

United

States

537,944

556,694

2017-C01,

1M2,

FRN,

5.174%,

(1-month

USD

LIBOR

+

3.55%),

7/25/29

...........................................

United

States

986,995

1,008,851

2017-C04,

2M2,

FRN,

4.474%,

(1-month

USD

LIBOR

+

2.85%),

11/25/29

..........................................

United

States

461,054

462,678

j

FNMA

Connecticut

Avenue

Securities

,

2017-C03,

1M2,

FRN,

4.624%,

(1-month

USD

LIBOR

+

3%),

10/25/29

..........................................

United

States

1,754,524

1,771,583

2017-C05,

1M2,

FRN,

3.824%,

(1-month

USD

LIBOR

+

2.2%),

1/25/30

...........................................

United

States

1,201,944

1,208,203

14,911,142

a

a

a

a

a

a

Total

Residential

Mortgage-Backed

Securities

(Cost

$23,836,105)

.................

22,285,558

Shares

a

Escrows

and

Litigation

Trusts

0.0%

†

a,b

K2016470219

South

Africa

Ltd.,

Escrow

Account

..............

South

Africa

72,822

—

a

Mesquite

Energy,

Inc.,

Escrow

Account

.....................

United

States

243,000

3,645

a,b

Millennium

Corporate

Claim

Trust,

Escrow

Account

............

United

States

950,432

—

a,b

Millennium

Lender

Claim

Trust,

Escrow

Account

..............

United

States

950,432

—

Total

Escrows

and

Litigation

Trusts

(Cost

$243,000)

.............................

3,645

Total

Long

Term

Investments

(Cost

$359,970,953)

...............................

315,913,727

a

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-28

Short

Term

Investments

2.1%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

2.1%

d,q

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

....

United

States

6,773,466

$

6,773,466

Total

Money

Market

Funds

(Cost

$6,773,466)

...................................

6,773,466

Total

Short

Term

Investments

(Cost

$6,773,466

)

.................................

6,773,466

a

Total

Investments

(Cost

$366,744,419)

99.6%

...................................

$322,687,193

Other

Assets,

less

Liabilities

0.4%

.............................................

1,378,464

Net

Assets

100.0%

...........................................................

$324,065,657

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

Fair

valued

using

significant

unobservable

inputs.

See

Note

13

regarding

fair

value

measurements.

c

See

Note

10

regarding

restricted

securities.

d

See

Note

3(e)

regarding

investments

in

affiliated

management

investment

companies.

e

Income

may

be

received

in

additional

securities

and/or

cash.

f

Perpetual

security

with

no

stated

maturity

date.

g

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2022,

the

aggregate

value

of

these

securities

was

$135,327,171,

representing

41.8%

of

net

assets.

h

See

Note

7

regarding

credit

risk

and

defaulted

securities.

i

See

Note

1(g)

regarding

senior

floating

rate

interests.

j

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

k

See

Note

1(h)

regarding

Marketplace

Lending.

See

full

breakdown

of

marketplace

loans

holdings

in

the

table

at

the

end

of

this

schedule.

l

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

m

Principal

amount

of

security

is

adjusted

for

inflation.

See

Note

1(j).

n

Adjustable

rate

security

with

an

interest

rate

that

is

not

based

on

a

published

reference

index

and

spread.

The

rate

is

based

on

the

structure

of

the

agreement

and

current

market

conditions.

The

coupon

rate

shown

represents

the

rate

at

period

end.

o

Adjustable

Rate

Mortgage-Backed

Security

(ARM);

the

rate

shown

is

the

effective

rate

at

period

end.

ARM

rates

are

not

based

on

a

published

reference

rate

and

spread,

but

instead

pass-through

weighted

average

interest

income

inclusive

of

any

caps

or

floors,

if

applicable,

from

the

underlying

mortgage

loans

in

which

the

majority

of

mortgages

pay

interest

based

on

the

index

shown

at

their

designated

reset

dates

plus

a

spread,

less

the

applicable

servicing

and

guaranty

fee

(MBS

margin).

p

Security

purchased

on

a

to-be-announced

(TBA)

basis.

See

Note

1(c).

q

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Strategic

Income

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-29

At

June

30,

2022,

the

Fund

had

the

following

marketplace

loans

outstanding.

See

Note

1(e).

Description

Principal

Amount

Value

Marketplace

Loans

-

2.9%

Freedom

Financial

Asset

Management

LLC

APP-10147734.FP.FTS.B,

19.99%,

8/12/23

$

16,000

$

–

APP-11693689.FP.FTS.B,

5.99%,

12/15/23

7,047

7,134

APP-11442537.FP.FTS.B,

5.99%,

12/17/23

5,873

5,947

APP-12212149.FP.FTS.B,

18.99%,

1/22/24

5,069

5,084

APP-11814690.FP.FTS.B,

5.99%,

2/03/24

.

8,019

8,123

APP-12232118.FP.FTS.B,

5.99%,

3/05/24

.

6,905

6,999

APP-11925836.FP.FTS.B,

5.99%,

3/12/24

.

6,324

6,419

APP-12933568.FP.FTS.B,

5.99%,

4/01/24

.

7,149

7,251

APP-14154619.FP.FTS.B,

5.99%,

6/07/24

.

10,572

10,752

APP-14139528.FP.FTS.B,

5.99%,

6/10/24

.

9,717

9,918

APP-14479194.FP.FTS.B,

16.99%,

7/11/24

17,500

17,812

APP-10114471.FP.FTS.B,

13.99%,

8/12/24

8,666

4,650

APP-10844146.FP.FTS.B,

23.99%,

10/18/24

..........................

7,917

7,826

APP-11822354.FP.FTS.B,

9.49%,

12/18/24

18,570

18,789

APP-11766036.FP.FTS.B,

23.74%,

12/18/24

21,840

21,682

APP-11746986.FP.FTS.B,

18.99%,

12/19/24

10,649

10,653

APP-11733551.FP.FTS.B,

9.74%,

12/20/24

13,456

13,629

APP-11765697.FP.FTS.B,

16.99%,

12/24/24

9,439

9,490

APP-12220276.FP.FTS.B,

17.49%,

1/17/25

13,092

13,068

APP-11798383.FP.FTS.B,

19.99%,

2/01/25

9,248

9,230

APP-11693771.FP.FTS.B,

9.74%,

2/06/25

.

16,307

16,540

APP-11765858.FP.FTS.B,

19.49%,

2/06/25

14,851

14,786

APP-11695285.FP.FTS.B,

9.74%,

2/07/25

.

15,073

15,292

APP-11818700.FP.FTS.B,

17.74%,

2/08/25

18,789

18,660

APP-11817363.FP.FTS.B,

25.49%,

2/11/25

9,103

9,037

APP-11948847.FP.FTS.B,

11.74%,

3/08/25

28,305

28,686

APP-12139795.FP.FTS.B,

9.74%,

3/10/25

.

11,989

12,234

APP-14135500.FP.FTS.B,

14.49%,

4/25/25

23,329

23,657

APP-13668983.FP.FTS.B,

7.84%,

5/13/25

.

36,116

36,707

APP-13660633.FP.FTS.B,

25.49%,

5/13/25

9,621

9,670

APP-13704982.FP.FTS.B,

21.99%,

5/25/25

8,706

8,842

APP-14969419.FP.FTS.B,

9.74%,

6/01/25

.

30,500

31,076

APP-14886680.FP.FTS.B,

15.24%,

6/07/25

30,000

30,729

APP-14148125.FP.FTS.B,

9.34%,

6/16/25

.

31,125

31,725

APP-13916851.FP.FTS.B,

9.34%,

6/18/25

.

29,379

29,960

APP-14959147.FP.FTS.B,

17.99%,

7/21/25

15,600

15,856

APP-11657858.FP.FTS.B,

17.49%,

12/16/25

14,527

14,590

APP-11765263.FP.FTS.B,

19.49%,

12/24/25

10,953

11,035

APP-11752447.FP.FTS.B,

9.99%,

2/05/26

.

36,660

37,247

APP-11823715.FP.FTS.B,

14.99%,

2/05/26

18,471

18,722

APP-11795510.FP.FTS.B,

12.49%,

2/11/26

17,461

17,753

APP-11804417.FP.FTS.B,

18.49%,

2/12/26

8,675

8,782

APP-11819292.FP.FTS.B,

18.99%,

2/12/26

12,227

12,379

APP-12232816.FP.FTS.B,

15.99%,

3/09/26

23,315

23,582

APP-12271080.FP.FTS.B,

12.49%,

3/10/26

16,081

16,342

APP-13646258.FP.FTS.B,

22.99%,

5/14/26

14,621

14,746

APP-13608417.FP.FTS.B,

10.34%,

5/20/26

21,548

21,955

APP-13700836.FP.FTS.B,

18.99%,

5/28/26

20,559

20,719

APP-14159522.FP.FTS.B,

10.34%,

6/15/26

22,187

22,626

APP-14167786.FP.FTS.B,

10.34%,

6/16/26

35,700

36,416

APP-14974854.FP.FTS.B,

16.49%,

7/10/26

20,000

20,304

APP-14865971.FP.FTS.B,

8.74%,

7/24/26

.

29,000

29,701

APP-14985540.FP.FTS.B,

16.74%,

7/24/26

50,000

51,173

APP-10854367.FP.FTS.B,

20.49%,

10/17/26

..........................

19,615

2,149

Description

Principal

Amount

Value

Freedom

Financial

Asset

Management

LLC

(continued)

APP-10567981.FP.FTS.B,

9.99%,

10/30/26

$

25,638

$

26,039

APP-10571729.FP.FTS.B,

19.99%,

11/03/26

14,500

–

APP-11124654.FP.FTS.B,

19.49%,

12/18/26

38,436

38,775

APP-11605924.FP.FTS.B,

11.74%,

12/20/26

42,843

43,416

APP-11720742.FP.FTS.B,

18.99%,

12/21/26

22,661

22,699

APP-11757515.FP.FTS.B,

17.49%,

12/24/26

18,963

3,906

APP-11764235.FP.FTS.B,

11.74%,

12/29/26

46,184

46,885

APP-11813151.FP.FTS.B,

20.99%,

12/30/26

11,997

12,027

APP-11822469.FP.FTS.B,

22.49%,

12/30/26

10,510

10,581

APP-12248562.FP.FTS.B,

16.74%,

1/18/27

46,989

47,126

APP-12016647.FP.FTS.B,

16.99%,

1/25/27

18,697

18,795

APP-11764848.FP.FTS.B,

16.49%,

2/05/27

13,539

13,714

APP-11749109.FP.FTS.B,

17.49%,

2/06/27

19,036

19,012

APP-11756687.FP.FTS.B,

19.49%,

2/06/27

17,482

17,356

APP-11803939.FP.FTS.B,

10.99%,

2/10/27

32,866

33,386

APP-11801122.FP.FTS.B,

16.49%,

2/10/27

19,203

9,906

APP-11806622.FP.FTS.B,

18.99%,

2/11/27

9,539

9,599

APP-11798689.FP.FTS.B,

16.99%,

2/12/27

18,732

19,011

APP-12238134.FP.FTS.B,

20.24%,

3/03/27

25,521

25,375

APP-12140585.FP.FTS.B,

11.24%,

3/12/27

28,615

29,085

APP-12106231.FP.FTS.B,

11.74%,

3/13/27

41,065

41,814

APP-12119709.FP.FTS.B,

18.24%,

3/13/27

33,215

33,430

APP-12249339.FP.FTS.B,

19.49%,

3/13/27

19,354

19,457

APP-11878312.FP.FTS.B,

10.99%,

3/14/27

20,104

20,445

APP-12139734.FP.FTS.B,

13.49%,

3/14/27

15,230

15,510

APP-13678387.FP.FTS.B,

13.84%,

4/03/27

14,591

14,755

APP-13662336.FP.FTS.B,

26.49%,

4/03/27

7,500

2,764

APP-13561151.FP.FTS.B,

16.74%,

4/12/27

36,281

18,640

APP-13705025.FP.FTS.B,

10.84%,

5/14/27

29,249

29,741

APP-13695562.FP.FTS.B,

20.49%,

5/14/27

19,622

19,785

APP-13696381.FP.FTS.B,

26.49%,

5/14/27

8,859

8,926

APP-13684451.FP.FTS.B,

17.24%,

5/15/27

48,982

49,763

APP-13199139.FP.FTS.B,

11.74%,

5/20/27

42,779

43,583

APP-13685540.FP.FTS.B,

13.59%,

5/20/27

36,080

36,748

APP-13701830.FP.FTS.B,

20.24%,

5/21/27

29,547

29,916

APP-13668745.FP.FTS.B,

23.99%,

5/23/27

15,331

15,537

APP-13628442.FP.FTS.B,

17.99%,

5/24/27

17,034

17,325

APP-13699606.FP.FTS.B,

20.49%,

5/26/27

6,118

6,131

APP-13694837.FP.FTS.B,

14.34%,

5/27/27

45,195

46,165

APP-14967059.FP.FTS.B,

11.99%,

6/01/27

16,500

16,744

APP-14831064.FP.FTS.B,

11.74%,

6/04/27

40,000

40,633

APP-14058204.FP.FTS.B,

11.59%,

6/05/27

13,271

13,492

APP-14861817.FP.FTS.B,

11.99%,

6/05/27

20,000

20,314

APP-14057383.FP.FTS.B,

11.34%,

6/15/27

35,782

36,491

APP-14167090.FP.FTS.B,

11.34%,

6/15/27

39,720

40,511

APP-14120872.FP.FTS.B,

13.59%,

6/15/27

19,911

20,309

APP-14165501.FP.FTS.B,

13.34%,

6/16/27

13,289

13,557

APP-13060373.FP.FTS.B,

11.34%,

6/19/27

22,619

23,096

APP-14163864.FP.FTS.B,

11.34%,

6/19/27

39,683

40,520

APP-14162827.FP.FTS.B,

15.49%,

6/19/27

17,413

17,785

APP-14867762.FP.FTS.B,

14.24%,

7/10/27

16,700

17,055

APP-14981611.FP.FTS.B,

16.49%,

7/10/27

11,000

11,190

APP-14837945.FP.FTS.B,

18.49%,

7/10/27

25,000

25,353

APP-14926519.FP.FTS.B,

9.74%,

7/11/27

.

35,000

35,630

APP-14970727.FP.FTS.B,

9.74%,

7/13/27

.

29,201

29,741

APP-14975701.FP.FTS.B,

11.74%,

7/15/27

20,000

20,386

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-30

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Freedom

Financial

Asset

Management

LLC

(continued)

APP-14892088.FP.FTS.B,

14.49%,

7/15/27

$

10,500

$

10,707

APP-14975198.FP.FTS.B,

9.24%,

7/16/27

.

30,255

30,837

APP-14939586.FP.FTS.B,

14.24%,

7/22/27

15,917

16,330

APP-14791332.FP.FTS.B,

17.74%,

7/22/27

30,000

30,598

APP-14959631.FP.FTS.B,

17.74%,

7/22/27

50,000

51,123

APP-14178116.FP.FTS.B,

17.74%,

7/23/27

49,817

50,801

2,438,465

LendingClub

Corp.

-

LCX

159222008.LC.FTS.B,

14.3%,

9/26/22

...

804

813

159930422.LC.FTS.B,

16.12%,

11/14/22

..

3,117

304

161884359.LC.FTS.B,

16.12%,

11/14/22

..

1,177

1,171

162701954.LC.FTS.B,

10.33%,

12/03/22

..

720

713

163168705.LC.FTS.B,

17.74%,

12/13/22

..

15,022

2,812

165475303.LC.FTS.B,

8.19%,

1/24/23

...

1,135

1,127

165393871.LC.FTS.B,

11.02%,

1/24/23

...

3,536

3,501

165581669.LC.FTS.B,

7.56%,

1/27/23

...

3,131

3,048

165690410.LC.FTS.B,

15.24%,

1/28/23

...

1,158

1,151

165696133.LC.FTS.B,

17.74%,

1/28/23

...

2,750

2,692

166043155.LC.FTS.B,

14.3%,

2/03/23

...

1,276

1,255

166275848.LC.FTS.B,

14.3%,

2/07/23

...

7,813

7,702

166294895.LC.FTS.B,

20.55%,

2/10/23

...

1,683

1,657

166308005.LC.FTS.B,

20.55%,

2/10/23

...

2,236

2,191

166918483.LC.FTS.B,

15.24%,

2/18/23

...

4,348

4,110

166957411.LC.FTS.B,

15.24%,

2/19/23

...

430

405

166662631.LC.FTS.B,

20.55%,

2/21/23

...

1,666

1,664

167087907.LC.FTS.B,

18.62%,

2/28/23

...

5,837

5,780

167225770.LC.FTS.B,

25.65%,

2/28/23

...

1,460

1,459

167497337.LC.FTS.B,

10.33%,

3/03/23

...

5,332

4,207

167701933.LC.FTS.B,

10.33%,

3/03/23

...

3,635

3,559

168221172.LC.FTS.B,

8.81%,

3/12/23

....

2,344

2,266

158759739.LC.FTS.B,

16.12%,

9/17/24

...

13,048

12,538

161777786.LC.FTS.B,

8.19%,

11/21/24

...

15,027

12,267

165633933.LC.FTS.B,

11.02%,

1/28/25

...

11,690

11,124

165313131.LC.FTS.B,

11.02%,

2/03/25

...

19,164

18,193

166049294.LC.FTS.B,

14.3%,

2/03/25

...

7,197

6,843

165199936.LC.FTS.B,

18.62%,

2/03/25

...

20,928

19,706

165954765.LC.FTS.B,

20.55%,

2/03/25

...

8,493

8,076

166979816.LC.FTS.B,

15.24%,

2/24/25

...

9,573

9,070

167431383.LC.FTS.B,

13.08%,

2/27/25

...

1,172

1,135

167106425.LC.FTS.B,

18.62%,

2/28/25

...

5,871

5,605

158,144

LendingClub

Corp.

-

LCX

PM

171026131.LC.FTS.B,

14.02%,

10/08/23

..

10,918

10,609

171023265.LC.FTS.B,

17.3%,

10/08/23

...

2,893

2,774

171077226.LC.FTS.B,

10.19%,

10/13/23

..

1,197

1,139

172927033.LC.FTS.B,

10.81%,

12/24/23

..

4,322

4,200

173276655.LC.FTS.B,

18.24%,

12/24/23

..

2,837

2,762

174324177.LC.FTS.B,

14.99%,

2/03/24

...

3,050

2,994

173602157.LC.FTS.B,

16.99%,

2/03/24

...

4,937

4,838

170715926.LC.FTS.B,

16.08%,

10/13/25

..

11,258

10,908

170676409.LC.FTS.B,

17.3%,

10/13/25

...

9,076

8,678

171176757.LC.FTS.B,

18.24%,

10/13/25

..

7,696

7,382

174285582.LC.FTS.B,

15.99%,

2/03/26

...

16,110

15,253

174350163.LC.FTS.B,

18.44%,

2/03/26

...

10,700

10,442

174329530.LC.FTS.B,

20.49%,

2/03/26

...

8,234

8,015

89,994

Description

Principal

Amount

Value

Prosper

Funding

LLC

1611508.PS.FTS.B,

15.4%,

8/20/24

.....

$

3,833

$

3,688

1612567.PS.FTS.B,

24.6%,

8/23/24

.....

1,627

1,385

1620408.PS.FTS.B,

12.5%,

8/24/24

.....

26,436

25,619

1623671.PS.FTS.B,

25.71%,

9/21/24

....

8,159

7,909

1628458.PS.FTS.B,

18.5%,

9/22/24

.....

3,993

3,859

1627820.PS.FTS.B,

12.15%,

9/28/24

....

4,038

3,921

1627811.PS.FTS.B,

13.05%,

9/28/24

....

16,195

15,726

1638201.PS.FTS.B,

13.3%,

9/28/24

.....

8,103

7,869

1631458.PS.FTS.B,

14.19%,

9/28/24

....

1,948

1,927

1638657.PS.FTS.B,

16.1%,

9/28/24

.....

1,634

1,576

1628909.PS.FTS.B,

17.96%,

9/29/24

....

6,157

6,042

1639785.PS.FTS.B,

13.1%,

9/30/24

.....

8,098

7,815

1629401.PS.FTS.B,

13.5%,

9/30/24

.....

4,914

4,751

1647438.PS.FTS.B,

19.71%,

10/13/24

...

17,863

2,483

1657122.PS.FTS.B,

10.8%,

10/29/24

....

5,808

5,706

1656696.PS.FTS.B,

11.7%,

10/29/24

....

10,811

10,629

1645598.PS.FTS.B,

16.2%,

10/31/24

....

6,472

6,265

1651234.PS.FTS.B,

13.7%,

11/01/24

....

3,235

3,094

1654279.PS.FTS.B,

12.4%,

11/05/24

....

7,498

7,256

1661070.PS.FTS.B,

13.36%,

11/05/24

....

3,340

3,232

1660959.PS.FTS.B,

14%,

11/05/24

......

1,115

1,077

1660953.PS.FTS.B,

14.09%,

11/05/24

....

12,550

12,015

1650965.PS.FTS.B,

18.41%,

11/05/24

....

8,345

7,988

1653314.PS.FTS.B,

13.2%,

11/09/24

....

2,504

2,426

1666848.PS.FTS.B,

10.8%,

11/10/24

....

7,034

6,870

1650962.PS.FTS.B,

13.81%,

11/29/24

....

8,683

8,531

1686771.PS.FTS.B,

12%,

12/16/24

......

5,571

5,417

1679839.PS.FTS.B,

12.76%,

12/16/24

...

3,635

3,548

1680232.PS.FTS.B,

15.5%,

12/16/24

....

17,269

16,635

1674092.PS.FTS.B,

16.2%,

12/16/24

....

6,238

5,998

1687101.PS.FTS.B,

17.28%,

12/16/24

...

21,668

20,833

1679833.PS.FTS.B,

17.54%,

12/16/24

...

6,937

6,670

1686723.PS.FTS.B,

18.4%,

12/16/24

....

1,735

1,668

1673696.PS.FTS.B,

24.3%,

12/16/24

....

6,152

5,914

1688400.PS.FTS.B,

15.4%,

12/20/24

....

1,727

1,666

1681375.PS.FTS.B,

16.02%,

12/20/24

...

1,729

1,666

1690251.PS.FTS.B,

13.66%,

12/22/24

...

7,741

7,539

1677551.PS.FTS.B,

18.09%,

12/22/24

...

1,736

1,675

1694566.PS.FTS.B,

10.67%,

1/13/25

....

9,078

9,036

1701345.PS.FTS.B,

11.4%,

1/13/25

.....

9,059

4,758

1695034.PS.FTS.B,

14.89%,

1/13/25

....

4,429

4,272

1701777.PS.FTS.B,

15.1%,

1/13/25

.....

6,202

5,984

1701351.PS.FTS.B,

16.1%,

1/13/25

.....

1,775

1,712

1694578.PS.FTS.B,

19.83%,

1/13/25

....

4,019

3,876

1702155.PS.FTS.B,

15.21%,

1/14/25

....

4,431

4,276

1688540.PS.FTS.B,

12.3%,

1/20/25

.....

8,821

8,593

1705446.PS.FTS.B,

21.69%,

1/20/25

....

1,792

1,727

1688531.PS.FTS.B,

16.02%,

1/26/25

....

12,506

12,048

1689941.PS.FTS.B,

19.2%,

1/28/25

.....

13,823

13,322

1692122.PS.FTS.B,

13%,

2/01/25

.......

28,101

27,499

1714693.PS.FTS.B,

12.4%,

2/15/25

.....

10,415

10,182

1721022.PS.FTS.B,

14.39%,

2/15/25

....

3,371

780

1721001.PS.FTS.B,

18.6%,

2/15/25

.....

8,228

7,934

1714705.PS.FTS.B,

18.8%,

2/15/25

.....

7,308

7,080

1720980.PS.FTS.B,

19.56%,

2/15/25

....

5,944

5,731

1721616.PS.FTS.B,

19.83%,

2/15/25

....

7,318

7,089

1708034.PS.FTS.B,

20.01%,

2/15/25

....

4,575

4,411

1721031.PS.FTS.B,

20.4%,

2/15/25

.....

1,831

1,765

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-31

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Prosper

Funding

LLC

(continued)

1722672.PS.FTS.B,

10.5%,

2/16/25

.....

$

5,419

$

5,300

1722483.PS.FTS.B,

15.4%,

2/16/25

.....

18,188

17,632

1722186.PS.FTS.B,

24.4%,

2/16/25

.....

7,820

7,527

1724151.PS.FTS.B,

14.41%,

2/22/25

....

3,633

3,558

1718530.PS.FTS.B,

24.4%,

2/22/25

.....

3,680

3,556

1721323.PS.FTS.B,

16.4%,

2/24/25

.....

6,375

6,199

1710260.PS.FTS.B,

22.6%,

2/28/25

.....

1,862

1,800

1749430.PS.FTS.B,

23.59%,

4/05/25

....

7,688

7,485

1743116.PS.FTS.B,

12.4%,

4/06/25

.....

4,768

4,690

1750207.PS.FTS.B,

24.4%,

4/06/25

.....

2,884

2,786

1744403.PS.FTS.B,

13.9%,

4/07/25

.....

8,115

7,924

1754061.PS.FTS.B,

16%,

4/07/25

.......

6,693

6,535

1754544.PS.FTS.B,

16.1%,

4/08/25

.....

9,562

9,340

1752367.PS.FTS.B,

18.09%,

4/11/25

....

2,871

2,792

1752829.PS.FTS.B,

18.09%,

4/11/25

....

1,915

1,862

1754218.PS.FTS.B,

22.6%,

4/12/25

.....

1,921

1,879

1750364.PS.FTS.B,

18.5%,

4/15/25

.....

9,578

9,381

1759842.PS.FTS.B,

22.9%,

4/15/25

.....

4,323

4,201

1606280.PS.FTS.B,

14.7%,

7/17/25

.....

1,628

987

1605968.PS.FTS.B,

14.29%,

8/17/26

....

6,589

6,292

1605953.PS.FTS.B,

14.7%,

8/17/26

.....

21,991

21,001

1605959.PS.FTS.B,

18.73%,

8/17/26

....

17,813

17,006

1618044.PS.FTS.B,

15.1%,

8/19/26

.....

9,266

8,897

1611667.PS.FTS.B,

12.6%,

8/20/26

.....

5,679

5,492

1608710.PS.FTS.B,

15.5%,

8/23/26

.....

5,307

5,083

1620345.PS.FTS.B,

13.2%,

8/24/26

.....

10,067

9,745

1620426.PS.FTS.B,

20%,

8/24/26

.......

18,773

17,950

1610432.PS.FTS.B,

14.03%,

8/25/26

....

5,705

5,524

1622637.PS.FTS.B,

12.7%,

8/27/26

.....

6,117

5,926

1622940.PS.FTS.B,

13.7%,

8/30/26

.....

10,675

10,289

1624202.PS.FTS.B,

11.79%,

9/21/26

....

16,805

16,277

1625048.PS.FTS.B,

16.18%,

9/22/26

....

6,357

6,272

1632445.PS.FTS.B,

15.18%,

9/29/26

....

13,492

13,270

1644830.PS.FTS.B,

10.5%,

10/26/26

....

3,807

3,777

1648285.PS.FTS.B,

12.62%,

10/26/26

...

7,200

6,993

1644821.PS.FTS.B,

16.18%,

10/26/26

...

12,715

12,207

1644836.PS.FTS.B,

18.5%,

10/26/26

....

5,936

5,675

1648942.PS.FTS.B,

11.89%,

10/27/26

....

5,838

5,672

1645184.PS.FTS.B,

16.9%,

10/27/26

....

1,389

1,356

1645643.PS.FTS.B,

18.5%,

10/27/26

....

10,046

9,608

1645601.PS.FTS.B,

26.13%,

10/27/26

...

4,643

4,480

1646399.PS.FTS.B,

10.5%,

10/28/26

....

9,990

9,708

1655937.PS.FTS.B,

12%,

10/28/26

......

18,228

17,517

1657248.PS.FTS.B,

10.5%,

10/29/26

....

22,704

22,281

1646459.PS.FTS.B,

11.89%,

10/29/26

....

9,112

8,952

1646507.PS.FTS.B,

16%,

10/29/26

......

14,713

14,349

1654273.PS.FTS.B,

11.4%,

11/05/26

.....

13,651

13,222

1661067.PS.FTS.B,

12.3%,

11/05/26

....

9,120

8,833

1660821.PS.FTS.B,

12.5%,

11/05/26

....

13,686

13,255

1654288.PS.FTS.B,

15.29%,

11/05/26

....

9,074

8,664

1661382.PS.FTS.B,

16.7%,

11/05/26

....

4,605

4,357

1660956.PS.FTS.B,

18.25%,

11/05/26

....

6,467

6,117

1654507.PS.FTS.B,

18.6%,

11/05/26

....

10,171

9,611

1651610.PS.FTS.B,

10.8%,

11/08/26

....

9,542

9,249

1664763.PS.FTS.B,

13.8%,

11/08/26

....

4,599

4,409

1666497.PS.FTS.B,

13.8%,

11/09/26

....

13,727

13,127

1666914.PS.FTS.B,

11.89%,

11/10/26

....

9,111

8,835

1647191.PS.FTS.B,

16.32%,

11/12/26

....

11,205

10,822

Description

Principal

Amount

Value

Prosper

Funding

LLC

(continued)

1660294.PS.FTS.B,

15.2%,

11/15/26

....

$

11,041

$

10,592

1664083.PS.FTS.B,

11.6%,

11/17/26

.....

7,284

7,075

1679851.PS.FTS.B,

10.9%,

12/16/26

....

16,604

16,163

1673693.PS.FTS.B,

12.5%,

12/16/26

....

14,927

14,534

1686732.PS.FTS.B,

12.62%,

12/16/26

...

4,628

4,505

1686756.PS.FTS.B,

20.08%,

12/16/26

...

7,038

6,708

1673687.PS.FTS.B,

25.6%,

12/16/26

....

9,467

9,062

1674302.PS.FTS.B,

18.33%,

12/17/26

...

21,518

20,524

1674281.PS.FTS.B,

21%,

12/17/26

......

2,850

2,410

1675325.PS.FTS.B,

14%,

12/20/26

......

18,516

17,827

1695804.PS.FTS.B,

10.8%,

1/04/27

.....

4,677

4,552

1694569.PS.FTS.B,

10.5%,

1/13/27

.....

6,544

6,383

1701348.PS.FTS.B,

11.1%,

1/13/27

.....

4,679

4,564

1688537.PS.FTS.B,

13.7%,

1/13/27

.....

9,867

9,511

1702140.PS.FTS.B,

11.55%,

1/14/27

....

14,047

13,705

1701774.PS.FTS.B,

19.3%,

1/16/27

.....

7,594

7,282

1703079.PS.FTS.B,

10.5%,

1/18/27

.....

12,994

12,690

1689971.PS.FTS.B,

11.6%,

1/18/27

.....

7,492

7,317

1691666.PS.FTS.B,

11.88%,

1/19/27

....

7,496

7,322

1705047.PS.FTS.B,

17.54%,

1/19/27

....

14,179

13,582

1704972.PS.FTS.B,

24.18%,

1/19/27

....

6,677

6,414

1692578.PS.FTS.B,

13.1%,

1/20/27

.....

3,745

3,659

1699192.PS.FTS.B,

14.6%,

1/20/27

.....

32,484

31,389

1694423.PS.FTS.B,

15%,

1/24/27

.......

14,125

13,667

1700734.PS.FTS.B,

16.2%,

1/24/27

.....

23,584

22,818

1702129.PS.FTS.B,

12.7%,

1/25/27

.....

6,568

6,424

1709019.PS.FTS.B,

19%,

1/25/27

.......

11,367

10,922

1702634.PS.FTS.B,

21.95%,

2/04/27

....

13,450

12,839

1721025.PS.FTS.B,

10.53%,

2/15/27

....

1,896

1,856

1720992.PS.FTS.B,

10.9%,

2/15/27

.....

3,453

425

1714696.PS.FTS.B,

12.6%,

2/15/27

.....

9,504

9,305

1708016.PS.FTS.B,

12.62%,

2/15/27

....

19,009

18,610

1720968.PS.FTS.B,

12.62%,

2/15/27

....

19,009

18,610

1714699.PS.FTS.B,

16.1%,

2/15/27

.....

9,545

9,246

1715326.PS.FTS.B,

16.83%,

2/15/27

....

15,763

15,137

1709231.PS.FTS.B,

13.7%,

2/16/27

.....

13,800

13,375

1716949.PS.FTS.B,

11.77%,

2/17/27

....

14,241

13,949

1711397.PS.FTS.B,

18.15%,

2/22/27

....

17,222

16,721

1709558.PS.FTS.B,

13.4%,

2/28/27

.....

17,418

16,972

1752507.PS.FTS.B,

25.9%,

4/05/27

.....

7,375

7,184

1743635.PS.FTS.B,

13.1%,

4/06/27

.....

12,388

12,216

1753407.PS.FTS.B,

14.79%,

4/06/27

....

3,420

3,341

1753401.PS.FTS.B,

16.9%,

4/06/27

.....

14,873

14,538

1750201.PS.FTS.B,

19.9%,

4/06/27

.....

9,802

9,580

1750603.PS.FTS.B,

14.29%,

4/07/27

....

4,885

4,808

1753794.PS.FTS.B,

15.1%,

4/07/27

.....

7,819

7,697

1751788.PS.FTS.B,

15.7%,

4/08/27

.....

9,778

9,628

1759809.PS.FTS.B,

12.5%,

4/15/27

.....

30,737

30,337

1,416,472

Upgrade,

Inc.

-

Card

992398221.UG.FTS.B,

19.3%,

4/03/24

...

133

135

992368489.UG.FTS.B,

21.48%,

4/03/24

..

410

48

992447830.UG.FTS.B,

22.45%,

4/03/24

..

262

265

992438577.UG.FTS.B,

25.45%,

4/03/24

..

244

246

992259659.UG.FTS.B,

28.48%,

4/03/24

..

375

371

992341725.UG.FTS.B,

28.48%,

4/03/24

..

73

73

992357631.UG.FTS.B,

28.48%,

4/03/24

..

29

30

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-32

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

992460241.UG.FTS.B,

28.48%,

4/03/24

..

$

6

$

5

992259305.UG.FTS.B,

29.49%,

4/03/24

..

16

15

992275723.UG.FTS.B,

29.49%,

4/03/24

..

84

84

992458720.UG.FTS.B,

29.49%,

4/03/24

..

52

52

992462237.UG.FTS.B,

29.49%,

4/03/24

..

15

2

992463567.UG.FTS.B,

21.48%,

4/04/24

..

15

15

992458808.UG.FTS.B,

28.48%,

4/04/24

..

75

10

992264301.UG.FTS.B,

29.49%,

4/04/24

..

316

318

992282840.UG.FTS.B,

29.49%,

4/04/24

..

760

768

992378488.UG.FTS.B,

29.49%,

4/04/24

..

158

160

992459954.UG.FTS.B,

29.49%,

4/04/24

..

142

143

992285365.UG.FTS.B,

17.49%,

4/05/24

..

373

382

992382605.UG.FTS.B,

18.47%,

4/05/24

..

12

12

992240347.UG.FTS.B,

18.71%,

4/05/24

..

125

128

992241984.UG.FTS.B,

18.71%,

4/05/24

..

289

295

992330988.UG.FTS.B,

18.71%,

4/05/24

..

249

255

992239693.UG.FTS.B,

19.3%,

4/05/24

...

636

647

992324126.UG.FTS.B,

19.3%,

4/05/24

...

164

166

992378711.UG.FTS.B,

19.3%,

4/05/24

...

746

761

992384003.UG.FTS.B,

19.3%,

4/05/24

...

183

187

992416939.UG.FTS.B,

19.3%,

4/05/24

...

10

10

992356255.UG.FTS.B,

19.96%,

4/05/24

..

20

20

992333048.UG.FTS.B,

19.99%,

4/05/24

..

148

149

992246266.UG.FTS.B,

20.47%,

4/05/24

..

236

240

992286774.UG.FTS.B,

20.47%,

4/05/24

..

303

309

992311979.UG.FTS.B,

20.47%,

4/05/24

..

208

24

992418214.UG.FTS.B,

20.47%,

4/05/24

..

876

890

992419308.UG.FTS.B,

20.47%,

4/05/24

..

53

55

992455931.UG.FTS.B,

20.47%,

4/05/24

..

200

23

992239776.UG.FTS.B,

20.96%,

4/05/24

..

313

319

992246125.UG.FTS.B,

20.96%,

4/05/24

..

246

251

992350092.UG.FTS.B,

20.96%,

4/05/24

..

93

95

992244483.UG.FTS.B,

21.48%,

4/05/24

..

267

272

992266844.UG.FTS.B,

21.48%,

4/05/24

..

117

119

992396295.UG.FTS.B,

21.48%,

4/05/24

..

6

6

992416498.UG.FTS.B,

21.48%,

4/05/24

..

931

944

992448678.UG.FTS.B,

22.47%,

4/05/24

..

30

30

992248889.UG.FTS.B,

23.45%,

4/05/24

..

16

16

992264334.UG.FTS.B,

23.45%,

4/05/24

..

10

10

992328296.UG.FTS.B,

23.45%,

4/05/24

..

102

104

992363381.UG.FTS.B,

24.45%,

4/05/24

..

304

309

992256931.UG.FTS.B,

25.44%,

4/05/24

..

246

177

992273417.UG.FTS.B,

25.44%,

4/05/24

..

76

78

992458005.UG.FTS.B,

25.44%,

4/05/24

..

94

20

992300539.UG.FTS.B,

25.45%,

4/05/24

..

58

59

992238142.UG.FTS.B,

28.48%,

4/05/24

..

1,420

1,443

992274561.UG.FTS.B,

28.48%,

4/05/24

..

119

119

992284254.UG.FTS.B,

28.48%,

4/05/24

..

189

192

992296532.UG.FTS.B,

28.48%,

4/05/24

..

210

210

992315245.UG.FTS.B,

28.48%,

4/05/24

..

86

87

992334224.UG.FTS.B,

28.48%,

4/05/24

..

86

87

992347446.UG.FTS.B,

28.48%,

4/05/24

..

941

955

992379401.UG.FTS.B,

28.48%,

4/05/24

..

165

167

992383240.UG.FTS.B,

28.48%,

4/05/24

..

47

48

992395391.UG.FTS.B,

28.48%,

4/05/24

..

127

127

992401140.UG.FTS.B,

28.48%,

4/05/24

..

217

220

992443753.UG.FTS.B,

28.48%,

4/05/24

..

147

148

992255341.UG.FTS.B,

28.98%,

4/05/24

..

386

386

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

992349368.UG.FTS.B,

29.46%,

4/05/24

..

$

53

$

54

992273722.UG.FTS.B,

29.47%,

4/05/24

..

278

282

992248833.UG.FTS.B,

29.48%,

4/05/24

..

96

97

992256649.UG.FTS.B,

29.48%,

4/05/24

..

171

173

992267090.UG.FTS.B,

29.48%,

4/05/24

..

121

123

992275640.UG.FTS.B,

29.48%,

4/05/24

..

196

197

992279719.UG.FTS.B,

29.48%,

4/05/24

..

210

209

992308582.UG.FTS.B,

29.48%,

4/05/24

..

38

38

992308882.UG.FTS.B,

29.48%,

4/05/24

..

31

31

992324240.UG.FTS.B,

29.48%,

4/05/24

..

178

181

992347467.UG.FTS.B,

29.48%,

4/05/24

..

282

286

992411090.UG.FTS.B,

29.48%,

4/05/24

..

40

40

992437350.UG.FTS.B,

29.48%,

4/05/24

..

27

28

992236179.UG.FTS.B,

29.49%,

4/05/24

..

28

28

992239914.UG.FTS.B,

29.49%,

4/05/24

..

66

66

992243934.UG.FTS.B,

29.49%,

4/05/24

..

56

57

992244373.UG.FTS.B,

29.49%,

4/05/24

..

117

118

992245341.UG.FTS.B,

29.49%,

4/05/24

..

282

281

992246075.UG.FTS.B,

29.49%,

4/05/24

..

152

154

992246820.UG.FTS.B,

29.49%,

4/05/24

..

287

285

992247689.UG.FTS.B,

29.49%,

4/05/24

..

1,782

1,796

992250596.UG.FTS.B,

29.49%,

4/05/24

..

68

68

992259922.UG.FTS.B,

29.49%,

4/05/24

..

6

6

992262726.UG.FTS.B,

29.49%,

4/05/24

..

310

313

992262764.UG.FTS.B,

29.49%,

4/05/24

..

42

42

992266574.UG.FTS.B,

29.49%,

4/05/24

..

61

61

992266986.UG.FTS.B,

29.49%,

4/05/24

..

105

7

992267527.UG.FTS.B,

29.49%,

4/05/24

..

383

49

992267548.UG.FTS.B,

29.49%,

4/05/24

..

55

56

992267982.UG.FTS.B,

29.49%,

4/05/24

..

368

371

992271382.UG.FTS.B,

29.49%,

4/05/24

..

167

168

992273344.UG.FTS.B,

29.49%,

4/05/24

..

69

69

992273433.UG.FTS.B,

29.49%,

4/05/24

..

67

68

992275694.UG.FTS.B,

29.49%,

4/05/24

..

159

21

992277911.UG.FTS.B,

29.49%,

4/05/24

..

122

123

992280274.UG.FTS.B,

29.49%,

4/05/24

..

192

191

992281654.UG.FTS.B,

29.49%,

4/05/24

..

27

27

992283053.UG.FTS.B,

29.49%,

4/05/24

..

128

129

992283646.UG.FTS.B,

29.49%,

4/05/24

..

215

158

992284455.UG.FTS.B,

29.49%,

4/05/24

..

1,792

1,816

992284613.UG.FTS.B,

29.49%,

4/05/24

..

116

117

992287261.UG.FTS.B,

29.49%,

4/05/24

..

47

47

992287722.UG.FTS.B,

29.49%,

4/05/24

..

162

165

992289386.UG.FTS.B,

29.49%,

4/05/24

..

22

22

992289546.UG.FTS.B,

29.49%,

4/05/24

..

43

43

992289947.UG.FTS.B,

29.49%,

4/05/24

..

161

161

992296652.UG.FTS.B,

29.49%,

4/05/24

..

37

37

992296902.UG.FTS.B,

29.49%,

4/05/24

..

12

12

992296969.UG.FTS.B,

29.49%,

4/05/24

..

76

76

992297108.UG.FTS.B,

29.49%,

4/05/24

..

94

95

992298055.UG.FTS.B,

29.49%,

4/05/24

..

159

161

992298682.UG.FTS.B,

29.49%,

4/05/24

..

297

300

992302092.UG.FTS.B,

29.49%,

4/05/24

..

156

158

992307882.UG.FTS.B,

29.49%,

4/05/24

..

150

151

992309362.UG.FTS.B,

29.49%,

4/05/24

..

188

190

992309531.UG.FTS.B,

29.49%,

4/05/24

..

97

98

992310025.UG.FTS.B,

29.49%,

4/05/24

..

305

307

992318715.UG.FTS.B,

29.49%,

4/05/24

..

73

74

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-33

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

992323342.UG.FTS.B,

29.49%,

4/05/24

..

$

70

$

70

992323446.UG.FTS.B,

29.49%,

4/05/24

..

191

191

992324210.UG.FTS.B,

29.49%,

4/05/24

..

86

87

992328175.UG.FTS.B,

29.49%,

4/05/24

..

65

65

992328853.UG.FTS.B,

29.49%,

4/05/24

..

144

145

992329601.UG.FTS.B,

29.49%,

4/05/24

..

243

247

992329603.UG.FTS.B,

29.49%,

4/05/24

..

10

10

992333933.UG.FTS.B,

29.49%,

4/05/24

..

226

229

992336975.UG.FTS.B,

29.49%,

4/05/24

..

183

184

992344980.UG.FTS.B,

29.49%,

4/05/24

..

91

92

992345689.UG.FTS.B,

29.49%,

4/05/24

..

146

145

992345838.UG.FTS.B,

29.49%,

4/05/24

..

184

186

992348729.UG.FTS.B,

29.49%,

4/05/24

..

74

75

992350277.UG.FTS.B,

29.49%,

4/05/24

..

188

191

992356231.UG.FTS.B,

29.49%,

4/05/24

..

153

154

992364426.UG.FTS.B,

29.49%,

4/05/24

..

64

65

992365430.UG.FTS.B,

29.49%,

4/05/24

..

81

82

992366150.UG.FTS.B,

29.49%,

4/05/24

..

249

253

992379815.UG.FTS.B,

29.49%,

4/05/24

..

105

106

992380190.UG.FTS.B,

29.49%,

4/05/24

..

34

33

992382545.UG.FTS.B,

29.49%,

4/05/24

..

37

37

992383878.UG.FTS.B,

29.49%,

4/05/24

..

15

15

992395507.UG.FTS.B,

29.49%,

4/05/24

..

111

110

992402117.UG.FTS.B,

29.49%,

4/05/24

..

214

215

992405301.UG.FTS.B,

29.49%,

4/05/24

..

61

61

992411027.UG.FTS.B,

29.49%,

4/05/24

..

16

15

992412416.UG.FTS.B,

29.49%,

4/05/24

..

641

637

992414707.UG.FTS.B,

29.49%,

4/05/24

..

248

248

992419454.UG.FTS.B,

29.49%,

4/05/24

..

56

56

992428512.UG.FTS.B,

29.49%,

4/05/24

..

162

162

992435585.UG.FTS.B,

29.49%,

4/05/24

..

467

466

992436739.UG.FTS.B,

29.49%,

4/05/24

..

55

55

992437095.UG.FTS.B,

29.49%,

4/05/24

..

109

7

992439029.UG.FTS.B,

29.49%,

4/05/24

..

11

11

992439811.UG.FTS.B,

29.49%,

4/05/24

..

111

110

992444368.UG.FTS.B,

29.49%,

4/05/24

..

934

931

992449697.UG.FTS.B,

29.49%,

4/05/24

..

30

30

992455893.UG.FTS.B,

29.49%,

4/05/24

..

140

140

992461968.UG.FTS.B,

29.49%,

4/05/24

..

169

169

992271010.UG.FTS.B,

17.97%,

4/03/25

..

658

668

992451344.UG.FTS.B,

19.21%,

4/03/25

..

99

101

992240239.UG.FTS.B,

19.8%,

4/03/25

...

355

363

992355930.UG.FTS.B,

19.8%,

4/03/25

...

249

253

992244955.UG.FTS.B,

19.99%,

4/03/25

..

155

154

992318841.UG.FTS.B,

19.99%,

4/03/25

..

1,234

1,243

992460958.UG.FTS.B,

20.46%,

4/03/25

..

353

359

992241042.UG.FTS.B,

20.97%,

4/03/25

..

539

548

992460846.UG.FTS.B,

20.97%,

4/03/25

..

496

314

992341430.UG.FTS.B,

23.95%,

4/03/25

..

168

170

992453694.UG.FTS.B,

27.95%,

4/03/25

..

11

11

992249317.UG.FTS.B,

28.98%,

4/03/25

..

835

842

992287702.UG.FTS.B,

28.98%,

4/03/25

..

344

347

992307437.UG.FTS.B,

28.98%,

4/03/25

..

829

827

992401201.UG.FTS.B,

28.98%,

4/03/25

..

52

52

992458860.UG.FTS.B,

28.98%,

4/03/25

..

250

253

992464185.UG.FTS.B,

28.98%,

4/03/25

..

69

70

992236828.UG.FTS.B,

29.49%,

4/03/25

..

100

101

992247758.UG.FTS.B,

29.49%,

4/03/25

..

267

176

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

992254734.UG.FTS.B,

29.49%,

4/03/25

..

$

83

$

83

992261673.UG.FTS.B,

29.49%,

4/03/25

..

642

642

992264392.UG.FTS.B,

29.49%,

4/03/25

..

544

552

992296038.UG.FTS.B,

29.49%,

4/03/25

..

442

445

992297454.UG.FTS.B,

29.49%,

4/03/25

..

80

79

992334340.UG.FTS.B,

29.49%,

4/03/25

..

98

99

992345330.UG.FTS.B,

29.49%,

4/03/25

..

478

477

992367110.UG.FTS.B,

29.49%,

4/03/25

..

1,279

1,282

992447439.UG.FTS.B,

29.49%,

4/03/25

..

182

22

992457538.UG.FTS.B,

29.49%,

4/03/25

..

47

48

992458383.UG.FTS.B,

29.49%,

4/03/25

..

26

26

992458735.UG.FTS.B,

29.49%,

4/03/25

..

42

43

992458807.UG.FTS.B,

29.49%,

4/03/25

..

61

61

992459379.UG.FTS.B,

29.49%,

4/03/25

..

4

4

992462263.UG.FTS.B,

29.49%,

4/03/25

..

6

6

992462894.UG.FTS.B,

29.49%,

4/03/25

..

124

125

992457494.UG.FTS.B,

17.99%,

4/04/25

..

654

668

992461071.UG.FTS.B,

19.8%,

4/04/25

...

175

19

992396587.UG.FTS.B,

21.97%,

4/04/25

..

215

217

992299146.UG.FTS.B,

28.98%,

4/04/25

..

1,098

1,101

992362408.UG.FTS.B,

28.98%,

4/04/25

..

1,818

1,810

992408749.UG.FTS.B,

28.98%,

4/04/25

..

392

396

992461489.UG.FTS.B,

28.98%,

4/04/25

..

38

38

992245821.UG.FTS.B,

29.49%,

4/04/25

..

314

318

992250417.UG.FTS.B,

29.49%,

4/04/25

..

322

319

992264434.UG.FTS.B,

29.49%,

4/04/25

..

546

543

992297978.UG.FTS.B,

29.49%,

4/04/25

..

64

64

992327693.UG.FTS.B,

29.49%,

4/04/25

..

62

61

992396391.UG.FTS.B,

29.49%,

4/04/25

..

379

381

992398823.UG.FTS.B,

29.49%,

4/04/25

..

260

262

992459117.UG.FTS.B,

29.49%,

4/04/25

..

37

37

992377798.UG.FTS.B,

15.97%,

4/05/25

..

8,616

8,845

992245824.UG.FTS.B,

16.99%,

4/05/25

..

245

249

992282393.UG.FTS.B,

16.99%,

4/05/25

..

1,925

1,975

992335587.UG.FTS.B,

17.97%,

4/05/25

..

373

386

992294096.UG.FTS.B,

17.99%,

4/05/25

..

545

552

992300496.UG.FTS.B,

17.99%,

4/05/25

..

118

121

992405274.UG.FTS.B,

17.99%,

4/05/25

..

1,734

1,771

992239267.UG.FTS.B,

19.21%,

4/05/25

..

1,934

1,982

992346705.UG.FTS.B,

19.21%,

4/05/25

..

961

984

992442455.UG.FTS.B,

19.21%,

4/05/25

..

2,343

2,388

992446552.UG.FTS.B,

19.21%,

4/05/25

..

478

487

992300281.UG.FTS.B,

19.8%,

4/05/25

...

44

45

992307969.UG.FTS.B,

19.8%,

4/05/25

...

116

119

992349565.UG.FTS.B,

19.8%,

4/05/25

...

1,152

1,179

992350427.UG.FTS.B,

19.8%,

4/05/25

...

962

984

992383581.UG.FTS.B,

19.8%,

4/05/25

...

254

260

992254243.UG.FTS.B,

19.99%,

4/05/25

..

421

425

992268585.UG.FTS.B,

19.99%,

4/05/25

..

113

114

992270154.UG.FTS.B,

19.99%,

4/05/25

..

606

618

992290118.UG.FTS.B,

19.99%,

4/05/25

..

142

145

992336548.UG.FTS.B,

19.99%,

4/05/25

..

1,763

1,771

992357555.UG.FTS.B,

19.99%,

4/05/25

..

186

190

992379889.UG.FTS.B,

19.99%,

4/05/25

..

1,201

1,217

992341688.UG.FTS.B,

20.46%,

4/05/25

..

147

150

992453559.UG.FTS.B,

20.46%,

4/05/25

..

2,391

2,433

992241765.UG.FTS.B,

20.97%,

4/05/25

..

501

512

992386629.UG.FTS.B,

20.97%,

4/05/25

..

3,842

3,925

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-34

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

992251309.UG.FTS.B,

21.46%,

4/05/25

..

$

477

$

486

992297939.UG.FTS.B,

21.46%,

4/05/25

..

35

35

992309805.UG.FTS.B,

21.46%,

4/05/25

..

846

867

992347533.UG.FTS.B,

21.46%,

4/05/25

..

241

246

992413295.UG.FTS.B,

21.46%,

4/05/25

..

153

157

992302079.UG.FTS.B,

21.97%,

4/05/25

..

1,385

1,410

992238211.UG.FTS.B,

21.98%,

4/05/25

..

759

775

992262665.UG.FTS.B,

21.98%,

4/05/25

..

10

10

992263295.UG.FTS.B,

21.98%,

4/05/25

..

389

397

992285455.UG.FTS.B,

21.98%,

4/05/25

..

24

24

992395369.UG.FTS.B,

21.98%,

4/05/25

..

318

324

992263400.UG.FTS.B,

22.95%,

4/05/25

..

404

411

992378649.UG.FTS.B,

22.95%,

4/05/25

..

490

96

992262511.UG.FTS.B,

22.97%,

4/05/25

..

842

857

992330039.UG.FTS.B,

22.97%,

4/05/25

..

598

610

992378853.UG.FTS.B,

22.97%,

4/05/25

..

962

980

992415093.UG.FTS.B,

22.97%,

4/05/25

..

274

279

992268373.UG.FTS.B,

23.95%,

4/05/25

..

713

719

992309324.UG.FTS.B,

23.95%,

4/05/25

..

841

854

992350011.UG.FTS.B,

23.95%,

4/05/25

..

111

112

992402436.UG.FTS.B,

23.95%,

4/05/25

..

273

277

992350254.UG.FTS.B,

24.96%,

4/05/25

..

173

174

992252550.UG.FTS.B,

27.99%,

4/05/25

..

60

60

992299445.UG.FTS.B,

27.99%,

4/05/25

..

42

43

992438360.UG.FTS.B,

27.99%,

4/05/25

..

221

222

992240832.UG.FTS.B,

28.98%,

4/05/25

..

96

98

992246882.UG.FTS.B,

28.98%,

4/05/25

..

786

805

992248396.UG.FTS.B,

28.98%,

4/05/25

..

977

996

992252552.UG.FTS.B,

28.98%,

4/05/25

..

36

36

992253878.UG.FTS.B,

28.98%,

4/05/25

..

2,042

2,050

992255354.UG.FTS.B,

28.98%,

4/05/25

..

71

72

992256280.UG.FTS.B,

28.98%,

4/05/25

..

3,780

3,854

992259876.UG.FTS.B,

28.98%,

4/05/25

..

121

123

992260350.UG.FTS.B,

28.98%,

4/05/25

..

136

136

992260733.UG.FTS.B,

28.98%,

4/05/25

..

339

346

992262040.UG.FTS.B,

28.98%,

4/05/25

..

201

205

992263366.UG.FTS.B,

28.98%,

4/05/25

..

–

–

992263660.UG.FTS.B,

28.98%,

4/05/25

..

591

589

992266396.UG.FTS.B,

28.98%,

4/05/25

..

3,161

3,171

992266496.UG.FTS.B,

28.98%,

4/05/25

..

152

154

992267371.UG.FTS.B,

28.98%,

4/05/25

..

1,204

1,227

992269403.UG.FTS.B,

28.98%,

4/05/25

..

154

153

992269419.UG.FTS.B,

28.98%,

4/05/25

..

385

393

992270480.UG.FTS.B,

28.98%,

4/05/25

..

265

270

992273307.UG.FTS.B,

28.98%,

4/05/25

..

2,517

2,565

992275628.UG.FTS.B,

28.98%,

4/05/25

..

76

75

992283631.UG.FTS.B,

28.98%,

4/05/25

..

920

935

992283659.UG.FTS.B,

28.98%,

4/05/25

..

245

247

992284082.UG.FTS.B,

28.98%,

4/05/25

..

243

248

992284271.UG.FTS.B,

28.98%,

4/05/25

..

1,948

1,961

992284330.UG.FTS.B,

28.98%,

4/05/25

..

1,153

1,170

992285475.UG.FTS.B,

28.98%,

4/05/25

..

65

65

992286835.UG.FTS.B,

28.98%,

4/05/25

..

134

138

992287485.UG.FTS.B,

28.98%,

4/05/25

..

362

368

992289248.UG.FTS.B,

28.98%,

4/05/25

..

42

42

992293208.UG.FTS.B,

28.98%,

4/05/25

..

389

392

992293228.UG.FTS.B,

28.98%,

4/05/25

..

117

120

992298707.UG.FTS.B,

28.98%,

4/05/25

..

74

5

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

992300125.UG.FTS.B,

28.98%,

4/05/25

..

$

1,945

$

1,983

992300368.UG.FTS.B,

28.98%,

4/05/25

..

113

115

992300466.UG.FTS.B,

28.98%,

4/05/25

..

442

451

992300547.UG.FTS.B,

28.98%,

4/05/25

..

136

139

992300944.UG.FTS.B,

28.98%,

4/05/25

..

166

168

992308269.UG.FTS.B,

28.98%,

4/05/25

..

130

132

992308546.UG.FTS.B,

28.98%,

4/05/25

..

114

13

992310426.UG.FTS.B,

28.98%,

4/05/25

..

243

245

992313981.UG.FTS.B,

28.98%,

4/05/25

..

220

219

992314709.UG.FTS.B,

28.98%,

4/05/25

..

970

989

992316890.UG.FTS.B,

28.98%,

4/05/25

..

1,008

1,031

992317837.UG.FTS.B,

28.98%,

4/05/25

..

37

38

992322709.UG.FTS.B,

28.98%,

4/05/25

..

194

198

992323257.UG.FTS.B,

28.98%,

4/05/25

..

40

40

992324031.UG.FTS.B,

28.98%,

4/05/25

..

759

774

992327441.UG.FTS.B,

28.98%,

4/05/25

..

1,621

1,630

992330452.UG.FTS.B,

28.98%,

4/05/25

..

207

209

992333704.UG.FTS.B,

28.98%,

4/05/25

..

65

65

992336076.UG.FTS.B,

28.98%,

4/05/25

..

52

52

992336115.UG.FTS.B,

28.98%,

4/05/25

..

338

344

992345324.UG.FTS.B,

28.98%,

4/05/25

..

51

52

992348005.UG.FTS.B,

28.98%,

4/05/25

..

484

494

992348900.UG.FTS.B,

28.98%,

4/05/25

..

82

19

992349767.UG.FTS.B,

28.98%,

4/05/25

..

291

293

992350279.UG.FTS.B,

28.98%,

4/05/25

..

484

487

992353271.UG.FTS.B,

28.98%,

4/05/25

..

688

701

992360655.UG.FTS.B,

28.98%,

4/05/25

..

429

437

992360785.UG.FTS.B,

28.98%,

4/05/25

..

194

197

992365529.UG.FTS.B,

28.98%,

4/05/25

..

9

9

992378373.UG.FTS.B,

28.98%,

4/05/25

..

802

806

992379087.UG.FTS.B,

28.98%,

4/05/25

..

1,000

118

992383071.UG.FTS.B,

28.98%,

4/05/25

..

12

12

992385229.UG.FTS.B,

28.98%,

4/05/25

..

286

291

992398111.UG.FTS.B,

28.98%,

4/05/25

..

153

155

992398535.UG.FTS.B,

28.98%,

4/05/25

..

8

8

992400412.UG.FTS.B,

28.98%,

4/05/25

..

284

281

992406035.UG.FTS.B,

28.98%,

4/05/25

..

861

877

992409294.UG.FTS.B,

28.98%,

4/05/25

..

80

81

992413133.UG.FTS.B,

28.98%,

4/05/25

..

465

474

992415454.UG.FTS.B,

28.98%,

4/05/25

..

1,060

1,071

992421193.UG.FTS.B,

28.98%,

4/05/25

..

385

385

992434753.UG.FTS.B,

28.98%,

4/05/25

..

1,193

1,184

992435220.UG.FTS.B,

28.98%,

4/05/25

..

255

256

992435245.UG.FTS.B,

28.98%,

4/05/25

..

385

389

992437799.UG.FTS.B,

28.98%,

4/05/25

..

38

38

992442881.UG.FTS.B,

28.98%,

4/05/25

..

109

108

992443445.UG.FTS.B,

28.98%,

4/05/25

..

44

45

992446631.UG.FTS.B,

28.98%,

4/05/25

..

102

103

992446902.UG.FTS.B,

28.98%,

4/05/25

..

30

30

992451365.UG.FTS.B,

28.98%,

4/05/25

..

40

41

992452469.UG.FTS.B,

28.98%,

4/05/25

..

288

286

992453910.UG.FTS.B,

28.98%,

4/05/25

..

53

54

992459352.UG.FTS.B,

28.98%,

4/05/25

..

36

37

992276659.UG.FTS.B,

29.46%,

4/05/25

..

106

105

992286809.UG.FTS.B,

29.46%,

4/05/25

..

631

132

992290075.UG.FTS.B,

29.46%,

4/05/25

..

35

35

992293126.UG.FTS.B,

29.46%,

4/05/25

..

75

75

992304458.UG.FTS.B,

29.46%,

4/05/25

..

111

113

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-35

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

992451626.UG.FTS.B,

29.46%,

4/05/25

..

$

29

$

29

992273863.UG.FTS.B,

29.47%,

4/05/25

..

53

4

992304945.UG.FTS.B,

29.47%,

4/05/25

..

153

152

992356637.UG.FTS.B,

29.48%,

4/05/25

..

242

246

992230083.UG.FTS.B,

29.49%,

4/05/25

..

7

7

992237772.UG.FTS.B,

29.49%,

4/05/25

..

243

243

992238384.UG.FTS.B,

29.49%,

4/05/25

..

66

66

992239318.UG.FTS.B,

29.49%,

4/05/25

..

117

119

992239897.UG.FTS.B,

29.49%,

4/05/25

..

60

60

992241701.UG.FTS.B,

29.49%,

4/05/25

..

593

603

992243923.UG.FTS.B,

29.49%,

4/05/25

..

3,293

3,302

992244487.UG.FTS.B,

29.49%,

4/05/25

..

29

29

992245925.UG.FTS.B,

29.49%,

4/05/25

..

20

1

992247108.UG.FTS.B,

29.49%,

4/05/25

..

197

14

992249401.UG.FTS.B,

29.49%,

4/05/25

..

50

50

992250643.UG.FTS.B,

29.49%,

4/05/25

..

257

261

992252659.UG.FTS.B,

29.49%,

4/05/25

..

11

11

992254667.UG.FTS.B,

29.49%,

4/05/25

..

484

480

992255038.UG.FTS.B,

29.49%,

4/05/25

..

158

155

992255558.UG.FTS.B,

29.49%,

4/05/25

..

205

209

992255624.UG.FTS.B,

29.49%,

4/05/25

..

6

5

992256558.UG.FTS.B,

29.49%,

4/05/25

..

132

134

992256966.UG.FTS.B,

29.49%,

4/05/25

..

762

775

992258898.UG.FTS.B,

29.49%,

4/05/25

..

2,335

2,335

992259460.UG.FTS.B,

29.49%,

4/05/25

..

103

104

992260433.UG.FTS.B,

29.49%,

4/05/25

..

119

7

992262634.UG.FTS.B,

29.49%,

4/05/25

..

39

39

992263028.UG.FTS.B,

29.49%,

4/05/25

..

48

48

992266945.UG.FTS.B,

29.49%,

4/05/25

..

53

53

992267222.UG.FTS.B,

29.49%,

4/05/25

..

313

317

992268106.UG.FTS.B,

29.49%,

4/05/25

..

125

126

992270160.UG.FTS.B,

29.49%,

4/05/25

..

78

78

992271134.UG.FTS.B,

29.49%,

4/05/25

..

135

136

992275086.UG.FTS.B,

29.49%,

4/05/25

..

523

531

992276527.UG.FTS.B,

29.49%,

4/05/25

..

1,207

1,203

992278455.UG.FTS.B,

29.49%,

4/05/25

..

251

257

992279419.UG.FTS.B,

29.49%,

4/05/25

..

43

44

992280377.UG.FTS.B,

29.49%,

4/05/25

..

266

270

992280455.UG.FTS.B,

29.49%,

4/05/25

..

208

212

992280735.UG.FTS.B,

29.49%,

4/05/25

..

278

280

992281425.UG.FTS.B,

29.49%,

4/05/25

..

487

496

992281701.UG.FTS.B,

29.49%,

4/05/25

..

142

143

992283304.UG.FTS.B,

29.49%,

4/05/25

..

341

346

992284321.UG.FTS.B,

29.49%,

4/05/25

..

585

594

992284964.UG.FTS.B,

29.49%,

4/05/25

..

95

96

992285081.UG.FTS.B,

29.49%,

4/05/25

..

77

78

992287136.UG.FTS.B,

29.49%,

4/05/25

..

11

11

992287347.UG.FTS.B,

29.49%,

4/05/25

..

39

39

992288356.UG.FTS.B,

29.49%,

4/05/25

..

521

522

992288429.UG.FTS.B,

29.49%,

4/05/25

..

152

155

992288886.UG.FTS.B,

29.49%,

4/05/25

..

105

106

992289258.UG.FTS.B,

29.49%,

4/05/25

..

571

581

992289411.UG.FTS.B,

29.49%,

4/05/25

..

14

14

992297505.UG.FTS.B,

29.49%,

4/05/25

..

102

103

992297515.UG.FTS.B,

29.49%,

4/05/25

..

57

58

992298611.UG.FTS.B,

29.49%,

4/05/25

..

342

346

992298879.UG.FTS.B,

29.49%,

4/05/25

..

157

159

992302260.UG.FTS.B,

29.49%,

4/05/25

..

217

224

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

992302310.UG.FTS.B,

29.49%,

4/05/25

..

$

239

$

243

992302422.UG.FTS.B,

29.49%,

4/05/25

..

195

199

992303216.UG.FTS.B,

29.49%,

4/05/25

..

876

891

992304263.UG.FTS.B,

29.49%,

4/05/25

..

187

190

992305574.UG.FTS.B,

29.49%,

4/05/25

..

512

517

992306296.UG.FTS.B,

29.49%,

4/05/25

..

90

90

992306439.UG.FTS.B,

29.49%,

4/05/25

..

132

135

992307508.UG.FTS.B,

29.49%,

4/05/25

..

893

893

992309593.UG.FTS.B,

29.49%,

4/05/25

..

97

99

992317627.UG.FTS.B,

29.49%,

4/05/25

..

35

35

992318568.UG.FTS.B,

29.49%,

4/05/25

..

120

122

992321945.UG.FTS.B,

29.49%,

4/05/25

..

3,691

3,759

992321979.UG.FTS.B,

29.49%,

4/05/25

..

456

460

992323198.UG.FTS.B,

29.49%,

4/05/25

..

1

1

992323515.UG.FTS.B,

29.49%,

4/05/25

..

101

102

992327633.UG.FTS.B,

29.49%,

4/05/25

..

37

38

992328907.UG.FTS.B,

29.49%,

4/05/25

..

195

198

992330144.UG.FTS.B,

29.49%,

4/05/25

..

78

79

992330550.UG.FTS.B,

29.49%,

4/05/25

..

31

31

992332355.UG.FTS.B,

29.49%,

4/05/25

..

209

212

992333762.UG.FTS.B,

29.49%,

4/05/25

..

750

756

992336856.UG.FTS.B,

29.49%,

4/05/25

..

84

84

992340207.UG.FTS.B,

29.49%,

4/05/25

..

2,086

2,110

992340414.UG.FTS.B,

29.49%,

4/05/25

..

198

201

992341808.UG.FTS.B,

29.49%,

4/05/25

..

182

182

992344969.UG.FTS.B,

29.49%,

4/05/25

..

2,391

2,370

992345540.UG.FTS.B,

29.49%,

4/05/25

..

380

386

992346543.UG.FTS.B,

29.49%,

4/05/25

..

517

344

992347805.UG.FTS.B,

29.49%,

4/05/25

..

12

12

992349189.UG.FTS.B,

29.49%,

4/05/25

..

181

12

992349479.UG.FTS.B,

29.49%,

4/05/25

..

65

64

992356210.UG.FTS.B,

29.49%,

4/05/25

..

24

24

992356806.UG.FTS.B,

29.49%,

4/05/25

..

76

5

992356877.UG.FTS.B,

29.49%,

4/05/25

..

125

86

992359163.UG.FTS.B,

29.49%,

4/05/25

..

194

197

992360320.UG.FTS.B,

29.49%,

4/05/25

..

1,549

1,576

992364246.UG.FTS.B,

29.49%,

4/05/25

..

77

77

992366171.UG.FTS.B,

29.49%,

4/05/25

..

14

1

992378552.UG.FTS.B,

29.49%,

4/05/25

..

193

197

992379207.UG.FTS.B,

29.49%,

4/05/25

..

290

293

992379334.UG.FTS.B,

29.49%,

4/05/25

..

580

590

992379445.UG.FTS.B,

29.49%,

4/05/25

..

241

241

992380197.UG.FTS.B,

29.49%,

4/05/25

..

80

81

992384442.UG.FTS.B,

29.49%,

4/05/25

..

42

42

992385119.UG.FTS.B,

29.49%,

4/05/25

..

174

176

992397317.UG.FTS.B,

29.49%,

4/05/25

..

32

32

992398519.UG.FTS.B,

29.49%,

4/05/25

..

78

78

992410434.UG.FTS.B,

29.49%,

4/05/25

..

1,169

1,174

992410964.UG.FTS.B,

29.49%,

4/05/25

..

46

45

992413134.UG.FTS.B,

29.49%,

4/05/25

..

465

308

992415144.UG.FTS.B,

29.49%,

4/05/25

..

149

150

992416332.UG.FTS.B,

29.49%,

4/05/25

..

1,060

1,064

992423485.UG.FTS.B,

29.49%,

4/05/25

..

912

906

992424856.UG.FTS.B,

29.49%,

4/05/25

..

385

382

992428186.UG.FTS.B,

29.49%,

4/05/25

..

3,032

3,028

992438905.UG.FTS.B,

29.49%,

4/05/25

..

30

28

992439303.UG.FTS.B,

29.49%,

4/05/25

..

106

23

992439563.UG.FTS.B,

29.49%,

4/05/25

..

175

176

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-36

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

992443418.UG.FTS.B,

29.49%,

4/05/25

..

$

154

$

155

992443427.UG.FTS.B,

29.49%,

4/05/25

..

21

21

992444066.UG.FTS.B,

29.49%,

4/05/25

..

276

181

992444794.UG.FTS.B,

29.49%,

4/05/25

..

5,768

5,697

992444865.UG.FTS.B,

29.49%,

4/05/25

..

87

88

992445820.UG.FTS.B,

29.49%,

4/05/25

..

154

155

992446758.UG.FTS.B,

29.49%,

4/05/25

..

42

42

992448030.UG.FTS.B,

29.49%,

4/05/25

..

116

117

992455533.UG.FTS.B,

29.49%,

4/05/25

..

1,920

1,934

992459544.UG.FTS.B,

29.49%,

4/05/25

..

6

6

992443252.UG.FTS.B,

28.98%,

5/03/27

..

–

–

992288223.UG.FTS.B,

29.49%,

6/03/27

..

0

0

992463033.UG.FTS.B,

19.99%,

7/01/27

..

0

0

992450757.UG.FTS.B,

21.46%,

7/03/27

..

4

4

992279461.UG.FTS.B,

29.47%,

7/03/27

..

13

1

992252618.UG.FTS.B,

29.48%,

7/03/27

..

1

1

992451140.UG.FTS.B,

29.48%,

7/03/27

..

4

4

992277200.UG.FTS.B,

29.49%,

7/03/27

..

10

5

992436908.UG.FTS.B,

29.49%,

7/03/27

..

3

3

992438381.UG.FTS.B,

29.49%,

7/03/27

..

2

2

185,589

Upstart

Network,

Inc.

L1739433.UP.FTS.B,

8.57%,

9/20/24

....

5,259

5,220

L1738924.UP.FTS.B,

15.39%,

9/20/24

....

791

784

FW1739398.UP.FTS.B,

20.17%,

9/20/24

..

3,211

3,170

FW1738604.UP.FTS.B,

22.34%,

9/20/24

..

2,628

2,588

FW1739127.UP.FTS.B,

25.16%,

9/20/24

..

25,009

24,668

L1915199.UP.FTS.B,

6.41%,

10/25/24

....

13,100

13,011

FW1915250.UP.FTS.B,

12.04%,

10/25/24

.

40,383

40,128

L1914801.UP.FTS.B,

12.09%,

10/25/24

...

4,037

4,011

FW1915226.UP.FTS.B,

13.65%,

10/25/24

.

1,217

1,210

L1914567.UP.FTS.B,

16.17%,

10/25/24

...

2,672

2,649

FW1914469.UP.FTS.B,

17.25%,

10/25/24

.

3,595

1,005

L1914732.UP.FTS.B,

17.66%,

10/25/24

...

8,207

8,140

L1915220.UP.FTS.B,

18.87%,

10/25/24

...

3,957

3,920

FW1914760.UP.FTS.B,

27.19%,

10/25/24

.

1,683

1,664

L2056491.UP.FTS.B,

7.95%,

11/16/24

....

1,233

1,223

L2055423.UP.FTS.B,

8.44%,

11/16/24

....

4,453

4,418

L2052631.UP.FTS.B,

8.92%,

11/16/24

....

4,128

4,095

FW2056962.UP.FTS.B,

9.24%,

11/16/24

..

8,263

8,198

L2054750.UP.FTS.B,

10.22%,

11/16/24

...

4,133

4,100

L2052610.UP.FTS.B,

11.6%,

11/16/24

....

2,494

2,474

L2057377.UP.FTS.B,

13.89%,

11/16/24

...

1,672

1,659

L2057046.UP.FTS.B,

15.77%,

11/16/24

...

2,520

2,491

L2057137.UP.FTS.B,

15.78%,

11/16/24

...

3,373

3,331

L2052838.UP.FTS.B,

16.45%,

11/16/24

...

1,262

1,248

L2053269.UP.FTS.B,

18.64%,

11/16/24

...

1,692

1,672

L2055155.UP.FTS.B,

20.16%,

11/16/24

...

4,245

4,180

FW2054947.UP.FTS.B,

21.35%,

11/16/24

.

1,532

1,509

L2057159.UP.FTS.B,

22.2%,

11/16/24

....

8,704

8,205

L2057081.UP.FTS.B,

23.41%,

11/16/24

...

1,967

1,937

FW2053330.UP.FTS.B,

28.78%,

11/16/24

.

1,125

1,108

FW2056543.UP.FTS.B,

29.23%,

11/16/24

.

1,213

1,194

FW2055081.UP.FTS.B,

29.29%,

11/16/24

.

5,211

5,128

L2242043.UP.FTS.B,

6.01%,

12/13/24

....

845

839

L2242235.UP.FTS.B,

6.04%,

12/13/24

....

2,959

2,938

FW2242510.UP.FTS.B,

7.1%,

12/13/24

...

7,648

7,595

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2233888.UP.FTS.B,

7.98%,

12/13/24

....

$

5,096

$

5,055

L2241803.UP.FTS.B,

9.3%,

12/13/24

....

17,038

16,901

L2242451.UP.FTS.B,

10.48%,

12/13/24

...

854

847

L2241531.UP.FTS.B,

11.26%,

12/13/24

...

5,990

5,938

L2242595.UP.FTS.B,

11.8%,

12/13/24

....

2,142

2,124

L2242354.UP.FTS.B,

13.2%,

12/13/24

....

2,578

2,557

L2241741.UP.FTS.B,

14.61%,

12/13/24

...

3,727

3,679

L2242471.UP.FTS.B,

15.28%,

12/13/24

...

827

815

L2242159.UP.FTS.B,

16.13%,

12/13/24

...

1,293

1,276

L2242679.UP.FTS.B,

16.66%,

12/13/24

...

3,463

3,420

L2242317.UP.FTS.B,

18.48%,

12/13/24

...

5,213

5,148

FW2242424.UP.FTS.B,

20.03%,

12/13/24

.

852

840

L2241965.UP.FTS.B,

20.43%,

12/13/24

...

1,800

1,045

FW2242278.UP.FTS.B,

21.84%,

12/13/24

.

875

860

L2242250.UP.FTS.B,

22.23%,

12/13/24

...

2,976

2,928

L2241739.UP.FTS.B,

23.45%,

12/13/24

...

1,316

1,295

FW2242239.UP.FTS.B,

24.53%,

12/13/24

.

879

865

L2242692.UP.FTS.B,

25.15%,

12/13/24

...

13,513

8,108

L2242027.UP.FTS.B,

25.21%,

12/13/24

...

7,415

95

FW2242714.UP.FTS.B,

26.37%,

12/13/24

.

4,964

2,978

FW2241794.UP.FTS.B,

28.26%,

12/13/24

.

2,264

2,220

FW2241887.UP.FTS.B,

28.39%,

12/13/24

.

2,830

829

FW2242021.UP.FTS.B,

29.12%,

12/13/24

.

1,368

1,341

FW2465310.UP.FTS.B,

5.02%,

1/19/25

...

2,515

2,500

L2465354.UP.FTS.B,

5.14%,

1/19/25

....

1,253

1,245

L2465718.UP.FTS.B,

5.3%,

1/19/25

.....

6,875

6,834

L2465958.UP.FTS.B,

5.34%,

1/19/25

....

3,915

3,891

L2465631.UP.FTS.B,

5.44%,

1/19/25

....

953

947

L2464613.UP.FTS.B,

5.52%,

1/19/25

....

2,177

2,163

L2465653.UP.FTS.B,

5.58%,

1/19/25

....

26,119

25,962

L2460890.UP.FTS.B,

5.68%,

1/19/25

....

8,709

8,656

L2465894.UP.FTS.B,

5.74%,

1/19/25

....

5,226

5,195

L2465895.UP.FTS.B,

5.84%,

1/19/25

....

3,049

3,031

FW2465707.UP.FTS.B,

6.24%,

1/19/25

...

1,308

1,300

L2465121.UP.FTS.B,

6.53%,

1/19/25

....

13,457

13,372

L2464359.UP.FTS.B,

6.66%,

1/19/25

....

5,235

5,204

L2465247.UP.FTS.B,

6.82%,

1/19/25

....

1,094

1,087

L2466095.UP.FTS.B,

7.07%,

1/19/25

....

2,620

2,604

FW2465710.UP.FTS.B,

7.96%,

1/19/25

...

962

956

L2465847.UP.FTS.B,

8.05%,

1/19/25

....

26,245

26,074

L2464679.UP.FTS.B,

9.11%,

1/19/25

.....

6,647

6,599

L2466062.UP.FTS.B,

9.54%,

1/19/25

....

3,000

219

L2464979.UP.FTS.B,

10.54%,

1/19/25

....

7,031

6,986

L2465916.UP.FTS.B,

11.44%,

1/19/25

....

4,402

4,374

L2465662.UP.FTS.B,

11.74%,

1/19/25

....

4,492

4,462

FW2465131.UP.FTS.B,

12.69%,

1/19/25

..

10,506

10,434

L2465754.UP.FTS.B,

16.74%,

1/19/25

....

889

880

L2465570.UP.FTS.B,

17.93%,

1/19/25

....

17,807

17,631

FW2465119.UP.FTS.B,

19.64%,

1/19/25

..

4,698

4,646

L2462700.UP.FTS.B,

20.56%,

1/19/25

....

13,413

13,244

L2464723.UP.FTS.B,

20.66%,

1/19/25

....

4,460

4,403

L2466210.UP.FTS.B,

20.93%,

1/19/25

....

13,958

13,821

L2465879.UP.FTS.B,

21.67%,

1/19/25

....

896

885

FW2676316.UP.FTS.B,

6.01%,

2/22/25

...

5,377

5,348

FW2675522.UP.FTS.B,

6.74%,

2/22/25

...

1,397

1,388

L2675489.UP.FTS.B,

9.63%,

2/22/25

....

13,531

13,451

L2675909.UP.FTS.B,

9.72%,

2/22/25

....

2,256

2,242

L2675302.UP.FTS.B,

10.61%,

2/22/25

....

7,769

7,723

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-37

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2676030.UP.FTS.B,

13.7%,

2/22/25

....

$

10,888

$

10,821

L2675455.UP.FTS.B,

14.81%,

2/22/25

....

2,272

2,251

L2675462.UP.FTS.B,

19.44%,

2/22/25

....

2,286

2,264

FW2676387.UP.FTS.B,

19.6%,

2/22/25

...

1,737

1,721

L2676045.UP.FTS.B,

19.66%,

2/22/25

....

1,004

994

FW2675588.UP.FTS.B,

20.36%,

2/22/25

..

7,506

7,435

L2675655.UP.FTS.B,

20.76%,

2/22/25

....

916

907

L2675586.UP.FTS.B,

20.97%,

2/22/25

....

8,062

7,968

L2675247.UP.FTS.B,

21.23%,

2/22/25

....

3,621

3,577

FW2675117.UP.FTS.B,

22.39%,

2/22/25

..

1,009

1,000

FW2676277.UP.FTS.B,

22.93%,

2/22/25

..

3,867

3,818

L2675338.UP.FTS.B,

23.21%,

2/22/25

....

4,961

4,914

FW2676006.UP.FTS.B,

24.14%,

2/22/25

..

2,540

2,509

FW2675719.UP.FTS.B,

24.19%,

2/22/25

..

2,721

2,687

FW2675613.UP.FTS.B,

24.49%,

2/22/25

..

6,441

6,365

FW2674989.UP.FTS.B,

25.83%,

2/22/25

..

1,834

1,812

FW2675763.UP.FTS.B,

28.74%,

2/22/25

..

4,782

4,724

FW2676140.UP.FTS.B,

29.13%,

2/22/25

..

2,590

2,560

L2981596.UP.FTS.B,

7.13%,

4/20/25

....

4,749

4,740

L2982581.UP.FTS.B,

11.78%,

4/20/25

....

18,373

18,309

L2982336.UP.FTS.B,

12.28%,

4/20/25

....

3,334

3,321

L2981009.UP.FTS.B,

14.77%,

4/20/25

....

2,579

2,563

FW2982315.UP.FTS.B,

15.15%,

4/20/25

..

1,338

1,334

FW2981993.UP.FTS.B,

15.69%,

4/20/25

..

1,076

1,021

L1739715.UP.FTS.B,

9.65%,

9/20/26

....

21,967

21,838

L1739019.UP.FTS.B,

13.76%,

9/20/26

....

5,160

5,118

L1736636.UP.FTS.B,

14.78%,

9/20/26

....

12,492

12,391

L1739680.UP.FTS.B,

16.6%,

9/20/26

....

13,453

13,299

FW1739526.UP.FTS.B,

17.22%,

9/20/26

..

7,187

7,105

L1739131.UP.FTS.B,

17.22%,

9/20/26

....

13,476

13,288

L1723172.UP.FTS.B,

18.88%,

9/20/26

....

2,196

614

L1738899.UP.FTS.B,

19.15%,

9/20/26

....

13,545

13,356

L1739140.UP.FTS.B,

21.45%,

9/20/26

....

2,718

2,699

L1739562.UP.FTS.B,

22.68%,

9/20/26

....

6,377

6,333

L1739694.UP.FTS.B,

22.68%,

9/20/26

....

10,022

9,952

L1738904.UP.FTS.B,

24.36%,

9/20/26

....

6,403

6,313

L1739499.UP.FTS.B,

25.07%,

9/20/26

....

4,764

4,731

FW1739404.UP.FTS.B,

26.55%,

9/20/26

..

2,825

2,800

FW1739462.UP.FTS.B,

27.3%,

9/20/26

...

4,604

4,571

FW1738971.UP.FTS.B,

27.63%,

9/20/26

..

4,239

4,209

L1738918.UP.FTS.B,

27.72%,

9/20/26

....

3,936

3,863

FW1739399.UP.FTS.B,

28.19%,

9/20/26

..

5,536

5,496

FW1738592.UP.FTS.B,

28.44%,

9/20/26

..

5,553

5,509

FW1739144.UP.FTS.B,

30.91%,

9/20/26

..

3,623

3,593

FW1739500.UP.FTS.B,

30.99%,

9/20/26

..

12,733

12,621

FW1739495.UP.FTS.B,

32.86%,

9/20/26

..

5,232

5,168

L1910370.UP.FTS.B,

14.66%,

10/25/26

...

3,928

3,900

L1901600.UP.FTS.B,

16.72%,

10/25/26

...

1,754

1,734

L1915014.UP.FTS.B,

19.01%,

10/25/26

...

4,517

4,459

L1914615.UP.FTS.B,

19.05%,

10/25/26

...

9,696

697

FW1915567.UP.FTS.B,

19.17%,

10/25/26

.

902

893

FW1915211.UP.FTS.B,

19.28%,

10/25/26

.

5,763

5,688

FW1915262.UP.FTS.B,

19.99%,

10/25/26

.

7,967

7,883

L1915447.UP.FTS.B,

20.32%,

10/25/26

...

5,318

5,247

L1915560.UP.FTS.B,

20.46%,

10/25/26

...

4,587

4,562

L1915064.UP.FTS.B,

20.48%,

10/25/26

...

4,391

4,358

L1914682.UP.FTS.B,

21.49%,

10/25/26

...

17,918

17,682

L1915468.UP.FTS.B,

23.09%,

10/25/26

...

5,075

5,047

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L1912265.UP.FTS.B,

23.3%,

10/25/26

....

$

3,693

$

3,673

L1914761.UP.FTS.B,

23.31%,

10/25/26

...

923

918

FW1915175.UP.FTS.B,

23.46%,

10/25/26

.

2,770

2,755

L1897015.UP.FTS.B,

23.49%,

10/25/26

...

11,083

11,022

L1915269.UP.FTS.B,

23.56%,

10/25/26

...

6,932

494

L1914923.UP.FTS.B,

23.8%,

10/25/26

....

1,848

1,838

L1915604.UP.FTS.B,

24.04%,

10/25/26

...

1,017

1,011

L1914712.UP.FTS.B,

24.22%,

10/25/26

...

7,860

564

L1914714.UP.FTS.B,

24.73%,

10/25/26

...

3,704

3,683

L1898888.UP.FTS.B,

25.15%,

10/25/26

...

1,100

1,084

L1915081.UP.FTS.B,

25.35%,

10/25/26

...

2,596

2,582

L1914184.UP.FTS.B,

25.37%,

10/25/26

...

2,051

2,033

FW1914675.UP.FTS.B,

26.25%,

10/25/26

.

9,609

2,858

FW1915043.UP.FTS.B,

27.43%,

10/25/26

.

4,655

4,629

FW1908593.UP.FTS.B,

28.41%,

10/25/26

.

19,036

18,910

FW1914238.UP.FTS.B,

29.34%,

10/25/26

.

6,091

6,046

FW1914247.UP.FTS.B,

29.67%,

10/25/26

.

4,371

4,331

FW1914310.UP.FTS.B,

30.01%,

10/25/26

.

39,688

39,406

FW1915272.UP.FTS.B,

30.7%,

10/25/26

..

1,763

1,752

FW1915225.UP.FTS.B,

30.8%,

10/25/26

..

3,371

3,352

FW1914911.UP.FTS.B,

31.1%,

10/25/26

..

2,507

2,485

FW1915025.UP.FTS.B,

31.16%,

10/25/26

.

4,111

4,087

FW1907740.UP.FTS.B,

31.19%,

10/25/26

.

927

921

FW1915312.UP.FTS.B,

31.22%,

10/25/26

.

3,844

3,823

L2024110.UP.FTS.B,

7.78%,

11/16/26

....

16,222

16,127

L2052804.UP.FTS.B,

9.15%,

11/16/26

....

36,049

35,837

L2043903.UP.FTS.B,

9.82%,

11/16/26

....

16,612

16,513

L2056878.UP.FTS.B,

9.83%,

11/16/26

....

4,578

1,118

L2053787.UP.FTS.B,

10.61%,

11/16/26

...

4,542

4,504

FW2055257.UP.FTS.B,

11.51%,

11/16/26

.

9,103

9,027

L2052126.UP.FTS.B,

12.52%,

11/16/26

...

14,599

14,477

L2055857.UP.FTS.B,

12.9%,

11/16/26

....

10,959

10,868

L2054559.UP.FTS.B,

14.24%,

11/16/26

...

8,244

8,175

L2055412.UP.FTS.B,

14.29%,

11/16/26

...

2,758

2,736

FW2056157.UP.FTS.B,

15.18%,

11/16/26

.

8,261

8,161

FW2055789.UP.FTS.B,

15.22%,

11/16/26

.

13,759

13,643

L2052051.UP.FTS.B,

15.75%,

11/16/26

...

4,136

4,086

FW2051020.UP.FTS.B,

15.91%,

11/16/26

.

12,875

12,719

FW2053732.UP.FTS.B,

16.83%,

11/16/26

.

921

910

L2056184.UP.FTS.B,

17.11%,

11/16/26

...

10,732

10,637

L2056373.UP.FTS.B,

17.2%,

11/16/26

....

8,297

8,196

L2057058.UP.FTS.B,

17.23%,

11/16/26

...

6,915

6,831

FW2055936.UP.FTS.B,

17.39%,

11/16/26

.

1,418

382

FW2054200.UP.FTS.B,

17.46%,

11/16/26

.

12,729

12,540

L2056403.UP.FTS.B,

18.49%,

11/16/26

...

2,216

2,198

L2055275.UP.FTS.B,

19%,

11/16/26

.....

13,881

13,712

FW2055175.UP.FTS.B,

19.05%,

11/16/26

.

16,653

16,406

L2057218.UP.FTS.B,

19.51%,

11/16/26

...

21,489

21,309

L2055269.UP.FTS.B,

19.56%,

11/16/26

...

21,080

20,765

L2052101.UP.FTS.B,

20.05%,

11/16/26

...

23,181

22,836

L2051843.UP.FTS.B,

20.82%,

11/16/26

...

13,001

12,842

L2052461.UP.FTS.B,

22.33%,

11/16/26

...

46,343

45,904

FW2057201.UP.FTS.B,

22.39%,

11/16/26

.

3,690

3,643

L2057382.UP.FTS.B,

22.46%,

11/16/26

...

2,500

2,459

L2056569.UP.FTS.B,

22.59%,

11/16/26

...

12,896

12,126

L2047823.UP.FTS.B,

23.05%,

11/16/26

...

4,554

4,495

FW2052456.UP.FTS.B,

23.32%,

11/16/26

.

18,560

18,383

L2057372.UP.FTS.B,

23.63%,

11/16/26

...

6,445

6,386

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-38

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2053649.UP.FTS.B,

23.67%,

11/16/26

.

$

20,633

$

20,381

FW2056098.UP.FTS.B,

23.67%,

11/16/26

.

6,585

6,234

L2019975.UP.FTS.B,

23.69%,

11/16/26

...

1,867

1,850

L2053900.UP.FTS.B,

23.81%,

11/16/26

...

934

925

L2053478.UP.FTS.B,

24.22%,

11/16/26

...

2,430

2,407

L2052105.UP.FTS.B,

24.58%,

11/16/26

...

4,928

1,425

FW2056667.UP.FTS.B,

24.73%,

11/16/26

.

4,725

4,473

FW2055944.UP.FTS.B,

24.96%,

11/16/26

.

1,660

1,630

L2055803.UP.FTS.B,

24.96%,

11/16/26

...

1,404

1,391

L2055855.UP.FTS.B,

25.11%,

11/16/26

...

1,878

1,860

L2056364.UP.FTS.B,

25.24%,

11/16/26

...

1,311

1,299

L2055652.UP.FTS.B,

25.25%,

11/16/26

...

1,124

1,114

L2049616.UP.FTS.B,

25.29%,

11/16/26

...

1,124

1,114

L2046165.UP.FTS.B,

25.35%,

11/16/26

...

2,484

722

L2054937.UP.FTS.B,

25.38%,

11/16/26

...

2,837

2,686

L2052082.UP.FTS.B,

25.42%,

11/16/26

...

1,405

1,392

L2055669.UP.FTS.B,

25.48%,

11/16/26

...

2,324

2,301

L2056440.UP.FTS.B,

25.49%,

11/16/26

...

30,721

28,907

L2052376.UP.FTS.B,

25.81%,

11/16/26

...

4,731

4,480

FW2056110.UP.FTS.B,

26.13%,

11/16/26

.

15,027

14,880

FW2054089.UP.FTS.B,

26.17%,

11/16/26

.

1,876

1,858

FW2056882.UP.FTS.B,

26.32%,

11/16/26

.

4,690

4,647

FW2056482.UP.FTS.B,

26.96%,

11/16/26

.

4,726

4,477

FW2057264.UP.FTS.B,

27.1%,

11/16/26

..

5,635

5,583

FW2053471.UP.FTS.B,

27.97%,

11/16/26

.

1,881

1,864

FW2055613.UP.FTS.B,

28.42%,

11/16/26

.

2,355

2,320

FW2054616.UP.FTS.B,

28.56%,

11/16/26

.

3,472

244

FW2055282.UP.FTS.B,

29.32%,

11/16/26

.

4,713

4,669

FW2046105.UP.FTS.B,

29.67%,

11/16/26

.

4,244

4,205

FW2056001.UP.FTS.B,

30.17%,

11/16/26

.

1,227

1,216

FW2057500.UP.FTS.B,

30.64%,

11/16/26

.

9,439

9,350

FW2055364.UP.FTS.B,

30.66%,

11/16/26

.

7,557

7,486

FW2056081.UP.FTS.B,

30.81%,

11/16/26

.

1,606

1,591

FW2055828.UP.FTS.B,

30.82%,

11/16/26

.

3,003

446

FW2056764.UP.FTS.B,

31.04%,

11/16/26

.

969

285

FW2055692.UP.FTS.B,

31.07%,

11/16/26

.

1,621

1,605

FW2056040.UP.FTS.B,

31.11%,

11/16/26

.

5,484

818

FW2056960.UP.FTS.B,

31.19%,

11/16/26

.

1,648

245

FW2054534.UP.FTS.B,

31.22%,

11/16/26

.

1,135

1,124

FW2056560.UP.FTS.B,

31.71%,

11/16/26

.

1,581

1,557

FW2056229.UP.FTS.B,

31.92%,

11/16/26

.

6,563

6,490

FW2057162.UP.FTS.B,

32.15%,

11/16/26

.

8,805

8,722

L2242254.UP.FTS.B,

7.13%,

12/13/26

....

9,151

9,099

L2242685.UP.FTS.B,

9%,

12/13/26

......

13,782

13,704

L2242361.UP.FTS.B,

9.11%,

12/13/26

....

22,951

22,820

L2242651.UP.FTS.B,

11.78%,

12/13/26

...

13,861

13,745

L2239830.UP.FTS.B,

11.79%,

12/13/26

...

9,667

9,584

L2241857.UP.FTS.B,

11.98%,

12/13/26

...

11,082

10,988

L2242098.UP.FTS.B,

12.31%,

12/13/26

...

6,476

6,421

L2242668.UP.FTS.B,

12.46%,

12/13/26

...

20,358

20,187

L2241756.UP.FTS.B,

12.69%,

12/13/26

...

5,092

5,049

L2241856.UP.FTS.B,

13.04%,

12/13/26

...

13,857

13,741

L2242486.UP.FTS.B,

13.76%,

12/13/26

...

3,525

3,496

FW2241307.UP.FTS.B,

13.77%,

12/13/26

.

2,783

2,760

L2241825.UP.FTS.B,

13.8%,

12/13/26

....

27,834

27,601

L2242202.UP.FTS.B,

14.09%,

12/13/26

...

15,410

15,281

L2239758.UP.FTS.B,

14.15%,

12/13/26

...

10,676

10,587

L2241610.UP.FTS.B,

15.37%,

12/13/26

...

6,979

6,893

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2239771.UP.FTS.B,

15.55%,

12/13/26

...

$

25,134

$

24,822

FW2241807.UP.FTS.B,

16.84%,

12/13/26

.

9,310

9,194

L2242447.UP.FTS.B,

16.94%,

12/13/26

...

5,133

5,055

L2242066.UP.FTS.B,

17.12%,

12/13/26

...

9,335

9,194

L2241045.UP.FTS.B,

17.22%,

12/13/26

...

7,937

7,838

L2242791.UP.FTS.B,

17.38%,

12/13/26

...

14,010

13,797

L2241989.UP.FTS.B,

17.5%,

12/13/26

....

2,429

2,399

L2241897.UP.FTS.B,

17.92%,

12/13/26

...

4,207

4,155

L2242575.UP.FTS.B,

18.06%,

12/13/26

...

7,013

6,926

L2242430.UP.FTS.B,

18.29%,

12/13/26

...

16,839

16,583

L2242547.UP.FTS.B,

18.45%,

12/13/26

...

4,192

4,131

L2242119.UP.FTS.B,

18.59%,

12/13/26

...

4,212

4,160

L2242638.UP.FTS.B,

19.38%,

12/13/26

...

10,810

693

L2242212.UP.FTS.B,

19.99%,

12/13/26

...

3,274

3,240

L2241910.UP.FTS.B,

20.19%,

12/13/26

...

19,227

11,036

L2241971.UP.FTS.B,

20.32%,

12/13/26

...

2,816

2,781

L2242450.UP.FTS.B,

20.97%,

12/13/26

...

5,841

5,780

FW2241711.UP.FTS.B,

21.36%,

12/13/26

.

12,225

12,100

L2234521.UP.FTS.B,

21.55%,

12/13/26

...

8,426

8,338

L2238725.UP.FTS.B,

21.75%,

12/13/26

...

4,806

1,340

FW2242024.UP.FTS.B,

21.89%,

12/13/26

.

1,789

1,767

L2230478.UP.FTS.B,

21.97%,

12/13/26

...

7,064

6,959

L2242489.UP.FTS.B,

22.19%,

12/13/26

...

20,434

20,224

L2233875.UP.FTS.B,

22.25%,

12/13/26

...

25,425

25,165

L2241640.UP.FTS.B,

22.44%,

12/13/26

...

2,826

2,797

L2241096.UP.FTS.B,

22.49%,

12/13/26

...

5,689

5,585

L2242587.UP.FTS.B,

22.84%,

12/13/26

...

6,363

6,295

L2241949.UP.FTS.B,

22.97%,

12/13/26

...

4,677

4,627

FW2241860.UP.FTS.B,

23.21%,

12/13/26

.

5,659

5,601

L2242742.UP.FTS.B,

23.45%,

12/13/26

...

1,926

539

L2232043.UP.FTS.B,

23.76%,

12/13/26

...

5,192

5,139

L2242200.UP.FTS.B,

24.08%,

12/13/26

...

5,478

5,422

FW2241799.UP.FTS.B,

24.1%,

12/13/26

..

4,962

354

L2241503.UP.FTS.B,

24.24%,

12/13/26

...

2,834

2,805

FW2239073.UP.FTS.B,

24.34%,

12/13/26

.

7,634

4,548

L2241600.UP.FTS.B,

24.51%,

12/13/26

...

3,220

3,169

L2241958.UP.FTS.B,

24.65%,

12/13/26

...

703

691

L2241657.UP.FTS.B,

24.98%,

12/13/26

...

3,784

3,745

L2242478.UP.FTS.B,

25.01%,

12/13/26

...

2,088

2,066

L2241647.UP.FTS.B,

25.19%,

12/13/26

...

1,608

1,592

L2242322.UP.FTS.B,

25.22%,

12/13/26

...

917

906

L2242383.UP.FTS.B,

25.22%,

12/13/26

...

8,515

8,385

L2242784.UP.FTS.B,

25.23%,

12/13/26

...

5,488

5,431

L2241809.UP.FTS.B,

25.24%,

12/13/26

...

6,826

1,979

FW2241952.UP.FTS.B,

25.3%,

12/13/26

..

11,355

11,238

L2242418.UP.FTS.B,

25.33%,

12/13/26

...

9,259

9,150

L2241994.UP.FTS.B,

25.4%,

12/13/26

....

1,690

1,663

L2242162.UP.FTS.B,

25.7%,

12/13/26

....

1,610

1,593

L2241420.UP.FTS.B,

25.73%,

12/13/26

...

5,113

5,060

FW2242493.UP.FTS.B,

26.46%,

12/13/26

.

1,891

1,871

FW2241855.UP.FTS.B,

26.58%,

12/13/26

.

2,560

2,533

L2240058.UP.FTS.B,

26.7%,

12/13/26

....

7,775

7,695

FW2241764.UP.FTS.B,

27.11%,

12/13/26

.

4,459

4,413

FW2242232.UP.FTS.B,

27.33%,

12/13/26

.

3,322

3,287

FW2242379.UP.FTS.B,

28.85%,

12/13/26

.

4,756

4,707

FW2241616.UP.FTS.B,

29.08%,

12/13/26

.

5,600

64

FW2241999.UP.FTS.B,

29.1%,

12/13/26

..

2,379

2,354

FW2242624.UP.FTS.B,

29.36%,

12/13/26

.

8,832

8,743

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-39

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2211495.UP.FTS.B,

29.38%,

12/13/26

.

$

19,043

$

18,846

FW2241683.UP.FTS.B,

29.38%,

12/13/26

.

1,503

1,476

FW2241828.UP.FTS.B,

29.64%,

12/13/26

.

9,521

9,423

FW2242691.UP.FTS.B,

30.2%,

12/13/26

..

23,831

23,584

FW2242593.UP.FTS.B,

30.22%,

12/13/26

.

4,458

1,299

FW2231506.UP.FTS.B,

30.63%,

12/13/26

.

42,522

42,080

FW2241145.UP.FTS.B,

30.66%,

12/13/26

.

2,980

1,786

FW2242390.UP.FTS.B,

30.76%,

12/13/26

.

10,257

3,012

FW2240660.UP.FTS.B,

30.84%,

12/13/26

.

4,387

4,341

FW2240706.UP.FTS.B,

30.86%,

12/13/26

.

12,267

12,129

FW2242733.UP.FTS.B,

30.97%,

12/13/26

.

1,422

1,400

FW2242045.UP.FTS.B,

30.98%,

12/13/26

.

2,289

2,266

FW2242580.UP.FTS.B,

31.01%,

12/13/26

.

1,049

1,038

FW2242256.UP.FTS.B,

31.07%,

12/13/26

.

1,049

1,038

FW2241302.UP.FTS.B,

31.08%,

12/13/26

.

3,127

458

FW2241745.UP.FTS.B,

31.13%,

12/13/26

.

5,111

5,055

FW2242085.UP.FTS.B,

31.21%,

12/13/26

.

4,949

4,897

FW2241988.UP.FTS.B,

31.24%,

12/13/26

.

2,101

2,079

FW2239509.UP.FTS.B,

31.82%,

12/13/26

.

5,724

(64)

FW2241624.UP.FTS.B,

31.84%,

12/13/26

.

4,365

4,318

L2465688.UP.FTS.B,

5.13%,

1/19/27

....

2,778

2,771

FW2465936.UP.FTS.B,

5.53%,

1/19/27

...

41,698

41,591

L2465861.UP.FTS.B,

5.83%,

1/19/27

....

24,105

24,044

L2464930.UP.FTS.B,

5.87%,

1/19/27

....

5,405

5,388

L2465582.UP.FTS.B,

5.92%,

1/19/27

....

3,524

3,516

FW2451492.UP.FTS.B,

6.07%,

1/19/27

...

46,378

46,261

FW2466147.UP.FTS.B,

6.13%,

1/19/27

...

7,031

7,013

L2465889.UP.FTS.B,

6.5%,

1/19/27

.....

5,570

5,556

L2464484.UP.FTS.B,

6.65%,

1/19/27

....

4,141

4,128

FW2466269.UP.FTS.B,

6.87%,

1/19/27

...

4,645

4,633

L2465776.UP.FTS.B,

7.08%,

1/19/27

....

13,939

13,905

L2466395.UP.FTS.B,

7.13%,

1/19/27

....

9,944

9,899

L2444934.UP.FTS.B,

7.15%,

1/19/27

....

4,180

4,161

FW2465536.UP.FTS.B,

7.64%,

1/19/27

...

18,604

18,521

L2465750.UP.FTS.B,

7.8%,

1/19/27

.....

5,932

5,900

L2465633.UP.FTS.B,

8.28%,

1/19/27

....

1,863

1,854

L2465717.UP.FTS.B,

8.6%,

1/19/27

.....

3,727

3,711

L2464080.UP.FTS.B,

8.9%,

1/19/27

.....

5,594

5,569

FW2464781.UP.FTS.B,

9.13%,

1/19/27

...

8,860

8,821

FW2465681.UP.FTS.B,

9.16%,

1/19/27

...

9,872

9,829

L2464902.UP.FTS.B,

9.21%,

1/19/27

....

8,516

8,022

L2465458.UP.FTS.B,

9.24%,

1/19/27

....

3,547

3,530

L2465589.UP.FTS.B,

9.29%,

1/19/27

....

6,061

6,034

L2464368.UP.FTS.B,

9.62%,

1/19/27

....

3,562

3,356

L2466129.UP.FTS.B,

9.84%,

1/19/27

....

18,676

18,551

L2465666.UP.FTS.B,

10.14%,

1/19/27

....

2,336

2,326

FW2464664.UP.FTS.B,

10.42%,

1/19/27

..

7,478

7,428

FW2465040.UP.FTS.B,

10.63%,

1/19/27

..

14,774

14,676

L2463372.UP.FTS.B,

11.09%,

1/19/27

....

4,679

4,648

L2465414.UP.FTS.B,

11.1%,

1/19/27

.....

5,615

5,578

L2465929.UP.FTS.B,

11.14%,

1/19/27

....

14,038

13,945

L2464668.UP.FTS.B,

11.62%,

1/19/27

....

7,309

1,009

L2466291.UP.FTS.B,

11.97%,

1/19/27

....

47,007

46,720

FW2466175.UP.FTS.B,

12.09%,

1/19/27

..

5,624

5,587

L2460937.UP.FTS.B,

12.4%,

1/19/27

....

7,502

7,453

FW2465871.UP.FTS.B,

12.64%,

1/19/27

..

8,443

8,388

L2465877.UP.FTS.B,

12.74%,

1/19/27

....

2,408

613

FW2465212.UP.FTS.B,

14.46%,

1/19/27

..

20,313

20,114

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2466145.UP.FTS.B,

14.56%,

1/19/27

....

$

14,115

$

14,024

L2465634.UP.FTS.B,

14.68%,

1/19/27

....

9,977

9,912

FW2465337.UP.FTS.B,

15.21%,

1/19/27

..

4,710

4,680

FW2462910.UP.FTS.B,

15.73%,

1/19/27

..

23,567

23,417

L2465986.UP.FTS.B,

15.77%,

1/19/27

....

1,414

1,400

L2464766.UP.FTS.B,

16.43%,

1/19/27

....

4,711

4,665

FW2466368.UP.FTS.B,

16.6%,

1/19/27

...

3,304

3,283

FW2464890.UP.FTS.B,

16.94%,

1/19/27

..

5,455

5,397

L2464884.UP.FTS.B,

17.8%,

1/19/27

....

3,310

3,278

L2466373.UP.FTS.B,

18.71%,

1/19/27

....

9,468

9,409

L2465805.UP.FTS.B,

18.87%,

1/19/27

....

20,646

20,448

L2466099.UP.FTS.B,

19.62%,

1/19/27

....

8,533

8,431

L2465928.UP.FTS.B,

20.32%,

1/19/27

....

2,847

2,813

L2465048.UP.FTS.B,

20.41%,

1/19/27

....

23,727

23,444

L2466185.UP.FTS.B,

20.91%,

1/19/27

....

3,324

3,292

L2464801.UP.FTS.B,

21.24%,

1/19/27

....

4,751

4,694

L2456627.UP.FTS.B,

21.31%,

1/19/27

....

14,254

14,084

L2464534.UP.FTS.B,

21.46%,

1/19/27

....

2,066

2,050

L2466007.UP.FTS.B,

21.7%,

1/19/27

....

4,373

4,321

L2465669.UP.FTS.B,

21.93%,

1/19/27

....

15,197

15,088

L2465393.UP.FTS.B,

22.66%,

1/19/27

....

19,039

18,905

L2465191.UP.FTS.B,

22.76%,

1/19/27

....

3,808

3,781

L2465105.UP.FTS.B,

22.96%,

1/19/27

....

44,284

43,971

L2465595.UP.FTS.B,

23.08%,

1/19/27

....

7,620

7,566

FW2466202.UP.FTS.B,

23.59%,

1/19/27

..

2,864

2,843

L2464129.UP.FTS.B,

23.98%,

1/19/27

....

15,538

15,428

L2458881.UP.FTS.B,

24.14%,

1/19/27

....

4,240

4,207

L2464954.UP.FTS.B,

24.32%,

1/19/27

....

1,908

1,895

L2465923.UP.FTS.B,

24.48%,

1/19/27

....

39,566

39,128

FW2464179.UP.FTS.B,

24.55%,

1/19/27

..

4,400

313

L2465587.UP.FTS.B,

24.59%,

1/19/27

....

12,788

12,698

L2466086.UP.FTS.B,

25.1%,

1/19/27

....

3,180

3,020

FW2465954.UP.FTS.B,

25.21%,

1/19/27

..

2,865

2,845

L2465421.UP.FTS.B,

25.22%,

1/19/27

....

8,590

8,530

L2465179.UP.FTS.B,

25.25%,

1/19/27

....

1,242

1,227

L2464262.UP.FTS.B,

25.31%,

1/19/27

....

2,141

629

L2465018.UP.FTS.B,

25.32%,

1/19/27

....

2,006

1,992

L2464786.UP.FTS.B,

25.33%,

1/19/27

....

1,318

1,302

L2464921.UP.FTS.B,

25.36%,

1/19/27

....

1,452

1,372

L2465643.UP.FTS.B,

25.46%,

1/19/27

....

11,082

11,004

FW2465199.UP.FTS.B,

25.54%,

1/19/27

..

4,013

3,985

L2459695.UP.FTS.B,

25.62%,

1/19/27

....

9,257

8,791

FW2465642.UP.FTS.B,

25.73%,

1/19/27

..

4,751

4,716

FW2465696.UP.FTS.B,

25.74%,

1/19/27

..

2,927

2,904

L2459145.UP.FTS.B,

26.05%,

1/19/27

....

2,192

2,166

FW2466211.UP.FTS.B,

26.21%,

1/19/27

..

47,810

47,476

FW2464742.UP.FTS.B,

26.31%,

1/19/27

..

1,435

1,425

FW2465134.UP.FTS.B,

27.03%,

1/19/27

..

3,439

521

L2466112.UP.FTS.B,

27.26%,

1/19/27

....

1,400

99

FW2464891.UP.FTS.B,

27.37%,

1/19/27

..

9,428

9,352

FW2465454.UP.FTS.B,

27.49%,

1/19/27

..

3,400

239

FW2464901.UP.FTS.B,

27.8%,

1/19/27

...

5,748

5,708

FW2464391.UP.FTS.B,

27.86%,

1/19/27

..

1,437

1,427

L2465641.UP.FTS.B,

27.88%,

1/19/27

....

1,820

1,808

FW2466130.UP.FTS.B,

28.33%,

1/19/27

..

2,396

2,380

FW2465915.UP.FTS.B,

28.39%,

1/19/27

..

8,646

2,541

FW2465743.UP.FTS.B,

28.47%,

1/19/27

..

9,537

9,469

FW2465826.UP.FTS.B,

28.67%,

1/19/27

..

4,835

4,592

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-40

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2465882.UP.FTS.B,

28.77%,

1/19/27

..

$

1,439

$

1,422

FW2465234.UP.FTS.B,

28.94%,

1/19/27

..

1,000

69

FW2466218.UP.FTS.B,

29.09%,

1/19/27

..

29,273

27,833

FW2466138.UP.FTS.B,

29.57%,

1/19/27

..

2,903

2,758

FW2465555.UP.FTS.B,

30.12%,

1/19/27

..

1,345

1,336

FW2464452.UP.FTS.B,

30.15%,

1/19/27

..

1,430

1,419

FW2464615.UP.FTS.B,

30.21%,

1/19/27

..

7,812

7,428

FW2465759.UP.FTS.B,

30.48%,

1/19/27

..

5,285

5,248

FW2465374.UP.FTS.B,

30.53%,

1/19/27

..

2,498

2,481

FW2465848.UP.FTS.B,

30.66%,

1/19/27

..

1,922

1,909

FW2465597.UP.FTS.B,

30.68%,

1/19/27

..

2,172

2,154

FW2464665.UP.FTS.B,

30.79%,

1/19/27

..

1,346

1,336

FW2465921.UP.FTS.B,

30.89%,

1/19/27

..

1,248

1,240

FW2465741.UP.FTS.B,

30.94%,

1/19/27

..

1,634

1,623

FW2466073.UP.FTS.B,

30.97%,

1/19/27

..

961

955

FW2464672.UP.FTS.B,

30.98%,

1/19/27

..

1,731

1,719

FW2465572.UP.FTS.B,

30.98%,

1/19/27

..

3,435

3,270

FW2465907.UP.FTS.B,

30.98%,

1/19/27

..

961

955

FW2465118.UP.FTS.B,

31.07%,

1/19/27

..

8,687

8,630

FW2466031.UP.FTS.B,

31.12%,

1/19/27

..

13,474

12,812

FW2465216.UP.FTS.B,

31.14%,

1/19/27

..

1,110

1,101

FW2464833.UP.FTS.B,

31.17%,

1/19/27

..

1,163

1,105

FW2466113.UP.FTS.B,

31.17%,

1/19/27

..

3,750

3,725

FW2465110.UP.FTS.B,

31.18%,

1/19/27

..

10,465

9,943

FW2464670.UP.FTS.B,

31.19%,

1/19/27

..

2,181

2,163

FW2464667.UP.FTS.B,

31.59%,

1/19/27

..

7,409

7,358

FW2466172.UP.FTS.B,

31.96%,

1/19/27

..

32,047

31,829

FW2466141.UP.FTS.B,

32%,

1/19/27

....

5,967

5,926

L2675293.UP.FTS.B,

5.43%,

2/22/27

....

9,401

9,379

L2675715.UP.FTS.B,

6.52%,

2/22/27

....

9,427

9,404

FW2676020.UP.FTS.B,

6.82%,

2/22/27

...

7,167

7,150

FW2676337.UP.FTS.B,

8.57%,

2/22/27

...

11,345

11,297

L2675123.UP.FTS.B,

8.62%,

2/22/27

....

6,145

6,131

FW2675837.UP.FTS.B,

9.42%,

2/22/27

...

6,618

6,590

FW2675651.UP.FTS.B,

9.54%,

2/22/27

...

6,437

6,410

FW2675906.UP.FTS.B,

9.67%,

2/22/27

...

47,340

47,141

FW2675315.UP.FTS.B,

9.86%,

2/22/27

...

28,253

28,073

L2676110.UP.FTS.B,

9.95%,

2/22/27

.....

18,637

18,556

FW2676315.UP.FTS.B,

10.29%,

2/22/27

..

5,212

5,179

FW2675769.UP.FTS.B,

11.04%,

2/22/27

..

32,250

32,049

FW2675566.UP.FTS.B,

11.18%,

2/22/27

..

14,230

14,142

FW2675417.UP.FTS.B,

12.04%,

2/22/27

..

8,073

8,023

L2675868.UP.FTS.B,

12.42%,

2/22/27

....

14,143

14,051

FW2675303.UP.FTS.B,

12.76%,

2/22/27

..

14,270

14,190

L2675722.UP.FTS.B,

13.92%,

2/22/27

....

2,856

2,838

L2676179.UP.FTS.B,

13.92%,

2/22/27

....

14,280

14,191

L2675483.UP.FTS.B,

14.22%,

2/22/27

....

4,381

4,353

FW2676429.UP.FTS.B,

14.76%,

2/22/27

..

19,917

19,792

L2676222.UP.FTS.B,

14.9%,

2/22/27

....

1,620

1,610

L2675701.UP.FTS.B,

15.05%,

2/22/27

....

6,640

6,597

FW2676278.UP.FTS.B,

15.49%,

2/22/27

..

5,151

5,104

FW2675787.UP.FTS.B,

15.6%,

2/22/27

...

9,243

9,158

FW2676119.UP.FTS.B,

15.87%,

2/22/27

..

4,294

4,255

FW2674729.UP.FTS.B,

15.98%,

2/22/27

..

4,581

4,552

FW2675367.UP.FTS.B,

16.08%,

2/22/27

..

9,545

9,458

FW2675671.UP.FTS.B,

16.46%,

2/22/27

..

22,301

22,085

L2675286.UP.FTS.B,

16.53%,

2/22/27

....

15,059

14,920

FW2676101.UP.FTS.B,

16.63%,

2/22/27

..

10,410

10,314

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2676275.UP.FTS.B,

16.64%,

2/22/27

..

$

20,631

$

20,442

FW2673151.UP.FTS.B,

16.69%,

2/22/27

..

4,776

4,732

FW2675878.UP.FTS.B,

16.87%,

2/22/27

..

4,258

4,230

L2675388.UP.FTS.B,

17.29%,

2/22/27

....

45,785

45,365

L2676056.UP.FTS.B,

17.4%,

2/22/27

....

3,824

3,789

FW2675427.UP.FTS.B,

17.47%,

2/22/27

..

21,876

20,650

FW2675873.UP.FTS.B,

17.83%,

2/22/27

..

6,548

6,503

L2675381.UP.FTS.B,

18.91%,

2/22/27

....

14,323

14,189

L2675889.UP.FTS.B,

18.95%,

2/22/27

....

47,880

47,439

FW2675506.UP.FTS.B,

19.13%,

2/22/27

..

10,426

10,309

FW2675598.UP.FTS.B,

19.23%,

2/22/27

..

5,747

5,683

L2676048.UP.FTS.B,

19.28%,

2/22/27

....

34,487

34,099

FW2675562.UP.FTS.B,

19.58%,

2/22/27

..

5,175

5,117

FW2676135.UP.FTS.B,

19.68%,

2/22/27

..

42,032

39,674

FW2675827.UP.FTS.B,

19.75%,

2/22/27

..

4,121

4,083

FW2675725.UP.FTS.B,

19.97%,

2/22/27

..

5,738

5,685

L2675775.UP.FTS.B,

20.06%,

2/22/27

....

9,588

9,480

FW2676391.UP.FTS.B,

20.15%,

2/22/27

..

5,185

5,133

L2675553.UP.FTS.B,

20.26%,

2/22/27

....

969

915

L2676153.UP.FTS.B,

20.37%,

2/22/27

....

4,795

4,741

L2635721.UP.FTS.B,

20.47%,

2/22/27

....

9,592

9,484

FW2675953.UP.FTS.B,

20.7%,

2/22/27

...

19,956

19,829

FW2675768.UP.FTS.B,

20.93%,

2/22/27

..

18,966

18,731

FW2674747.UP.FTS.B,

21.11%,

2/22/27

..

6,718

6,642

FW2676447.UP.FTS.B,

21.12%,

2/22/27

..

7,679

7,608

L2675752.UP.FTS.B,

21.22%,

2/22/27

....

3,233

918

L2676182.UP.FTS.B,

21.37%,

2/22/27

....

5,582

5,501

FW2675431.UP.FTS.B,

21.46%,

2/22/27

..

3,065

3,030

L2675263.UP.FTS.B,

21.9%,

2/22/27

....

15,274

15,168

L2675531.UP.FTS.B,

21.9%,

2/22/27

....

15,370

15,197

L2675653.UP.FTS.B,

22.41%,

2/22/27

....

4,315

4,281

L2675496.UP.FTS.B,

22.58%,

2/22/27

....

5,768

5,728

FW2674944.UP.FTS.B,

22.84%,

2/22/27

..

8,656

8,595

FW2675593.UP.FTS.B,

22.9%,

2/22/27

...

5,368

1,525

FW2676120.UP.FTS.B,

22.93%,

2/22/27

..

7,101

7,031

FW2675190.UP.FTS.B,

23.05%,

2/22/27

..

5,771

5,730

FW2675530.UP.FTS.B,

23.25%,

2/22/27

..

2,886

2,866

FW2675348.UP.FTS.B,

23.48%,

2/22/27

..

14,981

14,246

L2675554.UP.FTS.B,

23.55%,

2/22/27

....

9,622

9,555

L2676113.UP.FTS.B,

24.05%,

2/22/27

....

19,254

19,119

FW2675485.UP.FTS.B,

24.08%,

2/22/27

..

4,236

4,206

FW2675214.UP.FTS.B,

24.18%,

2/22/27

..

4,237

4,207

L2674902.UP.FTS.B,

24.23%,

2/22/27

....

1,925

1,841

FW2676351.UP.FTS.B,

24.32%,

2/22/27

..

5,296

5,259

FW2676247.UP.FTS.B,

24.33%,

2/22/27

..

1,178

347

FW2675997.UP.FTS.B,

24.49%,

2/22/27

..

3,179

3,157

FW2675911.UP.FTS.B,

24.61%,

2/22/27

..

2,890

2,869

L2674079.UP.FTS.B,

24.8%,

2/22/27

....

4,466

4,331

L2675434.UP.FTS.B,

25.07%,

2/22/27

....

2,313

2,297

FW2676151.UP.FTS.B,

25.12%,

2/22/27

..

1,050

1,042

L2676160.UP.FTS.B,

25.17%,

2/22/27

....

11,372

11,292

FW2676004.UP.FTS.B,

25.24%,

2/22/27

..

8,850

8,787

FW2675924.UP.FTS.B,

25.27%,

2/22/27

..

2,035

2,016

FW2676248.UP.FTS.B,

25.38%,

2/22/27

..

3,181

3,159

L2676002.UP.FTS.B,

25.39%,

2/22/27

....

11,568

11,486

FW2676274.UP.FTS.B,

25.4%,

2/22/27

...

24,678

23,466

L2676213.UP.FTS.B,

25.44%,

2/22/27

....

2,517

2,496

L2675249.UP.FTS.B,

25.47%,

2/22/27

....

2,158

2,052

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-41

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2676003.UP.FTS.B,

25.6%,

2/22/27

...

$

2,121

$

2,106

L2676206.UP.FTS.B,

25.75%,

2/22/27

....

4,328

4,279

L2652870.UP.FTS.B,

25.83%,

2/22/27

....

3,742

3,594

FW2675099.UP.FTS.B,

26.05%,

2/22/27

..

3,661

3,635

FW2675282.UP.FTS.B,

26.25%,

2/22/27

..

48,229

47,888

FW2676394.UP.FTS.B,

26.4%,

2/22/27

...

5,690

5,645

FW2675377.UP.FTS.B,

26.49%,

2/22/27

..

1,737

1,725

FW2674903.UP.FTS.B,

26.61%,

2/22/27

..

4,054

4,025

FW2675884.UP.FTS.B,

26.71%,

2/22/27

..

5,446

5,234

FW2676130.UP.FTS.B,

26.88%,

2/22/27

..

5,695

5,655

FW2675610.UP.FTS.B,

26.91%,

2/22/27

..

6,275

6,230

L2676015.UP.FTS.B,

26.95%,

2/22/27

....

957

945

FW2675720.UP.FTS.B,

27.06%,

2/22/27

..

3,186

3,163

FW2675330.UP.FTS.B,

27.13%,

2/22/27

..

3,186

3,164

FW2676331.UP.FTS.B,

27.38%,

2/22/27

..

7,436

7,383

L2675639.UP.FTS.B,

27.5%,

2/22/27

....

1,519

1,507

FW2675561.UP.FTS.B,

27.52%,

2/22/27

..

6,954

6,905

FW2675681.UP.FTS.B,

27.55%,

2/22/27

..

9,536

9,460

FW2675991.UP.FTS.B,

27.58%,

2/22/27

..

2,415

2,398

FW2675109.UP.FTS.B,

27.79%,

2/22/27

..

5,887

5,599

FW2676194.UP.FTS.B,

28.21%,

2/22/27

..

2,416

2,399

FW2676090.UP.FTS.B,

28.38%,

2/22/27

..

19,332

19,194

FW2675967.UP.FTS.B,

29.34%,

2/22/27

..

1,645

1,626

FW2676071.UP.FTS.B,

30.36%,

2/22/27

..

2,130

2,115

FW2675198.UP.FTS.B,

30.64%,

2/22/27

..

6,754

6,703

FW2676076.UP.FTS.B,

30.66%,

2/22/27

..

1,550

1,538

FW2675592.UP.FTS.B,

30.67%,

2/22/27

..

4,068

4,038

FW2674184.UP.FTS.B,

30.72%,

2/22/27

..

5,900

5,849

FW2675098.UP.FTS.B,

30.74%,

2/22/27

..

2,558

765

FW2675344.UP.FTS.B,

30.75%,

2/22/27

..

3,196

3,173

FW2675958.UP.FTS.B,

30.93%,

2/22/27

..

1,356

1,341

FW2676378.UP.FTS.B,

30.97%,

2/22/27

..

1,164

1,155

FW2676124.UP.FTS.B,

31.02%,

2/22/27

..

21,371

20,321

FW2674790.UP.FTS.B,

31.08%,

2/22/27

..

1,074

1,020

FW2675297.UP.FTS.B,

31.1%,

2/22/27

...

969

962

FW2676100.UP.FTS.B,

31.11%,

2/22/27

..

1,734

1,714

FW2675440.UP.FTS.B,

31.15%,

2/22/27

..

3,391

3,367

FW2676178.UP.FTS.B,

31.16%,

2/22/27

..

4,943

4,886

FW2676365.UP.FTS.B,

31.2%,

2/22/27

...

17,117

16,256

FW2676390.UP.FTS.B,

31.24%,

2/22/27

..

2,035

2,020

FW2670166.UP.FTS.B,

31.29%,

2/22/27

..

2,420

2,403

FW2675516.UP.FTS.B,

31.31%,

2/22/27

..

3,198

3,175

FW2676168.UP.FTS.B,

31.41%,

2/22/27

..

3,392

3,367

FW2675064.UP.FTS.B,

31.47%,

2/22/27

..

2,907

2,886

FW2675477.UP.FTS.B,

31.5%,

2/22/27

...

27,853

27,648

FW2675191.UP.FTS.B,

31.52%,

2/22/27

..

4,589

4,359

FW2676065.UP.FTS.B,

31.64%,

2/22/27

..

9,373

8,904

FW2675468.UP.FTS.B,

31.91%,

2/22/27

..

7,465

7,411

FW2675325.UP.FTS.B,

31.93%,

2/22/27

..

8,225

1,275

FW2676216.UP.FTS.B,

31.95%,

2/22/27

..

5,817

5,775

FW2676191.UP.FTS.B,

31.98%,

2/22/27

..

7,326

6,966

FW2675534.UP.FTS.B,

32.24%,

2/22/27

..

8,631

8,568

L2980992.UP.FTS.B,

5.74%,

4/20/27

....

7,769

7,764

L2982343.UP.FTS.B,

6.55%,

4/20/27

....

14,546

14,531

L2981618.UP.FTS.B,

6.67%,

4/20/27

....

12,633

12,621

L2982277.UP.FTS.B,

7.61%,

4/20/27

....

8,752

8,744

L2981547.UP.FTS.B,

8.03%,

4/20/27

....

11,673

11,647

L2982631.UP.FTS.B,

11.15%,

4/20/27

....

6,230

6,207

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2981847.UP.FTS.B,

12.88%,

4/20/27

....

$

9,467

$

9,446

FW2982593.UP.FTS.B,

14.46%,

4/20/27

..

7,829

7,813

FW2981800.UP.FTS.B,

15.54%,

4/20/27

..

19,588

19,551

FW2982570.UP.FTS.B,

15.54%,

4/20/27

..

9,483

9,448

L2981792.UP.FTS.B,

16.02%,

4/20/27

....

12,518

12,478

FW2980031.UP.FTS.B,

17.09%,

4/20/27

..

41,591

41,516

L2981666.UP.FTS.B,

17.74%,

4/20/27

....

48,949

48,686

L2982362.UP.FTS.B,

19.25%,

4/20/27

....

2,156

2,148

L2981534.UP.FTS.B,

19.74%,

4/20/27

....

11,322

11,287

FW2982412.UP.FTS.B,

19.87%,

4/20/27

..

11,762

11,683

FW2980149.UP.FTS.B,

20.02%,

4/20/27

..

5,392

5,374

FW2982427.UP.FTS.B,

20.52%,

4/20/27

..

23,868

23,792

L2982556.UP.FTS.B,

21.77%,

4/20/27

....

5,299

5,280

L2982345.UP.FTS.B,

23.66%,

4/20/27

....

12,769

12,714

FW2981941.UP.FTS.B,

25.22%,

4/20/27

..

2,478

2,355

FW2980976.UP.FTS.B,

25.24%,

4/20/27

..

14,407

14,344

L2982002.UP.FTS.B,

25.37%,

4/20/27

....

6,587

6,565

L2982533.UP.FTS.B,

25.49%,

4/20/27

....

2,065

2,058

FW2981812.UP.FTS.B,

25.87%,

4/20/27

..

3,147

3,137

L2981818.UP.FTS.B,

25.89%,

4/20/27

....

9,538

9,512

L2981438.UP.FTS.B,

25.94%,

4/20/27

....

2,950

2,941

FW2981809.UP.FTS.B,

26.39%,

4/20/27

..

4,432

4,419

FW2981690.UP.FTS.B,

26.56%,

4/20/27

..

14,951

14,905

L2982272.UP.FTS.B,

26.68%,

4/20/27

....

5,516

5,499

FW2982505.UP.FTS.B,

26.8%,

4/20/27

...

5,015

4,980

FW2982630.UP.FTS.B,

27.01%,

4/20/27

..

3,247

3,237

FW2973701.UP.FTS.B,

27.5%,

4/20/27

...

13,285

13,245

FW2982117.UP.FTS.B,

27.79%,

4/20/27

..

2,166

2,159

FW2982476.UP.FTS.B,

28.13%,

4/20/27

..

29,532

29,444

L2982235.UP.FTS.B,

28.2%,

4/20/27

....

3,500

3,344

FW2982596.UP.FTS.B,

28.27%,

4/20/27

..

1,477

1,472

FW2981790.UP.FTS.B,

29.08%,

4/20/27

..

2,462

2,455

FW2982246.UP.FTS.B,

30.31%,

4/20/27

..

2,580

2,461

FW2982248.UP.FTS.B,

30.44%,

4/20/27

..

4,906

4,886

FW2980005.UP.FTS.B,

30.65%,

4/20/27

..

1,469

1,463

FW2982470.UP.FTS.B,

30.66%,

4/20/27

..

2,267

2,261

FW2981984.UP.FTS.B,

30.99%,

4/20/27

..

8,674

8,650

FW2982057.UP.FTS.B,

31.09%,

4/20/27

..

1,098

1,050

FW2982099.UP.FTS.B,

31.11%,

4/20/27

..

3,435

3,421

FW2981979.UP.FTS.B,

31.12%,

4/20/27

..

2,070

2,064

FW2982709.UP.FTS.B,

31.22%,

4/20/27

..

2,779

2,651

FW2981459.UP.FTS.B,

31.69%,

4/20/27

..

9,268

9,244

FW2981291.UP.FTS.B,

31.84%,

4/20/27

..

5,522

5,507

FW2242705.UP.FTS.B,

27.05%,

5/13/27

..

1,429

1,412

FW2241542.UP.FTS.B,

28.48%,

5/13/27

..

2,877

2,845

FW2241443.UP.FTS.B,

29.46%,

5/13/27

..

2,879

1,721

FW2242189.UP.FTS.B,

31.76%,

5/13/27

..

4,713

4,669

L2464545.UP.FTS.B,

18.49%,

6/19/27

....

19,566

18,468

FW2675527.UP.FTS.B,

21.31%,

7/22/27

..

9,697

9,615

FW2675392.UP.FTS.B,

28.93%,

7/22/27

..

1,950

1,936

4,949,254

Total

Marketplace

Loans

(Cost

$9,694,332)

.....

$9,237,918

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Strategic

Income

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-42

At

June

30,

2022,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1

(

e

). 

At

June

30,

2022,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1

(

e

). 

At

June

30,

2022,

the

Fund

had

the

following credit

default

swap

contracts outstanding.

See

Note

1

(

e

). 

Futures

Contracts

Description

Type

Number

of

Contracts

Notional

Amount

*

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Interest

rate

contracts

U.S.

Treasury

10

Year

Notes

....................

Short

37

$

4,385,656

9/21/22

$

69,431

U.S.

Treasury

2

Year

Notes

.....................

Long

50

10,500,781

9/30/22

(67,457)

U.S.

Treasury

5

Year

Notes

.....................

Long

122

13,694,500

9/30/22

(116,412)

U.S.

Treasury

Long

Bonds

.....................

Short

22

3,049,750

9/21/22

23,406

U.S.

Treasury

Ultra

Bonds

......................

Long

5

771,719

9/21/22

(17,038)

Total

Futures

Contracts

......................................................................

$(108,070)

*

As

of

period

end.

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

Euro

.............

JPHQ

Buy

1,355,000

1,451,094

7/18/22

$

—

$

(29,936)

Euro

.............

JPHQ

Sell

4,472,234

4,887,612

7/18/22

197,021

—

South

Korean

Won

..

JPHQ

Buy

950,000,000

766,691

7/26/22

—

(29,389)

South

Korean

Won

..

JPHQ

Sell

950,000,000

748,267

7/26/22

10,966

—

Columbian

Peso

....

JPHQ

Sell

6,000,000,000

1,489,093

9/01/22

58,890

—

Total

Forward

Exchange

Contracts

...................................................

$266,877

$(59,325)

Net

unrealized

appreciation

(depreciation)

............................................

$207,551

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

Credit

Default

Swap

Contracts

Description

Periodic

Payment

Rate

Received

(Paid)

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

(a)

Value

Unamortized

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Rating

(b)

Centrally

Cleared

Swap

Contracts

Contracts

to

Buy

Protection

(c)

Traded

Index

CDX.NA.EM.37

.

(1.00)%

Quarterly

6/20/27

1,150,000

$

115,109

$

107,429

$

7,680

CDX.NA.HY.38

.

(5.00)%

Quarterly

6/20/27

4,800,000

132,133

(212,894)

345,027

Total

Centrally

Cleared

Swap

Contracts

.....................................

$247,242

$(105,465)

$352,707

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-43

See

Note 11 regarding

other

derivative

information.

See

A

bbreviations

on

page

FSI-

6

7

.

Credit

Default

Swap

Contracts

(continued)

Description

Periodic

Payment

Rate

Received

(Paid)

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

(a)

Value

Unamortized

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Rating

(b)

OTC

Swap

Contracts

Contracts

to

Sell

Protection

(c)(d)

Single

Name

Carnival

Corp.

..

1.00%

Quarterly

CITI

6/20/27

1,800,000

$

(654,390)

$

(324,310)

$

(330,080)

B-

Mexico

Government

Bond

......

1.00%

Quarterly

GSCO

6/20/26

925,000

(16,863)

2,136

(18,999)

BBB

Traded

Index

(e)

BNP

Paribas

Bespoke

Haverhill

Index,

Mezzanine

Tranche

5-10%

4.10%

Quarterly

BNDP

12/20/23

350,000

EUR

(36,075)

—

(36,075)

Non-

Investment

Grade

(e)

Citibank

Bespoke

Kenai

Index,

Equity

Tranche

0-5%

—%

Quarterly

CITI

12/20/23

2,300,000

(1,321,654)

(519,487)

(802,167)

Non-

Investment

Grade

(e)

Citibank

Bespoke

Kona

Index,

Equity

Tranche

0-5%

—%

Quarterly

CITI

12/20/22

1,000,000

(202,338)

(65,134)

(137,204)

Non-

Investment

Grade

(e)

Citibank

Bespoke

Kona

Index,

Mezzanine

Tranche

5-10%

2.42%

Quarterly

CITI

12/20/22

800,000

(12,351)

—

(12,351)

Non-

Investment

Grade

(e)

Citibank

Bespoke

Palm

Beach

Index,

Mezzanine

Tranche

5-10%

1.97%

Quarterly

CITI

12/20/22

1,100,000

(9,860)

—

(9,860)

Non-

Investment

Grade

(e)

Citibank

Bespoke

Rotorua

Index,

Mezzanine

Tranche

5-10%

3.60%

Quarterly

CITI

12/20/23

500,000

(61,224)

—

(61,224)

Non-

Investment

Grade

MCDX.

NA.MAIN.31

.

1.00%

Quarterly

CITI

12/20/23

2,270,000

16,272

6,761

9,511

Investment

Grade

Total

OTC

Swap

Contracts

..............................................

$(2,298,483)

$(900,034)

$(1,398,449)

Total

Credit

Default

Swap

Contracts

....................................

$(2,051,241)

$

(1,005,499)

$(1,045,742)

(a)

In

U.S.

dollars

unless

otherwise

indicated.

For

contracts

to

sell

protection,

the

notional

amount

is

equal

to

the

maximum

potential

amount

of

the

future

payments

and

no

recourse

provisions

have

been

entered

into

in

association

with

the

contracts.

(b)

Based

on

Standard

and

Poor's

(S&P)

Rating

for

single

name

swaps

and

internal

ratings

for

index

swaps.

Internal

ratings

based

on

mapping

into

equivalent

ratings

from

external

vendors.

(c)

Performance

triggers

for

settlement

of

contract

include

default,

bankruptcy

or

restructuring

for

single

name

swaps,

and

failure

to

pay

or

bankruptcy

of

the

underlying

securities

for

traded

index

swaps.

(d)

The

fund

enters

contracts

to

sell

protection

to

create

a

long

credit

position.

(e)

Represents

a

custom

index

comprised

of

a

basket

of

underlying

instruments.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-44

Franklin

Strategic

Income

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$326,314,036

Cost

-

Non-controlled

affiliates

(Note

3e)

........................................................

40,430,383

Value

-

Unaffiliated

issuers

..................................................................

$287,351,961

Value

-

Non-controlled

affiliates

(Note

3e)

.......................................................

35,335,232

Cash

....................................................................................

248,384

Receivables:

Investment

securities

sold

...................................................................

1,025,237

Capital

shares

sold

........................................................................

40,584

Dividends

and

interest

.....................................................................

3,182,291

Deposits

with

brokers

for:

OTC

derivative

contracts

..................................................................

1,990,000

Futures

contracts

........................................................................

158,170

Centrally

cleared

swap

contracts

............................................................

688,238

Variation

margin

on

futures

contracts

...........................................................

53,421

OTC

swap

contracts

(upfront

payments

$25,350)

...................................................

8,897

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

266,877

Unrealized

appreciation

on

OTC

swap

contracts

....................................................

9,511

Deferred

tax

benefit

.........................................................................

135,841

Total

assets

..........................................................................

330,494,644

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

3,102,516

Capital

shares

redeemed

...................................................................

235,326

Management

fees

.........................................................................

150,740

Distribution

fees

..........................................................................

28,651

Trustees'

fees

and

expenses

.................................................................

560

Variation

margin

on

centrally

cleared

swap

contracts

...............................................

206,900

OTC

swap

contracts

(upfront

receipts

$1,298,500)

..................................................

908,931

Unrealized

depreciation

on

OTC

swap

contracts

....................................................

1,407,960

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

59,325

Accrued

expenses

and

other

liabilities

...........................................................

328,078

Total

liabilities

.........................................................................

6,428,987

Net

assets,

at

value

.................................................................

$324,065,657

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$424,351,763

Total

distributable

earnings

(losses)

.............................................................

(100,286,106)

Net

assets,

at

value

.................................................................

$324,065,657

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-45

Franklin

Strategic

Income

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$204,709,933

Shares

outstanding

........................................................................

22,768,150

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$8.99

Class

2:

Net

assets,

at

value

.......................................................................

$77,203,996

Shares

outstanding

........................................................................

8,922,710

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$8.65

Class

4:

Net

assets,

at

value

.......................................................................

$42,151,728

Shares

outstanding

........................................................................

4,720,088

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$8.93

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-46

Franklin

Strategic

Income

VIP

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

........................................................................

$221,433

Non-controlled

affiliates

(Note

3e)

.............................................................

708,137

Interest:

(net

of

foreign

taxes

of

$395)

Unaffiliated

issuers:

Paydown

gain

(loss)

.....................................................................

(412,764)

Paid

in

cash

a

...........................................................................

7,325,167

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

3,749

Non-controlled

affiliates

(Note

3e)

.............................................................

229

Total

investment

income

...................................................................

7,845,951

Expenses:

Management

fees

(Note

3

a

)

...................................................................

1,109,131

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

104,369

    Class

4

................................................................................

81,011

Custodian

fees

(Note

4

)

......................................................................

8,982

Reports

to

shareholders

fees

..................................................................

41,532

Professional

fees

...........................................................................

69,967

Trustees'

fees

and

expenses

..................................................................

2,272

Marketplace

lending

fees

(Note

1

h

)

.............................................................

139,774

Other

....................................................................................

64,090

Total

expenses

.........................................................................

1,621,128

Expense

reductions

(Note

4

)

...............................................................

(2,518)

Expenses

waived/paid

by

affilia

tes

(Note

3e)

...................................................

(125,599)

Net

expenses

.........................................................................

1,493,011

Net

investment

income

................................................................

6,352,940

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

(continued)

for

the

six

months

ended

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FSI-47

Franklin

Strategic

Income

VIP

Fund

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

(net

of

foreign

taxes

of

$12,618)

Unaffiliated

issuers

......................................................................

(12,748,813)

Non-controlled

affiliates

(Note

3e)

...........................................................

(638,600)

Written

options

...........................................................................

(9,317)

Foreign

currency

transactions

................................................................

(17,299)

Forward

exchange

contracts

.................................................................

310,123

Futures

contracts

.........................................................................

1,107,640

Swap

contracts

...........................................................................

212,850

Net

realized

gain

(loss)

..................................................................

(11,783,416)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(36,148,188)

Non-controlled

affiliates

(Note

3e)

...........................................................

(1,205,353)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(1,053)

Written

options

...........................................................................

(36,230)

Forward

exchange

contracts

.................................................................

114,878

Futures

contracts

.........................................................................

212,211

Swap

contracts

...........................................................................

(961,026)

Change

in

deferred

tax

benefit

...............................................................

(173,725)

Change

in

deferred

taxes

on

unrealized

appreciation

...............................................

13,698

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(38,184,788)

Net

realized

and

unrealized

gain

(loss)

............................................................

(49,968,204)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(43,615,264)

a

Includes

amortization

of

premium

and

accretion

of

discount.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-48

Franklin

Strategic

Income

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

*

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$6,352,940

$12,098,516

Net

realized

gain

(loss)

.................................................

(11,783,416)

4,894,990

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(38,184,788)

(8,012,045)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(43,615,264)

8,981,461

Distributions

to

shareholders:

Class

1

.............................................................

(9,367,599)

(8,780,267)

Class

2

.............................................................

(3,440,344)

(3,050,922)

Class

4

.............................................................

(1,764,256)

(1,678,261)

Total

distributions

to

shareholders

..........................................

(14,572,199)

(13,509,450)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

(6,726,498)

(10,251,021)

Class

2

.............................................................

1,234,242

(9,912,221)

Class

4

.............................................................

(720,893)

(718,968)

Total

capital

share

transactions

............................................

(6,213,149)

(20,882,210)

Net

increase

(decrease)

in

net

assets

...................................

(64,400,612)

(25,410,199)

Net

assets:

Beginning

of

period

.....................................................

388,466,269

413,876,468

End

of

period

..........................................................

$324,065,657

$388,466,269

*Includes

the

consolidated

operations

of

FT

Holdings

Corporation

III

from

January

1,

2021

through

April

27,

2021.

Franklin

Templeton

Variable

Insurance

Products

Trust

FSI-49

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

Franklin

Strategic

Income

VIP

Fund

1.

Organization

and

Significant

Accounting

Policies

Franklin

Templeton

Variable

Insurance

Products

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Strategic

Income

VIP

Fund

(Fund)

is

included

in

this

report. Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

At

June

30,

2022,

77.1%

of

the

Fund’s

shares

were

held

through

one

insurance

company.

Investment

activities

of

these

insurance

company

separate

accounts

could

have

a

material

impact

on

the

Fund.

The

Fund

offers

three

classes

of

shares:

Class

1,

Class

2

and

Class

4.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege.

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

and

derivative

financial

instruments

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price

of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities.

Debt

securities

generally

trade

in

the OTC

market

rather

than

on

a

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

Certain

derivative

financial

instruments

are

centrally

cleared

or

trade

in

the

OTC

market.

The

Fund's

pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

fair

value

of

those

instruments.

The

Fund's

net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-50

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day.

Events

can

occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

"market

level

fair

value").

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period. 

c.

Securities

Purchased

on

a

TBA

Basis

The

Fund

purchases

securities

on

a

to-be-announced

(TBA)

basis,

with

payment

and

delivery

scheduled

for

a

future

date.

These

transactions

are

subject

to

market

fluctuations

and

are

subject

to

the

risk

that

the

value

at

delivery

may

be

more

or

less

than

the

trade

date

purchase

price.

d.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-51

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the

Fund,

and/or

a

joint

repurchase

agreement

in

the

Statement

of

Assets

and

Liabilities.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to

any

cash

collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

At

June

30,

2022,

the

Fund

had

no

securities

on

loan.

e.

Derivative

Financial

Instruments

The

Fund invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statement

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statement

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

The

Fund

attempts

to

reduce its

exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the Fund

include

failure

of

the

Fund

to

maintain

certain

net

asset

levels

and/or

limit

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Fund

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

or

initial

margin

requirements

are

set

by

the

broker

or

exchange

clearing

house

for

exchange

traded

and

centrally

cleared

derivatives.

Initial

margin

deposited

is

held

at

the

exchange

and

can

be

in

the

form

of

cash

and/or

securities.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of

agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund

for

OTC

derivatives,

if

any,

is

held

in

segregated

accounts

with

the

Fund's

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Fund's

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

The

Fund

entered

into

exchange

traded

futures

contracts

primarily

to

manage

and/or

gain

exposure

to

interest

rate

risk.

A

futures

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

an

asset

at

a

specified

price

on

a

future

date.

Required

initial

margins

are

pledged

by

the

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Securities

Lending

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-52

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the

Statement

of

Assets

and

Liabilities.

The

Fund entered

into

OTC

forward

exchange

contracts

primarily

to

manage

and/or

gain

exposure

to

certain

foreign

currencies.

A

forward

exchange

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

foreign

currency at

a

specific

exchange

rate

on

a

future

date.

The

Fund

entered

into

credit

default

swap

contracts

primarily

to

manage

and/or

gain

exposure

to

credit

risk.

A

credit

default

swap

is

an

agreement

between

the

Fund

and

a

counterparty

whereby

the

buyer

of

the

contract

receives

credit

protection

and

the

seller

of

the

contract

guarantees

the

credit

worthiness

of

a

referenced

debt

obligation.

These

agreements

may

be

privately

negotiated

in

the

over-the-

counter

market

(OTC

credit

default

swaps)

or

may

be

executed

in

a

multilateral

trade

facility

platform,

such

as

a

registered

exchange

(centrally

cleared

credit

default

swaps).

The

underlying

referenced

debt

obligation

may

be

a

single

issuer

of

corporate

or

sovereign

debt,

a

credit

index,

a

basket

of

issuers

or

indices,

or

a

tranche

of

a

credit

index

or

basket

of

issuers

or

indices.

In

the

event

of

a

default

of

the

underlying

referenced

debt

obligation,

the

buyer

is

entitled

to

receive

the

notional

amount

of

the

credit

default

swap

contract

from

the

seller

in

exchange

for

the

referenced

debt

obligation,

a

net

settlement

amount

equal

to

the

notional

amount

of

the

credit

default

swap

less

the

recovery

value

of

the

referenced

debt

obligation,

or

other

agreed

upon

amount.

For

centrally

cleared

credit

default

swaps,

required

initial

margins

are

pledged

by

the

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the

Statement

of

Assets

and

Liabilities.

Over

the

term

of

the

contract,

the

buyer

pays

the

seller

a

periodic

stream

of

payments,

provided

that

no

event

of

default

has

occurred.

Such

periodic

payments

are

accrued

daily

as

an

unrealized

appreciation

or

depreciation

until

the

payments

are

made,

at

which

time

they

are

realized.

Upfront

payments

and

receipts

are

reflected

in

the Statement

of

Assets

and

Liabilities

and

represent

compensating

factors

between

stated

terms

of

the

credit

default

swap

agreement

and

prevailing

market

conditions

(credit

spreads

and

other

relevant

factors).

These

upfront

payments

and

receipts

are

amortized

over

the

term

of

the

contract

as

a

realized

gain

or

loss

in

the

Statement

of

Operations.

The

Fund

purchased

or

wrote

OTC

option

contracts

primarily

to

manage

and/or

gain

exposure

to

interest

rate

and

credit

risk.

An

option

is

a

contract

entitling

the

holder

to

purchase

or

sell

a

specific

amount

of

shares

or

units

of

an

asset

or

notional

amount

of

a

swap

(swaption),

at

a

specified

price.

When

an

option

is

purchased

or

written,

an

amount

equal

to

the

premium

paid

or

received

is

recorded

as

an

asset

or

liability,

respectively.

Upon

exercise

of

an

option,

the

acquisition

cost

or

sales

proceeds

of

the

underlying

investment

is

adjusted

by

any

premium

received

or

paid.

Upon

expiration

of

an

option,

any

premium

received

or

paid

is

recorded

as

a

realized

gain

or

loss.

Upon

closing

an

option

other

than

through

expiration

or

exercise,

the

difference

between

the

premium

received

or

paid

and

the

cost

to

close

the

position

is

recorded

as

a

realized

gain

or

loss.

The

Fund

invests

in

value

recovery

instruments

(VRI)

primarily

to

gain

exposure

to

economic

growth.

Periodic

payments

from

VRI

are

dependent

on

established

benchmarks

for

underlying

variables.

VRI

has

a

notional

amount,

which

is

used

to

calculate

amounts

of

payments

to

holders.

Payments

are

recorded

upon

receipt

as

realized

gains

in

the

Statement

of

Operations.

The

risks

of

investing

in

VRI

include

growth

risk,

liquidity,

and

the

potential

loss

of

investment.

The

Fund

did

not

hold

any

VRI

at

period

end.

See

Note

11

regarding

other

derivative

information.

f.

Mortgage

Dollar

Rolls

The

Fund

enters

into

mortgage

dollar

rolls,

typically

on

a

TBA

basis.

Mortgage

dollar

rolls

are

agreements

between

the

Fund

and

a

financial

institution

where

the

Fund

sells

(or

buys)

mortgage-backed

securities

for

delivery

on

a

specified

date

and

simultaneously

contracts

to

repurchase

(or

sell)

substantially

similar

(same

type,

coupon,

and

maturity)

securities

at

a

future

date

and

at

a

predetermined

price.

Gains

or

losses

are

realized

on

the

initial

sale,

and

the

difference

between

the

repurchase

price

and

the

sale

price

is

recorded

as

an

unrealized

gain

or

loss

to

the

Fund

upon

entering

into

the

mortgage

dollar

roll.

In

addition,

the

Fund

may

invest

the

cash

proceeds

that

are

received

from

the

initial

sale.

During

the

period

between

the

sale

and

repurchase,

the

Fund

is

not

entitled

to

principal

and

interest

paid

on

the

mortgage

backed

securities.

Transactions

in

mortgage

dollar

rolls

are

accounted

for

as

purchases

and

1.

Organization

and

Significant

Accounting

Policies

(continued)

e.

Derivative

Financial

Instruments

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-53

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

sales

and

may

result

in

an

increase

to

the

Fund's

portfolio

turnover

rate.

The

risks

of

mortgage

dollar

roll

transactions

include

the

potential

inability

of

the

counterparty

to

fulfill

its

obligations.

g.

Senior

Floating

Rate

Interests

The

Fund

invests

in

senior

secured

corporate

loans

that

pay

interest

at

rates

which

are

periodically

reset

by

reference

to

a

base

lending

rate

plus

a

spread.

These

base

lending

rates

are

generally

the

prime

rate

offered

by

a

designated

U.S.

bank

or

the

London

InterBank

Offered

Rate

(LIBOR).

Senior

secured

corporate

loans

often

require

prepayment

of

principal

from

excess

cash

flows

or

at

the

discretion

of

the

borrower.

As

a

result,

actual

maturity

may

be

substantially

less

than

the

stated

maturity.

Senior

secured

corporate

loans

in

which

the Fund

invests

are

generally

readily

marketable,

but

may

be

subject

to

certain

restrictions

on

resale.

h.

Marketplace

Lending

The

Fund

invests

in

loans

obtained

through

marketplace

lending.

Marketplace

lending,

sometimes

referred

to

as

peer-to-peer

lending,

is

a

method

of

financing

in

which

a

platform

facilitates

the

borrowing

and

lending

of

money.

It

is

considered

an

alternative

to

more

traditional

forms

of

debt

financing.

Prospective

borrowers

are

required

to

provide

certain

financial

information

to

the

platform,

including,

but

not

limited

to,

the

intended

purpose

of

the

loan,

income,

employment

information,

credit

score,

debt-to-income

ratio,

credit

history

(including

defaults

and

delinquencies)

and

home

ownership

status.

Based

on

this

and

other

information,

the

platform

assigns

its

own

credit

rating

to

the

borrower

and

sets

the

interest

rate

for

the

requested

loan.

The

platform

then

posts

the

borrowing

requests

online,

giving

investors

the

opportunity

to

purchase

the

loans

based

on

factors

such

as

the

interest

rates

and

expected

yields

of

the

loans,

the

borrower

background

data,

and

the

credit

rating

assigned

by

the

platform.

When

the

Fund

invests

in

these

loans,

it

usually

purchases

all

rights,

title

and

interest

in

the

loans

pursuant

to

a

loan

purchase

agreement

directly

from

the

platform.

The

platform

or

a

third-party

servicer

typically

continues

to

service

the

loans,

collecting

payments

and

distributing

them

to

the

Fund,

less

any

servicing

fees

assessed.

The

servicer

is

typically

responsible

for

taking

actions

against

a

borrower

in

the

event

of

a

default

on

the

loan.

Servicing

fees,

along

with

other

administration

fees,

are

included

in

marketplace

lending

fees

in

the

Statement

of

Operations.

The Fund,

as

an

investor

in

a

loan,

would

be

entitled

to

receive

payment

only

from

the

borrower

and

would

not

be

able

to

recover

any

deficiency

from

the

platform,

except

under

very

narrow

circumstances.

The

loans

in

which

the

Fund

may

invest

are

unsecured.

i.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date. 

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

j.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Paydown

gains

and

losses

1.

Organization

and

Significant

Accounting

Policies

(continued)

f.

Mortgage

Dollar

Rolls

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-54

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

are

recorded

as

an

adjustment

to

interest

income.

Facility

fees

are

recognized

as

income

over

the

expected

term

of

the

loan.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

k.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

year.

Actual

results

could

differ

from

those

estimates.

l.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust, on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

j.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-55

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

206,141

$2,066,835

1,119,217

$11,967,151

Shares

issued

in

reinvestment

of

distributions

..........

1,032,812

9,367,599

830,678

8,780,267

Shares

redeemed

...............................

(1,822,932)

(18,160,932)

(2,899,771)

(30,998,439)

Net

increase

(decrease)

..........................

(583,979)

$(6,726,498)

(949,876)

$(10,251,021)

Class

2

Shares:

Shares

sold

...................................

647,443

$6,253,911

1,656,006

$17,067,289

Shares

issued

in

reinvestment

of

distributions

..........

394,083

3,440,344

299,698

3,050,922

Shares

redeemed

...............................

(886,596)

(8,460,013)

(2,909,726)

(30,030,432)

Net

increase

(decrease)

..........................

154,930

$1,234,242

(954,022)

$(9,912,221)

Class

4

Shares:

Shares

sold

...................................

100,854

$1,052,735

516,341

$5,494,257

Shares

issued

in

reinvestment

of

distributions

..........

195,811

1,764,256

159,987

1,678,261

Shares

redeemed

...............................

(356,884)

(3,537,884)

(744,790)

(7,891,486)

Net

increase

(decrease)

..........................

(60,219)

$(720,893)

(68,462)

$(718,968)

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-56

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was

0.625%

of

the

Fund’s

average

daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

2

and

Class

4

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.25%

and

0.35%

per

year

of

its

average

daily

net

assets

of

Class

2

and

Class

4,

respectively.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

e.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$500

million

0.525%

Over

$500

million,

up

to

and

including

$1

billion

0.480%

Over

$1

billion,

up

to

and

including

$1.5

billion

0.435%

Over

$1.5

billion,

up

to

and

including

$6.5

billion

0.415%

Over

$6.5

billion,

up

to

and

including

$11.5

billion

0.400%

Over

$11.5

billion,

up

to

and

including

$16.5

billion

0.390%

Over

$16.5

billion,

up

to

and

including

$19

billion

0.380%

Over

$19

billion,

up

to

and

including

$21.5

billion

0.370%

In

excess

of

$21.5

billion

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-57

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

June

30,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2021,

the

capital

loss

carryforwards

were

as

follows:

At

June

30,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Strategic

Income

VIP

Fund

Non-Controlled

Affiliates

Dividends

Franklin

Floating

Rate

Income

Fund

..................

$

27,739,219

$

5,100,000

$

(2,433,500)

$

(638,600)

$

(1,205,353)

$

28,561,766

3,738,451

$

700,141

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

9,106,742

68,841,947

(71,175,223)

—

—

6,773,466

6,773,466

7,996

Total

Non-Controlled

Affiliates

$36,845,961

$73,941,947

$(73,608,723)

$

(638,600)

$

(1,205,353)

$35,335,232

$

708,137

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$—

$12,912,000

$(12,912,000)

$—

$—

$—

—

$229

Total

Affiliated

Securities

...

$36,845,961

$86,853,947

$(86,520,723)

$(638,600)

$(1,205,353)

$35,335,232

$708,366

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$381,451

Long

term

................................................................................

49,000,530

Total

capital

loss

carryforwards

...............................................................

$49,381,981

Cost

of

investments

..........................................................................

$364,886,296

Unrealized

appreciation

........................................................................

$5,777,730

Unrealized

depreciation

........................................................................

(49,928,592)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(44,150,862)

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-58

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

foreign

currency

transactions,

paydown

losses,

bond

discounts

and

premiums,

swaps,

financial

futures

transactions

and

transfer

in-kind.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

aggregated

$84,340,015

and

$95,000,774,

respectively.

7.

Credit Risk

and

Defaulted

Securities

At

June

30,

2022,

the

Fund

had

29.3%

of

its

portfolio

invested

in

high

yield,

senior

secured

floating

rate

loans,

or

other

securities

rated

below

investment

grade

and

unrated

securities,

if

any.

These

securities

may

be

more

sensitive

to

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

to

a

greater

risk

of

loss

due

to

default

than

higher

rated

securities.

The

Fund

held

a

defaulted

security

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

At

June

30,

2022,

the

value

of

this

security

was

$1,281,898,

representing

0.4%

of

the

Fund's

net

assets.

The

Fund

discontinues

accruing

income

on

securities

for

which

income

has

been

deemed

uncollectible

and

provides

an

estimate

for

losses

on

interest

receivable.

The

security

has

been

identified

in

the

accompanying

Schedule

of

Investments.

8.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

9.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

10.

Restricted

Securities

The

Fund

invests

in

securities

that

are

restricted

under

the

Securities

Act

of

1933

(1933

Act).

Restricted

securities

are

often

purchased

in

private

placement

transactions,

and

cannot

be

sold

without

prior

registration

unless

the

sale

is

pursuant

to

an

exemption

under

the

1933

Act.

Disposal

of

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

The Fund

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

5.

Income

Taxes

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-59

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

At

June

30,

2022,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

11.

Other

Derivative

Information

At

June

30,

2022,

investments

in

derivative

contracts

are

reflected

in

the

Statement of

Assets

and

Liabilities

as

follows:

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Strategic

Income

VIP

Fund

14,792,309

a

K2016470219

South

Africa

Ltd.,

A

...............

2/01/17

$

114,768

$

—

1,472,041

a

K2016470219

South

Africa

Ltd.,

B

...............

2/01/17

1,093

—

6,620

Riviera

Resources

Inc

........................

8/08/18

98,638

—

Total

Restricted

Securities

(Value

is

—%

of

Net

Assets)

..............

$214,499

$—

a

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$—

as

of

June

30,

2022.

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Franklin

Strategic

Income

VIP

Fund

Interest

rate

contracts

.......

Variation

margin

on

futures

contracts

$

92,837

a

Variation

margin

on

futures

contracts

$

200,907

a

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

266,877

Unrealized

depreciation

on

OTC

forward

exchange

contracts

59,325

Credit

contracts

............

Variation

margin

on

centrally

cleared

swap

contracts

352,707

b

Variation

margin

on

centrally

cleared

swap

contracts

—

OTC

swap

contracts

(upfront

payments)

8,897

OTC

swap

contracts

(upfront

receipts)

908,931

Unrealized

appreciation

on

OTC

swap

contracts

9,511

Unrealized

depreciation

on

OTC

swap

contracts

1,407,960

Total

....................

$730,829

$2,577,123

a

This

amount

reflects

the

cumulative

appreciation

(depreciation)

of

futures

contracts

as

reported

in

the

Schedule

of

Investments.

Only

the

variation

margin

receivable/payable

at

period

end

is

separately

reported

within

the

Statement

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

b

This

amount

reflects

the

cumulative

appreciation

(depreciation)

of

centrally

cleared

contracts

as

reported

in

the

Schedule

of

Investments.

Only

the

variation

margin

receivable/payable

at

period

end

is

separately

reported

within

the

Statement

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

10.

Restricted

Securities

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-60

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

For

the

period

ended

June

30,

2022,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the period

ended

June

30,

2022,

the

average

month

end

notional

amount

of

futures

contracts,

swap

contracts

and

options,

and

the

average

month

end

contract

value

for

forward

exchange

contracts,

and

average

month

end

fair

value

of

VRI,

were

as

follows:

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Period

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Period

Franklin

Strategic

Income

VIP

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Interest

rate

contracts

..........

Investments

$(58,383)

a

Investments

$11,619

a

Written

options

(9,317)

Written

options

(36,230)

Futures

contracts

1,107,640

Futures

contracts

212,211

Foreign

exchange

contracts

.....

Investments

(2,065)

a

Investments

6,859

a

Forward

exchange

contracts

310,123

Forward

exchange

contracts

114,878

Credit

contracts

...............

Swap

contracts

212,850

Swap

contracts

(961,026)

Value

recovery

instruments

Investments

(152,700)

b

Investments

(507,558)

b

Total

.......................

$1,408,148

$(1,159,247)

a

Purchased

option

contracts

are

included

in

net

realized

gain

(loss)

from

investments

and

net

change

in

unrealized

appreciation

(depreciation)

on

investments

in

the

Statement

of

Operations.

b

VRI

are

included

in

net

realized

gain

(loss)

from

investments

and

net

change

in

unrealized

appreciation

(depreciation)

on

investments

in

the

Statement

of

Operations.

Franklin

Strategic

Income

VIP

Fund

Futures

contracts

.........................

$30,605,914

Swap

Contracts

..........................

19,198,285

Forward

exchange

contracts

.................

10,911,494

Options

.................................

2,393,996

VRI

....................................

267,597

11.

Other

Derivative

Information

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-61

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

At

June

30,

2022,

the

Fund's

OTC

derivative

assets

and

liabilities

are

as

follows:

At

June

30,

2022,

OTC

derivative

assets,

which

may

be

offset

against

OTC

derivative

liabilities

and

collateral

received

from

the

counterparty,

are

as

follows:

Gross

Amounts

of

Assets

and

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Assets

a

Liabilities

a

Franklin

Strategic

Income

VIP

Fund

Derivatives

Forward

exchange

contracts

.............................

$

266,877

$

59,325

Swap

contracts

.......................................

18,408

2,316,891

Total

.............................................

$285,285

$2,376,216

a

Absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Assets

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Received

Cash

Collateral

Received

Net

Amount

(Not

less

than

zero)

Franklin

Strategic

Income

VIP

Fund

Counterparty

BNDP

...................

$—

$—

$—

$—

$—

CITI

.....................

16,272

(16,272)

—

—

—

GSCO

...................

2,136

(2,136)

—

—

—

JPHQ

...................

266,877

(59,325)

—

—

207,552

Total

...................

$285,285

$(77,733)

$

—

$—

$207,552

$

1

11.

Other

Derivative

Information

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-62

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

At

June

30,

2022,

OTC

derivative

liabilities,

which

may

be

offset

against

OTC

derivative

assets

and

collateral

pledged

to

the

counterparty,

are

as

follows:

See

Note

1(e)

regarding

derivative

financial

instruments. 

See

Abbreviations

on

page

FSI-

67

.

12.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

13.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Pledged

Cash

Collateral

Pledged

Net

Amount

(Not

less

than

zero)

Franklin

Strategic

Income

VIP

Fund

Counterparty

BNDP

...................

$36,075

$—

$—

$—

$36,075

CITI

.....................

2,261,817

(16,272)

—

(1,990,000)

255,545

GSCO

...................

18,999

(2,136)

—

—

16,863

JPHQ

...................

59,325

(59,325)

—

—

—

Total

...................

$2,376,216

$(77,733)

$—

$(1,990,000)

$308,483

11.

Other

Derivative

Information

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-63

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's assets

and

liabilities

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Strategic

Income

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Energy

Equipment

&

Services

.............

$

292,019

$

—

$

—

$

292,019

Machinery

............................

—

842,414

—

842,414

Media

...............................

88,410

—

1,042

89,452

Multiline

Retail

........................

—

—

—

a

—

Oil,

Gas

&

Consumable

Fuels

.............

2,819

—

—

a

2,819

Management

Investment

Companies

.........

—

28,561,766

—

28,561,766

Warrants

:

Oil,

Gas

&

Consumable

Fuels

.............

—

—

 —

a

—

Paper

&

Forest

Products

.................

—

5,061

—

5,061

Convertible

Bonds

.......................

—

13,089

—

13,089

Corporate

Bonds

:

Aerospace

&

Defense

...................

—

1,542,833

—

1,542,833

Air

Freight

&

Logistics

...................

—

826,609

—

826,609

Airlines

..............................

—

1,896,742

—

1,896,742

Auto

Components

......................

—

3,716,363

—

3,716,363

Automobiles

..........................

—

871,692

—

871,692

Banks

...............................

—

9,294,143

—

9,294,143

Beverages

...........................

—

1,569,035

—

1,569,035

Biotechnology

.........................

—

644,520

—

644,520

Building

Products

......................

—

1,179,933

—

1,179,933

Capital

Markets

........................

—

4,104,707

—

4,104,707

Chemicals

...........................

—

8,982,627

—

8,982,627

Commercial

Services

&

Supplies

...........

—

1,956,083

—

1,956,083

Communications

Equipment

..............

—

1,017,677

—

1,017,677

Construction

&

Engineering

...............

—

688,359

—

688,359

Construction

Materials

..................

—

376,368

—

376,368

Consumer

Finance

.....................

—

644,434

—

644,434

Containers

&

Packaging

.................

—

2,764,866

—

2,764,866

Diversified

Consumer

Services

............

—

748,632

—

748,632

Diversified

Financial

Services

.............

—

1,444,451

—

1,444,451

Diversified

Telecommunication

Services

.....

—

3,467,569

—

3,467,569

Electric

Utilities

........................

—

5,339,188

—

5,339,188

Electrical

Equipment

....................

—

1,582,404

—

1,582,404

Electronic

Equipment,

Instruments

&

Components

........................

—

1,522,498

—

1,522,498

Energy

Equipment

&

Services

.............

—

1,973,444

—

1,973,444

Entertainment

.........................

—

1,545,059

—

1,545,059

Equity

Real

Estate

Investment

Trusts

(REITs)

.

—

3,925,710

—

3,925,710

Food

Products

........................

—

1,196,927

—

1,196,927

Gas

Utilities

..........................

—

224,204

—

224,204

Health

Care

Equipment

&

Supplies

.........

—

412,210

—

412,210

Health

Care

Providers

&

Services

..........

—

5,123,293

—

5,123,293

Hotels,

Restaurants

&

Leisure

.............

—

4,202,323

—

4,202,323

Household

Durables

....................

—

1,176,889

—

1,176,889

Household

Products

....................

—

1,216,675

—

1,216,675

13.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-64

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

Level

1

Level

2

Level

3

Total

Franklin

Strategic

Income

VIP

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Corporate

Bonds:

Independent

Power

and

Renewable

Electricity

Producers

..........................

$

—

$

5,541,042

$

—

$

5,541,042

Insurance

............................

—

779,634

—

779,634

Interactive

Media

&

Services

..............

—

2,096,180

—

2,096,180

Internet

&

Direct

Marketing

Retail

..........

—

1,917,175

—

1,917,175

IT

Services

...........................

—

3,459,819

—

3,459,819

Machinery

............................

—

732,099

—

732,099

Marine

..............................

—

1,210,752

—

1,210,752

Media

...............................

—

5,004,570

—

5,004,570

Metals

&

Mining

.......................

—

1,036,471

—

1,036,471

Multiline

Retail

........................

—

838,985

—

a

838,985

Oil,

Gas

&

Consumable

Fuels

.............

—

16,522,203

—

16,522,203

Paper

&

Forest

Products

.................

—

1,149,637

—

1,149,637

Personal

Products

.....................

—

844,332

—

844,332

Pharmaceuticals

.......................

—

3,708,935

—

3,708,935

Real

Estate

Management

&

Development

....

—

2,459,869

—

2,459,869

Road

&

Rail

..........................

—

1,873,347

—

1,873,347

Software

.............................

—

1,205,001

—

1,205,001

Specialty

Retail

........................

—

2,388,728

—

2,388,728

Technology

Hardware,

Storage

&

Peripherals

.

—

165,925

—

165,925

Thrifts

&

Mortgage

Finance

...............

—

848,296

—

848,296

Tobacco

.............................

—

1,019,035

—

1,019,035

Trading

Companies

&

Distributors

..........

—

1,807,177

—

1,807,177

Transportation

Infrastructure

..............

—

114,367

—

114,367

Wireless

Telecommunication

Services

.......

—

2,216,815

—

2,216,815

Senior

Floating

Rate

Interests

...............

—

2,410,986

—

2,410,986

Marketplace

Loans

......................

—

—

9,237,918

9,237,918

Foreign

Government

and

Agency

Securities

....

—

23,112,971

—

23,112,971

U.S.

Government

and

Agency

Securities

.......

—

53,435,252

—

53,435,252

Asset-Backed

Securities

..................

—

24,638,429

—

24,638,429

Commercial

Mortgage-Backed

Securities

......

—

1,620,713

—

1,620,713

Mortgage-Backed

Securities

................

—

10,566,059

—

10,566,059

Municipal

Bonds

.........................

—

2,676,715

—

2,676,715

Residential

Mortgage-Backed

Securities

......

—

22,285,558

—

22,285,558

Escrows

and

Litigation

Trusts

...............

—

3,645

—

a

3,645

Short

Term

Investments

...................

6,773,466

—

—

6,773,466

Total

Investments

in

Securities

...........

$7,156,714

$306,291,519

$9,238,960

$322,687,193

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

266,877

$

—

$

266,877

Futures

contracts

........................

92,837

—

—

92,837

Swap

contracts

.........................

—

362,218

—

362,218

Total

Other

Financial

Instruments

.........

$92,837

$629,095

$—

$721,932

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

59,325

$

—

$

59,325

Futures

contracts

........................

200,907

—

—

200,907

Swap

contracts

..........................

—

1,407,960

—

1,407,960

Total

Other

Financial

Instruments

.........

$200,907

$1,467,285

$—

$1,668,192

a

Includes

securities

determined

to

have

no

value

at

June

30,

2022.

13.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-65

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the

period.

At

June

30,

2022,

the

reconciliation

is

as

follows:

Significant

unobservable

valuation

inputs

for

material

Level

3

assets

and/or

liabilities

and

impact

to

fair

value

as

a

result

of

changes

in

unobservable

valuation

inputs

as

of

June

3

0

,

202

2

,

are

as

follows:

Balance

at

Beginning

of

Period

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Strategic

Income

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Media

...........

$

2,779

$

—

$

—

$

—

$

—

$

—

$

—

$

(1,737)

$

1,042

$

(1,737)

Multiline

Retail

......

—

c

—

—

—

—

—

—

—

—

c

—

Oil,

Gas

&

Consumable

Fuels

..........

—

c

—

—

—

—

—

—

—

—

c

—

Warrants

:

Oil,

Gas

&

Consumable

Fuels

..........

3

—

—

—

—

—

—

(3)

—

c

(3)

Corporate

Bonds

:

Multiline

Retail

......

—

c

—

c

—

—

—

—

—

—

—

c

—

Marketplace

Loans

:

Diversified

Financial

Services

........

5,892,407

6,410,794

(2,706,579)

—

—

—

(7,380)

(351,324)

9,237,918

(330,293)

Escrows

and

Litigation

Trusts

...........

—

c

—

 —

—

—

—

 —

—

—

c

—

Total

Investments

in

Securities

............

$5,895,189

$6,410,794

$(2,706,579)

$—

$—

$—

$(7,380)

$(353,064)

$9,238,960

$(332,033)

a

Purchases

include

all

purchases

of

securities

and

securities

received

in

corporate

actions.

b

Sales

include

all

sales

of

securities,

maturities,

paydowns

and

securities

tendered

in

corporate

actions.

c

Includes

securities

determined

to

have

no

value.

Description

Fair

Value

at

End

of

Period

Valuation

Technique

Unobservable

Inputs

Amount

/

Range

(Weighted

Average)

a

Impact

to

Fair

Value

if

Input

Increases

b

Franklin

Strategic

Income

VIP

Fund

Assets:

Investments

in

Securities:

Marketplace

Loans:

Diversified

Financial

Services.

$8,804,191

Discounted

cash

flow

Loss-adjusted

discount

rate

2.4%

–

10.9%

(8.2%)

Decrease

c

Projected

loss

rate

13.8%

–

19.6%

(17.3%)

Decrease

c

All

Other

Investments

.

.

.

.

.

.

.

434,769

d,e

Total

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.........

$9,238,960

a

Weighted

based

on

the

relative

fair

value

of

the

financial

instruments.

13.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-66

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

14.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-

04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and

financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

LIBOR

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder.

The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

In

June

2022,

FASB

issued

ASU

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

15.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

b

Represents

the

directional

change

in

the

fair

value

of

the

Level

3

financial

instruments

that

would

result

from

a

significant

and

reasonable

increase

in

the

corresponding

input.

A

significant

and

reasonable

decrease

in

the

input

would

have

the

opposite

effect.

Significant

impacts,

if

any,

to

fair

value

and/or

net

assets

have

been

indicated.

c

Represents

a

significant

impact

to

fair

value

and

net

assets.

d

Includes

financial

instruments

with

values

derived

using

private

transaction

prices

or

non-public

third

party

pricing

information

which

is

unobservable.

May

also

include

fair

value

of

immaterial

financial

instruments

and

developed

using

various

valuation

techniques

and

unobservable

inputs.

e

Includes

securities

determined

to

have

no

value

at

June

30,

2022.

13.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FSI-67

Semiannual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

Abbreviations

Counterparty

BNDP

BNP

Paribas

SA

CITI

Citibank

NA

GSCO

Goldman

Sachs

Group,

Inc.

JPHQ

JPMorgan

Chase

Bank

NA

Cu

r

rency

COP

Colombian

Peso

DOP

Dominican

Peso

EUR

Euro

USD

United

States

Dollar

Index

CDX.NA.HY.

Series

number

CDX

North

America

High

Yield

Index

MCDX.

NA.Series

Number

MCDX

North

America

Index

Selected

Portfolio

CLO

Collateralized

Loan

Obligation

CME

Chicago

Mercantile

Exchange

CMT

Constant

Monthly

U.S.

Treasury

Securities

Yield

Curve

Rate

Index

EURIBOR

Euro

Inter-Bank

Offer

Rate

FHLMC

Federal

Home

Loan

Mortgage

Corp.

FNMA

Federal

National

Mortgage

Association

FRN

Floating

Rate

Note

GNMA

Government

National

Mortgage

Association

GO

General

Obligation

LIBOR

London

Inter-Bank

Offered

Rate

MBS

Mortgage-Backed

Security

PIK

Payment-In-Kind

SOFR

Secured

Overnight

Financing

Rate

TBA

To-Be-Announced

T-Note

Treasury

Note

FUS-1

Semiannual

Report

Franklin

U.S.

Government

Securities

VIP

Fund

This

semiannual

report

for

Franklin

U.S.

Government

Securities

VIP

Fund

covers

the

period

ended

June

30,

2022

.

Class

1

Performance

Summary

as

of

June

30,

2022

The

Fund’s

Class

1

Shares

posted

a

-6

.99

%

total

return

for

the

six-month

period

ended

June

30,

202

2

.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

FUS-2

Semiannual

Report

Franklin

U.S.

Government

Securities

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

income.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

U.S.

government

securities.

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

share

price

and

yield

will

be

affected

by

interest

rate

movements

and

mortgage

prepayments.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Changes

in

the

financial

strength

of

a

bond

issuer

or

in

a

bond’s

credit

rating

may

affect

its

value.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

primary

benchmark,

the

Bloomberg

U.S.

Government

-

Intermediate

Index,

posted

a

-5.77%

total

return.

1

Economic

and

Market

Overview

The

U.S.

bond

market,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index,

posted

a

-10.35%

total

return

for

the

six

months

ended

June

30,

2022.

1

High

inflation

amid

supply

chain

disruptions

and

increased

consumer

spending

led

to

significantly

tighter

monetary

policy,

reducing

the

value

of

most

bonds.

Geopolitical

instability

disrupted

financial

markets

following

Russia’s

invasion

of

Ukraine,

adding

to

the

uncertainty

surrounding

the

global

economy.

The

yield

curve

flattened

notably

during

the

period,

reflecting

investors’

expectations

that

short-term

interest

rates

would

continue

to

rise,

while

the

outlook

for

long-term

economic

growth

was

uncertain.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

in

March

2022,

the

first

such

increase

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

2022

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings,

and

anticipated

instituting

further

interest-rate

increases

at

future

meetings.

U.S.

Treasury

(UST)

bonds,

as

measured

by

the

Bloomberg

U.S.

Treasury

Index,

posted

a

-9.14%

total

return

for

the

six-month

period.

1

The

10-year

UST

yield

(which

moves

inversely

to

price)

grew

notably,

particularly

beginning

in

March

2022,

amid

high

inflation

and

the

Fed’s

tightening

monetary

stance.

Mortgage-backed

securities

(MBS),

as

measured

by

the

Bloomberg

U.S.

MBS

Index,

posted

a

-8.78%

total

return

for

the

period

as

mortgage

rates

rose

to

the

highest

level

in

over

a

decade.

1

Corporate

bond

prices

also

declined

overall,

constrained

by

inflation,

rising

interest

rates

and

concerns

about

the

impact

of

higher

interest

rates

on

corporate

borrowing

costs

and

the

wider

economy.

Corporate

yield

spreads,

a

measure

Portfolio

Composition

6/30/22

%

of

Total

Net

Assets

Mortgage-Backed

Securities

76.7%

U.S.

Government

and

Agency

Securities

14.0%

Foreign

Government

and

Agency

Securities

2.0%

Corporate

Bonds

1.6%

Short-Term

Investments

&

Other

Net

Assets

5.7%

1.

Source:

Morningstar.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

Franklin

U.S.

Government

Securities

VIP

Fund

FUS-3

Semiannual

Report

of

the

difference

in

yields

between

corporate

bonds

and

similarly-dated

USTs,

rose,

reflecting

investors’

increased

risk-aversion

preferences.

In

this

environment,

high-yield

corporate

bonds,

as

represented

by

the

Bloomberg

U.S.

Corporate

High

Yield

Bond

Index,

posted

a

-14.19%

total

return,

and

investment-grade

corporate

bonds,

as

represented

by

the

Bloomberg

U.S.

Corporate

Bond

Index,

posted

a

-14.39%

total

return.

1

Investment

Strategy

Using

our

straightforward

investment

approach,

we

seek

to

produce

current

income

with

a

high

degree

of

credit

safety

from

a

conservatively

managed

portfolio

of

U.S.

government

securities.

Analyzing

securities

using

proprietary

and

nonproprietary

research,

we

seek

to

identify

attractive

investment

opportunities.

Manager’s

Discussion

All

the

fixed

income

sectors

in

which

the

Fund

invests

posted

negative

total

returns

over

the

reporting

period.

Treasury

Inflation-Protected

Securities

(TIPS)

represented

the

best

performing

sector

on

a

relative

basis

as

the

only

sector

with

positive

excess

returns,

as

measured

by

the

Bloomberg

indexes.

The

other

major

fixed

income

sectors

in

which

the

Fund

allocates

posted

negative

total

returns

and

underperformed

similar

duration

U.S.

Treasuries

(USTs)

during

the

period.

Within

the

agency

MBS

sector,

on

an

excess

return

basis,

all

major

MBS

sectors

posted

negative

excess

returns

with

Ginnie

Mae

(GNMA)

MBS

performing

the

best,

followed

by

Fannie

Mae

(FNMA)

and

Freddie

Mac

(FHLMC)

MBS.

For

the

GNMA

coupon

stack,

higher

coupon

4.0%

through

5.0%

were

the

best

performers,

while

1.5%

through

3.0%

coupons

lagged

with

negative

excess

returns.

At

the

May

2022

Federal

Open

Market

Committee

meeting,

the

Fed

announced

plans

to

wind

down

its

balance

sheet

starting

at

the

beginning

of

June

with

initial

caps

of

$47.5

billion

per

month

($30

billion

USTs

and

$17.5

billion

MBS).

The

runoff

rate

is

expected

to

hit

a

peak

of

$95

billion

($60

billion

USTs

and

$35

billion

MBS)

by

September

2022.

The

Fed

had

purchased

around

$3.1

trillion

of

agency

MBS

and

owned

32.0%

of

the

agency

MBS

market.

Agency

MBS

net

issuance

year-to-date

was

$868

billion

and

is

expected

to

be

around

$550

billion

in

2022.

Zero-volatility

option

adjusted

spreads

(ZV-OAS)

fluctuated

over

the

six-month

reporting

period

but

ended

the

period

7

basis

points

(bps)

tighter,

moving

from

58

bps

in

January

2022

to

65

bps

as

of

June

30,

2022.

The

Primary

Mortgage

Market

Survey

rate

increased

throughout

the

period,

leaving

only

a

small

percentage

of

the

MBS

universe

in-the-money

to

refinance,

compared

to

a

significantly

larger

figure

in

2020.

We

expect

prepayment

risk

to

decline

substantially

for

agency

MBS

securities.

The

Fund

maintains

a

consistent

and

disciplined

approach

to

our

investment

strategy.

The

Fund’s

investment

process

and

strategy

have

not

changed,

and

the

team

continues

to

look

for

strong

cash

flow

fundamentals

and

valuations,

seeking

to

uncover

opportunities

across

the

agency

mortgage

and

agency

debenture

universe.

The

Fund

emphasizes

agency

pass-throughs

and

invests

in

other

agency

securities

for

diversification

purposes.

The

portfolio’s

largest

allocation

remains

in

fixed-rate

agency

MBS,

primarily

in

30-year

GNMA

II

securities.

Over

the

period,

we

increased

our

exposure

to

USTs

and

agency

debentures,

while

decreasing

agency

MBS.

The

Fund’s

largest

MBS

allocation

remained

in

3.0%

and

2.5%

coupons.

The

Fund’s

U.S.

yield

curve

positioning

and

allocation

to

fixed-rate

agency

MBS

detracted

from

performance.

Security

selection

in

fixed-rate

agency

MBS

and,

to

a

lesser

extent,

agency

securities

contributed

to

returns.

The

Fund’s

allocation

to

TIPS

and

Fannie

Mae

authorized

delegated

underwriting

services

(DUS)

also

contributed

to

performance

over

the

period.

Thank

you

for

your

participation

in

Franklin

U.S.

Government

Securities

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Class

1

Fund

Expenses

Franklin

U.S.

Government

Securities

VIP

Fund

FUS-4

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

1

$1,000

$930.10

$2.56

$1,022.14

$2.68

0.53%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

U.S.

Government

Securities

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FUS-5

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.85

$12.37

$12.34

$12.07

$12.36

$12.51

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.08

0.12

0.22

0.27

0.29

0.25

Net

realized

and

unrealized

gains

(losses)

(0.91)

(0.32)

0.28

0.38

(0.22)

(0.04)

Total

from

investment

operations

........

(0.83)

(0.20)

0.50

0.65

0.07

0.21

Less

distributions

from:

Net

investment

income

..............

(0.29)

(0.32)

(0.47)

(0.38)

(0.36)

(0.36)

Net

asset

value,

end

of

period

..........

$10.73

$11.85

$12.37

$12.34

$12.07

$12.36

Total

return

c

.......................

(6.99)%

(1.62)%

4.08%

5.47%

0.60%

1.66%

Ratios

to

average

net

assets

d

Expenses

e

........................

0.53%

0.53%

0.53%

0.51%

0.50%

0.50%

Net

investment

income

...............

1.46%

1.03%

1.81%

2.23%

2.38%

2.00%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$40,190

$45,733

$52,307

$54,104

$59,213

$66,404

Portfolio

turnover

rate

................

4.68%

80.81%

56.32%

24.16%

22.25%

80.49%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

U.S.

Government

Securities

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FUS-6

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.57

$12.08

$12.05

$11.79

$12.09

$12.24

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.07

0.09

0.19

0.24

0.25

0.21

Net

realized

and

unrealized

gains

(losses)

(0.89)

(0.31)

0.27

0.37

(0.22)

(0.04)

Total

from

investment

operations

........

(0.82)

(0.22)

0.46

0.61

0.03

0.17

Less

distributions

from:

Net

investment

income

..............

(0.26)

(0.29)

(0.43)

(0.35)

(0.33)

(0.32)

Net

asset

value,

end

of

period

..........

$10.49

$11.57

$12.08

$12.05

$11.79

$12.09

Total

return

c

.......................

(7.10)%

(1.83)%

3.83%

5.23%

0.34%

1.34%

Ratios

to

average

net

assets

d

Expenses

e

........................

0.78

%

0.78%

0.78%

0.76%

0.75%

0.75%

Net

investment

income

...............

1.21%

0.78%

1.56%

1.98%

2.13%

1.75%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$619,247

$730,340

$771,332

$771,866

$1,105,627

$1,223,491

Portfolio

turnover

rate

................

4.68%

80.81%

56.32%

24.16%

22.25%

80.49%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

U.S.

Government

Securities

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FUS-7

I

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

1.6%

Oil,

Gas

&

Consumable

Fuels

1.6%

Reliance

Industries

Ltd.

,

Senior

Bond,

2.512%,

1/15/26

..........................

India

5,250,000

$

5,173,177

Senior

Note,

1.87%,

1/15/26

...........................

India

2,947,368

2,872,198

Senior

Note,

2.06%,

1/15/26

...........................

India

2,500,000

2,444,370

10,489,745

Total

Corporate

Bonds

(Cost

$10,643,460)

......................................

10,489,745

Foreign

Government

and

Agency

Securities

2.0%

Israel

Government

Bond

,

Senior

Bond

,

5.5

%

,

9/18/23

..........

Israel

12,000,000

12,359,308

Petroleos

Mexicanos

,

Senior

Bond

,

2.378

%

,

4/15/25

...........

Mexico

987,000

973,323

Total

Foreign

Government

and

Agency

Securities

(Cost

$13,404,249)

..............

13,332,631

U.S.

Government

and

Agency

Securities

14.0%

FHLB

,

2.625

%,

9/12/25

.................................

United

States

10,000,000

9,871,783

Tennessee

Valley

Authority

,

1.875

%,

8/15/22

.................

United

States

6,000,000

5,998,917

U.S.

Treasury

Bonds

,

2.5

%,

2/15/46

.......................

United

States

6,000,000

5,092,266

U.S.

Treasury

Notes

,

a

0.125%,

7/15/24

.....................................

United

States

6,350,000

7,807,220

2.375%,

8/15/24

.....................................

United

States

22,000,000

21,715,547

2.25%,

8/15/27

.....................................

United

States

31,040,000

29,821,438

0.625%,

8/15/30

.....................................

United

States

8,500,000

7,049,023

United

States

International

Development

Finance

Corp.,

Senior

Bond.

,

4.01

%,

5/15/30

................................

United

States

1,367,500

1,400,344

United

States

International

Development

Finance

Corp.,

Senior

Note.

,

2.12

%,

3/20/24

................................

United

States

3,666,667

3,623,884

Total

U.S.

Government

and

Agency

Securities

(Cost

$97,696,322)

.................

92,380,422

Mortgage-Backed

Securities

76.7%

b

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Adjustable

Rate

0.8%

FHLMC,

2.627%,

(1-year

CMT

T-Note

+/-

MBS

Margin),

5/01/37

..

United

States

157,513

155,470

FHLMC,

2.327%

-

3.535%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

3/01/36

-

4/01/40

....................................

United

States

5,076,089

5,189,980

5,345,450

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Fixed

Rate

9.5%

FHLMC

Gold

Pools,

15

Year,

4.5%,

3/01/25

-

4/01/25

..........

United

States

272,596

279,115

FHLMC

Gold

Pools,

20

Year,

3.5%,

3/01/32

..................

United

States

1,178,420

1,179,908

FHLMC

Gold

Pools,

30

Year,

3%,

5/01/43

...................

United

States

160,937

154,038

FHLMC

Gold

Pools,

30

Year,

3.5%,

5/01/43

..................

United

States

25,784

25,369

FHLMC

Gold

Pools,

30

Year,

4%,

9/01/40

-

12/01/41

...........

United

States

2,535,103

2,567,978

FHLMC

Gold

Pools,

30

Year,

4.5%,

5/01/40

-

7/01/41

..........

United

States

730,278

754,105

FHLMC

Gold

Pools,

30

Year,

5%,

9/01/33

-

4/01/40

............

United

States

2,123,649

2,224,388

FHLMC

Gold

Pools,

30

Year,

5.5%,

7/01/33

-

5/01/38

..........

United

States

475,264

510,334

FHLMC

Gold

Pools,

30

Year,

6%,

1/01/24

-

8/01/35

............

United

States

424,830

453,563

FHLMC

Gold

Pools,

30

Year,

6.5%,

12/01/23

-

5/01/35

.........

United

States

142,088

149,779

FHLMC

Gold

Pools,

30

Year,

7%,

4/01/24

-

9/01/31

............

United

States

43,283

45,111

FHLMC

Gold

Pools,

30

Year,

8.5%,

7/01/31

..................

United

States

89,322

96,296

FHLMC

Pool,

15

Year,

1.5%,

1/01/37

.......................

United

States

11,167,099

10,172,692

FHLMC

Pool,

15

Year,

2%,

10/01/35

.......................

United

States

7,515,329

7,088,712

FHLMC

Pool,

15

Year,

2%,

9/01/36

........................

United

States

3,602,568

3,367,793

FHLMC

Pool,

30

Year,

2%,

11/01/50

.......................

United

States

2,267,740

1,977,509

FHLMC

Pool,

30

Year,

2%,

1/01/51

........................

United

States

5,107,643

4,454,740

FHLMC

Pool,

30

Year,

2.5%,

2/01/52

.......................

United

States

11,737,240

10,568,660

FHLMC

Pool,

30

Year,

3%,

2/01/52

........................

United

States

4,654,090

4,340,870

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

U.S.

Government

Securities

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FUS-8

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Mortgage-Backed

Securities

(continued)

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Fixed

Rate

(continued)

FHLMC

Pool,

30

Year,

4%,

11/01/45

.......................

United

States

9,024,456

$

9,092,455

FHLMC

Pool,

30

Year,

4.5%,

1/01/49

.......................

United

States

2,791,395

2,854,625

62,358,040

b

Federal

National

Mortgage

Association

(FNMA)

Adjustable

Rate

2.4%

FNMA,

1.649%

-

2.856%,

(12-month

average

of

1-year

CMT

+/-

MBS

Margin),

9/01/35

-

10/01/44

........................

United

States

168,691

171,310

FNMA,

2.909%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

9/01/37

.

United

States

5,407,678

5,595,142

FNMA,

1.425%

-

3.505%,

(6-month

USD

LIBOR

+/-

MBS

Margin),

6/01/23

-

3/01/37

....................................

United

States

342,992

344,475

FNMA,

1.447%

-

4.004%,

(12-month

USD

LIBOR

+/-

MBS

Margin),

1/01/32

-

4/01/41

....................................

United

States

6,909,568

7,072,679

FNMA,

1.726%

-

5.109%,

(1-year

CMT

T-Note

+/-

MBS

Margin),

12/01/22

-

12/01/40

..................................

United

States

3,244,660

3,303,838

FNMA,

1.553%

-

5.634%,

(COFI

11th

District

+/-

MBS

Margin),

6/01/25

-

11/01/36

...................................

United

States

44,801

44,685

16,532,129

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

20.8%

FNMA,

2.64%,

7/01/25

.................................

United

States

2,322,265

2,276,986

FNMA,

2.77%,

4/01/25

.................................

United

States

3,500,000

3,447,331

FNMA,

3.28%,

7/01/27

.................................

United

States

4,000,000

3,935,183

FNMA,

5.5%,

4/01/34

..................................

United

States

422,670

429,953

FNMA,

15

Year,

2%,

9/01/35

.............................

United

States

5,517,283

5,164,863

FNMA,

15

Year,

5.5%,

1/01/25

...........................

United

States

67,778

68,454

FNMA,

30

Year,

2%,

8/01/51

.............................

United

States

7,835,649

6,825,327

FNMA,

30

Year,

2.5%,

8/01/51

...........................

United

States

9,990,161

9,005,271

FNMA,

30

Year,

2.5%,

9/01/51

...........................

United

States

22,040,705

19,866,919

FNMA,

30

Year,

2.5%,

11/01/51

...........................

United

States

5,079,982

4,578,775

FNMA,

30

Year,

2.5%,

12/01/51

...........................

United

States

6,916,446

6,233,858

FNMA,

30

Year,

2.5%,

2/01/52

...........................

United

States

14,818,840

13,347,483

FNMA,

30

Year,

3%,

12/01/42

............................

United

States

60,800

57,624

FNMA,

30

Year,

3%,

7/01/50

.............................

United

States

8,346,575

7,818,165

FNMA,

30

Year,

3%,

8/01/50

.............................

United

States

11,889,189

11,135,889

FNMA,

30

Year,

3%,

7/01/51

.............................

United

States

4,602,017

4,296,461

FNMA,

30

Year,

3%,

9/01/51

.............................

United

States

20,510,364

19,156,995

FNMA,

30

Year,

3.5%,

7/01/45

...........................

United

States

10,228,446

10,038,624

FNMA,

30

Year,

4%,

1/01/41

-

8/01/41

......................

United

States

2,665,712

2,690,642

FNMA,

30

Year,

4.5%,

8/01/40

-

6/01/41

....................

United

States

2,249,835

2,324,044

FNMA,

30

Year,

5%,

3/01/34

-

7/01/41

......................

United

States

1,590,523

1,663,839

FNMA,

30

Year,

5.5%,

12/01/32

-

8/01/35

...................

United

States

999,884

1,063,448

FNMA,

30

Year,

6%,

1/01/24

-

8/01/38

......................

United

States

919,060

984,582

FNMA,

30

Year,

6.5%,

1/01/24

-

9/01/36

....................

United

States

113,483

120,369

FNMA,

30

Year,

7.5%,

4/01/23

-

8/01/25

....................

United

States

1,189

1,225

FNMA,

30

Year,

8%,

3/01/23

-

12/01/24

.....................

United

States

7,415

7,462

FNMA,

30

Year,

9%,

10/01/26

............................

United

States

30,037

30,121

136,569,893

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

43.2%

GNMA

I,

30

Year,

5%,

9/15/40

............................

United

States

8,616,542

9,049,624

GNMA

I,

30

Year,

5.5%,

3/15/32

-

2/15/38

...................

United

States

269,480

290,551

GNMA

I,

30

Year,

6%,

7/15/29

-

11/15/38

....................

United

States

218,675

238,483

GNMA

I,

30

Year,

6.5%,

12/15/28

-

1/15/33

..................

United

States

110,201

118,251

GNMA

I,

30

Year,

7%,

12/15/28

...........................

United

States

6,160

6,548

GNMA

I,

30

Year,

7.5%,

12/15/31

-

8/15/33

..................

United

States

110,106

119,118

GNMA

I,

Single-family,

30

Year,

3%,

7/15/42

.................

United

States

227,077

216,208

GNMA

I,

Single-family,

30

Year,

4%,

10/15/40

-

8/15/46

.........

United

States

3,681,580

3,752,614

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

U.S.

Government

Securities

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FUS-9

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Mortgage-Backed

Securities

(continued)

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

(continued)

GNMA

I,

Single-family,

30

Year,

4.5%,

1/15/39

-

6/15/41

........

United

States

5,473,430

$

5,709,095

GNMA

I,

Single-family,

30

Year,

5.5%,

12/15/28

-

10/15/39

.......

United

States

2,083,607

2,220,778

GNMA

I,

Single-family,

30

Year,

6%,

11/15/23

-

9/15/38

.........

United

States

804,183

856,781

GNMA

I,

Single-family,

30

Year,

6.5%,

9/15/23

-

5/15/37

........

United

States

467,229

491,522

GNMA

I,

Single-family,

30

Year,

7%,

10/15/22

-

9/15/31

.........

United

States

61,758

63,059

GNMA

I,

Single-family,

30

Year,

7.5%,

11/15/22

-

11/15/27

.......

United

States

14,482

14,606

GNMA

I,

Single-family,

30

Year,

8%,

3/15/23

-

7/15/23

..........

United

States

4,413

4,437

GNMA

I,

Single-family,

30

Year,

8.5%,

5/15/23

-

12/15/24

........

United

States

10,743

10,778

GNMA

II,

30

Year,

6.5%,

4/20/34

..........................

United

States

17,171

17,206

GNMA

II,

Single-family,

30

Year,

2%,

8/20/51

.................

United

States

5,560,026

4,970,802

GNMA

II,

Single-family,

30

Year,

2%,

12/20/51

................

United

States

12,184,817

10,845,817

GNMA

II,

Single-family,

30

Year,

2.5%,

6/20/51

...............

United

States

12,397,902

11,395,295

GNMA

II,

Single-family,

30

Year,

2.5%,

7/20/51

...............

United

States

5,223,358

4,800,652

GNMA

II,

Single-family,

30

Year,

2.5%,

8/20/51

...............

United

States

34,922,610

32,034,557

GNMA

II,

Single-family,

30

Year,

2.5%,

10/20/51

..............

United

States

11,401,666

10,477,609

GNMA

II,

Single-family,

30

Year,

3%,

12/20/42

-

9/20/45

........

United

States

3,497,172

3,355,445

GNMA

II,

Single-family,

30

Year,

3%,

4/20/46

.................

United

States

6,685,798

6,420,275

GNMA

II,

Single-family,

30

Year,

3%,

7/20/51

.................

United

States

17,715,838

16,758,648

GNMA

II,

Single-family,

30

Year,

3%,

8/20/51

.................

United

States

6,800,605

6,430,279

GNMA

II,

Single-family,

30

Year,

3%,

9/20/51

.................

United

States

17,057,468

16,114,492

GNMA

II,

Single-family,

30

Year,

3%,

10/20/51

................

United

States

18,519,088

17,510,050

GNMA

II,

Single-family,

30

Year,

3%,

11/20/51

................

United

States

21,414,870

20,242,938

GNMA

II,

Single-family,

30

Year,

3.5%,

9/20/42

...............

United

States

7,242,028

7,192,338

GNMA

II,

Single-family,

30

Year,

3.5%,

11/20/42

..............

United

States

4,401,551

4,323,499

GNMA

II,

Single-family,

30

Year,

3.5%,

1/20/43

...............

United

States

5,916,606

5,859,629

GNMA

II,

Single-family,

30

Year,

3.5%,

5/20/43

...............

United

States

4,730,584

4,698,387

GNMA

II,

Single-family,

30

Year,

3.5%,

5/20/47

...............

United

States

10,828,010

10,674,455

GNMA

II,

Single-family,

30

Year,

3.5%,

9/20/47

...............

United

States

18,306,353

18,094,300

GNMA

II,

Single-family,

30

Year,

3.5%,

12/20/40

-

10/20/47

......

United

States

17,208,679

17,049,574

GNMA

II,

Single-family,

30

Year,

3.5%,

11/20/47

..............

United

States

4,913,499

4,832,672

GNMA

II,

Single-family,

30

Year,

4%,

11/20/39

-

2/20/44

.........

United

States

7,873,869

8,004,596

GNMA

II,

Single-family,

30

Year,

4.5%,

10/20/39

-

10/20/44

......

United

States

10,623,857

11,118,990

GNMA

II,

Single-family,

30

Year,

5%,

9/20/33

-

6/20/44

.........

United

States

4,428,563

4,708,647

GNMA

II,

Single-family,

30

Year,

5.5%,

5/20/34

-

6/20/38

........

United

States

1,915,788

2,060,187

GNMA

II,

Single-family,

30

Year,

6%,

11/20/23

-

7/20/39

.........

United

States

1,270,588

1,390,009

GNMA

II,

Single-family,

30

Year,

6.5%,

12/20/27

-

4/20/32

.......

United

States

179,385

191,219

GNMA

II,

Single-family,

30

Year,

7%,

5/20/32

.................

United

States

4,058

4,411

GNMA

II,

Single-family,

30

Year,

7.5%,

9/20/22

-

11/20/26

.......

United

States

14,154

14,654

GNMA

II,

Single-family,

30

Year,

8%,

8/20/26

.................

United

States

1,867

1,964

284,756,049

Total

Mortgage-Backed

Securities

(Cost

$552,527,808)

...........................

505,561,561

Total

Long

Term

Investments

(Cost

$674,271,839)

...............................

621,764,359

a

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

U.S.

Government

Securities

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FUS-10

See

Abbreviations

on

page

FUS-

19

.

Short

Term

Investments

5.5%

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Repurchase

Agreements

5.5%

c

Joint

Repurchase

Agreement,

1.411%,

7/01/22

(Maturity

Value

$36,354,949)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$19,897,791)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$1,036,116)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$15,421,042)

Collateralized

by

U.S.

Government

Agency

Securities,

2%

-

6%,

12/28/37

-

12/20/51;

U.S.

Government

Agency

Strips,

7/15/23;

and

U.S.

Treasury

Notes,

0.25%

-

0.75%,

7/31/25

-

3/31/26

(valued

at

$37,091,877)

.......................................

36,353,524

$

36,353,524

Total

Repurchase

Agreements

(Cost

$36,353,524)

...............................

36,353,524

Total

Short

Term

Investments

(Cost

$36,353,524

)

................................

36,353,524

a

Total

Investments

(Cost

$710,625,363)

99.8%

...................................

$658,117,883

Other

Assets,

less

Liabilities

0.2%

.............................................

1,318,478

Net

Assets

100.0%

...........................................................

$659,436,361

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Principal

amount

of

security

is

adjusted

for

inflation.

See

Note

1(d).

b

Adjustable

Rate

Mortgage-Backed

Security

(ARM);

the

rate

shown

is

the

effective

rate

at

period

end.

ARM

rates

are

not

based

on

a

published

reference

rate

and

spread,

but

instead

pass-through

weighted

average

interest

income

inclusive

of

any

caps

or

floors,

if

applicable,

from

the

underlying

mortgage

loans

in

which

the

majority

of

mortgages

pay

interest

based

on

the

index

shown

at

their

designated

reset

dates

plus

a

spread,

less

the

applicable

servicing

and

guaranty

fee

(MBS

margin).

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FUS-11

Franklin

U.S.

Government

Securities

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$674,271,839

Cost

-

Unaffiliated

repurchase

agreements

......................................................

36,353,524

Value

-

Unaffiliated

issuers

..................................................................

$621,764,359

Value

-

Unaffiliated

repurchase

agreements

......................................................

36,353,524

Receivables:

Investment

securities

sold

...................................................................

44,915

Capital

shares

sold

........................................................................

144,321

Interest

.................................................................................

2,325,855

Total

assets

..........................................................................

660,632,974

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

389,405

Management

fees

.........................................................................

265,887

Distribution

fees

..........................................................................

128,028

Reports

to

shareholders

fees

................................................................

203,342

Trustees'

fees

and

expenses

.................................................................

516

Accrued

expenses

and

other

liabilities

...........................................................

209,435

Total

liabilities

.........................................................................

1,196,613

Net

assets,

at

value

.................................................................

$659,436,361

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$824,948,753

Total

distributable

earnings

(losses)

.............................................................

(165,512,392)

Net

assets,

at

value

.................................................................

$659,436,361

Franklin

U.S.

Government

Securities

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$40,189,524

Shares

outstanding

........................................................................

3,745,116

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$10.73

Class

2:

Net

assets,

at

value

.......................................................................

$619,246,837

Shares

outstanding

........................................................................

59,047,700

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$10.49

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FUS-12

Franklin

U.S.

Government

Securities

VIP

Fund

Investment

income:

Interest:

Unaffiliated

issuers:

Paydown

gain

(loss)

.....................................................................

$(2,929,334)

Paid

in

cash

a

...........................................................................

9,966,722

Total

investment

income

...................................................................

7,037,388

Expenses:

Management

fees

(Note

3

a

)

...................................................................

1,715,334

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

831,416

Custodian

fees

(Note

4

)

......................................................................

4,185

Reports

to

shareholders

fees

..................................................................

53,992

Professional

fees

...........................................................................

38,812

Trustees'

fees

and

expenses

..................................................................

3,952

Other

....................................................................................

77,194

Total

expenses

.........................................................................

2,724,885

Expense

reductions

(Note

4

)

...............................................................

(2,342)

Net

expenses

.........................................................................

2,722,543

Net

investment

income

................................................................

4,314,845

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

(1,427,852)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(55,983,679)

Net

realized

and

unrealized

gain

(loss)

............................................................

(57,411,531)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(53,096,686)

a

Includes

amortization

of

premium

and

accretion

of

discount.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FUS-13

Franklin

U.S.

Government

Securities

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$4,314,845

$6,406,162

Net

realized

gain

(loss)

.................................................

(1,427,852)

(1,218,981)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(55,983,679)

(20,478,100)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(53,096,686)

(15,290,919)

Distributions

to

shareholders:

Class

1

.............................................................

(1,054,646)

(1,306,180)

Class

2

.............................................................

(14,822,650)

(18,489,910)

Total

distributions

to

shareholders

..........................................

(15,877,296)

(19,796,090)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

(1,394,825)

(4,450,471)

Class

2

.............................................................

(46,267,746)

(8,028,841)

Total

capital

share

transactions

............................................

(47,662,571)

(12,479,312)

Net

increase

(decrease)

in

net

assets

...................................

(116,636,553)

(47,566,321)

Net

assets:

Beginning

of

period

.....................................................

776,072,914

823,639,235

End

of

period

..........................................................

$659,436,361

$776,072,914

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

Franklin

U.S.

Government

Securities

VIP

Fund

FUS-14

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Templeton

Variable

Insurance

Products

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

U.S.

Government

Securities

VIP

Fund

(Fund)

is

included

in

this

report.

Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

At

June

30,

2022,

58.6%

of

the

Fund’s

shares

were

held

through

one

insurance

company.

Investment

activities

of

these

insurance

company

separate

accounts

could

have

a

material

impact

on

the

Fund.

The

Fund

offers

two

classes

of

shares:

Class

1

and

Class

2.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege.

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Debt

securities

generally

trade

in

the over-the-counter

market

rather

than

on

a

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-

based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

b.

Joint

Repurchase

Agreement

The

Fund

enters

into

a

joint

repurchase

agreement

whereby

its

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Fund's

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Fund,

certain

MRAs

may

permit

the

non-

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FUS-15

Semiannual

Report

Franklin

U.S.

Government

Securities

VIP

Fund

(continued)

defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Fund

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Fund

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the Fund

at

period

end,

as

indicated

in

the

Schedule

of

Investments,

had

been

entered

into

on

June

30,

2022.

c.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

d.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Paydown

gains

and

losses

are

recorded

separately

in

the

Statement

of

Operations.

Distributions

to

shareholders

are

recorded

on

the

ex-

dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

Inflation-indexed

bonds

are

adjusted

for

inflation

through

periodic

increases

or

decreases

in

the

security's

interest

accruals,

face

amount,

or

principal

redemption

value,

by

amounts

corresponding

to

the

rate

of

inflation

as

measured

by

an

index.

Any

increase

or

decrease

in

the

face

amount

or

principal

redemption

value

will

be

included

as

interest

income

in

the

Statement

of

Operations.

e.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

f.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

b.

Joint

Repurchase

Agreement

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FUS-16

Semiannual

Report

Franklin

U.S.

Government

Securities

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was 0.485%

of

the

Fund’s

average daily

net

assets. 

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

73,615

$824,494

329,260

$3,998,564

Shares

issued

in

reinvestment

of

distributions

..........

99,589

1,054,646

109,579

1,306,180

Shares

redeemed

...............................

(287,825)

(3,273,965)

(806,875)

(9,755,215)

Net

increase

(decrease)

..........................

(114,621)

$(1,394,825)

(368,036)

$(4,450,471)

Class

2

Shares:

Shares

sold

...................................

1,532,181

$16,914,888

7,704,467

$91,000,875

Shares

issued

in

reinvestment

of

distributions

..........

1,432,140

14,822,650

1,585,755

18,489,910

Shares

redeemed

...............................

(7,066,313)

(78,005,284)

(9,976,144)

(117,519,626)

Net

increase

(decrease)

..........................

(4,101,992)

$(46,267,746)

(685,922)

$(8,028,841)

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

In

excess

of

$15

billion

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FUS-17

Semiannual

Report

Franklin

U.S.

Government

Securities

VIP

Fund

(continued)

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

a

distribution

plan

for

Class

2

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plan,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.35%

per

year

of

its

average

daily

net

assets.

The

Board

has

agreed

to

limit

the

current

rate

to

0.25%

per

year

for

Class

2.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rate,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

June

30,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations.

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains. 

At

December

31,

2021,

the

capital

loss

carryforwards

were

as

follows:

At

June

30,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

paydown

losses

and

bond

discounts

and

premiums.

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$45,193,949

Long

term

................................................................................

67,027,146

Total

capital

loss

carryforwards

...............................................................

$112,221,095

Cost

of

investments

..........................................................................

$713,400,352

Unrealized

appreciation

........................................................................

$931,692

Unrealized

depreciation

........................................................................

(56,214,161)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(55,282,469)

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FUS-18

Semiannual

Report

Franklin

U.S.

Government

Securities

VIP

Fund

(continued)

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

aggregated

$31,786,767

and

$91,062,501,

respectively.

7.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

8.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

9.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

10.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

At

June

30,

2022,

all

of

the

Fund’s

investments

in

financial

instruments

carried

at

fair

value

were

valued

using

Level

2

inputs.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FUS-19

Semiannual

Report

Franklin

U.S.

Government

Securities

VIP

Fund

(continued)

11.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

12.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

Cu

r

rency

USD

United

States

Dollar

Selected

Portfolio

CMT

Constant

Monthly

U.S.

Treasury

Securities

Yield

Curve

Rate

Index

COFI

Cost

of

Funds

Index

FHLB

Federal

Home

Loan

Banks

FHLMC

Federal

Home

Loan

Mortgage

Corp.

FNMA

Federal

National

Mortgage

Association

GNMA

Government

National

Mortgage

Association

LIBOR

London

Inter-Bank

Offered

Rate

MBS

Mortgage-Backed

Security

T-Note

Treasury

Note

FVA-1

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

This

semiannual

report

for

Franklin

VolSmart

Allocation

VIP

Fund

covers

the

period

ended

June

30,

2022

.

Class

1

Performance

Summary

as

of

June

30,

2022

The

Fund’s

Class

1

Shares

posted

a

-14.12%

total

return*

for

the

six-month

period

ended

June

30,

2022.

*Prior

to

5/1/15,

the

Fund

followed

different

investment

strategies,

had

different

subadvisory

arrangements,

allocated

its

core

portfolio

differently,

had

a

different

current

target

volatility

goal

and

made

different

use

of

derivative

instruments.

As

a

result,

the

Fund

generally

held

different

investments

and

had

a

different

investment

profile.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

For

the

period

beginning

5/20/22,

Class

1

performance

reflects

no

12b-1

fee

expenses,

which

affects

future

performance.

Class

1

Performance

prior

to

5/20/22

reflects

historical

Class

5

performance,

which

includes

a

12b-1

fee

expense

of

0.15%

per

year.

Since

5/20/22

(effective

date),

the

aggregate

total

return

of

Class

1

shares

was

-1.99%.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

FVA-2

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

total

return

(including

income

and

capital

gains)

while

seeking

to

manage

volatility.

The

Fund

is

structured

as

a

limited

fund-of-funds

that

seeks

to

achieve

its

investment

goal

by

investing

its

assets

partially

in

other

mutual

funds,

which

include

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange-traded

funds

(ETFs)

and

third-party

ETFs

(underlying

funds).

Each

underlying

fund

is

allocated

to

the

equity,

fixed

income,

multi-

class

or

cash

asset

class

based

on

its

predominant

asset

class

and

strategies.

These

underlying

funds,

in

turn,

invest

in

a

variety

of

U.S.

and

foreign

equity,

fixed-income

and

money

market

securities.

The

Fund

also

obtains

exposure

to

certain

strategies

and

investments

in

its

core

portfolio

by

directly

investing

in

the

securities

and

instruments

in

that

strategy.

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

Generally,

investors

should

be

comfortable

with

fluctuation

in

the

value

of

their

investments,

especially

over

the

short

term.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

There

can

be

no

guarantee

that

the

Fund’s

volatility

management

strategy

will

be

successful;

moreover,

achieving

the

Fund’s

strategy

of

limiting

the

Fund’s

annual

volatility

does

not

mean

the

Fund

will

achieve

a

positive

or

competitive

return.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Changes

in

an

issuer's

financial

strength

or

in

a

security's

or

government's

credit

rating

may

affect

a

security's

value.

Derivative

investments

involve

costs

and

can

create

economic

leverage

in

the

Fund’s

portfolio,

which

may

result

in

significant

volatility

and

cause

the

Fund

to

participate

in

losses

(as

well

as

gains)

in

an

amount

that

exceeds

the

Fund’s

initial

investment.

With

over-the-counter

derivatives,

there

is

the

risk

that

the

other

party

to

the

transaction

will

fail

to

perform.

Because

the

Fund

invests

in

underlying

funds,

and

the

Fund’s

performance

is

directly

related

to

the

performance

of

the

underlying

funds

held

by

it,

the

ability

of

the

Fund

to

achieve

its

investment

goal

is

directly

related

to

the

ability

of

the

underlying

funds

to

meet

their

investment

goals.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia's

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia's

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

into

a

broad

asset

class.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

For

comparison,

the

Fund’s

equity

benchmark,

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

posted

a

-19.96%

total

return,

while

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

U.S.

Aggregate

Bond

Index,

posted

a

-10.35%

total

return

for

the

period

under

review.

1

The

Fund’s

Blended

Benchmark,

a

combination

of

leading

stock

and

bond

indexes

that

better

reflects

the

asset

allocation

of

the

Fund’s

portfolio,

posted

a

-15.12%

total

return

for

the

same

period.

2

Portfolio

Composition

*

6/30/22

%

of

Total

Net

Assets

Common

Stocks

63.5%

Domestic

Fixed

Income

24.1%

Domestic

Hybrid

8.0%

Foreign

Equity

1.3%

Short-Term

Investments

&

Other

Net

Assets

3.1%

1.

Source:

Morningstar.

2.

Source:

FactSet.

The

Fund’s

Blended

Benchmark

was

calculated

internally

and

was

composed

of

60%

S&P

500,

30%

Bloomberg

U.S.

Aggregate

Bond

Index

and

10%

Bloomberg

1-3

Month

U.S.

Treasury

Bill

Index.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

Franklin

VolSmart

Allocation

VIP

Fund

FVA-3

Semiannual

Report

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

S&P

500,

posted

a

-19.96%

total

return

for

the

six

months

ended

June

30,

2022.

1

Concerns

surrounding

higher

inflation,

geopolitical

stability

and

rising

interest

rates

pressured

stocks,

particularly

in

the

second

half

of

the

period.

Elevated

demand

combined

with

supply

chain

disruptions

led

to

the

highest

inflation

since

1981

and

borrowing

costs

increased

from

historically

low

levels.

Russia’s

invasion

of

Ukraine

injected

further

uncertainty

into

financial

markets,

provoking

significant

volatility

in

commodity

and

equity

prices.

Gross

domestic

product

growth

contracted

in

the

first

quarter

of

2022

amid

lower

investments

in

inventories

and

a

growing

trade

deficit.

Private

domestic

investment

slowed

sharply,

while

government

spending

declined

in

the

first

quarter.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

The

inflation

rate

was

elevated

during

the

six-month

period

amid

increased

demand

and

supply

chain

bottlenecks.

U.S.

consumer

spending

on

goods

remained

strong

during

the

first

half

of

the

period,

adding

to

pressure

on

the

prices

of

many

products.

Energy

costs

also

rose,

as

oil

prices

increased

significantly,

driven

by

greater

global

demand

and

sanctions

on

Russia,

one

of

the

world’s

largest

oil

producers.

The

personal

consumption

expenditures

index,

a

measure

of

inflation,

rose

dramatically

during

the

period,

representing

the

highest

12-month

increase

in

decades.

The

unemployment

rate

declined

from

4.0%

in

January

2022

to

3.6%

in

June

2022,

but

a

relative

lack

of

available

workers

fueled

wage

growth,

adding

to

some

investors’

inflation

concerns.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

2022

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

will

continue

to

reduce

its

bond

holdings,

and

it

anticipated

instituting

further

interest-rate

increases

at

future

meetings.

The

U.S.

bond

market,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index,

posted

a

-10.35%

total

return

for

the

six

months

ended

June

30,

2022.

1

High

inflation

amid

supply

chain

disruptions

and

increased

consumer

spending

led

to

significantly

tighter

monetary

policy,

reducing

the

value

of

most

bonds.

Geopolitical

instability

disrupted

financial

markets

following

Russia’s

invasion

of

Ukraine,

adding

to

the

uncertainty

surrounding

the

global

economy.

The

yield

curve

flattened

notably

during

the

period,

reflecting

investors’

expectations

that

short-term

interest

rates

would

continue

to

rise,

while

the

outlook

for

long-term

economic

growth

was

uncertain.

U.S.

Treasury

(UST)

bonds,

as

measured

by

the

Bloomberg

U.S.

Treasury

Index,

posted

a

-9.14%

total

return

for

the

six-month

period.

1

The

10-year

UST

yield

(which

moves

inversely

to

price)

grew

notably,

particularly

beginning

in

March

2022,

amid

high

inflation

and

the

Fed’s

tightening

monetary

stance.

Mortgage-backed

securities

(MBS),

as

measured

by

the

Bloomberg

U.S.

MBS

Index,

posted

a

-8.78%

total

return

for

the

period

as

mortgage

rates

rose

to

the

highest

level

in

over

a

decade.

1

Corporate

bond

prices

also

declined

overall,

constrained

by

inflation,

rising

interest

rates

and

concerns

about

the

impact

of

higher

interest

rates

on

corporate

borrowing

costs

and

the

wider

economy.

Corporate

yield

spreads,

a

measure

of

the

difference

in

yields

between

corporate

bonds

and

similarly-dated

USTs,

rose,

reflecting

investors’

increased

risk-aversion

preferences.

In

this

environment,

high-yield

corporate

bonds,

as

represented

by

the

Bloomberg

U.S.

Corporate

High

Yield

Bond

Index,

posted

a

-14.19%

total

return,

and

investment-grade

corporate

bonds,

as

represented

by

the

Bloomberg

U.S.

Corporate

Bond

Index,

posted

a

-14.39%

total

return.

1

Investment

Strategy

Under

normal

market

conditions,

the

Fund

seeks

to

achieve

its

investment

goal

by

allocating

its

assets

across

certain

asset

classes,

sectors

and

strategies

in

an

attempt

to

produce

a

diversified

portfolio

that

will

generate

returns,

while

minimizing

the

expected

volatility

of

the

Fund’s

returns

Top

10

Holdings

6/30/22

Issuer

%

of

Total

Net

Assets

a

a

Franklin

Liberty

U.S.

Core

Bond

ETF

15.6%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

8.5%

Franklin

Income

VIP

Fund,

Class

1

8.0%

Microsoft

Corp.

4.7%

Apple,

Inc.

2.2%

UnitedHealth

Group,

Inc.

1.5%

Texas

Instruments,

Inc.

1.4%

Raytheon

Technologies

Corp.

1.3%

iShares

Core

MSCI

EAFE

ETF

1.3%

Roper

Technologies,

Inc.

1.2%

Franklin

VolSmart

Allocation

VIP

Fund

FVA-4

Semiannual

Report

so

that

volatility

does

not

exceed

a

target

of

10%

per

year

(volatility

within

the

10%

target

is

referred

to

as

“Target

Volatility”).

The

Fund’s

assets

are

primarily

invested

in

its

“core

portfolio,”

which

is

principally

composed

of

various

U.S.

equity

and

fixed

income

investments

and

strategies,

including

investments

in

other

mutual

funds

and

ETFs

that

provide

exposure

to

such

investments

and

strategies.

In

addition,

the

Fund

employs

a

volatility

management

strategy,

which

is

designed

to

manage

the

expected

volatility

of

the

Fund’s

returns

so

that

volatility

remains

within

the

Fund’s

Target

Volatility.

Thus,

the

Fund

may

utilize

certain

derivative

instruments

(primarily

futures

contracts

on

indexes)

in

an

effort

to

adjust

the

Fund’s

expected

volatility

to

within

the

Target

Volatility.

There

is

no

guarantee

that

the

Fund

will

stay

within

its

Target

Volatility.

Manager’s

Discussion

Asset

Allocation

The

Fund’s

cross-asset

allocation

positioning,

in

aggregate,

detracted

from

relative

performance

throughout

much

of

the

period

as

the

portfolio’s

equity

position

remained

toward

the

upper

band

of

its

allowable

range.

The

overweight

exposure

to

equities

and

underweight

to

fixed

income

had

a

negative

impact

amid

growing

investor

concerns

over

rising

inflation,

tightening

monetary

policy,

geopolitical

instability

and

slowing

economic

growth.

However,

the

Fund’s

volatility

hedges

served

to

reduce

equity

weight

and

added

value

beyond

the

core

equity

allocation

detraction.

Equities

The

Franklin

Rising

Dividends

Strategy,

the

largest

underlying

equity

strategy

in

the

Fund,

contributed

to

performance,

due

in

part

to

its

focus

on

dividend-paying

equities.

The

Franklin

Smart

Beta

Equity

Strategy

also

contributed,

as

its

overweighting

to

quality

and

style

value

factors

made

positive

impacts.

Fixed

Income

The

Fund’s

fixed

income

exposures

detracted

from

relative

returns.

The

Franklin

Core

Bond

ETF

comprised

the

bulk

of

the

fixed

income

allocation

and

declined,

underperforming

its

benchmark.

Multi-Asset

A

small

allocation

to

the

Franklin

Income

Fund

was

a

meaningful

contributor

to

relative

performance

for

the

period.

The

fund’s

dividend

orientation

and

exposure

to

the

energy

sector

were

primary

drivers

of

outperformance.

Hedging

Overall,

hedging

strategies

had

a

positive

impact

on

performance

as

equity

markets

fell

precipitously

during

the

period.

Specifically,

the

volatility

overlay

added

meaningful

value

as

it

was

engaged

for

much

of

the

period,

building

in

position

as

a

result.

Positioning

There

were

no

portfolio

changes

during

the

period.

Derivatives

The

Fund

holds

two

hedging

strategies:

one

tail

hedge,

or

VIX-linked

note,

and

one

volatility

overlay,

which

holds

S&P

500

Index

futures

when

engaged.

Thank

you

for

your

participation

in

Franklin

VolSmart

Allocation

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Class

1

Fund

Expenses

Franklin

VolSmart

Allocation

VIP

Fund

FVA-5

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

May

20,

2022

for

Actual;

January

1,

2022

for

Hypothetical.

2.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

For

Actual

expenses,

the

multiplier

is

41/365

to

reflect

the

number

of

days

since

the

effective

date.

3.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

any

ongoing

expenses

of

the

Contract

for

which

the

Fund

is

an

investment

option

or

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

1

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

5/20/22–6/30/22

2,3

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

2,3

a

Net

Annualized

Expense

Ratio

3

1

$1,000

$980.10

$0.69

$1,024.10

$0.15

0.65%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

VolSmart

Allocation

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FVA-6

a

Period

Ended

June

30,

2022

a

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

...................................................................

$13.60

Income

from

investment

operations

b

:

Net

investment

income

c,d

..........................................................................

0.35

Net

realized

and

unrealized

gains

(losses)

.............................................................

(0.62)

Total

from

investment

operations

......................................................................

(0.27)

Less

distributions

from:

Net

investment

income

............................................................................

(0.25)

Net

realized

gains

...............................................................................

(1.21)

Total

distributions

.................................................................................

(1.46)

Net

asset

value,

end

of

period

........................................................................

$11.87

Total

return

e

.....................................................................................

(1.99)%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

.......................................................

0.86%

Expenses

net

of

waiver

and

payments

by

affiliates

g,h

.......................................................

0.65%

Net

investment

income

.............................................................................

5.41%

Supplemental

data

Net

assets,

end

of

period

(000’s)

......................................................................

$4

Portfolio

turnover

rate

..............................................................................

26.79%

a

For

the

period

May

20,

2022

(effective

date)

to

June

30,

2022.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Based

on

average

daily

shares

outstanding.

e

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.10%

for

the

period

ended

June

30,

2022.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FVA-7

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.57

$14.55

$12.60

$10.82

$11.67

$10.10

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.13

0.26

0.24

0.22

0.21

0.16

Net

realized

and

unrealized

gains

(losses)

(2.31)

2.19

1.86

1.70

(1.02)

1.41

Total

from

investment

operations

........

(2.18)

2.45

2.10

1.92

(0.81)

1.57

Less

distributions

from:

Net

investment

income

..............

(0.25)

(0.64)

(0.15)

—

(0.04)

—

Net

realized

gains

.................

(1.21)

(0.79)

—

(0.14)

—

—

Total

distributions

...................

(1.46)

(1.43)

(0.15)

(0.14)

(0.04)

—

Net

asset

value,

end

of

period

..........

$11.93

$15.57

$14.55

$12.60

$10.82

$11.67

Total

return

d

.......................

(14.01)%

17.62%

16.85%

17.82%

(6.93)%

15.54%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.87%

0.88%

0.88%

1.12%

1.10%

1.14%

Expenses

net

of

waiver

and

payments

by

affiliates

f

,g

.........................

0.65%

0.65%

0.65%

0.90%

0.75%

0.73%

Net

investment

income

...............

1.86%

1.75%

1.85%

1.87%

1.85%

1.44%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$32

$48

$45

$39

$33

$36

Portfolio

turnover

rate

................

26.79%

41.28%

69.19%

4.99%

6.28%

5.69%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.10%

for

the

period

ended

June

30,

2022.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FVA-8

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

5

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.52

$14.52

$12.59

$10.80

$11.65

$10.07

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.12

0.23

0.23

0.23

0.22

0.17

Net

realized

and

unrealized

gains

(losses)

(2.30)

2.18

1.86

1.70

(1.01)

1.41

Total

from

investment

operations

........

(2.18)

2.41

2.09

1.93

(0.79)

1.58

Less

distributions

from:

Net

investment

income

..............

(0.23)

(0.62)

(0.16)

—

(0.06)

—

Net

realized

gains

.................

(1.21)

(0.79)

—

(0.14)

—

—

Total

distributions

...................

(1.44)

(1.41)

(0.16)

(0.14)

(0.06)

—

Net

asset

value,

end

of

period

..........

$11.90

$15.52

$14.52

$12.59

$10.80

$11.65

Total

return

d

.......................

(14.08)%

17.36%

16.78%

17.95%

(6.85)%

15.69%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.02%

1.03%

1.03%

1.02%

1.00%

1.04%

Expenses

net

of

waiver

and

payments

by

affiliates

f,g

.........................

0.80%

0.80%

0.80%

0.80%

0.65%

0.63%

Net

investment

income

...............

1.76%

1.57%

1.70%

1.97%

1.95%

1.54%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$169,723

$209,784

$195,818

$185,381

$171,173

$188,240

Portfolio

turnover

rate

................

26.79%

41.28%

69.19%

4.99%

6.28%

5.69%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.10%

for

the

period

ended

June

30,

2022.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

VolSmart

Allocation

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FVA-9

a

a

Shares

a

Value

a

Common

Stocks

63.5%

Aerospace

&

Defense

2.8%

Curtiss-Wright

Corp.

.................................................

405

$

53,484

General

Dynamics

Corp.

..............................................

5,105

1,129,481

Huntington

Ingalls

Industries,

Inc.

.......................................

271

59,029

L3Harris

Technologies,

Inc.

............................................

906

218,980

Lockheed

Martin

Corp.

...............................................

1,426

613,123

Northrop

Grumman

Corp.

.............................................

843

403,435

Raytheon

Technologies

Corp.

..........................................

23,361

2,245,226

4,722,758

Air

Freight

&

Logistics

1.2%

CH

Robinson

Worldwide,

Inc.

..........................................

544

55,145

United

Parcel

Service,

Inc.,

B

..........................................

10,498

1,916,305

1,971,450

Automobiles

0.4%

a

Tesla,

Inc.

.........................................................

1,124

756,924

a

Banks

0.4%

First

Horizon

Corp.

..................................................

2,682

58,628

JPMorgan

Chase

&

Co.

...............................................

5,990

674,534

733,162

Beverages

1.2%

Coca-Cola

Co.

(The)

.................................................

14,553

915,529

PepsiCo,

Inc.

......................................................

6,425

1,070,791

1,986,320

Biotechnology

2.0%

AbbVie,

Inc.

.......................................................

12,499

1,914,347

Amgen,

Inc.

.......................................................

2,880

700,704

a

Regeneron

Pharmaceuticals,

Inc.

.......................................

562

332,215

a

United

Therapeutics

Corp.

.............................................

255

60,088

a

Vertex

Pharmaceuticals,

Inc.

...........................................

1,395

393,097

3,400,451

Building

Products

0.9%

a

Builders

FirstSource

,

Inc.

.............................................

977

52,465

Carlisle

Cos.,

Inc.

...................................................

2,844

678,607

Johnson

Controls

International

plc

.......................................

16,147

773,118

Owens

Corning

.....................................................

603

44,809

1,548,999

Capital

Markets

0.6%

Blackstone,

Inc.

....................................................

3,763

343,298

Nasdaq,

Inc.

.......................................................

4,225

644,482

987,780

Chemicals

3.3%

Air

Products

and

Chemicals,

Inc.

........................................

5,490

1,320,235

Albemarle

Corp.

....................................................

5,130

1,072,067

CF

Industries

Holdings,

Inc.

...........................................

1,037

88,902

Ecolab,

Inc.

........................................................

4,085

628,110

Huntsman

Corp.

....................................................

1,576

44,680

Linde

plc

..........................................................

6,395

1,838,754

LyondellBasell

Industries

NV,

A

.........................................

1,217

106,439

Mosaic

Co.

(The)

...................................................

1,668

78,780

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FVA-10

a

a

Shares

a

Value

a

Common

Stocks

(continued)

Chemicals

(continued)

Sherwin-Williams

Co.

(The)

............................................

1,600

$

358,256

5,536,223

Commercial

Services

&

Supplies

0.7%

Cintas

Corp.

.......................................................

2,920

1,090,708

Rollins,

Inc.

........................................................

1,649

57,583

1,148,291

Communications

Equipment

0.6%

a

Arista

Networks,

Inc.

.................................................

1,292

121,112

Cisco

Systems,

Inc.

.................................................

18,548

790,887

Juniper

Networks,

Inc.

................................................

1,904

54,264

966,263

Consumer

Finance

0.4%

American

Express

Co.

...............................................

2,661

368,868

Capital

One

Financial

Corp.

...........................................

1,886

196,502

a

Credit

Acceptance

Corp.

..............................................

100

47,341

Synchrony

Financial

.................................................

2,504

69,161

681,872

Containers

&

Packaging

0.1%

Graphic

Packaging

Holding

Co.

.........................................

2,589

53,075

Packaging

Corp.

of

America

...........................................

489

67,237

Sealed

Air

Corp.

....................................................

945

54,545

174,857

Distributors

0.0%

†

Genuine

Parts

Co.

..................................................

621

82,593

Diversified

Consumer

Services

0.1%

a

Grand

Canyon

Education,

Inc.

..........................................

656

61,789

H&R

Block,

Inc.

.....................................................

1,848

65,271

Service

Corp.

International

............................................

954

65,940

193,000

Diversified

Financial

Services

0.4%

a

Berkshire

Hathaway,

Inc.,

B

............................................

2,593

707,941

a

Diversified

Telecommunication

Services

0.8%

AT&T,

Inc.

.........................................................

20,111

421,527

Lumen

Technologies,

Inc.

.............................................

5,764

62,885

Verizon

Communications,

Inc.

..........................................

17,040

864,780

1,349,192

Electric

Utilities

0.2%

Exelon

Corp.

.......................................................

4,837

219,213

NRG

Energy,

Inc.

...................................................

1,599

61,034

OGE

Energy

Corp.

..................................................

1,370

52,827

333,074

Electrical

Equipment

0.2%

nVent

Electric

plc

...................................................

11,620

364,055

Electronic

Equipment,

Instruments

&

Components

0.2%

Amphenol

Corp.,

A

..................................................

2,510

161,594

a

Arrow

Electronics,

Inc.

...............................................

475

53,243

Avnet,

Inc.

........................................................

1,181

50,641

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FVA-11

a

a

Shares

a

Value

a

Common

Stocks

(continued)

Electronic

Equipment,

Instruments

&

Components

(continued)

Corning,

Inc.

.......................................................

3,519

$

110,883

Jabil,

Inc.

.........................................................

962

49,264

425,625

Entertainment

0.0%

†

World

Wrestling

Entertainment,

Inc.,

A

....................................

852

53,241

Equity

Real

Estate

Investment

Trusts

(REITs)

0.7%

American

Campus

Communities,

Inc.

....................................

881

56,798

Cousins

Properties,

Inc.

..............................................

1,664

48,639

EPR

Properties

.....................................................

1,114

52,280

Extra

Space

Storage,

Inc.

.............................................

553

94,076

Gaming

and

Leisure

Properties,

Inc.

.....................................

1,236

56,683

Kimco

Realty

Corp.

..................................................

2,933

57,985

Life

Storage,

Inc.

....................................................

495

55,272

Medical

Properties

Trust,

Inc.

..........................................

3,075

46,955

National

Retail

Properties,

Inc.

.........................................

1,282

55,126

Omega

Healthcare

Investors,

Inc.

.......................................

1,933

54,491

Public

Storage

.....................................................

803

251,074

Realty

Income

Corp.

.................................................

1,501

102,458

Rexford

Industrial

Realty,

Inc.

..........................................

918

52,868

SL

Green

Realty

Corp.

...............................................

951

43,889

VICI

Properties,

Inc.

.................................................

3,839

114,364

WP

Carey,

Inc.

.....................................................

952

78,883

1,221,841

Food

&

Staples

Retailing

1.1%

Costco

Wholesale

Corp.

..............................................

1,889

905,360

Kroger

Co.

(The)

....................................................

1,635

77,384

Walgreens

Boots

Alliance,

Inc.

.........................................

3,230

122,417

Walmart,

Inc.

......................................................

5,910

718,538

1,823,699

Food

Products

1.1%

Archer-Daniels-Midland

Co.

...........................................

2,937

227,911

Bunge

Ltd.

........................................................

643

58,314

General

Mills,

Inc.

...................................................

2,600

196,170

Hershey

Co.

(The)

..................................................

689

148,245

McCormick

&

Co.,

Inc.

...............................................

10,020

834,165

Mondelez

International,

Inc.,

A

..........................................

4,200

260,778

Tyson

Foods,

Inc.,

A

.................................................

1,354

116,525

1,842,108

Gas

Utilities

0.0%

†

National

Fuel

Gas

Co.

................................................

782

51,651

Health

Care

Equipment

&

Supplies

3.5%

Abbott

Laboratories

..................................................

10,510

1,141,912

Becton

Dickinson

and

Co.

.............................................

6,931

1,708,699

a

Edwards

Lifesciences

Corp.

...........................................

2,769

263,304

a

Hologic

,

Inc.

.......................................................

776

53,777

Medtronic

plc

......................................................

12,900

1,157,775

STERIS

plc

........................................................

400

82,460

Stryker

Corp.

......................................................

7,965

1,584,477

5,992,404

Health

Care

Providers

&

Services

3.1%

AmerisourceBergen

Corp.

.............................................

697

98,612

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FVA-12

a

a

Shares

a

Value

a

Common

Stocks

(continued)

Health

Care

Providers

&

Services

(continued)

Cardinal

Health,

Inc.

.................................................

1,222

$

63,874

a

Centene

Corp.

.....................................................

2,577

218,040

Chemed

Corp.

.....................................................

118

55,388

Cigna

Corp.

.......................................................

1,539

405,557

CVS

Health

Corp.

...................................................

8,997

833,662

Elevance

Health,

Inc.

................................................

1,257

606,603

HCA

Healthcare,

Inc.

.................................................

1,069

179,656

a

Henry

Schein,

Inc.

...................................................

731

56,097

a

Molina

Healthcare,

Inc.

...............................................

245

68,504

Premier,

Inc.,

A

.....................................................

1,574

56,160

Quest

Diagnostics,

Inc.

...............................................

572

76,065

UnitedHealth

Group,

Inc.

..............................................

4,846

2,489,051

5,207,269

Hotels,

Restaurants

&

Leisure

1.4%

Choice

Hotels

International,

Inc.

........................................

459

51,238

McDonald's

Corp.

...................................................

7,703

1,901,717

Starbucks

Corp.

....................................................

3,000

229,170

Yum!

Brands,

Inc.

...................................................

1,380

156,644

2,338,769

Household

Durables

0.3%

DR

Horton,

Inc.

.....................................................

1,443

95,512

Lennar

Corp.,

A

.....................................................

1,151

81,226

a

NVR,

Inc.

.........................................................

14

56,058

PulteGroup,

Inc.

....................................................

1,284

50,885

Tempur

Sealy

International,

Inc.

........................................

2,292

48,980

Toll

Brothers,

Inc.

...................................................

1,148

51,201

Whirlpool

Corp.

.....................................................

322

49,868

433,730

Household

Products

1.0%

Colgate-Palmolive

Co.

...............................................

8,370

670,772

Procter

&

Gamble

Co.

(The)

...........................................

6,765

972,739

1,643,511

Industrial

Conglomerates

0.7%

Honeywell

International,

Inc.

...........................................

6,980

1,213,194

Insurance

0.8%

American

International

Group,

Inc.

......................................

1,941

99,243

Assured

Guaranty

Ltd.

...............................................

990

55,232

Axis

Capital

Holdings

Ltd.

.............................................

989

56,462

Chubb

Ltd.

........................................................

1,039

204,247

Erie

Indemnity

Co.,

A

.................................................

2,190

420,896

Loews

Corp.

.......................................................

881

52,208

Old

Republic

International

Corp.

........................................

2,425

54,223

Progressive

Corp.

(The)

..............................................

1,457

169,405

Travelers

Cos.,

Inc.

(The)

.............................................

563

95,220

Unum

Group

.......................................................

1,775

60,386

W

R

Berkley

Corp.

..................................................

796

54,335

1,321,857

Interactive

Media

&

Services

1.3%

a

Alphabet,

Inc.,

A

....................................................

448

976,309

a

Alphabet,

Inc.,

C

....................................................

407

890,292

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FVA-13

a

a

Shares

a

Value

a

Common

Stocks

(continued)

Interactive

Media

&

Services

(continued)

a

Meta

Platforms,

Inc.,

A

...............................................

2,685

$

432,956

2,299,557

Internet

&

Direct

Marketing

Retail

0.6%

a

Amazon.com,

Inc.

...................................................

9,138

970,547

a

IT

Services

3.0%

Accenture

plc,

A

....................................................

6,995

1,942,162

Amdocs

Ltd.

.......................................................

802

66,815

Cognizant

Technology

Solutions

Corp.,

A

..................................

2,619

176,756

International

Business

Machines

Corp.

...................................

4,399

621,095

Jack

Henry

&

Associates,

Inc.

..........................................

310

55,806

Mastercard

,

Inc.,

A

..................................................

2,178

687,115

Paychex,

Inc.

......................................................

1,620

184,469

Switch,

Inc.,

A

......................................................

1,700

56,950

Visa,

Inc.,

A

........................................................

6,725

1,324,085

Western

Union

Co.

(The)

..............................................

3,191

52,556

5,167,809

Leisure

Products

0.0%

†

a

Mattel,

Inc.

........................................................

2,312

51,627

a

Life

Sciences

Tools

&

Services

0.8%

Danaher

Corp.

.....................................................

600

152,112

West

Pharmaceutical

Services,

Inc.

......................................

3,810

1,152,030

1,304,142

Machinery

1.0%

Allison

Transmission

Holdings,

Inc.

......................................

1,408

54,138

Crane

Holdings

Co.

..................................................

606

53,061

Donaldson

Co.,

Inc.

.................................................

6,205

298,709

Dover

Corp.

.......................................................

6,194

751,456

PACCAR,

Inc.

......................................................

1,575

129,686

Pentair

plc

........................................................

9,950

455,411

1,742,461

Media

0.1%

Interpublic

Group

of

Cos.,

Inc.

(The)

.....................................

1,954

53,794

Nexstar

Media

Group,

Inc.,

A

...........................................

324

52,773

Omnicom

Group,

Inc.

................................................

1,046

66,536

173,103

Metals

&

Mining

0.2%

a

Cleveland-Cliffs,

Inc.

.................................................

2,997

46,064

Nucor

Corp.

.......................................................

1,305

136,255

Reliance

Steel

&

Aluminum

Co.

.........................................

316

53,676

Steel

Dynamics,

Inc.

.................................................

983

65,025

United

States

Steel

Corp.

.............................................

2,394

42,877

343,897

Mortgage

Real

Estate

Investment

Trusts

(REITs)

0.0%

†

New

Residential

Investment

Corp.

.......................................

5,086

47,401

Multiline

Retail

0.8%

a

Dollar

Tree,

Inc.

....................................................

1,021

159,123

Kohl's

Corp.

.......................................................

1,519

54,213

Macy's,

Inc.

........................................................

2,628

48,145

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FVA-14

a

a

Shares

a

Value

a

Common

Stocks

(continued)

Multiline

Retail

(continued)

Target

Corp.

.......................................................

7,270

$

1,026,742

1,288,223

Multi-Utilities

0.1%

Consolidated

Edison,

Inc.

.............................................

1,610

153,111

NiSource,

Inc.

......................................................

2,001

59,009

212,120

Oil,

Gas

&

Consumable

Fuels

3.0%

APA

Corp.

.........................................................

1,674

58,423

Chevron

Corp.

.....................................................

10,959

1,586,644

ConocoPhillips

.....................................................

6,428

577,299

Continental

Resources,

Inc.

...........................................

812

53,064

Coterra

Energy,

Inc.

.................................................

3,365

86,783

Devon

Energy

Corp.

.................................................

2,731

150,506

Diamondback

Energy,

Inc.

.............................................

748

90,620

EOG

Resources,

Inc.

................................................

7,518

830,288

Exxon

Mobil

Corp.

...................................................

14,372

1,230,818

PDC

Energy,

Inc.

...................................................

658

40,539

Pioneer

Natural

Resources

Co.

.........................................

1,110

247,619

Valero

Energy

Corp.

.................................................

872

92,676

5,045,279

Paper

&

Forest

Products

0.0%

†

Louisiana-Pacific

Corp.

...............................................

854

44,758

Pharmaceuticals

3.7%

Bristol-Myers

Squibb

Co.

..............................................

10,734

826,518

Eli

Lilly

&

Co.

......................................................

3,059

991,820

Johnson

&

Johnson

.................................................

10,881

1,931,486

Merck

&

Co.,

Inc.

...................................................

9,803

893,739

Organon

&

Co.

.....................................................

1,592

53,730

Pfizer,

Inc.

.........................................................

30,425

1,595,183

6,292,476

Professional

Services

0.2%

a

CACI

International,

Inc.,

A

.............................................

207

58,329

a

FTI

Consulting,

Inc.

..................................................

353

63,840

Leidos

Holdings,

Inc.

.................................................

689

69,389

Robert

Half

International,

Inc.

..........................................

655

49,053

Science

Applications

International

Corp.

..................................

681

63,401

304,012

Road

&

Rail

0.8%

a

Avis

Budget

Group,

Inc.

..............................................

319

46,919

JB

Hunt

Transport

Services,

Inc.

........................................

2,545

400,761

Knight-Swift

Transportation

Holdings,

Inc.

.................................

1,204

55,733

Norfolk

Southern

Corp.

...............................................

3,260

740,966

Ryder

System,

Inc.

..................................................

716

50,879

Schneider

National,

Inc.,

B

............................................

2,401

53,734

1,348,992

Semiconductors

&

Semiconductor

Equipment

5.2%

a

Advanced

Micro

Devices,

Inc.

..........................................

8,137

622,236

Analog

Devices,

Inc.

.................................................

11,724

1,712,759

Applied

Materials,

Inc.

................................................

4,106

373,564

Broadcom,

Inc.

.....................................................

1,564

759,807

a

Cirrus

Logic,

Inc.

....................................................

701

50,851

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FVA-15

a

a

Shares

a

Value

a

Common

Stocks

(continued)

Semiconductors

&

Semiconductor

Equipment

(continued)

Intel

Corp.

.........................................................

19,411

$

726,165

KLA

Corp.

.........................................................

766

244,415

Lam

Research

Corp.

.................................................

635

270,605

Micron

Technology,

Inc.

...............................................

5,301

293,039

NVIDIA

Corp.

......................................................

3,684

558,458

a

ON

Semiconductor

Corp.

.............................................

2,138

107,563

QUALCOMM,

Inc.

...................................................

5,390

688,519

Texas

Instruments,

Inc.

...............................................

15,324

2,354,533

8,762,514

Software

6.3%

a

Aspen

Technology,

Inc.

...............................................

304

55,839

a

Cadence

Design

Systems,

Inc.

.........................................

691

103,671

CDK

Global,

Inc.

....................................................

1,052

57,618

a

Fortinet,

Inc.

.......................................................

3,295

186,431

Microsoft

Corp.

.....................................................

30,824

7,916,528

a

Palo

Alto

Networks,

Inc.

..............................................

447

220,791

Roper

Technologies,

Inc.

..............................................

5,165

2,038,367

a

Synopsys,

Inc.

.....................................................

377

114,495

10,693,740

Specialty

Retail

1.9%

Advance

Auto

Parts,

Inc.

..............................................

310

53,658

a

AutoNation,

Inc.

....................................................

483

53,980

a

AutoZone,

Inc.

.....................................................

114

245,000

Best

Buy

Co.,

Inc.

...................................................

1,001

65,255

Dick's

Sporting

Goods,

Inc.

............................................

772

58,186

Lithia

Motors,

Inc.,

A

.................................................

192

52,763

Lowe's

Cos.,

Inc.

....................................................

9,628

1,681,723

a

O'Reilly

Automotive,

Inc.

..............................................

343

216,694

Penske

Automotive

Group,

Inc.

.........................................

500

52,345

Ross

Stores,

Inc.

...................................................

9,100

639,093

a

Ulta

Beauty,

Inc.

....................................................

144

55,509

Williams-Sonoma,

Inc.

...............................................

478

53,034

3,227,240

Technology

Hardware,

Storage

&

Peripherals

2.5%

Apple,

Inc.

........................................................

27,682

3,784,683

Dell

Technologies,

Inc.,

C

.............................................

1,496

69,130

Hewlett

Packard

Enterprise

Co.

.........................................

7,210

95,605

HP,

Inc.

...........................................................

6,286

206,055

NetApp,

Inc.

.......................................................

1,099

71,699

4,227,172

Textiles,

Apparel

&

Luxury

Goods

0.6%

NIKE,

Inc.,

B

.......................................................

9,515

972,433

Ralph

Lauren

Corp.

..................................................

589

52,804

Tapestry,

Inc.

......................................................

1,723

52,586

1,077,823

Tobacco

0.7%

Altria

Group,

Inc.

....................................................

10,522

439,504

Philip

Morris

International,

Inc.

.........................................

7,773

767,506

1,207,010

Trading

Companies

&

Distributors

0.5%

MSC

Industrial

Direct

Co.,

Inc.,

A

........................................

695

52,201

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FVA-16

a

a

Shares

a

Value

a

Common

Stocks

(continued)

Trading

Companies

&

Distributors

(continued)

WW

Grainger,

Inc.

...................................................

1,639

$

744,811

797,012

Total

Common

Stocks

(Cost

$79,123,679)

......................................

107,843,019

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

33.4%

Domestic

Fixed

Income

24.1%

b

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

1,200,150

26,565,320

b

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

.............................

1,455,148

14,376,858

40,942,178

Domestic

Hybrid

8.0%

b

Franklin

Income

VIP

Fund,

Class

1

......................................

902,748

13,550,251

Foreign

Equity

1.3%

iShares

Core

MSCI

EAFE

ETF

.........................................

36,862

2,169,329

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$65,468,411)

................................................................

56,661,758

Total

Long

Term

Investments

(Cost

$144,592,090)

...............................

164,504,777

a

a

a

a

a

Short

Term

Investments

1.8%

a

Money

Market

Funds

1.8%

b,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

..................

3,091,649

3,091,649

Total

Money

Market

Funds

(Cost

$3,091,649)

...................................

3,091,649

Total

Short

Term

Investments

(Cost

$3,091,649

)

.................................

3,091,649

a

Total

Investments

(Cost

$147,683,739)

98.7%

...................................

$167,596,426

Other

Assets,

less

Liabilities

1.3%

.............................................

2,162,826

Net

Assets

100.0%

...........................................................

$169,759,252

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

See

Note

3(e)

regarding

investments

in

FT

Underlying

Funds.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FVA-17

At

June

30,

2022,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1(c). 

At

June

30,

2022,

the

Fund

had

the

following total

return swap

contracts

outstanding.

See

Note

1(c). 

Futures

Contracts

Description

Type

Number

of

Contracts

Notional

Amount

*

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Equity

contracts

S&P

500

E-Mini

Index

.........................

Short

224

$

42,442,400

9/16/22

$

(668,458)

Total

Futures

Contracts

......................................................................

$(668,458)

*

As

of

period

end.

Total

Return

Swap

Contracts

Underlying

Instruments

Financing

Rate

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Value

*

Value/

Unrealized

Appreciation

(Depreciation)

OTC

Swap

Contracts

Long

Dynamic

VIX

Backwardation

(BEFSDVB1

Index)

..

—

Monthly

BZWS

8/30/22

4,000,000

$

(599)

Total

Return

Swap

Contracts

....................................................................

$(599)

*

In

U.S.

dollars

unless

otherwise

indicated.

See

Note 9 regarding

other

derivative

information.

See

Abbreviations

on

page

FVA-

30

.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FVA-18

Franklin

VolSmart

Allocation

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$81,900,678

Cost

-

Non-controlled

affiliates

(Note

3e)

........................................................

65,783,061

Value

-

Unaffiliated

issuers

..................................................................

$110,012,348

Value

-

Non-controlled

affiliates

(Note

3e)

.......................................................

57,584,078

Receivables:

Investment

securities

sold

...................................................................

7,265,085

Capital

shares

sold

........................................................................

5,683

Dividends

...............................................................................

141,906

Affiliates

................................................................................

26,797

Deposits

with

brokers

for:

Futures

contracts

........................................................................

2,352,000

Variation

margin

on

futures

contracts

...........................................................

355,600

Total

assets

..........................................................................

177,743,497

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

7,713,728

Capital

shares

redeemed

...................................................................

56,467

Management

fees

.........................................................................

108,212

Distribution

fees

..........................................................................

21,348

Trustees'

fees

and

expenses

.................................................................

550

Unrealized

depreciation

on

OTC

swap

contracts

....................................................

599

Accrued

expenses

and

other

liabilities

...........................................................

83,341

Total

liabilities

.........................................................................

7,984,245

Net

assets,

at

value

.................................................................

$169,759,252

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$135,840,783

Total

distributable

earnings

(losses)

.............................................................

33,918,469

Net

assets,

at

value

.................................................................

$169,759,252

Franklin

VolSmart

Allocation

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$4,365

Shares

outstanding

........................................................................

368

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.87

Class

2:

Net

assets,

at

value

.......................................................................

$32,146

Shares

outstanding

........................................................................

2,695

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.93

Class

5:

Net

assets,

at

value

.......................................................................

$169,722,741

Shares

outstanding

........................................................................

14,266,744

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.90

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FVA-19

Franklin

VolSmart

Allocation

VIP

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

........................................................................

$1,198,897

Non-controlled

affiliates

(Note

3e)

.............................................................

1,190,858

Interest:

Unaffiliated

issuers

........................................................................

1,279

Total

investment

income

...................................................................

2,391,034

Expenses:

Management

fees

(Note

3

a

)

...................................................................

747,155

Distribution

fees:

(Note

3c

)

    Class

5

................................................................................

140,059

Custodian

fees

(Note

4

)

......................................................................

2,804

Reports

to

shareholders

fees

..................................................................

8,191

Professional

fees

...........................................................................

48,106

Trustees'

fees

and

expenses

..................................................................

1,446

Other

....................................................................................

7,842

Total

expenses

.........................................................................

955,603

Expense

reductions

(Note

4

)

...............................................................

(331)

Expenses

waived/paid

by

affiliates

(Note

3e

and

3f)

..............................................

(209,793)

Net

expenses

.........................................................................

745,479

Net

investment

income

................................................................

1,645,555

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

9,213,960

Non-controlled

affiliates

(Note

3e)

...........................................................

115,320

Futures

contracts

.........................................................................

3,747,123

Swap

contracts

...........................................................................

27,368

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3e)

...........................................................

265,359

Net

realized

gain

(loss)

..................................................................

13,369,130

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(35,064,519)

Non-controlled

affiliates

(Note

3e)

...........................................................

(8,252,801)

Futures

contracts

.........................................................................

(668,458)

Swap

contracts

...........................................................................

(566)

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(43,986,344)

Net

realized

and

unrealized

gain

(loss)

............................................................

(30,617,214)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(28,971,659)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FVA-20

Franklin

VolSmart

Allocation

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$1,645,555

$3,214,793

Net

realized

gain

(loss)

.................................................

13,369,130

15,665,750

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(43,986,344)

13,859,014

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(28,971,659)

32,739,557

Distributions

to

shareholders:

Class

1

.............................................................

(536)

—

Class

2

.............................................................

(3,925)

(4,360)

Class

5

.............................................................

(18,414,714)

(18,228,062)

Total

distributions

to

shareholders

..........................................

(18,419,175)

(18,232,422)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

5,000

—

Class

2

.............................................................

(5,000)

—

Class

5

.............................................................

7,318,364

(537,826)

Total

capital

share

transactions

............................................

7,318,364

(537,826)

Net

increase

(decrease)

in

net

assets

...................................

(40,072,470)

13,969,309

Net

assets:

Beginning

of

period

.....................................................

209,831,722

195,862,413

End

of

period

..........................................................

$169,759,252

$209,831,722

Franklin

Templeton

Variable

Insurance

Products

Trust

FVA-21

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

1.

Organization

and

Significant

Accounting

Policies

Franklin

Templeton

Variable

Insurance

Products

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

VolSmart

Allocation

VIP

Fund

(Fund)

is

included

in

this

report.

The

Fund

invests

a

large

percentage

of

its

assets

in

mutual

funds

(Underlying

Funds)

and

exchange

traded

funds

(ETFs),

including

affiliated

funds

managed

by

Franklin

Templeton

(FT

Underlying

Funds).

Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

At

June

30,

2022,

98.2%

of

the

Fund's

shares

were

held

through

one

insurance

company.

Investment

activities

of

these

insurance

company

separate

accounts

could

have

a

material

impact

on

the

Fund.

The

Fund

offers

three

classes

of

shares:

Class

1,

Class

2

and

Class

5.

Effective

May

20,

2022,

the

Fund

began

offering

a

new

class

of

shares,

Class

1.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege. 

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Investments

in

the

Underlying

Funds

are

valued

at

their

closing

NAV

each

trading

day.

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Certain

derivative

financial

instruments

trade

in

the

OTC

market.

The

Fund's

pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

fair

value

of

those

instruments.

The

Fund's

net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-22

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day.

Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Derivative

Financial

Instruments

The

Fund invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statement

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statement

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

The

Fund

attempts

to

reduce

its

exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the

Fund

include

failure

of

the

Fund

to

maintain

certain

net

asset

levels

and/or

limit

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-23

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Fund

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

At

June

30,

2022, the

Fund

had

OTC

derivatives

in

a

net

liability

position

of

$599.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

or

initial

margin

requirements

are

set

by

the

broker

or

exchange

clearing

house

for

exchange

traded

and

centrally

cleared

derivatives.

Initial

margin

deposited

is

held

at

the

exchange

and

can

be

in

the

form

of

cash

and/or

securities.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of

the

agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund

for

OTC

derivatives,

if

any,

is

held

in

segregated

accounts

with

the

Fund's

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Fund's

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

The

Fund

entered

into

exchange

traded

futures

contracts

primarily

to

manage

and/or

gain

exposure

to

interest

rate

and

equity

price

risk.

A

futures

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

an

asset

at

a

specified

price

on

a

future

date.

Required

initial

margins

are

pledged

by

the

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the

Statement

of

Assets

and

Liabilities.

The

Fund

entered

into

OTC

total

return

swap

contracts

primarily

to

manage

and/or

gain

exposure

to

credit

and

market

risk

of

an

underlying

instrument

such

as

a

stock,

bond,

index

or

basket

of

securities

or

indices.

A

total

return

swap

is

an

agreement

between

the

Fund

and

a

counterparty

to

exchange

a

return

linked

to

an

underlying

instrument

for

a

floating

or

fixed

rate

payment,

both

based

upon

a

notional

amount.

Over

the

term

of

the

contract,

contractually

required

payments

to

be

paid

or

received

are

accrued

daily

and

recorded

as

unrealized

appreciation

or

depreciation

until

the

payments

are

made,

at

which

time

they

are

recognized

as

realized

gain

or

loss.

See

Note

9

regarding

other

derivative

information.

d.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date. 

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Derivative

Financial

Instruments

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-24

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Estimated

expenses

are

accrued

daily.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Fund

indirectly

bears

its

proportionate

share

of

expenses

from

the

Underlying

Funds

and

ETFs.

Since

the

Underlying

Funds

and

ETFs

have

varied

expense

levels

and

the

Fund may

own

different

proportions

of

the

Underlying

Funds

and

ETFs

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the Fund

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust, on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-25

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

3.Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers,

directors

and/or

trustees

of

certain

of

the

Underlying

Funds

and

of

the

following

subsidiaries:

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

of

0.80%

per

year

of

the

average

daily

net

assets

of

the

Fund.

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

Six

Months

Ended

June

30,

2022

a

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

368

$5,000

—

$—

Net

increase

(decrease)

..........................

368

$5,000

—

$—

Class

2

Shares:

Shares

redeemed

...............................

(366)

$(5,000)

—

$—

Net

increase

(decrease)

..........................

(366)

$(5,000)

—

$—

Class

5

Shares:

Shares

sold

...................................

469,984

$6,756,536

1,228,354

$18,215,053

Shares

issued

in

reinvestment

of

distributions

..........

1,550,060

18,414,714

1,272,021

18,228,062

Shares

redeemed

...............................

(1,269,459)

(17,852,886)

(2,466,397)

(36,980,941)

Net

increase

(decrease)

..........................

750,585

$7,318,364

33,978

$(537,826)

a

For

the

period

May

20,

2022

(effective

date)

to

June

30,

2022

for

Class

1.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-26

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

2

and

Class

5

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.35%

and

0.15%

per

year

of

its

average

daily

net

assets

of

Class

2

and

Class

5,

respectively.

The

Board

has

agreed

to

limit

the

current

rate

to

0.25%

per

year

for

Class

2.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

e.

Investments

in

Underlying

Funds

The Fund

invests in Underlying

Funds

which

are

managed

by

affiliates

of

the

Fund’s

administrative

manager,

Franklin

Templeton

Services,

LLC.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The

Fund

does

not

invest

in

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

Underlying

Funds,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

the

Underlying

Funds.

Investments

in

Underlying

Funds

for

the

period

ended

June

30,

2022,

were

as

follows:

f.

Waiver

and

Expense

Reimbursements

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Fund

so

that

the

operating expenses

(excluding

interest

expense,

distribution

fees,

acquired

fund

fees and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations) for

each

class

of

the

Fund

do not

exceed

0.65%,

based

on

the

average

net

assets

of

each

class

until

April

30,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund's

fiscal

year

end.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

VolSmart

Allocation

VIP

Fund

Non-Controlled

Affiliates

Franklin

Income

VIP

Fund,

Class

1

$

16,987,187

$

961,317

$

(2,311,000)

$

115,320

$

(2,202,573)

$

13,550,251

902,748

$

961,317

a

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

25,689,597

3,976,251

—

—

(3,100,528)

26,565,320

1,200,150

284,141

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

......

4,067,757

26,837,772

(27,813,880)

—

—

3,091,649

3,091,649

3,342

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

17,152,572

173,986

—

—

(2,949,700)

14,376,858

1,455,148

207,417

Total

Non-Controlled

Affiliates

$63,897,113

$31,949,326

$(30,124,880)

$115,320

$(8,252,801)

$57,584,078

$1,456,217

Total

Affiliated

Securities

....

$63,897,113

$31,949,326

$(30,124,880)

$115,320

$(8,252,801)

$57,584,078

$1,456,217

a

Dividend

income

includes

capital

gain

distributions

received,

if

any,

from

underlying

funds,

and

are

presented

in

corresponding

line

item

in

Statement

of

Operations.

3.Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-27

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

June

30,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

At

June

30,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatment

of

wash

sales.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

aggregated

$49,214,308

and

$57,306,025,

respectively.

7.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

8.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

Cost

of

investments

..........................................................................

$147,809,413

Unrealized

appreciation

........................................................................

$33,425,544

Unrealized

depreciation

........................................................................

(14,307,588)

Net

unrealized

appreciation

(depreciation)

..........................................................

$19,117,956

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-28

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

9.

Other

Derivative

Information

At

June

30,

2022,

investments

in

derivative

contracts

are

reflected

in

the

Statement of

Assets

and

Liabilities

as

follows:

For

the

period

ended

June

30,

2022,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

period

ended

June

30,

2022,

the

average

month

end

notional

amount

of

futures

contracts

and

swap

contracts

represented

$17,999,695

and

$4,742,857,

respectively.

See

Note

1(c) regarding

derivative

financial

instruments. 

10.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Franklin

VolSmart

Allocation

VIP

Fund

Equity

contracts

...........

Variation

margin

on

futures

contracts

$

—

Variation

margin

on

futures

contracts

$

668,458

a

Unrealized

appreciation

on

OTC

swap

contracts

—

Unrealized

depreciation

on

OTC

swap

contracts

599

Total

....................

$—

$669,057

a

This

amount

reflects

the

cumulative

appreciation

(depreciation)

of

futures

contracts

as

reported

in

the

Schedule

of

Investments.

Only

the

variation

margin

receivable/payable

at

period

end

is

separately

reported

within

the

Statement

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Period

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Period

Franklin

VolSmart

Allocation

VIP

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Equity

Contracts

..............

Futures

contracts

$3,747,123

Futures

contracts

$(668,458)

Swap

contracts

27,368

Swap

contracts

(566)

Total

.......................

$3,774,491

$(669,024)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-29

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

11.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's assets

and

liabilities

carried

at

fair

value,

is

as

follows:

12.

New

Accounting

Pronouncements

In June

2022,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

13.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Level

1

Level

2

Level

3

Total

Franklin

VolSmart

Allocation

VIP

Fund

Assets:

Investments

in

Securities:

a

Common

Stocks

........................

$

107,843,019

$

—

$

—

$

107,843,019

Management

Investment

Companies

.........

56,661,758

—

—

56,661,758

Short

Term

Investments

...................

3,091,649

—

—

3,091,649

Total

Investments

in

Securities

...........

$167,596,426

$—

$—

$167,596,426

Liabilities:

Other

Financial

Instruments:

Futures

contracts

........................

$

668,458

$

—

$

—

$

668,458

Swap

contracts

..........................

—

599

—

599

Total

Other

Financial

Instruments

.........

$668,458

$599

$—

$669,057

a

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

10.

Credit

Facility

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-30

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

Abbreviations

Counterparty

BZWS

Barclays

Bank

plc

Selected

Portfolio

ETF

Exchange-Traded

Fund

REIT

Real

Estate

Investment

Trust

VIX

Market

Volatility

Index

TD-1

Semiannual

Report

Templeton

Developing

Markets

VIP

Fund

This

semiannual

report

for

Templeton

Developing

Markets

VIP

Fund

covers

the

period

ended

June

30

,

2022

.

Class

1

Performance

Summary

as

of

June

30

,

2022

The

Fund’s

Class

1

Shares

posted

a

-21.81%

total

return

for

the

six-month

period

ended

June

30,

2022.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

TD-2

Semiannual

Report

1.

Source:

Morningstar.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

Templeton

Developing

Markets

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

long-term

capital

appreciation.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

emerging

market

investments.

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

Special

risks

are

associated

with

foreign

investing,

including

currency

fluctuations,

economic

instability

and

political

developments.

Investments

in

developing

markets,

of

which

frontier

markets

are

a

subset,

involve

heightened

risks

related

to

the

same

factors,

in

addition

to

those

associated

with

these

markets’

smaller

size,

lesser

liquidity

and

lack

of

established

legal,

political,

business

and

social

frameworks

to

support

securities

markets.

Because

these

frameworks

are

typically

even

less

developed

in

frontier

markets,

as

well

as

various

factors

including

the

increased

potential

for

extreme

price

volatility,

illiquidity,

trade

barriers

and

exchange

controls,

the

risks

associated

with

developing

markets

are

magnified

in

frontier

markets.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

To

the

extent

that

the

Fund

has

exposure

to

Russian

investments

or

investments

in

countries

affected

by

the

invasion,

the

Fund’s

ability

to

price,

buy,

sell,

receive

or

deliver

such

investments

may

be

impaired.

The

Fund

could

determine

at

any

time

that

certain

of

the

most

affected

securities

have

zero

value.

In

addition,

any

exposure

that

the

Fund

may

have

to

counterparties

in

Russia

or

in

countries

affected

by

the

invasion

could

negatively

impact

the

Fund’s

portfolio.

The

extent

and

duration

of

Russia’s

military

actions

and

the

repercussions

of

such

actions

(including

any

retaliatory

actions

or

countermeasures

that

may

be

taken

by

those

subject

to

sanctions)

are

impossible

to

predict,

but

could

result

in

significant

market

disruptions,

including

in

the

oil

and

natural

gas

markets,

and

may

negatively

affect

global

supply

chains,

inflation

and

global

growth.

These

and

any

related

events

could

significantly

impact

the

Fund’s

performance

and

the

value

of

an

investment

in

the

Fund,

even

beyond

any

direct

exposure

the

Fund

may

have

to

Russian

issuers

or

issuers

in

other

countries

affected

by

the

invasion.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

benchmark,

the

MSCI

Emerging

Markets

(EM)

Index-NR,

posted

a

-17.63%

total

return

for

the

same

period.

1

Please

note,

index

performance

numbers

are

for

reference

and

we

do

not

attempt

to

track

an

index

but

rather

undertake

investments

on

the

basis

of

fundamental

research.

Economic

and

Market

Overview

Emerging

market

economies

continued

to

grow

during

the

six

months

ended

June

30,

2022,

though

high

levels

of

inflation,

the

spread

of

the

Omicron

variant

of

COVID-19

and

Russia’s

invasion

of

Ukraine

restrained

growth.

Many

emerging

market

central

banks

raised

their

benchmark

interest

rates

to

stem

inflation,

continuing

a

trend

that

started

in

early

2021.

During

the

period,

emerging

market

equities

Geographic

Composition

6/30/22

%

of

Total

Net

Assets

Asia

79.8%

Latin

America

&

Caribbean

10.4%

North

America

3.5%

Europe

2.3%

Other

0.8%

Short-Term

Investments

&

Other

Net

Assets

3.2%

Templeton

Developing

Markets

VIP

Fund

TD-3

Semiannual

Report

were

hurt

by

investor

concerns

about

Russia’s

invasion

of

Ukraine,

rising

inflation

and

accompanying

interest-

rate

hikes,

and

Chinese

government

regulations

targeting

technology

companies.

Regarding

individual

countries,

China’s

year-on-year

economic

growth

rate

accelerated

in

the

first

quarter

of

2022,

though

poor

retail

sales

and

employment

figures

in

March

raised

the

possibility

of

an

economic

slowdown

in

the

near

future.

Taiwan’s

year-on-year

growth

rate

moderated

in

2022’s

first

quarter,

with

private

spending

slowing

and

government

spending

contracting.

South

Korea’s

year-on-

year

growth

rate

moderated

in

the

first

quarter

of

2022,

as

investment

and

spending

weakened

amidst

government

restrictions

to

slow

the

spread

of

COVID-19.

India’s

year-

on-year

growth

moderated

in

2022’s

first

quarter,

dragged

down

by

outbreaks

of

the

Omicron

variant,

high

energy

prices

and

supply

chain

disruptions.

Russia’s

year-on-year

growth

rate

moderated

in

2022’s

first

quarter

as

domestic

spending

weakened

amid

widespread

international

sanctions

imposed

in

response

to

the

country’s

invasion

of

Ukraine.

Brazil’s

year-on-year

growth

rate

accelerated

slightly

in

the

first

quarter

of

2022,

in

part

due

to

an

increase

in

private

spending

spurred

by

the

lifting

of

COVID-19-related

restrictions.

Overall

growth

was

constrained

by

net

negative

trade,

as

imports

outpaced

exports.

Turning

to

specific

countries’

monetary

policies,

the

People’s

Bank

of

China

lowered

its

benchmark

loan

prime

rate

once

during

the

period

in

an

ongoing

effort

to

spur

growth

in

the

face

of

COVID-19-related

headwinds

and

high

commodity

prices.

In

contrast,

the

central

banks

of

Taiwan,

South

Korea

and

India

all

raised

their

benchmark

interest

rates

multiple

times

to

stem

rising

inflation.

Russia’s

central

bank

raised

its

benchmark

interest

rate

twice

in

February

2022,

including

more

than

doubling

its

rate

to

offset

ruble

devaluation

caused

by

sanctions

imposed

against

the

country

following

its

invasion

of

Ukraine.

In

subsequent

months,

the

central

bank

cut

the

benchmark

rate

multiple

times,

ending

the

period

slightly

higher

than

where

it

started.

The

central

bank

of

Brazil

raised

its

benchmark

interest

rate

four

times

during

the

period,

bringing

the

number

of

consecutive

raises

to

11

as

the

country

battles

persistent

high

inflation.

In

this

environment,

emerging

market

stocks,

as

measured

by

the

MSCI

EM

Index-NR,

posted

a

-17.63%

total

return

for

the

six

months

ended

June

30,

2022.

1

Chinese

equities

declined

during

period

due

to

regulatory

pressure

on

technology

companies,

a

slowdown

in

the

property

market

and

new

COVID-19

outbreaks.

Larger

losses

were

prevented

by

modest

gains

in

the

second

half

of

the

period,

sparked

by

better-than-expected

macroeconomic

data,

reduced

COVID-

19-related

restrictions

and

fiscal

policy

support.

Taiwanese

equities

fell

significantly

during

the

period

on

expectations

of

weakening

global

demand

for

consumer

electronics

and

a

broader

global

selloff

of

growth

stocks.

Russian

equities

declined

significantly

in

the

first

two

months

of

2022

in

the

run-up

to

Russia’s

invasion

of

Ukraine.

In

March,

major

index

providers

MSCI

and

FTSE

Russell

zero-valued

Russian

equities

and

dropped

them

from

their

benchmarks

following

the

Russian

government

closing

access

to

its

stock

markets.

Brazilian

equities

rose

slightly

during

the

period.

Valuations

shot

up

in

2022’s

first

quarter

due

to

high

foreign

inflows

and

high

commodity

prices,

but

most

of

those

gains

were

given

back

in

the

second

quarter

as

rising

fuel

costs

and

inflation

heightened

the

risk

of

social

unrest.

Top

10

Countries

6/30/22

a

%

of

Total

Net

Assets

a

a

China

30.6%

South

Korea

20.4%

Taiwan

15.0%

India

8.9%

Brazil

8.1%

United

States

3.5%

Thailand

2.1%

Mexico

1.9%

United

Kingdom

1.5%

Hong

Kong

1.3%

Top

10

Holdings

6/30/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

10.8%

Semiconductors

&

Semiconductor

Equipment,

Taiwan

Samsung

Electronics

Co.

Ltd.

9.1%

Technology

Hardware,

Storage

&

Peripherals,

South

Korea

Alibaba

Group

Holding

Ltd.

6.2%

Internet

&

Direct

Marketing

Retail,

China

ICICI

Bank

Ltd.

6.0%

Banks,

India

Tencent

Holdings

Ltd.

4.0%

Interactive

Media

&

Services,

China

MediaTek

,

Inc.

3.2%

Semiconductors

&

Semiconductor

Equipment,

Taiwan

Guangzhou

Tinci

Materials

Technology

Co.

Ltd.

3.0%

Chemicals,

China

China

Merchants

Bank

Co.

Ltd.

2.9%

Banks,

China

NAVER

Corp.

2.8%

Interactive

Media

&

Services,

South

Korea

LG

Corp.

2.5%

Industrial

Conglomerates,

South

Korea

Templeton

Developing

Markets

VIP

Fund

TD-4

Semiannual

Report

Investment

Strategy

We

employ

a

fundamental

research-driven,

long-term

approach,

focusing

on

companies

with

sustainable

earnings

power

at

a

discount

to

intrinsic

worth.

We

also

consider

a

company’s

profit

and

loss

outlook,

balance

sheet

strength,

cash

flow

trends

and

asset

value

in

relation

to

the

current

price

of

the

company’s

securities.

Manager’s

Discussion

Key

stock

contributors

to

absolute

performance

during

the

reporting

period

were

Daqo

New

Energy,

Guangzhou

Tinci

Materials

Technology

and

B3.

Daqo

New

Energy

is

a

Chinese

producer

of

polysilicon,

which

is

a

major

raw

material

for

solar

panels.

Shares

benefited

from

robust

2022

first-quarter

earnings

growth,

driven

by

higher

sales

volume

and

polysilicon

prices,

and

the

approval

of

a

US$120

million

share

repurchase

program.

Growing

demand

for

solar

panels,

as

higher

oil

and

natural

gas

prices

accelerate

a

shift

to

alternative

energy

sources,

further

boosted

market

confidence

in

the

company.

In

our

view,

Daqo’s

cost

competitiveness

coupled

with

strong

polysilicon

demand

continues

to

anchor

its

business.

Guangzhou

Tinci

Materials

Technology

is

a

world-leading

supplier

of

electrolytes

for

electric

vehicle

(EV)

batteries.

Although

shares

declined

in

early

2022

due

to

logistical

disruptions

resulting

from

lockdowns

in

parts

of

China,

easing

mobility

restrictions

coupled

with

strong

quarterly

corporate

results

and

a

recovery

in

new

EV

sales

in

May

led

to

a

recovery

in

the

later

part

of

the

reporting

period.

The

company

reported

record-high

2022

first-quarter

earnings

driven

by

higher

electrolyte

price

and

sales

volume

growth,

while

the

announcement

of

a

small

share

buyback

program

further

supported

market

sentiment

in

the

stock.

B3

is

Brazil’s

leading

financial

market

infrastructure

company,

providing

exchange

and

over-the-counter

(OTC)

trading

services

for

equities

and

derivatives.

Its

share

price

rose

sharply

in

the

first

quarter

of

2022

in

line

with

Brazilian

equities

on

expectations

of

higher

trading

volume

and

fund

inflows

into

the

country’s

financial

markets.

Investors

turned

more

cautious

in

the

second

quarter,

however,

locking

in

earlier

gains

amid

a

correction

in

the

Brazilian

market

and

mixed

first-quarter

corporate

results.

We

reduced

our

position

in

the

stock

following

its

strong

price

appreciation

earlier

in

the

reporting

period.

In

contrast,

key

detractors

from

absolute

performance

included

Samsung

Electronics,

Taiwan

Semiconductor

Manufacturing

Co.

(TSMC)

and

several

Russian

holdings,

including

LUKOIL,

Sberbank

of

Russia

and

Yandex.

Shares

in

leading

global

semiconductor

manufacturers

TSMC

and

South

Korean-based

Samsung

Electronics

declined

on

concerns

of

weaker

end-market

demand

for

information

technology

products.

However,

we

remain

confident

in

TSMC’s

technology

leadership

and

its

dominance

in

developing

cutting-edge

chips

and

Samsung

Electronics’

solid

market

position

in

its

key

business

areas.

Taking

a

long-term

view,

we

believe

both

stocks

are

well

placed

to

benefit

from

sustained

structural

demand

for

advanced

chips

driven

by

higher

performance

computing

(HPC),

automotive

applications

and

digitalization.

Operationally,

TSMC’s

2022

first-quarter

earnings

and

second-quarter

management

guidance

exceeded

market

expectations.

While

Samsung

Electronics

reported

solid

first-quarter

operating

profits,

preliminary

second-quarter

earnings

were

slightly

below

consensus

mainly

due

to

weak

smartphone

and

consumer

electronics

demand.

Before

Russia’s

invasion

of

Ukraine,

we

had

maintained

our

position

in

Russian

stocks

including

LUKOIL,

a

major

Russian

oil

producer,

Sberbank,

one

of

the

biggest

banks

in

the

country,

and

Yandex,

Russia’s

largest

search

engine,

given

the

belief

that

diplomacy

could

resolve

the

issue.

However,

Russian

equities

and

the

Russian

ruble

declined

sharply

following

Russia’s

invasion

of

Ukraine

and

extensive

sanctions

from

the

rest

of

the

world.

We

trimmed

the

portfolio’s

holding

in

Sberbank

as

a

risk

mitigation

measure.

Moreover,

index

compilers

MSCI

and

FTSE

dropped

Russia

from

their

benchmarks

in

early

March

at

a

zero-value,

due

to

non-fulfillment

of

market

accessibility

requirements.

Although

trading

in

the

domestic

market

resumed

in

late-

March,

following

a

trading

suspension

on

February

28,

2022,

foreigners

remained

barred

from

selling,

while

trading

in

Russian

American

and

Global

Depositary

Receipts

(ADRs/

GDRs)

listed

in

international

exchanges

also

remained

suspended

at

the

time

of

this

writing.

Given

these

facts,

on

March

4,

2022,

Russian

company

securities

were

fair

valued

at

zero

by

the

Franklin

Templeton

Valuation

Committee.

In

concluding

upon

a

zero

value,

the

continued

uncertainty

in

the

market,

restrictions

on

trading

the

shares

both

onshore

and

offshore,

and

a

lack

of

any

price

discovery

mechanism

to

provide

indications

of

residual

value

were

all

taken

into

account.

In

the

last

six

months,

the

portfolio

increased

its

holdings

in

Hong

Kong,

Brazil,

South

Korea

and

U.S.-listed

companies

with

significant

exposure

to

emerging

markets,

as

we

continued

to

identify

companies

with

sustainable

earnings

power

trading

at

a

discount

to

their

intrinsic

worth.

In

terms

of

sectors,

additions

were

undertaken

in

energy,

consumer

discretionary,

materials

and

health

care.

Templeton

Developing

Markets

VIP

Fund

TD-5

Semiannual

Report

New

additions

to

the

portfolio

included

Brazil’s

national

oil

and

gas

company

Petroleo

Brasileiro

(Petrobras),

Hong

Kong-listed

major

power

tool

manufacturer

Techtronic

Industries,

and

LG

Chem,

a

leading

chemicals

and

EV

battery

manufacturer

in

South

Korea.

We

also

added

to

our

existing

high-conviction

portfolio

holdings

with

purchases

in

Genpact,

a

U.S.-listed

technology

services

company

with

significant

exposure

to

India,

MediaTek,

a

major

Taiwanese

chip

designer

for

smartphones

and

other

technology

devices,

and

the

previously

mentioned

Guangzhou

Tinci

Materials

Technology.

In

contrast,

the

Fund

reduced

its

investments

in

India,

Taiwan,

China

and

Indonesia.

Sectors

which

experienced

the

largest

sales

were

financials,

information

technology,

real

estate

and

communication

services.

In

terms

of

key

sales,

we

trimmed

positions

in

several

key

holdings,

including

the

previously

mentioned

TSMC

and

Samsung

Electronics,

leading

Chinese

internet

services

company

Tencent

Holdings

and

major

Chinese

e-commerce

company

Alibaba

Group

Holding,

to

realign

the

portfolio.

We

also

closed

positions

in

South

Africa-based

internet

group

Naspers

and

Russian

oil

company

Gazprom.

For

the

six

months

ended

June

30,

2022,

the

U.S.

dollar

rose

in

value

relative

to

most

currencies.

As

a

result,

the

Fund’s

performance

was

negatively

affected

by

the

portfolio’s

investment

in

securities

with

non-U.S.

currency

exposure.

Thank

you

for

your

participation

in

Templeton

Developing

Markets

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Class

1

Fund

Expenses

Templeton

Developing

Markets

VIP

Fund

TD-6

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

any

ongoing

expenses

of

the

Contract

for

which

the

Fund

is

an

investment

option

or

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

1

$1,000

$781.90

$5.10

$1,019.07

$5.77

1.15%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Developing

Markets

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TD-7

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.76

$11.73

$10.80

$8.62

$10.31

$7.42

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.10

0.10

0.07

0.18

0.09

0.08

Net

realized

and

unrealized

gains

(losses)

(2.43)

(0.70)

1.57

2.12

(1.67)

2.92

Total

from

investment

operations

........

(2.33)

(0.60)

1.64

2.30

(1.58)

3.00

Less

distributions

from:

Net

investment

income

..............

(0.26)

(0.13)

(0.45)

(0.12)

(0.11)

(0.11)

Net

realized

gains

.................

(0.65)

(0.24)

(0.26)

—

—

—

Total

distributions

...................

(0.91)

(0.37)

(0.71)

(0.12)

(0.11)

(0.11)

Net

asset

value,

end

of

period

..........

$7.52

$10.76

$11.73

$10.80

$8.62

$10.31

Total

return

c

.......................

(21.81)%

(5.51)%

17.39%

26.92%

(15.44)%

40.65%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.16%

1.19%

1.19%

1.15%

1.24%

1.36%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.15%

1.19%

e

1.19%

e

1.15%

e

1.24%

e

1.35%

f

Net

investment

income

...............

2.06%

0.82%

0.73%

1.83%

0.99%

0.86%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$66,406

$83,269

$89,165

$97,271

$85,397

$105,493

Portfolio

turnover

rate

................

12.34%

19.35%

11.60%

18.04%

9.22%

10.76%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Developing

Markets

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TD-8

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.67

$11.64

$10.71

$8.54

$10.23

$7.36

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.08

0.07

0.05

0.15

0.07

0.05

Net

realized

and

unrealized

gains

(losses)

(2.41)

(0.69)

1.56

2.11

(1.68)

2.91

Total

from

investment

operations

........

(2.33)

(0.62)

1.61

2.26

(1.61)

2.96

Less

distributions

from:

Net

investment

income

..............

(0.23)

(0.11)

(0.42)

(0.09)

(0.08)

(0.09)

Net

realized

gains

.................

(0.65)

(0.24)

(0.26)

—

—

—

Total

distributions

...................

(0.88)

(0.35)

(0.68)

(0.09)

(0.08)

(0.09)

Net

asset

value,

end

of

period

..........

$7.46

$10.67

$11.64

$10.71

$8.54

$10.23

Total

return

c

.......................

(21.98)%

(5.74)%

17.18%

26.70%

(15.79)%

40.41%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.41%

1.44%

1.45%

1.40%

1.49%

1.61%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.40%

1.44%

e

1.44%

1.40%

e

1.49%

e

1.60%

f

Net

investment

income

...............

1.79%

0.57%

0.49%

1.58%

0.74%

0.61%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$167,512

$215,977

$241,104

$231,645

$195,305

$270,433

Portfolio

turnover

rate

................

12.34%

19.35%

11.60%

18.04%

9.22%

10.76%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Developing

Markets

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TD-9

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.73

$11.71

$10.77

$8.59

$10.28

$7.39

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.08

0.05

0.04

0.15

0.06

0.05

Net

realized

and

unrealized

gains

(losses)

(2.43)

(0.70)

1.57

2.11

(1.68)

2.92

Total

from

investment

operations

........

(2.35)

(0.65)

1.61

2.26

(1.62)

2.97

Less

distributions

from:

Net

investment

income

..............

(0.21)

(0.09)

(0.41)

(0.08)

(0.07)

(0.08)

Net

realized

gains

.................

(0.65)

(0.24)

(0.26)

—

—

—

Total

distributions

...................

(0.86)

(0.33)

(0.67)

(0.08)

(0.07)

(0.08)

Net

asset

value,

end

of

period

..........

$7.52

$10.73

$11.71

$10.77

$8.59

$10.28

Total

return

c

.......................

(22.00)%

(5.90)%

17.05%

26.49%

(15.81)%

40.30%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.51%

1.54%

1.54%

1.50%

1.59%

1.71%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.50%

1.54%

e

1.54%

e

1.50%

e

1.59%

e

1.70%

f

Net

investment

income

...............

1.67%

0.46%

0.44%

1.48%

0.64%

0.51%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,604

$4,846

$5,518

$5,590

$5,203

$7,199

Portfolio

turnover

rate

................

12.34%

19.35%

11.60%

18.04%

9.22%

10.76%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Templeton

Developing

Markets

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TD-10

a

a

Industry

Shares

a

Value

a

Common

Stocks

91.3%

Brazil

2.6%

a

Americanas

SA

..................

Internet

&

Direct

Marketing

Retail

310,691

$

797,252

B3

SA

-

Brasil

Bolsa

Balcao

........

Capital

Markets

154,532

323,609

a

M

Dias

Branco

SA

................

Food

Products

45,794

228,371

a

TOTVS

SA

.....................

Software

17,462

77,606

Vale

SA

........................

Metals

&

Mining

296,076

4,331,081

a

XP,

Inc.,

A

......................

Capital

Markets

21,386

384,092

6,142,011

Cambodia

0.4%

a

NagaCorp

Ltd.

..................

Hotels,

Restaurants

&

Leisure

1,123,250

920,317

China

30.6%

a

Alibaba

Group

Holding

Ltd.

.........

Internet

&

Direct

Marketing

Retail

1,033,054

14,736,828

a,b

BAIC

Motor

Corp.

Ltd.,

H,

144A,

Reg

S

Automobiles

1,500,600

499,716

a

Baidu,

Inc.,

A

....................

Interactive

Media

&

Services

113,864

2,156,934

a,c

Brilliance

China

Automotive

Holdings

Ltd.

.........................

Automobiles

7,756,600

2,558,965

Chervon

Holdings

Ltd.

.............

Household

Durables

7,600

42,940

China

Merchants

Bank

Co.

Ltd.,

A

....

Banks

1,084,601

6,853,942

China

Resources

Cement

Holdings

Ltd.

Construction

Materials

3,200,015

2,155,906

China

Resources

Land

Ltd.

.........

Real

Estate

Management

&

Development

132,733

622,419

COSCO

SHIPPING

Ports

Ltd.

.......

Transportation

Infrastructure

306,259

216,582

a

Daqo

New

Energy

Corp.,

ADR

......

Semiconductors

&

Semiconductor

Equipment

66,730

4,763,187

b

Greentown

Service

Group

Co.

Ltd.,

Reg

S

...........................

Real

Estate

Management

&

Development

529,539

599,379

Guangzhou

Tinci

Materials

Technology

Co.

Ltd.,

A

....................

Chemicals

762,140

7,075,266

Health

&

Happiness

H&H

International

Holdings

Ltd.

..................

Food

Products

670,915

887,210

JD.com,

Inc.,

A

..................

Internet

&

Direct

Marketing

Retail

11,027

355,321

Keshun

Waterproof

Technologies

Co.

Ltd.,

A

.......................

Construction

Materials

731,242

1,441,309

Longshine

Technology

Group

Co.

Ltd.,

A

Software

362,439

1,366,478

NetEase

,

Inc.

...................

Entertainment

102,423

1,929,586

a

New

Oriental

Education

&

Technology

Group,

Inc.,

ADR

...............

Diversified

Consumer

Services

7,645

155,652

a

Ping

An

Bank

Co.

Ltd.,

A

...........

Banks

802,600

1,799,826

Ping

An

Insurance

Group

Co.

of

China

Ltd.,

H

.......................

Insurance

343,406

2,363,733

a

Prosus

NV

.....................

Internet

&

Direct

Marketing

Retail

78,840

5,104,934

Tencent

Holdings

Ltd.

.............

Interactive

Media

&

Services

210,350

9,521,463

a

Tencent

Music

Entertainment

Group,

ADR

........................

Entertainment

397,974

1,997,829

Uni

-President

China

Holdings

Ltd.

....

Food

Products

2,141,351

1,841,353

Weifu

High-Technology

Group

Co.

Ltd.,

B

...........................

Auto

Components

306,139

579,901

a,b

Wuxi

Biologics

Cayman,

Inc.,

144A,

Reg

S

...........................

Life

Sciences

Tools

&

Services

108,225

1,002,744

72,629,403

Egypt

0.0%

†

E-Finance

for

Digital

&

Financial

Investments

...................

IT

Services

15,042

10,804

Hong

Kong

1.3%

d

Techtronic

Industries

Co.

Ltd.

.......

Machinery

293,500

3,064,752

Hungary

0.7%

Richter

Gedeon

Nyrt

.

.............

Pharmaceuticals

92,414

1,672,282

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Templeton

Developing

Markets

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TD-11

a

a

Industry

Shares

a

Value

a

Common

Stocks

(continued)

India

8.9%

ACC

Ltd.

.......................

Construction

Materials

9,600

$

259,050

Bajaj

Holdings

&

Investment

Ltd.

.....

Diversified

Financial

Services

37,725

2,196,643

ICICI

Bank

Ltd.

..................

Banks

1,579,654

14,192,838

Infosys

Ltd.

.....................

IT

Services

95,284

1,771,167

Tata

Consultancy

Services

Ltd.

......

IT

Services

63,522

2,638,122

21,057,820

Indonesia

0.7%

Astra

International

Tbk

.

PT

.........

Automobiles

3,927,070

1,750,164

Mexico

1.9%

Banco

Santander

Mexico

SA

Institucion

de

Banca

Multiple

Grupo

Financiero

Santand

,

ADR

.................

Banks

840,830

4,241,987

a,b,e

Nemak

SAB

de

CV,

144A,

Reg

S

....

Auto

Components

1,928,900

381,760

4,623,747

Pakistan

0.2%

Habib

Bank

Ltd.

.................

Banks

1,013,500

452,485

Peru

0.4%

Intercorp

Financial

Services,

Inc.

.....

Banks

39,292

919,433

Philippines

0.3%

BDO

Unibank

,

Inc.

...............

Banks

327,469

658,409

Russia

0.0%

c,f

LUKOIL

PJSC,

ADR

..............

Oil,

Gas

&

Consumable

Fuels

85,254

—

a,c,f

Sberbank

of

Russia

PJSC

..........

Banks

1,061,956

—

a,b,c,f

VK

Co.

Ltd.,

GDR,

Reg

S

..........

Interactive

Media

&

Services

27,833

—

a,c,f

Yandex

NV,

A

...................

Interactive

Media

&

Services

88,921

—

—

South

Africa

0.8%

a

Massmart

Holdings

Ltd.

............

Food

&

Staples

Retailing

580,084

1,250,946

Netcare

Ltd.

....................

Health

Care

Providers

&

Services

820,937

724,998

1,975,944

South

Korea

20.4%

a,b,e

Delivery

Hero

SE,

144A,

Reg

S

......

Internet

&

Direct

Marketing

Retail

8,100

305,565

Fila

Holdings

Corp.

...............

Textiles,

Apparel

&

Luxury

Goods

80,307

1,758,085

KT

Skylife

Co.

Ltd.

...............

Media

92,351

587,295

a

LegoChem

Biosciences,

Inc.

........

Life

Sciences

Tools

&

Services

26,969

882,118

LG

Chem

Ltd.

...................

Chemicals

1,893

757,604

LG

Corp.

.......................

Industrial

Conglomerates

99,385

6,022,047

NAVER

Corp.

...................

Interactive

Media

&

Services

35,949

6,754,921

POSCO

Holdings,

Inc.

............

Metals

&

Mining

14,692

2,639,462

Samsung

Electronics

Co.

Ltd.

.......

Technology

Hardware,

Storage

&

Peripherals

487,925

21,679,875

Samsung

Life

Insurance

Co.

Ltd.

.....

Insurance

81,487

3,966,936

Soulbrain

Co.

Ltd.

................

Chemicals

16,951

3,015,387

48,369,295

Taiwan

15.0%

Hon

Hai

Precision

Industry

Co.

Ltd.

...

Electronic

Equipment,

Instruments

&

Components

552,759

2,029,633

Largan

Precision

Co.

Ltd.

..........

Electronic

Equipment,

Instruments

&

Components

2,850

165,654

MediaTek

,

Inc.

..................

Semiconductors

&

Semiconductor

Equipment

350,316

7,691,273

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Templeton

Developing

Markets

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TD-12

a

a

Industry

Shares

a

Value

a

Common

Stocks

(continued)

Taiwan

(continued)

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

......................

Semiconductors

&

Semiconductor

Equipment

1,599,563

$

25,639,903

35,526,463

Thailand

2.1%

Kasikornbank

PCL

...............

Banks

705,593

3,015,676

Kiatnakin

Phatra

Bank

PCL

.........

Banks

549,194

966,319

Star

Petroleum

Refining

PCL

........

Oil,

Gas

&

Consumable

Fuels

1,152,600

395,901

Thai

Beverage

PCL

...............

Beverages

1,450,900

674,027

5,051,923

United

Kingdom

1.5%

Unilever

plc

.....................

Personal

Products

80,606

3,673,402

United

States

3.5%

Cognizant

Technology

Solutions

Corp.,

A

...........................

IT

Services

54,941

3,707,968

Genpact

Ltd.

....................

IT

Services

110,235

4,669,555

8,377,523

Total

Common

Stocks

(Cost

$186,060,889)

.....................................

216,876,177

a

Preferred

Stocks

5.5%

Brazil

5.5%

g

Banco

Bradesco

SA,

ADR,

6.5%

.....

Banks

1,411,460

4,601,360

e,g

Itau

Unibanco

Holding

SA,

ADR,

2.78%

Banks

926,309

3,964,602

g

Petroleo

Brasileiro

SA,

28.84%

......

Oil,

Gas

&

Consumable

Fuels

849,038

4,530,950

13,096,912

Total

Preferred

Stocks

(Cost

$16,975,936)

......................................

13,096,912

a

a

a

a

a

Escrows

and

Litigation

Trusts

0.0%

a,c

Hemisphere

Properties

India

Ltd.,

Escrow

Account

................

82,304

—

Total

Escrows

and

Litigation

Trusts

(Cost

$–)

...................................

—

Total

Long

Term

Investments

(Cost

$203,036,825)

...............................

229,973,089

Short

Term

Investments

3.2%

a

a

Industry

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

3.2%

United

States

3.2%

h,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

.........

7,558,070

7,558,070

Total

Money

Market

Funds

(Cost

$7,558,070)

...................................

7,558,070

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$7,558,070

)

.................................

7,558,070

a

a

a

Total

Investments

(Cost

$210,594,895)

100.0%

..................................

$237,531,159

Other

Assets,

less

Liabilities

(0.0)%

†

...........................................

(8,881)

Net

Assets

100.0%

...........................................................

$237,522,278

a

a

a

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Templeton

Developing

Markets

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TD-13

See

Abbreviations

on

page

TD-

26

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2022,

the

aggregate

value

of

these

securities

was

$2,789,164,

representing

1.2%

of

net

assets.

c

Fair

valued

using

significant

unobservable

inputs.

See

Note

9

regarding

fair

value

measurements.

d

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(c).

e

A

portion

or

all

of

the

security

is

on

loan

at

June

30,

2022.

See

Note

1(d).

f

See

Note

6

regarding

investments

in

Russian

securities.

g

Variable

rate

security.

The

rate

shown

represents

the

yield

at

period

end.

h

See

Note

3(e)

regarding

investments

in

affiliated

management

investment

companies.

i

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TD-14

Templeton

Developing

Markets

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$203,036,825

Cost

-

Non-controlled

affiliates

(Note

3e)

........................................................

7,558,070

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$1,451,588)

..................................

$229,973,089

Value

-

Non-controlled

affiliates

(Note

3e)

.......................................................

7,558,070

Cash

....................................................................................

14

Foreign

currency,

at

value

(cost

$354,478)

........................................................

354,484

Receivables:

Investment

securities

sold

...................................................................

411,889

Capital

shares

sold

........................................................................

10,618

Dividends

...............................................................................

1,674,149

Total

assets

..........................................................................

239,982,313

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

712,818

Capital

shares

redeemed

...................................................................

103,957

Management

fees

.........................................................................

208,217

Distribution

fees

..........................................................................

36,524

Reports

to

shareholders

fees

................................................................

180,323

Trustees'

fees

and

expenses

.................................................................

674

Deferred

tax

...............................................................................

1,038,254

Accrued

expenses

and

other

liabilities

...........................................................

179,268

Total

liabilities

.........................................................................

2,460,035

Net

assets,

at

value

.................................................................

$237,522,278

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$217,021,254

Total

distributable

earnings

(losses)

.............................................................

20,501,024

Net

assets,

at

value

.................................................................

$237,522,278

Templeton

Developing

Markets

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$66,406,077

Shares

outstanding

........................................................................

8,834,425

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$7.52

Class

2:

Net

assets,

at

value

.......................................................................

$167,512,034

Shares

outstanding

........................................................................

22,454,118

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$7.46

Class

4:

Net

assets,

at

value

.......................................................................

$3,604,167

Shares

outstanding

........................................................................

478,987

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$7.52

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TD-15

Templeton

Developing

Markets

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$361,526)

Unaffiliated

issuers:

Paid

in

cash

............................................................................

$3,926,680

Non-cash

dividends

......................................................................

328,571

Non-controlled

affiliates

(Note

3e)

.............................................................

6,374

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

1,138

Non-controlled

affiliates

(Note

3

e

)

.............................................................

8

Total

investment

income

...................................................................

4,262,771

Expenses:

Management

fees

(Note

3

a

)

...................................................................

1,398,460

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

236,193

    Class

4

................................................................................

7,105

Custodian

fees

.............................................................................

36,952

Reports

to

sharehol

ders

fees

..................................................................

32,940

Professional

fees

...........................................................................

68,290

Trustees'

fees

and

expenses

..................................................................

1,982

Other

....................................................................................

6,506

Total

expenses

.........................................................................

1,788,428

Expenses

waived/paid

by

affiliates

(Note

3e)

...................................................

(8,568)

Net

expenses

.........................................................................

1,779,860

Net

investment

income

................................................................

2,482,911

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

(net

of

foreign

taxes

of

$122,338)

Unaffiliated

issuers

......................................................................

2,004,322

Foreign

currency

transactions

................................................................

(68,843)

Net

realized

gain

(loss)

..................................................................

1,935,479

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(71,453,914)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(47,458)

Change

in

deferred

taxes

on

unrealized

appreciation

...............................................

432,149

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(71,069,223)

Net

realized

and

unrealized

gain

(loss)

............................................................

(69,133,744)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(66,650,833)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TD-16

Templeton

Developing

Markets

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$2,482,911

$2,143,492

Net

realized

gain

(loss)

.................................................

1,935,479

21,968,948

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(71,069,223)

(41,997,481)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(66,650,833)

(17,885,041)

Distributions

to

shareholders:

Class

1

.............................................................

(7,166,205)

(2,736,269)

Class

2

.............................................................

(17,858,235)

(7,098,412)

Class

4

.............................................................

(362,928)

(145,812)

Total

distributions

to

shareholders

..........................................

(25,387,368)

(9,980,493)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

8,661,578

1,481,894

Class

2

.............................................................

16,666,677

(5,048,337)

Class

4

.............................................................

141,177

(263,658)

Total

capital

share

transactions

............................................

25,469,432

(3,830,101)

Net

increase

(decrease)

in

net

assets

...................................

(66,568,769)

(31,695,635)

Net

assets:

Beginning

of

period

.....................................................

304,091,047

335,786,682

End

of

period

..........................................................

$237,522,278

$304,091,047

Franklin

Templeton

Variable

Insurance

Products

Trust

TD-17

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

Templeton

Developing

Markets

VIP

Fund

1.

Organization

and

Significant

Accounting

Policies

Franklin

Templeton

Variable

Insurance

Products

Trust

(Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen

separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Templeton

Developing

Markets

VIP

Fund

(Fund)

is

included

in

this

report.

Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

The

Fund

offers

three

classes

of

shares:

Class

1,

Class

2

and

Class

4.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege.  

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day.

Events

can

occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund’s

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TD-18

Semiannual

Report

Templeton

Developing

Markets

VIP

Fund

(continued)

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Securities

Purchased

on

a

When-Issued

or

Delayed

Delivery

Basis

The

Fund

purchases

securities

on

a

when-issued

or

delayed

delivery

basis,

with

payment

and

delivery

scheduled

for

a

future

date.

These

transactions

are

subject

to

market

fluctuations

and

are

subject

to

the

risk

that

the

value

at

delivery

may

be

more

or

less

than

the

trade

date

purchase

price.

Although

the

Fund

will

generally

purchase

these

securities

with

the

intention

of

holding

the

securities,

it

may

sell

the

securities

before

the

settlement

date.

d.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the

Fund.

Additionally,

at

June

30,

2022, the

Fund

held $1,520,586

in

U.S.

Government

and

Agency

securities

as

collateral.

These

securities

are

held as

collateral

in

segregated

accounts

with

the

Fund’s

custodian.

The

Fund

cannot

repledge

or

resell

these

securities

held

as

collateral.

As

such,

the

non-cash

collateral

is

excluded

from

the

Statement

of

Assets

and

Liabilities.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to any

cash collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TD-19

Semiannual

Report

Templeton

Developing

Markets

VIP

Fund

(continued)

e.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and, if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date. 

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

f.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Estimated

expenses

are

accrued

daily.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

g.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

h.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TD-20

Semiannual

Report

Templeton

Developing

Markets

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

trustees

of

the

following

subsidiaries:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

494,207

$4,595,991

941,262

$11,146,256

Shares

issued

in

reinvestment

of

distributions

..........

935,536

7,166,205

221,740

2,736,269

Shares

redeemed

...............................

(332,467)

(3,100,618)

(1,025,538)

(12,400,631)

Net

increase

(decrease)

..........................

1,097,276

$8,661,578

137,464

$1,481,894

Class

2

Shares:

Shares

sold

...................................

1,540,052

$14,227,796

3,029,783

$35,782,088

Shares

issued

in

reinvestment

of

distributions

..........

2,349,768

17,858,235

579,935

7,098,412

Shares

redeemed

...............................

(1,684,772)

(15,419,354)

(4,080,457)

(47,928,837)

Net

increase

(decrease)

..........................

2,205,048

$16,666,677

(470,739)

$(5,048,337)

Class

4

Shares:

Shares

sold

...................................

35,662

$301,618

54,666

$636,847

Shares

issued

in

reinvestment

of

distributions

..........

47,318

362,928

11,826

145,812

Shares

redeemed

...............................

(55,377)

(523,369)

(86,374)

(1,046,317)

Net

increase

(decrease)

..........................

27,603

$141,177

(19,882)

$(263,658)

Subsidiary

Affiliation

Templeton

Asset

Management

Ltd.

(Asset

Management)

Investment

manager

Franklin

Templeton

Investment

Management

Limited

(FTIML)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TD-21

Semiannual

Report

Templeton

Developing

Markets

VIP

Fund

(continued)

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Asset

Management

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

management

fee

rate

was

1.050%

of

the

Fund’s

average

daily

net

assets.

Under

a

subadvisory

agreement,

FTIML,

an

affiliate

of

Asset

Management,

provides

subadvisory

services

to

the

Fund.

The

subadvisory

fee

is

paid

by

Asset

Management

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

b.

Administrative

Fees

Under

an

agreement

with

Asset

Management,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Asset

Management

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

2

and

Class

4

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.25%

and

0.35%

per

year

of

its

average

daily

net

assets

of

Class

2

and

Class

4

respectively.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

e.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Annualized

Fee

Rate

Net

Assets

1.050%

Up

to

and

including

$1

billion

1.000%

Over

$1

billion,

up

to

and

including

$5

billion

0.950%

Over

$5

billion,

up

to

and

including

$10

billion

0.900%

Over

$10

billion,

up

to

and

including

$15

billion

0.850%

Over

$15

billion,

up

to

and

including

$20

billion

0.800%

In

excess

of

$20

billion

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TD-22

Semiannual

Report

Templeton

Developing

Markets

VIP

Fund

(continued)

4.

Income

Taxes

At

June

30,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

passive

foreign

investment

company

shares,

foreign

capital

gains

tax,

corporate

actions

and

wash

sales.

5.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

aggregated

$32,924,546

and

$32,628,026,

respectively.

6.

Concentration

of

Risk

Investing

in

foreign

securities

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities,

such

as

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

Political

and

financial

uncertainty

in

many

foreign

regions

may

increase

market

volatility

and

the

economic

risk

of

investing

in

foreign

securities.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

Investing

in

China

A

shares

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities.

In

general,

A

shares

are

issued

by

companies

incorporated

in

the

People’s

Republic

of

China

(PRC)

and

listed

on

the

Shanghai

and

Shenzhen

Stock

Exchanges

and

available

for

investment

by

domestic

(Chinese)

investors

and

holders

of

a

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Templeton

Developing

Markets

VIP

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$

5,805,544

$

30,434,326

$

(28,681,800)

$

—

$

—

$

7,558,070

7,558,070

$

6,374

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$170,471

$3,970,863

$(4,141,334)

$—

$—

$—

—

$8

Total

Affiliated

Securities

...

$5,976,015

$34,405,189

$(32,823,134)

$—

$—

$7,558,070

$6,382

Cost

of

investments

..........................................................................

$219,693,210

Unrealized

appreciation

........................................................................

$68,123,124

Unrealized

depreciation

........................................................................

(50,285,175)

Net

unrealized

appreciation

(depreciation)

..........................................................

$17,837,949

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TD-23

Semiannual

Report

Templeton

Developing

Markets

VIP

Fund

(continued)

QFII

license

and,

in

the

case

of

certain

eligible

A

shares,

through

the

Shanghai

and

Shenzhen

Stock

Connect

programs.

The

Shanghai

and

Shenzhen

Stock

Exchanges

are,

however,

substantially

smaller,

less

liquid

and

more

volatile

than

the

major

securities

markets

in

the

United

States.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

To

the

extent

that

the

Fund

has

exposure

to

Russian

investments

or

investments

in

countries

affected

by

the

invasion,

the

Fund’s

ability

to

price,

buy,

sell,

receive

or

deliver

such

investments

may

be

impaired.

The

Fund

could

determine

at

any

time

that

certain

of

the

most

affected

securities

have

little

or

no

value.

In

addition,

any

exposure

that

the

Fund

may

have

to

counterparties

in

Russia

or

in

countries

affected

by

the

invasion

could

negatively

impact

the

Fund’s

portfolio.

The

extent

and

duration

of

Russia’s

military

actions

and

the

repercussions

of

such

actions

(including

any

retaliatory

actions

or

countermeasures

that

may

be

taken

by

those

subject

to

sanctions)

are

impossible

to

predict,

but

could

result

in

significant

market

disruptions,

including

in

the

oil

and

natural

gas

markets,

and

may

negatively

affect

global

supply

chains,

inflation

and

global

growth.

These

and

any

related

events

could

significantly

impact

the

Fund’s

performance

and

the

value

of

an

investment

in

the

Fund,

even

beyond

any

direct

exposure

the

Fund

may

have

to

Russian

issuers

or

issuers

in

other

countries

affected

by

the

invasion.

The

Valuation

Committee

determined

that

based

on

their

analysis

of

the

market

and

access

to

marker

participants,

the

Russian

equity

securities

held

by

the

Fund

had

little

or

no

value

at

June

30,

2022.

7.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

8.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

6.

Concentration

of

Risk

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TD-24

Semiannual

Report

Templeton

Developing

Markets

VIP

Fund

(continued)

9.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's assets

carried

at

fair

value,

is

as

follows:

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the period.

At

June

30,

2022,

the

reconciliation is

as follows:

Level

1

Level

2

Level

3

Total

Templeton

Developing

Markets

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Brazil

................................

$

6,142,011

$

—

$

—

$

6,142,011

Cambodia

............................

—

920,317

—

920,317

China

...............................

6,916,668

63,153,770

2,558,965

72,629,403

Egypt

................................

—

10,804

—

10,804

Hong

Kong

...........................

—

3,064,752

—

3,064,752

Hungary

.............................

—

1,672,282

—

1,672,282

India

................................

—

21,057,820

—

21,057,820

Indonesia

............................

—

1,750,164

—

1,750,164

Mexico

..............................

4,623,747

—

—

4,623,747

Pakistan

.............................

—

452,485

—

452,485

Peru

................................

919,433

—

—

919,433

Philippines

............................

—

658,409

—

658,409

Russia

...............................

—

—

—

a

—

South

Africa

...........................

—

1,975,944

—

1,975,944

South

Korea

..........................

—

48,369,295

—

48,369,295

Taiwan

...............................

—

35,526,463

—

35,526,463

Thailand

.............................

—

5,051,923

—

5,051,923

United

Kingdom

........................

—

3,673,402

—

3,673,402

United

States

..........................

8,377,523

—

—

8,377,523

Preferred

Stocks

........................

13,096,912

—

—

13,096,912

Escrows

and

Litigation

Trusts

...............

—

—

—

a

—

Short

Term

Investments

...................

7,558,070

—

—

7,558,070

Total

Investments

in

Securities

...........

$47,634,364

$187,337,830

b

$2,558,965

$237,531,159

a

Includes

securities

determined

to

have

no

value

at

June

30,

2022.

b

Includes

foreign

securities

valued

at

$187,337,830,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TD-25

Semiannual

Report

Templeton

Developing

Markets

VIP

Fund

(continued)

Significant

unobservable

valuation

inputs

for

material

Level

3 assets

and/or

liabilities and

impact

to

fair

value

as

a

result

of

changes

in

unobservable

valuation

inputs

as

of

June

30,

2022,

are

as

follows:

10.

New

Accounting

Pronouncements

In June

2022,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

Balance

at

Beginning

of

Period

Purchases

a

Sales

Transfer

Into

Level

3

b

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciation

(Depreciation)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a

a

a

a

a

a

a

a

a

a

Templeton

Developing

Markets

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

China

......

$

2,772,041

$

—

$

—

$

—

$

—

$

—

$

—

$

(213,076)

$

2,558,965

$

(213,076)

Russia

......

—

2,873,807

—

13,340,741

—

—

—

(16,214,548)

—

c

(16,214,548)

Escrows

and

Litigation

Trusts

—

c

—

—

—

—

—

—

—

—

c

—

Total

Investments

in

Securities

.......

$2,772,041

$2,873,807

$—

$13,340,741

$—

$—

$—

$(16,427,624)

$2,558,965

$(16,427,624)

a

Purchases

include

all

purchases

of

securities

and

securities

received

in

corporate

actions.

b

Transferred

into

level

3

as

a

result

of

the

unavailability

of

a

quoted

market

price

in

an

active

market

for

identical

securities

or

as

a

result

of

the

unreliability

of

the

foreign

exchange

rate

and

other

significant

observable

valuation

inputs.

May

include

amounts

related

to

a

corporate

action.

c

Includes

securities

determined

to

have

no

value.

Description

Fair

Value

at

End

of

Period

Valuation

Technique

Unobservable

Inputs

Amount

Impact

to

Fair

Value

if

Input

Increases

a

Assets:

Investments

in

Securities:

Common

Stocks:

China

.....................

$2,558,965

Discount

to

last

traded

price

Discount

0.0%

Decrease

Index

movement

-12.4%

Increase

b

All

Other

Investments

..........

–

c

Total

.......................

$2,558,965

a

Represents

the

directional

change

in

the

fair

value

that

would

result

from

a

significant

and

reasonable

increase

in

the

corresponding

input.

A

significant

and

reasonable

decrease

in

the

input

would

have

the

opposite

effect.

Significant

impacts,

if

any,

to

fair

value

and/or

net

assets

have

been

indicated.

b

Represents

a

significant

impact

to

fair

value

but

not

net

assets.

c

Includes

securities

determined

to

have

no

value

at

June

30,

2022.

9.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TD-26

Semiannual

Report

Templeton

Developing

Markets

VIP

Fund

(continued)

11.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

Selected

Portfolio

ADR

American

Depositary

Receipt

GDR

Global

Depositary

Receipt

TF-1

Semiannual

Report

Templeton

Foreign

VIP

Fund

This

semi

annual

report

for

Templeton

Foreign

VIP

Fund

covers

the

period

ended

June

30,

2022

.

Class

1

Performance

Summary

as

of

June

30,

2022

The

Fund’s

Class

1

Shares

posted

a

-11.85%

total

return*

for

the

six-month

period

ended

June

30,

2022

.

*The

Fund

has

a

fee

waiver

associated

with

any

investment

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

fee

waiver;

without

this

waiver,

the

results

would

have

been

lower.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

TF-2

Semiannual

Report

Templeton

Foreign

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

long-term

capital

growth.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

investments

of

issuers

located

outside

the

U.S.,

including

those

in

emerging

markets.

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

Special

risks

are

associated

with

foreign

investing,

including

currency

fluctuations,

economic

instability

and

political

developments;

investments

in

developing

markets

involve

heightened

risks

related

to

the

same

factors.

Currency

rates

may

fluctuate

significantly

over

short

periods

of

time,

and

can

reduce

returns.

Because

the

Fund

may

invest

at

least

a

significant

portion

of

its

assets

in

companies

in

a

specific

region,

including

Europe,

it

is

subject

to

greater

risks

of

adverse

developments

in

that

region

and/or

the

surrounding

regions

than

a

fund

that

is

more

broadly

diversified

geographically.

Current

political

uncertainty

concerning

the

economic

consequences

of

the

departure

of

the

U.K.

from

the

European

Union

may

increase

market

volatility.

Derivatives,

including

currency

management

strategies,

involve

costs

and

can

create

economic

leverage

in

the

portfolio

which

may

result

in

significant

volatility

and

cause

the

Fund

to

participate

in

losses

(as

well

as

enable

gains)

in

an

amount

that

exceeds

the

Fund’s

initial

investment.

The

Fund

may

not

achieve

the

anticipated

benefits,

and

may

realize

losses

when

a

counterparty

fails

to

perform

as

promised.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

For

comparison,

the

Fund’s

new

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)

ex

USA

Index-NR,

posted

a

-18.42%

total

return

for

the

period

under

review.

1

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

ACWI-NR,

posted

a

-20.18%

total

return

for

the

six

months

ended

June

30,

2022.

1

The

combination

of

resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

many

countries.

This

inflationary

pressure

led

many

of

the

world’s

central

banks

to

adopt

less

accommodative

stances

regarding

monetary

policy.

The

Chinese

government’s

imposition

of

new

lockdowns

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

pressured

Asian

and

global

emerging

market

stocks.

Russia’s

invasion

of

Ukraine

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

constrained

companies

that

do

business

with

Russia

and

disrupted

global

economic

activity

and

commodity

markets.

In

the

U.S.,

gross

domestic

product

(GDP)

growth

turned

negative

in

the

first

quarter

of

2022

as

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

the

economy.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

Geographic

Composition

6/30/22

%

of

Total

Net

Assets

Europe

53.0%

Asia

40.2%

North

America

2.0%

Latin

America

&

Caribbean

1.5%

Short-Term

Investments

&

Other

Net

Assets

3.3%

1.

Source:

Morningstar.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

Templeton

Foreign

VIP

Fund

TF-3

Semiannual

Report

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings,

and

anticipated

instituting

further

interest

rate

increases

at

future

meetings.

Economic

growth

in

the

eurozone

maintained

a

slow

rate

in

the

first

quarter

of

2022

as

the

war

in

Ukraine

disrupted

supply

chains,

sent

commodity

prices

higher,

and

weakened

the

economic

outlook.

The

war

in

Ukraine

contributed

to

record

high

inflation

across

the

eurozone

as

commodity

and

oil

prices

soared.

The

European

Central

Bank

indicated

it

will

raise

interest

rates

in

July,

the

first

increase

in

more

than

a

decade,

to

fight

growing

inflation.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-20.79%

total

return

for

the

six

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-17.69%

total

return

for

the

six-month

period.

1

While

many

Asian

countries

experienced

improving

economic

conditions,

Japan’s

GDP

contracted

in

the

first

quarter

of

2022

after

having

returned

to

growth

in

the

fourth

quarter

of

2021.

Although

China’s

economy

continued

to

grow,

it

was

pressured

by

coronavirus-related

restrictions

and

government

measures

to

limit

real

estate

speculation.

Unexpected

regulatory

changes

by

the

Chinese

government,

which

negatively

impacted

education-

and

technology-

related

businesses,

and

investor

concerns

about

the

solvency

of

several

large

Chinese

property

developers

further

pressured

Chinese

stocks.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-17.63%

total

return

for

the

six

months

under

review.

1

Following

Russia’s

invasion

of

Ukraine,

climbing

food

and

energy

prices

kindled

inflationary

pressures

and

raised

concerns

over

the

possibility

of

government

debt

defaults

in

some

countries.

Meanwhile,

some

countries,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

have

benefited

from

the

rising

commodity

prices.

Investment

Strategy

When

choosing

equity

investments

for

the

Fund,

we

apply

a

bottom-up,

value-oriented,

long-term

approach,

focusing

on

the

market

price

of

a

company’s

securities

relative

to

our

evaluation

of

the

company’s

long-term

earnings,

asset

value

and

cash

flow

potential.

We

also

consider

a

company’s

price/earnings

ratio,

price/cash

flow

ratio,

profit

margins

and

liquidation

value.

The

Fund

may,

from

time

to

time,

engage

in

currency-related

derivatives

to

seek

to

hedge

(protect)

against

currency

risks.

The

Fund

may

also

use

a

variety

of

equity-related

derivatives

for

various

purposes

including

enhancing

Fund

returns,

increasing

liquidity

and

gaining

exposure

to

particular

markets

in

more

efficient

or

less

expensive

ways.

Manager’s

Discussion

Templeton

Foreign

VIP

Fund

declined

during

the

review

period,

but

limited

losses

relative

to

its

benchmark.

The

Fund

outperformed

the

MSCI

ACWI

ex

USA

Index-NR

by

the

largest

margin

since

its

inception

nearly

three

decades

ago.

Relative

outperformance

during

the

period

was

attributable

primarily

to

stock

selection,

though

favorable

sector

allocations

also

helped.

We

have

continued

to

look

for

companies

that

feature

both

earnings

resilience

in

a

slowing

economy

and

pricing

power

in

an

inflationary

environment.

In

general,

we

have

been

focused

on

high

quality

stocks

with

Top

10

Holdings

6/30/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Shell

plc

4.6%

Oil,

Gas

&

Consumable

Fuels,

Netherlands

BP

plc

4.4%

Oil,

Gas

&

Consumable

Fuels,

United

Kingdom

Samsung

Electronics

Co.

Ltd.

3.9%

Technology

Hardware,

Storage

&

Peripherals,

South

Korea

Hitachi

Ltd.

3.6%

Industrial

Conglomerates,

Japan

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

3.5%

Semiconductors

&

Semiconductor

Equipment,

Taiwan

Standard

Chartered

plc

3.3%

Banks,

United

Kingdom

AstraZeneca

plc

3.2%

Pharmaceuticals,

United

Kingdom

Bayer

AG

3.1%

Pharmaceuticals,

Germany

AIA

Group

Ltd.

2.6%

Insurance,

Hong

Kong

Imperial

Brands

plc

2.5%

Tobacco,

United

Kingdom

Templeton

Foreign

VIP

Fund

TF-4

Semiannual

Report

idiosyncratic

exposures

and

value

drivers.

We

believe

our

portfolios

are

currently

well-balanced

in

terms

of

exposures

and

value

types,

while

remaining

somewhat

defensive

in

construction.

Given

macroeconomic

vulnerabilities,

we

are

avoiding

exposure

to

companies

that,

in

our

assessment,

have

high

leverage,

poor

pricing

power,

weak

cash

flows

and

competitive

disadvantages.

In

company

forecasts,

we

are

thinking

carefully

about

just

how

deep

and

wide

intermediate-term

earnings

downside

could

be

should

tighter

policy

persist

and

intensify

macroeconomic

headwinds.

Therefore,

we

favor

companies

with

a

narrower

range

of

earnings-per-share

forecasts

and

don’t

think

this

is

the

right

environment

to

stretch

for

excessively

high

risk/reward

stocks.

We

continue

to

be

diversified

in

the

overall

number

of

holdings

and

concentrate

larger

positions

only

where

conviction

is

very

high,

such

as

in

some

pharmaceuticals

and

integrated

oil

companies.

From

a

sector

standpoint,

stock

selection

among

overweighted

industrials

holdings

notably

contributed

during

the

period,

led

by

U.K.

defense

contractor

BAE

Systems.

Shares

advanced

as

the

war

in

Ukraine

resuscitated

demand

for

high

technology

military

platforms.

We

believe

the

stock

remains

attractively

priced

at

a

discount

to

U.S.

defense

peers

despite

having,

in

our

view,

a

higher

growth

profile

and

superior

margin

upside.

Following

several

years

of

underperformance,

BAE

introduced

a

new

management

team

in

2020

that

has

since

delivered

above-industry-

average

growth

and

ongoing

improvement

in

operating

margins

and

cash

conversion.

In

addition

to

delivering

on

its

operating

and

financial

objectives,

management

has

eliminated

burdensome

pension

obligations

and

generated

better-than-expected

flows

that

are

being

used

to

raise

dividends

and

repurchase

shares.

We

remain

constructive

given

generally

increasing

defense

budgets,

good

long-

term

revenue

visibility,

and

a

degree

of

inflation

protection

inherent

in

BAE’s

business

model

given

inflation

protection

through

contract

pass-through

provisions.

Stock

selection

and

an

overweighted

allocation

in

energy

also

supported

relative

performance.

Global

oil

majors

BP

and

Shell

both

rallied

on

a

combination

of

decade-high

oil

prices

and

positive

earnings

results.

Strong

supply-and-

demand

fundamentals

have

persisted,

with

oil

demand

increasing

globally

as

travel

and

economic

activity

recovered

from

pandemic

restrictions

and

as

the

Russia-Ukraine

conflict

significantly

increased

the

risks

to

future

oil

supply.

Despite

the

strong

move

in

energy

prices

and

resilient

performance

of

energy-related

equities,

we

still

believe

many

integrated

oil

stocks

are

significantly

undervalued,

with

near-

term

free

cash

flow

yields

approaching

20%

and

being

used

to

fund

solid

payouts

and

significant

share

repurchases.

We

view

elevated

oil

prices

in

many

cases

as

a

free

call

option

on

these

stocks,

which

in

our

view

represent

good

value

even

at

the

more

normalized

price

levels

of

$60-70/barrel

that

are

embedded

in

our

company

models.

Other

notable

contributors

included

stock

selection

in

health

care

and

financials.

In

health

care,

shares

of

German

pharmaceuticals

and

chemicals

firm

Bayer

advanced

after

management

reported

better-than-expected

2022

first-

quarter

results

driven

by

strength

in

the

crop

sciences

division.

Encouragingly,

management

indicated

that

a

“very

significant”

proportion

of

the

division’s

full-year

profit

target

was

achieved

in

the

first

quarter

alone.

Broadly

speaking,

we

believe

the

developments

at

Bayer

are

trending

in

the

right

direction.

In

addition

to

the

strong

earnings

upside

from

the

crop

sciences

division,

the

pharmaceuticals

pipeline

is

improving

and

the

glyphosate

litigation

outlook

(inherited

from

the

firm’s

2018

acquisition

of

U.S.

chemicals

giant

Monsanto)

is

getting

better.

At

current

low

valuations,

we

believe

the

company

offers

a

very

compelling

risk/reward

profile

across

a

range

of

environments

given

its

diverse

product

portfolio.

We

are

encouraged

to

see

earnings

revisions

begin

to

move

higher

and

believe

that

Bayer

is

well-positioned

to

benefit

from

its

ongoing

restructuring

initiatives.

From

the

financials

sector,

U.K.-based

emerging

markets

bank

Standard

Chartered

benefited

from

its

high

sensitivity

to

interest

rates

in

a

rising

rate

environment.

Management

reported

stronger-than-expected

first-quarter

results

during

the

period

and

upgraded

guidance

for

full-year

revenue

growth.

Turning

to

detractors,

stock-specific

weakness

in

the

consumer

discretionary

sector

was

the

biggest

relative

detractor

during

the

period.

Just

Eat

Takeaway.com,

the

largest

food

delivery

platform

in

Europe,

finished

as

the

Fund’s

biggest

individual

detractor.

Shares

declined

on

concerns

about

competition,

profitability,

portfolio

optimization

and

the

departure

of

both

its

chief

executive

officer

and

chief

operating

officer.

We

believe

Just

Eat

holds

a

defensible

position

in

its

core

markets

as

a

low-

cost

operator

and

benefits

from

strong

local

network

effects

between

restaurants,

customers

and

couriers.

Ongoing

restructuring

and

portfolio

rationalization

should

help

the

firm

realize

the

value

of

assets

that

are

currently

being

excessively

discounted,

based

on

our

analysis.

Utilities

also

lagged,

pressured

by

German

power

provider

E.ON,

which

declined

due

to

rising

concerns

around

gas

supply

in

Europe.

While

E.ON

does

not

have

direct

contracts

with

Russia,

rising

prices

may

put

pressure

on

its

business

and

take

some

time

to

pass

on.

Looking

at

the

longer

term,

we

believe

E.ON

is

well-positioned

to

benefit

from

the

energy

transition

in

Europe

and

should

be

able

to

grow

Templeton

Foreign

VIP

Fund

TF-5

Semiannual

Report

capital

and

dividends

steadily

over

time.

We

also

believe

that

the

company

is

relatively

well-insulated

from

near-term

inflationary

pressures

given

that

customer

contracts

roll

over

annually

and

regulated

return

targets

are

reset

every

three

to

four

years.

An

underweighted

position

in

materials

modestly

detracted,

pressured

by

German

specialty

materials

firm

Covestro.

The

company

reported

strong

results,

but

downgraded

earnings

guidance

due

to

high

energy

and

raw

materials

costs.

At

recent

depressed

valuations,

we

continue

to

believe

the

stock

offers

potentially

good

value

with

a

well-diversified

portfolio

of

industrial

exposures

and

high

leverage

to

an

eventual

demand

recovery

from

China.

From

a

regional

standpoint,

stock

selection

in

Europe

notably

contributed

to

relative

returns,

led

by

the

U.K.,

while

Asian

holdings

also

positively

contributed,

led

by

Japan.

Thank

you

for

your

participation

in

Templeton

Foreign

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Class

1

Fund

Expenses

Templeton

Foreign

VIP

Fund

TF-6

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

any

ongoing

expenses

of

the

Contract

for

which

the

Fund

is

an

investment

option

or

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

1

$1,000

$881.50

$3.95

$1,020.59

$4.25

0.85%

TF-7

Semiannual

Report

TF

P1

05/22

SUPPLEMENT

DATED

MAY

2,

2022

TO

THE

CLASS

1

PROSPECTUS

DATED

MAY

1,

2022

OF

TEMPLETON

FOREIGN

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

The

Class

1

prospectus

of

the

Fund

is

amended

as

follows:

I.

Effective

on

May

1,

2022,

the

Board

of

Trustees

of

the

Trust

reduced

the

management

fees

for

the

Templeton

Foreign

VIP

Fund.

Therefore,

the

following

replaces

the

“Annual

Fund

Operating

Expenses”

and

“Example”

tables

in

the

“Fund

Summaries

–

Templeton

Foreign

VIP

Fund

–

Fees

and

Expenses

of

the

Fund”

section

of

the

prospectus:

Annual

Fund

Operating

Expenses

(expenses

that

you

pay

each

year

as

a

percentage

of

the

value

of

your

investment)

1.

Management

fees

of

the

Fund

have

been

restated

to

reflect

current

fiscal

year

fees

as

a

result

of

a

decrease

in

the

Fund’s

contractual

management

fee

rate

effective

on

May

1,

2022.

If

the

management

fees

were

not

restated

to

reflect

such

decrease

in

fees,

the

amounts

shown

above

would

be

greater.

Consequently,

the

Fund’s

total

annual

Fund

operating

expenses

differ

from

the

ratio

of

expenses

to

average

net

assets

shown

in

the

Financial

Highlights.

2.

Total

annual

Fund

operating

expenses

differ

from

the

ratio

of

expenses

to

average

net

assets

shown

in

the

Financial

Highlights,

which

reflect

the

operating

expenses

of

the

Fund

and

do

not

include

acquired

fund

fees

and

expenses.

3.

The

investment

manager

has

contractually

agreed

in

advance

to

reduce

its

fee

for

at

least

one

year

following

the

date

of

this

prospectus

as

a

result

of

the

Fund's

investment

in

one

or

more

Franklin

Templeton

affiliated

funds

(acquired

fund),

including

a

Franklin

Templeton

money

fund.

Contractual

fee

waiver

and/or

expense

reimbursement

agreements

may

not

be

changed

or

terminated

during

the

time

period

set

forth

above.

Example

This

Example

is

intended

to

help

you

compare

the

cost

of

investing

in

the

Fund

with

the

cost

of

investing

in

other

mutual

funds.

The

Example

assumes

that

you

invest

$10,000

in

the

Fund

for

the

time

periods

indicated

and

then

redeem

all

of

your

shares

at

the

end

of

the

period.

The

Example

also

assumes

that

your

investment

has

a

5%

return

each

year

and

that

the

Fund's

operating

expenses

remain

the

same.

The

Example

reflects

adjustments

made

to

the

Fund's

operating

expenses

due

to

the

fee

waivers

and/or

expense

reimbursements

by

management

for

the

1

Year

numbers

only.

Although

your

actual

costs

may

be

higher

or

lower,

based

on

these

assumptions

your

costs

would

be:

II.

The

following

replaces

the

second

to

last

paragraph

of

the

“Fund

Details

–

Templeton

Foreign

VIP

Fund

–

Management”

section

of

the

prospectus:

The

Fund

pays

Investment

Counsel

a

fee

for

managing

the

Fund's

assets.

Effective

May

1,

2022,

the

Fund’s

investment

management

fee

was

reduced,

as

approved

by

the

board

of

trustees.

Class

1

Management

fees

1

0.76%

Distribution

and

service

(12b-1)

fees

None

Other

expenses

0.05%

Acquired

fund

fees

and

expenses

2

0.01%

Total

annual

Fund

operating

expenses

2

0.82%

Fee

waiver

and/or

expense

reimbursement

3

-0.01%

Total

annual

Fund

operating

expenses

after

fee

waiver

and/or

expense

reimbursement

2,3

0.81%

1

Year

3

Years

5

Years

10

Years

Class

1

$83

$261

$455

$1,014

TF-8

Semiannual

Report

Prior

to

May

1,

2022,

the

Fund

paid

the

investment

manager

a

fee

equal

to

an

annual

rate

based

on

the

Fund’s

average

weekly

net

assets,

as

listed

below:

0.900%

of

the

value

of

its

average

daily

net

assets

up

to

and

including

$200

million;

0.810%

of

the

value

of

its

average

daily

net

assets

over

$200

million,

up

to

and

including

$700

million;

0.775%

of

the

value

of

its

average

daily

net

assets

over

$700

million,

up

to

and

including

$1.2

billion;

0.750%

of

the

value

of

its

average

daily

net

assets

over

$1.2

billion,

up

to

and

including

$1.3

billion;

0.675%

of

the

value

of

its

average

daily

net

assets

over

$1.3

billion,

up

to

and

including

$10

billion;

0.655%

of

the

value

of

its

average

daily

net

assets

over

$10

billion,

up

to

and

including

$15

billion;

0.635%

of

the

value

of

its

average

daily

net

assets

over

$15

billion,

up

to

and

including

$20

billion;

and

0.615%

of

the

value

of

its

average

daily

net

assets

in

excess

of

$20

billion.

Effective

May

1,

2022,

the

Fund

pays

the

investment

manager

a

fee

equal

to

an

annual

rate

based

on

the

Fund’s

average

weekly

net

assets,

as

listed

below:

0.800%

of

the

value

of

its

average

daily

net

assets

up

to

and

including

$700

million;

0.775%

of

the

value

of

its

average

daily

net

assets

over

$700

million,

up

to

and

including

$1.2

billion;

and

0.675%

of

the

value

of

its

average

daily

net

assets

in

excess

of

$1.2

billion.

For

the

fiscal

year

ended

December

31,

2021,

Investment

Counsel

agreed

to

reduce

its

fees

to

reflect

reduced

services

resulting

from

the

Fund's

investment

in

Franklin

Templeton

affiliated

funds

(acquired

fund).

For

the

fiscal

year

ended

December

31,

2021,

the

management

fees

for

the

Fund,

before

and

after

waivers,

were

0.81%

and

0.80%,

respectively.

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

Franklin

Templeton

Variable

Insurance

Products

Trust

TF-9

Semiannual

Report

TF

P1

P2

P4

08/22

SUPPLEMENT

DATED

AUGUST

10,

2022

TO

THE

PROSPECTUSES

DATED

MAY

1,

2022

TEMPLETON

FOREIGN

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

The

prospectus

is

amended

as

follows:

I.

The

portfolio

management

team

under

the

“Fund

Summaries

–

Templeton

Foreign

VIP

Fund”

section

on

page

TF-S5

of

the

prospectus

is

replaced

with

the

following:

Peter

A.

Nori

,

CFA

Executive

Vice

President/Portfolio

Manager-Research

Analyst

of

Investment

Counsel

and

portfolio

manager

of

the

Fund

since

1999.

Matthew

R.

Nagle,

CFA

Portfolio

Manager

of

Investment

Counsel

and

portfolio

manager

of

the

Fund

since

2018.

Heather

Waddell,

CFA

Senior

Vice

President/Portfolio

Manager-Research

Analyst

of

Investment

Counsel

and

portfolio

manager

of

the

Fund

since

2018.

II.

The

portfolio

manager

team

under

the

“Fund

Details

–

Templeton

Foreign

VIP

Fund

–

Management”

section

beginning

on

page

TF-D7

of

the

prospectus

is

replaced

with

the

following:

Peter

A.

Nori

,

CFA

Executive

Vice

President/Portfolio

Manager

-

Research

Analyst

of

Investment

Counsel

Mr.

Nori

has

been

the

lead

portfolio

manager

of

the

Fund

since

1999.

He

has

primary

responsibility

for

the

investments

of

the

Fund.

He

has

final

authority

over

all

aspects

of

the

Fund's

investment

portfolio,

including

but

not

limited

to,

purchases

and

sales

of

individual

securities,

portfolio

risk

assessment,

and

the

management

of

daily

cash

balances

in

accordance

with

anticipated

investment

management

requirements.

The

degree

to

which

he

may

perform

these

functions,

and

the

nature

of

these

functions,

may

change

from

time

to

time.

He

joined

Franklin

Templeton

in

1987.

Matthew

R.

Nagle,

CFA

Portfolio

Manager

of

Investment

Counsel

Mr.

Nagle

has

been

a

portfolio

manager

of

the

Fund

since

2018,

providing

research

and

advice

on

the

purchases

and

sales

of

individual

securities,

and

portfolio

risk

assessment.

He

joined

Franklin

Templeton

in

2003.

Heather

Waddell,

CFA

Senior

Vice

President/Portfolio

Manager

-

Research

Analyst

of

Investment

Counsel

Ms.

Waddell

has

been

a

portfolio

manager

of

the

Fund

since

2018,

providing

research

and

advice

on

the

purchases

and

sales

of

individual

securities,

and

portfolio

risk

assessment.

She

joined

Franklin

Templeton

in

1996.

CFA

®

and

Chartered

Financial

Analyst

®

are

trademarks

owned

by

CFA

Institute.

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Foreign

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TF-10

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.90

$13.57

$14.23

$13.01

$15.80

$13.89

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.22

0.23

0.32

c

0.44

0.29

0.30

Net

realized

and

unrealized

gains

(losses)

(1.85)

0.39

(0.54)

1.19

(2.64)

2.03

Total

from

investment

operations

........

(1.63)

0.62

(0.22)

1.63

(2.35)

2.33

Less

distributions

from:

Net

investment

income

..............

(0.43)

(0.29)

(0.44)

(0.27)

(0.44)

(0.42)

Net

realized

gains

.................

—

—

—

(0.14)

—

—

Total

distributions

...................

(0.43)

(0.29)

(0.44)

(0.41)

(0.44)

(0.42)

Net

asset

value,

end

of

period

..........

$11.84

$13.90

$13.57

$14.23

$13.01

$15.80

Total

return

d

.......................

(11.85)%

4.44%

(0.92)%

12.84%

(15.27)%

17.02%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.86%

0.87%

0.86%

0.85%

0.83%

0.82%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.85%

0.86%

0.84%

0.83%

0.81%

0.81%

f

Net

investment

income

...............

3.23%

1.58%

2.68%

c

3.25%

1.96%

1.99%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$94,492

$114,563

$113,317

$121,948

$114,784

$152,684

Portfolio

turnover

rate

................

12.37%

26.13%

40.07%

28.52%

21.38%

26.81%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.14

per

share

related

to

an

adjustment

for

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.54%.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Foreign

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TF-11

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.59

$13.28

$13.93

$12.74

$15.47

$13.61

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.20

0.19

0.28

c

0.40

0.25

0.26

Net

realized

and

unrealized

gains

(losses)

(1.81)

0.38

(0.53)

1.16

(2.58)

1.98

Total

from

investment

operations

........

(1.61)

0.57

(0.25)

1.56

(2.33)

2.24

Less

distributions

from:

Net

investment

income

..............

(0.38)

(0.26)

(0.40)

(0.23)

(0.40)

(0.38)

Net

realized

gains

.................

—

—

—

(0.14)

—

—

Total

distributions

...................

(0.38)

(0.26)

(0.40)

(0.37)

(0.40)

(0.38)

Net

asset

value,

end

of

period

..........

$11.60

$13.59

$13.28

$13.93

$12.74

$15.47

Total

return

d

.......................

(11.93)%

4.16%

(1.16)%

12.53%

(15.44)%

16.69%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.11%

1.11%

1.11%

1.10%

1.08%

1.07%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.10%

1.11%

f

1.09%

1.08%

1.06%

1.06%

g

Net

investment

income

...............

2.99%

1.35%

2.42%

c

3.00%

1.71%

1.74%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$684,733

$831,031

$1,084,789

$1,117,813

$1,060,101

$1,394,475

Portfolio

turnover

rate

................

12.37%

26.13%

40.07%

28.52%

21.38%

26.81%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.13

per

share

related

to

an

adjustment

for

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.28%.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Foreign

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TF-12

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.87

$13.54

$14.20

$12.96

$15.71

$13.71

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.19

0.18

0.28

c

0.39

0.24

0.23

Net

realized

and

unrealized

gains

(losses)

(1.85)

0.39

(0.55)

1.20

(2.63)

2.03

Total

from

investment

operations

........

(1.66)

0.57

(0.27)

1.59

(2.39)

2.26

Less

distributions

from:

Net

investment

income

..............

(0.37)

(0.24)

(0.39)

(0.21)

(0.36)

(0.26)

Net

realized

gains

.................

—

—

—

(0.14)

—

—

Total

distributions

...................

(0.37)

(0.24)

(0.39)

(0.35)

(0.36)

(0.26)

Net

asset

value,

end

of

period

..........

$11.84

$13.87

$13.54

$14.20

$12.96

$15.71

Total

return

d

.......................

(12.06)%

4.10%

(1.34)%

12.49%

(15.54)%

16.62%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.21%

1.21%

1.21%

1.20%

1.18%

1.17%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.20%

1.21%

f

1.19%

1.18%

1.16%

1.16%

g

Net

investment

income

...............

2.89%

1.22%

2.33%

c

2.90%

1.61%

1.64%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$75,665

$91,428

$106,224

$113,681

$125,265

$159,944

Portfolio

turnover

rate

................

12.37

%

26.13%

40.07%

28.52%

21.38%

26.81%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.13

per

share

related

to

an

adjustment

for

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.19%.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Templeton

Foreign

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TF-13

I

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

96.7%

Aerospace

&

Defense

4.5%

BAE

Systems

plc

.....................................

United

Kingdom

1,943,511

$

19,672,861

Dassault

Aviation

SA

...................................

France

93,730

14,636,442

a

Rolls-Royce

Holdings

plc

...............................

United

Kingdom

4,150,888

4,223,505

38,532,808

Airlines

0.6%

a,b

International

Consolidated

Airlines

Group

SA

.................

United

Kingdom

3,911,187

5,144,271

Auto

Components

4.2%

Continental

AG

.......................................

Germany

162,573

11,410,253

a

Faurecia

SE

.........................................

France

587,205

11,767,250

Valeo

..............................................

France

662,624

12,911,253

36,088,756

Automobiles

3.5%

Bayerische

Motoren

Werke

AG

...........................

Germany

172,762

13,391,977

Honda

Motor

Co.

Ltd.

..................................

Japan

693,600

16,720,379

30,112,356

Banks

14.2%

ING

Groep

NV

.......................................

Netherlands

1,412,693

13,916,630

Kasikornbank

PCL

....................................

Thailand

3,030,200

12,950,952

b

KB

Financial

Group,

Inc.,

ADR

...........................

South

Korea

475,106

17,673,943

Lloyds

Banking

Group

plc

...............................

United

Kingdom

32,585,097

16,762,496

Shinhan

Financial

Group

Co.

Ltd.

.........................

South

Korea

586,529

16,942,506

Standard

Chartered

plc

.................................

United

Kingdom

3,717,595

28,060,987

Sumitomo

Mitsui

Financial

Group,

Inc.

......................

Japan

510,700

15,177,811

121,485,325

Chemicals

1.0%

c

Covestro

AG,

144A,

Reg

S

..............................

Germany

236,510

8,218,023

Construction

&

Engineering

0.5%

Sinopec

Engineering

Group

Co.

Ltd.,

H

.....................

China

9,882,000

4,534,724

Construction

Materials

1.1%

CRH

plc

............................................

Ireland

272,399

9,399,718

Diversified

Financial

Services

1.1%

EXOR

NV

...........................................

Netherlands

156,810

9,798,583

Electronic

Equipment,

Instruments

&

Components

0.6%

a

Landis+Gyr

Group

AG

..................................

Switzerland

101,763

5,341,479

Energy

Equipment

&

Services

2.2%

SBM

Offshore

NV

.....................................

Netherlands

1,373,635

18,603,173

Food

&

Staples

Retailing

1.5%

Sundrug

Co.

Ltd.

......................................

Japan

581,900

13,011,010

Health

Care

Providers

&

Services

1.6%

Fresenius

Medical

Care

AG

&

Co.

KGaA

....................

Germany

280,000

14,027,641

Household

Durables

1.3%

Sony

Group

Corp.

.....................................

Japan

134,100

10,934,749

Industrial

Conglomerates

6.1%

b

CK

Hutchison

Holdings

Ltd.

..............................

United

Kingdom

3,085,500

20,931,902

Hitachi

Ltd.

..........................................

Japan

648,200

30,829,237

51,761,139

Insurance

4.0%

AIA

Group

Ltd.

.......................................

Hong

Kong

2,012,600

21,990,674

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Templeton

Foreign

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TF-14

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Insurance

(continued)

Prudential

plc

........................................

Hong

Kong

1,013,664

$

12,607,133

34,597,807

Interactive

Media

&

Services

0.4%

a

Baidu,

Inc.,

ADR

......................................

China

23,330

3,469,871

Internet

&

Direct

Marketing

Retail

4.3%

a

Alibaba

Group

Holding

Ltd.

..............................

China

1,165,300

16,623,357

a,c

Just

Eat

Takeaway.com

NV,

144A,

Reg

S

...................

United

Kingdom

343,051

5,390,250

a

Prosus

NV

..........................................

China

220,894

14,303,009

36,316,616

Machinery

1.4%

Komatsu

Ltd.

........................................

Japan

352,800

7,854,411

Toyota

Industries

Corp.

.................................

Japan

62,400

3,868,541

11,722,952

Media

1.5%

a

Informa

plc

..........................................

United

Kingdom

1,265,181

8,172,502

TBS

Holdings,

Inc.

....................................

Japan

371,900

4,666,511

12,839,013

Metals

&

Mining

3.8%

Alamos

Gold,

Inc.,

A

...................................

Canada

956,452

6,714,293

Sumitomo

Metal

Mining

Co.

Ltd.

..........................

Japan

429,200

13,304,603

Wheaton

Precious

Metals

Corp.

..........................

Brazil

341,800

12,315,634

32,334,530

Multiline

Retail

0.7%

Seria

Co.

Ltd.

........................................

Japan

348,800

6,200,202

Multi-Utilities

1.2%

E.ON

SE

............................................

Germany

1,204,124

10,141,943

Oil,

Gas

&

Consumable

Fuels

10.3%

BP

plc

..............................................

United

Kingdom

7,971,003

37,421,655

Galp

Energia

SGPS

SA,

B

..............................

Portugal

953,415

11,155,368

Shell

plc

............................................

Netherlands

1,499,276

39,038,902

87,615,925

Pharmaceuticals

7.5%

AstraZeneca

plc

......................................

United

Kingdom

205,316

27,081,207

Bayer

AG

...........................................

Germany

447,746

26,736,502

Roche

Holding

AG

....................................

United

States

31,721

10,605,992

64,423,701

Professional

Services

1.9%

Adecco

Group

AG

.....................................

Switzerland

469,782

16,014,960

Semiconductors

&

Semiconductor

Equipment

7.1%

Infineon

Technologies

AG

...............................

Germany

520,371

12,657,693

NXP

Semiconductors

NV

...............................

China

122,100

18,074,463

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

...............

Taiwan

1,864,000

29,878,648

60,610,804

Technology

Hardware,

Storage

&

Peripherals

3.9%

Samsung

Electronics

Co.

Ltd.

............................

South

Korea

741,212

32,934,126

Thrifts

&

Mortgage

Finance

2.2%

Housing

Development

Finance

Corp.

Ltd.

...................

India

692,774

19,168,600

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Templeton

Foreign

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TF-15

See

Abbreviations

on

page

TF-

27

.

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Tobacco

2.5%

Imperial

Brands

plc

....................................

United

Kingdom

945,557

$

21,165,398

Total

Common

Stocks

(Cost

$806,738,405)

.....................................

826,550,203

Short

Term

Investments

4.0%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

3.0%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

....

United

States

25,930,344

25,930,344

Total

Money

Market

Funds

(Cost

$25,930,344)

..................................

25,930,344

a

a

a

f

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

1.0%

Money

Market

Funds

1.0%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

....

United

States

8,621,004

8,621,004

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$8,621,004)

............................................................

8,621,004

Total

Short

Term

Investments

(Cost

$34,551,348

)

................................

34,551,348

a

Total

Investments

(Cost

$841,289,753)

100.7%

..................................

$861,101,551

Other

Assets,

less

Liabilities

(0.7)%

...........................................

(6,212,037)

Net

Assets

100.0%

...........................................................

$854,889,514

a

Non-income

producing.

b

A

portion

or

all

of

the

security

is

on

loan

at

June

30,

2022.

See

Note

1(c).

c

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2022,

the

aggregate

value

of

these

securities

was

$13,608,273,

representing

1.6%

of

net

assets.

d

See

Note

3(e)

regarding

investments

in

affiliated

management

investment

companies.

e

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

f

See

Note

1(c)

regarding

securities

on

loan.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TF-16

Templeton

Foreign

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$806,738,405

Cost

-

Non-controlled

affili

ates

(Note

3e)

........................................................

34,551,348

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$12,184,648)

.................................

$826,550,203

Value

-

Non-controlled

affiliates

(Note

3e)

.......................................................

34,551,348

Cash

....................................................................................

4,180

Foreign

currency,

at

value

(cost

$229,602)

........................................................

229,602

Receivables:

Capital

shares

sold

........................................................................

73,536

Dividends

and

interest

.....................................................................

2,939,019

European

Union

tax

reclaims

(Note

1

d

)

.........................................................

1,689,896

Total

assets

..........................................................................

866,037,784

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

573,368

Management

fees

.........................................................................

579,645

Distribution

fees

..........................................................................

171,828

Trustees'

fees

and

expenses

.................................................................

1,393

Payable

upon

return

of

securities

loaned

(Note

1

c

)

..................................................

8,621,004

Deferred

tax

...............................................................................

470,279

Accrued

expenses

and

other

liabilities

...........................................................

730,753

Total

liabilities

.........................................................................

11,148,270

Net

assets,

at

value

.................................................................

$854,889,514

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$857,226,004

Total

distributable

earnings

(losses)

.............................................................

(2,336,490)

Net

assets,

at

value

.................................................................

$854,889,514

Templeton

Foreign

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$94,492,144

Shares

outstanding

........................................................................

7,982,367

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.84

Class

2:

Net

assets,

at

value

.......................................................................

$684,732,673

Shares

outstanding

........................................................................

59,040,356

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.60

Class

4:

Net

assets,

at

value

.......................................................................

$75,664,697

Shares

outstanding

........................................................................

6,387,999

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.84

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TF-17

Templeton

Foreign

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$1,934,218)

Unaffiliated

issuers

........................................................................

$17,944,257

Non-controlled

affiliates

(Note

3e)

.............................................................

29,205

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

45,885

Non-controlled

affiliates

(Note

3e)

.............................................................

8,614

Other

income

(Note

1d)

......................................................................

1,916,961

Total

investment

income

...................................................................

19,944,922

Expenses:

Management

fees

(Note

3a)

...................................................................

3,954,728

Distribution

fees:

(Note

3c)

    Class

2

................................................................................

981,006

    Class

4

................................................................................

149,944

Custodian

fees

.............................................................................

48,297

Reports

to

shareholders

fees

..................................................................

48,445

Professional

fees

...........................................................................

56,371

Trustees'

fees

and

expenses

..................................................................

6,063

Other

....................................................................................

85,669

Total

expenses

.........................................................................

5,330,523

Expenses

waived/paid

by

affiliates

(Note

3e)

...................................................

(58,996)

Net

expenses

.........................................................................

5,271,527

Net

investment

income

................................................................

14,673,395

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

16,977,671

Foreign

currency

transactions

................................................................

(1,296,797)

Net

realized

gain

(loss)

..................................................................

15,680,874

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(149,187,810)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

273,411

Change

in

deferred

taxes

on

unrealized

appreciation

...............................................

461,238

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(148,453,161)

Net

realized

and

unrealized

gain

(loss)

............................................................

(132,772,287)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(118,098,892)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TF-18

Templeton

Foreign

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$14,673,395

$17,241,459

Net

realized

gain

(loss)

.................................................

15,680,874

91,630,813

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(148,453,161)

(43,910,316)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(118,098,892)

64,961,956

Distributions

to

shareholders:

Class

1

.............................................................

(3,306,920)

(2,381,077)

Class

2

.............................................................

(22,029,270)

(19,729,840)

Class

4

.............................................................

(2,305,506)

(1,653,598)

Total

distributions

to

shareholders

..........................................

(27,641,696)

(23,764,515)

Capital

share

transactions:

(Note

2)

Class

1

.............................................................

(4,055,934)

(1,488,235)

Class

2

.............................................................

(29,220,972)

(289,098,586)

Class

4

.............................................................

(3,114,298)

(17,919,519)

Total

capital

share

transactions

............................................

(36,391,204)

(308,506,340)

Net

increase

(decrease)

in

net

assets

...................................

(182,131,792)

(267,308,899)

Net

assets:

Beginning

of

period

.....................................................

1,037,021,306

1,304,330,205

End

of

period

..........................................................

$854,889,514

$1,037,021,306

Franklin

Templeton

Variable

Insurance

Products

Trust

TF-19

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

Templeton

Foreign

VIP

Fund

1.

Organization

and

Significant

Accounting

Policies

Franklin

Templeton

Variable

Insurance

Products

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Templeton

Foreign

VIP

Fund

(Fund)

is

included

in

this

report. Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

The

Fund

offers

three

classes

of

shares:

Class

1,

Class

2

and

Class

4.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege.

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day. Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time. In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TF-20

Semiannual

Report

Templeton

Foreign

VIP

Fund

(continued)

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the

Fund.

Additionally,

the

Fund

received

$2,522,919

in

U.S.

Government

and

Agency

securities

as

collateral.

These

securities

are

held

as

collateral

in

segregated

accounts

with

the

Fund’s

custodian.

The

Fund

cannot

repledge

or

resell

these

securities

held

as

collateral.

As

such,

the

non-cash

collateral

is

excluded

from

the

Statement

of

Assets

and

Liabilities.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to

any

cash

collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

d.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TF-21

Semiannual

Report

Templeton

Foreign

VIP

Fund

(continued)

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

As

a

result

of

several

court

cases,

in

certain

countries

across

the

European

Union,

the

Fund

filed

additional

tax

reclaims

for

previously

withheld

taxes

on

dividends

earned

in

those

countries

(EU

reclaims). Income

recognized,

if

any,

for

EU

reclaims

is

reflected

as

other

income

in

the

Statement

of

Operations

and

any

related

receivable,

if

any,

is

reflected

as

European

Union

tax

reclaims

in

the

Statement

of

Assets

and

Liabilities.

Any

fees

associated

with

these

filings

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

When

uncertainty

exists

as

to

the

ultimate

resolution

of

these

proceedings,

the

likelihood

of

receipt

of

these

EU

reclaims,

and

the

potential

timing

of

payment,

no

amounts

are

reflected

in

the

financial

statements.

For

U.S.

income

tax

purposes,

when

EU

reclaims

are

received

by

the

Fund

and

the

Fund

previously

passed

foreign

tax

credit

on

to

its

shareholders,

the

Fund

will

enter

into

a

closing

agreement

with

the

Internal

Revenue

Service

(IRS)

in

order

to

pay

the

associated

tax

liability

on

behalf

of

the

Fund’s

shareholders. 

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust, on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Income

and

Deferred

Taxes

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TF-22

Semiannual

Report

Templeton

Foreign

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

a.

Management

Fees

Effective

May

1,

2022,

the

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

TIC

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

155,322

$2,147,368

442,846

$6,305,829

Shares

issued

in

reinvestment

of

distributions

..........

269,293

3,306,920

158,422

2,381,077

Shares

redeemed

...............................

(686,228)

(9,510,222)

(708,094)

(10,175,141)

Net

increase

(decrease)

..........................

(261,613)

$(4,055,934)

(106,826)

$(1,488,235)

Class

2

Shares:

Shares

sold

...................................

1,609,155

$21,873,413

5,248,565

$73,689,135

Shares

issued

in

reinvestment

of

distributions

..........

1,829,648

22,028,963

1,341,254

19,729,840

Shares

redeemed

...............................

(5,541,730)

(73,123,348)

(27,124,178)

(382,517,561)

Net

increase

(decrease)

..........................

(2,102,927)

$(29,220,972)

(20,534,359)

$(289,098,586)

Class

4

Shares:

Shares

sold

...................................

226,836

$2,993,763

677,401

$9,654,639

Shares

issued

in

reinvestment

of

distributions

..........

187,592

2,305,506

110,093

1,653,598

Shares

redeemed

...............................

(619,389)

(8,413,567)

(2,037,261)

(29,227,756)

Net

increase

(decrease)

..........................

(204,961)

$(3,114,298)

(1,249,767)

$(17,919,519)

Subsidiary

Affiliation

Templeton

Investment

Counsel,

LLC

(TIC)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.800%

Up

to

and

including

$700

million

0.775%

Over

$700

million,

up

to

and

including

$1.2

billion

0.675%

In

excess

of

$1.2

billion

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TF-23

Semiannual

Report

Templeton

Foreign

VIP

Fund

(continued)

Prior

to

May

1,

2022,

the

Fund

paid

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

TIC

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was 0.810%

of

the

Fund’s

average daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

TIC,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

TIC

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

2

and

Class

4

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.25%

and

0.35%

per

year

of

its

average

daily

net

assets

of

Class

2

and

Class

4,

respectively.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

e.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Annualized

Fee

Rate

Net

Assets

0.900%

Up

to

and

including

$200

million

0.810%

Over

$200

million,

up

to

and

including

$700

million

0.775%

Over

$700

million,

up

to

and

including

$1.2

billion

0.750%

Over

$1.2

billion,

up

to

and

including

$1.3

billion

0.675%

Over

$1.3

billion,

up

to

and

including

$10

billion

0.655%

Over

$10

billion,

up

to

and

including

$15

billion

0.635%

Over

$15

billion,

up

to

and

including

$20

billion

0.615%

In

excess

of

$20

billion

3.

Transactions

with

Affiliates

(continued)

a.

Management

Fees

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TF-24

Semiannual

Report

Templeton

Foreign

VIP

Fund

(continued)

4.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains. 

At

December

31,

2021,

the

capital

loss

carryforwards

were

as

follows:

At

June

30,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatment

of

wash

sales,

EU

reclaims

and

passive

foreign

investment

company

shares.

5.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

aggregated

$114,840,583

and

$127,782,501,

respectively.

At

June

30,

2022,

in

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received

$8,621,004

of

cash

collateral.

The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Statement

of

Assets

and

Liabilities.

The

agreements

can

be

terminated

at

any

time.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Templeton

Foreign

VIP

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$

50,936,475

$

114,849,050

$

(139,855,181)

$

—

$

—

$

25,930,344

25,930,344

$

29,205

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$192,332

$140,991,200

$(132,562,528)

$—

$—

$8,621,004

8,621,004

$8,614

Total

Affiliated

Securities

...

$51,128,807

$255,840,250

$(272,417,709)

$—

$—

$34,551,348

$37,819

Capital

loss

carryforwards

not

subject

to

expiration:

Long

term

................................................................................

$

49,364,034

Cost

of

investments

..........................................................................

$855,020,122

Unrealized

appreciation

........................................................................

$157,073,255

Unrealized

depreciation

........................................................................

(150,991,826)

Net

unrealized

appreciation

(depreciation)

..........................................................

$6,081,429

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TF-25

Semiannual

Report

Templeton

Foreign

VIP

Fund

(continued)

6.

Concentration

of

Risk

Investing

in

foreign

securities

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities,

such

as

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

Political

and

financial

uncertainty

in

many

foreign

regions

may

increase

market

volatility

and

the

economic

risk

of

investing

in

foreign

securities.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

7.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

8.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

9.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

10.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's

financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

• Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

• Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

• Level

3

–

significant

unobservable

inputs

(including

the

Fund’s

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TF-26

Semiannual

Report

Templeton

Foreign

VIP

Fund

(continued)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's

assets

carried

at

fair

value,

is

as

follows:

11.

New

Accounting

Pronouncements

In June

2022,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

Level

1

Level

2

Level

3

Total

Templeton

Foreign

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

—

$

38,532,808

$

—

$

38,532,808

Airlines

..............................

—

5,144,271

—

5,144,271

Auto

Components

......................

—

36,088,756

—

36,088,756

Automobiles

..........................

—

30,112,356

—

30,112,356

Banks

...............................

17,673,943

103,811,382

—

121,485,325

Chemicals

...........................

—

8,218,023

—

8,218,023

Construction

&

Engineering

...............

—

4,534,724

—

4,534,724

Construction

Materials

..................

—

9,399,718

—

9,399,718

Diversified

Financial

Services

.............

—

9,798,583

—

9,798,583

Electronic

Equipment,

Instruments

&

Components

........................

—

5,341,479

—

5,341,479

Energy

Equipment

&

Services

.............

—

18,603,173

—

18,603,173

Food

&

Staples

Retailing

.................

—

13,011,010

—

13,011,010

Health

Care

Providers

&

Services

..........

—

14,027,641

—

14,027,641

Household

Durables

....................

—

10,934,749

—

10,934,749

Industrial

Conglomerates

................

—

51,761,139

—

51,761,139

Insurance

............................

—

34,597,807

—

34,597,807

Interactive

Media

&

Services

..............

3,469,871

—

—

3,469,871

Internet

&

Direct

Marketing

Retail

..........

—

36,316,616

—

36,316,616

Machinery

............................

—

11,722,952

—

11,722,952

Media

...............................

—

12,839,013

—

12,839,013

Metals

&

Mining

.......................

19,029,927

13,304,603

—

32,334,530

Multiline

Retail

........................

—

6,200,202

—

6,200,202

Multi-Utilities

..........................

—

10,141,943

—

10,141,943

Oil,

Gas

&

Consumable

Fuels

.............

—

87,615,925

—

87,615,925

Pharmaceuticals

.......................

—

64,423,701

—

64,423,701

Professional

Services

...................

—

16,014,960

—

16,014,960

Semiconductors

&

Semiconductor

Equipment

.

18,074,463

42,536,341

—

60,610,804

Technology

Hardware,

Storage

&

Peripherals

.

—

32,934,126

—

32,934,126

Thrifts

&

Mortgage

Finance

...............

—

19,168,600

—

19,168,600

Tobacco

.............................

—

21,165,398

—

21,165,398

Short

Term

Investments

...................

34,551,348

—

—

34,551,348

Total

Investments

in

Securities

...........

$92,799,552

$768,301,999

a

$—

$861,101,551

a

Includes

foreign

securities

valued

at

$768,301,999,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

10.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TF-27

Semiannual

Report

Templeton

Foreign

VIP

Fund

(continued)

12.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

Selected

Portfolio

ADR

American

Depositary

Receipt

TF-28

Semiannual

Report

VIP2

SA1SA2

SA4

08/22

SUPPLEMENT

DATED

AUGUST

10,

2022

TO

THE

STATEMENT

OF

ADDITIONAL

INFORMATION

DATED

MAY

1,

2022

OF

TEMPLETON

FOREIGN

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

The

Statement

of

Additional

Information

(SAI)

is

amended

as

follows:

I.

The

table

under

the

“Management–

Portfolio

Managers

–

Other

accounts

managed

by

the

portfolio

managers”

section

on

page

97

is

revised

as

follows:

Name

Number

of

Other

Registered

Investment

Companies

Managed

1

Assets

of

Other

Registered

Investment

Companies

Managed

(x

$1

million)

1

Number

of

Other

Pooled

Investment

Vehicles

Managed

2

Assets

of

Other

Pooled

Investment

Vehicles

Managed

(x

$1

million)

2

Number

of

Other

Accounts

Managed

2

Assets

of

Other

Accounts

Managed

(x

$1

million)

2

Sara

Araghi

1

6,169.6

4

10,015.6

1

1.7

Herbert

J.

Arnett,

Jr.

6

16,367.4

11

11,629.0

0

N/A

Grant

Bowers

1

6,169.6

5

10,190.0

1

1.7

Todd

Brighton

12

88,547.5

7

2,721.9

0

N/A

Vaneet

Chadha

2

838.6

10

503.4

2

0

Sundaram

Chettiappan

10

2,962.3

6

1,387.2

1

104.6

William

Chong

2

3,898.3

7

1,839.8

0

N/A

Brendan

Circle

5

80,767.4

3

2,319.8

0

N/A

Christian

Correa

4

22,367.1

9

1,205.0

0

N/A

Sonal

Desai

10

13,468.4

11

3,835.0

1

331.1

Neil

Dhruv

2

4,499.3

3

2,681.0

0

N/A

Katrina

Dudley

3

11,030.0

4

1,498.1

0

N/A

Nicholas

P.B.

Getaz

4

30,017.3

4

993.9

0

N/A

Michael

Hasenstab

9

11,504.3

37

3

17,189.2

12

4

3,873.5

Calvin

Ho

8

11,342.6

15

14,130.7

1

0

Grace

Hoefig

2

9,359.7

2

420.4

0

N/A

Nicholas

Karzon

4

5,672.3

3

158.0

0

N/A

Armritha

Kasturirangan

4

30,017.3

4

993.9

0

N/A

Michael

McCarthy

2

9,713.1

9

306.2

8

251.6

Christopher

Meeker

4

5,672.3

3

158.0

0

N/A

Matthew

J.

Moberg

7

28,914.7

19

1,243.8

0

N/A

Peter

Moeschter

3

15,728.6

7

9,980.2

4

1,691.0

Alan

E.

Muschott

2

8,624.7

1

1,545.6

0

N/A

Matthew

Nagle

2

920.0

23

224.0

8

690.2

Thomas

A.

Nelson

14

6,812.3

127

8,235.7

3

218.8

Andrew

Ness

2

1,759.0

4

2,384.7

2

3,225.1

Peter

A.

Nori

2

920.0

25

779.4

8

775.1

Patricia

O'Connor

4

7,425.0

10

2,840.1

3

271.0

Christopher

James

Peel

4

15,790.1

6

1,065.5

4

1,691.0

Edward

D.

Perks

9

84,240.1

6

2,531.7

2

114.3

Warren

Pustam

4

16,303.2

10

10,343.0

3

1,661.6

Matthew

Quinlan

6

35,496.0

4

1,202/0

0

N/A

Steven

Raineri

4

5,672.3

3

158.0

0

N/A

Timothy

Rankin

2

10,229.6

4

781.6

0

N/A

John

P.

Scandalios

1

5,870.5

2

48.4

0

N/A

Daniel

Scher

1

530.0

4

189.0

0

N/A

Blair

Schmicker

2

7,260.4

1

169.3

0

N/A

Chandra

Seethamraju

11

3,033.0

9

1,895.3

1

104.6

Chetan

Sehgal

4

2,263.7

11

4,630.1

3

3,361.5

Nayan

Sheth

4

30,017.3

3

993.6

0

N/A

Wylie

Tollette

18

6,769.0

41

7,405.8

2

114.3

Debbie

Turner

1

8,459.9

3

420.4

0

N/A

Paul

Varunok

4

5,131.6

3

2,681.0

2

5

3,256.1

Heather

Waddell

4

2,618.7

30

1,509.8

14

2,538.8

TF-29

Semiannual

Report

1.

These

figures

represent

registered

investment

companies

other

than

the

Funds

that

are

included

in

this

SAI.

2.

The

various

pooled

investment

vehicles

and

accounts

listed

are

managed

by

a

team

of

investment

professionals.

Accordingly,

the

portfolio

managers

listed

would

not

be

solely

responsible

for

managing

such

listed

amounts.

3.

Of

these

accounts,

Dr.

Hasenstab

manages

pooled

investment

vehicles

with

$354.4

million

in

assets

with

a

performance

fee.

4.

Of

these

accounts,

Dr.

Hasenstab

manages

other

accounts

with

$3,246.0

million

in

assets

with

a

performance

fee.

5.

Of

these

accounts,

Mr.

Varunok

manages

an

other

account

with

$2,399.8

million

in

assets

with

a

performance

fee.

6.

Of

these

accounts,

Mr.

Yuen

manages

other

accounts

with

$2,399.8

million

in

assets

with

a

performance

fee.

Please

keep

this

supplement

with

your

SAI

for

future

reference.

Name

Number

of

Other

Registered

Investment

Companies

Managed

1

Assets

of

Other

Registered

Investment

Companies

Managed

(x

$1

million)

1

Number

of

Other

Pooled

Investment

Vehicles

Managed

2

Assets

of

Other

Pooled

Investment

Vehicles

Managed

(x

$1

million)

2

Number

of

Other

Accounts

Managed

2

Assets

of

Other

Accounts

Managed

(x

$1

million)

2

David

Yuen

12

14,267.5

10

2,235.6

5

6

4,264.9

TGB-1

Semiannual

Report

Templeton

Global

Bond

VIP

Fund

This

semi

annual

report

for

Templeton

Global

Bond

VIP

Fund

covers

the

period

ended

June

30,

2022

.

Class

1

Performance

Summary

as

of

June

30,

2022

The

Fund’s

Class

1

Shares

posted

a

-5.86

%

total

return*

for

the

six-month

period

ended

June

30,

2022.

*The

Fund

has

a

fee

waiver

associated

with

any

investment

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

fee

waiver;

without

this

waiver,

the

results

would

have

been

lower.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

TGB-2

Semiannual

Report

Templeton

Global

Bond

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

high

current

income,

consistent

with

preservation

of

capital.

Capital

appreciation

is

a

secondary

consideration.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

bonds,

which

include

debt

securities

of

any

maturity,

such

as

bonds,

notes,

bills

and

debentures.

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

Foreign

securities

involve

special

risks,

including

currency

fluctuations

and

economic

and

political

uncertainties.

Currency

rates

may

fluctuate

significantly

over

short

periods

of

time,

and

can

reduce

returns.

Sovereign

debt

securities

are

subject

to

various

risks

in

addition

to

those

relating

to

debt

securities

and

foreign

securities

generally,

including,

but

not

limited

to,

the

risk

that

a

governmental

entity

may

be

unwilling

or

unable

to

pay

interest

and

repay

principal

on

its

sovereign

debt,

or

otherwise

meet

its

obligations

when

due.

Adverse

conditions

in

a

certain

region

or

country

can

adversely

affect

securities

of

issuers

in

other

countries

whose

economies

appear

to

be

unrelated.

Investments

in

developing

markets

involve

heightened

risks

related

to

the

same

factors,

in

addition

to

those

associated

with

these

markets’

smaller

size,

lesser

liquidity

and

lack

of

established

legal,

political,

business

and

social

frameworks

to

support

securities

market.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

For

comparison,

the

J.P.

Morgan

Global

Government

Bond

Index

posted

a

-14.14%

total

return,

and

the

FTSE

World

Government

Bond

Index

posted

a

-14.79%

total

return

for

the

same

period.

1

Economic

and

Market

Overview

The

six-month

period

ended

June

30,

2022,

was

characterized

by

challenges

to

the

global

economy

in

the

form

of

the

lingering

economic

impact

of

COVID-19,

the

start

of

Russia’s

war

on

Ukraine,

commodity-price

inflation,

rising

global

interest

rates,

weakening

global

gross

domestic

product

growth,

and

supply

chain

disruptions.

Risk

assets

faced

strong

headwinds

resulting

from

tighter

financial

conditions.

Sovereign

bond

yields

rose

across

most

of

the

world

as

many

major

central

banks

embarked

on

policy

rate

hikes

to

curb

inflation.

Inflation

reached

multi-decade

highs

during

the

period,

with

added

supply-side

pressures

coming

from

disruptions

to

the

flow

of

energy,

food,

commodities

and

goods

due

to

the

war

in

Ukraine

and

the

West’s

economic

isolation

of

Russia.

Supply

chain

disruptions

were

compounded

by

China’s

implementation

of

its

zero-COVID

policy.

Simultaneously,

global

economic

growth

was

projected

to

decelerate,

driven

by

the

disruption

of

economic

activity

and

trade

following

Russia’s

invasion

of

Ukraine,

including

Geographic

Composition

6/30/22

%

of

Total

Net

Assets

Asia

34.7%

North

America

22.1%

Latin

America

&

Caribbean

10.6%

Europe

5.3%

Middle East & Africa

1.2%

Other

0.5%

Short-Term

Investments

&

Other

Net

Assets

25.6%

1.

Source:

Morningstar.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

Templeton

Global

Bond

VIP

Fund

TGB-3

Semiannual

Report

a

reduction

in

Russia’s

exports

of

natural

gas

to

Germany,

the

economic

strains

of

refugee

flight

in

Europe,

volatile

and

elevated

commodity

prices,

continued

supply

chain

disruptions,

the

effect

of

COVID-19-related

lockdowns

in

China,

and

the

reduction

of

policy

support

post-COVID-19.

The

combination

of

above-average

inflation

and

below-

average

growth

raised

the

spectre

of

stagflation

reminiscent

of

the

1970s

and

created

a

policy

dilemma

for

many

central

bankers.

Over

the

period,

developed

market

sovereign

bond

yields

trended

higher

concurrently

with

falling

equity

prices

and

strength

in

the

U.S.

dollar.

On

the

monetary

front,

the

first

half

of

2022

marked

the

end

of

pandemic-era

monetary

accommodation

by

the

U.S.

Federal

Reserve.

Investment

Strategy

We

invest

selectively

in

bonds

around

the

world

based

upon

our

assessment

of

changing

market,

political

and

economic

conditions.

While

seeking

opportunities,

we

monitor

various

factors

including

changes

in

interest

rates,

currency

exchange

rates

and

credit

risks.

We

seek

to

manage

the

Fund’s

exposure

to

various

currencies

and

regularly

enter

into

various

currency-related

derivative

instruments,

such

as

currency

and

cross-currency

forwards,

currency

and

currency

index

futures

contracts

and

currency

options.

Manager’s

Discussion

In

bonds,

we

continued

to

maintain

low

portfolio

duration,

while

aiming

at

a

high

overall

portfolio

yield

by

holding

compelling

risk-adjusted

yields

in

various

local-currency

bond

markets,

specifically

in

countries

with

resilient

economies

and

strong

trade

dynamics.

We

were

significantly

underweight

developed

market

duration

in

the

U.S.

and

the

euro

area,

with

a

preference

for

the

higher

yields

available

in

select

emerging

market

local-currency

bonds,

notably

Indonesia,

India,

Thailand,

Brazil,

Colombia,

and

Mexico.

At

the

beginning

of

the

period,

the

Fund

was

overweight

in

specific

currencies

against

the

U.S.

dollar

(USD)

and

the

euro.

In

Asia,

we

held

notable

exposures

to

the

South

Korean

won,

the

Chinese

yuan,

the

Indonesian

rupiah,

the

Indian

rupee

and

the

Singapore

dollar,

while

holding

an

underweight

in

the

Japanese

yen.

We

closed

our

exposure

to

the

Japanese

yen

in

March

2022,

thereby

going

further

underweight,

primarily

due

to

expected

depreciation

pressures

on

the

currency

from

widening

rate

differentials

with

the

U.S.

In

April,

we

exited

our

underweight

position

in

the

Australian

dollar

which

had

been

used

to

hedge

against

emerging

market

beta

risks,

as

we

anticipated

rising

commodity

prices

to

boost

Australia’s

terms

of

trade

and

support

its

currency.

In

EMEA

(Europe,

Middle

East

and

Africa),

the

Fund

held

overweight

positions

in

the

Norwegian

krone,

the

Swedish

krona

and

the

British

pound

against

the

euro.

We

added

a

position

in

the

British

pound

against

the

euro

in

April

due

to

expected

monetary

policy

divergences

between

the

Bank

of

England

and

the

European

Central

Bank.

In

the

Americas,

we

held

long

exposures

to

the

Brazilian

real,

Colombian

peso

and

Chilean

peso

against

the

USD,

and

long

exposure

to

the

Canadian

dollar

against

the

euro.

During

the

period,

we

used

currency

forwards

and

currency

options

to

actively

manage

currency

exposures.

During

the

period,

the

Fund’s

negative

absolute

performance

was

primarily

due

to

currency

positions,

followed

by

interest-

rate

strategies.

Sovereign

credit

exposures

had

a

largely

neutral

effect

on

absolute

results.

Among

currencies,

positions

in

the

South

Korean

won,

Ghanaian

cedi,

Argentine

peso,

Indonesian

rupiah

and

Chinese

yuan

detracted

from

absolute

performance,

while

the

Fund’s

position

in

the

Brazilian

real

contributed.

The

Fund

maintained

a

defensive

approach

regarding

interest

rates

in

developed

markets,

while

holding

duration

exposures

in

select

emerging

markets.

Exposure

to

short-

to

intermediate-term

U.S.

Treasuries

detracted

from

absolute

results,

as

did

duration

exposure

in

Ghana.

However,

duration

exposure

in

Argentina

contributed

to

absolute

performance.

On

a

relative

basis,

the

Fund’s

performance

fared

better

than

that

of

its

benchmark

index

primarily

due

to

interest-rate

strategies,

followed

by

currency

positions.

Sovereign

credit

exposures

had

a

largely

neutral

effect

on

relative

results.

Its

lack

of

duration

exposure

in

the

euro

area

contributed

to

relative

performance,

as

did

underweighted

duration

exposures

in

the

U.S.,

the

U.K.

and

Japan.

Overweighted

duration

exposure

in

Argentina

also

contributed

to

relative

results,

while

duration

exposure

in

Ghana

detracted.

Among

currencies,

the

Fund’s

underweighted

exposure

to

the

euro

contributed

to

relative

performance,

as

did

its

underweighted

position

in

the

Japanese

yen

and

its

overweighted

position

in

the

Brazilian

real.

However,

overweighted

positions

in

the

South

Korean

won,

Ghanaian

cedi,

Argentine

peso

and

Indonesian

rupiah

detracted

from

relative

results.

Thank

you

for

your

participation

in

Templeton

Global

Bond

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Templeton

Global

Bond

VIP

Fund

TGB-4

Semiannual

Report

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Class

1

Fund

Expenses

Templeton

Global

Bond

VIP

Fund

TGB-5

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

any

ongoing

expenses

of

the

Contract

for

which

the

Fund

is

an

investment

option

or

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30

/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

1

$1,000

$941.40

$2.36

$1,022.37

$2.46

0.49%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Global

Bond

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TGB-6

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.82

$14.49

$16.63

$17.54

$17.17

$16.85

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.25

0.48

0.52

0.89

0.88

0.83

Net

realized

and

unrealized

gains

(losses)

(1.06)

(1.15)

(1.31)

(0.54)

(0.51)

(0.46)

Total

from

investment

operations

........

(0.81)

(0.67)

(0.79)

0.35

0.37

0.37

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

....................

—

—

(1.35)

(1.26)

—

—

Net

realized

gains

.................

—

—

—

—

—

(0.05)

Tax

return

of

capital

................

—

—

(—)

c

—

—

—

Total

distributions

...................

—

—

(1.35)

(1.26)

—

(0.05)

Net

asset

value,

end

of

period

..........

$13

.01

$13.82

$14.49

$16.63

$17.54

$17.17

Total

return

d

.......................

(5.86)%

(4.62)%

(4.73)%

1.89%

2.15%

2.15%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

........

0.51%

0.51%

0.51%

0.53%

0.56%

0.53%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.49%

0.50%

0.46%

0.44%

0.47%

0.46%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

........

0.49%

f

0.50%

f

0.45%

0.42%

0.45%

0.46%

f

Net

investment

income

...............

3.71%

3.42%

3.43%

5.22%

5.09%

4.81%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$164,772

$204,318

$224,704

$322,794

$285,046

$286,502

Portfolio

turnover

rate

................

10.26%

27.65%

52.84%

22.58%

18.22%

37.97%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Amount

rounds

to

less

than

$0.01

per

share.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Global

Bond

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TGB-7

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.13

$13.82

$15.91

$16.83

$16.51

$16.25

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.22

0.43

0.46

0.82

0.81

0.76

Net

realized

and

unrealized

gains

(losses)

(0.99)

(1.12)

(1.24)

(0.53)

(0.49)

(0.45)

Total

from

investment

operations

........

(0.77)

(0.69)

(0.78)

0.29

0.32

0.31

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

....................

—

—

(1.31)

(1.21)

—

—

Net

realized

gains

.................

—

—

—

—

—

(0.05)

Tax

return

of

capital

................

—

—

(—)

c

—

—

—

Total

distributions

...................

—

—

(1.31)

(1.21)

—

(0.05)

Net

asset

value,

end

of

period

..........

$12.36

$13.13

$13.82

$15.91

$16.83

$16.51

Total

return

d

.......................

(5.86)%

(4.99)%

(4.92)%

1.63%

1.94%

1.93%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

........

0.76%

0.76%

0.75%

0.78%

0.81%

0.78%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.74%

0.75%

0.71%

0.69%

0.72%

0.71%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

........

0.74%

f

0.75%

f

0.70%

0.67%

0.70%

0.71%

f

Net

investment

income

...............

3.47%

3.17%

3.16%

4.97%

4.84%

4.56%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,590,520

$1,859,619

$2,022,487

$2,389,610

$2,544,900

$2,730,081

Portfolio

turnover

rate

................

10.26%

27.65%

52.84%

22.58%

18.22%

37.97%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Amount

rounds

to

less

than

$0.01

per

share.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Global

Bond

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TGB-8

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.46

$14.17

$16.27

$17.19

$16.88

$16.62

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.22

0.42

0.46

0.82

0.81

0.76

Net

realized

and

unrealized

gains

(losses)

(1.03)

(1.13)

(1.27)

(0.55)

(0.50)

(0.45)

Total

from

investment

operations

........

(0.81)

(0.71)

(0.81)

0.27

0.31

0.31

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

....................

—

—

(1.29)

(1.19)

—

—

Net

realized

gains

.................

—

—

—

—

—

(0.05)

Tax

return

of

capital

................

—

—

(—)

c

—

—

—

Total

distributions

...................

—

—

(1.29)

(1.19)

—

(0.05)

Net

asset

value,

end

of

period

..........

$12.65

$13.46

$14.17

$16.27

$17.19

$16.88

Total

return

d

.......................

(6.02)%

(5.01)%

(5.00)%

1.48%

1.84%

1.76%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

........

0.86%

0.86%

0.85%

0.88%

0.91%

0.88%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.84%

0.85%

0.81%

0.79%

0.82%

0.81%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

........

0.84%

f

0.85%

f

0.80%

0.77%

0.80%

0.81%

f

Net

investment

income

...............

3.36%

3.07%

3.06%

4.87%

4.74%

4.46%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$60,327

$71,454

$76,771

$90,272

$94,312

$98,934

Portfolio

turnover

rate

................

10.26%

27.65%

52.84%

22.58%

18.22%

37.97%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned,

adjustments

to

interest

income

for

the

inflation-indexed

bonds,

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Amount

rounds

to

less

than

$0.01

per

share.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Templeton

Global

Bond

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TGB-9

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

52.2%

Argentina

1.4%

a

Argentina

BONCER

,

Index

Linked,

1.3%,

9/20/22

.......

883,635,492

ARS

$

3,464,372

Index

Linked,

1.4%,

3/25/23

.......

2,812,254,552

ARS

10,516,315

Index

Linked,

1.45%,

8/13/23

......

167,411,389

ARS

587,962

Index

Linked,

1.5%,

3/25/24

.......

2,403,289,005

ARS

7,546,424

Argentina

Government

Bond

,

16%,

10/17/23

.................

884,455,900

ARS

2,069,955

15.5%,

10/17/26

................

1,668,306,000

ARS

1,951,953

26,136,981

Brazil

1.7%

Brazil

Notas

do

Tesouro

Nacional,

10%,

1/01/27

......................

179,710,000

BRL

31,269,898

Colombia

5.2%

Colombia

Government

Bond

,

Senior

Bond,

4.375%,

3/21/23

.....

362,000,000

COP

83,345

Senior

Bond,

9.85%,

6/28/27

......

576,000,000

COP

136,746

Colombia

Titulos

de

Tesoreria

,

B,

10%,

7/24/24

................

69,543,000,000

COP

16,725,705

B,

6.25%,

11/26/25

..............

82,468,000,000

COP

17,456,298

B,

7.5%,

8/26/26

...............

145,296,600,000

COP

31,280,308

B,

5.75%,

11/03/27

..............

55,276,000,000

COP

10,546,539

B,

6%,

4/28/28

.................

46,343,600,000

COP

8,779,021

B,

7.75%,

9/18/30

..............

33,189,000,000

COP

6,501,088

B,

7%,

6/30/32

.................

20,672,000,000

COP

3,696,432

95,205,482

Ghana

1.2%

Ghana

Government

Bond

,

18.25%,

7/25/22

................

80,000

GHS

9,979

17.6%,

11/28/22

................

520,000

GHS

63,038

20.75%,

1/16/23

................

120,000

GHS

14,599

16.5%,

2/06/23

................

7,930,000

GHS

938,987

19%,

9/18/23

..................

150,000

GHS

17,053

18.85%,

9/28/23

................

21,190,000

GHS

2,399,656

19.25%,

11/27/23

...............

1,350,000

GHS

151,661

19.25%,

12/18/23

...............

110,000

GHS

12,309

19.75%,

3/25/24

................

26,840,000

GHS

2,958,058

19%,

11/02/26

.................

80,510,000

GHS

7,355,559

19.75%,

3/15/32

................

80,510,000

GHS

6,497,335

Senior

Note,

18.5%,

1/02/23

......

70,000

GHS

8,455

Senior

Note,

17.6%,

2/20/23

......

3,310,000

GHS

392,707

Senior

Note,

17.25%,

7/31/23

......

210,000

GHS

23,754

Senior

Note,

17.7%,

3/18/24

......

1,080,000

GHS

115,700

Senior

Note,

18.3%,

3/02/26

......

690,000

GHS

64,268

21,023,118

India

4.9%

India

Government

Bond

,

6.84%,

12/19/22

................

98,000,000

INR

1,247,385

7.16%,

5/20/23

................

133,700,000

INR

1,706,237

8.83%,

11/25/23

................

1,468,100,000

INR

19,139,269

8.2%,

9/24/25

.................

297,100,000

INR

3,883,010

7.59%,

1/11/26

.................

1,629,000,000

INR

20,925,152

7.27%,

4/08/26

................

214,000,000

INR

2,719,818

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Templeton

Global

Bond

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TGB-10

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

India

(continued)

India

Government

Bond,

(continued)

Senior

Bond,

5.77%,

8/03/30

......

526,000,000

INR

$

6,014,208

Senior

Note,

5.22%,

6/15/25

......

313,000,000

INR

3,785,130

Senior

Note,

5.15%,

11/09/25

......

2,459,900,000

INR

29,404,904

88,825,113

Indonesia

10.2%

Indonesia

Government

Bond

,

FR40,

11%,

9/15/25

.............

46,856,000,000

IDR

3,591,156

FR43,

10.25%,

7/15/22

..........

147,832,000,000

IDR

9,951,061

FR46,

9.5%,

7/15/23

............

226,780,000,000

IDR

15,987,476

FR63,

5.625%,

5/15/23

..........

289,067,000,000

IDR

19,660,340

FR81,

6.5%,

6/15/25

............

599,166,000,000

IDR

41,285,041

FR86,

5.5%,

4/15/26

............

1,421,313,000,000

IDR

93,736,534

184,211,608

Mexico

2.2%

Mexican

Bonos

Desarr

Fixed

Rate,

M,

Senior

Bond,

8%,

12/07/23

........

812,130,000

MXN

39,615,415

Norway

4.0%

b

Norway

Government

Bond

,

Senior

Bond,

144A,

Reg

S,

2%,

5/24/23

......................

315,007,000

NOK

31,883,089

Senior

Bond,

144A,

Reg

S,

3%,

3/14/24

......................

265,052,000

NOK

27,001,831

Senior

Bond,

144A,

Reg

S,

1.75%,

3/13/25

......................

89,312,000

NOK

8,787,455

Senior

Bond,

144A,

Reg

S,

1.5%,

2/19/26

......................

52,969,000

NOK

5,106,917

72,779,292

South

Korea

16.9%

Korea

Monetary

Stabilization

Bond

,

Senior

Note,

0.87%,

2/02/23

......

59,850,000,000

KRW

46,042,805

Senior

Note,

0.905%,

4/02/23

......

61,390,000,000

KRW

47,061,650

Korea

Treasury

Bond

,

1.25%,

12/10/22

................

6,435,000,000

KRW

4,971,715

3%,

3/10/23

...................

3,919,000,000

KRW

3,048,918

2.25%,

9/10/23

................

88,312,000,000

KRW

67,806,352

0.875%,

12/10/23

...............

22,287,000,000

KRW

16,711,581

1.875%,

3/10/24

................

33,811,000,000

KRW

25,598,244

1.375%,

9/10/24

................

75,881,910,000

KRW

56,226,024

3%,

9/10/24

...................

18,500,000,000

KRW

14,195,167

Senior

Note,

1.75%,

9/10/26

......

34,133,000,000

KRW

24,754,040

306,416,496

Supranational

0.5%

c

Inter-American

Development

Bank,

Senior

Bond,

7.5%,

12/05/24

......

200,000,000

MXN

9,395,934

Thailand

2.7%

Thailand

Government

Bond

,

0.75%,

9/17/24

................

745,020,000

THB

20,623,097

1%,

6/17/27

...................

570,140,000

THB

15,057,352

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Templeton

Global

Bond

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TGB-11

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Thailand

(continued)

Thailand

Government

Bond,

(continued)

Senior

Note,

0.66%,

11/22/23

......

481,230,000

THB

$

13,496,990

49,177,439

United

Kingdom

1.3%

b

United

Kingdom

Gilt,

Reg

S,

0.125%,

1/31/23

......................

19,732,000

GBP

23,812,244

Total

Foreign

Government

and

Agency

Securities

(Cost

$1,249,146,365)

...........

947,869,020

U.S.

Government

and

Agency

Securities

22.1%

United

States

22.1%

U.S.

Treasury

Notes

,

1.5%,

10/31/24

................

49,660,000

47,989,795

1.5%,

11/30/24

.................

50,420,000

48,649,391

1.75%,

12/31/24

................

22,672,000

21,976,342

2%,

2/15/25

...................

49,140,000

47,890,385

2.125%,

5/15/25

................

58,760,000

57,334,611

2.875%,

5/31/25

................

76,680,000

76,368,487

2.625%,

12/31/25

...............

44,803,000

44,182,583

1.625%,

2/15/26

................

24,220,000

23,026,976

2.125%,

5/31/26

................

11,063,000

10,690,272

1.625%,

10/31/26

...............

24,220,000

22,816,943

400,925,785

Total

U.S.

Government

and

Agency

Securities

(Cost

$421,311,328)

................

400,925,785

Total

Long

Term

Investments

(Cost

$1,670,457,693)

.............................

1,348,794,805

Number

of

Contracts

Notional

Amount

#

a

a

aa

Options

Purchased

0.1%

Calls

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

September

Strike

Price

21.67

MXN,

Expires

9/27/22

..

1

24,314,000

214,469

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

29.19

MXN,

Expires

8/29/24

..

1

20,304,000

452,932

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

29.71

MXN,

Expires

8/09/24

..

1

20,304,000

398,906

1,066,307

Puts

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

July

Strike

Price

19.19

MXN,

Expires

7/21/22

.......

1

43,075,000

13,211

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

19.41

MXN,

Expires

8/11/22

..

1

9,700,000

20,810

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Templeton

Global

Bond

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TGB-12

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

aa

a

a

Options

Purchased

(continued)

Puts

-

Over-the-Counter

(continued)

Currency

Options

(continued)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

July

Strike

Price

19.88

MXN,

Expires

7/21/22

.......

1

43,075,000

$

188,122

222,143

Total

Options

Purchased

(Cost

$4,806,303)

.....................................

1,288,450

Short

Term

Investments

23.8%

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

14.8%

Brazil

7.4%

d

Brazil

Letras

do

Tesouro

Nacional

,

1/01/24

......................

71,110,000

BRL

11,239,389

7/01/24

......................

308,450,000

BRL

46,053,281

1/01/25

......................

539,800,000

BRL

76,283,409

133,576,079

Singapore

4.5%

d

Singapore

Treasury

Bills

,

8/12/22

......................

6,460,000

SGD

4,638,823

8/19/22

......................

62,840,000

SGD

45,105,751

1/24/23

......................

45,410,000

SGD

32,279,631

82,024,205

United

Kingdom

2.9%

d

United

Kingdom

Treasury

Bills

,

7/11/22

......................

12,350,000

GBP

15,026,475

7/25/22

......................

6,300,000

GBP

7,662,272

8/01/22

......................

10,040,000

GBP

12,208,552

10/24/22

.....................

15,249,000

GBP

18,469,165

53,366,464

Total

Foreign

Government

and

Agency

Securities

(Cost

$286,062,157)

............

268,966,748

Shares

Money

Market

Funds

9.0%

United

States

9.0%

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

.........

163,878,104

163,878,104

Total

Money

Market

Funds

(Cost

$163,878,104)

.................................

163,878,104

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$449,940,261

)

...............................

432,844,852

a

a

a

Total

Investments

(Cost

$2,125,204,257)

98.2%

..................................

$1,782,928,107

Options

Written

(0.0)%

†

......................................................

(418,423)

Other

Assets,

less

Liabilities

1.8%

.............................................

33,109,542

Net

Assets

100.0%

...........................................................

$1,815,619,226

a

a

a

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Templeton

Global

Bond

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TGB-13

a

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

a

a

g

Options

Written

(0.0)%

†

a

Calls

-

Over-the-Counter

a

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

22.06

MXN,

Expires

8/11/22

..

1

9,700,000

$

(20,863)

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

September

Strike

Price

23.09

MXN,

Expires

9/27/22

..

1

12,157,000

(39,761)

(60,624)

Puts

-

Over-the-Counter

Currency

Options

Foreign

Exchange

USD/MXN,

Counterparty

CITI,

July

Strike

Price

19.60

MXN,

Expires

7/21/22

.......

1

86,150,000

(129,744)

Foreign

Exchange

USD/MXN,

Counterparty

MSCO,

August

Strike

Price

20.50

MXN,

Expires

8/11/22

..

1

9,700,000

(228,055)

(357,799)

Total

Options

Written

(Premiums

received

$1,331,330)

...........................

$

(418,423)

#

Notional

amount

is

the

number

of

units

specified

in

the

contract,

and

can

include

currency

units,

bushels,

shares,

pounds,

barrels

or

other

units.

Currency

units

are

stated

in

U.S.

dollars

unless

otherwise

indicated.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Redemption

price

at

maturity

is

adjusted

for

inflation.

See

Note

1(g)

.

b

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2022,

the

aggregate

value

of

these

securities

was

$96,591,536,

representing

5.3%

of

net

assets.

c

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

d

The

security

was

issued

on

a

discount

basis

with

no

stated

coupon

rate.

e

See

Note

3(e)

regarding

investments

in

affiliated

management

investment

companies.

f

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

g

See

Note

1(c)

regarding

written

options.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Templeton

Global

Bond

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TGB-14

At

June

30,

2022,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(c). 

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

Euro

.............

DBAB

Sell

8,395,076

86,680,000

SEK

7/06/22

$

—

$

(324,591)

Swedish

Krona

.....

DBAB

Sell

86,680,000

8,084,840

EUR

7/06/22

—

(527)

Indian

Rupee

......

HSBK

Buy

241,380,400

3,150,687

7/11/22

—

(95,687)

Chinese

Yuan

......

CITI

Buy

125,329,450

19,446,600

7/12/22

—

(721,824)

Chinese

Yuan

......

HSBK

Buy

135,702,480

21,108,853

7/18/22

—

(835,965)

Euro

.............

DBAB

Sell

10,346,782

104,016,200

SEK

7/19/22

—

(680,227)

Euro

.............

JPHQ

Sell

20,129,401

198,445,700

NOK

7/19/22

—

(959,801)

Norwegian

Krone

...

JPHQ

Sell

152,000,000

15,306,765

EUR

7/19/22

618,313

—

Japanese

Yen

......

CITI

Buy

1,948,164,000

17,208,988

7/20/22

—

(2,839,848)

Japanese

Yen

......

CITI

Sell

1,948,164,000

17,103,576

7/20/22

2,734,436

—

South

Korean

Won

..

CITI

Buy

8,470,100,000

6,909,009

7/21/22

—

(335,797)

South

Korean

Won

..

JPHQ

Buy

8,365,800,000

7,007,120

7/21/22

—

(514,849)

Singapore

Dollar

....

CITI

Buy

4,670,000

3,426,328

7/25/22

—

(64,907)

Indian

Rupee

......

JPHQ

Buy

205,330,400

2,696,394

7/27/22

—

(101,745)

Chilean

Peso

......

GSCO

Buy

4,492,370,670

5,211,265

7/29/22

—

(338,871)

Euro

.............

BOFA

Buy

1,336,000

1,462,025

7/29/22

—

(59,749)

Euro

.............

BOFA

Sell

1,336,000

1,522,373

7/29/22

120,097

—

Chilean

Peso

......

JPHQ

Buy

5,487,100,000

6,574,133

8/02/22

—

(627,571)

Euro

.............

BOFA

Sell

6,176,410

8,949,000

CAD

8/02/22

467,203

—

Euro

.............

CITI

Sell

4,910,333

7,054,790

CAD

8/03/22

324,621

—

Euro

.............

HSBK

Sell

63,400,540

91,488,460

CAD

8/03/22

4,501,683

—

Euro

.............

MSCO

Buy

2,320,000

2,538,245

8/04/22

—

(102,164)

Euro

.............

MSCO

Sell

30,744,500

34,985,089

8/04/22

2,702,289

—

Australian

Dollar

....

CITI

Buy

2,393,000

1,768,283

8/08/22

—

(116,065)

Australian

Dollar

....

CITI

Sell

2,393,000

1,712,718

8/08/22

60,500

—

Chilean

Peso

......

GSCO

Buy

3,439,478,985

4,098,033

8/08/22

—

(375,454)

Chilean

Peso

......

JPHQ

Buy

6,390,810,000

7,746,906

8/08/22

—

(830,075)

Chinese

Yuan

......

JPHQ

Buy

188,842,190

28,015,220

8/11/22

188,705

—

Chilean

Peso

......

GSCO

Buy

2,147,030,000

2,452,263

8/16/22

—

(132,792)

Euro

.............

DBAB

Sell

54,061,989

567,099,454

SEK

8/17/22

—

(1,297,719)

Euro

.............

JPHQ

Sell

2,395,607

25,140,000

SEK

8/17/22

—

(56,470)

Chilean

Peso

......

GSCO

Buy

3,686,615,833

4,252,152

8/19/22

—

(272,200)

Chinese

Yuan

......

JPHQ

Buy

94,285,000

14,745,440

8/22/22

—

(664,629)

Mexican

Peso

......

CITI

Sell

3,580,000

177,765

8/31/22

1,668

—

Mexican

Peso

......

MSCO

Sell

301,341,000

14,382,102

8/31/22

—

(440,524)

Chilean

Peso

......

GSCO

Buy

3,573,680,000

4,303,046

9/02/22

—

(457,484)

Chilean

Peso

......

GSCO

Buy

3,573,683,735

4,247,559

9/06/22

—

(405,227)

Euro

.............

DBAB

Sell

8,070,087

86,680,000

SEK

9/06/22

—

(188)

Euro

.............

DBAB

Sell

6,748,971

66,742,600

NOK

9/15/22

—

(322,228)

Euro

.............

DBAB

Sell

34,484,359

364,110,000

SEK

9/19/22

—

(630,132)

Euro

.............

JPHQ

Sell

63,451,078

631,183,200

NOK

9/19/22

—

(2,667,337)

Australian

Dollar

....

CITI

Buy

11,476,000

8,486,387

9/21/22

—

(559,903)

Australian

Dollar

....

CITI

Sell

11,476,000

8,402,635

9/21/22

476,151

—

Chilean

Peso

......

GSCO

Buy

6,253,949,801

7,483,045

9/21/22

—

(779,461)

Chinese

Yuan

......

BOFA

Buy

184,017,140

27,367,213

9/21/22

111,139

—

Chinese

Yuan

......

HSBK

Buy

136,590,880

20,350,235

9/21/22

46,193

—

Indian

Rupee

......

JPHQ

Buy

1,020,100,000

12,958,587

9/21/22

—

(135,313)

New

Zealand

Dollar

.

BOFA

Buy

10,600,000

6,634,540

9/21/22

—

(20,968)

New

Zealand

Dollar

.

CITI

Buy

12,470,000

8,485,735

9/21/22

—

(705,429)

New

Zealand

Dollar

.

JPHQ

Buy

47,380,000

32,307,001

9/21/22

—

(2,745,580)

South

Korean

Won

..

BNDP

Buy

71,267,400,000

54,930,092

9/21/22

468,980

—

Euro

.............

CITI

Sell

30,510,000

34,114,756

9/22/22

1,956,725

—

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Templeton

Global

Bond

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TGB-15

Forward

Exchange

Contracts

(continued)

Currency

Counter-

party

a

Type

Quantity

Contract

Amount*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

(continued)

Euro

.............

HSBK

Sell

25,250,000

28,230,258

9/22/22

$

1,616,351

$

—

Euro

.............

GSCO

Sell

1,230,811

1,386,078

10/03/22

87,738

—

Indian

Rupee

......

JPHQ

Buy

205,911,800

2,672,617

10/07/22

—

(87,921)

Chilean

Peso

......

GSCO

Buy

1,363,170,000

1,642,888

10/11/22

—

(187,332)

Indian

Rupee

......

CITI

Buy

200,059,600

2,588,763

10/11/22

—

(78,464)

Indian

Rupee

......

JPHQ

Buy

266,347,200

3,461,977

10/11/22

—

(119,918)

Euro

.............

DBAB

Sell

28,725,356

297,167,015

SEK

10/12/22

—

(1,147,963)

Indian

Rupee

......

CITI

Buy

241,153,200

3,132,673

10/12/22

—

(107,025)

Singapore

Dollar

....

MSCO

Buy

10,540,000

7,736,821

10/21/22

—

(142,050)

Euro

.............

BZWS

Sell

18,568,000

20,340,316

10/25/22

714,300

—

Euro

.............

DBAB

Sell

24,278,000

26,560,090

10/25/22

898,716

—

Chilean

Peso

......

JPHQ

Buy

3,325,445,264

4,012,362

10/26/22

—

(470,899)

Euro

.............

HSBK

Sell

19,066,768

26,135,009

CAD

11/03/22

139,733

—

Indian

Rupee

......

CITI

Buy

149,657,200

1,916,471

11/10/22

—

(43,874)

Indian

Rupee

......

HSBK

Buy

242,055,750

3,072,397

11/14/22

—

(44,792)

Chinese

Yuan

......

BOFA

Buy

220,626,460

33,030,880

12/08/22

—

(62,149)

Chinese

Yuan

......

CITI

Buy

284,452,570

42,633,139

12/08/22

—

(126,723)

Chinese

Yuan

......

JPHQ

Buy

109,163,880

16,329,431

12/09/22

—

(16,629)

South

Korean

Won

..

JPHQ

Buy

8,539,200,000

6,776,605

12/14/22

—

(117,002)

Chilean

Peso

......

JPHQ

Buy

3,325,454,736

3,624,474

12/27/22

—

(121,669)

Euro

.............

DBAB

Sell

24,397,000

26,885,584

1/25/23

892,566

—

Chilean

Peso

......

GSCO

Buy

2,307,250,000

2,731,767

3/07/23

—

(326,401)

Euro

.............

BZWS

Sell

8,713,000

9,677,486

4/25/23

334,304

—

Mexican

Peso

......

CITI

Sell

106,418,000

4,633,013

10/23/23

—

(198,604)

Total

Forward

Exchange

Contracts

...................................................

$19,462,411

$(25,618,716)

Net

unrealized

appreciation

(depreciation)

............................................

$(6,156,305)

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

See

Note

11 regarding

other

derivative

information.

See

A

bbreviations

on

page

TGB-

31

.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TGB-16

Templeton

Global

Bond

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$1,961,326,153

Cost

-

Non-controlled

affili

ates

(Note

3e)

.......................................................

163,878,104

Value

-

Unaffiliated

issuers

..................................................................

$1,619,050,003

Value

-

Non-controlled

affiliates

(Note

3e)

.......................................................

163,878,104

Cash

....................................................................................

44,658

Restricted

cash

for

OTC

derivative

contracts

(Note

1d)

...............................................

3,420,000

Restricted

currency,

at

value

(cost

$10,762,000)

(Note

1e)

............................................

8,831,628

Foreign

currency,

at

value

(cost

$1,292,666)

......................................................

1,245,098

Receivables:

Investment

securities

sold

...................................................................

1,851,331

Capital

shares

sold

........................................................................

215,762

Interest

.................................................................................

16,098,674

Deposits

with

brokers

for:

OTC

derivative

contracts

..................................................................

16,083,000

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

19,462,411

Total

assets

..........................................................................

1,850,180,669

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

342

Capital

shares

redeemed

...................................................................

2,183,305

Management

fees

.........................................................................

682,787

Distribution

fees

..........................................................................

354,289

Trustees'

fees

and

expenses

.................................................................

438

Deposits

from

brokers

for:

OTC

derivative

contracts

..................................................................

3,420,000

Options

written,

at

value

(premiums

received

$1,331,330)

............................................

418,423

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

25,618,716

Deferred

tax

...............................................................................

699,121

Accrued

expenses

and

other

liabilities

...........................................................

1,184,022

Total

liabilities

.........................................................................

34,561,443

Net

assets,

at

value

.................................................................

$1,815,619,226

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$2,385,559,668

Total

distributable

earnings

(losses)

.............................................................

(569,940,442)

Net

assets,

at

value

.................................................................

$1,815,619,226

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TGB-17

Templeton

Global

Bond

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$164,772,141

Shares

outstanding

........................................................................

12,660,517

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$13.01

Class

2:

Net

assets,

at

value

.......................................................................

$1,590,519,781

Shares

outstanding

........................................................................

128,707,227

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.36

Class

4:

Net

assets,

at

value

.......................................................................

$60,327,304

Shares

outstanding

........................................................................

4,767,790

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.65

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TGB-18

Templeton

Global

Bond

VIP

Fund

Investment

income:

Dividends:

Non-controlled

affili

ates

(Note

3e)

.............................................................

$79,261

Interest:

(net

of

foreign

taxes

of

$1,466,804)

Unaffiliated

issuers:

Inflation

principal

adjustments

..............................................................

10,108,483

Paid

in

cash

a

...........................................................................

31,954,010

Total

investment

income

...................................................................

42,141,754

Expenses:

Management

fees

(Note

3

a

)

...................................................................

4,632,371

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

2,184,919

    Class

4

................................................................................

117,771

Custodian

fees

(Note

4

)

......................................................................

254,283

Reports

to

shareholders

fees

..................................................................

101,253

Professional

fees

...........................................................................

58,778

Trustees'

fees

and

expenses

..................................................................

10,029

Other

....................................................................................

35,406

Total

expenses

.........................................................................

7,394,810

Expense

reductions

(Note

4

)

...............................................................

(34,060)

Expenses

waived/paid

by

affiliates

(Note

3e)

...................................................

(149,620)

Net

expenses

.........................................................................

7,211,130

Net

investment

income

................................................................

34,930,624

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

(net

of

foreign

taxes

of

$90,120)

Unaffiliated

issuers

......................................................................

(44,619,903)

Written

options

...........................................................................

2,735,040

Foreign

currency

transactions

................................................................

(1,682,198)

Forward

exchange

contracts

.................................................................

3,124,386

Net

realized

gain

(loss)

..................................................................

(40,442,675)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(100,300,000)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(2,517,855)

Written

options

...........................................................................

(1,580,832)

Forward

exchange

contracts

.................................................................

(7,748,199)

Change

in

deferred

taxes

on

unrealized

appreciation

...............................................

655,468

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(111,491,418)

Net

realized

and

unrealized

gain

(loss)

............................................................

(151,934,093)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(117,003,469)

a

Includes

amortization

of

premium

and

accretion

of

discount.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TGB-19

Templeton

Global

Bond

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$34,930,624

$71,596,289

Net

realized

gain

(loss)

.................................................

(40,442,675)

(185,608,767)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(111,491,418)

238,289

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(117,003,469)

(113,774,189)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

(28,918,2

53)

(9,857,158)

Class

2

.............................................................

(166,634,013)

(63,558,697)

Class

4

.............................................................

(7,216,375)

(1,380,150)

Total

capital

share

transactions

............................................

(202,768,641)

(74,796,005)

Net

increase

(decrease)

in

net

assets

...................................

(319,772,110)

(188,570,194)

Net

assets:

Beginning

of

period

.....................................................

2,135,391,336

2,323,961,530

End

of

period

..........................................................

$1,815,619,226

$2,135,391,336

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

Templeton

Global

Bond

VIP

Fund

TGB-20

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Templeton

Variable

Insurance

Products

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Templeton

Global

Bond

VIP

Fund

(Fund)

is

included

in

this

report. Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

The

Fund

offers

three

classes

of

shares:

Class

1,

Class

2

and

Class

4.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege.

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Debt

securities

generally

trade

in

the over-the-counter

(OTC)

market

rather

than

on

a

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

Certain

derivative

financial

instruments

are

centrally

cleared

or

trade

in

the

OTC

market.

The

Fund's

pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

fair

value

of

those

instruments.

The

Fund's

net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TGB-21

Semiannual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Derivative

Financial

Instruments

The

Fund invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statement

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statement

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

The

Fund

attempts

to

reduce its

exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the Fund

include

failure

of

the

Fund

to

maintain

certain

net

asset

levels

and/or

limit

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Fund

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

terms

are

contract

specific

for

OTC

derivatives.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of

the

agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund,

if

any,

is

held

in

segregated

accounts

with

the

Fund's

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Fund's

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

1.

Organization

and

Significant

Accounting

Policies

(continued)

b.

Foreign

Currency

Translation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TGB-22

Semiannual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

The

Fund entered

into

OTC

forward

exchange

contracts

primarily

to

manage

and/or

gain

exposure

to

certain

foreign

currencies.

A

forward

exchange

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

foreign

currency at

a

specific

exchange

rate

on

a

future

date.

The

Fund

purchased

or

wrote

OTC

option

contracts

primarily

to

manage

and/or

gain

exposure

to

foreign

exchange

rate

risk.

An

option

is

a

contract

entitling

the

holder

to

purchase

or

sell

a

specific

amount

of

shares

or

units

of

an

asset

or

notional

amount

of

a

swap

(swaption),

at

a

specified

price.

When

an

option

is

purchased

or

written,

an

amount

equal

to

the

premium

paid

or

received

is

recorded

as

an

asset

or

liability,

respectively.

Upon

exercise

of

an

option,

the

acquisition

cost

or

sales

proceeds

of

the

underlying

investment

is

adjusted

by

any

premium

received

or

paid.

Upon

expiration

of

an

option,

any

premium

received

or

paid

is

recorded

as

a

realized

gain

or

loss.

Upon

closing

an

option

other

than

through

expiration

or

exercise,

the

difference

between

the

premium

received

or

paid

and

the

cost

to

close

the

position

is

recorded

as

a

realized

gain

or

loss.

See

Note

11

regarding

other

derivative

information.

d.

Restricted

Cash

At

June

30,

2022, the

Fund

held

restricted

cash

in

connection

with

investments

in

certain

derivative

securities.

Restricted

cash

is

held

in

a

segregated

account

with

the

Fund’s

counterparty

broker

and

is

reflected

in

the

Statement

of

Assets

and

Liabilities.

e.

Restricted

Currency

At

June

30,

2022,

the

Fund

held

currencies

in

certain

markets

in

which

the

ability

to

repatriate

such

currency

is

limited.

As

a

result

of

such

limitations

on

repatriation,

the

Fund

may

incur

substantial

delays

in

gaining

access

to

these

assets

and

may

be

exposed

to

potential

adverse

movements

in

currency

value.

f.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date. 

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

g.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Dividend

income

is

recorded

on

the

ex-dividend

date.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Derivative

Financial

Instruments

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TGB-23

Semiannual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

Inflation-indexed

bonds

are

adjusted

for

inflation

through

periodic

increases

or

decreases

in

the

security's

interest

accruals,

face

amount,

or

principal

redemption

value,

by

amounts

corresponding

to

the

rate

of

inflation

as

measured

by

an

index.

Any

increase

or

decrease

in

the

face

amount

or

principal

redemption

value

will

be

included

as

inflation

principal

adjustments

in

the

Statement

of

Operations.

h.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

i.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust, on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

726,114

$9,919,508

2,973,164

$41,967,080

Shares

redeemed

...............................

(2,855,020)

(38,837,761)

(3,685,956)

(51,824,238)

Net

increase

(decrease)

..........................

(2,128,906)

$(28,918,253)

(712,792)

$(9,857,158)

Class

2

Shares:

Shares

sold

...................................

2,629,832

$34,327,490

10,826,597

$145,827,853

Shares

redeemed

...............................

(15,502,902)

(200,961,503)

(15,636,949)

(209,386,550)

Net

increase

(decrease)

..........................

(12,873,070)

$(166,634,013)

(4,810,352)

$(63,558,697)

Class

4

Shares:

Shares

sold

...................................

144,033

$1,918,579

824,461

$11,404,659

Shares

redeemed

...............................

(686,743)

(9,134,954)

(933,077)

(12,784,809)

Net

increase

(decrease)

..........................

(542,710)

$(7,216,375)

(108,616)

$(1,380,150)

1.

Organization

and

Significant

Accounting

Policies

(continued)

g.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TGB-24

Semiannual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was 0.462%

of

the

Fund’s

average daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

2

and

Class

4

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.25%

and

0.35%

per

year

of

its

average

daily

net

assets

of

Class

2

and

Class

4,

respectively.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

e.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

In

excess

of

$15

billion

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TGB-25

Semiannual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

June

30,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2021,

the

capital

loss

carryforwards

were

as

follows:

At

June

3

0,

2022

,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

foreign

currency

transactions,

foreign

capital

gains

tax,

bond

discounts

and

premiums,

tax

straddles

and

inflation

related

adjustments

on

foreign

securities.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Templeton

Global

Bond

VIP

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$

94,380,135

$

600,813,125

$

(531,315,156)

$

—

$

—

$

163,878,104

163,878,104

$

79,261

Total

Affiliated

Securities

...

$94,380,135

$600,813,125

$(531,315,156)

$—

$—

$163,878,104

$79,261

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$11,031,492

Long

term

................................................................................

190,967,605

Total

capital

loss

carryforwards

...............................................................

$201,999,097

Cost

of

investments

..........................................................................

$2,138,638,110

Unrealized

appreciation

........................................................................

$41,284,313

Unrealized

depreciation

........................................................................

(403,569,043)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(362,284,730)

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TGB-26

Semiannual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

aggregated

$165,288,125

and

$198,317,821,

respectively.

7.

Credit

Risk

At

June

30,

2022,

the

Fund

had

11.9%

of

its

portfolio

invested

in

high

yield

or

other

securities

rated

below

investment

grade

and

unrated

securities,

if

any.

These

securities

may

be

more

sensitive

to

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

to

a

greater

risk

of

loss

due

to

default

than

higher

rated

securities.

8.

Concentration

of

Risk

Investments

in

issuers

domiciled

or

with

significant

operations

in

developing

or

emerging

market

countries

may

be

subject

to

higher

risks

than

investments

in

developed

countries.

These

risks

include

fluctuating

currency

values,

underdeveloped

legal

or

business

systems,

and

changing

local

and

regional

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

Currencies

of

developing

or

emerging

market

countries

may

be

subject

to

significantly

greater

risks

than

currencies

of

developed

countries,

including

the

potential

inability

to

repatriate

those

currencies

into

U.S.

dollars.

At

June

30,

2022,

the

Fund

had

1.9%

of

its

net

assets

denominated

in

Argentine

Pesos. Argentina

has

restricted

currency

repatriation

since

September

2019,

and

had

restructured

certain

issues

of

its

debt.

Political

and

economic

conditions

in

Argentina

could

continue

to

affect

the

value

of

the

Fund's

holdings.

9.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

10.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TGB-27

Semiannual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

11.

Other

Derivative

Information

At

June

30,

2022,

the

Fund's

investments

in

derivative

contracts

are

reflected

in

the

Statement of

Assets

and

Liabilities

as

follows:

For

the

period

ended

June

30,

2022,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

period

ended

June

30,

2022,

the

average

month

end

notional

amount

of

options

represented

$385,649,000.

The

average

month

end

contract

value

of

forward

exchange

contracts

was

$1,451,934,155.

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Templeton

Global

Bond

VIP

Fund

Foreign

exchange

contracts

..

Investments

in

securities,

at

value

$

1,288,450

a

Options

written,

at

value

$

418,423

Unrealized

appreciation

on

OTC

forward

exchange

contracts

19,462,411

Unrealized

depreciation

on

OTC

forward

exchange

contracts

25,618,716

Total

....................

$20,750,861

$26,037,139

a

Purchased

option

contracts

are

included

in

investments

in

securities,

at

value

in

the

Statement

of

Assets

and

Liabilities.

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Period

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Period

Templeton

Global

Bond

VIP

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Investments

$(6,769,825)

a

Investments

$3,620,782

a

Written

options

2,735,040

Written

options

(1,580,832)

Forward

exchange

contracts

3,124,386

Forward

exchange

contracts

(7,748,199)

Total

.......................

$(910,399)

$(5,708,249)

a

Purchased

option

contracts

are

included

in

net

realized

gain

(loss)

from

investments

and

net

change

in

unrealized

appreciation

(depreciation)

on

investments

in

the

Statement

of

Operations.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TGB-28

Semiannual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

At

June

30,

2022,

OTC

derivative

assets

and

liabilities

are

as

follows:

At

June

3

0

,

202

2

,

OTC

derivative

assets,

which

may

be

offset

against

OTC

derivative

liabilities

and

collateral

received

from

the

counterparty,

are

as

follows:

Gross

Amounts

of

Assets

and

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Assets

a

Liabilities

a

Templeton

Global

Bond

VIP

Fund

Derivatives

Forward

exchange

contracts

.............................

$

19,462,411

$

25,618,716

Options

purchased

.....................................

1,288,450

—

Options

written

........................................

—

418,423

Total

.............................................

$20,750,861

$26,037,139

a

Absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Assets

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Received

a,b

Cash

Collateral

Received

Net

Amount

(Not

less

than

zero)

Templeton

Global

Bond

VIP

Fund

Counterparty

BNDP

...................

$468,980

$—

$(18,488)

$—

$450,492

BOFA

....................

698,439

(142,866)

—

(450,000)

105,573

BZWS

...................

1,048,604

—

(488,604)

(560,000)

—

CITI

.....................

5,969,903

(5,969,903)

—

—

—

DBAB

...................

1,791,282

(1,791,282)

—

—

—

GSCO

...................

87,738

(87,738)

—

—

—

HSBK

...................

6,303,960

(976,444)

(3,716,033)

—

1,611,483

JPHQ

...................

807,018

(807,018)

—

—

—

MSCO

...................

3,574,937

(933,656)

—

(2,410,000)

231,281

Total

...................

$20,750,861

$(10,708,907)

$

(4,223,125)

$(3,420,000)

$2,398,829

$

1

11.

Other

Derivative

Information

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TGB-29

Semiannual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

At

June

30,

2022,

OTC

derivative

liabilities,

which

may

be

offset

against

OTC

derivative

assets

and

collateral

pledged

to

the

counterparty,

are

as

follows:

See

Note

1(c)

regarding

derivative

financial

instruments.

See

Abbreviations

on

page

TGB-

31

.

12.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Pledged

Cash

Collateral

Pledged

b

Net

Amount

(Not

less

than

zero)

Templeton

Global

Bond

VIP

Fund

Counterparty

BNDP

...................

$—

$—

$—

$—

$—

BOFA

....................

142,866

(142,866)

—

—

—

BZWS

...................

—

—

—

—

—

CITI

.....................

6,067,968

(5,969,903)

—

(98,065)

—

DBAB

...................

4,403,575

(1,791,282)

—

(2,200,000)

412,293

GSCO

...................

3,275,222

(87,738)

—

(3,187,484)

—

HSBK

...................

976,444

(976,444)

—

—

—

JPHQ

...................

10,237,408

(807,018)

—

(9,430,390)

—

MSCO

...................

933,656

(933,656)

—

—

—

Total

...................

$26,037,139

$(10,708,907)

$—

$(14,915,939)

$412,293

a

At

June

30,

2022,

the

Fund

received

U.S.

Treasury

Bonds,

Notes

and

U.K.

Treasury

Inflation-Linked

Gilt

Bonds

as

collateral

for

derivatives.

b

In

some

instances,

the

collateral

amounts

disclosed

in

the

table

above

were

adjusted

due

to

the

requirement

to

limit

the

collateral

amounts

to

avoid

the

effect

of

overcollateralization.

Actual

collateral

received

and/or

pledged

may

be

more

than

the

amounts

disclosed

herein.

11.

Other

Derivative

Information

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TGB-30

Semiannual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

13.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's assets

and

liabilities

carried

at

fair

value,

is

as

follows:

14.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Level

1

Level

2

Level

3

Total

Templeton

Global

Bond

VIP

Fund

Assets:

Investments

in

Securities:

Foreign

Government

and

Agency

Securities

....

$

—

$

947,869,020

$

—

$

947,869,020

U.S.

Government

and

Agency

Securities

.......

—

400,925,785

—

400,925,785

Options

purchased

.......................

—

1,288,450

—

1,288,450

Short

Term

Investments

...................

163,878,104

268,966,748

—

432,844,852

Total

Investments

in

Securities

...........

$163,878,104

$1,619,050,003

$—

$1,782,928,107

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

19,462,411

$

—

$

19,462,411

Restricted

Currency

(ARS)

.................

—

8,831,628

—

8,831,628

Total

Other

Financial

Instruments

.........

$—

$28,294,039

$—

$28,294,039

Receivables:

Interest

(ARS)

...........................

$—

$419,802

$—

$419,802

Liabilities:

Other

Financial

Instruments:

Options

written

..........................

$

—

$

418,423

$

—

$

418,423

Forward

exchange

contracts

................

—

25,618,716

—

25,618,716

Total

Other

Financial

Instruments

.........

$—

$26,037,139

$—

$26,037,139

Payables:

Deferred

Tax

(ARS)

.......................

$—

$1,204

$—

$1,204

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TGB-31

Semiannual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

Abbreviations

Counterparty

BNDP

BNP

Paribas

SA

BOFA

Bank

of

America

Corp.

BZWS

Barclays

Bank

plc

CITI

Citibank

NA

DBAB

Deutsche

Bank

AG

GSCO

Goldman

Sachs

Group,

Inc.

HSBK

HSBC

Bank

plc

JPHQ

JPMorgan

Chase

Bank

NA

MSCO

Morgan

Stanley

Cu

r

rency

ARS

Argentine

Peso

BRL

Brazilian

Real

CAD

Canadian

Dollar

COP

Colombian

Peso

EUR

Euro

GBP

British

Pound

GHS

Ghanaian

Cedi

IDR

Indonesian

Rupiah

INR

Indian

Rupee

KRW

South

Korean

Won

MXN

Mexican

Peso

NOK

Norwegian

Krone

SEK

Swedish

Krona

SGD

Singapore

Dollar

THB

Thai

Baht

USD

United

States

Dollar

TG-1

Semiannual

Report

Templeton

Growth

VIP

Fund

This

semiannual

report

for

Templeton

Growth

VIP

Fund

covers

the

period

ended

June

30,

2022.

Class

1

Performance

Summary

as

of

June

30,

2022

The

Fund’s

Class

1

Shares*

posted

a

-15.22%

total

return

for

the

six-month

period

ended

June

30,

2022.

*The

Fund

has

an

expense

reduction

contractually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction;

without

this

reduction,

the

results

would

have

been

lower.

Performance

reflects

the

Fund’s

Class

1

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

TG-2

Semiannual

Report

Templeton

Growth

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

long-term

capital

growth.

Under

normal

market

conditions,

the

Fund

invests

primarily

in

the

equity

securities

(primarily

common

stocks)

of

companies

located

anywhere

in

the

world,

including

developing

markets.

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

Special

risks

are

associated

with

foreign

investing,

including

currency

fluctuations,

economic

instability

and

political

developments;

investments

in

developing

markets

involve

heightened

risks

related

to

the

same

factors.

Because

the

Fund

may

invest

at

least

a

significant

portion

of

its

assets

in

companies

in

a

specific

region,

including

Europe,

it

is

subject

to

greater

risks

of

adverse

developments

in

that

region

and/

or

the

surrounding

regions

than

a

fund

that

is

more

broadly

diversified

geographically.

Political,

social

or

economic

disruptions

in

the

region,

even

in

countries

in

which

the

Fund

is

not

invested,

may

adversely

affect

the

value

of

securities

held

by

the

Fund.

Current

political

uncertainty

concerning

the

economic

consequences

of

the

departure

of

the

U.K.

from

the

European

Union

may

increase

market

volatility.

Derivatives

involve

costs

and

can

create

economic

leverage

which

may

result

in

significant

volatility

and

cause

the

Fund

to

participate

in

losses

(and

enable

gains)

on

an

amount

that

exceeds

the

Fund’s

initial

investment.

In

addition,

securities

issued

by

small-

and

mid-capitalization

companies

have

historically

experienced

more

price

volatility

than

larger-company

stocks,

especially

over

the

short

term

and

may

involve

additional

risks.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine. The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion. These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

For

comparison,

the

Fund’s

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

posted

a

-20.18%

total

return

for

the

period

under

review.

1

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

ACWI-NR,

posted

a

-20.18%

total

return

for

the

six

months

ended

June

30,

2022

.

1

The

combination

of

resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

many

countries.

This

inflationary

pressure

led

many

of

the

world’s

central

banks

to

adopt

less

accommodative

stances

regarding

monetary

policy.

The

Chinese

government’s

imposition

of

new

lockdowns

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

pressured

Asian

and

global

emerging

market

stocks.

Russia’s

invasion

of

Ukraine

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

constrained

companies

that

do

business

with

Russia

and

disrupted

global

economic

activity

and

commodity

markets.

In

the

U.S.,

gross

domestic

product

(GDP)

growth

turned

negative

in

the

first

quarter

of

2022

as

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

the

economy.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

Geographic

Composition

6/30/22

%

of

Total

Net

Assets

North

America

51.6%

Europe

26.7%

Asia

14.1%

Short-Term

Investments

&

Other

Net

Assets

7.6%

1.

Source:

Morningstar.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

Templeton

Growth

VIP

Fund

TG-3

Semiannual

Report

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings,

and

anticipated

instituting

further

interest

rate

increases

at

future

meetings.

Economic

growth

in

the

eurozone

maintained

a

slow

rate

in

the

first

quarter

of

2022

as

the

war

in

Ukraine

disrupted

supply

chains,

sent

commodity

prices

higher,

and

weakened

the

economic

outlook.

The

war

in

Ukraine

contributed

to

record

high

inflation

across

the

eurozone

as

commodity

and

oil

prices

soared.

The

European

Central

Bank

indicated

it

will

raise

interest

rates

in

July,

the

first

increase

in

more

than

a

decade,

to

fight

growing

inflation.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-20.79%

total

return

for

the

six

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-17.69%

total

return

for

the

six-month

period.

1

While

many

Asian

countries

experienced

improving

economic

conditions,

Japan’s

GDP

contracted

in

the

first

quarter

of

2022

after

having

returned

to

growth

in

the

fourth

quarter

of

2021.

Although

China’s

economy

continued

to

grow,

it

was

pressured

by

coronavirus-related

restrictions

and

government

measures

to

limit

real

estate

speculation.

Unexpected

regulatory

changes

by

the

Chinese

government,

which

negatively

impacted

education-

and

technology-

related

businesses,

and

investor

concerns

about

the

solvency

of

several

large

Chinese

property

developers

further

pressured

Chinese

stocks.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-17.63%

total

return

for

the

six

months

under

review.

1

Following

Russia’s

invasion

of

Ukraine,

climbing

food

and

energy

prices

kindled

inflationary

pressures

and

raised

concerns

over

the

possibility

of

government

debt

defaults

in

some

countries.

Meanwhile,

some

countries,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

have

benefited

from

the

rising

commodity

prices.

Investment

Strategy

When

choosing

equity

investments

for

the

Fund,

we

apply

a

bottom-up,

value-oriented,

long-term

approach,

focusing

on

the

market

price

of

a

company’s

securities

relative

to

our

evaluation

of

the

company’s

long-term

earnings,

asset

value

and

cash

flow

potential.

We

also

consider

a

company’s

price/earnings

ratio,

price/cash

flow

ratio,

profit

margins

and

liquidation

value.

The

Fund

may,

from

time

to

time,

seek

to

hedge

(protect)

against

currency

risks,

using

certain

currency-related

derivative

instruments.

The

Fund

may

also

use

a

variety

of

equity-related

derivatives

for

various

purposes

including

enhancing

Fund

returns,

increasing

liquidity

and

gaining

exposure

to

particular

markets

in

more

efficient

or

less

expensive

ways.

Manager’s

Discussion

Templeton

Growth

VIP

Fund

declined

during

the

review

period,

but

limited

losses

relative

to

its

benchmark.

The

Fund

outperformed

the

MSCI

ACWI-NR

by

the

largest

margin

to

start

a

year

in

two

decades.

Relative

outperformance

during

the

period

was

attributable

to

a

combination

of

stock

selection

and

favorable

allocations.

During

the

period,

the

Fund

generally

reduced

exposure

to

cyclicality

and

growth

while

increasing

exposure

to

defensiveness

and

quality.

That

positioning

aided

relative

returns

in

a

down

market,

though

overall

the

Fund’s

position

was

more

nuanced.

We

have

continued

to

look

for

an

interesting

range

of

exposures

across

diverse

value

types,

including

restructuring

stories,

mispriced

growth

stocks,

defensive

names

with

growth

optionality

and

cheap

cyclicals

whose

growth

profile

may

be

more

structural

than

assumed.

Given

the

macroeconomic

uncertainty

and

various

other

crosscurrents

impacting

markets

currently,

we

favor

a

genuinely

diverse

portfolio

of

higher-quality

stocks

whose

fortunes

depend

not

on

a

rising

tide,

but

instead

on

idiosyncratic

value

creation.

From

a

sector

standpoint,

information

technology

(IT)

was

the

biggest

contributor

to

relative

performance.

While

there

were

no

IT

holdings

among

the

Fund’s

top-10

contributors,

our

underweighted

allocation

to

the

sector

and

stock

selection

contributed

to

relative

returns.

IT

was

the

market’s

worst-performing

sector

in

the

first

half

of

2022,

and

globally

is

significantly

down

from

its

highs

at

the

end

of

2021.

Semiconductors

remained

a

weak

spot,

as

the

sector’s

most

cyclical

area

suffered

amid

growing

concerns

that

war

in

Europe

and

tighter

monetary

policy

would

lead

to

a

slowdown.

However,

we

continue

to

like

select

chipmakers

given

good

exposure

to

long-term

growth

trends

tied

to

digitalization,

energy

efficiency

and

electric

vehicles.

We

aren’t

currently

finding

many

opportunities

in

technology

hardware

due

to

the

sector’s

slowing

demand

profile

and

likely

earnings

retrenchment

as

the

COVID-19

pandemic

Templeton

Growth

VIP

Fund

TG-4

Semiannual

Report

wanes.

We

favor

select

software

firms

with

good

recurring

revenues

and

underappreciated

growth

potential.

In

general,

our

valuation

discipline

and

avoidance

of

overvalued

(and

often

profitless)

thematic

stocks

in

IT

has

served

us

well

so

far

in

2022.

The

combination

of

stock

selection

and

favorable

overweighted

allocations

in

health

care

and

energy

also

contributed

to

relative

performance.

Health

care

was

led

by

U.S.

biopharmaceuticals

firm

AbbVie.

Shares

advanced

after

the

firm

reported

decent

results

punctuated

by

better-

than-expected

sales

of

its

blockbuster

biologic

treatment

Humira.

We

remain

constructive

on

the

stock

given

its

low

valuation,

high

dividend

yield

and

generally

low

event

risk.

We

are

encouraged

by

management’s

strong

track

record

of

capital

allocation

and

strategic

execution,

which

is

important

given

the

prospect

of

further

acquisitions

in

the

next

few

years.

Meanwhile,

energy

delivered

the

Fund’s

best

individual

contributor,

U.S.

refiner

Marathon

Petroleum.

Shares

rallied

as

the

price

of

oil

rose

to

a

10-year

high

and

the

firm

beat

earnings

estimates,

buoyed

by

stronger-than-

expected

refining

results

and

the

authorization

of

a

$5

billion

share

buyback.

We

remain

constructive

on

the

energy

sector

more

broadly

given

favorable

supply-demand

fundamentals

and

the

prodigious

cash

flow

generating

capabilities

of

oil

companies

that

have

become

much

more

capital

disciplined

over

the

course

of

the

cycle.

While

the

sector

is

certainly

benefiting

in

the

current

environment,

we

view

elevated

oil

prices

in

many

cases

as

a

free

call

option

on

these

stocks,

which

in

our

view

represent

good

value

even

at

the

more

normalized

price

levels

of

$60-70/barrel

that

are

embedded

in

our

company

models.

Stock

selection

also

supported

relative

results

in

even-

weighted

industrials

holdings,

led

by

U.K.

defense

contractor

BAE

Systems.

Shares

advanced

as

the

war

in

Ukraine

resuscitated

demand

for

high

technology

military

platforms.

We

believe

the

stock

remains

attractively

priced

at

a

discount

to

U.S.

defense

peers

despite

having,

in

our

view,

a

higher

growth

profile

and

superior

margin

upside.

Following

several

years

of

underperformance,

BAE

introduced

a

new

management

team

in

2020

that

has

since

delivered

above-industry-average

growth

and

ongoing

improvement

in

operating

margins

and

cash

conversion.

In

addition

to

delivering

on

its

operating

and

financial

objectives,

management

has

eliminated

burdensome

pension

obligations

and

generated

better-than-expected

flows

that

are

being

used

to

raise

dividends

and

repurchase

shares.

We

remain

constructive

given

generally

increasing

defense

budgets,

good

long-term

revenue

visibility,

and

a

degree

of

inflation

protection

inherent

in

BAE’s

business

model

given

inflation

protection

through

contract

pass-through

provisions.

Turning

to

laggards,

consumer

discretionary

was

the

biggest

relative

detractor

as

an

unfavorable

overweighting

to

the

weak

sector

offset

positive

stock

selection.

Just

Eat

Takeaway.com,

the

largest

food

delivery

platform

in

Europe,

finished

as

the

Fund’s

biggest

individual

detractor.

Shares

declined

on

concerns

about

competition,

profitability,

portfolio

optimization

and

the

departure

of

both

its

chief

executive

officer

and

chief

operating

officer.

We

believe

Just

Eat

holds

a

defensible

position

in

its

core

markets

as

a

low-

cost

operator

and

benefits

from

strong

local

network

effects

between

restaurants,

customers

and

couriers.

Ongoing

restructuring

and

portfolio

rationalization

should

help

the

firm

realize

the

value

of

assets

that

are

currently

being

excessively

discounted,

based

on

our

analysis.

Stock

selection

in

utilities

also

detracted

from

relative

performance,

pressured

by

German

power

provider

E.ON,

which

declined

due

to

rising

concerns

around

gas

supply

in

Europe.

While

E.ON

does

not

have

direct

contracts

with

Russia,

rising

prices

may

put

pressure

on

its

business

and

take

some

time

to

pass

on.

Looking

at

the

longer

term,

we

believe

E.ON

is

well-positioned

to

benefit

from

the

energy

transition

in

Europe

and

should

be

able

to

grow

capital

and

dividends

steadily

over

time.

Nevertheless,

we

are

monitoring

the

regulatory

situation

in

Germany

given

the

risk

that

limitations

could

be

placed

on

the

firm’s

ability

to

pass

through

rising

energy

prices.

Top

10

Holdings

6/30/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

AbbVie,

Inc.

3.0%

Biotechnology,

United

States

AstraZeneca

plc

2.6%

Pharmaceuticals,

United

Kingdom

GSK

plc

2.5%

Pharmaceuticals,

United

States

Anheuser-Busch

InBev

SA/NV

2.4%

Beverages,

Belgium

Johnson

&

Johnson

2.4%

Pharmaceuticals,

United

States

Samsung

Electronics

Co.

Ltd.

2.3%

Technology

Hardware,

Storage

&

Peripherals,

South

Korea

Unilever

plc

2.3%

Personal

Products,

United

Kingdom

BP

plc

2.3%

Oil,

Gas

&

Consumable

Fuels,

United

Kingdom

Medtronic

plc

2.2%

Health

Care

Equipment

&

Supplies,

United

States

Dollar

Tree,

Inc.

2.2%

Multiline

Retail,

United

States

Templeton

Growth

VIP

Fund

TG-5

Semiannual

Report

Even-weighted

consumer

staples

and

underweighted

financials

holdings

also

modestly

detracted,

though

neither

sector

had

any

stocks

among

the

Fund’s

10

biggest

detractors.

From

a

regional

standpoint,

North

America

was

the

biggest

contributor,

buoyed

by

strong

stock

selection

in

the

U.S.

Europe

also

outperformed

as

strength

in

the

U.K.,

Norway,

Belgium

and

France

offset

weakness

in

Germany.

In

Asia,

the

positive

impact

of

the

Fund’s

Hong

Kong

holdings

was

outweighed

by

modest

weakness

in

Japan

and

South

Korea

and,

more

importantly,

lack

of

exposure

to

a

rebounding

Chinese

market.

Chinese

stocks

rallied

in

the

second

half

of

the

period

on

signs

that

China

was

reaching

“peak

regulation”

and

could

soon

present

a

more

favorable

investment

environment.

We

would

consider

re-entering

China

should

concrete

evidence

emerge

that

regulatory

risks

have

peaked.

At

the

moment,

however,

uncertainty

on

the

subject

makes

it

difficult

to

forecast

earnings

and

manage

risk

with

any

degree

of

conviction.

Thank

you

for

your

participation

in

Templeton

Growth

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Class

1

Fund

Expenses

Templeton

Growth

VIP

Fund

TG-6

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

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.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

any

ongoing

expenses

of

the

Contract

for

which

the

Fund

is

an

investment

option

or

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

1

$1,000

$847.80

$4.30

$1,020.14

$4.70

0.94%

TG-7

Semiannual

Report

TG

P1

05/22

SUPPLEMENT

DATED

MAY

2,

2022

TO

THE

CLASS

1

PROSPECTUS

DATED

MAY

1,

2022

OF

TEMPLETON

GROWTH

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

The

Class

1

prospectus

of

the

Fund

is

amended

as

follows:

I.

Effective

on

May

1,

2022,

the

investment

manager

of

Templeton

Growth

VIP

Fund

has

contractually

agreed

to

waive

or

assume

certain

expenses

so

that

total

annual

Fund

operating

expenses

(excluding

Rule

12b-1

fees,

acquired

fees

and

expenses

and

certain

non-routine

expenses)

for

each

class

of

the

Fund

do

not

exceed

0.87%

until

April

30,

2023.

Therefore,

the

following

replaces

the

“Annual

Fund

Operating

Expenses”

and

“Example”

tables

in

the

“Fund

Summaries

–

Templeton

Growth

VIP

Fund

–

Fees

and

Expenses

of

the

Fund”

section

of

the

prospectus:

Annual

Fund

Operating

Expenses

(expenses

that

you

pay

each

year

as

a

percentage

of

the

value

of

your

investment)

1.

The

Fee

waiver

and/or

expense

reimbursement

and

Total

annual

Fund

operating

expenses

after

fee

waiver

and/or

expense

reimbursement

line

items

have

been

restated

to

reflect

that,

effective

May

1,

2022,

the

investment

manager

has

contractually

agreed

to

waive

or

assume

certain

expenses

so

that

total

annual

Fund

operating

expenses

(excluding

Rule

12b-1

fees,

acquired

fees

and

expenses

and

certain

non-routine

expenses)

for

each

class

of

the

Fund

do

not

exceed

0.87%

until

April

30,

2023.

During

the

term,

the

fee

waiver

and

expense

reimbursement

agreement

may

not

be

terminated

or

amended

without

approval

of

the

board

of

trustees

except

to

add

series

and

classes,

to

reflect

the

extension

of

termination

dates,

or

to

lower

the

cap

on

fees

and

expenses

(which

would

result

in

lower

fees

for

shareholders).

Example

This

Example

is

intended

to

help

you

compare

the

cost

of

investing

in

the

Fund

with

the

cost

of

investing

in

other

mutual

funds.

The

Example

assumes

that

you

invest

$10,000

in

the

Fund

for

the

time

periods

indicated

and

then

redeem

all

of

your

shares

at

the

end

of

the

period.

The

Example

also

assumes

that

your

investment

has

a

5%

return

each

year

and

that

the

Fund's

operating

expenses

remain

the

same.

The

Example

reflects

adjustments

made

to

the

Fund's

operating

expenses

due

to

the

fee

waivers

and/or

expense

reimbursements

by

management

for

the

1

Year

numbers

only.

Although

your

actual

costs

may

be

higher

or

lower,

based

on

these

assumptions

your

costs

would

be:

II.

The

following

is

added

to

the

“Fund

Details

–

Templeton

Growth

VIP

Fund

–

Management”

section

of

the

prospectus:

Effective

on

May

1,

2022,

Global

Advisers

has

agreed

to

waive

or

limit

its

fees

and

to

assume

as

its

own

certain

expenses

otherwise

payable

by

the

Fund

so

that

expenses

(i.e.,

a

combination

of

investment

management

fees

and

other

expenses,

excluding

Rule

12b-1

fees

and

acquired

fund

fees

and

expenses)

do

not

exceed

0.87%

(other

than

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations

and

Class

1

Management

fees

0.85%

Distribution

and

service

(12b-1)

fees

None

Other

expenses

0.08%

Total

annual

Fund

operating

expenses

0.93%

Fee

waiver

and/or

expense

reimbursement

1

-0.06%

Total

annual

Fund

operating

expenses

after

fee

waiver

and/or

expense

reimbursement

1

0.87%

1

Year

3

Years

5

Years

10

Years

Class

1

$89

$291

$509

$1,139

TG-8

Semiannual

Report

liquidations)

until

April

30,

2023.

During

its

term,

this

fee

waiver

and

expense

reimbursement

agreement

may

not

be

terminated

or

amended

without

approval

of

the

board

of

trustees

except

to

add

series

or

classes,

to

reflect

the

extension

of

termination

dates

or

to

lower

the

fee

waiver

and

expenses

limitation.

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Growth

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TG-9

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.87

$11.42

$11.15

$12.44

$16.24

$13.93

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.08

0.09

0.24

c

0.30

0.28

0.29

Net

realized

and

unrealized

gains

(losses)

(1.89)

0.52

0.36

1.30

(2.42)

2.30

Total

from

investment

operations

........

(1.81)

0.61

0.60

1.60

(2.14)

2.59

Less

distributions

from:

Net

investment

income

..............

(0.05)

(0.16)

(0.33)

(0.40)

(0.35)

(0.28)

Net

realized

gains

.................

—

—

—

(2.49)

(1.31)

—

Total

distributions

...................

(0.05)

(0.16)

(0.33)

(2.89)

(1.66)

(0.28)

Net

asset

value,

end

of

period

..........

$10.01

$11.87

$11.42

$11.15

$12.44

$16.24

Total

return

d

.......................

(15.22)%

5.26%

5.99%

15.43%

(14.61)%

18.77%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.97%

0.91%

0.91%

0.86%

0.83%

0.82%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.94%

0.91%

f

0.91%

f

0.86%

f

0.83%

f

0.82%

f,g

Net

investment

income

...............

1.40%

0.71%

2.42%

c

2.52%

1.90%

1.94%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$31,337

$39,373

$92,653

$97,988

$354,164

$466,207

Portfolio

turnover

rate

................

20.45%

45.59%

h

63.65%

19.69%

29.25%

26.46%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.13

per

share

related

to

an

adjustment

for

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.08%.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

10.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Growth

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TG-10

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.59

$11.17

$10.90

$12.21

$15.97

$13.70

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.06

0.05

0.21

c

0.26

0.24

0.25

Net

realized

and

unrealized

gains

(losses)

(1.82)

0.50

0.36

1.28

(2.38)

2.26

Total

from

investment

operations

........

(1.76)

0.55

0.57

1.54

(2.14)

2.51

Less

distributions

from:

Net

investment

income

..............

(0.02)

(0.13)

(0.30)

(0.36)

(0.31)

(0.24)

Net

realized

gains

.................

—

—

—

(2.49)

(1.31)

—

Total

distributions

...................

(0.02)

(0.13)

(0.30)

(2.85)

(1.62)

(0.24)

Net

asset

value,

end

of

period

..........

$9.81

$11.59

$11.17

$10.90

$12.21

$15.97

Total

return

d

.......................

(15.22)%

4.87%

5.80%

15.15%

(14.85)%

18.50%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.22%

1.18%

1.16%

1.11%

1.08%

1.07%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.19%

1.18%

f

1.16%

f

1.11%

f

1.08%

f

1.07%

f,g

Net

investment

income

...............

1.15%

0.39%

2.17%

c

2.27%

1.65%

1.69%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$325,925

$405,365

$603,996

$659,412

$625,311

$879,521

Portfolio

turnover

rate

................

20.45%

45.59%

h

63.65%

19.69%

29.25%

26.46%

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

10.

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.13

per

share

related

to

an

adjustment

for

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

0.83%.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Growth

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TG-11

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.79

$11.35

$11.07

$12.36

$16.13

$13.83

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.06

0.03

0.20

c

0.26

0.23

0.24

Net

realized

and

unrealized

gains

(losses)

(1.87)

0.53

0.36

1.29

(2.40)

2.28

Total

from

investment

operations

........

(1.81)

0.56

0.56

1.55

(2.17)

2.52

Less

distributions

from:

Net

investment

income

..............

(0.01)

(0.12)

(0.28)

(0.35)

(0.29)

(0.22)

Net

realized

gains

.................

—

—

—

(2.49)

(1.31)

—

Total

distributions

...................

(0.01)

(0.12)

(0.28)

(2.84)

(1.60)

(0.22)

Net

asset

value,

end

of

period

..........

$9.97

$11.79

$11.35

$11.07

$12.36

$16.13

Total

return

d

.......................

(15.35)%

4.85%

5.65%

14.97%

(14.88)%

18.38%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.32%

1.29%

1.26%

1.21%

1.18%

1.17%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.29%

1.29%

f

1.26%

f

1.21%

f

1.18%

f

1.17%

f,g

Net

investment

income

...............

1.05%

0.24%

2.04%

c

2.17%

1.55%

1.59%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$17,791

$21,559

$23,213

$27,330

$28,238

$38,798

Portfolio

turnover

rate

................

20.45%

45.59%

h

63.65%

19.69%

29.25%

26.46%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.13

per

share

related

to

an

adjustment

for

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

0.70%.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

10.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Templeton

Growth

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TG-12

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

92.4%

Aerospace

&

Defense

3.2%

BAE

Systems

plc

.....................................

United

Kingdom

691,283

$

6,997,395

a

Rolls-Royce

Holdings

plc

...............................

United

Kingdom

5,087,809

5,176,817

12,174,212

Airlines

0.8%

a,b

International

Consolidated

Airlines

Group

SA

.................

United

Kingdom

2,292,113

3,014,750

Auto

Components

2.3%

Continental

AG

.......................................

Germany

65,846

4,621,429

Lear

Corp.

..........................................

United

States

32,198

4,053,406

8,674,835

Automobiles

1.2%

Honda

Motor

Co.

Ltd.

..................................

Japan

166,396

4,011,252

Isuzu

Motors

Ltd.

.....................................

Japan

48,200

533,060

4,544,312

Banks

1.1%

Bank

of

America

Corp.

.................................

United

States

70,226

2,186,135

Lloyds

Banking

Group

plc

...............................

United

Kingdom

4,088,051

2,102,984

4,289,119

Beverages

3.6%

Anheuser-Busch

InBev

SA/NV

...........................

Belgium

167,217

9,004,533

Pernod

Ricard

SA

.....................................

France

24,491

4,527,552

13,532,085

Biotechnology

3.0%

AbbVie,

Inc.

.........................................

United

States

73,517

11,259,864

Chemicals

3.2%

Albemarle

Corp.

......................................

United

States

25,969

5,427,002

DuPont

de

Nemours,

Inc.

...............................

United

States

118,411

6,581,283

12,008,285

Consumer

Finance

1.2%

American

Express

Co.

.................................

United

States

31,270

4,334,647

Containers

&

Packaging

1.4%

Crown

Holdings,

Inc.

...................................

United

States

55,821

5,145,022

Electric

Utilities

1.0%

b

Southern

Co.

(The)

....................................

United

States

55,120

3,930,607

Electrical

Equipment

0.3%

Schneider

Electric

SE

..................................

United

States

10,856

1,293,491

Entertainment

2.1%

a

Walt

Disney

Co.

(The)

..................................

United

States

84,404

7,967,738

Food

Products

1.8%

Danone

SA

..........................................

France

122,907

6,882,732

Health

Care

Equipment

&

Supplies

4.1%

Medtronic

plc

........................................

United

States

93,420

8,384,445

Zimmer

Biomet

Holdings,

Inc.

............................

United

States

67,580

7,099,955

15,484,400

Health

Care

Providers

&

Services

5.5%

Fresenius

Medical

Care

AG

&

Co.

KGaA

....................

Germany

119,449

5,984,242

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Templeton

Growth

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TG-13

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Health

Care

Providers

&

Services

(continued)

HCA

Healthcare,

Inc.

...................................

United

States

40,855

$

6,866,091

UnitedHealth

Group,

Inc.

................................

United

States

14,833

7,618,674

20,469,007

Hotels,

Restaurants

&

Leisure

5.1%

a

Booking

Holdings,

Inc.

.................................

United

States

3,843

6,721,369

Compass

Group

plc

...................................

United

Kingdom

212,094

4,353,869

a

Hyatt

Hotels

Corp.,

A

...................................

United

States

48,595

3,591,657

Starbucks

Corp.

......................................

United

States

57,926

4,424,967

19,091,862

Household

Durables

1.8%

Sony

Group

Corp.

.....................................

Japan

81,299

6,629,263

Industrial

Conglomerates

2.4%

Hitachi

Ltd.

..........................................

Japan

99,293

4,722,504

Honeywell

International,

Inc.

.............................

United

States

25,386

4,412,341

9,134,845

Insurance

2.1%

AIA

Group

Ltd.

.......................................

Hong

Kong

726,931

7,942,812

Interactive

Media

&

Services

1.0%

a

Alphabet,

Inc.,

A

......................................

United

States

1,755

3,824,601

Internet

&

Direct

Marketing

Retail

1.2%

a

Amazon.com,

Inc.

.....................................

United

States

8,940

949,517

a

Farfetch

Ltd.,

A

.......................................

United

Kingdom

137,773

986,455

a,c

Just

Eat

Takeaway.com

NV,

144A,

Reg

S

...................

United

Kingdom

153,368

2,409,822

4,345,794

IT

Services

4.6%

a

DXC

Technology

Co.

...................................

United

States

253,813

7,693,072

Fujitsu

Ltd.

..........................................

Japan

31,298

3,915,534

b

Visa,

Inc.,

A

..........................................

United

States

27,846

5,482,599

17,091,205

Life

Sciences

Tools

&

Services

0.4%

a

ICON

plc

............................................

Ireland

6,383

1,383,196

Machinery

3.2%

Komatsu

Ltd.

........................................

Japan

266,059

5,923,290

b

Westinghouse

Air

Brake

Technologies

Corp.

.................

United

States

72,607

5,959,583

11,882,873

Media

2.6%

Comcast

Corp.,

A

.....................................

United

States

130,285

5,112,383

b

Paramount

Global,

B

...................................

United

States

191,950

4,737,326

9,849,709

Multiline

Retail

2.2%

a

Dollar

Tree,

Inc.

......................................

United

States

51,787

8,071,004

Multi-Utilities

0.5%

E.ON

SE

............................................

Germany

217,854

1,834,913

Oil,

Gas

&

Consumable

Fuels

5.2%

BP

plc

..............................................

United

Kingdom

1,815,465

8,523,106

Marathon

Petroleum

Corp.

..............................

United

States

79,827

6,562,577

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Templeton

Growth

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TG-14

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Oil,

Gas

&

Consumable

Fuels

(continued)

Shell

plc

............................................

Netherlands

168,214

$

4,380,041

19,465,724

Personal

Products

2.3%

Unilever

plc

..........................................

United

Kingdom

190,090

8,633,549

Pharmaceuticals

10.1%

AstraZeneca

plc

......................................

United

Kingdom

73,563

9,702,969

Bayer

AG

...........................................

Germany

42,279

2,524,629

GSK

plc

............................................

United

States

434,026

9,352,418

Johnson

&

Johnson

...................................

United

States

50,662

8,993,012

Roche

Holding

AG

....................................

United

States

22,318

7,462,077

38,035,105

Professional

Services

0.6%

Adecco

Group

AG

.....................................

Switzerland

62,617

2,134,626

Semiconductors

&

Semiconductor

Equipment

3.7%

Infineon

Technologies

AG

...............................

Germany

198,582

4,830,381

Micron

Technology,

Inc.

.................................

United

States

49,244

2,722,208

NXP

Semiconductors

NV

...............................

China

28,177

4,171,041

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.,

ADR

...........

Taiwan

25,737

2,104,000

13,827,630

Specialty

Retail

3.2%

Nitori

Holdings

Co.

Ltd.

.................................

Japan

44,346

4,219,314

TJX

Cos.,

Inc.

(The)

...................................

United

States

137,454

7,676,806

11,896,120

Technology

Hardware,

Storage

&

Peripherals

2.3%

Samsung

Electronics

Co.

Ltd.

............................

South

Korea

195,785

8,699,276

Wireless

Telecommunication

Services

2.1%

a

T-Mobile

US,

Inc.

.....................................

United

States

57,726

7,766,456

Total

Common

Stocks

(Cost

$348,989,755)

.....................................

346,545,669

Short

Term

Investments

8.1%

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Time

Deposits

7.3%

Royal

Bank

of

Canada,

1.56%,

7/01/22

.....................

Canada

12,300,000

12,300,000

Toronto-Dominion

Bank

(The),

1.56%,

7/01/22

................

Canada

15,000,000

15,000,000

Total

Time

Deposits

(Cost

$27,300,000)

........................................

27,300,000

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Templeton

Growth

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TG-15

See

Abbreviations

on

page

TG-27.

Short

Term

Investments

(continued)

a

a

Country

Shares

a

Value

a

a

a

a

a

a

d

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.8%

Money

Market

Funds

0.8%

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

....

United

States

3,086,222

$

3,086,222

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$3,086,222)

............................................................

3,086,222

Total

Short

Term

Investments

(Cost

$30,386,222

)

................................

30,386,222

a

Total

Investments

(Cost

$379,375,977)

100.5%

..................................

$376,931,891

Other

Assets,

less

Liabilities

(0.5)%

...........................................

(1,879,466)

Net

Assets

100.0%

...........................................................

$375,052,425

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Non-income

producing.

b

A

portion

or

all

of

the

security

is

on

loan

at

June

30,

2022.

See

Note

1(c).

c

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2022,

the

value

of

this

security

was

$2,409,822,

representing

0.6%

of

net

assets.

d

See

Note

1(c)

regarding

securities

on

loan.

e

See

Note

3(e)

regarding

investments

in

affiliated

management

investment

companies.

f

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TG-16

Templeton

Growth

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$376,289,755

Cost

-

Non-controlled

affiliates

(Note

3e)

........................................................

3,086,222

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$7,634,105)

.................................

$373,845,669

Value

-

Non-controlled

affiliates

(Note

3e)

.......................................................

3,086,222

Cash

....................................................................................

48,617

Receivables:

Investment

securities

sold

...................................................................

1,873,279

Capital

shares

sold

........................................................................

21,360

Dividends

and

interest

.....................................................................

873,238

Total

assets

..........................................................................

379,748,385

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

550,035

Capital

shares

redeemed

...................................................................

259,313

Management

fees

.........................................................................

260,294

Distribution

fees

..........................................................................

75,532

Trustees'

fees

and

expenses

.................................................................

884

Payable

upon

return

of

securities

loaned

(Note

1

c

)

..................................................

3,086,222

Accrued

expenses

and

other

liabilities

...........................................................

463,680

Total

liabilities

.........................................................................

4,695,960

Net

assets,

at

value

.................................................................

$375,052,425

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$371,995,122

Total

distributable

earnings

(losses)

.............................................................

3,057,303

Net

assets,

at

value

.................................................................

$375,052,425

Templeton

Growth

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$31,336,655

Shares

outstanding

........................................................................

3,129,478

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$10.01

Class

2:

Net

assets,

at

value

.......................................................................

$325,924,885

Shares

outstanding

........................................................................

33,237,459

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$9.81

Class

4:

Net

assets,

at

value

.......................................................................

$17,790,885

Shares

outstanding

........................................................................

1,784,110

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$9.97

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

TG-17

Templeton

Growth

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$286,861)

Unaffiliated

issuers

........................................................................

$4,199,836

Interest:

Unaffiliated

issuers

........................................................................

37,895

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

8,715

Non-controlled

affiliates

(Note

3

e

)

.............................................................

2,011

Other

income

(Note

1

d

)

......................................................................

733,543

Total

investment

income

...................................................................

4,982,000

Expenses:

Management

fees

(Note

3

a

)

...................................................................

1,880,757

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

463,802

    Class

4

................................................................................

35,043

Custodian

fees

.............................................................................

6,618

Reports

to

shareholders

fees

..................................................................

57,120

Professional

fees

...........................................................................

57,145

Trustees'

fees

and

expenses

..................................................................

2,961

Other

....................................................................................

73,510

Total

expenses

.........................................................................

2,576,956

Expenses

waived/paid

by

affiliates

(Note

3e)

...................................................

(76,112)

Net

expenses

.........................................................................

2,500,844

Net

investment

income

................................................................

2,481,156

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

18,936,152

Foreign

currency

transactions

................................................................

(1,091,052)

Net

realized

gain

(loss)

..................................................................

17,845,100

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(89,543,265)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

292,572

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(89,250,693)

Net

realized

and

unrealized

gain

(loss)

............................................................

(71,405,593)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(68,924,437)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TG-18

Templeton

Growth

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decre

ase)

in

net

assets:

Operations:

Net

investment

income

.................................................

$2,481,156

$2,531,839

Net

realized

gain

(loss)

.................................................

17,845,100

103,019,285

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(89,250,693)

(68,186,130)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(68,924,437)

37,364,994

Distributions

to

shareholders:

Class

1

.............................................................

(172,934)

(1,223,678)

Class

2

.............................................................

(546,584)

(6,568,551)

Class

4

.............................................................

(17,767)

(217,527)

Total

distributions

to

shareholders

..........................................

(737,285)

(8,009,756)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

(2,120,408)

(57,275,687)

Class

2

.............................................................

(18,953,735)

(223,087,833)

Class

4

.............................................................

(508,785)

(2,556,253)

Total

capital

share

transactions

............................................

(21,582,928)

(282,919,773)

Net

increase

(decrease)

in

net

assets

...................................

(91,244,650)

(253,564,535)

Net

assets:

Beginning

of

period

.....................................................

466,297,075

719,861,610

End

of

period

..........................................................

$375,052,425

$466,297,075

Franklin

Templeton

Variable

Insurance

Products

Trust

TG-19

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

Templeton

Growth

VIP

Fund

1.

Organization

and

Significant

Accounting

Policies

Franklin

Templeton

Variable

Insurance

Products

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Templeton

Growth

VIP

Fund

(Fund)

is

included

in

this

report. Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

At

June

30,

2022,

42.1%

of

the

Fund’s

shares

were

held

through

one

insurance

company.

Investment

activities

of

these

insurance

company

separate

accounts

could

have

a

material

impact

on

the

Fund.

The

Fund

offers

three

classes

of

shares:

Class

1,

Class

2

and

Class

4.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege. 

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

Investments

in

time

deposits

are

valued

at

cost,

which

approximates

fair

value.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day. Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time. In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TG-20

Semiannual

Report

Templeton

Growth

VIP

Fund

(continued)

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

 The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

 Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the Fund.

Additionally

at June

30,

2022, the

Fund

held $5,030,966,

in

U.S.

Government

and

Agency

securities

as

collateral.

These

securities

are

held as

collateral

in

segregated

accounts

with

the

Fund’s

custodian.

The

Fund

cannot

repledge

or

resell

these

securities

held

as

collateral.

As

such,

the

non-cash

collateral

is

excluded

from

the

Statement

of

Assets

and

Liabilities.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to any

cash collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

d.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable, excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TG-21

Semiannual

Report

Templeton

Growth

VIP

Fund

(continued)

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

As

a

result

of

several

court

cases,

in

certain

countries

across

the

European

Union,

the

Fund

filed

additional

tax

reclaims

for

previously

withheld

taxes

on

dividends

earned

in

those

countries

(EU

reclaims).

Income

recognized,

if

any,

for

EU

reclaims

is

reflected

as

other

income

in

the

Statement

of

Operations

and

any

related

receivable,

if

any,

is

reflected

as

European

Union

tax

reclaims

in

the

Statement

of

Assets

and

Liabilities.

Any

fees

associated

with

these

filings

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

When

uncertainty

exists

as

to

the

ultimate

resolution

of

these

proceedings,

the

likelihood

of

receipt

of

these

EU

reclaims,

and

the

potential

timing

of

payment,

no

amounts

are

reflected

in

the

financial

statements.

For

U.S.

income

tax

purposes,

when

EU

reclaims

are

received

by

the

Fund

and

the

Fund

previously

passed

foreign

tax

credit

on

to

its

shareholders,

the

Fund

will

enter

into

a

closing

agreement

with

the

Internal

Revenue

Service

(IRS)

in

order

to

pay

the

associated

tax

liability

on

behalf

of

the

Fund’s

shareholders.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Dividend

income

and

capital

gain

distributions

are

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Income

and

Deferred

Taxes

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TG-22

Semiannual

Report

Templeton

Growth

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

36,955

$419,052

93,336

$1,113,724

Shares

issued

in

reinvestment

of

distributions

..........

16,938

172,934

98,763

1,223,678

Shares

redeemed

in-kind

(Note

10

)

..................

—

—

(4,433,957)

(53,015,936)

Shares

redeemed

...............................

(242,610)

(2,712,394)

(550,857)

(6,597,153)

Net

increase

(decrease)

..........................

(188,717)

$(2,120,408)

(4,792,715)

$(57,275,687)

Class

2

Shares:

Shares

sold

...................................

498,477

$5,501,558

1,548,646

$18,105,277

Shares

issued

in

reinvestment

of

distributions

..........

54,657

546,571

541,960

6,568,551

Shares

redeemed

in-kind

(Note

10

)

..................

—

—

(13,894,850)

(162,512,778)

Shares

redeemed

...............................

(2,287,199)

(25,001,864)

(7,320,737)

(85,248,883)

Net

increase

(decrease)

..........................

(1,734,065)

$(18,953,735)

(19,124,981)

$(223,087,833)

Class

4

Shares:

Shares

sold

...................................

88,550

$972,803

73,213

$870,473

Shares

issued

in

reinvestment

of

distributions

..........

1,747

17,767

17,642

217,527

Shares

redeemed

...............................

(135,472)

(1,499,355)

(307,061)

(3,644,253)

Net

increase

(decrease)

..........................

(45,175)

$(508,785)

(216,206)

$(2,556,253)

Subsidiary

Affiliation

Templeton

Global

Advisors

Limited

(Global

Advisors)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TG-23

Semiannual

Report

Templeton

Growth

VIP

Fund

(continued)

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Global

Advisors

based

on

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was 0.881%

of

the

Fund’s

average daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Global

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Global

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

2

and

Class

4

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

0.35%

per

year

of

its

average

daily

net

assets

of

each

class.

The

Board

has

agreed

to

limit

the

current

rate

to

0.25%

per

year

for

Class

2.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rate,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

e.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Annualized

Fee

Rate

Net

Assets

1.000%

Up

to

and

including

$100

million

0.900%

Over

$100

million,

up

to

and

including

$250

million

0.800%

Over

$250

million,

up

to

and

including

$500

million

0.750%

Over

$500

million,

up

to

and

including

$1

billion

0.700%

Over

$1

billion,

up

to

and

including

$5

billion

0.675%

Over

$5

billion,

up

to

and

including

$10

billion

0.655%

Over

$10

billion,

up

to

and

including

$15

billion

0.635%

Over

$15

billion,

up

to

and

including

$20

billion

0.615%

In

excess

of

$20

billion

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TG-24

Semiannual

Report

Templeton

Growth

VIP

Fund

(continued)

f.

Waiver

and

Expense

Reimbursements

Effective

May

1,

2022,

Global

Advisors

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Fund

so

that

the

operating expenses

(excluding

distribution

fees and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

and

acquired

fund

fees

and

expenses for

each

class

of

the

Fund

do not

exceed

0.87%,

based

on

the

average

net

assets

of

each

class

until

April

30,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund's

fiscal

year

end.

4.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2021,

the

capital

loss

carryforwards

were

as

follows:

At

June

30,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

foreign

currency

transactions,

EU

reclaims

and

gains

realized

on

in-kind

shareholder

redemptions.

5.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities) for

the

period

ended

June

30,

2022,

aggregated

$81,551,899 

and

$92,219,589,

respectively.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Templeton

Growth

VIP

Fund

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$—

$20,303,977

$(17,217,755)

$—

$—

$3,086,222

3,086,222

$2,011

Total

Affiliated

Securities

...

$—

$20,303,977

$(17,217,755)

$—

$—

$3,086,222

$2,011

Capital

loss

carryforwards

not

subject

to

expiration:

Long

term

................................................................................

$

23,594,627

Cost

of

investments

..........................................................................

$379,632,688

Unrealized

appreciation

........................................................................

$46,055,760

Unrealized

depreciation

........................................................................

(48,756,557)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(2,700,797)

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TG-25

Semiannual

Report

Templeton

Growth

VIP

Fund

(continued)

At

June

30,

2022,

in

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received $3,086,222 of

cash

collateral. The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Statement

of

Assets

and

Liabilities.

The

agreements

can

be

terminated

at

any

time.

6.

Concentration

of

Risk

Investing

in

foreign

securities

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities,

such

as

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

Political

and

financial

uncertainty

in

many

foreign

regions

may

increase

market

volatility

and

the

economic

risk

of

investing

in

foreign

securities.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

7.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

8.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

9.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

10.

Redemption

In-Kind

During

the

year

ended

December

31,

2021,

the

Fund

realized

$43,506,810

of

net

gains

resulting

from

redemptions

in-kind

in

which

a

shareholder

redeemed

fund

shares

for

cash

and

securities

held

by

the

Fund.

Because

such

gains

are

not

taxable

to

the

Fund

and

are

not

distributed

to

remaining

shareholders,

they

are

reclassified

from

accumulated

net

realized

gains

to

paid-

in

capital.

5.

Investment

Transactions

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TG-26

Semiannual

Report

Templeton

Growth

VIP

Fund

(continued)

11.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Templeton

Growth

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

—

$

12,174,212

$

—

$

12,174,212

Airlines

..............................

—

3,014,750

—

3,014,750

Auto

Components

......................

4,053,406

4,621,429

—

8,674,835

Automobiles

..........................

—

4,544,312

—

4,544,312

Banks

...............................

2,186,135

2,102,984

—

4,289,119

Beverages

...........................

—

13,532,085

—

13,532,085

Biotechnology

.........................

11,259,864

—

—

11,259,864

Chemicals

...........................

12,008,285

—

—

12,008,285

Consumer

Finance

.....................

4,334,647

—

—

4,334,647

Containers

&

Packaging

.................

5,145,022

—

—

5,145,022

Electric

Utilities

........................

3,930,607

—

—

3,930,607

Electrical

Equipment

....................

—

1,293,491

—

1,293,491

Entertainment

.........................

7,967,738

—

—

7,967,738

Food

Products

........................

—

6,882,732

—

6,882,732

Health

Care

Equipment

&

Supplies

.........

15,484,400

—

—

15,484,400

Health

Care

Providers

&

Services

..........

14,484,765

5,984,242

—

20,469,007

Hotels,

Restaurants

&

Leisure

.............

14,737,993

4,353,869

—

19,091,862

Household

Durables

....................

—

6,629,263

—

6,629,263

Industrial

Conglomerates

................

4,412,341

4,722,504

—

9,134,845

Insurance

............................

—

7,942,812

—

7,942,812

Interactive

Media

&

Services

..............

3,824,601

—

—

3,824,601

Internet

&

Direct

Marketing

Retail

..........

1,935,972

2,409,822

—

4,345,794

IT

Services

...........................

13,175,671

3,915,534

—

17,091,205

Life

Sciences

Tools

&

Services

............

1,383,196

—

—

1,383,196

Machinery

............................

5,959,583

5,923,290

—

11,882,873

Media

...............................

9,849,709

—

—

9,849,709

Multiline

Retail

........................

8,071,004

—

—

8,071,004

Multi-Utilities

..........................

—

1,834,913

—

1,834,913

Oil,

Gas

&

Consumable

Fuels

.............

6,562,577

12,903,147

—

19,465,724

Personal

Products

.....................

—

8,633,549

—

8,633,549

Pharmaceuticals

.......................

8,993,012

29,042,093

—

38,035,105

Professional

Services

...................

—

2,134,626

—

2,134,626

Semiconductors

&

Semiconductor

Equipment

.

8,997,249

4,830,381

—

13,827,630

Specialty

Retail

........................

7,676,806

4,219,314

—

11,896,120

Technology

Hardware,

Storage

&

Peripherals

.

—

8,699,276

—

8,699,276

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

TG-27

Semiannual

Report

Templeton

Growth

VIP

Fund

(continued)

12.

New

Accounting

Pronouncements

In June

2022,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

13.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

Level

1

Level

2

Level

3

Total

Templeton

Growth

VIP

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Wireless

Telecommunication

Services

.......

$

7,766,456

$

—

$

—

$

7,766,456

Short

Term

Investments

...................

3,086,222

27,300,000

—

30,386,222

Total

Investments

in

Securities

...........

$187,287,261

$189,644,630

a

$—

$376,931,891

a

Includes

foreign

securities

valued

at

$162,344,630,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

Selected

Portfolio

ADR

American

Depositary

Receipt

11.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Index

Descriptions

I-1

Semiannual

Report

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

For

Russell

Indexes:

Frank

Russell

Company

is

the

source

and

owner

of

the

trademarks,

service

marks

and

copyrights

related

to

the

Russell

Indexes.

Russell

®

is

a

trademark

of

Frank

Russell

Company.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Bloomberg

1-3

Month

U.S.

Treasury

Bill

Index

measures

the

performance

of

U.S.

Treasury

bills

that

have

a

remaining

maturity

of

greater

than

or

equal

to

one

month

and

less

than

three

months.

Treasuries,

if

held

to

maturity,

offer

a

fixed

rate

of

return

and

a

fixed

principal

value;

their

interest

payments

and

principal

are

guaranteed.

Bloomberg

U.S.

Aggregate

Bond

Index

measures

the

performance

of

the

investment-grade,

U.S.

dollar-

denominated,

fixed-rate

taxable

bond

market.

The

index

includes

Treasuries,

government-related

and

corporate

securities,

mortgage-backed

securities

(agency

fixed-

rate

and

hybrid

adjustable-rate

mortgage

pass-throughs),

asset-backed

securities

and

commercial

mortgage-backed

securities

(agency

and

nonagency).

Bloomberg

U.S.

Corporate

Bond

Index

measures

the

performance

of

the

investment-grade,

fixed-rate,

taxable

corporate

bond

market.

It

includes

U.S.

dollar-denominated

securities

publicly

issued

by

U.S.

and

non-U.S.

industrial,

utility

and

financial

issuers.

Bloomberg

U.S.

Corporate

High

Yield

Bond

Index

measures

the

performance

of

the

U.S.

dollar-denominated,

high-yield,

fixed-rate

corporate

bond

market.

Securities

are

classified

as

high

yield

if

the

middle

rating

of

Moody’s,

Fitch

and

Standard

&

Poor’s

is

Ba1/BB+/BB+

or

below.

Bonds

from

issuers

with

an

emerging

markets

(EM)

country

of

risk,

based

on

Bloomberg

EM

country

definition,

are

excluded.

Bloomberg

U.S.

Government

-

Intermediate

Index

is

the

intermediate

component

of

the

Bloomberg

U.S.

Government

Index,

which

includes

U.S.

dollar-denominated,

fixed-rate,

nominal

U.S.

Treasuries

and

U.S.

agency

debentures

(securities

issued

by

U.S.

government-owned

or

government-sponsored

entities,

and

debt

explicitly

guaranteed

by

the

U.S.

government).

Bloomberg

U.S.

High

Yield

Very

Liquid

Index

is

a

component

of

the

U.S.

Corporate

High

Yield

Index

that

is

designed

to

track

a

more

liquid

component

of

the

U.S.

dollar-

denominated,

high-yield,

fixed-rate

corporate

bond

market.

Bloomberg

U.S.

Mortgage-Backed

Securities

(MBS)

Index

tracks

the

performance

of

fixed-rate

agency

mortgage-

backed

pass-through

securities

guaranteed

by

Ginnie

Mae

(GNMA),

Fannie

Mae

(FNMA)

and

Freddie

Mac

(FHLMC).

Effective

June

1,

2017,

hybrid

adjustable-rate

mortgages

were

removed

from

the

index.

Bloomberg

U.S.

Treasury

Index

measures

the

performance

of

U.S.

dollar-denominated,

fixed-rate,

nominal

debt

issued

by

the

U.S.

Treasury

with

at

least

one

year

until

final

maturity.

Treasuries,

if

held

to

maturity,

offer

a

fixed

rate

of

return

and

a

fixed

principal

value;

their

interest

payments

and

principal

are

guaranteed.

FTSE

®

EPRA

®

/NAREIT

®

Developed

Index

is

a

free

float-

adjusted

index

designed

to

measure

the

performance

of

publicly

traded

real

estate

securities

in

the

North

American,

European

and

Asian

real

estate

markets.

FTSE

World

Government

Bond

Index

measures

the

performance

of

fixed-rate,

local

currency,

investment-grade

sovereign

bonds

and

is

stated

in

U.S.

dollar

terms.

J.P.

Morgan

(JPM)

Global

Government

Bond

Index

(GGBI)

tracks

total

returns

for

liquid,

fixed-rate,

domestic

government

bonds

with

maturities

greater

than

one

year

issued

by

developed

countries

globally.

MSCI

All

Country

Asia

Index-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

developed

and

emerging

markets

in

Asia.

MSCI

All

Country

World

Index

(ACWI)-NR

is

a

free

float-

adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Franklin

Templeton

Variable

Insurance

Products

Trust

Index

Descriptions

I-2

Semiannual

Report

MSCI

All

Country

World

Index

(ACWI)

ex

USA

Index-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets,

excluding

the

U.S.

MSCI

Emerging

Markets

(EM)

Index-NR

is

a

free

float-

adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

emerging

markets.

MSCI

Europe

Index-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

developed

markets

in

Europe.

MSCI

USA

High

Dividend

Yield

Index

is

based

on

the

MSCI

USA

Index,

its

parent

index,

and

includes

large-

and

mid-capitalization

stocks.

The

index

is

designed

to

reflect

the

performance

of

equities

in

the

parent

index

(excluding

real

estate

investment

trusts)

with

higher

dividend

income

and

quality

characteristics

than

average

dividend

yields

that

are

both

sustainable

and

persistent.

MSCI

USA

Index

is

designed

to

measure

the

performance

of

the

large-

and

mid-capitalization

segments

of

the

U.S.

market.

With

627

constituents,

the

index

covers

approximately

85%

of

the

free

float

adjusted

market

capitalization

in

the

U.S.

MSCI

World

ex

USA

Index-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

markets,

excluding

the

U.S.

MSCI

World

Value

Index-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

performance

of

stocks

exhibiting

overall

value

style

characteristics

in

global

developed

markets.

Russell

1000

®

Growth

Index

is

market

capitalization

weighted

and

measures

the

performance

of

those

Russell

1000

®

Index

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

rates.

Russell

1000

®

Index

is

market

capitalization

weighted

and

measures

the

performance

of

the

approximately

1,000

largest

companies

in

the

Russell

3000

®

Index,

which

represents

the

majority

of

the

U.S.

market’s

total

capitalization.

Russell

1000

®

Value

Index

is

market

capitalization

weighted

and

measures

the

performance

of

those

Russell

1000

®

Index

companies

with

relatively

lower

price-to-book

ratios

and

lower

forecasted

growth

rates.

Russell

2000

®

Index

is

market

capitalization

weighted

and

measures

the

performance

of

the

approximately

2,000

smallest

companies

in

the

Russell

3000

®

Index

that

represent

a

small

amount

of

the

total

market

capitalization

of

the

Russell

3000

®

Index.

Russell

2000

®

Value

Index

is

market

capitalization

weighted

and

measures

the

performance

of

those

Russell

2000

®

Index

companies

with

relatively

lower

price-to-book

ratios

and

lower

forecasted

growth

rates.

Russell

2500

TM

Index

is

market

capitalization

weighted

and

measures

the

performance

of

the

approximately

2,500

smallest

companies

in

the

Russell

3000

®

Index

that

represent

a

modest

amount

of

the

Russell

3000

®

Index’s

total

market

capitalization.

Russell

3000

®

Index

is

market

capitalization

weighted

and

measures

the

performance

of

the

largest

3,000

U.S.

companies

representing

the

majority

of

the

U.S.

market’s

total

capitalization.

Russell

Midcap

®

Growth

Index

is

market

capitalization

weighted

and

measures

the

performance

of

those

Russell

Midcap

®

Index

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

rates.

Russell

Midcap

®

Index

is

market

capitalization

weighted

and

measures

the

performance

of

the

approximately

800

smallest

companies

in

the

Russell

1000

®

Index

that

represent

a

modest

amount

of

the

Russell

1000

®

Index’s

total

market

capitalization.

Standard

&

Poor’s

®

500

Index

(S&P

500

®

)

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-1

Semiannual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

TEMPLETON

VARIABLE

INSURANCE

PRODUCTS

TRUST

Franklin

Allocation

VIP

Fund

Franklin

DynaTech

VIP

Fund

Franklin

Global

Real

Estate

VIP

Fund

Franklin

Growth

and

Income

VIP

Fund

Franklin

Income

VIP

Fund

Franklin

Large

Cap

Growth

VIP

Fund

Franklin

Mutual

Global

Discovery

VIP

Fund

Franklin

Mutual

Shares

VIP

Fund

Franklin

Rising

Dividends

VIP

Fund

Franklin

Small

Cap

Value

VIP

Fund

Franklin

Small-Mid

Cap

Growth

VIP

Fund

Franklin

Strategic

Income

VIP

Fund

Franklin

U.S.

Government

Securities

VIP

Fund

Franklin

VolSmart

Allocation

VIP

Fund

Templeton

Developing

Markets

VIP

Fund

Templeton

Foreign

VIP

Fund

Templeton

Global

Bond

VIP

Fund

Templeton

Growth

VIP

Fund

(each

a

Fund)

At

an

in-person

meeting

held

on

April

12,

2022

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Templeton

Variable

Insurance

Products

Trust

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

(i)

investment

management

agreement

between

Franklin

Advisers,

Inc.

(FAV)

and

the

Trust,

on

behalf

of

each

of

Franklin

Allocation

VIP

Fund,

Franklin

DynaTech

Growth

VIP

Fund,

Franklin

Growth

and

Income

VIP

Fund,

Franklin

Income

VIP

Fund,

Franklin

Large

Cap

Growth

VIP

Fund,

Franklin

Rising

Dividends

VIP

Fund,

Franklin

Small-Mid

Cap

Growth

VIP

Fund,

Franklin

Strategic

Income

VIP

Fund,

Franklin

U.S.

Government

Securities

VIP

Fund,

Franklin

VolSmart

Allocation

VIP

Fund,

and

Templeton

Global

Bond

VIP

Fund;

(ii)

the

investment

sub-advisory

agreement

between

FAV

and

Franklin

Templeton

Institutional,

LLC

(FTIL),

an

affiliate

of

FAV,

on

behalf

of

Franklin

Allocation

VIP

Fund;

(iii)

the

investment

sub-advisory

agreement

between

FAV

and

Templeton

Global

Advisors

Limited

(TGAL),

an

affiliate

of

FAV,

on

behalf

of

Franklin

Allocation

VIP

Fund;

(iv)

the

investment

sub-advisory

agreement

between

FAV

and

Brandywine

Global

Investment

Management,

LLC

(BGIM),

an

affiliate

of

FAV,

on

behalf

of

Franklin

Allocation

VIP

Fund;

(v)

the

investment

sub-advisory

agreement

between

FAV

and

ClearBridge

Investments,

LLC

(CIL),

an

affiliate

of

FAV,

on

behalf

of

Franklin

Allocation

VIP

Fund;

(vi)

the

investment

sub-advisory

agreement

between

FAV

and

Western

Asset

Management

Company,

LLC

(WAMC),

an

affiliate

of

FAV,

on

behalf

of

Franklin

Allocation

VIP

Fund;

(vii)

the

investment

sub-advisory

agreement

between

FAV

and

Western

Asset

Management

Company

Limited

(WAMCL),

an

affiliate

of

FAV,

on

behalf

of

Franklin

Allocation

VIP

Fund;

(viii)

the

investment

management

agreement

between

FTIL

and

the

Trust,

on

behalf

of

Franklin

Global

Real

Estate

VIP

Fund;

(ix)

the

investment

management

agreement

between

Franklin

Mutual

Advisers,

LLC

(FMA)

and

the

Trust,

on

behalf

of

each

of

Franklin

Mutual

Global

Discovery

VIP

Fund,

Franklin

Mutual

Shares

VIP

Fund

and

Franklin

Small

Cap

Value

VIP

Fund;

(x)

the

investment

management

agreement

between

Templeton

Asset

Management

Ltd.

(TAML)

and

the

Trust,

on

behalf

of

Templeton

Developing

Markets

VIP

Fund;

(xi)

the

investment

sub-advisory

agreement

between

TAML

and

Franklin

Templeton

Investment

Management

Ltd.

(FTIML),

on

behalf

of

Templeton

Developing

Markets

VIP

Fund;

(xii)

the

investment

management

agreement

between

Templeton

Investment

Counsel,

LLC

(TICL)

and

the

Trust,

on

behalf

of

Templeton

Foreign

VIP

Fund;

and

(xiii)

the

investment

management

agreement

between

TGAL

and

the

Trust,

on

behalf

of

Templeton

Growth

VIP

Fund

(each

a

Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

each

Management

Agreement.

Although

the

Management

Agreements

for

the

Funds

were

considered

at

the

same

Board

meeting,

the

Board

considered

the

information

provided

to

it

about

the

Funds

together

and

with

respect

to

each

Fund

separately

as

the

Board

deemed

appropriate.

BGIM,

CIL,

FAV,

FTIL,

FTIML,

FMA,

TAML,

TICL,

TGAL,

WAMC

and

WAMCL

are

each

referred

to

herein

as

a

Manager.

In

considering

the

continuation

of

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

each

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

each

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

virtual

contract

renewal

meeting

at

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters;

and

then

met

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-2

Semiannual

Report

with

management

to

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

at

the

Meeting.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

each

Manager;

(ii)

the

investment

performance

of

each

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

each

Manager

and

its

affiliates

from

the

relationship

with

each

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

each

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

each

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

each

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

Management

Agreement

is

in

the

best

interests

of

the

applicable

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

each

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

each

Manager;

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

each

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

each

Manager

and

its

affiliates;

and

management

fees

charged

by

each

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Funds

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements,

which

included

discussion

of

the

changing

distribution

landscape

for

the

Funds.

The

Board

acknowledged

the

ongoing

integration

of

the

Legg

Mason

family

of

funds

into

the

FT

family

of

funds

and

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

recent

geopolitical

concerns.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Managers’

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Funds

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

being

a

global

leader

in

stewardship

and

sustainability

and

the

recent

addition

of

a

senior

executive

focused

on

environmental,

social

and

governance

and

climate

control

initiatives.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

each

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

each

Fund

over

various

time

periods

ended

January

31,

2022.

The

Board

considered

the

performance

returns

for

each

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

each

Fund’s

performance

results

is

below.

Franklin

Allocation

VIP

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

mixed-asset

target

allocation

growth

funds

underlying

variable

insurance

products

(VIPs).

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

discussed

the

Fund’s

performance

with

management

and

management

explained

that

the

Fund

maintains

a

strategic

equity

asset

allocation

that

is

on

the

lower

end

of

its

peers

that

comprise

the

Performance

Universe,

which

has

negatively

impacted

the

Fund’s

relative

returns

in

a

risk-on

market

environment

in

recent

years.

Management

reminded

the

Board

that,

effective

May

1,

2019,

the

Fund

was

repositioned

to

a

direct

investment

fund

with

an

actively

managed

allocation

strategy

which

is

not

reflected

in

the

Fund’s

longer-term

performance.

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-3

Semiannual

Report

Management

then

discussed

with

the

Board

the

actions

that

are

being

taken

in

an

effort

to

address

the

sources

of

the

Fund’s

underperformance,

including

enhancements

made

to

the

Fund’s

investment

strategies.

The

Board

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

Income

VIP

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

flexible

portfolio

funds

underlying

VIPs.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

three-

and

five-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

considered

the

income-related

attributes

of

the

Fund

(such

as

a

fund’s

investment

objective

and/or

investment

strategy)

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

the

Fund’s

income-related

attributes

and

investor

expectations.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Strategic

Income

VIP

Fund

and

Franklin

U.S.

Government

Securities

VIP

Fund

-

The

Performance

Universe

for

the

Franklin

Strategic

Income

VIP

Fund

included

the

Fund

and

all

multi-sector

income

funds

underlying

VIPs.

The

Performance

Universe

for

the

Franklin

U.S.

Government

Securities

VIP

Fund

included

the

Fund

and

all

intermediate

US

government

funds

underlying

VIPs.

The

Board

noted

that

each

Fund’s

annualized

income

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

median

of

its

respective

Performance

Universe.

The

Board

also

noted

that

each

Fund’s

annualized

total

return

for

the

three-,

five-

and

10-year

periods

was

below

the

median

of

its

respective

Performance

Universe,

but

for

the

one-year

period

was

above

the

median

of

the

Fund’s

respective

Performance

Universe.

The

Board

further

noted

the

Franklin

U.S.

Government

Securities

VIP

Fund’s

conservative

policy

of

investing

substantially

all

of

its

assets

in

Ginnie

Mae

obligations.

The

Board

considered

the

income-related

attributes

of

each

Fund

(such

as

a

fund’s

investment

objective

and/or

investment

strategy)

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

the

Fund’s

income-

related

attributes

and

investor

expectations.

The

Board

concluded

that

each

Fund’s

performance

was

satisfactory.

Templeton

Global

Bond

VIP

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

global

income

funds

underlying

VIPs.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

one-year

period

was

below

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

three-,

five-,

and

10-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

one-year

period

was

equal

to

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

the

Fund’s

relative

underperformance

in

comparison

to

its

Performance

Universe

over

the

three-

and

five-year

reporting

periods

was

largely

due

to

the

Fund’s

performance

in

2019

and

2020.

Management

further

explained

that

the

underperformance

was

driven

by

the

Fund’s

defensive

positioning

amid

the

pandemic,

which

restrained

the

Fund’s

participation

in

the

risk

asset

rallies

in

the

second

half

of

2020.

Management

also

explained

that

the

Fund’s

long

exposure

to

emerging

market

local

currency

assets

and

short

exposure

to

US

Treasury

duration

during

the

three-

and

five-year

reporting

periods

detracted

from

the

Fund’s

relative

performance

versus

the

Performance

Universe.

Management

further

explained

that

after

vaccines

were

approved

toward

the

end

of

2020

management

significantly

repositioned

the

Fund’s

strategies

back

towards

risk

allocations

and

expanded

on

that

risk

positioning

throughout

2021,

emphasizing

specific

currencies

against

the

US

dollar

and

the

euro,

as

well

as

local

currency

bonds

in

a

select

set

of

emerging

markets.

Management

further

explained

the

steps

the

portfolio

management

team

is

taking

in

an

effort

to

improve

the

Fund’s

peer

rankings

across

all

reporting

periods

and

reduce

the

impact

of

the

Fund’s

relative

underperformance

in

2019

and

2020.

The

Board

noted

management’s

continued

confidence

in

the

Fund’s

portfolio

management

team,

commitment

to

an

enhanced

investment

process

for

the

benefit

of

Fund

shareholders

and

commitment

to

have

ongoing

conversations

with

the

Board

regarding

management’s

strategies

for

addressing

the

performance

of

the

global

macro

funds

as

a

whole.

Based

on

the

foregoing,

the

Board

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

that

management’s

efforts

and

the

recent

improved

performance

of

the

Fund

should

continue

to

be

closely

monitored.

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-4

Semiannual

Report

Franklin

Growth

and

Income

VIP

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

equity

income

funds

underlying

VIPs.

The

Board

noted

that

the

Fund’s

annualized

income

return

and

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

were

above

the

medians

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

DynaTech

VIP

Fund,

Franklin

Mutual

Shares

VIP

Fund,

Templeton

Foreign

VIP

Fund

and

Templeton

Growth

VIP

Fund

-

The

Performance

Universe

for

the

Franklin

DynaTech

VIP

Fund

included

the

Fund

and

all

large-cap

growth

funds

underlying

VIPs.

The

Performance

Universe

for

the

Franklin

Mutual

Shares

VIP

Fund

included

the

Fund

and

all

multi-cap

value

funds

underlying

VIPs.

The

Performance

Universe

for

the

Templeton

Foreign

VIP

Fund

included

the

Fund

and

all

international

multi-cap

value

funds

underlying

VIPs.

The

Performance

Universe

for

the

Templeton

Growth

VIP

Fund

included

the

Fund

and

all

global

multi-cap

value

funds

underlying

VIPs.

The

Board

noted

that

each

Fund’s

annualized

total

return

for

the

one-,

three-,

five

and

10-year

periods

was

below

the

median

of

its

respective

Performance

Universe.

The

Board

further

noted

that,

effective

May

1,

2021,

the

Franklin

DynaTech

VIP

Fund

changed

its

name,

investment

strategy,

and

primary

benchmark

to

align

with

the

Franklin

DynaTech

Fund

and

that

it

would

need

more

time

to

assess

the

implication

of

these

changes

on

Fund

performance.

The

Board

also

noted

management’s

explanation

that

the

Franklin

Mutual

Shares

VIP

Fund’s

underperformance

in

2017

was

material

and

continues

to

adversely

impact

the

Fund’s

ranking

over

longer-term

periods.

Management

reminded

the

Board

of

the

primary

factors

that

impacted

the

2017

performance,

including,

among

factors,

exposure

to

non-US

equities

and

stock

selection.

Management

explained

that

the

Fund

has

a

more

value

oriented

tilt

and

underweight

position

in

US

securities

as

compared

to

its

Performance

Universe,

both

of

which

detracted

from

the

Fund’s

relative

performance

during

a

period

of

historic

and

sustained

outperformance

of

growth

over

value.

Management

further

explained

that

key

detractors

from

the

Fund’s

three-year

performance

included

the

Fund’s

stock

selection

in

the

financials

and

industrials

sectors

and

the

Fund’s

underweight

position

in

the

industrials

sector.

Management

reviewed

with

the

Board

ongoing

enhancements

to

the

Fund’s

investment

team

and

processes

in

an

effort

to

improve

performance.

The

Board

discussed

Templeton

Foreign

VIP

Fund’s

performance

with

management

and

management

explained

the

Fund’s

relative

performance

over

the

reporting

periods

was

negatively

impacted

by

the

Fund’s

overweight

positions

in

cash

and

the

information

technology

and

energy

sectors,

and

underweight

positions

in

the

financials,

consumer

staples

and

communication

services

sectors

as

compared

to

the

Performance

Universe.

Management

then

noted

that

the

Fund

outperformed

its

benchmark,

the

MSCI

All

Country

World

ex-US

Index-NR,

for

the

one-year

period,

more

than

doubling

the

gains

of

the

index.

Management

discussed

with

the

Board

the

actions

that

are

being

taken

in

an

effort

to

improve

the

performance

of

the

Fund

and

the

global

equity

funds

as

a

whole.

Management

specifically

highlighted

the

strategic

initiatives

being

undertaken

in

the

Templeton

Global

Equity

Group,

including

enhancements

to

the

leadership

of

the

group

and

the

commitment

of

additional

resources

important

to

delivering

sustainable

returns.

The

Board

discussed

Templeton

Growth

VIP

Fund’s

performance

with

management

and

management

explained

that

the

Fund’s

relative

performance

over

the

reporting

periods

was

negatively

impacted

by

the

Fund’s

overweight

positions

in

cash

and

the

consumer

discretionary

sector

and

underweight

position

in

the

financials

sector

as

compared

to

the

Performance

Universe.

Management

also

explained

that

the

Fund’s

one-year

relative

underperformance

was

primarily

attributable

to

stock-specific

weakness

and

underweight

allocations

in

the

US

market

and

the

information

technology

sector.

Management

then

discussed

with

the

Board

the

actions

that

are

being

taken

in

an

effort

to

improve

the

performance

of

the

Fund

and

the

global

equity

funds

as

a

whole.

Management

specifically

highlighted

the

strategic

initiatives

being

undertaken

in

the

Templeton

Global

Equity

Group,

including

enhancements

to

the

leadership

of

the

group

and

the

commitment

of

additional

resources

important

to

delivering

sustainable

returns.

The

Board

concluded

that

the

Funds’

Management

Agreements

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

Global

Real

Estate

VIP

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

global

real

estate

funds

underlying

VIPs.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

10-

year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

three-

and

five-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

further

noted

that,

while

below

the

median,

the

Fund’s

three-

and

five-year

annualized

total

returns

were

7.98%

and

7.55%,

respectively.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-5

Semiannual

Report

Franklin

Large

Cap

Growth

VIP

Fund

-

The

Performance

Universe

for

the

Franklin

Large

Cap

Growth

VIP

Fund

included

the

Fund

and

all

multi-cap

growth

funds

underlying

VIPs.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-

and

five-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

10-year

period

was

below

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Templeton

Developing

Markets

VIP

Fund

and

Franklin

Small

Cap

Value

VIP

Fund

-

The

Performance

Universe

for

the

Templeton

Developing

Markets

VIP

Fund

included

the

Fund

and

all

emerging

markets

funds

underlying

VIPs.

The

Performance

Universe

for

the

Franklin

Small

Cap

Value

VIP

Fund

included

the

Fund

and

all

small-cap

value

funds

underlying

VIPs.

The

Board

noted

that

each

Fund’s

annualized

total

return

for

the

three-,

five

and

10-year

periods

was

above

the

median

of

its

respective

Performance

Universe,

but

for

the

one-year

period

was

below

the

median

of

its

respective

Performance

Universe

(noting

the

one-year

annualized

total

return

for

the

Franklin

Small

Cap

Value

VIP

Fund

exceeded

20%).

The

Board

concluded

that

each

Fund’s

performance

was

satisfactory.

Franklin

Mutual

Global

Discovery

VIP

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

global

multi-cap

value

funds

underlying

VIPs.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

five-year

period

was

below

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Rising

Dividends

VIP

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

large-cap

core

funds

underlying

VIPs.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

three-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

further

noted

that,

while

below

the

median,

the

Fund’s

five-

and

10-year

annualized

total

returns

were

15.42%

and

13.68%,

respectively.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

VolSmart

Allocation

VIP

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

flexible

portfolio

funds

underlying

VIPs.

The

Board

noted

that

the

Fund

incepted

on

April

1,

2013

and

has

been

in

operation

for

less

than

10

years.

The

Board

further

noted

that

its

annualized

total

return

for

the

one-,

three-

and

five-year

periods

was

above

the

median

and

in

the

first

quintile

(best)

of

its

Performance

Universe.

The

Board

also

noted

that

its

annualized

income

return

for

the

one-

and

three-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

five-year

period

was

below

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Small-Mid

Cap

Growth

VIP

Fund

–

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

mid-cap

growth

funds

underlying

VIPs.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

three-

and

five-year

periods

was

above

the

median

of

its

Performance

Universe

and

exceeded

16.35%.

The

Board

concluded

that

the

Fund’s

performance

was

acceptable.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

each

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

each

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

or

semi-annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

Franklin

Allocation

VIP

Fund,

Franklin

Growth

and

Income

VIP

Fund,

Franklin

Income

VIP

Fund,

Franklin

Small

Cap

Value

VIP

Fund,

Templeton

Global

Bond

VIP

Fund,

Franklin

DynaTech

VIP

Fund,

Franklin

Rising

Dividends

VIP

Fund

and

Franklin

Small-Mid

Cap

Growth

VIP

Fund

–

The

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-6

Semiannual

Report

Expense

Group

for

the

Franklin

Allocation

VIP

Fund

included

the

Fund

and

10

other

mixed-asset

target

allocation

growth

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Growth

and

Income

VIP

Fund

included

the

Fund

and

11

other

equity

income

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Income

VIP

Fund

included

the

Fund

and

11

other

flexible

portfolio

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Small

Cap

Value

VIP

Fund

included

the

Fund

and

eight

other

small-cap

value

funds

underlying

VIPs.

The

Expense

Group

for

the

Templeton

Global

Bond

VIP

Fund

included

the

Fund

and

10

other

global

income

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

DynaTech

VIP

Fund

included

the

Fund

and

12

other

large-cap

growth

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Rising

Dividends

VIP

Fund

included

the

Fund

and

11

other

large-cap

core

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Small-Mid

Cap

Growth

VIP

Fund

included

the

Fund

and

11

other

mid-cap

growth

funds

underlying

VIPs.

The

Board

noted

that

the

Management

Rate

and

actual

total

expense

ratio

for

each

Fund

were

below

the

medians

of

its

respective

Expense

Group.

The

Board

also

noted

that

the

Franklin

Allocation

VIP

Fund,

Franklin

DynaTech

VIP

Fund

and

Franklin

Growth

and

Income

VIP

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

further

noted

that

the

Franklin

Allocation

VIP

Fund’s

sub-advisers

are

paid

by

FAV

out

of

the

management

fee

FAV

receives

from

the

Fund

and

that

the

allocation

of

the

fee

between

FAV

and

each

sub-adviser

reflected

the

services

provided

by

each

to

the

Fund.

After

consideration

of

the

above,

the

Board

concluded

that

the

Management

Rate

charged

to

each

Fund

and

the

sub-advisory

fee

paid

to

each

sub-adviser

of

the

Franklin

Allocation

VIP

Fund

are

reasonable.

Franklin

U.S.

Government

Securities

VIP

Fund

-

The

Expense

Group

for

the

Fund

included

the

Fund,

three

other

intermediate

US

government

funds

underlying

VIPs

and

11

inflation-protected

bond

funds

underlying

VIPs.

The

Board

noted

that

the

Management

Rate

for

the

Fund

was

below

the

median

of

its

Expense

Group,

and

the

actual

total

expense

ratio

for

the

Fund

was

slightly

above

the

median

of

its

Expense

Group.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Franklin

Global

Real

Estate

VIP

Fund,

Franklin

Mutual

Global

Discovery

VIP

Fund,

Franklin

Mutual

Shares

VIP

Fund,

Templeton

Developing

Markets

VIP

Fund,

Templeton

Growth

VIP

Fund,

Templeton

Foreign

VIP

Fund,

Franklin

Large

Cap

Growth

VIP

Fund,

Franklin

VolSmart

Allocation

VIP

Fund

and

Franklin

Strategic

Income

VIP

Fund

–

The

Expense

Group

for

the

Franklin

Global

Real

Estate

VIP

Fund

included

the

Fund

and

seven

other

global

real

estate

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Mutual

Global

Discovery

VIP

Fund

included

the

Fund,

one

other

global

multi-cap

value

fund

underlying

VIPs,

two

global

multi-cap

core

funds

underlying

VIPs,

and

two

global

multi-cap

growth

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Mutual

Shares

VIP

Fund

included

the

Fund

and

12

other

multi-cap

value

funds

underlying

VIPs.

The

Expense

Group

for

the

Templeton

Developing

Markets

VIP

Fund

included

the

Fund

and

13

other

emerging

markets

funds

underlying

VIPs.

The

Expense

Group

for

the

Templeton

Growth

VIP

Fund

included

the

Fund,

one

other

global

multi-cap

value

fund

underlying

VIPs,

two

global

multi-

cap

core

funds

underlying

VIPs,

and

two

global

multi-cap

growth

funds

underlying

VIPs.

The

Expense

Group

for

the

Templeton

Foreign

VIP

Fund

included

the

Fund,

nine

other

international

multi-cap

value

funds

underlying

VIPs

and

four

international

large-cap

value

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Large

Cap

Growth

VIP

Fund

included

the

Fund

and

11

other

multi-cap

growth

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

VolSmart

Allocation

VIP

Fund

included

the

Fund,

three

other

flexible

portfolio

funds

underlying

VIPs,

and

three

mixed-

asset

target

allocation

growth

fund

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Strategic

Income

VIP

Fund

included

the

Fund

and

nine

other

multi-sector

income

funds

underlying

VIPs.

The

Board

noted

that

the

Management

Rate

and

actual

total

expense

ratio

for

each

Fund

were

above

the

median

of

its

respective

Expense

Group.

With

respect

to

the

Franklin

Mutual

Global

Discovery

VIP

Fund,

the

Board

noted

management’s

explanation

that

the

portfolio

management

team

makes

investments

in

the

debt

and

equity

of

distressed

companies

and

merger

arbitrage

securities

that

are

specialized

in

nature

and

therefore

require

additional

expertise

and

resources,

whereas

the

Fund’s

Expense

Group

generally

does

not

make

such

investments.

With

respect

to

the

Franklin

Large

Cap

Growth

VIP

Fund,

Franklin

Mutual

Shares

VIP

Fund,

Franklin

Strategic

Income

VIP

Fund

and

Templeton

Developing

Markets

VIP

Fund,

the

Board

noted

that

each

Fund’s

Management

Rate

and

actual

total

expense

ratio

were

less

than

5

basis

points

above

the

respective

median

of

the

Fund’s

Expense

Group.

With

respect

to

each

of

the

Templeton

Foreign

VIP

Fund

and

the

Templeton

Growth

VIP

Fund,

the

Board

noted

management’s

explanation

that

the

Expense

Group

for

each

Fund

is

not

directly

comparable

to

the

Fund

because

funds

that

comprise

the

Expense

Group

have

a

higher

allocation

to

domestic

equity

than

the

Fund.

Management

further

explained

that

when

each

Fund

is

compared

to

a

subset

of

its

Expense

Group

that

has

a

smaller

allocation

to

domestic

equity

similar

to

the

Fund,

the

Fund’s

actual

total

expense

ratio

is

more

aligned

with

peers.

The

Board

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-7

Semiannual

Report

discussed

with

management

the

expenses

of

both

of

these

Funds

and

management

agreed

to

implement

a

reduction

in

the

Management

Rate

for

the

Templeton

Foreign

VIP

Fund

and

implement

an

expense

cap

on

the

Templeton

Growth

VIP

Fund’s

actual

total

expense

ratio

of

0.87%,

effective

May

1,

2022.

The

Board

also

noted

that

the

Franklin

VolSmart

Allocation

VIP

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

further

noted

that

the

Templeton

Developing

Markets

VIP

Fund’s

sub-adviser

is

paid

by

TAML

out

of

the

management

fee

TAML

receives

from

the

Fund

and

that

the

allocation

of

the

fee

between

TAML

and

the

sub-adviser

reflected

the

services

provided

by

each

to

the

Fund.

After

consideration

of

the

above,

the

Board

concluded

that

the

Management

Rate

charged

to

each

Fund

and

the

sub-advisory

fee

paid

to

the

Templeton

Developing

Markets

VIP

Fund’s

sub-adviser

are

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

each

Manager

and

its

affiliates

in

connection

with

the

operation

of

each

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2021,

being

the

most

recent

fiscal

year-end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Funds’

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Funds’

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

each

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

each

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Managers

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Funds,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

each

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

each

Manager

and

its

affiliates

from

providing

services

to

each

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

each

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

each

Manager

may

realize

economies

of

scale,

if

any,

as

each

Fund

grows

larger

and

whether

each

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints

for

each

Fund

(except

for

the

Franklin

Allocation

VIP

Fund

and

the

Franklin

VolSmart

Allocation

VIP

Fund),

which

operate

generally

to

share

any

economies

of

scale

with

a

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

management’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

each

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

concluded

that

to

the

extent

economies

of

scale

may

be

realized

by

each

Manager

and

its

affiliates,

each

Fund’s

management

fee

structure

(except

for

the

Franklin

Allocation

VIP

Fund

and

the

Franklin

VolSmart

Allocation

VIP

Fund)

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

The

Board

recognized

that

there

would

not

likely

be

any

economies

of

scale

for

the

Franklin

DynaTech

VIP

Fund,

Franklin

Global

Real

Estate

VIP

Fund,

Franklin

Growth

and

Income

VIP

Fund,

Franklin

Large

Cap

Growth

VIP

Fund

and

Franklin

VolSmart

Allocation

VIP

Fund

until

each

Fund’s

assets

grow.

The

Board

also

recognized

that

given

the

decline

in

assets

over

the

past

three

calendar

years

for

each

of

the

Franklin

Income

VIP

Fund,

Franklin

Mutual

Shares

VIP

Fund,

Franklin

Strategic

Income

VIP

Fund,

Franklin

U.S.

Government

Securities

VIP

Fund,

Templeton

Global

Bond

VIP

Fund

and

Templeton

Growth

VIP

Fund,

these

Funds

are

not

expected

to

experience

additional

economies

of

scale

in

the

foreseeable

future.

The

Board

concluded

that

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-8

Semiannual

Report

to

the

extent

economies

of

scale

may

be

realized

by

each

Manager

and

its

affiliates,

each

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

each

Management

Agreement

for

an

additional

one-year

period.

Liquidity

Risk

Management

Program

Each

Fund

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

Franklin

Templeton

and

Legg

Mason

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Legal,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2022,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2021.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-9

Semiannual

Report

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

VIP1

S

08/22

©

2022

Franklin

Templeton

Investments.

All

rights

reserved.

Franklin

Templeton

Variable

Insurance

Products

Trust

(FTVIP)

shares

are

not

offered

to

the

public;

they

are

offered

and

sold

only

to:

(1)

insurance

company

separate

accounts

(Separate

Account)

to

serve

as

the

underlying

investment

vehicle

for

variable

contracts;

(2)

certain

qualified

plans;

and

(3)

other

mutual

funds

(funds

of

funds).

Authorized

for

distribution

to

investors

in

Separate

Accounts

only

when

accompanied

or

preceded

by

the

current

prospectus

for

the

applicable

contract,

which

includes

the

Separate

Account

and

the

FTVIP

prospectuses.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

The

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

Franklin

Templeton

Variable

Insurance

Products

Trust

Investment

Managers

Fund

Administrator

Distributor

Franklin

Advisers,

Inc.

Franklin

Mutual

Advisers,

LLC

Franklin

Templeton

Institutional,

LLC

Templeton

Asset

Management

Ltd.

Templeton

Global

Advisors

Limited

Templeton

Investment

Counsel,

LLC

Franklin

Templeton

Services,

LLC

Franklin

Distributors,

LLC

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4.

Principal Accountant Fees and Services.             N/A  

Item 5. Audit Committee

of Listed Registrants.             

N/A

Item 6. Schedule of Investments.                           

N/A

Item 7

. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.              N/A

Item 8

. Portfolio Managers of Closed-End Management Investment Companies.                                              N/A

Item 9

. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.       N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a) Evaluation

of Disclosure Controls and Procedures

.

The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b) Changes in Internal Controls.

  There have been no changes 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 internal control over financial reporting.

Item 12

. Disclosure of Securities Lending Activities for Closed-End    Management Investment Company.                       N/A

Item 13. Exhibits.

(a)(1) Code of Ethics

codeofethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section302

(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.

(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section906

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.

Franklin Templeton Variable Insurance Products Trust

By S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  August 26, 2022

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 S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  August 26, 2022

By S\CHRISTOPHER KINGS______________________

      Christopher Kings

      Chief Financial Officer, Chief Accounting Officer and Treasurer

Date  August 26, 2022