UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSR

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: 12/31/22

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

.

Annual

Report

Franklin

Templeton

Variable

Insurance

Products

Trust

December

31,

2022

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

MASTER

CLASS

-

4

Franklin

Templeton

Variable

Insurance

Products

Trust

Annual

Report

Table

of

Contents

Important

Notes

to

Performance

Information

...........

i

Fund

Summaries

Franklin

Allocation

VIP

Fund

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

FA-1

*Prospectus

Supplements

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

FA-7

Franklin

DynaTech

VIP

Fund

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

FD-1

*Prospectus

Supplement

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

FD-7

Franklin

Income

VIP

Fund

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

FI-1

*Prospectus

Supplement

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

FI-8

Franklin

Mutual

Global

Discovery

VIP

Fund

.........

MGD-1

Franklin

Mutual

Shares

VIP

Fund

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

MS-1

*Prospectus

Supplement

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

MS-8

Franklin

Rising

Dividends

VIP

Fund

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

FRD-1

*Prospectus

Supplements

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

FRD-7

Franklin

Small

Cap

Value

VIP

Fund

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

FSV-1

Franklin

Small-Mid

Cap

Growth

VIP

Fund

..........

FSC-1

*Prospectus

Supplement

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

FSC-7

Franklin

Strategic

Income

VIP

Fund

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

FSI-1

*Prospectus

Supplement

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

FSI-7

Templeton

Developing

Markets

VIP

Fund

..........

TD-1

*Prospectus

Supplement

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

TD-8

Templeton

Foreign

VIP

Fund

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

TF-1

*Prospectus

Supplement

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

TF-8

Templeton

Global

Bond

VIP

Fund

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

TGB-1

*Prospectus

Supplement

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

TGB-7

Templeton

Growth

VIP

Fund

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

TG-1

*Prospectus

Supplement

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

TG-8

Index

Descriptions

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

I-1

Board

Members

and

Officers

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

BOD-1

Shareholder

Information

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

SI-1

*Not

part

of

the

a

nnual

report.

Retain

for

your

records

.

i

Annual

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

Annual

Report

Franklin

Allocation

VIP

Fund

This

annual

report

for

Franklin

Allocation

VIP

Fund

covers

the

fiscal

year

ended

December

31,

2022

.

Class

4

Performance

Summary

as

of

December

31,

2022

Average

annual

total

return

of

Class

4

shares*

represents

the

average

annual

change

in

value,

assuming

reinvestment

of

dividends

and

capital

gains.

Average

returns

smooth

out

variations

in

returns,

which

can

be

significant;

they

are

not

the

same

as

year-by-year

results.

*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.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Performance

reflects

the

Fund’s

Class

4

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.

Share

Class

Average

Annual

Total

Return

–

4

1-Year

-16.19%

5-Year

+2.46%

10-Year

+5.44%

FA-2

Annual

Report

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

(12/31/12–

12/31/22

)

The

graph

below

shows

the

change

in

value

of

a

hypothetical

$10,000

investment

in

the

Fund

over

the

indicated

period

and

includes

reinvestment

of

any

income

or

distributions.

The

Fund’s

performance*

is

compared

to

the

performance

of

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

the

Bloomberg

U.S.

Aggregate

Bond

Index,

the

MSCI

World

ex

USA

Index-NR

and

the

Linked

Allocation

VIP

Fund

Benchmark.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Important

Notes

to

Performance

Information

preceding

the

Fund

Summaries.

**Source:

FactSet.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

***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.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

FA-3

Annual

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

investment

strategies

or

sleeves.

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

market

values

of

securities

or

other

investments

owned

by

the

Fund

will

go

up

or

down,

sometimes

rapidly

or

unpredictably.

The

market

value

of

a

security

or

other

investment

may

be

reduced

by

market

activity

or

other

results

of

supply

and

demand

unrelated

to

the

issuer.

Stock

prices

tend

to

go

up

and

down

more

dramatically

than

those

of

debt

securities.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues,

and

can,

therefore,

fall

dramatically

if

the

company

fails

to

meet

those

projections.

Investing

in

foreign

securities

typically

involves

more

risks

than

investing

in

U.S.

securities

due

to

political

and

economic

developments,

trading

practices,

availability

of

information,

and

other

factors.

Currency

management

strategies

may

substantially

change

the

Fund’s

exposure

to

currency

exchange

rates

and

could

result

in

losses

to

the

Fund

if

currencies

do

not

perform

as

the

investment

manager

expects.

Securities

issued

by

smaller

and

midsize

companies

may

be

more

volatile

in

price

than

those

of

larger

companies,

involve

substantial

risks

and

should

be

considered

speculative.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

one-year

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

benchmark,

the

Standard

&

Poor’s

500

®

Index

(S&P

500

®

),

posted

a

-18.11%

total

return.

1

The

Fund’s

other

benchmarks

performed

as

follows:

the

Bloomberg

U.S.

Aggregate

Bond

Index

posted

a

-13.01%

total

return,

the

MSCI

World

ex

USA

Index-NR

posted

a

-14.29%

total

return,

and

the

Linked

Allocation

VIP

Fund

Benchmark

posted

a

15.01%

total

return.

1,2

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR,

posted

a

-18.36%

total

return

for

the

12

months

ended

December

31,

2022.

1

The

combination

of

resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

many

countries.

This

inflationary

pressure

Portfolio

Composition

12/31/22

%

of

Total

Net

Assets

Common

Stocks

57.1%

U.S.

Government

and

Agency

Securities

18.2%

Corporate

Bonds

10.5%

Mortgage-Backed

Securities

4.6%

Management

Investment

Companies

2.1%

Foreign

Government

and

Agency

Securities

1.7%

Other

2.0%

Short-Term

Investments

&

Other

Net

Assets

3.8%

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-4

Annual

Report

led

many

of

the

world’s

central

banks

to

adopt

less

accommodative

monetary

policy

in

2022,

which

hindered

stocks

and

the

outlook

for

economic

growth.

Russia’s

invasion

of

Ukraine

and

the

subsequent

escalation

of

the

war

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

disrupted

global

trade

and

commodity

markets.

Meanwhile,

shifting

public

health

policy

in

China

added

volatility

to

the

global

economy,

as

lockdowns

early

in

the

period

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

slowed

economic

activity,

while

widespread

protests

late

in

the

period

led

the

government

to

relax

its

strict

“zero-COVID”

policy.

In

the

U.S.,

gross

domestic

product

(GDP)

expanded

in

the

second

half

of

the

calendar

year,

recovering

from

a

slight

contraction

in

the

first

half

of

the

year

when

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

economic

output.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence

despite

high

spending

levels,

robust

job

growth

and

low

unemployment.

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

six

meetings

to

end

the

period

at

a

range

of

4.25%–4.50%.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings

and

anticipated

additional

interest-rate

increases

at

future

meetings

to

curtail

inflation.

Economic

growth

in

the

eurozone

decelerated

to

a

slightly

positive

growth

rate

during

the

year.

The

lifting

of

COVID-

related

restrictions

in

some

European

countries

and

the

summer

tourism

season

strengthened

economies.

However,

the

war

in

Ukraine

disrupted

supply

chains,

weakened

the

economic

outlook

and

contributed

to

record

high

inflation

across

the

eurozone,

as

energy

prices

soared.

Electricity

prices

hit

record

highs

in

Germany

and

France

as

coal

futures

and

natural

gas

prices

climbed.

Consequently,

the

European

Central

Bank

raised

interest

rates

in

July

2022

for

the

first

time

in

11

years

to

curtail

growing

inflation

and

raised

rates

in

three

subsequent

meetings.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-15.06%

total

return

for

the

12

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-18.61%

total

return

for

the

12-month

period.

1

Growth

in

Japan

remained

slow,

alternating

between

positive

quarterly

GDP

growth

and

contraction.

China’s

economy

contracted

sharply

in

2022

as

COVID-related

restrictions

in

many

major

cities,

including

Shanghai,

weakened

consumer

demand.

Investor

concerns

about

the

solvency

of

several

large

property

developers

in

China

further

pressured

stocks

in

that

country.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-20.09%

total

return

for

the

12

months

under

review.

1

Central

bank

tightening,

the

threat

of

recession,

and

weakening

demand

for

semiconductors

in

technology-heavy

countries

contributed

to

the

downturn.

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.

However,

some

emerging

economies,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

benefited

from

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

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,

Geographic

Composition

12/31/22

%

of

Total

Net

Assets

North

America

74.0%

Europe

13.9%

Asia

5.4%

Latin

America

&

Caribbean

1.3%

Australia

&

New

Zealand

1.0%

Other

0.6%

Short-Term

Investments

&

Other

Net

Assets

3.8%

Franklin

Allocation

VIP

Fund

FA-5

Annual

Report

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

12

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

U.S.

Core

Equity

Strategy

performed

better

than

the

index.

During

the

period,

the

Fund’s

management

team

exited

the

Franklin

Rising

Dividends

and

Franklin

U.S.

Smart

Beta

strategies,

and

initiated

positions

in

the

ClearBridge

Large

Cap

Growth

and

ClearBridge

Large

Cap

Value

strategies.

All

four

strategies

performed

better

than

the

domestic

equity

benchmark.

On

the

fixed

income

side,

the

Franklin

Investment

Grade

Corporate

Strategy

and

the

Franklin

U.S.

Core

Bond

Strategy

underperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

U.S.

Aggregate

Bond

Index.

The

Western

Asset

Core

Bond

Strategy

and

the

Brandywine

Global

Opportunity

Bond

Strategy,

both

new

positions

during

the

period,

also

underperformed

the

fixed

income

benchmark

during

their

time

in

the

Fund.

The

Templeton

Global

Bond

VIP

Fund

–

Class

1,

which

the

Fund’s

management

team

exited

during

the

period,

and

the

Franklin

U.S.

Treasury

Securities

Strategy

performed

better

than

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,

performed

better

than

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

December

31,

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

12/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

U.S.

Treasury

Notes

13.3%

Diversified

Financial

Services,

United

States

U.S.

Treasury

Bonds

4.9%

Diversified

Financial

Services,

United

States

Schwab

U.S.

TIPS

ETF

2.1%

Capital

Markets,

United

States

FNMA,

30

Year

1.7%

Thrifts

&

Mortgage

Finance,

United

States

Microsoft

Corp.

1.7%

Software,

United

States

Apple,

Inc.

1.4%

Technology

Hardware,

Storage

&

Peripherals,

United

States

FHLMC

Pool,

30

Year

1.2%

Diversified

Financial

Services,

United

States

Alphabet,

Inc.

1.0%

Interactive

Media

&

Services,

United

States

Bank

of

America

Corp.

0.9%

Banks,

United

States

Amazon.com,

Inc.

0.9%

Internet

&

Direct

Marketing

Retail,

United

States

Class

4

Fund

Expenses

Franklin

Allocation

VIP

Fund

FA-6

Annual

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

184/365

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

7/1/22

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

4

$1,000

$1,008.80

$4.66

$1,020.57

$4.68

0.92%

FA-7

Annual

Report

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

GOF

VIP

P1

P2

P4

P5

12/22

SUPPLEMENT

DATED

DECEMBER

23,

2022

TO

THE

CURRENTLY

EFFECTIVE

PROSPECTUSES

OF

EACH

FUND

LISTED

BELOW

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

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

TEMPLETON

DEVELOPING

MARKETS

VIP

FUND

TEMPLETON

FOREIGN

VIP

FUND

TEMPLETON

GLOBAL

BOND

VIP

FUND

TEMPLETON

GROWTH

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

I.

For

Franklin

Allocation

VIP

Fund,

Franklin

Global

Real

Estate

VIP

Fund,

Franklin

Income

VIP

Fund,

Franklin

Strategic

Income

VIP

Fund

and

Franklin

VolSmart

Allocation

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-

focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-

term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

II.

For

Franklin

Dynatech

VIP

Fund,

Franklin

Growth

and

Income

VIP

Fund,

Franklin

Large

Cap

Growth

VIP

Fund,

Franklin

Rising

Dividends

VIP

Fund,

Franklin

Small-Mid

Cap

Growth

VIP

Fund,

Templeton

Developing

Markets

VIP

Fund,

Templeton

Global

Bond

VIP

Fund,

Templeton

Foreign

VIP

Fund

and

Templeton

Growth

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

FA-8

Annual

Report

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

In

certain

circumstances,

there

may

be

times

when

not

every

investment

is

assessed

for

ESG

factors

and,

when

they

are,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

III.

For

Franklin

U.S.

Government

Securities

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

Social

and

Governance

Considerations

Social

and/or

governance

considerations

are

not

the

only

factors

considered

by

the

investment

manager

and

may

not

be

a

determinative

factor

in

the

investment

manager’s

selection

of

securities

for

the

Fund.

In

addition,

the

investment

manager

may

not

be

able

to

give

such

considerations

meaningful

weight

if

the

availability

of

appropriate

securities

for

the

Fund’s

portfolio

is

limited.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

certain

investments

may

differ

from

that

of

investors,

third

party

service

providers,

such

as

ratings

providers,

or

other

funds.

While

the

investment

manager

views

social

and

governance

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

FA-9

Annual

Report

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

FFA

P1

P2

P4

09/22

SUPPLEMENT

DATED

SEPTEMBER

30,

2022

TO

THE

PROSPECTUSES

DATED

MAY

1,

2022

FRANKLIN

ALLOCATION

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

Effective

October

1,

2022,

the

prospectus

is

amended

as

follows:

I.

The

portfolio

management

team

under

the

“Fund

Summaries

–

Franklin

Allocation

VIP

Fund”

section

on

page

FFA-S7

of

the

prospectus

is

replaced

with

the

following:

Thomas

A.

Nelson,

CFA

Portfolio

Manager

of

Advisers

and

portfolio

manager

of

the

Fund

since

2019.

Wylie

Tollette

,

CFA

Executive

Vice

President

of

Advisers

and

portfolio

manager

of

the

Fund

since

2019.

Jaqueline

Kenney,

CFA

Portfolio

Manager

of

Advisers

and

portfolio

manager

of

the

Fund

since

October

2022.

II.

The

portfolio

management

section

under

the

“Fund

Details

–

Franklin

Allocation

VIP

Fund

–

Management”

section

on

page

FFA-D12

of

the

prospectus

is

replaced

with

the

following:

Thomas

A.

Nelson,

CFA

Portfolio

Manager

of

Advisers

Mr.

Nelson

has

been

a

co-lead

portfolio

manager

of

the

Fund

since

2019.

He

joined

Franklin

Templeton

in

2007.

Wylie

Tollette

,

CFA

Executive

Vice

President

of

Advisers

Mr.

Tollette

has

been

a

co-lead

portfolio

manager

of

the

Fund

since

2019.

He

first

joined

Franklin

Templeton

in

1994,

left

the

company

in

2014

and

rejoined

in

2018.

Jaqueline

Kenney,

CFA

Portfolio

Manager

of

Advisers

Ms.

Kenney

has

been

a

portfolio

manager

of

the

Fund

since

October

2022,

providing

support

to

the

lead

portfolio

managers

as

needed.

She

joined

Franklin

Templeton

in

2010.

As

co-lead

portfolio

managers

of

the

Fund,

Messrs.

Nelson

and

Tollette

are

jointly

and

primarily

responsible

for

the

day-to-day

management

of

the

Fund's

portfolio.

They

have

equal

authority

over

all

aspects

of

the

Fund's

investment

portfolio,

including,

but

not

limited

to,

the

implementation

of

the

Fund's

asset

allocation

strategy,

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.

Ms.

Kenney

provides

the

Fund

with

research

and

advice

on

the

purchases

and

sales

of

individual

securities,

and

portfolio

risk

assessment.

CFA

®

and

Chartered

Financial

Analyst

®

are

trademarks

owned

by

CFA

Institute.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Allocation

VIP

Fund

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-10

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$6.02

$5.49

$6.86

$6.37

$7.44

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.08

0.06

0.10

0.11

c

0.23

c

Net

realized

and

unrealized

gains

(losses)

...........

(1.03)

0.58

0.45

1.11

(0.89)

Total

from

investment

operations

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

(0.95)

0.64

0.55

1.22

(0.66)

Less

distributions

from:

Net

investment

income

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

(0.10)

(0.11)

(0.12)

(0.27)

(0.24)

Net

realized

gains

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

(0.51)

—

(1.80)

(0.46)

(0.17)

Total

distributions

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

(0.61)

(0.11)

(1.92)

(0.73)

(0.41)

Net

asset

value,

end

of

year

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

$4.46

$6.02

$5.49

$6.86

$6.37

Total

return

d

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

(15.68)%

11.81%

12.19%

20.04%

(9.34)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.58%

0.60%

0.60%

0.44%

0.12%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.57%

e

0.56%

e

0.55%

e

0.39%

0.10%

Net

investment

income

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

1.55%

1.04%

1.79%

1.55%

3.13%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$648

$841

$811

$842

$984

Portfolio

turnover

rate

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

107.31%

54.07%

99.02%

170.79%

2.23%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

....

107.31%

54.07%

91.62%

f

158.11%

f

2.23%

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

Products

Trust

serves

as

an

underlying

investment

vehicle.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

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.

Annual

Report

FA-11

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$5.96

$5.43

$6.81

$6.32

$7.39

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.06

0.05

0.09

0.09

c

0.21

c

Net

realized

and

unrealized

gains

(losses)

...........

(1.02)

0.58

0.43

1.11

(0.89)

Total

from

investment

operations

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

(0.96)

0.63

0.52

1.20

(0.68)

Less

distributions

from:

Net

investment

income

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

(0.08)

(0.10)

(0.10)

(0.25)

(0.22)

Net

realized

gains

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

(0.51)

—

(1.80)

(0.46)

(0.17)

Total

distributions

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

(0.59)

(0.10)

(1.90)

(0.71)

(0.39)

Net

asset

value,

end

of

year

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

$4.41

$5.96

$5.43

$6.81

$6.32

Total

return

d

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

(16.00)%

11.68%

11.74%

19.86%

(9.65)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.83%

0.85%

0.85%

0.69%

0.37%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.82%

e

0.81%

e

0.80%

e

0.64%

0.35%

Net

investment

income

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

1.29%

0.80%

1.54%

1.30%

2.88%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$223,917

$302,084

$398,620

$403,040

$390,300

Portfolio

turnover

rate

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

107.31%

54.07%

99.02%

170.79%

2.23%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

....

107.31%

54.07%

91.62%

f

158.11%

f

2.23%

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.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

See

Note

1(e)

regarding

mortgage

dollar

rolls.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Allocation

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-12

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$6.17

$5.62

$6.97

$6.46

$7.53

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.06

0.04

0.08

0.08

c

0.20

c

Net

realized

and

unrealized

gains

(losses)

...........

(1.06)

0.60

0.46

1.13

(0.89)

Total

from

investment

operations

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

(1.00)

0.64

0.54

1.21

(0.69)

Less

distributions

from:

Net

investment

income

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

(0.08)

(0.09)

(0.09)

(0.24)

(0.21)

Net

realized

gains

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

(0.51)

—

(1.80)

(0.46)

(0.17)

Total

distributions

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

(0.59)

(0.09)

(1.89)

(0.70)

(0.38)

Net

asset

value,

end

of

year

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

$4.58

$6.17

$5.62

$6.97

$6.46

Total

return

d

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

(16.19)%

11.54%

11.75%

19.56%

(9.58)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.93%

0.95%

0.95%

0.79%

0.47%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.92%

e

0.91%

e

0.90%

e

0.74%

0.45%

Net

investment

income

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

1.20%

0.70%

1.44%

1.20%

2.78%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$328,741

$418,751

$409,388

$406,693

$393,385

Portfolio

turnover

rate

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

107.31%

54.07%

99.02%

170.79%

2.23%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

....

107.31

%

54.07%

91.62%

f

158.11%

f

2.23%

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

Products

Trust

serves

as

an

underlying

investment

vehicle.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

See

Note

1(e)

regarding

mortgage

dollar

rolls.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments,

December

31,

2022

Franklin

Allocation

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-13

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

57.1%

Aerospace

&

Defense

2.2%

BAE

Systems

plc

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

United

Kingdom

85,879

$

886,956

BWX

Technologies,

Inc.

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

United

States

3,401

197,530

Dassault

Aviation

SA

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

France

4,122

699,030

General

Dynamics

Corp.

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

United

States

1,307

324,280

Lockheed

Martin

Corp.

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

United

States

3,678

1,789,310

MTU

Aero

Engines

AG

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

Germany

6,000

1,290,752

Northrop

Grumman

Corp.

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

United

States

4,821

2,630,386

Raytheon

Technologies

Corp.

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

United

States

37,258

3,760,077

a

Rolls-Royce

Holdings

plc

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

United

Kingdom

458,759

512,401

12,090,722

Air

Freight

&

Logistics

0.7%

DSV

A/S

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

Denmark

6,639

1,049,812

Expeditors

International

of

Washington,

Inc.

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

United

States

2,764

287,235

Nippon

Express

Holdings,

Inc.

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

Japan

2,300

131,307

United

Parcel

Service,

Inc.,

B

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

United

States

14,949

2,598,734

4,067,088

Airlines

0.0%

†

a

Delta

Air

Lines,

Inc.

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

United

States

2,200

72,292

Auto

Components

0.5%

a

Aptiv

plc

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

United

States

5,080

473,101

BorgWarner,

Inc.

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

United

States

5,096

205,114

Bridgestone

Corp.

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

Japan

2,500

88,487

Continental

AG

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

Germany

11,429

681,303

a

Faurecia

SE

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

France

42,052

636,443

Valeo

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

France

29,000

518,143

2,602,591

Automobiles

0.7%

Bayerische

Motoren

Werke

AG

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

Germany

15,957

1,412,688

Honda

Motor

Co.

Ltd.

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

Japan

26,100

595,111

a

Rivian

Automotive,

Inc.,

A

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

United

States

2,200

40,546

Stellantis

NV

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

United

States

63,088

896,461

a

Tesla,

Inc.

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

United

States

7,924

976,078

Thor

Industries,

Inc.

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

United

States

1,565

118,142

Toyota

Motor

Corp.

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

Japan

3,000

40,914

4,079,940

Banks

3.3%

Banco

Bilbao

Vizcaya

Argentaria

SA

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

Spain

13,312

80,178

Bank

of

America

Corp.

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

United

States

94,861

3,141,796

Bank

OZK

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

United

States

3,533

141,532

Citigroup,

Inc.

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

United

States

17,306

782,750

Comerica,

Inc.

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

United

States

1,354

90,515

Commonwealth

Bank

of

Australia

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

Australia

3,194

221,822

DBS

Group

Holdings

Ltd.

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

Singapore

29,900

756,817

FinecoBank

Banca

Fineco

SpA

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

Italy

72,000

1,195,585

First

Horizon

Corp.

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

United

States

16,236

397,782

FNB

Corp.

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

United

States

11,001

143,563

HSBC

Holdings

plc

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

United

Kingdom

69,112

428,306

ING

Groep

NV

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

Netherlands

85,051

1,035,972

JPMorgan

Chase

&

Co.

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

United

States

18,967

2,543,475

Kasikornbank

PCL

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

Thailand

120,192

511,040

KB

Financial

Group,

Inc.

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

South

Korea

19,208

739,004

Lloyds

Banking

Group

plc

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

United

Kingdom

1,319,313

719,937

Mitsubishi

UFJ

Financial

Group,

Inc.

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

Japan

16,400

110,062

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

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)

Banks

(continued)

NatWest

Group

plc

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

United

Kingdom

160,206

$

510,913

Prosperity

Bancshares,

Inc.

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

United

States

1,089

79,149

Shinhan

Financial

Group

Co.

Ltd.

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

South

Korea

23,451

655,609

Standard

Chartered

plc

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

United

Kingdom

197,773

1,475,033

Sumitomo

Mitsui

Financial

Group,

Inc.

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

Japan

20,700

832,526

Sumitomo

Mitsui

Financial

Group,

Inc.,

ADR

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

Japan

99,600

798,792

US

Bancorp

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

United

States

13,848

603,911

17,996,069

Beverages

1.0%

Brown-Forman

Corp.,

B

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

United

States

4,091

268,697

b

Budweiser

Brewing

Co.

APAC

Ltd.,

144A,

Reg

S

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

China

40,500

126,604

Constellation

Brands,

Inc.,

A

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

United

States

1,404

325,377

Kirin

Holdings

Co.

Ltd.

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

Japan

5,300

80,752

a

Monster

Beverage

Corp.

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

United

States

16,317

1,656,665

PepsiCo,

Inc.

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

United

States

14,583

2,634,565

Pernod

Ricard

SA

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

France

2,128

418,606

Suntory

Beverage

&

Food

Ltd.

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

Japan

2,100

71,485

5,582,751

Biotechnology

1.3%

AbbVie,

Inc.

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

United

States

6,032

974,831

Amgen,

Inc.

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

United

States

5,019

1,318,190

CSL

Ltd.

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

United

States

7,035

1,371,683

a

Genmab

A/S

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

Denmark

2,700

1,141,480

Gilead

Sciences,

Inc.

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

United

States

10,863

932,589

a

Moderna,

Inc.

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

United

States

431

77,416

a

Regeneron

Pharmaceuticals,

Inc.

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

United

States

1,412

1,018,744

a

Swedish

Orphan

Biovitrum

AB

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

Sweden

4,982

103,106

a

Vertex

Pharmaceuticals,

Inc.

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

United

States

1,547

446,743

7,384,782

Building

Products

0.3%

Allegion

plc

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

United

States

1,357

142,838

a

Builders

FirstSource,

Inc.

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

United

States

4,852

314,798

Cie

de

Saint-Gobain

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

France

11,110

543,485

Owens

Corning

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

United

States

2,914

248,564

Trane

Technologies

plc

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

United

States

2,656

446,447

1,696,132

Capital

Markets

2.1%

3i

Group

plc

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

United

Kingdom

25,066

404,231

Affiliated

Managers

Group,

Inc.

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

United

States

1,042

165,084

Bank

of

New

York

Mellon

Corp.

(The)

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

United

States

17,280

786,586

BlackRock,

Inc.

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

United

States

365

258,650

Blackstone,

Inc.

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

United

States

1,000

74,190

Carlyle

Group,

Inc.

(The)

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

United

States

4,302

128,372

Cboe

Global

Markets,

Inc.

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

United

States

3,187

399,873

Charles

Schwab

Corp.

(The)

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

United

States

23,909

1,990,663

Deutsche

Bank

AG

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

Germany

22,816

256,476

Deutsche

Boerse

AG

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

Germany

8,496

1,462,859

Evercore,

Inc.,

A

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

United

States

1,015

110,716

FactSet

Research

Systems,

Inc.

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

United

States

1,150

461,392

Intercontinental

Exchange,

Inc.

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

United

States

3,555

364,707

Intermediate

Capital

Group

plc

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

United

Kingdom

60,000

828,397

Jefferies

Financial

Group,

Inc.

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

United

States

6,359

217,987

Julius

Baer

Group

Ltd.

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

Switzerland

737

42,892

Lazard

Ltd.,

A

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

United

States

2,765

95,863

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-15

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Capital

Markets

(continued)

LPL

Financial

Holdings,

Inc.

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

United

States

2,362

$

510,594

Macquarie

Group

Ltd.

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

Australia

7,600

857,889

MarketAxess

Holdings,

Inc.

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

United

States

300

83,667

MSCI,

Inc.

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

United

States

243

113,036

S&P

Global,

Inc.

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

United

States

3,833

1,283,825

SEI

Investments

Co.

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

United

States

3,061

178,456

State

Street

Corp.

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

United

States

1,011

78,423

Tradeweb

Markets,

Inc.,

A

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

United

States

3,100

201,283

UBS

Group

AG

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

Switzerland

20,769

385,996

11,742,107

Chemicals

1.8%

Air

Products

and

Chemicals,

Inc.

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

United

States

6,504

2,004,923

BASF

SE

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

Germany

1,829

90,053

CF

Industries

Holdings,

Inc.

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

United

States

6,401

545,365

b

Covestro

AG,

144A,

Reg

S

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

Germany

11,636

453,272

Ecolab,

Inc.

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

United

States

1,621

235,953

ICL

Group

Ltd.

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

Israel

18,746

135,064

Koninklijke

DSM

NV

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

Netherlands

6,900

847,243

Linde

plc

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

United

Kingdom

1,885

614,849

LyondellBasell

Industries

NV,

A

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

United

States

3,768

312,857

Mosaic

Co.

(The)

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

United

States

3,848

168,812

Nissan

Chemical

Corp.

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

Japan

3,100

135,136

Nitto

Denko

Corp.

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

Japan

4,200

241,815

OCI

NV

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

Netherlands

3,256

116,405

PPG

Industries,

Inc.

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

United

States

7,783

978,634

Sherwin-Williams

Co.

(The)

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

United

States

2,430

576,712

Shin-Etsu

Chemical

Co.

Ltd.

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

Japan

1,400

170,899

Sika

AG

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

Switzerland

3,400

817,327

Solvay

SA

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

Belgium

2,162

218,581

Symrise

AG

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

Germany

9,586

1,041,039

9,704,939

Commercial

Services

&

Supplies

0.1%

Brambles

Ltd.

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

Australia

5,385

44,157

Cintas

Corp.

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

United

States

268

121,034

a

Clean

Harbors,

Inc.

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

United

States

633

72,238

Republic

Services,

Inc.

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

United

States

1,600

206,384

Rollins,

Inc.

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

United

States

2,635

96,283

540,096

Communications

Equipment

0.7%

a

Arista

Networks,

Inc.

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

United

States

965

117,103

Cisco

Systems,

Inc.

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

United

States

38,289

1,824,088

a

F5,

Inc.

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

United

States

553

79,361

Motorola

Solutions,

Inc.

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

United

States

6,664

1,717,379

3,737,931

Construction

Materials

0.3%

CRH

plc

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

Ireland

16,891

671,727

Martin

Marietta

Materials,

Inc.

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

United

States

3,168

1,070,689

1,742,416

Consumer

Finance

0.4%

American

Express

Co.

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

United

States

12,490

1,845,397

Synchrony

Financial

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

United

States

14,164

465,429

2,310,826

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

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)

Containers

&

Packaging

0.0%

†

Graphic

Packaging

Holding

Co.

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

United

States

6,210

$

138,172

Distributors

0.0%

†

Genuine

Parts

Co.

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

United

States

823

142,799

Diversified

Consumer

Services

0.0%

†

H&R

Block,

Inc.

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

United

States

5,107

186,457

Diversified

Financial

Services

0.5%

a

Berkshire

Hathaway,

Inc.,

B

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

United

States

5,062

1,563,652

a

EXOR

NV

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

Netherlands

8,793

643,744

Housing

Development

Finance

Corp.

Ltd.

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

India

24,196

769,079

2,976,475

Diversified

Telecommunication

Services

0.4%

AT&T,

Inc.

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

United

States

31,580

581,388

Bezeq

The

Israeli

Telecommunication

Corp.

Ltd.

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

Israel

23,583

40,342

b

Cellnex

Telecom

SA,

144A,

Reg

S

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

Spain

17,000

563,885

Deutsche

Telekom

AG

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

Germany

8,078

160,717

Nippon

Telegraph

&

Telephone

Corp.

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

Japan

28,100

801,096

Spark

New

Zealand

Ltd.

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

New

Zealand

19,985

68,413

2,215,841

Electric

Utilities

0.6%

Acciona

SA

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

Spain

755

138,937

American

Electric

Power

Co.,

Inc.

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

United

States

7,019

666,454

Edison

International

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

United

States

17,738

1,128,492

Elia

Group

SA/NV

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

Belgium

953

135,475

Endesa

SA

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

Spain

9,185

173,097

NextEra

Energy,

Inc.

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

United

States

5,392

450,771

NRG

Energy,

Inc.

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

United

States

7,485

238,173

OGE

Energy

Corp.

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

United

States

6,330

250,352

Red

Electrica

Corp.

SA

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

Spain

11,769

204,632

3,386,383

Electrical

Equipment

0.6%

Acuity

Brands,

Inc.

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

United

States

999

165,444

AMETEK,

Inc.

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

United

States

1,618

226,067

Eaton

Corp.

plc

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

United

States

6,215

975,444

Fuji

Electric

Co.

Ltd.

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

Japan

3,600

135,815

Hubbell,

Inc.

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

United

States

1,652

387,691

Mitsubishi

Electric

Corp.

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

Japan

12,600

124,810

Prysmian

SpA

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

Italy

5,539

205,795

Schneider

Electric

SE

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

United

States

2,279

320,036

Vertiv

Holdings

Co.

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

United

States

64,922

886,835

3,427,937

Electronic

Equipment,

Instruments

&

Components

0.8%

Amphenol

Corp.,

A

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

United

States

7,466

568,461

Avnet,

Inc.

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

United

States

1,746

72,599

Hirose

Electric

Co.

Ltd.

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

Japan

900

112,841

Ibiden

Co.

Ltd.

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

Japan

1,200

43,260

Jabil,

Inc.

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

United

States

4,195

286,099

Keyence

Corp.

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

Japan

400

155,245

a

Keysight

Technologies,

Inc.

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

United

States

2,106

360,273

TDK

Corp.

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

Japan

4,000

130,090

TE

Connectivity

Ltd.

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

Switzerland

20,118

2,309,546

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-17

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Electronic

Equipment,

Instruments

&

Components

(continued)

Yokogawa

Electric

Corp.

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

Japan

7,000

$

111,059

4,149,473

Energy

Equipment

&

Services

0.2%

SBM

Offshore

NV

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

Netherlands

47,343

744,805

Schlumberger

Ltd.

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

United

States

1,790

95,693

a

Tecnicas

Reunidas

SA

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

Spain

19,845

193,714

1,034,212

Entertainment

0.6%

a

CTS

Eventim

AG

&

Co.

KGaA

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

Germany

18,000

1,142,568

Electronic

Arts,

Inc.

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

United

States

2,325

284,068

a

Netflix,

Inc.

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

United

States

3,452

1,017,926

Nintendo

Co.

Ltd.

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

Japan

6,800

285,819

a

ROBLOX

Corp.,

A

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

United

States

3,300

93,918

a

Sea

Ltd.,

ADR

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

Singapore

4,192

218,110

Square

Enix

Holdings

Co.

Ltd.

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

Japan

2,600

120,665

a

Walt

Disney

Co.

(The)

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

United

States

1,702

147,870

World

Wrestling

Entertainment,

Inc.,

A

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

United

States

1,326

90,857

3,401,801

Equity

Real

Estate

Investment

Trusts

(REITs)

0.8%

American

Tower

Corp.

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

United

States

5,016

1,062,690

Covivio

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

France

1,041

61,789

Crown

Castle,

Inc.

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

United

States

2,885

391,322

Equinix,

Inc.

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

United

States

932

610,488

Gaming

and

Leisure

Properties,

Inc.

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

United

States

1,480

77,093

a

Klepierre

SA

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

France

6,338

146,278

Omega

Healthcare

Investors,

Inc.

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

United

States

7,310

204,315

Prologis,

Inc.

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

United

States

398

44,867

Public

Storage

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

United

States

4,096

1,147,658

Segro

plc

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

United

Kingdom

20,914

192,657

Simon

Property

Group,

Inc.

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

United

States

2,547

299,222

Stockland

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

Australia

16,777

41,316

STORE

Capital

Corp.

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

United

States

7,905

253,434

4,533,129

Food

&

Staples

Retailing

0.4%

Albertsons

Cos.,

Inc.,

A

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

United

States

5,219

108,242

Coles

Group

Ltd.

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

Australia

5,779

65,504

Costco

Wholesale

Corp.

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

United

States

200

91,300

Jeronimo

Martins

SGPS

SA

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

Portugal

4,918

106,398

Koninklijke

Ahold

Delhaize

NV

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

Netherlands

16,702

480,182

Kroger

Co.

(The)

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

United

States

20,802

927,353

Sundrug

Co.

Ltd.

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

Japan

17,693

525,595

2,304,574

Food

Products

0.5%

Ajinomoto

Co.,

Inc.

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

Japan

13,000

397,187

Archer-Daniels-Midland

Co.

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

United

States

1,092

101,392

Danone

SA

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

France

1,333

70,253

General

Mills,

Inc.

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

United

States

2,477

207,696

Hershey

Co.

(The)

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

United

States

1,821

421,689

Lamb

Weston

Holdings,

Inc.

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

United

States

1,232

110,092

Nestle

SA

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

United

States

9,329

1,077,529

b

WH

Group

Ltd.,

144A,

Reg

S

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

Hong

Kong

241,500

140,854

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

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)

Food

Products

(continued)

Yakult

Honsha

Co.

Ltd.

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

Japan

3,900

$

253,794

2,780,486

Gas

Utilities

0.1%

National

Fuel

Gas

Co.

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

United

States

2,744

173,695

Tokyo

Gas

Co.

Ltd.

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

Japan

12,000

234,877

408,572

Health

Care

Equipment

&

Supplies

1.9%

Abbott

Laboratories

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

United

States

3,360

368,894

Alcon,

Inc.,

(CHF

Traded)

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

Switzerland

14,500

994,921

Alcon,

Inc.,

(USD

Traded)

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

Switzerland

11,142

763,784

Becton

Dickinson

and

Co.

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

United

States

4,785

1,216,825

BioMerieux

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

France

1,139

119,662

Cochlear

Ltd.

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

Australia

6,400

883,823

a

Dexcom,

Inc.

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

United

States

6,536

740,137

a

Edwards

Lifesciences

Corp.

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

United

States

4,786

357,083

a

Haemonetics

Corp.

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

United

States

2,524

198,513

a

Hologic,

Inc.

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

United

States

6,960

520,678

Hoya

Corp.

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

Japan

800

76,597

a

IDEXX

Laboratories,

Inc.

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

United

States

1,323

539,731

a

Intuitive

Surgical,

Inc.

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

United

States

5,753

1,526,559

Olympus

Corp.

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

Japan

29,600

521,894

a

QuidelOrtho

Corp.

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

United

States

1,426

122,165

ResMed,

Inc.

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

United

States

343

71,389

Sonova

Holding

AG

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

Switzerland

1,254

297,807

Stryker

Corp.

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

United

States

3,862

944,220

Teleflex,

Inc.

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

United

States

1,384

345,488

Zimmer

Biomet

Holdings,

Inc.

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

United

States

713

90,907

10,701,077

Health

Care

Providers

&

Services

1.8%

a

Centene

Corp.

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

United

States

1,414

115,962

Cigna

Corp.

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

United

States

326

108,017

CVS

Health

Corp.

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

United

States

6,402

596,602

Elevance

Health,

Inc.

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

United

States

5,043

2,586,908

Fresenius

Medical

Care

AG

&

Co.

KGaA

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

Germany

11,786

384,943

Humana,

Inc.

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

United

States

144

73,755

Laboratory

Corp.

of

America

Holdings

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

United

States

1,010

237,835

McKesson

Corp.

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

United

States

2,832

1,062,340

Sonic

Healthcare

Ltd.

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

Australia

7,286

148,267

UnitedHealth

Group,

Inc.

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

United

States

8,341

4,422,231

9,736,860

Health

Care

Technology

0.0%

†

a

Veeva

Systems,

Inc.,

A

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

United

States

700

112,966

Hotels,

Restaurants

&

Leisure

0.4%

a

Airbnb,

Inc.,

A

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

United

States

1,000

85,500

a

Booking

Holdings,

Inc.

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

United

States

129

259,971

Boyd

Gaming

Corp.

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

United

States

1,439

78,469

Choice

Hotels

International,

Inc.

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

United

States

993

111,851

Compass

Group

plc

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

United

Kingdom

11,407

263,400

Domino's

Pizza,

Inc.

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

United

States

587

203,337

b

La

Francaise

des

Jeux

SAEM,

144A,

Reg

S

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

France

1,749

70,374

a

Las

Vegas

Sands

Corp.

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

United

States

6,338

304,667

a

Lottery

Corp.

Ltd.

(The)

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

Australia

66,024

201,232

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-19

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Hotels,

Restaurants

&

Leisure

(continued)

McDonald's

Corp.

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

United

States

2,077

$

547,352

2,126,153

Household

Durables

0.2%

Barratt

Developments

plc

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

United

Kingdom

34,165

163,175

Gree

Electric

Appliances,

Inc.

of

Zhuhai,

A

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

China

47,400

221,347

Persimmon

plc

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

United

Kingdom

10,870

159,376

Sekisui

House

Ltd.

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

Japan

18,900

334,965

Sony

Group

Corp.

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

Japan

4,248

323,679

Taylor

Wimpey

plc

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

United

Kingdom

45,137

55,277

1,257,819

Household

Products

0.2%

Colgate-Palmolive

Co.

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

United

States

15,804

1,245,197

Kimberly-Clark

Corp.

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

United

States

606

82,265

1,327,462

Independent

Power

and

Renewable

Electricity

Producers

0.0%

†

RWE

AG

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

Germany

3,208

141,812

Vistra

Corp.

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

United

States

3,275

75,980

217,792

Industrial

Conglomerates

0.6%

3M

Co.

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

United

States

4,214

505,343

CK

Hutchison

Holdings

Ltd.

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

United

Kingdom

163,000

976,521

Hitachi

Ltd.

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

Japan

16,706

840,296

Honeywell

International,

Inc.

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

United

States

4,174

894,488

3,216,648

Insurance

1.6%

AIA

Group

Ltd.

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

Hong

Kong

74,546

823,251

American

Financial

Group,

Inc.

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

United

States

1,710

234,749

a

Arch

Capital

Group

Ltd.

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

United

States

1,506

94,547

Assured

Guaranty

Ltd.

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

United

States

1,338

83,304

Chubb

Ltd.

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

United

States

931

205,379

Legal

&

General

Group

plc

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

United

Kingdom

166,915

500,413

Marsh

&

McLennan

Cos.,

Inc.

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

United

States

9,507

1,573,218

Medibank

Pvt

Ltd.

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

Australia

81,126

161,838

MetLife,

Inc.

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

United

States

3,109

224,998

Principal

Financial

Group,

Inc.

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

United

States

7,333

615,385

Progressive

Corp.

(The)

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

United

States

8,584

1,113,431

Prudential

plc,

(GBP

Traded)

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

Hong

Kong

33,657

458,904

Prudential

plc,

(HKD

Traded)

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

Hong

Kong

7,250

101,311

Sampo

OYJ,

A

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

Finland

4,013

209,587

Tokio

Marine

Holdings,

Inc.

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

Japan

19,000

405,746

Travelers

Cos.,

Inc.

(The)

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

United

States

5,502

1,031,570

Unum

Group

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

United

States

6,120

251,104

W

R

Berkley

Corp.

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

United

States

3,250

235,852

Zurich

Insurance

Group

AG

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

Switzerland

1,451

693,653

9,018,240

Interactive

Media

&

Services

1.6%

a

Alphabet,

Inc.,

A

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

United

States

48,598

4,287,802

a

Alphabet,

Inc.,

C

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

United

States

12,328

1,093,863

b

Auto

Trader

Group

plc,

144A,

Reg

S

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

United

Kingdom

18,822

117,206

a

Baidu,

Inc.,

ADR

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

China

1,870

213,890

a

Match

Group,

Inc.

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

United

States

683

28,338

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

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)

Interactive

Media

&

Services

(continued)

a

Meta

Platforms,

Inc.,

A

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

United

States

23,496

$

2,827,509

8,568,608

Internet

&

Direct

Marketing

Retail

1.6%

a

Alibaba

Group

Holding

Ltd.

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

China

66,793

732,923

a

Amazon.com,

Inc.

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

United

States

55,690

4,677,960

a,b

Delivery

Hero

SE,

144A,

Reg

S

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

South

Korea

1,869

89,689

eBay,

Inc.

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

United

States

8,063

334,373

a

Etsy,

Inc.

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

United

States

780

93,429

a,b

Just

Eat

Takeaway.com

NV,

144A,

Reg

S

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

United

Kingdom

13,797

293,649

a

MercadoLibre,

Inc.

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

Brazil

1,150

973,176

Prosus

NV

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

China

11,845

817,781

a

Vipshop

Holdings

Ltd.,

ADR

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

China

45,274

617,537

ZOZO,

Inc.

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

Japan

3,700

91,343

8,721,860

IT

Services

2.5%

a,b

Adyen

NV,

144A,

Reg

S

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

Netherlands

797

1,106,383

a

Amadeus

IT

Group

SA

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

Spain

19,700

1,021,944

Amdocs

Ltd.

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

United

States

3,697

336,057

Automatic

Data

Processing,

Inc.

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

United

States

568

135,673

Cognizant

Technology

Solutions

Corp.,

A

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

United

States

2,278

130,279

a

DXC

Technology

Co.

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

United

States

31,133

825,025

a

Gartner,

Inc.

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

United

States

223

74,959

Genpact

Ltd.

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

United

States

5,626

260,596

Jack

Henry

&

Associates,

Inc.

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

United

States

2,228

391,148

Keywords

Studios

plc

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

Ireland

38,000

1,246,972

Mastercard,

Inc.,

A

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

United

States

3,614

1,256,696

Otsuka

Corp.

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

Japan

3,500

110,284

Paychex,

Inc.

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

United

States

6,293

727,219

a

Paymentus

Holdings,

Inc.,

A

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

United

States

2,600

20,826

a

PayPal

Holdings,

Inc.

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

United

States

9,115

649,170

a

Shopify,

Inc.,

A

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

Canada

19,200

666,432

a

Snowflake,

Inc.,

A

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

United

States

1,500

215,310

TIS,

Inc.

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

Japan

7,000

183,909

a

VeriSign,

Inc.

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

United

States

566

116,279

Visa,

Inc.,

A

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

United

States

19,904

4,135,257

Western

Union

Co.

(The)

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

United

States

12,045

165,860

13,776,278

Leisure

Products

0.0%

†

Bandai

Namco

Holdings,

Inc.

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

Japan

1,600

100,253

Life

Sciences

Tools

&

Services

1.2%

Agilent

Technologies,

Inc.

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

United

States

3,831

573,309

Danaher

Corp.

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

United

States

2,987

792,809

a

Evotec

SE

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

Germany

48,000

780,834

a

Illumina,

Inc.

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

United

States

1,446

292,381

a

Mettler-Toledo

International,

Inc.

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

United

States

1,416

2,046,757

a

QIAGEN

NV

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

United

States

882

44,337

Sartorius

Stedim

Biotech

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

France

284

92,287

Thermo

Fisher

Scientific,

Inc.

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

United

States

2,883

1,587,639

a

Waters

Corp.

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

United

States

1,229

421,031

6,631,384

Machinery

1.7%

AGCO

Corp.

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

United

States

894

123,989

Allison

Transmission

Holdings,

Inc.

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

United

States

3,001

124,842

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-21

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Machinery

(continued)

Atlas

Copco

AB,

A

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

Sweden

17,370

$

205,794

Atlas

Copco

AB,

B

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

Sweden

45,291

483,209

Deere

&

Co.

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

United

States

7,715

3,307,883

Dover

Corp.

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

United

States

1,100

148,951

Illinois

Tool

Works,

Inc.

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

United

States

7,041

1,551,132

Ingersoll

Rand,

Inc.

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

United

States

4,826

252,159

Komatsu

Ltd.

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

Japan

16,000

345,707

Lincoln

Electric

Holdings,

Inc.

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

United

States

1,658

239,564

Mitsubishi

Heavy

Industries

Ltd.

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

Japan

9,500

375,279

NGK

Insulators

Ltd.

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

Japan

5,300

67,168

Otis

Worldwide

Corp.

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

United

States

9,449

739,951

PACCAR,

Inc.

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

United

States

4,922

487,130

a

Proterra,

Inc.

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

United

States

11,400

42,978

Rational

AG

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

Germany

69

40,972

Snap-on,

Inc.

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

United

States

1,567

358,044

Timken

Co.

(The)

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

United

States

1,992

140,775

Volvo

AB,

A

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

Sweden

2,222

42,185

Xylem,

Inc.

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

United

States

2,400

265,368

9,343,080

Marine

0.1%

AP

Moller

-

Maersk

A/S,

A

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

Denmark

94

207,151

SITC

International

Holdings

Co.

Ltd.

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

China

38,000

84,226

291,377

Media

1.0%

a,b

Ascential

plc,

Reg

S

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

United

Kingdom

275,000

670,214

Cable

One,

Inc.

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

United

States

261

185,795

a

Charter

Communications,

Inc.,

A

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

United

States

3,507

1,189,224

Comcast

Corp.,

A

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

United

States

40,337

1,410,585

CyberAgent,

Inc.

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

Japan

62,000

551,783

a

DISH

Network

Corp.,

A

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

United

States

45,605

640,294

Nexstar

Media

Group,

Inc.,

A

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

United

States

752

131,623

a

S4

Capital

plc

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

United

Kingdom

118,420

270,756

a

Viaplay

Group

AB,

B

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

Sweden

34,000

648,999

5,699,273

Metals

&

Mining

0.7%

BHP

Group

Ltd.

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

Australia

29,207

904,677

Fortescue

Metals

Group

Ltd.

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

Australia

24,096

336,769

Freeport-McMoRan,

Inc.

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

United

States

8,568

325,584

Glencore

plc

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

Australia

68,674

457,944

Nucor

Corp.

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

United

States

4,375

576,669

Rio

Tinto

Ltd.

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

Australia

4,822

380,551

Steel

Dynamics,

Inc.

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

United

States

717

70,051

Sumitomo

Metal

Mining

Co.

Ltd.

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

Japan

16,265

571,337

3,623,582

Multiline

Retail

0.1%

Macy's,

Inc.

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

United

States

8,383

173,109

Next

plc

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

United

Kingdom

668

46,805

Seria

Co.

Ltd.

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

Japan

13,948

304,760

524,674

Multi-Utilities

0.8%

Consolidated

Edison,

Inc.

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

United

States

6,182

589,207

E.ON

SE

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

Germany

71,713

712,938

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-22

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Multi-Utilities

(continued)

Engie

SA

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

France

11,230

$

160,650

Sempra

Energy

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

United

States

19,197

2,966,704

4,429,499

Oil,

Gas

&

Consumable

Fuels

2.6%

APA

Corp.

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

United

States

7,418

346,272

BP

plc

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

United

Kingdom

390,799

2,254,794

Chesapeake

Energy

Corp.

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

United

States

3,517

331,899

Chevron

Corp.

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

United

States

14,294

2,565,630

ConocoPhillips

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

United

States

27,073

3,194,614

Devon

Energy

Corp.

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

United

States

1,344

82,669

EQT

Corp.

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

United

States

1,968

66,577

Equinor

ASA

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

Norway

20,971

753,527

Exxon

Mobil

Corp.

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

United

States

7,724

851,957

Galp

Energia

SGPS

SA,

B

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

Portugal

37,727

508,938

OMV

AG

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

Austria

1,794

92,281

Shell

plc

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

Netherlands

64,661

1,822,771

TotalEnergies

SE

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

France

9,787

614,333

Valero

Energy

Corp.

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

United

States

8,771

1,112,689

14,598,951

Personal

Products

0.5%

Beiersdorf

AG

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

Germany

961

109,810

Estee

Lauder

Cos.,

Inc.

(The),

A

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

United

States

3,410

846,055

a

Haleon

plc,

ADR

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

United

States

124,280

994,240

L'Oreal

SA

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

France

2,442

874,434

2,824,539

Pharmaceuticals

2.7%

AstraZeneca

plc

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

United

Kingdom

5,317

719,464

AstraZeneca

plc,

ADR

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

United

Kingdom

5,614

380,629

Bayer

AG

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

Germany

27,006

1,389,937

a

Catalent,

Inc.

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

United

States

6,689

301,072

Eli

Lilly

&

Co.

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

United

States

3,062

1,120,202

GSK

plc

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

United

States

50,567

873,925

Hikma

Pharmaceuticals

plc

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

Jordan

39,000

726,770

Ipsen

SA

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

France

1,084

116,590

Johnson

&

Johnson

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

United

States

10,437

1,843,696

Merck

&

Co.,

Inc.

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

United

States

22,401

2,485,391

Novo

Nordisk

A/S,

B

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

Denmark

7,451

1,011,903

Orion

OYJ,

B

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

Finland

2,994

164,133

Pfizer,

Inc.

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

United

States

24,551

1,257,993

Roche

Holding

AG

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

United

States

3,026

950,831

Roche

Holding

AG,

BR

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

United

States

342

132,517

Sanofi

SA

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

France

2,557

246,551

Zoetis,

Inc.

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

United

States

6,521

955,653

14,677,257

Professional

Services

0.7%

Adecco

Group

AG

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

Switzerland

19,734

649,112

Booz

Allen

Hamilton

Holding

Corp.

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

United

States

1,707

178,416

a

Clarivate

plc

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

United

States

69,000

575,460

a

CoStar

Group,

Inc.

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

United

States

4,000

309,120

Equifax,

Inc.

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

United

States

1,090

211,852

Experian

plc

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

United

Kingdom

27,000

914,407

Persol

Holdings

Co.

Ltd.

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

Japan

2,300

48,904

Randstad

NV

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

Netherlands

3,239

197,901

RELX

plc

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

United

Kingdom

3,900

107,823

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-23

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Professional

Services

(continued)

Robert

Half

International,

Inc.

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

United

States

1,589

$

117,316

Verisk

Analytics,

Inc.

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

United

States

661

116,614

Wolters

Kluwer

NV

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

Netherlands

5,420

567,097

3,994,022

Real

Estate

Management

&

Development

0.2%

a

CBRE

Group,

Inc.,

A

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

United

States

2,661

204,790

CK

Asset

Holdings

Ltd.

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

Hong

Kong

12,000

73,599

Daito

Trust

Construction

Co.

Ltd.

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

Japan

500

51,174

a

Fastighets

AB

Balder,

B

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

Sweden

16,655

77,729

Hulic

Co.

Ltd.

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

Japan

10,700

83,994

a

Jones

Lang

LaSalle,

Inc.

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

United

States

1,495

238,258

Nomura

Real

Estate

Holdings,

Inc.

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

Japan

3,600

76,952

Swire

Pacific

Ltd.,

A

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

Hong

Kong

15,500

135,873

942,369

Road

&

Rail

0.5%

a

Avis

Budget

Group,

Inc.

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

United

States

950

155,733

Canadian

Pacific

Railway

Ltd.

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

Canada

5,360

399,802

a

Hertz

Global

Holdings,

Inc.

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

United

States

6,558

100,928

JB

Hunt

Transport

Services,

Inc.

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

United

States

1,150

200,514

Kintetsu

Group

Holdings

Co.

Ltd.

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

Japan

5,500

181,527

Ryder

System,

Inc.

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

United

States

1,589

132,793

a

Uber

Technologies,

Inc.

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

United

States

20,982

518,885

Union

Pacific

Corp.

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

United

States

5,136

1,063,512

2,753,694

Semiconductors

&

Semiconductor

Equipment

2.5%

Advantest

Corp.

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

Japan

4,700

300,925

ASML

Holding

NV

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

Netherlands

2,161

1,178,234

ASML

Holding

NV,

NYRS

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

Netherlands

2,272

1,241,421

Broadcom,

Inc.

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

United

States

359

200,728

a

Cirrus

Logic,

Inc.

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

United

States

1,743

129,819

Disco

Corp.

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

Japan

200

56,985

Infineon

Technologies

AG

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

Germany

24,968

758,790

Intel

Corp.

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

United

States

33,042

873,300

KLA

Corp.

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

United

States

235

88,602

Microchip

Technology,

Inc.

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

United

States

1,867

131,157

Monolithic

Power

Systems,

Inc.

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

United

States

1,200

424,332

NVIDIA

Corp.

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

United

States

13,400

1,958,276

NXP

Semiconductors

NV

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

China

4,875

770,396

a

ON

Semiconductor

Corp.

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

United

States

8,862

552,723

QUALCOMM,

Inc.

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

United

States

11,083

1,218,465

STMicroelectronics

NV

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

Singapore

16,447

584,434

SUMCO

Corp.

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

Japan

9,800

129,792

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

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

Taiwan

49,586

720,266

Texas

Instruments,

Inc.

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

United

States

13,468

2,225,183

13,543,828

Software

4.6%

a

Adobe,

Inc.

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

United

States

2,156

725,559

a

Atlassian

Corp.,

A

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

United

States

3,547

456,428

a

Autodesk,

Inc.

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

United

States

1,942

362,902

AVEVA

Group

plc

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

United

Kingdom

22,000

851,520

a

Bill.com

Holdings,

Inc.

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

United

States

2,700

294,192

a

Cadence

Design

Systems,

Inc.

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

United

States

8,345

1,340,541

a

Check

Point

Software

Technologies

Ltd.

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

Israel

2,369

298,873

a

Crowdstrike

Holdings,

Inc.,

A

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

United

States

300

31,587

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-24

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Software

(continued)

a

CyberArk

Software

Ltd.

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

United

States

7,200

$

933,480

a

Fair

Isaac

Corp.

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

United

States

760

454,921

a

Fortinet,

Inc.

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

United

States

15,564

760,924

a

Gitlab,

Inc.,

A

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

United

States

300

13,632

Intuit,

Inc.

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

United

States

2,185

850,446

a

Manhattan

Associates,

Inc.

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

United

States

1,941

235,637

Microsoft

Corp.

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

United

States

38,775

9,299,020

a

Nice

Ltd.,

ADR

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

Israel

4,600

884,580

Oracle

Corp.

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

United

States

9,966

814,621

a

Palo

Alto

Networks,

Inc.

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

United

States

5,597

781,005

a

Paycom

Software,

Inc.

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

United

States

400

124,124

a

Procore

Technologies,

Inc.

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

United

States

200

9,436

a

PTC,

Inc.

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

United

States

3,021

362,641

Sage

Group

plc

(The)

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

United

Kingdom

28,337

255,156

a

Salesforce,

Inc.

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

United

States

6,306

836,113

a

ServiceNow,

Inc.

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

United

States

2,155

836,722

SimCorp

A/S

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

Denmark

12,500

860,613

a

Splunk,

Inc.

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

United

States

5,427

467,210

a

Synopsys,

Inc.

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

United

States

2,165

691,263

a

Teradata

Corp.

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

United

States

3,120

105,019

a

Trend

Micro,

Inc.

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

Japan

900

42,076

a

Tyler

Technologies,

Inc.

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

United

States

496

159,915

a

Unity

Software,

Inc.

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

United

States

3,894

111,329

a

VMware,

Inc.,

A

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

United

States

2,352

288,732

WiseTech

Global

Ltd.

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

Australia

4,348

149,527

a

Workday,

Inc.,

A

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

United

States

4,989

834,809

25,524,553

Specialty

Retail

0.8%

Advance

Auto

Parts,

Inc.

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

United

States

3,038

446,677

a

AutoNation,

Inc.

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

United

States

781

83,801

a

AutoZone,

Inc.

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

United

States

219

540,093

Home

Depot,

Inc.

(The)

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

United

States

4,875

1,539,817

Industria

de

Diseno

Textil

SA

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

Spain

8,661

230,035

JD

Sports

Fashion

plc

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

United

Kingdom

32,614

49,559

Lowe's

Cos.,

Inc.

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

United

States

387

77,106

Penske

Automotive

Group,

Inc.

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

United

States

821

94,358

Tractor

Supply

Co.

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

United

States

909

204,498

a

Ulta

Beauty,

Inc.

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

United

States

1,308

613,544

USS

Co.

Ltd.

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

Japan

3,300

52,343

a

Victoria's

Secret

&

Co.

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

United

States

2,186

78,215

Williams-Sonoma,

Inc.

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

United

States

2,129

244,665

4,254,711

Technology

Hardware,

Storage

&

Peripherals

1.6%

Apple,

Inc.

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

United

States

55,597

7,223,718

Brother

Industries

Ltd.

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

Japan

2,800

42,304

Elecom

Co.

Ltd.

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

Japan

14,000

143,443

Hewlett

Packard

Enterprise

Co.

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

United

States

5,731

91,467

a

Pure

Storage,

Inc.,

A

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

United

States

2,653

70,994

Samsung

Electronics

Co.

Ltd.

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

South

Korea

23,631

1,041,603

Seiko

Epson

Corp.

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

Japan

8,700

126,533

8,740,062

Textiles,

Apparel

&

Luxury

Goods

0.5%

Burberry

Group

plc

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

United

Kingdom

11,806

287,018

a

Deckers

Outdoor

Corp.

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

United

States

321

128,130

Hermes

International

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

France

109

168,708

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-25

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Textiles,

Apparel

&

Luxury

Goods

(continued)

a

Lululemon

Athletica,

Inc.

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

United

States

464

$

148,656

LVMH

Moet

Hennessy

Louis

Vuitton

SE

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

France

882

641,796

NIKE,

Inc.,

B

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

United

States

12,321

1,441,680

Pandora

A/S

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

Denmark

1,830

129,340

Swatch

Group

AG

(The)

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

Switzerland

1,512

78,615

3,023,943

Thrifts

&

Mortgage

Finance

0.0%

†

MGIC

Investment

Corp.

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

United

States

9,665

125,645

Tobacco

0.4%

Altria

Group,

Inc.

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

United

States

9,657

441,421

Imperial

Brands

plc

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

United

Kingdom

46,828

1,166,491

Philip

Morris

International,

Inc.

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

United

States

1,410

142,706

Swedish

Match

AB

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

Sweden

17,324

188,500

1,939,118

Trading

Companies

&

Distributors

0.4%

Fastenal

Co.

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

United

States

7,200

340,704

Marubeni

Corp.

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

Japan

14,700

168,345

Mitsubishi

Corp.

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

Japan

14,100

457,597

RS

Group

plc

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

United

Kingdom

12,000

129,200

WW

Grainger,

Inc.

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

United

States

2,021

1,124,181

2,220,027

Water

Utilities

0.1%

American

Water

Works

Co.,

Inc.

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

United

States

1,619

246,768

Essential

Utilities,

Inc.

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

United

States

1,626

77,609

324,377

Wireless

Telecommunication

Services

0.1%

KDDI

Corp.

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

Japan

17,400

527,507

a

T-Mobile

US,

Inc.

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

United

States

1,022

143,080

670,587

Total

Common

Stocks

(Cost

$287,772,420)

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

316,019,561

Management

Investment

Companies

2.1%

Capital

Markets

2.1%

Schwab

U.S.

TIPS

ETF

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

United

States

219,598

11,372,981

Total

Management

Investment

Companies

(Cost

$13,506,924)

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

11,372,981

Preferred

Stocks

0.0%

†

Life

Sciences

Tools

&

Services

0.0%

†

c

Sartorius

AG,

0.34%

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

Germany

250

98,714

Total

Preferred

Stocks

(Cost

$89,180)

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

98,714

Units

Private

Limited

Partnership

Funds

0.3%

Oil,

Gas

&

Consumable

Fuels

0.3%

Enterprise

Products

Partners

LP

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

United

States

61,784

1,490,230

Total

Private

Limited

Partnership

Funds

(Cost

$1,583,439)

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

1,490,230

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

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

10.5%

Aerospace

&

Defense

0.2%

Boeing

Co.

(The)

,

Senior

Bond,

3.2%,

3/01/29

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

United

States

20,000

$

17,578

Senior

Bond,

3.25%,

2/01/35

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

United

States

30,000

22,905

Senior

Bond,

3.5%,

3/01/39

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

United

States

200,000

144,930

Senior

Bond,

5.705%,

5/01/40

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

United

States

30,000

28,735

Senior

Bond,

5.805%,

5/01/50

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

United

States

60,000

55,936

Senior

Bond,

5.93%,

5/01/60

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

United

States

20,000

18,326

Senior

Note,

4.875%,

5/01/25

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

United

States

70,000

69,527

Senior

Note,

2.196%,

2/04/26

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

United

States

350,000

318,384

Senior

Note,

5.15%,

5/01/30

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

United

States

50,000

48,905

General

Dynamics

Corp.

,

Senior

Bond

,

4.25

%

,

4/01/50

.........

United

States

10,000

8,927

Lockheed

Martin

Corp.

,

Senior

Bond,

3.9%,

6/15/32

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

United

States

10,000

9,453

Senior

Bond,

4.15%,

6/15/53

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

United

States

50,000

42,692

Northrop

Grumman

Corp.

,

Senior

Bond,

3.25%,

1/15/28

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

United

States

10,000

9,240

Senior

Bond,

5.25%,

5/01/50

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

United

States

190,000

188,215

Senior

Note,

2.93%,

1/15/25

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

United

States

20,000

19,196

Raytheon

Technologies

Corp.

,

Senior

Bond,

4.125%,

11/16/28

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

United

States

20,000

19,183

Senior

Bond,

4.5%,

6/01/42

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

United

States

300,000

271,201

Senior

Bond,

4.15%,

5/15/45

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

United

States

20,000

16,772

Senior

Bond,

3.125%,

7/01/50

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

United

States

30,000

21,144

1,331,249

Air

Freight

&

Logistics

0.1%

FedEx

Corp.

,

Senior

Bond

,

5.1

%

,

1/15/44

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

United

States

400,000

356,596

United

Parcel

Service,

Inc.

,

Senior

Bond

,

3.75

%

,

11/15/47

.......

United

States

100,000

82,255

438,851

Airlines

0.0%

†

b

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.

,

Senior

Secured

Note,

144A,

4.5%,

10/20/25

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

United

States

255,000

248,912

Senior

Secured

Note,

144A,

4.75%,

10/20/28

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

United

States

30,000

28,245

277,157

Automobiles

0.0%

†

General

Motors

Co.

,

Senior

Bond

,

6.6

%

,

4/01/36

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

United

States

20,000

19,659

Banks

2.3%

b

Banco

de

Chile

,

Senior

Bond

,

144A,

2.99

%

,

12/09/31

..........

Chile

200,000

170,404

Bancolombia

SA

,

Senior

Note

,

3

%

,

1/29/25

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

Colombia

250,000

237,235

Bank

of

America

Corp.

,

Senior

Bond,

3.419%

to

12/19/27,

FRN

thereafter,

12/20/28

...

United

States

80,000

72,577

Senior

Bond,

2.572%

to

10/19/31,

FRN

thereafter,

10/20/32

...

United

States

90,000

70,711

Senior

Bond,

4.571%

to

4/26/32,

FRN

thereafter,

4/27/33

.....

United

States

70,000

64,227

Senior

Bond,

5%,

1/21/44

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

United

States

20,000

18,484

Senior

Bond,

4.083%

to

3/19/50,

FRN

thereafter,

3/20/51

.....

United

States

100,000

78,741

Senior

Note,

3.55%

to

3/04/23,

FRN

thereafter,

3/05/24

.......

United

States

30,000

29,889

Senior

Note,

3.864%

to

7/22/23,

FRN

thereafter,

7/23/24

......

United

States

200,000

198,233

Senior

Note,

1.319%

to

6/18/25,

FRN

thereafter,

6/19/26

......

United

States

150,000

135,207

Senior

Note,

6.204%

to

11/09/27,

FRN

thereafter,

11/10/28

....

United

States

1,030,000

1,065,297

Sub.

Bond,

4%,

1/22/25

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

United

States

20,000

19,591

Sub.

Bond,

4.25%,

10/22/26

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

United

States

100,000

96,735

Sub.

Bond,

2.482%

to

9/20/31,

FRN

thereafter,

9/21/36

.......

United

States

10,000

7,371

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-27

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Banks

(continued)

Bank

of

America

Corp.,

(continued)

L,

Sub.

Bond,

4.183%,

11/25/27

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

United

States

200,000

$

190,045

Bank

of

Montreal

,

Senior

Note

,

1.85

%

,

5/01/25

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

Canada

30,000

28,049

Bank

of

Nova

Scotia

(The)

,

Senior

Note,

3.45%,

4/11/25

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

Canada

50,000

48,160

Sub.

Bond,

4.588%

to

5/03/32,

FRN

thereafter,

5/04/37

.......

Canada

10,000

8,560

b

BNP

Paribas

SA

,

Senior

Note,

144A,

2.819%

to

11/18/24,

FRN

thereafter,

11/19/25

France

200,000

189,597

Senior

Note,

144A,

1.675%

to

6/29/26,

FRN

thereafter,

6/30/27

.

France

200,000

174,292

Canadian

Imperial

Bank

of

Commerce

,

Senior

Note

,

0.95

%

,

6/23/23

Canada

20,000

19,631

Citigroup,

Inc.

,

Senior

Bond,

2.572%

to

6/02/30,

FRN

thereafter,

6/03/31

.....

United

States

540,000

437,938

Senior

Bond,

4.91%

to

5/23/32,

FRN

thereafter,

5/24/33

......

United

States

80,000

75,145

Senior

Bond,

2.904%

to

11/02/41,

FRN

thereafter,

11/03/42

....

United

States

30,000

20,817

Senior

Note,

4.044%

to

5/31/23,

FRN

thereafter,

6/01/24

......

United

States

400,000

397,401

Senior

Note,

3.352%

to

4/23/24,

FRN

thereafter,

4/24/25

......

United

States

750,000

727,640

Senior

Note,

3.29%

to

3/16/25,

FRN

thereafter,

3/17/26

.......

United

States

40,000

38,055

Senior

Note,

4.658%

to

5/23/27,

FRN

thereafter,

5/24/28

......

United

States

120,000

116,321

Sub.

Bond,

5.5%,

9/13/25

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

United

States

20,000

20,143

Sub.

Bond,

4.45%,

9/29/27

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

United

States

60,000

57,305

Sub.

Bond,

5.3%,

5/06/44

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

United

States

20,000

18,118

b,d

Commonwealth

Bank

of

Australia

,

Senior

Note

,

144A,

FRN

,

5.049

%

,

(

SOFR

+

0.74

%

),

3/14/25

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

Australia

250,000

249,042

b

Cooperatieve

Rabobank

UA

,

Senior

Note

,

144A,

3.649%

to

4/05/27,

FRN

thereafter

,

4/06/28

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

Netherlands

250,000

230,702

HSBC

Holdings

plc

,

Senior

Note,

0.976%

to

5/23/24,

FRN

thereafter,

5/24/25

......

United

Kingdom

200,000

185,280

Senior

Note,

1.645%

to

8/17/25,

FRN

thereafter,

4/18/26

......

United

Kingdom

525,000

474,304

Senior

Note,

1.589%

to

5/23/26,

FRN

thereafter,

5/24/27

......

United

Kingdom

200,000

172,673

Senior

Note,

4.755%

to

6/08/27,

FRN

thereafter,

6/09/28

......

United

Kingdom

200,000

189,351

JPMorgan

Chase

&

Co.

,

Senior

Bond,

3.54%

to

4/30/27,

FRN

thereafter,

5/01/28

......

United

States

1,200,000

1,106,070

Senior

Bond,

4.452%

to

12/04/28,

FRN

thereafter,

12/05/29

...

United

States

60,000

56,482

Senior

Bond,

2.545%

to

11/07/31,

FRN

thereafter,

11/08/32

....

United

States

30,000

23,789

Senior

Bond,

3.109%

to

4/21/50,

FRN

thereafter,

4/22/51

.....

United

States

20,000

13,191

Senior

Note,

1.514%

to

5/31/23,

FRN

thereafter,

6/01/24

......

United

States

50,000

49,193

Senior

Note,

2.083%

to

4/21/25,

FRN

thereafter,

4/22/26

......

United

States

80,000

74,332

Senior

Note,

4.565%

to

6/13/29,

FRN

thereafter,

6/14/30

......

United

States

60,000

56,581

Sub.

Bond,

3.625%,

12/01/27

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

United

States

60,000

55,569

Sub.

Bond,

2.956%

to

5/12/30,

FRN

thereafter,

5/13/31

.......

United

States

200,000

165,231

Sub.

Bond,

4.95%,

6/01/45

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

United

States

20,000

17,965

KeyBank

NA

,

Senior

Note

,

4.15

%

,

8/08/25

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

United

States

250,000

244,493

Mitsubishi

UFJ

Financial

Group,

Inc.

,

Senior

Note

,

5.063%

to

9/11/24,

FRN

thereafter

,

9/12/25

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

Japan

200,000

198,707

b

Nordea

Bank

Abp

,

Senior

Note

,

144A,

4.75

%

,

9/22/25

..........

Finland

200,000

198,946

e

PNC

Financial

Services

Group,

Inc.

(The)

,

T

,

Junior

Sub.

Bond

,

3.4%

to

9/14/26,

FRN

thereafter

,

Perpetual

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

United

States

400,000

318,000

Royal

Bank

of

Canada

,

Senior

Bond,

3.875%,

5/04/32

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

Canada

50,000

45,674

Senior

Note,

1.6%,

4/17/23

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

Canada

30,000

29,744

Senior

Note,

1.15%,

6/10/25

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

Canada

20,000

18,325

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

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)

Banks

(continued)

Santander

UK

Group

Holdings

plc

,

Senior

Note

,

1.673%

to

6/23/26,

FRN

thereafter

,

6/14/27

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

United

Kingdom

200,000

$

170,289

b

Societe

Generale

SA

,

Senior

Note

,

144A,

1.792%

to

6/08/26,

FRN

thereafter

,

6/09/27

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

France

200,000

172,315

b

Standard

Chartered

plc

,

Senior

Bond

,

144A,

4.05

%

,

4/12/26

.....

United

Kingdom

470,000

454,678

SVB

Financial

Group

,

Senior

Bond

,

3.125

%

,

6/05/30

...........

United

States

100,000

83,000

Toronto-Dominion

Bank

(The)

,

Senior

Bond,

4.456%,

6/08/32

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

Canada

10,000

9,562

Senior

Note,

0.75%,

6/12/23

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

Canada

30,000

29,465

Senior

Note,

1.15%,

6/12/25

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

Canada

20,000

18,263

Senior

Note,

4.693%,

9/15/27

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

Canada

200,000

198,059

Truist

Financial

Corp.

,

Senior

Note,

5.9%

to

10/27/25,

FRN

thereafter,

10/28/26

......

United

States

150,000

153,510

Sub.

Bond,

3.875%,

3/19/29

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

United

States

760,000

702,469

b

UniCredit

SpA

,

Senior

Note

,

144A,

1.982%

to

6/02/26,

FRN

thereafter

,

6/03/27

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

Italy

300,000

256,097

US

Bancorp

,

Senior

Note,

1.45%,

5/12/25

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

United

States

40,000

37,124

Senior

Note,

5.727%

to

10/20/25,

FRN

thereafter,

10/21/26

....

United

States

100,000

101,960

Wells

Fargo

&

Co.

,

Senior

Bond,

2.879%

to

10/29/29,

FRN

thereafter,

10/30/30

...

United

States

150,000

127,731

Senior

Bond,

3.35%

to

3/01/32,

FRN

thereafter,

3/02/33

......

United

States

30,000

25,353

Senior

Bond,

5.013%

to

4/03/50,

FRN

thereafter,

4/04/51

.....

United

States

220,000

194,925

Senior

Note,

1.654%

to

6/01/23,

FRN

thereafter,

6/02/24

......

United

States

40,000

39,360

Senior

Note,

2.188%

to

4/29/25,

FRN

thereafter,

4/30/26

......

United

States

60,000

55,891

Senior

Note,

4.54%

to

8/14/25,

FRN

thereafter,

8/15/26

.......

United

States

100,000

98,095

Senior

Note,

4.808%

to

7/24/27,

FRN

thereafter,

7/25/28

......

United

States

850,000

831,592

Sub.

Bond,

4.3%,

7/22/27

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

United

States

60,000

57,838

Sub.

Bond,

4.9%,

11/17/45

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

United

States

90,000

77,897

12,901,036

Beverages

0.1%

Anheuser-Busch

Cos.

LLC

/

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond,

4.9%,

2/01/46

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

Belgium

100,000

91,411

Senior

Note,

3.65%,

2/01/26

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

Belgium

30,000

28,907

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond,

4.75%,

1/23/29

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

Belgium

60,000

59,354

Senior

Bond,

3.5%,

6/01/30

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

Belgium

420,000

383,358

Senior

Bond,

4.35%,

6/01/40

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

Belgium

30,000

26,491

Senior

Bond,

5.8%,

1/23/59

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

Belgium

150,000

154,408

Coca-Cola

Co.

(The)

,

Senior

Bond,

2.5%,

6/01/40

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

United

States

10,000

7,327

Senior

Note,

1.45%,

6/01/27

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

United

States

20,000

17,686

Constellation

Brands,

Inc.

,

Senior

Note,

3.6%,

5/09/24

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

United

States

10,000

9,808

Senior

Note,

4.35%,

5/09/27

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

United

States

10,000

9,754

PepsiCo,

Inc.

,

Senior

Bond

,

1.625

%

,

5/01/30

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

United

States

10,000

8,157

796,661

Biotechnology

0.2%

AbbVie,

Inc.

,

Senior

Bond,

4.85%,

6/15/44

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

United

States

400,000

368,360

Senior

Bond,

4.75%,

3/15/45

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

United

States

100,000

90,297

Senior

Bond,

4.25%,

11/21/49

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

United

States

40,000

33,401

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-29

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Biotechnology

(continued)

AbbVie,

Inc.,

(continued)

Senior

Note,

2.6%,

11/21/24

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

United

States

100,000

$

95,738

Senior

Note,

2.95%,

11/21/26

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

United

States

40,000

37,255

Senior

Note,

3.2%,

11/21/29

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

United

States

90,000

81,338

Amgen,

Inc.

,

Senior

Bond

,

2.45

%

,

2/21/30

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

United

States

680,000

573,704

Gilead

Sciences,

Inc.

,

Senior

Bond,

3.65%,

3/01/26

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

United

States

10,000

9,652

Senior

Bond,

4.75%,

3/01/46

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

United

States

10,000

9,050

1,298,795

Building

Products

0.1%

Carrier

Global

Corp.

,

Senior

Bond

,

3.577

%

,

4/05/50

...........

United

States

230,000

165,052

Fortune

Brands

Innovations,

Inc.

,

Senior

Bond

,

4

%

,

3/25/32

.....

United

States

200,000

173,949

339,001

Capital

Markets

0.6%

Credit

Suisse

AG

,

Senior

Note

,

1.25

%

,

8/07/26

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

Switzerland

250,000

202,568

Deutsche

Bank

AG

,

Senior

Note

,

5.371

%

,

9/09/27

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

Germany

150,000

150,592

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Bond,

3.5%,

1/23/25

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

United

States

425,000

410,882

Senior

Bond,

3.691%

to

6/04/27,

FRN

thereafter,

6/05/28

.....

United

States

140,000

130,296

Senior

Bond,

2.65%

to

10/20/31,

FRN

thereafter,

10/21/32

....

United

States

70,000

55,444

Senior

Bond,

2.908%

to

7/20/41,

FRN

thereafter,

7/21/42

.....

United

States

40,000

27,349

Senior

Note,

3.625%,

2/20/24

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

United

States

40,000

39,326

Senior

Note,

5.7%,

11/01/24

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

United

States

230,000

232,904

Senior

Note,

3.5%,

4/01/25

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

United

States

40,000

38,500

Senior

Note,

1.948%

to

10/20/26,

FRN

thereafter,

10/21/27

....

United

States

200,000

175,138

Sub.

Bond,

4.25%,

10/21/25

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

United

States

200,000

195,401

Sub.

Bond,

5.15%,

5/22/45

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

United

States

50,000

45,149

Intercontinental

Exchange,

Inc.

,

Senior

Bond

,

4.6

%

,

3/15/33

.....

United

States

20,000

19,232

b

Macquarie

Group

Ltd.

,

Senior

Note

,

144A,

6.207

%

,

11/22/24

.....

Australia

240,000

241,737

Morgan

Stanley

,

Senior

Bond,

3.591%

to

7/21/27,

FRN

thereafter,

7/22/28

.....

United

States

860,000

790,189

Senior

Bond,

3.772%

to

1/23/28,

FRN

thereafter,

1/24/29

.....

United

States

40,000

36,699

Senior

Bond,

3.622%

to

3/31/30,

FRN

thereafter,

4/01/31

.....

United

States

300,000

262,579

Senior

Bond,

2.511%

to

10/19/31,

FRN

thereafter,

10/20/32

....

United

States

100,000

78,524

Senior

Note,

2.188%

to

4/27/25,

FRN

thereafter,

4/28/26

......

United

States

50,000

46,506

b

UBS

Group

AG

,

Senior

Note

,

144A,

4.488%

to

5/11/25,

FRN

thereafter

,

5/12/26

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

Switzerland

200,000

195,653

3,374,668

Commercial

Services

&

Supplies

0.0%

†

Cintas

Corp.

No.

2

,

Senior

Bond,

3.7%,

4/01/27

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

United

States

10,000

9,655

Senior

Bond,

4%,

5/01/32

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

United

States

10,000

9,419

RELX

Capital,

Inc.

,

Senior

Bond

,

3

%

,

5/22/30

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

United

Kingdom

300,000

256,331

Republic

Services,

Inc.

,

Senior

Note

,

2.5

%

,

8/15/24

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

United

States

10,000

9,589

284,994

Consumer

Finance

0.2%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

,

Senior

Note

,

2.45

%

,

10/29/26

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

Ireland

150,000

131,361

American

Express

Co.

,

Senior

Note,

2.5%,

7/30/24

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

United

States

70,000

67,362

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

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)

Consumer

Finance

(continued)

American

Express

Co.,

(continued)

Senior

Note,

4.05%,

5/03/29

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

United

States

30,000

$

28,633

Capital

One

Financial

Corp.

,

Senior

Bond

,

3.75

%

,

3/09/27

.......

United

States

435,000

413,999

John

Deere

Capital

Corp.

,

Senior

Bond,

3.9%,

6/07/32

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

United

States

75,000

70,251

Senior

Bond,

4.35%,

9/15/32

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

United

States

200,000

194,923

906,529

Containers

&

Packaging

0.0%

†

WRKCo,

Inc.

,

Senior

Bond

,

3

%

,

6/15/33

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

United

States

135,000

107,597

Diversified

Financial

Services

0.2%

b

EDP

Finance

BV

,

Senior

Note

,

144A,

1.71

%

,

1/24/28

..........

Portugal

400,000

330,777

b

NTT

Finance

Corp.

,

Senior

Bond

,

144A,

2.065

%

,

4/03/31

.......

Japan

500,000

401,441

Shell

International

Finance

BV

,

Senior

Bond,

2.875%,

5/10/26

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

Netherlands

20,000

18,859

Senior

Bond,

2.75%,

4/06/30

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

Netherlands

50,000

43,988

Senior

Bond,

4%,

5/10/46

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

Netherlands

20,000

16,404

Senior

Bond,

3.25%,

4/06/50

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

Netherlands

40,000

28,884

840,353

Diversified

Telecommunication

Services

0.3%

AT&T,

Inc.

,

Senior

Bond,

2.55%,

12/01/33

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

United

States

40,000

30,858

Senior

Bond,

3.5%,

9/15/53

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

United

States

40,000

27,177

Senior

Bond,

3.55%,

9/15/55

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

United

States

30,000

20,152

Senior

Bond,

3.65%,

9/15/59

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

United

States

10,000

6,739

Senior

Note,

1.65%,

2/01/28

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

United

States

100,000

84,623

Orange

SA

,

Senior

Bond

,

9

%

,

3/01/31

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

France

100,000

122,639

Verizon

Communications,

Inc.

,

Senior

Bond,

2.625%,

8/15/26

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

United

States

40,000

36,965

Senior

Bond,

2.55%,

3/21/31

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

United

States

200,000

164,965

Senior

Bond,

4.5%,

8/10/33

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

United

States

100,000

93,891

Senior

Bond,

2.85%,

9/03/41

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

United

States

200,000

138,403

Senior

Bond,

3.85%,

11/01/42

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

United

States

100,000

79,698

Senior

Bond,

2.875%,

11/20/50

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

United

States

70,000

44,188

Senior

Note,

2.1%,

3/22/28

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

United

States

40,000

34,785

Senior

Note,

2.355%,

3/15/32

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

United

States

850,000

676,046

1,561,129

Electric

Utilities

0.5%

b

American

Transmission

Systems,

Inc.

,

Senior

Bond

,

144A,

2.65

%

,

1/15/32

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

United

States

20,000

16,467

b

Cleveland

Electric

Illuminating

Co.

(The)

,

Senior

Bond

,

144A,

3.5

%

,

4/01/28

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

United

States

10,000

9,130

Commonwealth

Edison

Co.

,

Senior

Bond

,

4

%

,

3/01/48

.........

United

States

200,000

165,335

Duke

Energy

Corp.

,

Senior

Bond

,

3.15

%

,

8/15/27

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

United

States

10,000

9,243

Duke

Energy

Florida

LLC

,

Senior

Bond

,

6.4

%

,

6/15/38

.........

United

States

200,000

220,297

b

Enel

Finance

International

NV

,

Senior

Bond

,

144A,

2.25

%

,

7/12/31

Italy

200,000

145,972

Exelon

Corp.

,

Senior

Bond,

4.05%,

4/15/30

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

United

States

650,000

605,017

Senior

Bond,

5.625%,

6/15/35

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

United

States

10,000

10,173

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-31

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Electric

Utilities

(continued)

Georgia

Power

Co.

,

Senior

Bond

,

4.3

%

,

3/15/42

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

United

States

700,000

$

604,162

MidAmerican

Energy

Co.

,

Senior

Bond

,

3.65

%

,

4/15/29

.........

United

States

20,000

18,742

b

Mid-Atlantic

Interstate

Transmission

LLC

,

Senior

Bond

,

144A,

4.1

%

,

5/15/28

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

United

States

10,000

9,429

Pacific

Gas

and

Electric

Co.

,

Senior

Bond,

2.5%,

2/01/31

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

United

States

10,000

7,782

Senior

Bond,

3.3%,

8/01/40

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

United

States

10,000

6,805

Senior

Bond,

3.5%,

8/01/50

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

United

States

10,000

6,249

Senior

Note,

2.1%,

8/01/27

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

United

States

10,000

8,555

PacifiCorp

,

Senior

Bond

,

5.35

%

,

12/01/53

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

United

States

375,000

373,466

Southern

Co.

(The)

,

A

,

Senior

Bond

,

3.7

%

,

4/30/30

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

United

States

300,000

271,466

b

Vistra

Operations

Co.

LLC

,

Senior

Secured

Note

,

144A,

3.55

%

,

7/15/24

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

United

States

235,000

225,525

2,713,815

Electrical

Equipment

0.0%

†

Eaton

Corp.

,

Senior

Bond

,

4.15

%

,

11/02/42

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

United

States

10,000

8,592

Emerson

Electric

Co.

,

Senior

Bond

,

2.8

%

,

12/21/51

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

United

States

60,000

38,876

47,468

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

380,531

Entertainment

0.2%

Netflix,

Inc.

,

Senior

Bond

,

5.75

%

,

3/01/24

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

United

States

400,000

403,456

Walt

Disney

Co.

(The)

,

Senior

Bond

,

2.65

%

,

1/13/31

...........

United

States

200,000

171,215

b

Warnermedia

Holdings,

Inc.

,

Senior

Bond,

144A,

4.279%,

3/15/32

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

United

States

70,000

57,839

Senior

Bond,

144A,

5.05%,

3/15/42

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

United

States

210,000

161,411

Senior

Bond,

144A,

5.141%,

3/15/52

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

United

States

50,000

36,541

Senior

Note,

144A,

3.755%,

3/15/27

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

United

States

10,000

9,020

Senior

Note,

144A,

4.054%,

3/15/29

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

United

States

10,000

8,670

848,152

Equity

Real

Estate

Investment

Trusts

(REITs)

0.1%

Essex

Portfolio

LP

,

Senior

Bond

,

2.65

%

,

3/15/32

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

United

States

360,000

284,629

Simon

Property

Group

LP

,

Senior

Note

,

3.375

%

,

12/01/27

.......

United

States

595,000

551,273

835,902

Food

&

Staples

Retailing

0.0%

†

Costco

Wholesale

Corp.

,

Senior

Bond

,

1.75

%

,

4/20/32

.........

United

States

20,000

15,866

Walmart,

Inc.

,

Senior

Note

,

1.5

%

,

9/22/28

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

United

States

10,000

8,589

24,455

Food

Products

0.1%

b

Bimbo

Bakeries

USA,

Inc.

,

Senior

Bond

,

144A,

4

%

,

5/17/51

.....

Mexico

200,000

150,823

b

Cargill,

Inc.

,

Senior

Note

,

144A,

1.375

%

,

7/23/23

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

United

States

20,000

19,597

General

Mills,

Inc.

,

Senior

Note

,

5.241

%

,

11/18/25

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

United

States

225,000

225,640

b

JBS

USA

LUX

SA

/

JBS

USA

Food

Co.

/

JBS

USA

Finance,

Inc.

,

Senior

Note

,

144A,

3.625

%

,

1/15/32

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

United

States

200,000

162,289

Kraft

Heinz

Foods

Co.

,

Senior

Note,

3%,

6/01/26

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

United

States

10,000

9,371

Senior

Note,

3.75%,

4/01/30

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

United

States

100,000

91,301

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

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)

Food

Products

(continued)

b

Mars,

Inc.

,

Senior

Bond,

144A,

3.2%,

4/01/30

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

United

States

30,000

$

26,869

Senior

Bond,

144A,

2.375%,

7/16/40

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

United

States

10,000

6,813

Mondelez

International,

Inc.

,

Senior

Note

,

1.5

%

,

5/04/25

........

United

States

20,000

18,525

711,228

Gas

Utilities

0.1%

Southern

California

Gas

Co.

,

Senior

Bond

,

6.35

%

,

11/15/52

.....

United

States

350,000

385,097

Health

Care

Equipment

&

Supplies

0.1%

Abbott

Laboratories

,

Senior

Bond,

3.75%,

11/30/26

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

United

States

30,000

29,250

Senior

Bond,

4.9%,

11/30/46

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

United

States

10,000

9,806

b

GE

HealthCare

Technologies,

Inc.

,

Senior

Note

,

144A,

5.6

%

,

11/15/25

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

United

States

100,000

100,723

STERIS

Irish

FinCo.

UnLtd.

Co.

,

Senior

Bond

,

3.75

%

,

3/15/51

....

United

States

250,000

178,863

318,642

Health

Care

Providers

&

Services

0.5%

Centene

Corp.

,

Senior

Bond

,

3

%

,

10/15/30

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

United

States

250,000

205,501

Cigna

Corp.

,

Senior

Bond,

2.375%,

3/15/31

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

United

States

100,000

82,085

Senior

Bond,

4.8%,

8/15/38

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

United

States

20,000

18,644

Senior

Bond,

4.9%,

12/15/48

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

United

States

10,000

9,063

Senior

Note,

3.75%,

7/15/23

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

United

States

10,000

9,936

Senior

Note,

4.125%,

11/15/25

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

United

States

10,000

9,781

Senior

Note,

3.05%,

10/15/27

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

United

States

550,000

504,143

Senior

Note,

4.375%,

10/15/28

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

United

States

60,000

57,988

CVS

Health

Corp.

,

Senior

Bond,

3.875%,

7/20/25

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

United

States

10,000

9,768

Senior

Bond,

4.3%,

3/25/28

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

United

States

30,000

29,073

Senior

Bond,

2.125%,

9/15/31

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

United

States

50,000

39,771

Senior

Bond,

4.78%,

3/25/38

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

United

States

40,000

36,597

Senior

Bond,

5.3%,

12/05/43

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

United

States

500,000

469,450

Senior

Bond,

5.125%,

7/20/45

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

United

States

100,000

91,629

Senior

Bond,

5.05%,

3/25/48

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

United

States

40,000

36,106

Senior

Bond,

4.25%,

4/01/50

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

United

States

20,000

16,016

Elevance

Health,

Inc.

,

Senior

Bond,

3.65%,

12/01/27

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

United

States

20,000

18,893

Senior

Bond,

4.1%,

5/15/32

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

United

States

10,000

9,331

Senior

Bond,

5.1%,

1/15/44

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

United

States

400,000

379,115

Senior

Bond,

4.55%,

5/15/52

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

United

States

10,000

8,742

HCA,

Inc.

,

Senior

Secured

Bond

,

4.5

%

,

2/15/27

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

United

States

408,000

393,828

Humana,

Inc.

,

Senior

Bond

,

3.125

%

,

8/15/29

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

United

States

90,000

79,081

Quest

Diagnostics,

Inc.

,

Senior

Bond

,

2.8

%

,

6/30/31

...........

United

States

300,000

252,050

UnitedHealth

Group,

Inc.

,

Senior

Bond,

2.75%,

5/15/40

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

United

States

30,000

21,882

Senior

Bond,

3.25%,

5/15/51

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

United

States

10,000

7,204

Senior

Bond,

3.875%,

8/15/59

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

United

States

30,000

23,639

Senior

Note,

3.75%,

7/15/25

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

United

States

10,000

9,785

Senior

Note,

4%,

5/15/29

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

United

States

20,000

19,144

Senior

Note,

4.2%,

5/15/32

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

United

States

30,000

28,569

2,876,814

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-33

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Hotels,

Restaurants

&

Leisure

0.1%

Las

Vegas

Sands

Corp.

,

Senior

Bond

,

3.9

%

,

8/08/29

...........

United

States

250,000

$

211,109

McDonald's

Corp.

,

Senior

Bond,

4.875%,

12/09/45

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

United

States

10,000

9,293

Senior

Bond,

4.2%,

4/01/50

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

United

States

30,000

25,116

Senior

Note,

1.45%,

9/01/25

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

United

States

40,000

36,719

Senior

Note,

2.125%,

3/01/30

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

United

States

30,000

25,164

307,401

Household

Durables

0.1%

MDC

Holdings,

Inc.

,

Senior

Bond

,

2.5

%

,

1/15/31

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

United

States

156,000

112,830

Mohawk

Industries,

Inc.

,

Senior

Bond

,

3.625

%

,

5/15/30

.........

United

States

210,000

181,368

294,198

Household

Products

0.1%

b

Kimberly-Clark

de

Mexico

SAB

de

CV

,

Senior

Bond

,

144A,

2.431

%

,

7/01/31

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

Mexico

500,000

400,592

Procter

&

Gamble

Co.

(The)

,

Senior

Bond

,

3

%

,

3/25/30

.........

United

States

10,000

9,161

409,753

Industrial

Conglomerates

0.0%

†

3M

Co.

,

Senior

Bond,

3.05%,

4/15/30

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

United

States

40,000

35,211

Senior

Bond,

3.7%,

4/15/50

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

United

States

10,000

7,704

Honeywell

International,

Inc.

,

Senior

Note

,

1.35

%

,

6/01/25

.......

United

States

10,000

9,253

52,168

Insurance

0.7%

Aflac,

Inc.

,

Senior

Bond

,

4.75

%

,

1/15/49

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

United

States

500,000

446,139

Allstate

Corp.

(The)

,

Senior

Bond

,

4.2

%

,

12/15/46

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

United

States

500,000

416,228

American

International

Group,

Inc.

,

Senior

Note

,

2.5

%

,

6/30/25

...

United

States

6,000

5,654

Aon

Corp.

,

Senior

Bond

,

2.8

%

,

5/15/30

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

United

States

500,000

427,567

Arch

Capital

Group

Ltd.

,

Senior

Bond

,

3.635

%

,

6/30/50

.........

United

States

300,000

208,300

Berkshire

Hathaway

Finance

Corp.

,

Senior

Bond,

4.25%,

1/15/49

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

United

States

20,000

17,916

Senior

Bond,

3.85%,

3/15/52

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

United

States

200,000

160,473

Brown

&

Brown,

Inc.

,

Senior

Bond

,

2.375

%

,

3/15/31

...........

United

States

230,000

175,515

b

Guardian

Life

Global

Funding

,

Secured

Note

,

144A,

1.1

%

,

6/23/25

United

States

10,000

9,067

b,d

Jackson

National

Life

Global

Funding

,

Secured

Note

,

144A,

FRN

,

5.452

%

,

(

SOFR

+

1.15

%

),

6/28/24

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

United

States

230,000

230,095

Marsh

&

McLennan

Cos.,

Inc.

,

Senior

Bond

,

4.9

%

,

3/15/49

......

United

States

250,000

231,147

b

MassMutual

Global

Funding

II

,

Senior

Secured

Note

,

144A,

5.05

%

,

12/07/27

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

United

States

200,000

201,334

MetLife,

Inc.

,

Junior

Sub.

Bond

,

6.4

%

,

12/15/36

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

United

States

270,000

261,458

b

Metropolitan

Life

Global

Funding

I

,

Secured

Note,

144A,

0.9%,

6/08/23

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

United

States

150,000

147,536

Secured

Note,

144A,

3.6%,

1/11/24

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

United

States

940,000

926,079

Secured

Note,

144A,

4.3%,

8/25/29

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

United

States

150,000

142,857

b

New

York

Life

Global

Funding

,

Senior

Secured

Note

,

144A,

0.95

%

,

6/24/25

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

United

States

10,000

9,064

b

Teachers

Insurance

&

Annuity

Association

of

America

,

Sub.

Bond

,

144A,

4.9

%

,

9/15/44

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

United

States

10,000

9,191

4,025,620

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

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)

Interactive

Media

&

Services

0.1%

Alphabet,

Inc.

,

Senior

Bond,

1.1%,

8/15/30

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

United

States

10,000

$

7,849

Senior

Bond,

1.9%,

8/15/40

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

United

States

10,000

6,675

Senior

Bond,

2.05%,

8/15/50

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

United

States

10,000

5,890

Meta

Platforms,

Inc.

,

Senior

Bond

,

4.45

%

,

8/15/52

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

United

States

250,000

199,961

b

Tencent

Holdings

Ltd.

,

Senior

Bond

,

144A,

3.595

%

,

1/19/28

.....

China

500,000

459,134

679,509

Internet

&

Direct

Marketing

Retail

0.2%

Alibaba

Group

Holding

Ltd.

,

Senior

Bond

,

4.2

%

,

12/06/47

.......

China

600,000

460,671

Amazon.com,

Inc.

,

Senior

Bond,

3.6%,

4/13/32

............................

United

States

70,000

64,266

Senior

Bond,

3.875%,

8/22/37

..........................

United

States

30,000

26,698

Senior

Bond,

4.05%,

8/22/47

...........................

United

States

300,000

258,815

Senior

Bond,

2.5%,

6/03/50

............................

United

States

110,000

69,826

Senior

Bond,

4.25%,

8/22/57

...........................

United

States

10,000

8,649

Senior

Note,

1.2%,

6/03/27

............................

United

States

60,000

52,051

b

Prosus

NV

,

Senior

Bond

,

144A,

3.68

%

,

1/21/30

...............

China

200,000

166,705

1,107,681

IT

Services

0.2%

Fidelity

National

Information

Services,

Inc.

,

Senior

Bond

,

2.25

%

,

3/01/31

...........................................

United

States

650,000

510,877

Fiserv,

Inc.

,

Senior

Bond,

3.5%,

7/01/29

............................

United

States

470,000

424,436

Senior

Bond,

2.65%,

6/01/30

...........................

United

States

200,000

168,587

Mastercard,

Inc.

,

Senior

Bond,

3.35%,

3/26/30

...........................

United

States

10,000

9,193

Senior

Bond,

3.85%,

3/26/50

...........................

United

States

40,000

33,597

PayPal

Holdings,

Inc.

,

Senior

Bond,

2.3%,

6/01/30

............................

United

States

10,000

8,238

Senior

Bond,

4.4%,

6/01/32

............................

United

States

10,000

9,442

Senior

Note,

1.65%,

6/01/25

...........................

United

States

10,000

9,292

Visa,

Inc.

,

Senior

Bond,

3.15%,

12/14/25

..........................

United

States

20,000

19,304

Senior

Bond,

4.3%,

12/14/45

...........................

United

States

10,000

9,182

1,202,148

Life

Sciences

Tools

&

Services

0.1%

Illumina,

Inc.

,

Senior

Note

,

5.8

%

,

12/12/25

..................

United

States

150,000

151,184

Thermo

Fisher

Scientific,

Inc.

,

Senior

Note

,

0.797

%

,

10/18/23

....

United

States

200,000

193,622

344,806

Machinery

0.0%

†

Deere

&

Co.

,

Senior

Bond,

3.1%,

4/15/30

............................

United

States

10,000

8,979

Senior

Bond,

3.75%,

4/15/50

...........................

United

States

30,000

25,484

Otis

Worldwide

Corp.

,

Senior

Note

,

2.056

%

,

4/05/25

...........

United

States

10,000

9,365

43,828

Media

0.3%

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

,

Senior

Secured

Bond,

5.05%,

3/30/29

....................

United

States

80,000

75,432

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-35

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Media

(continued)

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital,

(continued)

Senior

Secured

Bond,

2.8%,

4/01/31

.....................

United

States

350,000

$

273,282

Senior

Secured

Bond,

4.4%,

4/01/33

.....................

United

States

30,000

25,755

Senior

Secured

Bond,

5.375%,

4/01/38

...................

United

States

10,000

8,360

Senior

Secured

Bond,

3.5%,

3/01/42

.....................

United

States

130,000

83,724

Senior

Secured

Bond,

3.9%,

6/01/52

.....................

United

States

70,000

44,207

Senior

Secured

Bond,

5.5%,

4/01/63

.....................

United

States

40,000

30,671

Senior

Secured

Note,

4.908%,

7/23/25

...................

United

States

60,000

58,864

Comcast

Corp.

,

Senior

Bond,

4.15%,

10/15/28

..........................

United

States

70,000

67,268

Senior

Bond,

3.4%,

4/01/30

............................

United

States

10,000

9,143

Senior

Bond,

4.25%,

10/15/30

..........................

United

States

60,000

57,556

Senior

Bond,

4.25%,

1/15/33

...........................

United

States

300,000

283,714

Senior

Bond,

3.75%,

4/01/40

...........................

United

States

30,000

24,866

Senior

Bond,

3.969%,

11/01/47

.........................

United

States

30,000

24,112

Senior

Bond,

2.887%,

11/01/51

.........................

United

States

40,000

25,870

Senior

Bond,

4.049%,

11/01/52

.........................

United

States

500,000

398,297

Senior

Bond,

2.937%,

11/01/56

.........................

United

States

20,000

12,460

Senior

Note,

3.95%,

10/15/25

..........................

United

States

30,000

29,411

Fox

Corp.

,

Senior

Bond,

5.476%,

1/25/39

..........................

United

States

40,000

36,553

Senior

Note,

4.709%,

1/25/29

..........................

United

States

300,000

290,512

Time

Warner

Cable

LLC

,

Senior

Secured

Bond

,

6.55

%

,

5/01/37

..

United

States

10,000

9,557

1,869,614

Metals

&

Mining

0.1%

b

Anglo

American

Capital

plc

,

Senior

Note

,

144A,

3.625

%

,

9/11/24

..

South

Africa

200,000

193,644

Barrick

North

America

Finance

LLC

,

Senior

Bond

,

5.7

%

,

5/30/41

..

Canada

20,000

20,182

BHP

Billiton

Finance

USA

Ltd.

,

Senior

Bond

,

5

%

,

9/30/43

.......

Australia

20,000

19,479

Freeport-McMoRan,

Inc.

,

Senior

Bond

,

5.45

%

,

3/15/43

.........

United

States

20,000

18,086

b

Glencore

Funding

LLC

,

Senior

Bond,

144A,

4%,

3/27/27

........................

Australia

20,000

18,904

Senior

Note,

144A,

4.125%,

3/12/24

.....................

Australia

30,000

29,533

Southern

Copper

Corp.

,

Senior

Bond

,

5.25

%

,

11/08/42

.........

Mexico

100,000

95,653

Vale

Overseas

Ltd.

,

Senior

Bond

,

6.25

%

,

8/10/26

.............

Brazil

130,000

134,869

530,350

Multiline

Retail

0.1%

Dollar

Tree,

Inc.

,

Senior

Note

,

4

%

,

5/15/25

..................

United

States

350,000

342,011

Target

Corp.

,

Senior

Note

,

2.25

%

,

4/15/25

...................

United

States

20,000

18,991

361,002

Multi-Utilities

0.3%

Consolidated

Edison

Co.

of

New

York,

Inc.

,

20A,

Senior

Bond,

3.35%,

4/01/30

.......................

United

States

10,000

9,017

20B,

Senior

Bond,

3.95%,

4/01/50

.......................

United

States

10,000

7,893

Dominion

Energy,

Inc.

,

Senior

Note

,

4.25

%

,

6/01/28

...........

United

States

750,000

715,145

Public

Service

Enterprise

Group,

Inc.

,

Senior

Note

,

2.875

%

,

6/15/24

United

States

1,000,000

966,291

1,698,346

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

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

Corporate

Bonds

(continued)

Oil,

Gas

&

Consumable

Fuels

0.9%

b

Aker

BP

ASA

,

Senior

Bond

,

144A,

3.75

%

,

1/15/30

.............

Norway

300,000

$

264,571

BP

Capital

Markets

America,

Inc.

,

Senior

Bond,

1.749%,

8/10/30

..........................

United

States

40,000

31,980

Senior

Bond,

2.939%,

6/04/51

..........................

United

States

40,000

26,520

Senior

Note,

3.119%,

5/04/26

..........................

United

States

40,000

37,965

b

Cameron

LNG

LLC

,

Senior

Secured

Bond,

144A,

2.902%,

7/15/31

..............

United

States

20,000

16,923

Senior

Secured

Bond,

144A,

3.302%,

1/15/35

..............

United

States

40,000

32,344

Chevron

Corp.

,

Senior

Bond,

3.078%,

5/11/50

..........................

United

States

20,000

14,452

Senior

Note,

1.554%,

5/11/25

..........................

United

States

20,000

18,623

Senior

Note,

1.995%,

5/11/27

..........................

United

States

30,000

26,988

Continental

Resources,

Inc.

,

Senior

Bond,

4.9%,

6/01/44

............................

United

States

110,000

81,744

Senior

Note,

4.5%,

4/15/23

............................

United

States

10,000

9,999

Senior

Note,

3.8%,

6/01/24

............................

United

States

10,000

9,740

Senior

Note,

4.375%,

1/15/28

..........................

United

States

40,000

36,716

b

Senior

Note,

144A,

2.268%,

11/15/26

....................

United

States

40,000

34,710

Coterra

Energy,

Inc.

,

Senior

Note,

3.9%,

5/15/27

............................

United

States

30,000

28,058

Senior

Note,

4.375%,

3/15/29

..........................

United

States

60,000

56,821

Devon

Energy

Corp.

,

Senior

Bond,

5.85%,

12/15/25

..........................

United

States

10,000

10,191

Senior

Bond,

4.75%,

5/15/42

...........................

United

States

30,000

25,521

Senior

Bond,

5%,

6/15/45

.............................

United

States

120,000

104,159

Diamondback

Energy,

Inc.

,

Senior

Bond,

3.125%,

3/24/31

..........................

United

States

10,000

8,305

Senior

Bond,

4.4%,

3/24/51

............................

United

States

60,000

45,979

Senior

Note,

3.5%,

12/01/29

...........................

United

States

60,000

52,771

Energy

Transfer

LP

,

Senior

Bond,

4.95%,

6/15/28

...........................

United

States

40,000

38,755

Senior

Bond,

3.75%,

5/15/30

...........................

United

States

50,000

44,200

Senior

Bond,

6.05%,

6/01/41

...........................

United

States

350,000

330,373

Senior

Bond,

6.25%,

4/15/49

...........................

United

States

50,000

46,734

Senior

Note,

2.9%,

5/15/25

............................

United

States

20,000

18,852

Enterprise

Products

Operating

LLC

,

Senior

Bond,

4.15%,

10/16/28

..........................

United

States

30,000

28,467

Senior

Bond,

3.125%,

7/31/29

..........................

United

States

400,000

353,032

Senior

Bond,

2.8%,

1/31/30

............................

United

States

60,000

51,104

Senior

Bond,

6.125%,

10/15/39

.........................

United

States

500,000

514,395

Senior

Bond,

4.45%,

2/15/43

...........................

United

States

20,000

16,940

Senior

Bond,

3.7%,

1/31/51

............................

United

States

50,000

36,276

Senior

Bond,

5.375%

to

2/14/28,

FRN

thereafter,

2/15/78

.....

United

States

10,000

7,639

EOG

Resources,

Inc.

,

Senior

Bond,

4.375%,

4/15/30

..........................

United

States

30,000

29,074

Senior

Bond,

3.9%,

4/01/35

............................

United

States

20,000

17,911

Senior

Bond,

4.95%,

4/15/50

...........................

United

States

40,000

38,290

EQT

Corp.

,

Senior

Bond

,

7

%

,

2/01/30

......................

United

States

10,000

10,388

Exxon

Mobil

Corp.

,

Senior

Bond,

3.482%,

3/19/30

..........................

United

States

50,000

46,752

Senior

Bond,

4.227%,

3/19/40

..........................

United

States

10,000

9,042

Senior

Bond,

3.452%,

4/15/51

..........................

United

States

20,000

15,159

Senior

Note,

2.992%,

3/19/25

..........................

United

States

40,000

38,562

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-37

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Oil,

Gas

&

Consumable

Fuels

(continued)

Kinder

Morgan,

Inc.

,

Senior

Bond,

4.3%,

3/01/28

............................

United

States

40,000

$

38,390

Senior

Bond,

5.55%,

6/01/45

...........................

United

States

340,000

311,607

MPLX

LP

,

Senior

Bond,

4%,

3/15/28

.............................

United

States

20,000

18,638

Senior

Bond,

4.5%,

4/15/38

............................

United

States

10,000

8,461

Senior

Bond,

5.5%,

2/15/49

............................

United

States

385,000

340,209

Senior

Note,

2.65%,

8/15/30

...........................

United

States

300,000

243,796

Phillips

66

,

Senior

Bond

,

3.3

%

,

3/15/52

.....................

United

States

200,000

138,946

Pioneer

Natural

Resources

Co.

,

Senior

Note

,

2.15

%

,

1/15/31

....

United

States

60,000

47,566

Sabine

Pass

Liquefaction

LLC

,

Senior

Secured

Bond

,

4.2

%

,

3/15/28

United

States

250,000

235,443

Targa

Resources

Corp.

,

Senior

Bond

,

4.95

%

,

4/15/52

..........

United

States

10,000

7,956

b

Tennessee

Gas

Pipeline

Co.

LLC

,

Senior

Bond

,

144A,

2.9

%

,

3/01/30

United

States

30,000

25,194

Transcontinental

Gas

Pipe

Line

Co.

LLC

,

Senior

Note,

7.85%,

2/01/26

...........................

United

States

300,000

320,518

Senior

Note,

3.25%,

5/15/30

...........................

United

States

50,000

43,505

b

Var

Energi

ASA

,

Senior

Note

,

144A,

7.5

%

,

1/15/28

............

Norway

200,000

204,113

Western

Midstream

Operating

LP

,

Senior

Note

,

3.35

%

,

2/01/25

...

United

States

10,000

9,479

Williams

Cos.,

Inc.

(The)

,

Senior

Bond,

3.75%,

6/15/27

...........................

United

States

60,000

56,570

Senior

Bond,

5.1%,

9/15/45

............................

United

States

30,000

26,370

4,743,786

Paper

&

Forest

Products

0.1%

Suzano

Austria

GmbH

,

Senior

Bond,

3.75%,

1/15/31

...........................

Brazil

225,000

189,266

Senior

Note,

6%,

1/15/29

.............................

Brazil

200,000

199,402

388,668

Pharmaceuticals

0.2%

AstraZeneca

plc

,

Senior

Bond,

4%,

9/18/42

.............................

United

Kingdom

200,000

173,823

Senior

Bond,

4.375%,

11/16/45

.........................

United

Kingdom

450,000

406,217

Bristol-Myers

Squibb

Co.

,

Senior

Bond,

4.55%,

2/20/48

...........................

United

States

10,000

9,045

Senior

Note,

2.9%,

7/26/24

............................

United

States

30,000

29,141

Senior

Note,

3.2%,

6/15/26

............................

United

States

10,000

9,546

Senior

Note,

3.4%,

7/26/29

............................

United

States

10,000

9,277

Johnson

&

Johnson

,

Senior

Bond,

2.1%,

9/01/40

............................

United

States

30,000

20,760

Senior

Bond,

3.7%,

3/01/46

............................

United

States

10,000

8,441

Merck

&

Co.,

Inc.

,

Senior

Bond,

1.45%,

6/24/30

...........................

United

States

10,000

8,001

Senior

Bond,

2.75%,

12/10/51

..........................

United

States

30,000

20,191

Senior

Note,

0.75%,

2/24/26

...........................

United

States

20,000

17,731

Pfizer,

Inc.

,

Senior

Bond,

1.7%,

5/28/30

............................

United

States

30,000

24,754

Senior

Bond,

2.55%,

5/28/40

...........................

United

States

30,000

21,812

Senior

Bond,

2.7%,

5/28/50

............................

United

States

30,000

20,429

Takeda

Pharmaceutical

Co.

Ltd.

,

Senior

Bond

,

3.175

%

,

7/09/50

..

Japan

400,000

271,576

1,050,744

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

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

Corporate

Bonds

(continued)

Road

&

Rail

0.2%

Burlington

Northern

Santa

Fe

LLC

,

Senior

Bond,

4.9%,

4/01/44

............................

United

States

200,000

$

189,801

Senior

Bond,

2.875%,

6/15/52

..........................

United

States

10,000

6,715

Canadian

Pacific

Railway

Co.

,

Senior

Bond,

2.45%,

12/02/31

..........................

Canada

70,000

58,163

Senior

Bond,

3%,

12/02/41

............................

Canada

20,000

15,163

CSX

Corp.

,

Senior

Bond,

3.8%,

11/01/46

...........................

United

States

100,000

78,975

Senior

Bond,

4.75%,

11/15/48

..........................

United

States

525,000

477,110

Union

Pacific

Corp.

,

Senior

Bond,

2.4%,

2/05/30

............................

United

States

10,000

8,578

Senior

Bond,

2.891%,

4/06/36

..........................

United

States

10,000

7,983

Senior

Bond,

3.839%,

3/20/60

..........................

United

States

10,000

7,781

Senior

Bond,

3.75%,

2/05/70

...........................

United

States

10,000

7,345

Senior

Note,

3.75%,

7/15/25

...........................

United

States

10,000

9,725

Senior

Note,

2.15%,

2/05/27

...........................

United

States

10,000

9,044

876,383

Semiconductors

&

Semiconductor

Equipment

0.1%

Applied

Materials,

Inc.

,

Senior

Bond

,

1.75

%

,

6/01/30

...........

United

States

20,000

16,355

b

Broadcom,

Inc.

,

Senior

Bond

,

144A,

3.137

%

,

11/15/35

.........

United

States

80,000

59,066

Intel

Corp.

,

Senior

Bond,

3.05%,

8/12/51

...........................

United

States

30,000

19,558

Senior

Note,

1.6%,

8/12/28

............................

United

States

10,000

8,513

KLA

Corp.

,

Senior

Bond

,

4.65

%

,

7/15/32

....................

United

States

10,000

9,826

NVIDIA

Corp.

,

Senior

Bond,

2.85%,

4/01/30

...........................

United

States

10,000

8,746

Senior

Bond,

3.5%,

4/01/40

............................

United

States

20,000

16,279

Senior

Bond,

3.5%,

4/01/50

............................

United

States

30,000

22,793

Senior

Bond,

3.7%,

4/01/60

............................

United

States

20,000

14,857

NXP

BV

/

NXP

Funding

LLC

/

NXP

USA,

Inc.

,

Senior

Note

,

2.7

%

,

5/01/25

...........................................

China

10,000

9,423

Texas

Instruments,

Inc.

,

Senior

Bond,

1.75%,

5/04/30

...........................

United

States

10,000

8,244

Senior

Bond,

3.875%,

3/15/39

..........................

United

States

10,000

8,852

Senior

Bond,

4.15%,

5/15/48

...........................

United

States

20,000

17,809

TSMC

Arizona

Corp.

,

Senior

Bond

,

2.5

%

,

10/25/31

............

Taiwan

200,000

164,198

384,519

Software

0.1%

Adobe,

Inc.

,

Senior

Bond

,

2.3

%

,

2/01/30

....................

United

States

20,000

17,099

Microsoft

Corp.

,

Senior

Bond,

3.3%,

2/06/27

............................

United

States

80,000

77,216

Senior

Bond,

2.921%,

3/17/52

..........................

United

States

270,000

192,422

Oracle

Corp.

,

Senior

Bond,

2.875%,

3/25/31

..........................

United

States

50,000

41,579

Senior

Note,

1.65%,

3/25/26

...........................

United

States

50,000

44,819

Salesforce,

Inc.

,

Senior

Bond,

3.7%,

4/11/28

............................

United

States

20,000

19,221

Senior

Bond,

1.95%,

7/15/31

...........................

United

States

250,000

199,952

ServiceNow,

Inc.

,

Senior

Bond

,

1.4

%

,

9/01/30

................

United

States

150,000

115,090

Workday,

Inc.

,

Senior

Bond,

3.8%,

4/01/32

............................

United

States

20,000

17,710

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-39

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Software

(continued)

Workday,

Inc.,

(continued)

Senior

Note,

3.5%,

4/01/27

............................

United

States

10,000

$

9,361

Senior

Note,

3.7%,

4/01/29

............................

United

States

20,000

18,391

752,860

Specialty

Retail

0.1%

Home

Depot,

Inc.

(The)

,

Senior

Bond,

2.7%,

4/15/30

............................

United

States

10,000

8,743

Senior

Bond,

3.3%,

4/15/40

............................

United

States

10,000

8,003

Senior

Bond,

3.35%,

4/15/50

...........................

United

States

20,000

14,779

Senior

Note,

2.5%,

4/15/27

............................

United

States

10,000

9,217

Senior

Note,

4.5%,

9/15/32

............................

United

States

400,000

391,828

Lowe's

Cos.,

Inc.

,

Senior

Bond,

4.5%,

4/15/30

............................

United

States

10,000

9,608

Senior

Note,

1.7%,

9/15/28

............................

United

States

20,000

16,835

459,013

Technology

Hardware,

Storage

&

Peripherals

0.1%

Apple,

Inc.

,

Senior

Bond,

2.45%,

8/04/26

...........................

United

States

40,000

37,147

Senior

Bond,

3.85%,

8/04/46

...........................

United

States

10,000

8,543

Senior

Bond,

2.65%,

5/11/50

...........................

United

States

100,000

66,636

Senior

Bond,

2.8%,

2/08/61

............................

United

States

500,000

318,879

431,205

Textiles,

Apparel

&

Luxury

Goods

0.0%

†

NIKE,

Inc.

,

Senior

Bond,

2.85%,

3/27/30

...........................

United

States

10,000

8,960

Senior

Bond,

3.25%,

3/27/40

...........................

United

States

10,000

8,166

Senior

Note,

2.75%,

3/27/27

...........................

United

States

10,000

9,355

26,481

Thrifts

&

Mortgage

Finance

0.1%

b

BPCE

SA

,

Senior

Note,

144A,

2.045%

to

10/18/26,

FRN

thereafter,

10/19/27

France

250,000

215,805

Sub.

Bond,

144A,

5.15%,

7/21/24

.......................

France

600,000

587,705

803,510

Tobacco

0.1%

Altria

Group,

Inc.

,

Senior

Bond,

4.8%,

2/14/29

............................

United

States

30,000

28,849

Senior

Bond,

5.8%,

2/14/39

............................

United

States

20,000

18,519

Senior

Bond,

5.95%,

2/14/49

...........................

United

States

50,000

44,693

BAT

Capital

Corp.

,

Senior

Bond,

4.54%,

8/15/47

...........................

United

Kingdom

20,000

14,207

Senior

Note,

3.557%,

8/15/27

..........................

United

Kingdom

50,000

45,757

b

Imperial

Brands

Finance

plc

,

Senior

Bond

,

144A,

4.25

%

,

7/21/25

.

United

Kingdom

285,000

272,447

Philip

Morris

International,

Inc.

,

Senior

Bond,

2.1%,

5/01/30

............................

United

States

20,000

16,219

Senior

Bond,

4.5%,

3/20/42

............................

United

States

10,000

8,477

449,168

Trading

Companies

&

Distributors

0.0%

†

Air

Lease

Corp.

,

Senior

Note

,

3.375

%

,

7/01/25

...............

United

States

20,000

18,935

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

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

Corporate

Bonds

(continued)

Transportation

Infrastructure

0.0%

†

b

DP

World

Ltd.

,

Senior

Bond

,

144A,

5.625

%

,

9/25/48

...........

United

Arab

Emirates

200,000

$

188,305

Wireless

Telecommunication

Services

0.1%

b

Rogers

Communications,

Inc.

,

Senior

Bond

,

144A,

4.55

%

,

3/15/52

Canada

180,000

140,385

T-Mobile

USA,

Inc.

,

Senior

Bond,

2.25%,

11/15/31

..........................

United

States

50,000

39,458

Senior

Bond,

3%,

2/15/41

.............................

United

States

20,000

14,188

Senior

Bond,

3.3%,

2/15/51

............................

United

States

100,000

67,174

Senior

Note,

3.5%,

4/15/25

............................

United

States

20,000

19,251

Senior

Note,

3.75%,

4/15/27

...........................

United

States

325,000

306,612

Senior

Note,

3.875%,

4/15/30

..........................

United

States

80,000

72,653

Vodafone

Group

plc

,

Senior

Bond

,

6.15

%

,

2/27/37

.............

United

Kingdom

100,000

101,710

761,431

Total

Corporate

Bonds

(Cost

$64,792,001)

......................................

57,881,215

Foreign

Government

and

Agency

Securities

1.7%

b

African

Export-Import

Bank

(The)

,

Senior

Bond

,

144A,

3.994

%

,

9/21/29

...........................................

Supranational

f

500,000

436,050

Brazil

Notas

do

Tesouro

Nacional

,

10%,

1/01/27

.......................................

Brazil

1,680,000

BRL

294,233

10%,

1/01/29

.......................................

Brazil

480,000

BRL

81,541

10%,

1/01/31

.......................................

Brazil

510,000

BRL

84,533

10%,

1/01/33

.......................................

Brazil

1,030,000

BRL

167,828

b

Bundesrepublik

Deutschland

,

Reg

S,

1.7

%

,

8/15/32

...........

Germany

610,000

EUR

608,889

Colombia

Government

Bond

,

Senior

Bond

,

3.25

%

,

4/22/32

......

Colombia

200,000

146,089

Colombia

Titulos

de

Tesoreria

,

B,

6.25%,

11/26/25

...................................

Colombia

740,000,000

COP

130,817

B,

6%,

4/28/28

......................................

Colombia

1,220,000,000

COP

188,335

B,

7%,

3/26/31

......................................

Colombia

850,000,000

COP

124,186

B,

7.25%,

10/26/50

..................................

Colombia

390,000,000

COP

45,782

b

Comision

Federal

de

Electricidad

,

Senior

Bond

,

144A,

3.348

%

,

2/09/31

...........................................

Mexico

300,000

235,530

b

Corp.

Nacional

del

Cobre

de

Chile

,

Senior

Bond

,

144A,

3.7

%

,

1/30/50

...........................................

Chile

200,000

149,640

Ecopetrol

SA

,

Senior

Bond

,

5.875

%

,

5/28/45

.................

Colombia

150,000

104,765

b

Electricite

de

France

SA

,

Senior

Bond

,

144A,

4.5

%

,

9/21/28

.....

France

400,000

379,391

b

France

Government

Bond

,

Reg

S,

Zero

Cpn.,

5/25/32

.............................

France

680,000

EUR

551,105

Reg

S,

0.75%,

5/25/52

................................

France

300,000

EUR

172,816

Israel

Government

Bond

,

Senior

Bond

,

2.75

%

,

7/03/30

.........

Israel

200,000

182,155

b

Korea

Electric

Power

Corp.

,

Senior

Note

,

144A,

5.375

%

,

4/06/26

.

South

Korea

200,000

201,714

Korea

Treasury

Bonds

,

Senior

Bond,

2%,

6/10/31

.............................

South

Korea

900,000,000

KRW

623,174

Senior

Bond,

1.875%,

3/10/51

..........................

South

Korea

360,000,000

KRW

196,775

Malaysia

Government

Bond

,

3.48%,

3/15/23

.....................................

Malaysia

690,000

MYR

156,568

3.955%,

9/15/25

.....................................

Malaysia

260,000

MYR

59,329

3.899%,

11/16/27

....................................

Malaysia

500,000

MYR

113,723

Mexican

Bonos

Desarr

Fixed

Rate

,

M,

8%,

11/07/47

.....................................

Mexico

4,700,000

g

MXN

215,262

M,

8%,

7/31/53

.....................................

Mexico

5,100,000

g

MXN

233,400

M,

Senior

Bond,

7.75%,

11/13/42

........................

Mexico

6,700,000

g

MXN

300,335

M

20,

Senior

Bond,

8.5%,

5/31/29

.......................

Mexico

6,400,000

g

MXN

319,649

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-41

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Mexican

Bonos

Desarr

Fixed

Rate,

(continued)

M

30,

Senior

Bond,

8.5%,

11/18/38

......................

Mexico

6,800,000

g

MXN

$

330,492

Mexico

Government

Bond

,

Senior

Bond

,

4.75

%

,

3/08/44

........

Mexico

300,000

243,261

New

South

Wales

Treasury

Corp.

,

Senior

Note

,

4

%

,

4/20/23

.....

Australia

80,000

AUD

54,585

Panama

Government

Bond

,

Senior

Bond

,

2.252

%

,

9/29/32

......

Panama

200,000

148,851

Panama

Notas

del

Tesoro

,

Senior

Note

,

3.75

%

,

4/17/26

........

Panama

250,000

235,753

b

Pertamina

Persero

PT

,

Senior

Bond

,

144A,

4.7

%

,

7/30/49

.......

Indonesia

200,000

163,757

Peru

Government

Bond

,

Senior

Bond

,

2.783

%

,

1/23/31

.........

Peru

200,000

165,946

b

Perusahaan

Perseroan

Persero

PT

Perusahaan

Listrik

Negara

,

Senior

Bond

,

Reg

S,

5.25

%

,

10/24/42

....................

Indonesia

200,000

170,940

b

Petroleos

del

Peru

SA

,

Senior

Bond

,

144A,

4.75

%

,

6/19/32

......

Peru

200,000

154,940

Petroleos

Mexicanos

,

Senior

Bond

,

6.625

%

,

6/15/35

...........

Mexico

100,000

72,778

Poland

Government

Bond

,

1.75

%

,

4/25/32

..................

Poland

3,140,000

PLN

471,486

b

Queensland

Treasury

Corp.

,

Senior

Bond

,

144A,

Reg

S,

4.25

%

,

7/21/23

...........................................

Australia

170,000

AUD

116,244

b

Romania

Government

Bond

,

Senior

Bond

,

144A,

5.125

%

,

6/15/48

.

Romania

100,000

79,870

South

Africa

Government

Bond

,

Senior

Bond,

6.5%,

2/28/41

............................

South

Africa

6,300,000

ZAR

232,060

Senior

Bond,

8.75%,

2/28/48

...........................

South

Africa

5,200,000

ZAR

239,263

Uruguay

Government

Bond

,

Senior

Bond,

4.375%,

1/23/31

..........................

Uruguay

40,000

39,831

Senior

Bond,

5.75%,

10/28/34

..........................

Uruguay

150,000

162,489

Western

Australian

Treasury

Corp.

,

Senior

Bond

,

6

%

,

10/16/23

...

Australia

180,000

AUD

124,773

Total

Foreign

Government

and

Agency

Securities

(Cost

$10,260,293)

..............

9,710,933

U.S.

Government

and

Agency

Securities

18.2%

U.S.

Treasury

Bonds

,

6%,

2/15/26

........................................

United

States

2,805,000

2,950,838

1.125%,

8/15/40

.....................................

United

States

332,000

206,359

1.375%,

11/15/40

....................................

United

States

2,091,000

1,360,539

1.875%,

2/15/41

.....................................

United

States

310,000

219,277

2%,

11/15/41

.......................................

United

States

1,320,000

943,155

2.75%,

8/15/42

.....................................

United

States

2,335,000

1,879,629

h

4%,

11/15/42

.......................................

United

States

590,000

577,831

2.875%,

5/15/43

.....................................

United

States

2,760,000

2,255,330

3.125%,

8/15/44

.....................................

United

States

725,000

613,305

2.5%,

5/15/46

......................................

United

States

945,000

705,871

2.25%,

8/15/46

.....................................

United

States

3,305,000

2,342,031

3.375%,

11/15/48

....................................

United

States

3,300,000

2,912,766

3%,

2/15/49

........................................

United

States

1,713,000

1,411,619

2.25%,

8/15/49

.....................................

United

States

150,000

105,527

1.25%,

5/15/50

.....................................

United

States

1,710,000

920,895

1.375%,

8/15/50

.....................................

United

States

1,065,000

592,177

2%,

8/15/51

........................................

United

States

1,780,000

1,166,109

1.875%,

11/15/51

....................................

United

States

1,275,000

807,981

2.25%,

2/15/52

.....................................

United

States

1,910,000

1,328,942

2.875%,

5/15/52

.....................................

United

States

3,500,000

2,805,469

3%,

8/15/52

........................................

United

States

960,000

791,250

U.S.

Treasury

Notes

,

1.5%,

3/31/23

......................................

United

States

465,000

461,738

2.125%,

3/31/24

.....................................

United

States

1,500,000

1,453,506

2%,

4/30/24

........................................

United

States

1,345,000

1,298,135

2%,

5/31/24

........................................

United

States

1,705,000

1,642,994

2.5%,

5/31/24

......................................

United

States

1,980,000

1,921,296

2%,

6/30/24

........................................

United

States

2,255,000

2,169,292

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-42

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

U.S.

Government

and

Agency

Securities

(continued)

U.S.

Treasury

Notes,

(continued)

1.75%,

7/31/24

.....................................

United

States

10,725,000

$

10,260,390

2.375%,

8/15/24

.....................................

United

States

1,640,000

1,582,856

1.25%,

8/31/24

.....................................

United

States

700,000

662,785

1.5%,

11/30/24

......................................

United

States

510,000

482,687

2.125%,

11/30/24

....................................

United

States

4,500,000

4,308,223

0.25%,

9/30/25

.....................................

United

States

310,000

278,395

0.375%,

11/30/25

....................................

United

States

5,143,000

4,600,976

0.875%,

6/30/26

.....................................

United

States

975,000

872,054

1.875%,

7/31/26

.....................................

United

States

389,000

359,825

1.25%,

12/31/26

.....................................

United

States

3,800,000

3,403,523

2.375%,

5/15/27

.....................................

United

States

3,140,000

2,928,173

0.5%,

6/30/27

......................................

United

States

6,985,000

5,975,722

3.25%,

6/30/27

.....................................

United

States

1,565,000

1,513,771

2.25%,

11/15/27

.....................................

United

States

3,500,000

3,226,016

i

Index

Linked,

0.5%,

1/15/28

............................

United

States

1,300,000

1,477,622

1.25%,

4/30/28

.....................................

United

States

2,575,000

2,234,617

3.125%,

11/15/28

....................................

United

States

320,000

305,256

1.625%,

8/15/29

.....................................

United

States

2,565,000

2,226,440

4%,

10/31/29

.......................................

United

States

1,800,000

1,800,984

0.625%,

8/15/30

.....................................

United

States

1,550,000

1,220,443

1.125%,

2/15/31

.....................................

United

States

800,000

652,219

1.25%,

8/15/31

.....................................

United

States

765,000

620,546

1.375%,

11/15/31

....................................

United

States

5,700,000

4,640,936

1.875%,

2/15/32

.....................................

United

States

2,070,000

1,756,670

2.75%,

8/15/32

.....................................

United

States

1,315,000

1,197,677

4.125%,

11/15/32

....................................

United

States

500,000

510,352

d

FRN,

4.383%,

(3-month

U.S.

Treasury

Bill

Rate

+

(0.015)%),

1/31/24

...........................................

United

States

750,000

750,047

d

FRN,

4.323%,

(3-month

U.S.

Treasury

Bill

Rate

+

(0.075)%),

4/30/24

...........................................

United

States

840,000

838,437

d

FRN,

4.435%,

(3-month

U.S.

Treasury

Bill

Rate

+

0.037%),

7/31/24

...........................................

United

States

4,100,000

4,095,514

Total

U.S.

Government

and

Agency

Securities

(Cost

$113,608,810)

................

100,627,017

Asset-Backed

Securities

0.6%

Airlines

0.1%

American

Airlines

Pass-Through

Trust

,

2016-3

,

A

,

3.25

%

,

10/15/28

.

United

States

396,775

308,916

United

Airlines

Pass-Through

Trust

,

2016-1,

A,

3.45%,

7/07/28

.............................

United

States

73,617

62,115

2019-2,

A,

2.9%,

5/01/28

..............................

United

States

87,888

70,722

2020-1,

B,

4.875%,

7/15/27

............................

United

States

228,600

217,745

659,498

a

a

a

a

a

a

Consumer

Finance

0.0%

†

j

Northstar

Education

Finance,

Inc.

,

2007-1

,

A4

,

FRN

,

5.886

%

,

1/29/46

.

...........................................

United

States

125,000

123,748

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-43

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Asset-Backed

Securities

(continued)

Diversified

Financial

Services

0.5%

k

Asset-Backed

Securities

Corp.

Home

Equity

Loan

Trust

,

2006-HE3

,

A5

,

FRN

,

2.892

%

,

(

1-month

USD

LIBOR

+

0.54

%

),

3/25/36

.

....

United

States

89,696

$

85,396

b,k

Carlyle

Global

Market

Strategies

CLO

Ltd.

,

2013-4A

,

A1RR

,

144A,

FRN

,

5.079

%

,

(

3-month

USD

LIBOR

+

1

%

),

1/15/31

.

.........

United

States

246,369

242,435

b

Dividend

Solar

Loans

LLC

,

2018-1

,

B

,

144A,

4.29

%

,

7/20/38

.

....

United

States

109,906

99,635

k

First

Frankin

Mortgage

Loan

Trust

,

2006-FF4

,

A3

,

FRN

,

4.129

%

,

(

1-month

USD

LIBOR

+

0.56

%

),

3/25/36

.

..................

United

States

63,378

62,719

b

Jimmy

Johns

Funding

LLC

,

2017-1A

,

A2II

,

144A,

4.846

%

,

7/30/47

.

United

States

121,500

112,033

b

Mosaic

Solar

Loan

Trust

,

2021-3A

,

B

,

144A,

1.92

%

,

6/20/52

.

.....

United

States

162,362

122,992

b

MVW

LLC

,

2021-1WA

,

A

,

144A,

1.14

%

,

1/22/41

.

..............

United

States

85,194

77,874

b,k

Neuberger

Berman

Loan

Advisers

CLO

40

Ltd.

,

2021-40A

,

A

,

144A,

FRN

,

5.139

%

,

(

3-month

USD

LIBOR

+

1.06

%

),

4/16/33

.

.......

United

States

500,000

493,410

b

New

Economy

Assets

Phase

1

Sponsor

LLC

,

2021-1

,

A1

,

144A,

1.91

%

,

10/20/61

.

....................................

United

States

490,000

414,931

b,k

Octagon

Investment

Partners

XXI

Ltd.

,

2014-1A

,

AAR3

,

144A,

FRN

,

5.65

%

,

(

3-month

USD

LIBOR

+

1

%

),

2/14/31

.

..............

United

States

250,000

245,923

b,k

Palmer

Square

CLO

Ltd.

,

2014-1A

,

A1R2

,

144A,

FRN

,

5.209

%

,

(

3-month

USD

LIBOR

+

1.13

%

),

1/17/31

.

..................

United

States

250,000

247,375

b,k

Reese

Park

CLO

Ltd.

,

2020-1A

,

AR

,

144A,

FRN

,

5.209

%

,

(

3-month

USD

LIBOR

+

1.13

%

),

10/15/34

.

........................

United

States

180,000

174,208

b,k

Symphony

CLO

XV

Ltd.

,

2014-15A

,

AR3

,

144A,

FRN

,

5.159

%

,

(

3-month

USD

LIBOR

+

1.08

%

),

1/17/32

.

..................

United

States

250,000

245,083

2,624,014

a

a

a

a

a

a

Road

&

Rail

0.0%

†

b

Avis

Budget

Rental

Car

Funding

AESOP

LLC

,

2022-3A

,

A

,

144A,

4.62

%

,

2/20/27

.

.....................................

United

States

110,000

107,551

Total

Asset-Backed

Securities

(Cost

$3,659,043)

................................

3,514,811

Commercial

Mortgage-Backed

Securities

0.6%

Diversified

Financial

Services

0.5%

BANK

,

2017-BNK7,

A4,

3.175%,

9/15/60

........................

United

States

130,000

119,111

2021-BN33,

A5,

2.556%,

5/15/64

........................

United

States

210,000

174,010

b,k

BPR

Trust

,

2022-OANA

,

A

,

144A,

FRN

,

6.234

%

,

(

1-month

SOFR

+

1.898

%

),

4/15/37

....................................

United

States

150,000

146,738

b,k

BX

Commercial

Mortgage

Trust

,

2021-21M,

A,

144A,

FRN,

5.048%,

(1-month

USD

LIBOR

+

0.73%),

10/15/36

....................................

United

States

119,202

114,713

2021-VINO,

A,

144A,

FRN,

4.97%,

(1-month

USD

LIBOR

+

0.652%),

5/15/38

....................................

United

States

150,000

144,607

2021-VOLT,

B,

144A,

FRN,

5.268%,

(1-month

USD

LIBOR

+

0.95%),

9/15/36

.....................................

United

States

250,000

236,198

2022-LP2,

A,

144A,

FRN,

5.349%,

(1-month

SOFR

+

1.013%),

2/15/39

...........................................

United

States

213,530

206,121

b,k

BX

Mortgage

Trust

,

2021-PAC,

A,

144A,

FRN,

5.007%,

(1-month

USD

LIBOR

+

0.689%),

10/15/36

...................................

United

States

230,000

221,120

2022-MVRK,

A,

144A,

FRN,

5.793%,

(1-month

SOFR

+

1.467%),

3/15/39

...........................................

United

States

120,000

117,406

b

BX

Trust

,

2022-CLS,

A,

144A,

5.76%,

10/13/27

.....................

United

States

100,000

98,105

k

2022-IND,

A,

144A,

FRN,

5.817%,

(1-month

SOFR

+

1.491%),

4/15/37

...........................................

United

States

373,435

366,181

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-44

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Commercial

Mortgage-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

GNMA

,

2021-21

,

AH

,

1.4

%

,

6/16/63

.......................

United

States

88,595

$

69,420

b,k

ILPT

Commercial

Mortgage

Trust

,

2022-LPF2

,

A

,

144A,

FRN

,

6.581

%

,

(

1-month

SOFR

+

2.245

%

),

10/15/39

..............

United

States

100,000

100,195

b,k

INTOWN

Mortgage

Trust

,

2022-STAY

,

A

,

144A,

FRN

,

6.825

%

,

(

1-month

SOFR

+

2.489

%

),

8/15/39

......................

United

States

130,000

129,474

b,k

J.P.

Morgan

Chase

Commercial

Mortgage

Securities

Trust

,

2022-

ACB

,

A

,

144A,

FRN

,

5.207

%

,

(

30-day

SOFR

Average

+

1.4

%

),

3/15/39

...........................................

United

States

150,000

145,234

b,k

LAQ

Mortgage

Trust

,

2022-LAQ

,

A

,

144A,

FRN

,

6.05

%

,

(

1-month

SOFR

+

1.724

%

),

3/15/39

.............................

United

States

33,094

32,436

b,k

MF1

Ltd.

,

2021-FL7

,

A

,

144A,

FRN

,

5.419

%

,

(

1-month

USD

LIBOR

+

1.08

%

),

10/16/36

....................................

United

States

100,000

95,936

b,k

MTN

Commercial

Mortgage

Trust

,

2022-LPFL

,

A

,

144A,

FRN

,

5.733

%

,

(

1-month

SOFR

+

1.397

%

),

3/15/39

...............

United

States

100,000

97,515

b,k

SREIT

Trust

,

2021-MFP,

A,

144A,

FRN,

5.049%,

(1-month

USD

LIBOR

+

0.731%),

11/15/38

...................................

United

States

140,000

134,859

2021-MFP2,

A,

144A,

FRN,

5.14%,

(1-month

USD

LIBOR

+

0.822%),

11/15/36

...................................

United

States

100,000

96,397

2,845,776

a

a

a

a

a

a

Thrifts

&

Mortgage

Finance

0.1%

Citigroup

Commercial

Mortgage

Trust

,

2016-P6

,

A4

,

3.458

%

,

12/10/49

..........................................

United

States

266,043

249,404

FNMA

,

2014-6

,

Z

,

2.5

%

,

2/25/44

..........................

United

States

124,943

104,818

JPMBB

Commercial

Mortgage

Securities

Trust

,

2015-C33

,

A4

,

3.77

%

,

12/15/48

.....................................

United

States

122,000

116,553

WFRBS

Commercial

Mortgage

Trust

,

2014-C23

,

A5

,

3.917

%

,

10/15/57

..........................................

United

States

106,000

102,743

573,518

a

a

a

a

a

a

Total

Commercial

Mortgage-Backed

Securities

(Cost

$3,501,311)

.................

3,419,294

Mortgage-Backed

Securities

4.6%

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Fixed

Rate

1.3%

FHLMC

Gold

Pool,

30

Year,

4.5%,

1/01/49

..................

United

States

363,135

358,922

FHLMC

Pool,

15

Year,

3%,

8/01/34

........................

United

States

43,814

41,173

FHLMC

Pool,

15

Year,

4%,

11/01/37

.......................

United

States

195,482

190,967

FHLMC

Pool,

20

Year,

3%,

5/01/42

........................

United

States

191,901

171,621

FHLMC

Pool,

30

Year,

2%,

2/01/52

-

8/01/52

.................

United

States

731,225

596,382

FHLMC

Pool,

30

Year,

2.5%,

12/01/50

-

1/01/52

..............

United

States

707,453

606,065

FHLMC

Pool,

30

Year,

3%,

3/01/50

-

7/01/52

.................

United

States

1,084,089

956,936

FHLMC

Pool,

30

Year,

3.5%,

4/01/50

-

8/01/52

...............

United

States

2,020,657

1,874,185

FHLMC

Pool,

30

Year,

4%,

5/01/47

-

6/01/52

.................

United

States

801,445

761,758

FHLMC

Pool,

30

Year,

4.5%,

10/01/48

-

10/01/52

.............

United

States

713,175

696,138

FHLMC

Pool,

30

Year,

5%,

8/01/52

-

11/01/52

................

United

States

559,057

553,521

FHLMC

Pool,

30

Year,

5.5%,

12/01/52

......................

United

States

318,184

319,336

7,127,004

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

2.6%

FNMA,

2.5%,

9/01/61

..................................

United

States

188,744

156,365

FNMA,

3.66%,

10/01/32

................................

United

States

200,000

187,683

FNMA,

3.75%,

9/01/32

.................................

United

States

100,000

94,560

FNMA,

3.89%,

7/01/32

.................................

United

States

100,000

93,864

FNMA,

15

Year,

2%,

8/01/36

-

12/01/36

.....................

United

States

1,015,982

907,362

FNMA,

15

Year,

2.5%,

7/01/36

...........................

United

States

335,561

308,360

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-45

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Mortgage-Backed

Securities

(continued)

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

(continued)

FNMA,

20

Year,

2%,

3/01/42

.............................

United

States

94,744

$

79,975

FNMA,

20

Year,

2.5%,

5/01/42

...........................

United

States

94,735

82,369

FNMA,

30

Year,

1.5%,

3/01/51

...........................

United

States

87,656

67,791

FNMA,

30

Year,

2%,

5/01/51

-

3/01/52

......................

United

States

3,289,410

2,688,720

FNMA,

30

Year,

2.5%,

5/01/51

-

3/01/52

....................

United

States

3,609,529

3,070,040

FNMA,

30

Year,

3%,

9/01/50

-

11/01/51

.....................

United

States

2,069,083

1,827,970

FNMA,

30

Year,

3.5%,

6/01/49

-

9/01/52

....................

United

States

475,136

435,369

FNMA,

30

Year,

4%,

2/01/49

-

6/01/52

......................

United

States

428,155

405,676

FNMA,

30

Year,

4.5%,

2/01/50

-

9/01/52

....................

United

States

642,210

621,405

FNMA,

30

Year,

5%,

10/01/52

-

12/01/52

....................

United

States

297,306

293,473

FNMA,

30

Year,

5.5%,

12/01/52

...........................

United

States

218,917

219,710

l

FNMA,

Single-family,

30

Year,

2%,

1/25/53

..................

United

States

1,000,000

813,929

l

FNMA,

Single-family,

30

Year,

2.5%,

1/25/53

-

2/25/53

..........

United

States

500,000

423,581

l

FNMA,

Single-family,

30

Year,

3%,

1/25/53

..................

United

States

500,000

438,919

l

FNMA,

Single-family,

30

Year,

3.5%,

1/25/53

-

2/25/53

..........

United

States

400,000

363,505

l

FNMA,

Single-family,

30

Year,

4%,

1/25/53

-

2/25/53

...........

United

States

300,000

281,439

l

FNMA,

Single-family,

30

Year,

4.5%,

1/25/53

-

2/25/53

..........

United

States

300,000

288,794

l

FNMA,

Single-family,

30

Year,

5.5%,

2/25/53

.................

United

States

100,000

100,227

14,251,086

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

0.7%

GNMA

II,

3%,

8/20/50

-

5/20/51

...........................

United

States

187,658

167,163

GNMA

II,

3.5%,

1/20/48

-

6/20/50

.........................

United

States

193,018

178,235

GNMA

II,

Single-family,

30

Year,

2%,

5/20/52

.................

United

States

801,745

672,865

GNMA

II,

Single-family,

30

Year,

2.5%,

2/20/50

-

6/20/52

........

United

States

1,223,276

1,064,353

GNMA

II,

Single-family,

30

Year,

3%,

2/20/51

-

1/15/53

.........

United

States

523,418

469,673

l

GNMA

II,

Single-family,

30

Year,

3.5%,

1/15/53

...............

United

States

200,000

183,786

GNMA

II,

Single-family,

30

Year,

4%,

8/20/46

-

8/20/48

.........

United

States

377,137

361,860

GNMA

II,

Single-family,

30

Year,

4.5%,

6/20/48

-

2/15/53

........

United

States

300,248

294,142

l

GNMA

II,

Single-family,

30

Year,

5%,

2/15/53

.................

United

States

200,000

198,177

l

GNMA

II,

Single-family,

30

Year,

5.5%,

2/15/53

...............

United

States

200,000

201,025

l

GNMA

II,

Single-family,

30

Year,

6%,

2/15/53

.................

United

States

100,000

101,417

3,892,696

Total

Mortgage-Backed

Securities

(Cost

$27,351,699)

............................

25,270,786

Municipal

Bonds

0.3%

Arizona

0.0%

†

Maricopa

County

Union

High

School

District

No.

210-Phoenix

,

GO

,

2020

C

,

5

%

,

7/01/31

.................................

United

States

200,000

225,457

California

0.2%

California

Health

Facilities

Financing

Authority

,

State

of

California

Personal

Income

Tax

,

Revenue,

Senior

Lien

,

2019

,

2.934

%

,

6/01/32

...........................................

United

States

65,000

54,512

Golden

State

Tobacco

Securitization

Corp.

,

Revenue

,

2021

B-1

,

Refunding

,

3.85

%

,

6/01/50

.............................

United

States

540,000

478,483

San

Bernardino

Community

College

District

,

GO,

2021,

Refunding,

2.686%,

8/01/41

...................

United

States

485,000

342,866

GO,

2021,

Refunding,

2.856%,

8/01/49

...................

United

States

285,000

182,447

1,058,308

Ohio

0.0%

†

Greenville

City

School

District

,

GO

,

2019

,

Refunding

,

3.541

%

,

1/01/51

...........................................

United

States

160,000

116,435

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-46

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Texas

0.1%

City

of

Austin

,

Electric

Utility

,

Revenue

,

2008

,

Refunding

,

AGMC

Insured

,

6.262

%

,

11/15/32

.............................

United

States

315,000

$

336,572

Total

Municipal

Bonds

(Cost

$2,133,279)

.......................................

1,736,772

Residential

Mortgage-Backed

Securities

0.2%

Diversified

Financial

Services

0.2%

b,j

BRAVO

Residential

Funding

Trust

,

2022-NQM3

,

A1

,

144A,

FRN

,

5.108

%

,

7/25/62

.....................................

United

States

96,077

94,420

b,k

Connecticut

Avenue

Securities

Trust

,

2022-R04

,

1M2

,

144A,

FRN

,

7.028

%

,

(

30-day

SOFR

Average

+

3.1

%

),

3/25/42

...........

United

States

120,000

119,720

b,k

FHLMC

STACR

REMIC

Trust

,

2022-DNA3

,

M1A

,

144A,

FRN

,

5.928

%

,

(

30-day

SOFR

Average

+

2

%

),

4/25/42

.............

United

States

91,942

91,525

b

Legacy

Mortgage

Asset

Trust

,

2021-GS3

,

A1

,

144A,

1.75

%

,

7/25/61

United

States

115,181

104,680

b,j

New

Residential

Mortgage

Loan

Trust

,

2016-4A,

A1,

144A,

FRN,

3.75%,

11/25/56

.................

United

States

110,233

101,104

2017-1A,

A1,

144A,

FRN,

4%,

2/25/57

....................

United

States

103,530

97,748

2018-3A,

A1,

144A,

FRN,

4.5%,

5/25/58

...................

United

States

93,627

87,977

b,j

PRKCM

Trust

,

2021-AFC2

,

A1

,

144A,

FRN

,

2.071

%

,

11/25/56

....

United

States

88,942

74,115

b

SG

Residential

Mortgage

Trust

,

2022-2

,

A1

,

144A,

5.353

%

,

8/25/62

United

States

126,711

124,690

b

Verus

Securitization

Trust

,

2022-6

,

A3

,

144A,

4.91

%

,

6/25/67

....

United

States

94,147

87,913

983,892

a

a

a

a

a

a

Total

Residential

Mortgage-Backed

Securities

(Cost

$1,003,506)

..................

983,892

Total

Long

Term

Investments

(Cost

$529,261,905)

...............................

532,126,206

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,

January

Strike

Price

$112.75,

Expires

1/27/23

.....................................

1

100,000

719

U.S.

Treasury

10

Year

Notes

Futures,

January

Strike

Price

$113.50,

Expires

1/27/23

.....................................

7

700,000

3,063

U.S.

Treasury

10

Year

Notes

Futures,

January

Strike

Price

$114.00,

Expires

1/27/23

.....................................

2

200,000

625

U.S.

Treasury

5

Year

Notes

Futures,

January

Strike

Price

$108.25,

Expires

1/27/23

.....................................

1

100,000

484

U.S.

Treasury

5

Year

Notes

Futures,

January

Strike

Price

$108.75,

Expires

1/27/23

.....................................

1

100,000

297

U.S.

Treasury

5

Year

Notes

Futures,

January

Strike

Price

$109.50,

Expires

1/27/23

.....................................

1

100,000

133

5,321

Puts

-

Exchange-Traded

Options

on

Interest

Rate

Futures

3-month

SOFR

1-year

Mid-Curve

Futures,

January

Strike

Price

$95.63,

Expires

1/13/23

...............................

14

3,500,000

1,837

3-month

SOFR

1-year

Mid-Curve

Futures,

January

Strike

Price

$95.88,

Expires

1/13/23

...............................

15

3,750,000

5,437

Total

Options

Purchased

(Cost

$19,805)

........................................

12,595

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-47

Short

Term

Investments

3.6%

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

U.S.

Government

and

Agency

Securities

0.3%

m

FHLB

,

1/11/23

...........................................

United

States

180,000

$

179,826

2/15/23

...........................................

United

States

180,000

179,054

2/22/23

...........................................

United

States

530,000

526,701

2/28/23

...........................................

United

States

210,000

208,564

3/08/23

...........................................

United

States

330,000

327,461

1,421,606

m

U.S.

Treasury

Bills

,

3/02/23

...........................................

United

States

20,000

19,864

3/28/23

...........................................

United

States

20,000

19,804

5/25/23

...........................................

United

States

220,000

216,089

255,757

Total

U.S.

Government

and

Agency

Securities

(Cost

$1,677,157)

..................

1,677,363

Shares

a

a

a

Money

Market

Funds

3.3%

n,o

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

....

United

States

15,109,675

15,109,675

o

JPMorgan

100%

U.S.

Treasury

Securities

Money

Market

Fund,

3.52%

............................................

United

States

2,533,729

2,533,729

n,o

Western

Asset

Premier

Institutional

Government

Reserves,

4.25%

United

States

105,090

105,090

n,o

Western

Asset

Premier

Institutional

U.S.

Treasury

Reserves,

3.96%

United

States

633,433

633,433

Total

Money

Market

Funds

(Cost

$18,381,928)

..................................

18,381,927

Total

Short

Term

Investments

(Cost

$20,059,085

)

................................

20,059,290

a

Total

Investments

(Cost

$549,340,795)

99.8%

...................................

$552,198,091

Options

Written

(0.0)%

†

......................................................

(16,125)

Other

Assets,

less

Liabilities

0.2%

.............................................

1,123,964

Net

Assets

100.0%

...........................................................

$553,305,930

Number

of

Contracts

Notional

Amount

#

a

a

a

p

Options

Written

(0.0)%

†

Calls

-

Exchange-Traded

Options

on

Interest

Rate

Futures

U.S.

Treasury

10

Year

Notes

Futures,

January

Strike

Price

$114.50,

Expires

1/27/23

.....................................

1

100,000

(203)

U.S.

Treasury

10

Year

Notes

Futures,

January

Strike

Price

$115.00,

Expires

1/27/23

.....................................

1

100,000

(141)

U.S.

Treasury

10

Year

Notes

Futures,

January

Strike

Price

$115.50,

Expires

1/27/23

.....................................

1

100,000

(110)

U.S.

Treasury

10

Year

Notes

Futures,

January

Strike

Price

$116.00,

Expires

1/27/23

.....................................

2

200,000

(156)

U.S.

Treasury

30

Year

Bonds

Futures,

January

Strike

Price

$132.00,

Expires

1/27/23

.....................................

1

100,000

(203)

(813)

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-48

a

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

a

a

p

Options

Written

(continued)

Puts

-

Exchange-Traded

Options

on

Interest

Rate

Futures

U.S.

Treasury

10

Year

Notes

Futures,

January

Strike

Price

$114.00,

Expires

1/27/23

.....................................

2

200,000

$

(4,031)

U.S.

Treasury

30

Year

Bonds

Futures,

January

Strike

Price

$130.00,

Expires

1/27/23

.....................................

1

100,000

(5,062)

U.S.

Treasury

5

Year

Notes

Futures,

January

Strike

Price

$107.50,

Expires

1/27/23

.....................................

8

800,000

(3,625)

U.S.

Treasury

5

Year

Notes

Futures,

January

Strike

Price

$109.00,

Expires

1/27/23

.....................................

2

200,000

(2,594)

(15,312)

Total

Options

Written

(Premiums

received

$10,420)

.............................

$

(16,125)

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-49

At

December

31,

2022,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1(d)

. 

#

Notional

amount

is

the

number

of

contracts

multiplied

by

contract

size,

and

may

be

multiplied

by

the

underlying

price.

May

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

December

31,

2022,

the

aggregate

value

of

these

securities

was

$22,778,852,

representing

4.1%

of

net

assets.

c

Variable

rate

security.

The

rate

shown

represents

the

yield

at

period

end.

d

The

coupon

rate

shown

represents

the

rate

at

period

end.

e

Perpetual

security

with

no

stated

maturity

date.

f

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

g

Principal

amount

is

stated

in

100

Mexican

Peso

Units.

h

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(c).

i

Principal

amount

of

security

is

adjusted

for

inflation.

See

Note

1(g).

j

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.

k

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

l

Security

purchased

on

a

to-be-announced

(TBA)

basis.

See

Note

1(c).

m

The

security

was

issued

on

a

discount

basis

with

no

stated

coupon

rate.

n

See

Note

3(e)

regarding

investments

in

affiliated

management

investment

companies.

o

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

p

See

Note

1(d)

regarding

written

options.

Futures

Contracts

Description

Type

Number

of

Contracts

Notional

Amount

*

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Equity

contracts

S&P

500

E-Mini

Index

.........................

Short

82

$

15,830,100

3/17/23

$

671,435

S&P

500

E-Mini

Index

.........................

Long

18

3,474,900

3/17/23

(147,497)

Interest

rate

contracts

30-day

Federal

Funds

.........................

Short

24

9,567,765

1/31/23

(546)

3-month

SOFR

..............................

Short

39

9,308,325

3/19/24

54,514

3-month

SOFR

..............................

Long

15

3,624,750

3/18/25

(6,244)

90-day

Eurodollar

............................

Long

11

2,614,713

3/13/23

(39,181)

U.S.

Treasury

10

Year

Notes

....................

Long

182

20,438,031

3/22/23

(189,334)

U.S.

Treasury

10

Year

Ultra

Notes

................

Short

5

591,406

3/22/23

7,247

U.S.

Treasury

2

Year

Notes

.....................

Short

7

1,435,547

3/31/23

3,703

U.S.

Treasury

5

Year

Notes

.....................

Long

92

9,929,531

3/31/23

(56,752)

U.S.

Treasury

Long

Bonds

.....................

Long

2

250,688

3/22/23

(5,518)

U.S.

Treasury

Ultra

Bonds

......................

Short

10

1,343,125

3/22/23

44,360

U.S.

Treasury

Ultra

Bonds

......................

Long

7

940,188

3/22/23

(26,168)

Total

Futures

Contracts

......................................................................

$310,019

*

As

of

period

end.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-50

At

December

31,

2022,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(d). 

At

December

31,

2022,

the

Fund

had

the

following credit

default

swap

contracts outstanding.

See

Note

1(d)

. 

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

.....

HSBC

Buy

6,200,000

561,508

1/13/23

$

32,948

$

—

Brazilian

Real

......

HSBC

Buy

500,000

95,942

1/19/23

—

(1,650)

Brazilian

Real

......

HSBC

Sell

1,910,000

355,872

1/19/23

—

(4,320)

Polish

Zloty

........

CITI

Buy

250,000

54,687

1/20/23

2,334

—

Columbian

Peso

....

JPHQ

Sell

1,620,000,000

323,799

1/27/23

—

(8,803)

Mexican

Peso

......

CITI

Buy

5,000,000

249,531

1/31/23

5,640

—

Mexican

Peso

......

CITI

Sell

25,900,000

1,275,142

1/31/23

—

(46,646)

Euro

.............

BZWS

Buy

1,370,000

1,375,555

2/03/23

94,235

—

Euro

.............

MSCO

Sell

550,000

589,529

2/03/23

—

(533)

Thai

Baht

.........

HSBC

Buy

4,500,000

119,832

2/10/23

11,078

—

South

African

Rand

..

HSBC

Sell

7,700,000

442,094

2/15/23

—

(9,344)

British

Pound

......

JPHQ

Buy

430,000

529,579

3/03/23

—

(8,984)

British

Pound

......

JPHQ

Sell

430,000

517,561

3/03/23

—

(3,034)

Australian

Dollar

....

JPHQ

Sell

420,000

285,731

3/07/23

—

(960)

South

Korean

Won

..

JPHQ

Sell

540,000,000

414,556

3/08/23

—

(14,837)

Japanese

Yen

......

JPHQ

Buy

342,000,000

2,534,497

3/14/23

95,147

—

Chilean

Peso

......

JPHQ

Buy

600,000,000

687,246

3/20/23

11,986

—

Norwegian

Krone

...

MSCO

Buy

5,800,000

597,794

3/20/23

—

(3,818)

Malaysian

Ringgit

...

GSCO

Sell

1,320,000

302,683

3/21/23

—

(159)

Total

Forward

Exchange

Contracts

...................................................

$253,368

$(103,088)

Net

unrealized

appreciation

(depreciation)

............................................

$150,280

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

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Rating

(b)

Centrally

Cleared

Swap

Contracts

Contracts

to

Sell

Protection

(c)(d)

Traded

Index

CDX.NA.IG.39

..

1.00%

Quarterly

12/20/27

7,648,000

$

63,292

$

(24,638)

$

87,930

Investment

Grade

CDX.NA.IG.39

..

1.00%

Quarterly

12/20/32

660,000

(8,850)

(11,174)

2,324

Investment

Grade

Total

Centrally

Cleared

Swap

Contracts

.....................................

$54,442

$(35,812)

$90,254

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-51

At

December

31,

2022,

the

Fund

had

the

following

interest

rate

swap

contracts

outstanding.

See

Note

1(d)

. 

See

Note 9 regarding

other

derivative

information.

See

A

bbreviations

on

page

FA-

70

.

Credit

Default

Swap

Contracts

(continued)

Description

Periodic

Payment

Rate

Received

(Paid)

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

(a)

Value

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Rating

(b)

OTC

Swap

Contracts

Contracts

to

Sell

Protection

(c)(d)

Single

Name

Mexico

Government

Bond

......

1.00%

Quarterly

GSCO

6/20/26

200,000

$

310

$

403

$

(93)

BBB

Total

OTC

Swap

Contracts

..............................................

$310

$403

$(93)

Total

Credit

Default

Swap

Contracts

....................................

$54,752

$

(35,409)

$90,161

(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.

Interest

Rate

Swap

Contracts

Description

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

*

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

2,318,000

$

52,480

$

(64,226)

$

116,706

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

3.85%

....

Annual

6/30/29

686,000

(7,887)

859

(8,746)

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.6%

.....

Annual

2/15/48

275,000

33,308

18,814

14,494

Receive

Floating

1-day

SOFR

............

Annual

Pay

Fixed

2.62%

....

Annual

2/15/48

1,120,000

134,761

21,518

113,243

Total

Interest

Rate

Swap

Contracts

...............................

$212,662

$

(23,035)

$235,697

*

In

U.S.

dollars

unless

otherwise

indicated.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

December

31,

2022

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-52

Franklin

Allocation

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$533,492,597

Cost

-

Non-controlled

affiliates

(Not

e

3e)

........................................................

15,848,198

Value

-

Unaffiliated

issuers

..................................................................

$536,349,893

Value

-

Non-controlled

affiliates

(Not

e

3e)

.......................................................

15,848,198

Cash

....................................................................................

858,447

Foreign

currency,

at

value

(cost

$126,798)

........................................................

128,031

Receivables:

Investment

securities

sold

...................................................................

6,735,747

Capital

shares

sold

........................................................................

543,661

Dividends

and

interest

.....................................................................

2,126,391

Deposits

with

brokers

for:

OTC

derivative

contracts

..................................................................

10,000

Futures

contracts

........................................................................

1,682,175

Centrally

cleared

swap

contracts

............................................................

96,223

Variation

margin

on

centrally

cleared

swap

contracts

...............................................

49,710

OTC

swap

contracts

(upfront

payments

$565)

.....................................................

403

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

253,368

Total

assets

..........................................................................

564,682,247

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

9,949,008

Capital

shares

redeemed

...................................................................

476,063

Management

fees

.........................................................................

423,729

Distribution

fees

..........................................................................

147,968

Trustees'

fees

and

expenses

.................................................................

1,056

Variation

margin

on

futures

contracts

...........................................................

22,076

Deposits

from

brokers

for:

OTC

derivative

contracts

..................................................................

10,000

Unrealized

depreciation

on

OTC

swap

contracts

....................................................

93

Options

written,

at

value

(premiums

received

$10,420)

...............................................

16,125

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

103,088

Deferred

tax

...............................................................................

26,694

Accrued

expenses

and

other

liabilities

...........................................................

200,417

Total

liabilities

.........................................................................

11,376,317

Net

assets,

at

value

.................................................................

$553,305,930

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$540,509,698

Total

distributable

earnings

(losses)

.............................................................

12,796,232

Net

assets,

at

value

.................................................................

$553,305,930

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

December

31,

2022

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FA-53

Franklin

Allocation

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$647,720

Shares

outstanding

........................................................................

145,391

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$4.46

Class

2:

Net

assets,

at

value

.......................................................................

$223,917,404

Shares

outstanding

........................................................................

50,780,056

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$4.41

Class

4:

Net

assets,

at

value

.......................................................................

$328,740,806

Shares

outstanding

........................................................................

71,701,306

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$4.58

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2022

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FA-54

Franklin

Allocation

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$298,292)

Unaffiliated

issuers

........................................................................

$7,281,927

Non-controlled

affiliates

(Not

e

3e)

.............................................................

256,677

Interest:

(net

of

foreign

taxes

of

$2,336)

Unaffiliated

issuers

........................................................................

5,203,970

Total

investment

income

...................................................................

12,742,574

Expenses:

Management

fees

(Note

3

a

)

...................................................................

3,325,100

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

625,422

    Class

4

................................................................................

1,237,807

Custodian

fees

(Note

4

)

......................................................................

38,035

Reports

to

shareholders

fees

..................................................................

(83,212)

Professional

fees

...........................................................................

127,474

Trustees'

fees

and

expenses

..................................................................

7,766

Other

....................................................................................

71,440

Total

expenses

.........................................................................

5,349,832

Expense

reductions

(Note

4

)

...............................................................

(1)

Expenses

waived/paid

by

affiliates

(Not

e

3e

and

3f)

..............................................

(68,045)

Net

expenses

.........................................................................

5,281,786

Net

investment

income

................................................................

7,460,788

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

(net

of

foreign

taxes

of

$8,266)

Unaffiliated

issuers

......................................................................

14,633,375

Non-controlled

affiliates

(Not

e

3e)

...........................................................

(1,396,313)

Written

options

...........................................................................

341,789

Foreign

currency

transactions

................................................................

49,800

Forward

exchange

contracts

.................................................................

(448,644)

Futures

contracts

.........................................................................

(3,962,569)

TBA

sale

commitments

.....................................................................

(119,379)

Swap

contracts

...........................................................................

56,866

Net

realized

gain

(loss)

..................................................................

9,154,925

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(132,352,181)

Non-controlled

affiliates

(Not

e

3e)

...........................................................

1,151,023

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

23,472

Written

options

...........................................................................

(5,705)

Forward

exchange

contracts

.................................................................

150,280

Futures

contracts

.........................................................................

238,403

Swap

contracts

...........................................................................

329,624

Change

in

deferred

taxes

on

unrealized

appreciation

...............................................

2,726

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(130,462,358)

Net

realized

and

unrealized

gain

(loss)

............................................................

(121,307,433)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(113,846,645)

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.

Annual

Report

FA-55

Franklin

Allocation

VIP

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$7,460,788

$5,721,145

Net

realized

gain

(loss)

.................................................

9,154,925

66,714,704

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(130,462,358)

11,744,579

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(113,846,645)

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

.............................................................

32,245

(44,550)

Class

2

.............................................................

(2,410,465)

(128,346

,341)

Class

4

.............................................................

15,006,285

(29,324,411)

Total

capital

share

transactions

............................................

12,628,065

(157,715,302)

Net

increase

(decrease)

in

net

assets

...................................

(168,369,716)

(87,142,912)

Net

assets:

Beginning

of

year

.......................................................

721,675,646

808,818,558

End

of

year

...........................................................

$553,305,930

$721,675,646

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

Franklin

Allocation

VIP

Fund

FA-56

Annual

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.

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC946.

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

December

31,

2022,

45.2%

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

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

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.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FA-57

Annual

Report

Franklin

Allocation

VIP

Fund

(continued)

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,

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

December

31,

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

Delayed

Delivery

and

TBA

Basis

The

Fund

purchases

securities

on

a

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.

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FA-58

Annual

Report

Franklin

Allocation

VIP

Fund

(continued)

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

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

December

31,

2022,

the

Fund

had

OTC

derivatives

in

a

net

liability

position

of

$43,023

and

the

aggregate

value

of

collateral

pledged

for

such

contracts

was

$10,000.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FA-59

Annual

Report

Franklin

Allocation

VIP

Fund

(continued)

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

entered

into

inflation

index

swap

contracts

primarily

to

manage

and/or

gain

exposure

to

inflation

risk.

An

inflation

index

swap

is

an

agreement

between

the

Fund

and

a

counterparty

to

exchange

cash

flows

whereby

one

party

makes

payments

based

on

the

percentage

change

in

an

index

that

serves

as

a

measure

of

inflation

and

the

other

party

makes

a

regular

payment

based

on

a

compounded

fixed

rate,

applied

to

a

notional

amount.

These

agreements

may

be

privately

negotiated

in

the

over-the-counter

market

(OTC

inflation

index

swap)

or

may

be

executed

on

a

registered

exchange

(centrally

cleared

inflation

index

swap).

For

centrally

cleared

inflation

index

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.

Over

the

term

of

the

contract,

contractually

required

payments

to

be

paid

and

to

be

received

are

accrued

daily

and

recorded

as

unrealized

appreciation

or

depreciation

until

the

payments

are

made,

at

which

time

they

are

realized.

Typically,

an

inflation

index

swap

has

payment

obligations

netted

and

exchanged

upon

maturity.

At

December

31,

2022,

the

Fund

had

no

inflation

index

swap

contracts.

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

appreciation

or

depreciation

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Derivative

Financial

Instruments

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FA-60

Annual

Report

Franklin

Allocation

VIP

Fund

(continued)

(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

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

December

31,

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

e.

Mortgage

Dollar

Rolls

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FA-61

Annual

Report

Franklin

Allocation

VIP

Fund

(continued)

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.

2.

Shares

of

Beneficial

Interest

At

December

31,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

16,838

$79,334

11,749

$68,109

Shares

issued

in

reinvestment

of

distributions

..........

19,526

86,111

2,704

15,547

Shares

redeemed

...............................

(30,604)

(133,200)

(22,563)

(128,206)

Net

increase

(decrease)

..........................

5,760

$32,245

(8,110)

$(44,550)

Class

2

Shares:

Shares

sold

...................................

2,067,285

$10,531,771

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

...............................

(8,499,043)

(41,432,089)

(26,406,666)

(149,444,932)

Net

increase

(decrease)

..........................

87,658

$(2,410,465)

(22,693,254)

$(128,346,341)

Class

4

Shares:

Shares

sold

...................................

2,663,783

$13,538,819

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

...............................

(7,330,236)

(37,107,706)

(8,025,411)

(47,473,403)

Net

increase

(decrease)

..........................

3,811,607

$15,006,285

(4,958,487)

$(29,324,411)

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

FA-62

Annual

Report

Franklin

Allocation

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

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.

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

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)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FA-63

Annual

Report

Franklin

Allocation

VIP

Fund

(continued)

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

year

ended

December

31,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

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 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

year

ended

December

31,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Allocation

VIP

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

$

18,002,980

$

192,608,654

$

(195,501,959)

$

—

$

—

$

15,109,675

15,109,675

$

220,022

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,

4.25%

.................

—

48,198,077

(48,092,987)

—

—

105,090

105,090

28,494

Western

Asset

Premier

Institutional

U.S.

Treasury

Reserves,

Class

Premium,

3.96%

.................

—

20,876,008

(20,242,575)

—

—

633,433

633,433

8,161

Total

Affiliated

Securities

...

$25,065,290

$261,682,739

$(270,654,541)

$(1,396,313)

$1,151,023

$15,848,198

$256,677

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FA-64

Annual

Report

Franklin

Allocation

VIP

Fund

(continued)

5.

Income

Taxes

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021,

was

as

follows:

At

December

31,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

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,

passive

foreign

investment

company

shares,

bond

discounts

and

premiums,

wash

sales

and

financial

futures

transactions.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2022,

aggregated

$630,536,839

and

$668,725,842,

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.

2022

2021

Distributions

paid

from:

Ordinary

income

..........................................................

$20,845,979

$13,608,038

Long

term

capital

gain

......................................................

46,305,157

—

$67,151,136

$13,608,038

Cost

of

investments

..........................................................................

$556,525,196

Unrealized

appreciation

........................................................................

$52,845,705

Unrealized

depreciation

........................................................................

(56,465,699)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(3,619,994)

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$7,222,094

Undistributed

long

term

capital

gains

..............................................................

9,194,658

Total

distributable

earnings

.....................................................................

$16,416,752

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FA-65

Annual

Report

Franklin

Allocation

VIP

Fund

(continued)

9.

Other

Derivative

Information

At

December

31,

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

$

12,595

a

Options

written,

at

value

$

16,125

Variation

margin

on

futures

contracts

109,824

b

Variation

margin

on

futures

contracts

323,743

b

Variation

margin

on

centrally

cleared

swap

contracts

244,443

c

Variation

margin

on

centrally

cleared

swap

contracts

8,746

c

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

253,368

Unrealized

depreciation

on

OTC

forward

exchange

contracts

103,088

Credit

contracts

............

Variation

margin

on

centrally

cleared

swap

contracts

90,254

c

Variation

margin

on

centrally

cleared

swap

contracts

—

OTC

swap

contracts

(upfront

payments)

403

OTC

swap

contracts

(upfront

receipts)

—

Unrealized

appreciation

on

OTC

swap

contracts

—

Unrealized

depreciation

on

OTC

swap

contracts

93

Equity

contracts

...........

Variation

margin

on

futures

contracts

671,435

b

Variation

margin

on

futures

contracts

147,497

b

Total

....................

$1,382,322

$599,292

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

year

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

year

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

FA-66

Annual

Report

Franklin

Allocation

VIP

Fund

(continued)

For

the

year

ended

December

31,

2022,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

year

ended

December

31,

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

matured

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.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Year

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Year

Franklin

Allocation

VIP

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Interest

rate

contracts

..........

Investments

$(90,241)

a

Investments

$(7,210)

a

Written

options

341,789

Written

options

(5,705)

Futures

contracts

(1,092,444)

Futures

contracts

(28,783)

Swap

contracts

2,726

Swap

contracts

235,697

Foreign

exchange

contracts

.....

Forward

exchange

contracts

(448,644)

Forward

exchange

contracts

150,280

Credit

contracts

...............

Swap

contracts

54,140

Swap

contracts

93,927

Equity

c

ontracts

..............

Futures

contracts

(2,870,125)

Futures

contracts

267,186

Total

.......................

$(4,102,799)

$705,392

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

Allocation

VIP

Fund

Futures

contracts

.........................

$56,724,501

Swap

Contracts

..........................

9,012,154

Forward

exchange

contracts

.................

8,428,287

Options

.................................

4,852,692

9.

Other

Derivative

Information

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FA-67

Annual

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

year

ended

December

31,

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

December

31,

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

...................

$

8,701,583

$

3,389,139

$

—

$

12,090,722

Air

Freight

&

Logistics

...................

2,885,969

1,181,119

—

4,067,088

Airlines

..............................

72,292

—

—

72,292

Auto

Components

......................

678,215

1,924,376

—

2,602,591

Automobiles

..........................

1,134,766

2,945,174

—

4,079,940

Banks

...............................

8,723,265

9,272,804

—

17,996,069

Beverages

...........................

4,885,304

697,447

—

5,582,751

Biotechnology

.........................

4,768,513

2,616,269

—

7,384,782

Building

Products

......................

1,152,647

543,485

—

1,696,132

Capital

Markets

........................

7,503,367

4,238,740

—

11,742,107

Chemicals

...........................

5,438,105

4,266,834

—

9,704,939

Commercial

Services

&

Supplies

...........

495,939

44,157

—

540,096

Communications

Equipment

..............

3,737,931

—

—

3,737,931

Construction

Materials

..................

1,070,689

671,727

—

1,742,416

Consumer

Finance

.....................

2,310,826

—

—

2,310,826

Containers

&

Packaging

.................

138,172

—

—

138,172

Distributors

...........................

142,799

—

—

142,799

Diversified

Consumer

Services

............

186,457

—

—

186,457

Diversified

Financial

Services

.............

1,563,652

1,412,823

—

2,976,475

Diversified

Telecommunication

Services

.....

581,388

1,634,453

—

2,215,841

Electric

Utilities

........................

2,734,242

652,141

—

3,386,383

Electrical

Equipment

....................

2,641,481

786,456

—

3,427,937

10.

Credit

Facility

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FA-68

Annual

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:

Electronic

Equipment,

Instruments

&

Components

........................

$

3,596,978

$

552,495

$

—

$

4,149,473

Energy

Equipment

&

Services

.............

95,693

938,519

—

1,034,212

Entertainment

.........................

1,852,749

1,549,052

—

3,401,801

Equity

Real

Estate

Investment

Trusts

(REITs)

.

4,091,089

442,040

—

4,533,129

Food

&

Staples

Retailing

.................

1,126,895

1,177,679

—

2,304,574

Food

Products

........................

840,869

1,939,617

—

2,780,486

Gas

Utilities

..........................

173,695

234,877

—

408,572

Health

Care

Equipment

&

Supplies

.........

7,806,373

2,894,704

—

10,701,077

Health

Care

Providers

&

Services

..........

9,203,650

533,210

—

9,736,860

Health

Care

Technology

.................

112,966

—

—

112,966

Hotels,

Restaurants

&

Leisure

.............

1,591,147

535,006

—

2,126,153

Household

Durables

....................

—

1,257,819

—

1,257,819

Household

Products

....................

1,327,462

—

—

1,327,462

Independent

Power

and

Renewable

Electricity

Producers

..........................

75,980

141,812

—

217,792

Industrial

Conglomerates

................

1,399,831

1,816,817

—

3,216,648

Insurance

............................

5,663,537

3,354,703

—

9,018,240

Interactive

Media

&

Services

..............

8,451,402

117,206

—

8,568,608

Internet

&

Direct

Marketing

Retail

..........

6,696,475

2,025,385

—

8,721,860

IT

Services

...........................

10,106,786

3,669,492

—

13,776,278

Leisure

Products

.......................

—

100,253

—

100,253

Life

Sciences

Tools

&

Services

............

5,713,926

917,458

—

6,631,384

Machinery

............................

7,782,766

1,560,314

—

9,343,080

Marine

..............................

—

291,377

—

291,377

Media

...............................

4,227,735

1,471,538

—

5,699,273

Metals

&

Mining

.......................

972,304

2,651,278

—

3,623,582

Multiline

Retail

........................

173,109

351,565

—

524,674

Multi-Utilities

..........................

3,555,911

873,588

—

4,429,499

Oil,

Gas

&

Consumable

Fuels

.............

8,552,307

6,046,644

—

14,598,951

Personal

Products

.....................

1,840,295

984,244

—

2,824,539

Pharmaceuticals

.......................

8,344,636

6,332,621

—

14,677,257

Professional

Services

...................

1,508,778

2,485,244

—

3,994,022

Real

Estate

Management

&

Development

....

443,048

499,321

—

942,369

Road

&

Rail

..........................

2,572,167

181,527

—

2,753,694

Semiconductors

&

Semiconductor

Equipment

.

9,814,402

3,729,426

—

13,543,828

Software

.............................

23,365,661

2,158,892

—

25,524,553

Specialty

Retail

........................

3,922,774

331,937

—

4,254,711

Technology

Hardware,

Storage

&

Peripherals

.

7,386,179

1,353,883

—

8,740,062

Textiles,

Apparel

&

Luxury

Goods

..........

1,718,466

1,305,477

—

3,023,943

Thrifts

&

Mortgage

Finance

...............

125,645

—

—

125,645

Tobacco

.............................

584,127

1,354,991

—

1,939,118

Trading

Companies

&

Distributors

..........

1,464,885

755,142

—

2,220,027

Water

Utilities

.........................

324,377

—

—

324,377

Wireless

Telecommunication

Services

.......

143,080

527,507

—

670,587

Management

Investment

Companies

.........

11,372,981

—

—

11,372,981

Preferred

Stocks

........................

—

98,714

—

98,714

Private

Limited

Partnership

Funds

............

1,490,230

—

—

1,490,230

Corporate

Bonds

........................

—

57,881,215

—

57,881,215

Foreign

Government

and

Agency

Securities

....

—

9,710,933

—

9,710,933

U.S.

Government

and

Agency

Securities

.......

—

100,627,017

—

100,627,017

Asset-Backed

Securities

..................

—

3,514,811

—

3,514,811

Commercial

Mortgage-Backed

Securities

......

—

3,419,294

—

3,419,294

Mortgage-Backed

Securities

................

—

25,270,786

—

25,270,786

11.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FA-69

Annual

Report

Franklin

Allocation

VIP

Fund

(continued)

12.

New

Accounting

Pronouncements

In

March

2020,

the

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

and

December

2022,

the

FASB

issued

ASU

No.

2021-01

and

ASU

No.

2022-06,

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,

2024.

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

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

will

not

have

a

material

impact

on

the

financial

statements.

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

other

than

those

already

disclosed

in

the

financial

statements.

Level

1

Level

2

Level

3

Total

Franklin

Allocation

VIP

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Municipal

Bonds

.........................

$

—

$

1,736,772

$

—

$

1,736,772

Residential

Mortgage-Backed

Securities

......

—

983,892

—

983,892

Options

purchased

.......................

12,595

—

—

12,595

Short

Term

Investments

...................

18,381,927

1,677,363

—

20,059,290

Total

Investments

in

Securities

...........

$251,555,490

$300,642,601

a

$—

$552,198,091

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

253,368

$

—

$

253,368

Futures

contracts

........................

781,259

—

—

781,259

Swap

contracts

.........................

—

334,698

—

334,698

Total

Other

Financial

Instruments

.........

$781,259

$588,066

$—

$1,369,325

Liabilities:

Other

Financial

Instruments:

Options

written

..........................

$

16,125

$

—

$

—

$

16,125

Forward

exchange

contracts

................

—

103,088

—

103,088

Futures

contracts

........................

471,240

—

—

471,240

Swap

contracts

..........................

—

8,840

—

8,840

Total

Other

Financial

Instruments

.........

$487,365

$111,928

$—

$599,293

a

Includes

foreign

securities

valued

at

$95,820,518,

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

FA-70

Annual

Report

Franklin

Allocation

VIP

Fund

(continued)

Abbreviations

Counterparty

BZWS

Barclays

Bank

plc

CITI

Citibank

NA

GSCO

Goldman

Sachs

Group,

Inc.

HSBC

HSBC

Bank

USA,

NA

JPHQ

JPMorgan

Chase

Bank

NA

MSCO

Morgan

Stanley

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.

CLO

Collateralized

Loan

Obligation

ETF

Exchange-Traded

Fund

FHLB

Federal

Home

Loan

Banks

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

SOFR

Secured

Overnight

Financing

Rate

TIPS

Treasury

Inflation

Protected

Securities

Franklin

Templeton

Variable

Insurance

Products

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

FA-71

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Templeton

Variable

Insurance

Products

Trust

and

Shareholders

of

Franklin

Allocation

VIP

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Franklin

Allocation

VIP

Fund

(one

of

the

funds

constituting

Franklin

Templeton

Variable

Insurance

Products

Trust,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2022,

the

related

statement

of

operations

for

the

year

ended

December

31,

2022,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2022,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Templeton

Variable

Insurance

Products

Trust

Tax

Information

(unaudited)

FA-72

Annual

Report

Franklin

Allocation

VIP

Fund

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2022:

Note

(1)

-

The

Law

varies

in

each

state

as

to

whether

and

what

percentage

of

dividend

income

attributable

to

Federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

consult

with

their

tax

advisors

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

taxes.

Pursuant

to:

Amount

Reported

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$46,305,157

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$3,226,515

Interest

Earned

from

Federal

Obligations

Note

(1)

$2,550,416

FD-1

Annual

Report

Franklin

DynaTech

VIP

Fund

This

annual

report

for

Franklin

DynaTech

VIP

Fund

covers

the

fiscal

year

ended

December

31,

2022

.

Class

4

Performance

Summary

as

of

December

31,

2022

Average

annual

total

return

of

Class

4

shares*

represents

the

average

annual

change

in

value,

assuming

reinvestment

of

dividends

and

capital

gains.

Average

returns

smooth

out

variations

in

returns,

which

can

be

significant;

they

are

not

the

same

as

year-by-year

results.

*On

May

1,

2021,

the

Fund’s

investment

strategies

changed.

The

performance

prior

to

May

1,

2021

is

attributable

to

the

Fund’s

performance

before

the

strategy

changes.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Net

expenses

are

capped

under

a

contractual

agreement,

which

cannot

be

terminated

prior

to

4/30/23

without

Board

consent.

The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Performance

reflects

the

Fund’s

Class

4

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.

Share

Class

Average

Annual

Total

Return

–

4

1-Year

-40.20%

5-Year

+6.29%

10-Year

+9.74%

FD-2

Annual

Report

Franklin

DynaTech

VIP

Fund

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

(12/31/12–12/31/22)

The

graph

below

shows

the

change

in

value

of

a

hypothetical

$10,000

investment

in

the

Fund

over

the

indicated

period

and

includes

reinvestment

of

any

income

or

distributions.

The

Fund’s

performance*

is

compared

to

the

performance

of

the

Russell

1000

®

Growth

Index

and

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

).

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Important

Notes

to

Performance

Information

preceding

the

Fund

Summaries.

**Source:

FactSet.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

FD-3

Annual

Report

Franklin

DynaTech

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation.

Under

normal

market

conditions,

the

Fund

invests

primarily

in

equity

securities

of

companies

that

the

investment

manager

believes

are

leaders

in

innovation,

take

advantage

of

new

technologies,

have

superior

management

and

benefit

from

new

industry

conditions

in

the

dynamically

changing

global

economy.

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.

Stocks

historically

have

outperformed

other

asset

classes

over

the

long

term,

but

tend

to

fluctuate

more

dramatically

over

the

short

term.

Investments

in

fast-growing

industries

like

the

technology

and

health

care

sectors

(which

have

historically

been

volatile)

could

result

in

increased

price

fluctuation,

especially

over

the

short

term,

due

to

the

rapid

pace

of

product

change

and

development

and

changes

in

government

regulation

of

companies

emphasizing

scientific

or

technological

advancement

or

regulatory

approval

for

new

drugs

and

medical

instruments.

The

Fund

may

also

invest

in

small-

and

mid-capitalization

companies,

which

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger,

more

established

companies.

The

Fund

may

invest

in

foreign

securities,

which

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

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

one-year

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

primary

benchmark,

the

Russell

1000

®

Growth

Index,

posted

a

-29.14%

total

return

for

the

same

period.

1

The

Fund’s

secondary

benchmark,

the

Standard

&

Poor’s

500

®

Index

(S&P

500

®

),

posted

a

-18.11%

total

return.

1

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

S&P

500

®

,

posted

a

-18.11%

total

return

for

the

12

months

ended

December

31,

2022.

1

High

inflation,

rising

interest

rates

and

geopolitical

Portfolio

Composition

12/31/22

%

of

Total

Net

Assets

Software

27.9%

Semiconductors

&

Semiconductor

Equipment

13.4%

IT

Services

8.9%

Life

Sciences

Tools

&

Services

8.3%

Health

Care

Equipment

&

Supplies

6.9%

Internet

&

Direct

Marketing

Retail

6.1%

Interactive

Media

&

Services

3.9%

Capital

Markets

2.5%

Health

Care

Providers

&

Services

1.9%

Automobiles

1.9%

Electric

Utilities

1.9%

Technology

Hardware,

Storage

&

Peripherals

1.8%

Pharmaceuticals

1.6%

Chemicals

1.5%

Other

8.0%

Short-Term

Investments

&

Other

Net

Assets

3.5%

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

DynaTech

VIP

Fund

FD-4

Annual

Report

instability

contributed

to

a

sharp

decline

in

equity

prices

and

contracting

economic

growth

in

the

first

half

of

the

reporting

period.

Nevertheless,

consumer

spending

continued

to

rise,

but

deteriorating

financial

conditions

and

investors’

expectations

for

slower

growth

continued

to

weigh

on

equity

markets.

Inflation

increased

during

the

first

half

of

the

period,

reaching

9.1%

in

June

2022,

the

highest

annual

rate

since

1981.

Continued

supply-chain

disruptions,

strong

consumer

demand,

and

volatile

energy

prices

drove

inflation

higher.

Russia’s

invasion

of

Ukraine

also

disrupted

financial

markets

and

led

to

a

rise

in

oil

and

commodity

prices

in

the

first

half

of

the

reporting

period.

Inflation

remained

elevated

but

abated

somewhat

in

the

latter

half

of

the

period,

decreasing

to

an

annual

rate

of

7.1%

in

November

2022.

The

labor

market

remained

strong

amid

the

high

level

of

nominal

growth,

which

drove

the

U.S.

unemployment

rate

down

to

3.5%

in

December

2022.

Wages

also

climbed

at

the

fastest

rate

in

decades,

which

added

to

some

investors’

inflation

concerns.

U.S.

gross

domestic

product

grew

in

the

second

half

of

2022

after

contracting

in

the

first

half

of

the

year.

Rising

interest

rates

translated

to

higher

borrowing

costs

for

individuals

and

businesses,

which

dampened

economic

activity,

especially

in

the

housing

and

financial

markets.

In

the

second

half

of

the

period,

rising

consumer

spending

and

increased

exports

amid

declining

inflation

led

to

solid

economic

growth.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

undertook

a

rapid

shift

toward

restrictive

monetary

policy,

starting

in

March

2022

with

its

first

rate

hike

since

2018.

Thereafter,

the

Fed

raised

the

federal

funds

rate

at

each

of

its

six

subsequent

meetings

to

end

the

period

at

a

range

of

4.25%–4.50%.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings

and

anticipated

additional

interest-rate

increases

at

future

meetings

to

curtail

inflation.

Investment

Strategy

We

use

fundamental,

bottom-up

research

to

seek

companies

meeting

our

criteria

of

growth

potential,

quality

and

valuation.

The

research

may

include

consideration

of

cash

flow,

income

statements,

balance

sheet

and

notes

to

them

and

its

analysis

typically

includes

forecasts

of

multiple

possible

future

outcomes.

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

During

the

one-year

period

under

review,

the

Fund

struggled

along

with

innovative

companies

in

a

deteriorating

macroeconomic

environment.

A

combination

of

rising

interest

rates,

elevated

inflation

and

recession

fears

contributed

to

increasing

equity

market

uncertainty

and

downside

volatility.

The

information

technology

(IT)

sector

and

IT

services

and

software

companies

sold

off

dramatically,

particularly

those

involved

in

advertising,

marketing,

customer

relations

and

payment

processing.

Key

detractors

included

e-commerce

platform

Shopify,

cloud-based

marketing

company

HubSpot

and

workplace

collaboration

software

provider

Atlassian.

The

health

care

sector

was

also

a

drag

on

relative

returns.

Relative

underperformance

came

from

an

underweight

position

in

Eli

Lilly

&

Co.

(not

held

at

period-end),

whose

stock

price

rose

over

the

period.

The

company

has

several

Top

10

Holdings

12/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Microsoft

Corp.

6.1%

Software,

United

States

Amazon.com,

Inc.

5.1%

Internet

&

Direct

Marketing

Retail,

United

States

Alphabet,

Inc.

3.6%

Interactive

Media

&

Services,

United

States

Mastercard,

Inc.

3.6%

IT

Services,

United

States

NVIDIA

Corp.

3.5%

Semiconductors

&

Semiconductor

Equipment,

United

States

Thermo

Fisher

Scientific,

Inc.

3.3%

Life

Sciences

Tools

&

Services,

United

States

Danaher

Corp.

3.2%

Life

Sciences

Tools

&

Services,

United

States

ServiceNow,

Inc.

2.7%

Software,

United

States

ASML

Holding

NV

2.5%

Semiconductors

&

Semiconductor

Equipment,

Netherlands

Intuit,

Inc.

2.5%

Software,

United

States

Franklin

DynaTech

VIP

Fund

FD-5

Annual

Report

drugs

driving

its

growth

along

with

a

promising

pipeline.

Conversely,

a

position

in

Thermo

Fischer

Scientific

outperformed

the

benchmark’s

results

and

benefited

relative

returns.

The

company

is

a

supplier

of

scientific

instrumentation,

reagents

and

consumables.

Inspire

Medical

Systems

was

another

relative

contributor

to

health

care

sector

performance.

The

company

is

radically

transforming

the

way

sleep

apnea

is

treated

and

quickly

gaining

market

share.

The

Fund

and

its

benchmark

saw

steep

broad-based

declines

among

entertainment

and

media

companies

in

the

communication

services

sector.

Underweightings

in

weak-performing

Meta

Platforms

(not

held

at

period-end)

and

Netflix

(not

held

at

period-end)

contributed

to

relative

returns

over

the

period.

A

stalling

economy

hurt

advertising-

based

companies

like

Meta,

while

Netflix

faced

growing

competition.

In

contrast,

an

overweighting

in

Singapore-

based

e-commerce,

payments

and

online

gaming

company

Sea

(not

held

at

period-end)

detracted

from

relative

performance.

The

company’s

flagship

gaming

segment

significantly

slowed

down

post-COVID,

which

has

weighed

on

revenue.

Elsewhere,

the

utilities

sector,

generally

considered

a

“safe

haven”

during

market

volatility,

was

a

leading

contributor

to

relative

returns.

The

sector

was

led

by

a

position

in

NextEra

Energy,

a

company

that

invests

heavily

in

renewable

energy

projects

and

has

become

one

of

the

largest

builders

of

solar

and

wind

assets

in

the

U.S.

Plans

by

the

Biden

administration

to

alleviate

supply-chain

bottlenecks

for

solar

panel

imports

was

welcome

news

for

solar

stocks,

including

NextEra.

Furthermore,

the

company

has

been

a

leader

in

decarbonization

during

a

time

of

rapid

transitioning

from

fossil

fuels

to

cleaner

alternatives.

Thank

you

for

your

participation

in

Franklin

DynaTech

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

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

4

Fund

Expenses

Franklin

DynaTech

VIP

Fund

FD-6

Annual

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

184/365

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

7/1/22

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

4

$1,000

$948.70

$4.65

$1,020.43

$4.82

0.95%

FD-7

Annual

Report

GOF

VIP

P1

P2

P4

P5

12/22

SUPPLEMENT

DATED

DECEMBER

23,

2022

TO

THE

CURRENTLY

EFFECTIVE

PROSPECTUSES

OF

EACH

FUND

LISTED

BELOW

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

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

TEMPLETON

DEVELOPING

MARKETS

VIP

FUND

TEMPLETON

FOREIGN

VIP

FUND

TEMPLETON

GLOBAL

BOND

VIP

FUND

TEMPLETON

GROWTH

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

I.

For

Franklin

Allocation

VIP

Fund,

Franklin

Global

Real

Estate

VIP

Fund,

Franklin

Income

VIP

Fund,

Franklin

Strategic

Income

VIP

Fund

and

Franklin

VolSmart

Allocation

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-

focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-

term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

II.

For

Franklin

Dynatech

VIP

Fund,

Franklin

Growth

and

Income

VIP

Fund,

Franklin

Large

Cap

Growth

VIP

Fund,

Franklin

Rising

Dividends

VIP

Fund,

Franklin

Small-Mid

Cap

Growth

VIP

Fund,

Templeton

Developing

Markets

VIP

Fund,

Templeton

Global

Bond

VIP

Fund,

Templeton

Foreign

VIP

Fund

and

Templeton

Growth

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

FD-8

Annual

Report

ESG-focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

In

certain

circumstances,

there

may

be

times

when

not

every

investment

is

assessed

for

ESG

factors

and,

when

they

are,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

III.

For

Franklin

U.S.

Government

Securities

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

Social

and

Governance

Considerations

Social

and/or

governance

considerations

are

not

the

only

factors

considered

by

the

investment

manager

and

may

not

be

a

determinative

factor

in

the

investment

manager’s

selection

of

securities

for

the

Fund.

In

addition,

the

investment

manager

may

not

be

able

to

give

such

considerations

meaningful

weight

if

the

availability

of

appropriate

securities

for

the

Fund’s

portfolio

is

limited.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

certain

investments

may

differ

from

that

of

investors,

third

party

service

providers,

such

as

ratings

providers,

or

other

funds.

While

the

investment

manager

views

social

and

governance

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

DynaTech

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FD-9

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$11.85

$10.92

$8.06

$6.46

$7.46

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.02)

(0.08)

(0.03)

(0.01)

(0.02)

Net

realized

and

unrealized

gains

(losses)

...........

(4.52)

1.79

3.47

1.99

0.42

Total

from

investment

operations

....................

(4.54)

1.71

3.44

1.98

0.40

Less

distributions

from:

Net

realized

gains

.............................

(4.35)

(0.78)

(0.58)

(0.38)

(1.40)

Net

asset

value,

end

of

year

.......................

$2.96

$11.85

$10.92

$8.06

$6.46

Total

return

c

...................................

(39.96)%

16.14%

44.88%

31.16%

3.14%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.91%

1.03%

1.31%

1.33%

1.30%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.90%

d

0.96%

0.96%

d

0.96%

d

0.96%

d

Net

investment

(loss)

............................

(0.49)%

(0.71)%

(0.36)%

(0.19)%

(0.20)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$74,486

$139,784

$125,731

$97,964

$69,233

Portfolio

turnover

rate

............................

34.99%

74.97%

15.70%

26.29%

15.17%

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

DynaTech

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FD-10

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$11.23

$10.40

$7.71

$6.20

$7.21

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.03)

(0.09)

(0.04)

(0.02)

(0.02)

Net

realized

and

unrealized

gains

(losses)

...........

(4.26)

1.70

3.31

1.91

0.41

Total

from

investment

operations

....................

(4.29)

1.61

3.27

1.89

0.39

Less

distributions

from:

Net

realized

gains

.............................

(4.35)

(0.78)

(0.58)

(0.38)

(1.40)

Net

asset

value,

end

of

year

.......................

$2.59

$11.23

$10.40

$7.71

$6.20

Total

return

c

...................................

(40.20)%

16.09%

44.71%

31.03%

3.10%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.01%

1.13%

1.41%

1.43%

1.40%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.00%

d

1.06%

1.06%

d

1.06%

d

1.06%

d

Net

investment

(loss)

............................

(0.59)%

(0.81)%

(0.47)%

(0.29)%

(0.30)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$20,496

$36,515

$38,425

$31,761

$29,681

Portfolio

turnover

rate

............................

34.99%

74.97%

15.70%

26.29%

15.17%

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments,

December

31,

2022

Franklin

DynaTech

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FD-11

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

96.3%

Aerospace

&

Defense

1.1%

a

Axon

Enterprise,

Inc.

...................................

United

States

3,712

$

615,932

HEICO

Corp.

........................................

United

States

2,856

438,796

1,054,728

Auto

Components

0.0%

†

a,b

Mobileye

Global,

Inc.,

A

.................................

Israel

900

31,554

Automobiles

1.9%

a

Tesla,

Inc.

...........................................

United

States

14,462

1,781,429

Biotechnology

1.2%

a

Argenx

SE

..........................................

Netherlands

1,713

643,041

a

Ascendis

Pharma

A/S,

ADR

.............................

Denmark

571

69,736

a

Genmab

A/S,

ADR

....................................

Denmark

472

20,003

a

Halozyme

Therapeutics,

Inc.

.............................

United

States

5,712

325,013

a

Moderna,

Inc.

........................................

United

States

285

51,192

1,108,985

Capital

Markets

2.5%

FactSet

Research

Systems,

Inc.

..........................

United

States

571

229,091

Moody's

Corp.

........................................

United

States

571

159,092

MSCI,

Inc.

...........................................

United

States

2,284

1,062,448

Tradeweb

Markets,

Inc.,

A

...............................

United

States

14,280

927,201

2,377,832

Chemicals

1.5%

Corteva,

Inc.

.........................................

United

States

17,136

1,007,254

FMC

Corp.

..........................................

United

States

1,428

178,215

Linde

plc

............................................

United

Kingdom

856

279,210

1,464,679

Construction

&

Engineering

0.9%

Quanta

Services,

Inc.

..................................

United

States

5,997

854,573

Electric

Utilities

1.9%

NextEra

Energy,

Inc.

...................................

United

States

21,134

1,766,802

Electrical

Equipment

0.1%

a

Array

Technologies,

Inc.

................................

United

States

1,454

28,106

Hubbell,

Inc.

.........................................

United

States

204

47,875

a

Shoals

Technologies

Group,

Inc.,

A

........................

United

States

1,713

42,259

118,240

Electronic

Equipment,

Instruments

&

Components

1.5%

Amphenol

Corp.,

A

....................................

United

States

2,856

217,456

Keyence

Corp.

.......................................

Japan

1,142

443,224

a

Keysight

Technologies,

Inc.

..............................

United

States

3,141

537,331

a

Samsung

SDI

Co.

Ltd.

.................................

South

Korea

428

201,809

1,399,820

Energy

Equipment

&

Services

0.8%

Baker

Hughes

Co.

.....................................

United

States

2,310

68,214

a

Oceaneering

International,

Inc.

...........................

United

States

1,380

24,136

Schlumberger

Ltd.

.....................................

United

States

13,241

707,864

800,214

Equity

Real

Estate

Investment

Trusts

(REITs)

0.6%

Crown

Castle,

Inc.

.....................................

United

States

571

77,450

SBA

Communications

Corp.

.............................

United

States

1,713

480,171

557,621

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

DynaTech

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FD-12

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Health

Care

Equipment

&

Supplies

6.9%

Abbott

Laboratories

....................................

United

States

5,712

$

627,121

a

Dexcom,

Inc.

.........................................

United

States

1,139

128,980

a

Edwards

Lifesciences

Corp.

.............................

United

States

2,818

210,251

a

Haemonetics

Corp.

....................................

United

States

285

22,415

a

IDEXX

Laboratories,

Inc.

................................

United

States

4,141

1,689,362

a

Inspire

Medical

Systems,

Inc.

............................

United

States

4,569

1,150,840

a

Insulet

Corp.

.........................................

United

States

1,999

588,486

a

Intuitive

Surgical,

Inc.

..................................

United

States

5,712

1,515,679

STERIS

plc

..........................................

United

States

2,309

426,449

Stryker

Corp.

........................................

United

States

571

139,604

6,499,187

Health

Care

Providers

&

Services

1.9%

UnitedHealth

Group,

Inc.

................................

United

States

3,427

1,816,927

Health

Care

Technology

0.5%

a

Veeva

Systems,

Inc.,

A

.................................

United

States

2,907

469,132

Hotels,

Restaurants

&

Leisure

0.6%

a

Airbnb,

Inc.,

A

........................................

United

States

2,883

246,496

a

Booking

Holdings,

Inc.

.................................

United

States

142

286,170

532,666

Interactive

Media

&

Services

3.9%

a

Alphabet,

Inc.,

A

......................................

United

States

34,272

3,023,819

a

Alphabet,

Inc.,

C

......................................

United

States

4,632

410,997

a

ZoomInfo

Technologies,

Inc.,

A

...........................

United

States

9,996

300,979

3,735,795

Internet

&

Direct

Marketing

Retail

6.1%

a

Amazon.com,

Inc.

.....................................

United

States

57,120

4,798,080

a

Etsy,

Inc.

............................................

United

States

569

68,155

a

MercadoLibre,

Inc.

....................................

Brazil

1,142

966,406

5,832,641

IT

Services

8.9%

a,c

Adyen

NV,

144A,

Reg

S

................................

Netherlands

1,142

1,585,307

a

Cloudflare,

Inc.,

A

.....................................

United

States

2,856

129,120

a

Globant

SA

..........................................

United

States

1,428

240,133

Jack

Henry

&

Associates,

Inc.

............................

United

States

714

125,350

Mastercard,

Inc.,

A

....................................

United

States

9,710

3,376,458

a

MongoDB,

Inc.

.......................................

United

States

4,569

899,362

a

Shopify,

Inc.,

A

.......................................

Canada

12,928

448,852

a

Snowflake,

Inc.,

A

.....................................

United

States

2,856

409,950

Visa,

Inc.,

A

..........................................

United

States

5,712

1,186,725

8,401,257

Life

Sciences

Tools

&

Services

8.1%

Danaher

Corp.

.......................................

United

States

11,424

3,032,158

Lonza

Group

AG

......................................

Switzerland

1,142

560,550

a

Repligen

Corp.

.......................................

United

States

5,712

967,099

Thermo

Fisher

Scientific,

Inc.

............................

United

States

5,712

3,145,541

7,705,348

Oil,

Gas

&

Consumable

Fuels

0.0%

†

New

Fortress

Energy,

Inc.

...............................

United

States

571

24,222

Pharmaceuticals

1.6%

AstraZeneca

plc,

ADR

..................................

United

Kingdom

12,566

851,975

Eli

Lilly

&

Co.

........................................

United

States

1,285

470,104

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

DynaTech

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FD-13

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Pharmaceuticals

(continued)

a

Jazz

Pharmaceuticals

plc

...............................

United

States

1,142

$

181,932

1,504,011

Professional

Services

0.4%

a

CoStar

Group,

Inc.

....................................

United

States

4,561

352,474

Road

&

Rail

0.1%

a

Uber

Technologies,

Inc.

.................................

United

States

3,552

87,841

Semiconductors

&

Semiconductor

Equipment

13.4%

Analog

Devices,

Inc.

...................................

United

States

11,424

1,873,879

ASM

International

NV

..................................

Netherlands

1,142

289,751

ASML

Holding

NV,

NYRS

...............................

Netherlands

4,284

2,340,777

a

Enphase

Energy,

Inc.

..................................

United

States

3,051

808,393

Entegris,

Inc.

.........................................

United

States

5,712

374,650

a

Intel

Corp.

...........................................

United

States

2,960

78,233

KLA

Corp.

...........................................

United

States

2,856

1,076,797

Lam

Research

Corp.

...................................

United

States

2,856

1,200,377

a

Lattice

Semiconductor

Corp.

.............................

United

States

2,919

189,385

Monolithic

Power

Systems,

Inc.

...........................

United

States

2,998

1,060,123

NVIDIA

Corp.

........................................

United

States

22,848

3,339,007

a

SolarEdge

Technologies,

Inc.

............................

United

States

285

80,732

12,712,104

Software

27.9%

a

Adobe,

Inc.

..........................................

United

States

1,713

576,476

a

ANSYS,

Inc.

.........................................

United

States

3,427

827,929

a

Aspen

Technology,

Inc.

.................................

United

States

2,856

586,622

a

Atlassian

Corp.,

A

.....................................

United

States

5,712

735,020

a

Cadence

Design

Systems,

Inc.

...........................

United

States

12,852

2,064,545

Constellation

Software,

Inc.

..............................

Canada

142

221,700

a

Crowdstrike

Holdings,

Inc.,

A

.............................

United

States

4,284

451,062

a

Datadog,

Inc.,

A

......................................

United

States

8,568

629,748

a

Descartes

Systems

Group,

Inc.

(The)

......................

Canada

2,284

159,081

a

Gitlab,

Inc.,

A

........................................

United

States

6,848

311,173

a

HubSpot,

Inc.

........................................

United

States

3,998

1,155,942

Intuit,

Inc.

...........................................

United

States

5,997

2,334,152

a

Microsoft

Corp.

.......................................

United

States

23,990

5,753,282

a

Monday.com

Ltd.

......................................

United

States

3,688

449,936

a

Palo

Alto

Networks,

Inc.

................................

United

States

5,997

836,821

a

Paycom

Software,

Inc.

.................................

United

States

1,428

443,123

a

Paylocity

Holding

Corp.

.................................

United

States

1,428

277,403

a

Procore

Technologies,

Inc.

..............................

United

States

5,712

269,492

Roper

Technologies,

Inc.

................................

United

States

2,856

1,234,049

a

Salesforce,

Inc.

.......................................

United

States

5,799

768,890

a

ServiceNow,

Inc.

......................................

United

States

6,568

2,550,157

a

Synopsys,

Inc.

.......................................

United

States

7,140

2,279,731

a

Tyler

Technologies,

Inc.

.................................

United

States

1,999

644,498

a

Workday,

Inc.,

A

......................................

United

States

5,712

955,789

a

Xero

Ltd.

............................................

New

Zealand

285

13,589

26,530,210

Technology

Hardware,

Storage

&

Peripherals

1.8%

a

Apple,

Inc.

..........................................

United

States

13,137

1,706,890

Trading

Companies

&

Distributors

0.2%

Fastenal

Co.

.........................................

United

States

3,998

189,185

Total

Common

Stocks

(Cost

$75,193,050)

......................................

91,416,367

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

DynaTech

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FD-14

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Preferred

Stocks

0.2%

Life

Sciences

Tools

&

Services

0.2%

d

Sartorius

AG,

0.34%

...................................

Germany

571

$

225,464

Total

Preferred

Stocks

(Cost

$237,387)

.........................................

225,464

Total

Long

Term

Investments

(Cost

$75,430,437)

................................

91,641,831

a

Short

Term

Investments

3.7%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

3.7%

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

....

United

States

3,506,161

3,506,161

Total

Money

Market

Funds

(Cost

$3,506,161)

...................................

3,506,161

a

a

a

g

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.0%

†

Money

Market

Funds

0.0%

†

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

....

United

States

28,168

28,168

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$28,168)

...............................................................

28,168

Total

Short

Term

Investments

(Cost

$3,534,329

)

.................................

3,534,329

a

Total

Investments

(Cost

$78,964,766)

100.2%

...................................

$95,176,160

Other

Assets,

less

Liabilities

(0.2)%

...........................................

(193,693)

Net

Assets

100.0%

...........................................................

$94,982,467

See

Abbreviations

on

page

FD-

26

.

†

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

December

31,

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

December

31,

2022,

the

value

of

this

security

was

$1,585,307,

representing

1.7%

of

net

assets.

d

Variable

rate

security.

The

rate

shown

represents

the

yield

at

period

end.

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

securities

on

loan.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

December

31,

2022

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FD-15

Franklin

DynaTech

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$75,430,437

Cost

-

Non-controlled

affiliates

(Not

e

3e)

........................................................

3,534,329

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$27,608)

....................................

$91,641,831

Value

-

Non-controlled

affiliates

(Not

e

3e)

.......................................................

3,534,329

Cash

....................................................................................

185

Receivables:

Capital

shares

sold

........................................................................

78,541

Dividends

...............................................................................

17,697

Total

assets

..........................................................................

95,272,583

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

47,127

Management

fees

.........................................................................

137,298

Distribution

fees

..........................................................................

22,638

Professional

fees

.........................................................................

37,282

Trustees'

fees

and

expenses

.................................................................

1,135

Payable

upon

return

of

securities

loaned

(Note

1

c

)

..................................................

28,168

Accrued

expenses

and

other

liabilities

...........................................................

16,468

Total

liabilities

.........................................................................

290,116

Net

assets,

at

value

.................................................................

$94,982,467

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$92,121,545

Total

distributable

earnings

(losses)

.............................................................

2,860,922

Net

assets,

at

value

.................................................................

$94,982,467

Franklin

DynaTech

VIP

Fund

Class

2:

Net

assets,

at

value

.......................................................................

$74,486,144

Shares

outstanding

........................................................................

25,138,345

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$2.96

Class

4:

Net

assets,

at

value

.......................................................................

$20,496,323

Shares

outstanding

........................................................................

7,912,772

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$2.59

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2022

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FD-16

Franklin

DynaTech

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$5,012)

Unaffiliated

issuers

........................................................................

$419,557

Non-controlled

affiliates

(Not

e

3e)

.............................................................

37,340

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

1,891

Non-controlled

affiliates

(Not

e

3e)

.............................................................

428

Total

investment

income

...................................................................

459,216

Expenses:

Management

fees

(Note

3

a

)

...................................................................

682,075

Interest

expense

...........................................................................

1,530

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

215,613

    Class

4

................................................................................

85,732

Custodian

fees

(Note

4

)

......................................................................

4,829

Reports

to

shareholders

fees

..................................................................

(30,957)

Professional

fees

...........................................................................

59,817

Trustees'

fees

and

expenses

..................................................................

2,472

Other

....................................................................................

11,354

Total

expenses

.........................................................................

1,032,465

Expense

reductions

(Note

4

)

...............................................................

(5)

Expenses

waived/paid

by

affiliates

(Not

e

3e

and

3f)

..............................................

(9,944)

Net

expenses

.........................................................................

1,022,516

Net

investment

income

(loss)

............................................................

(563,300)

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

(13,002,390)

Foreign

currency

transactions

................................................................

(4,533)

Net

realized

gain

(loss)

..................................................................

(13,006,923)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(51,401,410)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

22

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(51,401,388)

Net

realized

and

unrealized

gain

(loss)

............................................................

(64,408,311)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(64,971,611)

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.

Annual

Report

FD-17

Franklin

DynaTech

VIP

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

............................................

$(563,300)

$(1,273,163)

Net

realized

gain

(loss)

.................................................

(13,006,923)

57,499,589

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(51,401,388)

(31,583,948)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(64,971,611)

24,642,478

Distributions

to

shareholders:

Class

2

.............................................................

(44,303,180)

(8,441,223)

Class

4

.............................................................

(13,476,408)

(2,584,190)

Total

distributions

to

shareholders

..........................................

(57,779,588)

(11,025,413)

Capital

share

transactions:

(Note

2

)

Class

2

.............................................................

29,862,210

3,566,947

Class

4

.............................................................

11,572,419

(5,041,405)

Total

capital

share

transactions

............................................

41,434,629

(1,474,458)

Net

increase

(decrease)

in

net

assets

...................................

(81,316,570)

12,142,607

Net

assets:

Beginning

of

year

.......................................................

176,299,037

164,156,430

End

of

year

...........................................................

$94,982,467

$176,299,037

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

Franklin

DynaTech

VIP

Fund

FD-18

Annual

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.

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

Franklin

DynaTech

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

two

classes

of

shares:

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

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

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,

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

December

31,

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

FD-19

Annual

Report

Franklin

DynaTech

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.

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

FD-20

Annual

Report

Franklin

DynaTech

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

December

31,

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

FD-21

Annual

Report

Franklin

DynaTech

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

December

31,

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

year

ended

December

31,

2022,

the

gross

effective

investment

management

fee

rate

was

0.616%

of

the

Fund’s

average

daily

net

assets.

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

2

Shares:

Shares

sold

...................................

3,947,067

$19,286,008

2,061,212

$24,333,567

Shares

issued

in

reinvestment

of

distributions

..........

14,198,338

44,298,814

761,157

8,441,223

Shares

redeemed

...............................

(4,805,563)

(33,722,612)

(2,541,054)

(29,207,843)

Net

increase

(decrease)

..........................

13,339,842

$29,862,210

281,315

$3,566,947

Class

4

Shares:

Shares

sold

...................................

896,180

$4,305,853

404,187

$4,478,776

Shares

issued

in

reinvestment

of

distributions

..........

4,936,413

13,476,408

245,645

2,584,190

Shares

redeemed

...............................

(1,171,235)

(6,209,842)

(1,094,541)

(12,104,371)

Net

increase

(decrease)

..........................

4,661,358

$11,572,419

(444,709)

$(5,041,405)

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

0.630%

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

FD-22

Annual

Report

Franklin

DynaTech

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

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

year

ended

December

31,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

DynaTech

VIP

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

$

1,413,440

$

27,815,798

$

(25,723,077)

$

—

$

—

$

3,506,161

3,506,161

$

37,340

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

$1,337,150

$6,087,868

$(7,396,850)

$—

$—

$28,168

28,168

$428

Total

Affiliated

Securities

...

$2,750,590

$33,903,666

$(33,119,927)

$—

$—

$3,534,329

$37,768

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FD-23

Annual

Report

Franklin

DynaTech

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

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

0.71%,

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

year

ended

December

31,

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,

2022,

the

capital

loss

carryforwards

were

as

follows:

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021,

was

as

follows:

At

December

31,

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

year

ended

December

31,

2022,

aggregated 

$38,978,632

and

$57,803,898,

respectively.

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$12,469,749

2022

2021

Distributions

paid

from:

Long

term

capital

gain

......................................................

$57,779,588

$11,025,413

Cost

of

investments

..........................................................................

$79,845,507

Unrealized

appreciation

........................................................................

$24,452,599

Unrealized

depreciation

........................................................................

(9,121,946)

Net

unrealized

appreciation

(depreciation)

..........................................................

$15,330,653

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FD-24

Annual

Report

Franklin

DynaTech

VIP

Fund

(continued)

At

December

31,

2022,

in

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received $28,168 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

matured

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.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

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

year

ended

December

31,

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)

6.

Investment

Transactions

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FD-25

Annual

Report

Franklin

DynaTech

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

December

31,

2022,

in

valuing

the

Fund's assets

carried

at

fair

value,

is

as

follows:

11.

New

Accounting

Pronouncements

In June

2022,

the 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

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

will

not

have

a

material

impact

on

the

financial

statements.

Level

1

Level

2

Level

3

Total

Franklin

DynaTech

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

1,054,728

$

—

$

—

$

1,054,728

Auto

Components

......................

31,554

—

—

31,554

Automobiles

..........................

1,781,429

—

—

1,781,429

Biotechnology

.........................

465,944

643,041

—

1,108,985

Capital

Markets

........................

2,377,832

—

—

2,377,832

Chemicals

...........................

1,464,679

—

—

1,464,679

Construction

&

Engineering

...............

854,573

—

—

854,573

Electric

Utilities

........................

1,766,802

—

—

1,766,802

Electrical

Equipment

....................

118,240

—

—

118,240

Electronic

Equipment,

Instruments

&

Components

........................

754,787

645,033

—

1,399,820

Energy

Equipment

&

Services

.............

800,214

—

—

800,214

Equity

Real

Estate

Investment

Trusts

(REITs)

.

557,621

—

—

557,621

Health

Care

Equipment

&

Supplies

.........

6,499,187

—

—

6,499,187

Health

Care

Providers

&

Services

..........

1,816,927

—

—

1,816,927

Health

Care

Technology

.................

469,132

—

—

469,132

Hotels,

Restaurants

&

Leisure

.............

532,666

—

—

532,666

Interactive

Media

&

Services

..............

3,735,795

—

—

3,735,795

Internet

&

Direct

Marketing

Retail

..........

5,832,641

—

—

5,832,641

IT

Services

...........................

6,815,950

1,585,307

—

8,401,257

Life

Sciences

Tools

&

Services

............

7,144,798

560,550

—

7,705,348

Oil,

Gas

&

Consumable

Fuels

.............

24,222

—

—

24,222

Pharmaceuticals

.......................

1,504,011

—

—

1,504,011

Professional

Services

...................

352,474

—

—

352,474

Road

&

Rail

..........................

87,841

—

—

87,841

Semiconductors

&

Semiconductor

Equipment

.

12,422,353

289,751

—

12,712,104

Software

.............................

26,516,621

13,589

—

26,530,210

Technology

Hardware,

Storage

&

Peripherals

.

1,706,890

—

—

1,706,890

Trading

Companies

&

Distributors

..........

189,185

—

—

189,185

Preferred

Stocks

........................

—

225,464

—

225,464

Short

Term

Investments

...................

3,534,329

—

—

3,534,329

Total

Investments

in

Securities

...........

$91,213,425

$3,962,735

a

$—

$95,176,160

a

Includes

foreign

securities

valued

at

$3,962,735,

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

FD-26

Annual

Report

Franklin

DynaTech

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

other

than

those

already

disclosed

in

the

financial

statements.

Abbreviations

Selected

Portfolio

ADR

American

Depositary

Receipt

NYRS

New

York

Registry

Shares

Franklin

Templeton

Variable

Insurance

Products

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

FD-27

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Templeton

Variable

Insurance

Products

Trust

and

Shareholders

of

Franklin

DynaTech

VIP

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Franklin

DynaTech

VIP

Fund

(one

of

the

funds

constituting

Franklin

Templeton

Variable

Insurance

Products

Trust,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2022,

the

related

statement

of

operations

for

the

year

ended

December

31,

2022,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2022,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian

and

transfer

agent.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Templeton

Variable

Insurance

Products

Trust

Tax

Information

(unaudited)

FD-28

Annual

Report

Franklin

DynaTech

VIP

Fund

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

period

ended

December

31,

2022:

Pursuant

to:

Amount

Reported

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$57,779,588

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$339,328

FI-1

Annual

Report

Franklin

Income

VIP

Fund

This

annual

report

for

Franklin

Income

VIP

Fund

covers

the

fiscal

year

ended

December

31,

2022

.

Class

4

Performance

Summary

as

of

December

31,

2022

Average

annual

total

return

of

Class

4

shares*

represents

the

average

annual

change

in

value,

assuming

reinvestment

of

dividends

and

capital

gains.

Average

returns

smooth

out

variations

in

returns,

which

can

be

significant;

they

are

not

the

same

as

year-by-year

results.

*The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Performance

reflects

the

Fund’s

Class

4

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.

Share

Class

Average

Annual

Total

Return

–

4

1-Year

-5.59%

5-Year

+4.19%

10-Year

+5.40%

FI-2

Annual

Report

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

(12/31/12–12/31/22)

The

graph

below

shows

the

change

in

value

of

a

hypothetical

$10,000

investment

in

the

Fund

over

the

indicated

period

and

includes

reinvestment

of

any

income

or

distributions.

The

Fund’s

performance*

is

compared

to

the

performance

of

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

)

and

the

Fund’s

Blended

Benchmark.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Important

Notes

to

Performance

Information

preceding

the

Fund

Summaries.

**Source:

FactSet.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

***Source:

FactSet.

The

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

and

25%

Bloomberg

U.S.

Aggregate

Bond

Index.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

FI-3

Annual

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.

The

Fund’s

share

price

and

yield

will

be

affected

by

interest

rate

movements.

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.

These

securities

carry

a

greater

degree

of

credit

risk

relative

to

investment-grade

securities.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

one-year

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

primary

benchmark,

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

posted

a

-18.11%

total

return.

1

The

Fund’s

secondary

benchmark,

the

Blended

Benchmark,

posted

a

-8.56%

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

-18.11%

total

return

for

the

12

months

ended

December

31,

2022.

1

High

inflation,

rising

interest

rates

and

geopolitical

instability

contributed

to

a

sharp

decline

in

equity

prices

and

contracting

economic

growth

in

the

first

half

of

the

reporting

period.

Nevertheless,

consumer

spending

continued

to

rise,

but

deteriorating

financial

conditions

and

investors’

expectations

for

slower

growth

continued

to

weigh

on

equity

markets.

Portfolio

Composition

12/31/22

%

of

Total

Net

Assets

Diversified

Financial

Services

9.5%

Banks

9.1%

Semiconductors

&

Semiconductor

Equipment

6.6%

Oil,

Gas

&

Consumable

Fuels

5.9%

Health

Care

Providers

&

Services

5.7%

Pharmaceuticals

5.6%

Electric

Utilities

4.7%

Media

4.4%

Aerospace

&

Defense

4.0%

Metals

&

Mining

3.2%

Hotels,

Restaurants

&

Leisure

2.5%

Consumer

Finance

2.3%

Chemicals

2.2%

Capital

Markets

2.0%

Other*

30.0%

Short-Term

Investments

&

Other

Net

Assets

2.3%

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-4

Annual

Report

The

U.S.

bond

market,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index,

posted

a

-13.01%

total

return

for

the

12

months

ended

December

31,

2022.

1

High

inflation

amid

a

strong

labor

market

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

course

of

the

global

economy.

While

interest

rates

increased

along

the

entire

yield

curve

(yields

for

all

Treasury

maturities),

relatively

large

increases

in

shorter-term

interest

rates

led

the

yield

curve

to

invert

during

the

reporting

period

as

investors

became

increasingly

concerned

about

the

economic

outlook.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

seven

times,

beginning

in

March

2022.

By

the

end

of

the

period

the

federal

funds

target

rate

stood

at

a

range

of

4.25%–4.50%,

a

full

425

basis

points

higher

than

the

beginning

of

the

year.

The

Fed

noted

in

its

December

2022

meeting

that

inflation

remained

elevated

amid

robust

job

growth

and

low

unemployment.

In

order

to

achieve

its

goal

of

2%

long-run

inflation,

the

Fed

stated

it

anticipates

making

additional

increases

to

the

federal

funds

target

rate.

Furthermore,

the

Fed

indicated

it

would

continue

to

reduce

its

U.S.

Treasury

(UST)

and

agency

debt

and

mortgage-backed

security

holdings.

UST

bonds,

as

measured

by

the

Bloomberg

U.S.

Treasury

Index,

posted

a

-12.46%

total

return

for

the

12-month

period.

1

The

10-year

UST

yield

(which

moves

inversely

to

price)

increased

sharply

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

-11.81%

total

return

for

the

period

as

mortgage

rates

rose

to

the

highest

level

in

over

two

decades

and

modest

prepayment

rates

led

to

increasing

interest-rate

sensitivity.

1

Corporate

bond

prices

also

declined,

constrained

by

inflation,

rising

interest

rates

and

concerns

about

the

impact

of

elevated

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

Index,

posted

a

-11.19%

total

return,

while

investment-grade

corporate

bonds,

as

represented

by

the

Bloomberg

U.S.

Corporate

Investment

Grade

Index,

posted

a

-15.76%

total

return.

1

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

ratings

assigned

by

rating

organizations.

Manager’s

Discussion

The

Fund

posted

a

negative

total

return

on

an

absolute

basis

during

the

period

with

outperformance

relative

to

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

under

review.

The

equity

component

of

the

Fund’s

blended

benchmark

decreased

with

the

MSCI

USA

High

Dividend

Yield

Index

posting

negative

returns

for

the

12-month

period.

The

Fund’s

equity

positions

outperformed

the

Fund’s

blended

benchmark.

Government

bond

yields

increased,

and

corporate

credit

spreads

widened

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

posted

negative

returns,

and

the

Bloomberg

U.S.

High

Yield

Very

Liquid

Index

also

posted

negative

returns

during

the

period.

The

Fund

entered

the

period

with

an

equity

weighting

of

a

little

over

two

thirds

with

the

remainder

in

fixed

income

and

a

modest

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

market

and

increased

exposure

to

the

fixed

income

market

as

yields

moved

higher

Franklin

Income

VIP

Fund

FI-5

Annual

Report

and

credit

spreads

increased.

The

Fund’s

equity

weighting

at

period-end

was

well

under

one

half,

with

the

remainder

in

fixed

income

and

modest

holdings

in

cash

equivalents.

Fixed

Income

The

Fund’s

fixed

income

holdings

posted

negative

returns

during

the

period

with

outperformance

relative

to

the

Fund’s

blended

fixed

income

benchmark.

As

an

asset

class,

fixed

income

underperformed

the

equity

asset

class,

which

benefited

the

Fund

given

its

overweight

allocation

to

equities

relative

to

the

Fund’s

blended

benchmark

at

the

start

of

the

period

under

review.

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

outperformance

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

which

resulted

in

an

overweight

allocation

to

fixed

income

by

period

end.

Every

corporate

credit

sector

posted

negative

absolute

returns

during

the

period

under

review

with

the

exception

of

energy.

Health

care,

consumer

discretionary

and

communication

services

were

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

USTs

and

agency

MBS

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

company

CHS/Community

Health

Systems

was

a

key

detractor

as

increased

labor

costs

resulted

in

margin

pressure

for

the

company.

Additional

detractors

in

the

health

care

space

included

pharmaceutical

peers

Bausch

Health

and

Endo

Pharmaceutical.

Outside

of

health

care,

Diamond

Sports

(not

held

at

period-end)

and

Clear

Channel

Outdoor

Holdings

in

the

communication

services

sector

weighed

on

results.

Calumet

Specialty

Products

Partners

in

the

energy

sector

was

a

key

contributor

during

the

period

as

the

company

successfully

launched

its

renewable

diesel

and

sustainable

aviation

fuel

businesses.

Outside

of

energy,

bond

positions

in

Barclays

Bank

and

Boeing

were

notable

contributors

with

spread

tightening

prior

to

period-end.

Equity

Equity

holdings

posted

negative

returns

during

the

period

with

outperformance

relative

to

the

Fund’s

equity

benchmark.

As

an

asset

class,

equities

outperformed

fixed

income

during

the

period.

After

beginning

the

period

with

an

overweight

allocation

to

equities,

the

Fund

actively

reduced

exposure

to

the

equity

market

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,

industrials

and

utilities

sectors

while

seeing

negative

contributions

from

consumer

discretionary,

communication

services,

information

technology

(IT)

and

financials.

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

AbbVie,

Bristol-Myers

Squibb

and

Merck

(not

held

at

period-end)

within

the

health

care

sector,

Lockheed

Martin

in

the

industrial

sector

as

well

as

Sempra

Energy

and

American

Electric

Power

within

the

utilities

sector.

Top

Five

Fixed

Income

Holdings

12/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

U.S.

Treasury

Notes

7.2%

Diversified

Financial

Services

,

United

States

CHS/Community

Health

Systems,

Inc.

2.4%

Health

Care

Providers

&

Services

,

United

States

Bausch

Health

Cos.,

Inc.

1.6%

Pharmaceuticals

,

United

States

Tenet

Healthcare

Corp.

1.6%

Health

Care

Providers

&

Services

,

United

States

U.S.

Treasury

Bonds

1.5%

Diversified

Financial

Services

,

United

States

Top

Five

Equity

Holdings

12/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Texas

Instruments,

Inc.

1.9%

Semiconductors

&

Semiconductor

Equipment

,

United

States

JPMorgan

Chase

&

Co.

1.6%

Banks

,

United

States

Chevron

Corp.

1.5%

Oil,

Gas

&

Consumable

Fuels

,

United

States

Exxon

Mobil

Corp.

1.4%

Oil,

Gas

&

Consumable

Fuels

,

United

States

Lockheed

Martin

Corp.

1.4%

Aerospace

&

Defense

,

United

States

Franklin

Income

VIP

Fund

FI-6

Annual

Report

Key

detractors

included

equity

positions

in

the

communication

services

sector

with

Amazon.com

and

Comcast

generating

negative

returns.

Additionally,

IT

players

Intel

and

Workday

weighed

on

results.

Finally,

Bank

of

America

and

JPMorgan

Chase

in

the

financials

sector

were

also

detractors

as

growth

concerns

outpaced

the

benefits

of

rising

interest

rates.

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.

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

December

31,

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

4

Fund

Expenses

Franklin

Income

VIP

Fund

FI-7

Annual

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

184/365

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

7/1/22

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

4

$1,000

$1,022.90

$3.97

$1,021.28

$3.97

0.78%

FI-8

Annual

Report

GOF

VIP

P1

P2

P4

P5

12/22

SUPPLEMENT

DATED

DECEMBER

23,

2022

TO

THE

CURRENTLY

EFFECTIVE

PROSPECTUSES

OF

EACH

FUND

LISTED

BELOW

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

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

TEMPLETON

DEVELOPING

MARKETS

VIP

FUND

TEMPLETON

FOREIGN

VIP

FUND

TEMPLETON

GLOBAL

BOND

VIP

FUND

TEMPLETON

GROWTH

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

I.

For

Franklin

Allocation

VIP

Fund,

Franklin

Global

Real

Estate

VIP

Fund,

Franklin

Income

VIP

Fund,

Franklin

Strategic

Income

VIP

Fund

and

Franklin

VolSmart

Allocation

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-

focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-

term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

II.

For

Franklin

Dynatech

VIP

Fund,

Franklin

Growth

and

Income

VIP

Fund,

Franklin

Large

Cap

Growth

VIP

Fund,

Franklin

Rising

Dividends

VIP

Fund,

Franklin

Small-Mid

Cap

Growth

VIP

Fund,

Templeton

Developing

Markets

VIP

Fund,

Templeton

Global

Bond

VIP

Fund,

Templeton

Foreign

VIP

Fund

and

Templeton

Growth

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

FI-9

Annual

Report

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

In

certain

circumstances,

there

may

be

times

when

not

every

investment

is

assessed

for

ESG

factors

and,

when

they

are,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

III.

For

Franklin

U.S.

Government

Securities

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

Social

and

Governance

Considerations

Social

and/or

governance

considerations

are

not

the

only

factors

considered

by

the

investment

manager

and

may

not

be

a

determinative

factor

in

the

investment

manager’s

selection

of

securities

for

the

Fund.

In

addition,

the

investment

manager

may

not

be

able

to

give

such

considerations

meaningful

weight

if

the

availability

of

appropriate

securities

for

the

Fund’s

portfolio

is

limited.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

certain

investments

may

differ

from

that

of

investors,

third

party

service

providers,

such

as

ratings

providers,

or

other

funds.

While

the

investment

manager

views

social

and

governance

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Income

VIP

Fund

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FI-10

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$17.47

$15.65

$16.52

$15.26

$16.72

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.62

0.53

0.59

0.75

0.71

Net

realized

and

unrealized

gains

(losses)

...........

(1.55)

2.09

(0.54)

1.68

(1.35)

Total

from

investment

operations

....................

(0.93)

2.62

0.05

2.43

(0.64)

Less

distributions

from:

Net

investment

income

..........................

(0.83)

(0.80)

(0.91)

(0.91)

(0.82)

Net

realized

gains

.............................

(0.32)

—

(0.01)

(0.26)

—

Total

distributions

...............................

(1.15)

(0.80)

(0.92)

(1.17)

(0.82)

Net

asset

value,

end

of

year

.......................

$15.39

$17.47

$15.65

$16.52

$15.26

Total

return

c

...................................

(5.24)%

17.00%

0.97%

16.42%

(4.09)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.45%

0.47%

0.47%

0.46%

0.47%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.45%

e

0.47%

e

0.46%

0.45%

0.45%

Net

investment

income

...........................

3.82%

3.20%

3.96%

4.38%

4.33%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$220,272

$243,732

$306,641

$309,330

$612,657

Portfolio

turnover

rate

............................

64.51%

39.27%

45.93%

25.16%

43.22%

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

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.

Annual

Report

FI-11

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$16.76

$15.04

$15.91

$14.74

$16.17

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.55

0.47

0.53

0.64

0.65

Net

realized

and

unrealized

gains

(losses)

...........

(1.48)

2.02

(0.53)

1.66

(1.30)

Total

from

investment

operations

....................

(0.93)

2.49

—

2.30

(0.65)

Less

distributions

from:

Net

investment

income

..........................

(0.78)

(0.77)

(0.86)

(0.87)

(0.78)

Net

realized

gains

.............................

(0.32)

—

(0.01)

(0.26)

—

Total

distributions

...............................

(1.10)

(0.77)

(0.87)

(1.13)

(0.78)

Net

asset

value,

end

of

year

.......................

$14.73

$16.76

$15.04

$15.91

$14.74

Total

return

c

...................................

(5.47)%

16.75%

0.69%

16.06%

(4.30)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.70%

0.72%

0.72%

0.71%

0.72%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.70%

e

0.72%

e

0.71%

0.70%

0.70%

Net

investment

income

...........................

3.56%

2.95%

3.73%

4.13%

4.08%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,545,382

$3,026,228

$3,852,709

$4,318,156

$4,086,652

Portfolio

turnover

rate

............................

64.51%

39.27%

45.93%

25.16%

43.22%

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

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)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FI-12

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$17.23

$15.45

$16.32

$15.08

$16.53

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.55

0.46

0.53

0.64

0.64

Net

realized

and

unrealized

gains

(losses)

...........

(1.53)

2.07

(0.54)

1.71

(1.33)

Total

from

investment

operations

....................

(0.98)

2.53

(0.01)

2.35

(0.69)

Less

distributions

from:

Net

investment

income

..........................

(0.77)

(0.75)

(0.85)

(0.85)

(0.76)

Net

realized

gains

.............................

(0.32)

—

(0.01)

(0.26)

—

Total

distributions

...............................

(1.09)

(0.75)

(0.86)

(1.11)

(0.76)

Net

asset

value,

end

of

year

.......................

$15.16

$17.23

$15.45

$16.32

$15.08

Total

return

c

...................................

(5.59)%

16.59%

0.58%

16.05%

(4.42)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.80%

0.82%

0.82%

0.81%

0.82%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.80%

e

0.82%

e

0.81%

0.80%

0.80%

Net

investment

income

...........................

3.49%

2.82%

3.62%

4.03%

3.98%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$325,205

$333,522

$302,474

$323,582

$294,700

Portfolio

turnover

rate

............................

64.51

%

39.27%

45.93%

25.16%

43.22%

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments,

December

31,

2022

Franklin

Income

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FI-13

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

27.9%

Aerospace

&

Defense

2.1%

Lockheed

Martin

Corp.

.................................

United

States

90,000

$

43,784,100

Raytheon

Technologies

Corp.

............................

United

States

225,000

22,707,000

66,491,100

Air

Freight

&

Logistics

0.9%

United

Parcel

Service,

Inc.,

B

............................

United

States

157,700

27,414,568

Banks

4.3%

Bank

of

America

Corp.

.................................

United

States

1,100,000

36,432,000

Citigroup,

Inc.

........................................

United

States

250,000

11,307,500

JPMorgan

Chase

&

Co.

.................................

United

States

360,000

48,276,000

Truist

Financial

Corp.

..................................

United

States

495,000

21,299,850

US

Bancorp

.........................................

United

States

325,000

14,173,250

131,488,600

Biotechnology

0.6%

AbbVie,

Inc.

.........................................

United

States

115,000

18,585,150

Capital

Markets

0.8%

Morgan

Stanley

.......................................

United

States

310,000

26,356,200

Chemicals

0.4%

BASF

SE

...........................................

Germany

225,000

11,078,176

Diversified

Telecommunication

Services

0.9%

BCE,

Inc.

...........................................

Canada

275,000

12,082,533

Verizon

Communications,

Inc.

............................

United

States

400,000

15,760,000

27,842,533

Electric

Utilities

2.6%

American

Electric

Power

Co.,

Inc.

.........................

United

States

200,000

18,990,000

Duke

Energy

Corp.

....................................

United

States

150,000

15,448,500

Edison

International

...................................

United

States

250,000

15,905,000

Southern

Co.

(The)

....................................

United

States

400,000

28,564,000

78,907,500

Health

Care

Equipment

&

Supplies

0.4%

Medtronic

plc

........................................

United

States

160,000

12,435,200

Household

Products

0.6%

Procter

&

Gamble

Co.

(The)

.............................

United

States

120,000

18,187,200

Insurance

0.3%

MetLife,

Inc.

.........................................

United

States

125,000

9,046,250

Media

0.6%

Comcast

Corp.,

A

.....................................

United

States

512,769

17,931,532

Metals

&

Mining

1.4%

Barrick

Gold

Corp.

....................................

Canada

1,022,976

17,574,727

Rio

Tinto

plc,

ADR

.....................................

Australia

365,529

26,025,665

43,600,392

Multiline

Retail

0.2%

Target

Corp.

.........................................

United

States

50,000

7,452,000

Multi-Utilities

1.6%

Dominion

Energy,

Inc.

..................................

United

States

400,000

24,528,000

DTE

Energy

Co.

......................................

United

States

100,000

11,753,000

Sempra

Energy

.......................................

United

States

90,000

13,908,600

50,189,600

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Income

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FI-14

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Oil,

Gas

&

Consumable

Fuels

4.2%

BP

plc,

ADR

.........................................

United

Kingdom

300,000

$

10,479,000

Chevron

Corp.

.......................................

United

States

250,000

44,872,500

Exxon

Mobil

Corp.

.....................................

United

States

400,000

44,120,000

Shell

plc,

ADR

........................................

Netherlands

200,000

11,390,000

TotalEnergies

SE,

ADR

.................................

France

300,000

18,624,000

129,485,500

Pharmaceuticals

1.8%

AstraZeneca

plc,

ADR

..................................

United

Kingdom

300,000

20,340,000

a

Bausch

Health

Cos.,

Inc.

................................

United

States

750,000

4,710,000

Johnson

&

Johnson

...................................

United

States

100,000

17,665,000

Pfizer,

Inc.

...........................................

United

States

275,000

14,091,000

56,806,000

Road

&

Rail

0.1%

Union

Pacific

Corp.

....................................

United

States

20,000

4,141,400

Semiconductors

&

Semiconductor

Equipment

3.1%

Broadcom,

Inc.

.......................................

United

States

53,000

29,633,890

QUALCOMM,

Inc.

.....................................

United

States

45,000

4,947,300

Texas

Instruments,

Inc.

.................................

United

States

363,966

60,134,463

94,715,653

Specialty

Retail

0.3%

Home

Depot,

Inc.

(The)

.................................

United

States

32,000

10,107,520

Tobacco

0.7%

Philip

Morris

International,

Inc.

...........................

United

States

200,000

20,242,000

Total

Common

Stocks

(Cost

$635,198,396)

.....................................

862,504,074

b

Equity-Linked

Securities

13.4%

Automobiles

0.4%

c

Citigroup

Global

Markets

Holdings,

Inc.

into

Ford

Motor

Co.,

144A,

12.5%,

1/12/23

.....................................

United

States

877,000

10,817,286

Banks

1.5%

c

Barclays

Bank

plc

into

JPMorgan

Chase

&

Co.,

144A,

8%,

9/08/23

United

States

187,500

24,109,598

c

J.P.

Morgan

Structured

Products

BV

into

Bank

of

America

Corp.,

144A,

9.5%,

5/12/23

.................................

United

States

250,000

8,588,083

c

Royal

Bank

of

Canada

into

Bank

of

America

Corp.,

144A,

8.5%,

8/14/23

...........................................

United

States

450,000

15,102,264

47,799,945

Biotechnology

0.6%

c

BNP

Paribas

Issuance

BV

into

AbbVie,

Inc.,

144A,

8%,

2/23/23

...

United

States

125,000

19,326,600

Capital

Markets

0.6%

c

BNP

Paribas

Issuance

BV

into

Morgan

Stanley,

144A,

8%,

5/22/23

United

States

125,000

10,754,614

c

J.P.

Morgan

Structured

Products

BV

into

Goldman

Sachs

Group,

Inc.

(The),

144A,

8.5%,

3/09/23

............................

United

States

26,000

9,041,270

19,795,884

Chemicals

0.4%

c

Credit

Suisse

AG

into

Air

Products

and

Chemicals,

Inc.,

144A,

8.5%,

5/15/23

...........................................

United

States

49,560

13,145,521

Communications

Equipment

0.5%

c

Barclays

Bank

plc

into

Cisco

Systems,

Inc.,

144A,

7.5%,

3/10/23

..

United

States

350,000

16,868,571

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FI-15

a

a

Country

Shares

a

Value

a

a

a

a

a

a

b

Equity-Linked

Securities

(continued)

Containers

&

Packaging

0.5%

c

Mizuho

Markets

Cayman

LP

into

International

Paper

Co.,

144A,

10.5%,

12/15/23

.....................................

United

States

400,000

$

14,139,903

Electric

Utilities

0.3%

c

National

Bank

of

Canada

into

NextEra

Energy,

Inc.,

144A,

8.5%,

12/05/23

..........................................

United

States

102,000

8,067,430

Entertainment

0.4%

c

Royal

Bank

of

Canada

into

Walt

Disney

Co.

(The),

144A,

10%,

5/26/23

...........................................

United

States

139,700

12,758,448

Industrial

Conglomerates

0.3%

c

Goldman

Sachs

International

Bank

into

Honeywell

International,

Inc.,

144A,

8.5%,

4/04/23

.................................

United

States

45,400

9,300,302

Insurance

0.9%

c

Royal

Bank

of

Canada

into

MetLife,

Inc.,

144A,

9%,

9/22/23

.....

United

States

420,000

29,022,526

Interactive

Media

&

Services

0.3%

c

Citigroup

Global

Markets

Holdings,

Inc.

into

Alphabet,

Inc.,

144A,

9%,

6/22/23

........................................

United

States

4,800

8,820,435

Internet

&

Direct

Marketing

Retail

0.7%

c

Merrill

Lynch

International

&

Co.

CV

into

Amazon.com,

Inc.,

144A,

8.5%,

1/11/23

.......................................

United

States

11,700

20,498,811

IT

Services

0.2%

c

UBS

AG

into

Fidelity

National

Information

Services,

Inc.,

144A,

10%,

10/19/23

..........................................

United

States

100,000

7,236,708

Machinery

0.5%

c

Goldman

Sachs

International

Bank

into

Cummins,

Inc.,

144A,

8%,

1/10/23

...........................................

United

States

60,000

14,738,475

Media

0.8%

c

BNP

Paribas

Issuance

BV

into

Comcast

Corp.,

144A,

8.5%,

8/10/23

United

States

700,000

25,504,092

Metals

&

Mining

0.2%

c

Goldman

Sachs

International

Bank

into

Newmont

Corp.,

144A,

10%,

7/05/23

...........................................

United

States

100,000

5,054,873

Oil,

Gas

&

Consumable

Fuels

0.3%

c

Merrill

Lynch

International

&

Co.

CV

into

Chevron

Corp.,

144A,

10%,

12/04/23

..........................................

United

States

47,600

8,191,955

Pharmaceuticals

1.0%

c

Mizuho

Markets

Cayman

LP

into

Bristol-Myers

Squibb

Co.,

144A,

8.5%,

12/04/23

.....................................

United

States

240,000

17,990,788

c

Societe

Generale

SA

into

Pfizer,

Inc.,

144A,

8.5%,

6/09/23

......

United

States

260,000

13,476,583

31,467,371

Road

&

Rail

0.3%

c

Merrill

Lynch

International

&

Co.

CV

into

Union

Pacific

Corp.,

144A,

Reg

S,

9%,

11/01/23

.................................

United

States

50,750

10,624,217

Semiconductors

&

Semiconductor

Equipment

2.7%

c

Goldman

Sachs

International

Bank

into

Intel

Corp.,

144A,

10%,

8/09/23

...........................................

United

States

650,000

18,428,522

c

Merrill

Lynch

International

&

Co.

CV

into

Broadcom,

Inc.,

144A,

10%,

12/05/23

..........................................

United

States

35,000

18,238,859

c

Mizuho

Markets

Cayman

LP

into

Microchip

Technology,

Inc.,

144A,

10%,

6/26/23

.......................................

United

States

100,000

7,027,965

c

Mizuho

Markets

Cayman

LP

into

Microchip

Technology,

Inc.,

144A,

10%,

11/03/23

......................................

United

States

144,400

9,745,123

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Income

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FI-16

a

a

Country

Shares

a

Value

a

a

a

a

a

a

b

Equity-Linked

Securities

(continued)

Semiconductors

&

Semiconductor

Equipment

(continued)

c

Royal

Bank

of

Canada

into

Analog

Devices,

Inc.,

144A,

10%,

5/19/23

United

States

178,000

$

28,875,437

82,315,906

Total

Equity-Linked

Securities

(Cost

$453,830,044)

..............................

415,495,259

Convertible

Preferred

Stocks

1.2%

Electric

Utilities

1.1%

NextEra

Energy,

Inc.,

5.279%

............................

United

States

400,000

20,280,000

NextEra

Energy,

Inc.,

6.219%

............................

United

States

230,200

11,622,798

31,902,798

Thrifts

&

Mortgage

Finance

0.1%

FNMA,

5.375%

.......................................

United

States

475

3,443,750

a

Total

Convertible

Preferred

Stocks

(Cost

$65,884,960)

...........................

35,346,548

Principal

Amount

*

Convertible

Bonds

0.1%

Media

0.1%

DISH

Network

Corp.

,

Senior

Note

,

2.375

%

,

3/15/24

............

United

States

4,555,000

4,121,136

Total

Convertible

Bonds

(Cost

$4,414,954)

.....................................

4,121,136

Corporate

Bonds

46.1%

Aerospace

&

Defense

1.9%

Boeing

Co.

(The)

,

Senior

Note,

5.04%,

5/01/27

...........................

United

States

11,500,000

11,391,478

Senior

Note,

5.15%,

5/01/30

...........................

United

States

25,000,000

24,452,292

Raytheon

Technologies

Corp.

,

Senior

Note

,

3.95

%

,

8/16/25

......

United

States

7,500,000

7,334,559

TransDigm,

Inc.

,

Senior

Note,

6.375%,

6/15/26

..........................

United

States

10,000,000

9,744,147

c

Senior

Secured

Note,

144A,

6.25%,

3/15/26

...............

United

States

6,000,000

5,930,340

58,852,816

Airlines

0.7%

c

American

Airlines

Inc/AAdvantage

Loyalty

IP

Ltd.

,

Senior

Secured

Note

,

144A,

5.5

%

,

4/20/26

.............................

United

States

15,000,000

14,451,023

c

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.

,

Senior

Secured

Note

,

144A,

4.75

%

,

10/20/28

.....................................

United

States

8,775,000

8,261,746

22,712,769

Auto

Components

0.7%

c

Dornoch

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

10/15/29

..........................................

United

States

11,945,000

8,395,019

Goodyear

Tire

&

Rubber

Co.

(The)

,

Senior

Note

,

5

%

,

7/15/29

....

United

States

15,000,000

12,531,744

20,926,763

Automobiles

0.7%

Ford

Motor

Co.

,

Senior

Bond,

3.25%,

2/12/32

...........................

United

States

3,000,000

2,255,165

Senior

Bond,

6.1%,

8/19/32

............................

United

States

3,000,000

2,775,848

d

Senior

Note,

4.346%,

12/08/26

.........................

United

States

7,000,000

6,653,781

General

Motors

Co.

,

Senior

Bond,

5.6%,

10/15/32

...........................

United

States

5,000,000

4,659,221

Senior

Bond,

5.15%,

4/01/38

...........................

United

States

7,500,000

6,497,255

22,841,270

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FI-17

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Banks

3.3%

Bank

of

America

Corp.

,

e

AA,

Junior

Sub.

Bond,

6.1%

to

3/16/25,

FRN

thereafter,

Perpetual

United

States

8,000,000

$

7,725,560

e

X,

Junior

Sub.

Bond,

6.25%

to

9/04/24,

FRN

thereafter,

Perpetual

United

States

6,000,000

5,777,165

Senior

Bond,

3.419%

to

12/19/27,

FRN

thereafter,

12/20/28

...

United

States

5,000,000

4,536,087

Barclays

plc

,

Senior

Bond,

5.746%

to

8/08/32,

FRN

thereafter,

8/09/33

.....

United

Kingdom

15,000,000

14,212,624

Senior

Bond,

7.437%

to

11/01/32,

FRN

thereafter,

11/02/33

....

United

Kingdom

10,000,000

10,508,600

Senior

Note,

5.501%

to

8/08/27,

FRN

thereafter,

8/09/28

......

United

Kingdom

2,300,000

2,231,350

Citigroup,

Inc.

,

Senior

Bond,

6.27%

to

11/16/32,

FRN

thereafter,

11/17/33

.....

United

States

12,000,000

12,417,689

Sub.

Bond,

4.125%,

7/25/28

...........................

United

States

12,500,000

11,657,988

d,e

JPMorgan

Chase

&

Co.

,

R

,

Junior

Sub.

Bond

,

6%

to

7/31/23,

FRN

thereafter

,

Perpetual

.................................

United

States

3,200,000

3,137,920

PNC

Financial

Services

Group,

Inc.

(The)

,

Senior

Bond

,

6.037%

to

10/27/32,

FRN

thereafter

,

10/28/33

.......................

United

States

8,000,000

8,354,575

Truist

Financial

Corp.

,

Sub.

Bond

,

4.916%

to

7/27/32,

FRN

thereafter

,

7/28/33

...................................

United

States

4,000,000

3,763,679

US

Bancorp

,

Senior

Bond

,

5.85%

to

10/20/32,

FRN

thereafter

,

10/21/33

..........................................

United

States

10,000,000

10,413,725

Wells

Fargo

&

Co.

,

Senior

Note

,

3.196%

to

6/16/26,

FRN

thereafter

,

6/17/27

...........................................

United

States

8,000,000

7,430,507

102,167,469

Biotechnology

0.3%

AbbVie,

Inc.

,

Senior

Note

,

3.8

%

,

3/15/25

....................

United

States

10,500,000

10,242,289

Building

Products

0.3%

c

Camelot

Return

Merger

Sub,

Inc.

,

Senior

Secured

Note

,

144A,

8.75

%

,

8/01/28

.....................................

United

States

8,000,000

7,351,400

Carrier

Global

Corp.

,

Senior

Note

,

2.722

%

,

2/15/30

............

United

States

2,500,000

2,110,259

9,461,659

Capital

Markets

0.6%

c

Coinbase

Global,

Inc.

,

Senior

Bond

,

144A,

3.625

%

,

10/01/31

....

United

States

2,171,790

1,048,783

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Note

,

3.272%

to

9/28/24,

FRN

thereafter

,

9/29/25

...............................

United

States

9,000,000

8,678,657

Morgan

Stanley

,

Senior

Bond

,

6.342%

to

10/17/32,

FRN

thereafter

,

10/18/33

..........................................

United

States

8,650,000

9,091,179

18,818,619

Chemicals

1.4%

Celanese

US

Holdings

LLC

,

Senior

Note

,

6.165

%

,

7/15/27

......

United

States

12,000,000

11,855,170

c

Consolidated

Energy

Finance

SA

,

Senior

Note

,

144A,

6.5

%

,

5/15/26

Switzerland

10,000,000

9,363,730

c

International

Flavors

&

Fragrances,

Inc.

,

Senior

Bond

,

144A,

2.3

%

,

11/01/30

..........................................

United

States

10,000,000

7,956,670

c

SCIH

Salt

Holdings,

Inc.

,

Senior

Note,

144A,

6.625%,

5/01/29

.....................

United

States

10,000,000

8,067,795

Senior

Secured

Note,

144A,

4.875%,

5/01/28

..............

United

States

7,900,000

6,793,562

44,036,927

Commercial

Services

&

Supplies

0.4%

c

APX

Group,

Inc.

,

Senior

Note

,

144A,

5.75

%

,

7/15/29

...........

United

States

15,000,000

12,442,302

Communications

Equipment

1.1%

c

CommScope

Technologies

LLC

,

Senior

Note,

144A,

6%,

6/15/25

........................

United

States

14,602,868

13,318,692

Senior

Note,

144A,

5%,

3/15/27

........................

United

States

2,500,000

1,701,954

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Income

VIP

Fund

(continued)

Annual

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)

Communications

Equipment

(continued)

c

CommScope,

Inc.

,

Senior

Note,

144A,

8.25%,

3/01/27

......................

United

States

10,000,000

$

7,765,800

Senior

Note,

144A,

7.125%,

7/01/28

.....................

United

States

7,141,000

5,116,482

Senior

Secured

Note,

144A,

6%,

3/01/26

..................

United

States

5,000,000

4,624,750

32,527,678

Consumer

Finance

2.3%

Capital

One

Financial

Corp.

,

Senior

Note,

4.927%

to

5/09/27,

FRN

thereafter,

5/10/28

......

United

States

10,398,356

10,082,925

Senior

Note,

3.273%

to

2/28/29,

FRN

thereafter,

3/01/30

......

United

States

7,000,000

5,998,325

Senior

Note,

5.247%

to

7/25/29,

FRN

thereafter,

7/26/30

......

United

States

3,000,000

2,863,542

Sub.

Note,

4.2%,

10/29/25

............................

United

States

8,000,000

7,739,131

Ford

Motor

Credit

Co.

LLC

,

Senior

Note,

5.125%,

6/16/25

..........................

United

States

20,000,000

19,270,832

Senior

Note,

4.95%,

5/28/27

...........................

United

States

15,000,000

14,021,550

General

Motors

Financial

Co.,

Inc.

,

Senior

Note,

2.4%,

4/10/28

............................

United

States

6,000,000

5,056,558

Senior

Note,

4.3%,

4/06/29

............................

United

States

5,000,000

4,488,517

69,521,380

Containers

&

Packaging

1.4%

c

Ardagh

Packaging

Finance

plc

/

Ardagh

Holdings

USA,

Inc.

,

Senior

Secured

Note

,

144A,

4.125

%

,

8/15/26

....................

United

States

5,000,000

4,341,315

c

Mauser

Packaging

Solutions

Holding

Co.

,

Senior

Note,

144A,

7.25%,

4/15/25

......................

United

States

20,432,000

18,935,902

Senior

Secured

Note,

144A,

5.5%,

4/15/24

................

United

States

16,500,000

16,077,718

c

Pactiv

Evergreen

Group

Issuer,

Inc./Pactiv

Evergreen

Group

Issuer

LLC

,

Senior

Secured

Note

,

144A,

4

%

,

10/15/27

.............

United

States

5,000,000

4,443,252

43,798,187

Diversified

Financial

Services

0.8%

c

MPH

Acquisition

Holdings

LLC

,

d

Senior

Note,

144A,

5.75%,

11/01/28

.....................

United

States

20,000,000

13,344,244

Senior

Secured

Note,

144A,

5.5%,

9/01/28

................

United

States

8,890,000

6,953,225

c

Woodside

Finance

Ltd.

,

Senior

Bond

,

144A,

4.5

%

,

3/04/29

......

Australia

4,685,000

4,401,514

24,698,983

Diversified

Telecommunication

Services

0.4%

c

Altice

France

SA

,

Senior

Secured

Note

,

144A,

5.5

%

,

10/15/29

...

France

11,500,000

8,789,622

c

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond

,

144A,

5

%

,

2/01/28

...................................

United

States

5,153,000

4,690,235

13,479,857

Electric

Utilities

0.7%

Pacific

Gas

and

Electric

Co.

,

Senior

Bond

,

4.55

%

,

7/01/30

......

United

States

5,000,000

4,543,699

Southern

Co.

(The)

,

Senior

Bond

,

5.7

%

,

10/15/32

.............

United

States

10,000,000

10,260,330

c

Vistra

Operations

Co.

LLC

,

Senior

Note

,

144A,

4.375

%

,

5/01/29

..

United

States

8,255,000

7,129,281

21,933,310

Energy

Equipment

&

Services

0.5%

c

Weatherford

International

Ltd.

,

Senior

Note,

144A,

11%,

12/01/24

.......................

United

States

1,255,000

1,284,836

Senior

Note,

144A,

8.625%,

4/30/30

.....................

United

States

14,500,000

13,950,352

15,235,188

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FI-19

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Entertainment

1.3%

Netflix,

Inc.

,

Senior

Bond

,

4.875

%

,

4/15/28

..................

United

States

22,000,000

$

21,292,400

c

ROBLOX

Corp.

,

Senior

Note

,

144A,

3.875

%

,

5/01/30

..........

United

States

9,100,000

7,184,450

c

Warnermedia

Holdings,

Inc.

,

Senior

Bond,

144A,

4.279%,

3/15/32

.....................

United

States

6,500,000

5,370,739

Senior

Note,

144A,

3.755%,

3/15/27

.....................

United

States

6,500,000

5,862,695

39,710,284

Equity

Real

Estate

Investment

Trusts

(REITs)

1.0%

American

Tower

Corp.

,

Senior

Bond

,

2.9

%

,

1/15/30

............

United

States

8,000,000

6,792,410

Crown

Castle,

Inc.

,

Senior

Bond

,

3.3

%

,

7/01/30

...............

United

States

5,000,000

4,385,776

MPT

Operating

Partnership

LP

/

MPT

Finance

Corp.

,

Senior

Bond,

5%,

10/15/27

............................

United

States

8,750,000

7,374,150

Senior

Bond,

3.5%,

3/15/31

............................

United

States

5,000,000

3,437,868

VICI

Properties

LP

,

Senior

Bond

,

5.125

%

,

5/15/32

.............

United

States

10,000,000

9,278,750

31,268,954

Food

Products

0.3%

c

JBS

USA

LUX

SA

/

JBS

USA

Food

Co.

/

JBS

USA

Finance,

Inc.

,

Senior

Bond

,

144A,

5.75

%

,

4/01/33

......................

United

States

8,000,000

7,650,240

Health

Care

Equipment

&

Supplies

1.2%

c

GE

HealthCare

Technologies,

Inc.

,

Senior

Bond

,

144A,

5.905

%

,

11/22/32

..........................................

United

States

7,500,000

7,795,310

c

Medline

Borrower

LP

,

Senior

Note,

144A,

5.25%,

10/01/29

.....................

United

States

18,000,000

14,328,990

Senior

Secured

Note,

144A,

3.875%,

4/01/29

..............

United

States

16,800,000

13,570,116

35,694,416

Health

Care

Providers

&

Services

5.7%

Centene

Corp.

,

Senior

Note

,

4.625

%

,

12/15/29

...............

United

States

10,000,000

9,160,908

c

CHS/Community

Health

Systems,

Inc.

,

Secured

Note,

144A,

6.875%,

4/15/29

....................

United

States

52,000,000

26,823,315

Senior

Note,

144A,

6.875%,

4/01/28

.....................

United

States

20,000,000

9,694,100

Senior

Secured

Note,

144A,

8%,

3/15/26

..................

United

States

22,500,000

20,531,250

Senior

Secured

Note,

144A,

8%,

12/15/27

.................

United

States

10,000,000

9,066,929

Senior

Secured

Note,

144A,

5.25%,

5/15/30

...............

United

States

10,000,000

7,558,222

CVS

Health

Corp.

,

Senior

Bond

,

4.3

%

,

3/25/28

...............

United

States

8,000,000

7,752,854

c

DaVita,

Inc.

,

Senior

Bond,

144A,

3.75%,

2/15/31

......................

United

States

2,500,000

1,871,387

Senior

Note,

144A,

4.625%,

6/01/30

.....................

United

States

20,000,000

16,130,834

HCA,

Inc.

,

Senior

Note

,

5

%

,

3/15/24

.......................

United

States

10,400,000

10,345,202

c

Tenet

Healthcare

Corp.

,

Secured

Note,

144A,

6.25%,

2/01/27

.....................

United

States

29,000,000

27,913,660

Senior

Note,

144A,

6.125%,

10/01/28

....................

United

States

9,000,000

8,076,870

Senior

Secured

Note,

144A,

6.125%,

6/15/30

..............

United

States

12,500,000

11,931,938

UnitedHealth

Group,

Inc.

,

Senior

Bond

,

5.35

%

,

2/15/33

.........

United

States

10,000,000

10,349,845

177,207,314

Hotels,

Restaurants

&

Leisure

2.5%

c

Boyd

Gaming

Corp.

,

Senior

Bond

,

144A,

4.75

%

,

6/15/31

........

United

States

3,130,000

2,726,793

c

Caesars

Entertainment,

Inc.

,

Senior

Secured

Note

,

144A,

6.25

%

,

7/01/25

...........................................

United

States

20,000,000

19,474,110

Expedia

Group,

Inc.

,

Senior

Note

,

5

%

,

2/15/26

...............

United

States

7,000,000

6,915,793

c

Fertitta

Entertainment

LLC

/

Fertitta

Entertainment

Finance

Co.,

Inc.

,

Senior

Note,

144A,

6.75%,

1/15/30

......................

United

States

4,100,000

3,314,748

Senior

Secured

Note,

144A,

4.625%,

1/15/29

..............

United

States

7,000,000

5,932,745

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Income

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FI-20

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Hotels,

Restaurants

&

Leisure

(continued)

McDonald's

Corp.

,

Senior

Bond

,

4.6

%

,

9/09/32

...............

United

States

8,000,000

$

7,847,679

c

Penn

Entertainment,

Inc.

,

Senior

Note

,

144A,

4.125

%

,

7/01/29

...

United

States

8,000,000

6,330,429

c

Wynn

Las

Vegas

LLC

/

Wynn

Las

Vegas

Capital

Corp.

,

Senior

Bond,

144A,

5.5%,

3/01/25

.......................

United

States

18,518,000

17,618,136

d

Senior

Note,

144A,

5.25%,

5/15/27

......................

United

States

6,000,000

5,424,305

75,584,738

Independent

Power

and

Renewable

Electricity

Producers

0.7%

c

Calpine

Corp.

,

Senior

Note,

144A,

5.125%,

3/15/28

.....................

United

States

5,000,000

4,471,639

Senior

Secured

Note,

144A,

4.5%,

2/15/28

................

United

States

5,000,000

4,470,916

c,e

Vistra

Corp.

,

Junior

Sub.

Bond

,

144A,

7%

to

12/14/26,

FRN

thereafter

,

Perpetual

.................................

United

States

12,500,000

11,392,228

20,334,783

Internet

&

Direct

Marketing

Retail

0.1%

Amazon.com,

Inc.

,

Senior

Bond

,

3.6

%

,

4/13/32

...............

United

States

4,000,000

3,672,318

Media

2.9%

c

Clear

Channel

Outdoor

Holdings,

Inc.

,

Senior

Note,

144A,

7.75%,

4/15/28

......................

United

States

2,800,000

2,047,652

Senior

Note,

144A,

7.5%,

6/01/29

.......................

United

States

10,500,000

7,729,522

Senior

Secured

Note,

144A,

5.125%,

8/15/27

..............

United

States

5,000,000

4,343,250

c

CSC

Holdings

LLC

,

Senior

Bond

,

144A,

5.5

%

,

4/15/27

.........

United

States

15,000,000

12,615,396

c

Directv

Financing

LLC

/

Directv

Financing

Co-Obligor,

Inc.

,

Senior

Secured

Note

,

144A,

5.875

%

,

8/15/27

....................

United

States

9,500,000

8,517,320

DISH

DBS

Corp.

,

Senior

Note,

5%,

3/15/23

.............................

United

States

11,000,000

10,971,785

Senior

Note,

5.875%,

11/15/24

.........................

United

States

20,859,000

19,425,859

c

Senior

Secured

Note,

144A,

5.25%,

12/01/26

..............

United

States

6,500,000

5,487,365

c

Stagwell

Global

LLC

,

Senior

Note

,

144A,

5.625

%

,

8/15/29

.......

United

States

5,000,000

4,132,275

c

Univision

Communications,

Inc.

,

Senior

Secured

Note,

144A,

5.125%,

2/15/25

..............

United

States

7,140,000

6,814,560

Senior

Secured

Note,

144A,

6.625%,

6/01/27

..............

United

States

8,500,000

8,218,948

90,303,932

Metals

&

Mining

1.6%

c

Alcoa

Nederland

Holding

BV

,

Senior

Note

,

144A,

4.125

%

,

3/31/29

.

United

States

8,500,000

7,553,131

ArcelorMittal

SA

,

Senior

Bond

,

6.8

%

,

11/29/32

................

Luxembourg

12,000,000

11,967,648

c

Cleveland-Cliffs,

Inc.

,

Senior

Secured

Note

,

144A,

6.75

%

,

3/15/26

.

United

States

5,000,000

5,021,100

c

FMG

Resources

August

2006

Pty.

Ltd.

,

Senior

Bond,

144A,

4.375%,

4/01/31

.....................

Australia

6,000,000

5,001,651

Senior

Note,

144A,

5.875%,

4/15/30

.....................

Australia

5,000,000

4,664,862

Freeport-McMoRan,

Inc.

,

Senior

Bond

,

4.625

%

,

8/01/30

........

United

States

8,000,000

7,464,596

c

Glencore

Funding

LLC

,

Senior

Bond

,

144A,

2.5

%

,

9/01/30

......

Australia

10,000,000

8,139,781

49,812,769

Multiline

Retail

0.1%

Target

Corp.

,

Senior

Bond

,

4.5

%

,

9/15/32

...................

United

States

4,000,000

3,894,752

Oil,

Gas

&

Consumable

Fuels

1.4%

c

Calumet

Specialty

Products

Partners

LP

/

Calumet

Finance

Corp.

,

Senior

Note,

144A,

11%,

4/15/25

........................

United

States

15,000,000

15,657,574

Senior

Note,

144A,

8.125%,

1/15/27

.....................

United

States

8,820,000

8,257,725

Senior

Secured

Note,

144A,

9.25%,

7/15/24

...............

United

States

5,185,000

5,272,601

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FI-21

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Oil,

Gas

&

Consumable

Fuels

(continued)

a,c

Chesapeake

Energy

Corp.

,

Senior

Note

,

144A,

5.875

%

,

2/01/29

..

United

States

9,500,000

$

9,014,836

Occidental

Petroleum

Corp.

,

Senior

Note

,

6.625

%

,

9/01/30

......

United

States

6,000,000

6,213,810

44,416,546

Personal

Products

0.2%

GSK

Consumer

Healthcare

Capital

US

LLC

,

Senior

Note

,

3.625

%

,

3/24/32

...........................................

United

States

8,500,000

7,485,725

Pharmaceuticals

2.8%

c

1375209

BC

Ltd.

,

Senior

Secured

Note

,

144A,

9

%

,

1/30/28

......

Canada

6,374,000

6,238,553

c

Bausch

Health

Cos.,

Inc.

,

Senior

Secured

Note,

144A,

5.5%,

11/01/25

...............

United

States

18,750,000

15,967,062

Senior

Secured

Note,

144A,

6.125%,

2/01/27

..............

United

States

23,409,673

16,173,275

Senior

Secured

Note,

144A,

5.75%,

8/15/27

...............

United

States

10,000,000

6,822,200

Senior

Secured

Note,

144A,

11%,

9/30/28

.................

United

States

13,865,000

10,881,871

c

Bayer

US

Finance

II

LLC

,

Senior

Note

,

144A,

4.25

%

,

12/15/25

...

Germany

11,000,000

10,670,328

c,f

Endo

Dac

/

Endo

Finance

LLC

/

Endo

Finco,

Inc.

,

Senior

Secured

Note

,

144A,

5.875

%

,

10/15/24

..........................

United

States

4,500,000

3,577,500

c,f

Par

Pharmaceutical,

Inc.

,

Senior

Secured

Note

,

144A,

7.5

%

,

4/01/27

United

States

8,429,000

6,423,738

Utah

Acquisition

Sub,

Inc.

,

Senior

Note

,

3.95

%

,

6/15/26

.........

United

States

10,000,000

9,360,965

86,115,492

Road

&

Rail

0.4%

c

Ashtead

Capital,

Inc.

,

Senior

Note

,

144A,

4.25

%

,

11/01/29

......

United

Kingdom

4,500,000

4,043,224

Union

Pacific

Corp.

,

Senior

Bond

,

4.5

%

,

1/20/33

..............

United

States

8,000,000

7,848,212

11,891,436

Semiconductors

&

Semiconductor

Equipment

0.8%

c

Broadcom,

Inc.

,

Senior

Bond,

144A,

2.45%,

2/15/31

......................

United

States

5,000,000

3,949,771

Senior

Bond,

144A,

4.15%,

4/15/32

......................

United

States

10,000,000

8,805,964

Senior

Note,

144A,

4%,

4/15/29

........................

United

States

5,000,000

4,552,505

Micron

Technology,

Inc.

,

Senior

Note

,

6.75

%

,

11/01/29

.........

United

States

8,000,000

8,144,269

25,452,509

Software

1.4%

Oracle

Corp.

,

Senior

Bond,

3.25%,

11/15/27

..........................

United

States

5,000,000

4,600,787

Senior

Bond,

2.875%,

3/25/31

..........................

United

States

15,000,000

12,473,763

Senior

Bond,

6.25%,

11/09/32

..........................

United

States

6,750,000

7,086,016

c

Rocket

Software,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

2/15/29

........

United

States

11,000,000

8,685,888

Workday,

Inc.

,

Senior

Bond

,

3.8

%

,

4/01/32

..................

United

States

10,000,000

8,855,319

41,701,773

Specialty

Retail

0.5%

d

Lowe's

Cos.,

Inc.

,

Senior

Bond

,

5

%

,

4/15/33

.................

United

States

13,000,000

12,732,820

c

Michaels

Cos.,

Inc.

(The)

,

Senior

Secured

Note

,

144A,

5.25

%

,

5/01/28

...........................................

United

States

4,000,000

3,222,943

15,955,763

Technology

Hardware,

Storage

&

Peripherals

0.7%

Apple,

Inc.

,

Senior

Bond

,

3.35

%

,

8/08/32

....................

United

States

8,000,000

7,286,602

HP,

Inc.

,

Senior

Bond,

5.5%,

1/15/33

............................

United

States

10,000,000

9,424,039

Senior

Note,

4%,

4/15/29

.............................

United

States

5,000,000

4,574,324

21,284,965

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Income

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FI-22

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Tobacco

0.6%

BAT

Capital

Corp.

,

Senior

Note

,

3.557

%

,

8/15/27

.............

United

Kingdom

20,000,000

$

18,303,003

Trading

Companies

&

Distributors

1.1%

United

Rentals

North

America,

Inc.

,

Senior

Bond,

4.875%,

1/15/28

..........................

United

States

11,300,000

10,733,361

c

Senior

Secured

Note,

144A,

6%,

12/15/29

.................

United

States

8,000,000

7,965,400

c

WESCO

Distribution,

Inc.

,

Senior

Note

,

144A,

7.125

%

,

6/15/25

...

United

States

14,000,000

14,205,970

32,904,731

Wireless

Telecommunication

Services

1.3%

Sprint

LLC

,

Senior

Note,

7.875%,

9/15/23

..........................

United

States

12,500,000

12,702,325

Senior

Note,

7.125%,

6/15/24

..........................

United

States

8,200,000

8,378,268

Senior

Note,

7.625%,

3/01/26

..........................

United

States

7,500,000

7,908,795

T-Mobile

USA,

Inc.

,

Senior

Bond,

5.2%,

1/15/33

............................

United

States

7,500,000

7,456,400

Senior

Note,

3.375%,

4/15/29

..........................

United

States

4,500,000

3,972,125

40,417,913

Total

Corporate

Bonds

(Cost

$1,538,293,441)

...................................

1,424,761,822

U.S.

Government

and

Agency

Securities

8.7%

U.S.

Treasury

Bonds

,

3.375%,

8/15/42

.....................................

United

States

15,000,000

13,410,938

3%,

8/15/52

........................................

United

States

40,000,000

32,968,750

U.S.

Treasury

Notes

,

4.375%,

10/31/24

....................................

United

States

10,000,000

9,972,265

4.5%,

11/30/24

......................................

United

States

25,000,000

25,002,930

2.875%,

5/15/32

.....................................

United

States

130,000,000

119,843,750

2.75%,

8/15/32

.....................................

United

States

75,000,000

68,308,594

Total

U.S.

Government

and

Agency

Securities

(Cost

$279,725,426)

................

269,507,227

Asset-Backed

Securities

0.3%

Airlines

0.3%

United

Airlines

Pass-Through

Trust

,

2020-1

,

A

,

5.875

%

,

10/15/27

.

.

United

States

7,903,833

7,803,686

Total

Asset-Backed

Securities

(Cost

$7,903,833)

................................

7,803,686

Mortgage-Backed

Securities

0.0%

†

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

0.0%

†

FNMA,

30

Year,

4%,

8/01/49

.............................

United

States

1,585,956

1,514,138

Total

Mortgage-Backed

Securities

(Cost

$1,680,122)

.............................

1,514,138

Total

Long

Term

Investments

(Cost

$2,986,931,176)

.............................

3,021,053,890

a

Short

Term

Investments

1.9%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

1.5%

g,h

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

....

United

States

46,402,687

46,402,687

Total

Money

Market

Funds

(Cost

$46,402,687)

..................................

46,402,687

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FI-23

Short

Term

Investments

(continued)

a

a

Country

Shares

a

Value

a

a

a

a

a

a

i

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.4%

Money

Market

Funds

0.4%

g,h

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

....

United

States

11,170,000

$

11,170,000

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$11,170,000)

...........................................................

11,170,000

Total

Short

Term

Investments

(Cost

$57,572,687

)

................................

57,572,687

a

Total

Investments

(Cost

$3,044,503,863)

99.6%

..................................

$3,078,626,577

Other

Assets,

less

Liabilities

0.4%

.............................................

12,232,494

Net

Assets

100.0%

...........................................................

$3,090,859,071

*

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

See

Note

1(d)

regarding

equity-linked

securities.

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

December

31,

2022,

the

aggregate

value

of

these

securities

was

$1,185,619,638,

representing

38.4%

of

net

assets.

d

A

portion

or

all

of

the

security

is

on

loan

at

December

31,

2022.

See

Note

1(e).

e

Perpetual

security

with

no

stated

maturity

date.

f

See

Note

7

regarding

credit

risk

and

defaulted

securities.

g

See

Note

3(e)

regarding

investments

in

affiliated

management

investment

companies.

h

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

i

See

Note

1(e)

regarding

securities

on

loan.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Income

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FI-24

At

December

31,

2022,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1(c)

. 

See

Note

10

regarding

other

derivative

information.

See

Abbreviations

on

page

FI-

38

.

Futures

Contracts

Description

Type

Number

of

Contracts

Notional

Amount

*

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Interest

rate

contracts

U.S.

Treasury

10

Year

Notes

....................

Long

550

$

61,763,281

3/22/23

$

(261,448)

Total

Futures

Contracts

......................................................................

$(261,448)

*

As

of

year

end.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

December

31,

2022

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FI-25

Franklin

Income

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$2,986,931,176

Cost

-

Non-controlled

affiliates

(Not

e

3e)

........................................................

57,572,687

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$10,782,344)

.................................

$3,021,053,890

Value

-

Non-controlled

affiliates

(Not

e

3e)

.......................................................

57,572,687

Receivables:

Capital

shares

sold

........................................................................

891,582

Dividends

and

interest

.....................................................................

25,596,880

European

Union

tax

reclaims

(Note

1

f

)

.........................................................

1,715,279

Deposits

with

brokers

for:

Futures

contracts

........................................................................

1,210,000

Total

assets

..........................................................................

3,108,040,318

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

3,526,108

Management

fees

.........................................................................

1,198,050

Distribution

fees

..........................................................................

646,157

Trustees'

fees

and

expenses

.................................................................

615

Variation

margin

on

futures

contracts

...........................................................

77,341

Funds

advanced

by

custodian

.................................................................

318,750

Payable

upon

return

of

securities

loaned

(Note

1

e

)

..................................................

11,170,000

Accrued

expenses

and

other

liabilities

...........................................................

244,226

Total

liabilities

.........................................................................

17,181,247

Net

assets,

at

value

.................................................................

$3,090,859,071

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$2,718,079,775

Total

distributable

earnings

(losses)

.............................................................

372,779,296

Net

assets,

at

value

.................................................................

$3,090,859,071

Franklin

Income

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$220,271,980

Shares

outstanding

........................................................................

14,313,286

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$15.39

Class

2:

Net

assets,

at

value

.......................................................................

$2,545,382,381

Shares

outstanding

........................................................................

172,814,988

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$14.73

Class

4:

Net

assets,

at

value

.......................................................................

$325,204,710

Shares

outstanding

........................................................................

21,445,493

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$15.16

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2022

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FI-26

Franklin

Income

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$571,287)

Unaffiliated

issuers

........................................................................

$48,340,825

Non-controlled

affiliates

(Not

e

3e)

.............................................................

589,881

Interest:

Unaffiliated

issuers

........................................................................

91,713,882

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

70,090

Non-controlled

affiliates

(Not

e

3e)

.............................................................

141,968

Other

income

(Note

1

f

)

.......................................................................

97,279

Total

investment

income

...................................................................

140,953,925

Expenses:

Management

fees

(Note

3

a

)

...................................................................

15,118,754

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

6,878,267

    Class

4

................................................................................

1,146,872

Custodian

fees

(Note

4

)

......................................................................

30,626

Reports

to

shareholders

fees

..................................................................

(416,445)

Professional

fees

...........................................................................

99,954

Trustees'

fees

and

expenses

..................................................................

36,439

Other

....................................................................................

159,885

Total

expenses

.........................................................................

23,054,352

Expense

reductions

(Note

4

)

...............................................................

(703)

Expenses

waived/paid

by

affiliates

(Not

e

3e)

...................................................

(181,099)

Net

expenses

.........................................................................

22,872,550

Net

investment

income

................................................................

118,081,375

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

238,011,679

Foreign

currency

transactions

................................................................

9,152

Futures

contracts

.........................................................................

1,011,300

Net

realized

gain

(loss)

..................................................................

239,032,131

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(551,428,753)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(106,825)

Futures

contracts

.........................................................................

(261,448)

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(551,797,026)

Net

realized

and

unrealized

gain

(loss)

............................................................

(312,764,895)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(194,683,520)

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.

Annual

Report

FI-27

Franklin

Income

VIP

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$118,081,375

$119,675,102

Net

realized

gain

(loss)

.................................................

239,032,131

513,668,217

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(551,797,026)

10,214,847

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(194,683,520)

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

.............................................................

4,063,250

(92,365,384)

Class

2

.............................................................

(129,750,272)

(1,191,742,494)

Class

4

.............................................................

32,673,363

(3,607,701)

Total

capital

share

transactions

............................................

(93,013,659)

(1,287,715,579)

Net

increase

(decrease)

in

net

assets

...................................

(512,622,644)

(858,342,509)

Net

assets:

Beginning

of

year

.......................................................

3,603,481,715

4,461,824,224

End

of

year

...........................................................

$3,090,859,071

$3,603,481,715

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

Franklin

Income

VIP

Fund

FI-28

Annual

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.

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

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

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

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.

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,

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

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FI-29

Annual

Report

Franklin

Income

VIP

Fund

(continued)

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

December

31,

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.

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.

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FI-30

Annual

Report

Franklin

Income

VIP

Fund

(continued)

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

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.

See

Note

10 regarding

other

derivative

information.

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.

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.

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.

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.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Derivative

Financial

Instruments

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FI-31

Annual

Report

Franklin

Income

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

December

31,

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

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.

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

FI-32

Annual

Report

Franklin

Income

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

December

31,

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:

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

948,516

$15,139,114

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

...............................

(1,594,689)

(26,335,152)

(9,030,990)

(148,636,060)

Net

increase

(decrease)

..........................

362,372

$4,063,250

(5,644,870)

$(92,365,384)

Class

2

Shares:

Shares

sold

...................................

15,467,143

$244,219,618

8,261,102

$133,024,654

Shares

issued

in

reinvestment

of

distributions

..........

12,955,179

187,850,088

11,472,643

184,021,190

Shares

redeemed

...............................

(36,169,026)

(561,819,978)

(95,307,859)

(1,508,788,338)

Net

increase

(decrease)

..........................

(7,746,704)

$(129,750,272)

(75,574,114)

$(1,191,742,494)

Class

4

Shares:

Shares

sold

...................................

4,620,551

$74,558,532

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

...............................

(3,991,594)

(63,701,258)

(3,856,387)

(63,559,364)

Net

increase

(decrease)

..........................

2,090,182

$32,673,363

(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

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

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FI-33

Annual

Report

Franklin

Income

VIP

Fund

(continued)

For

the

year

ended

December

31,

2022,

the

gross

effective

investment

management

fee

rate

was 0.458%

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

year

ended

December

31,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Income

VIP

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

$

56,779,626

$

1,353,325,002

$

(1,363,701,941)

$

—

$

—

$

46,402,687

46,402,687

$

589,881

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

$20,527,000

$207,987,000

$(217,344,000)

$—

$—

$11,170,000

11,170,000

$141,968

Total

Affiliated

Securities

...

$77,306,626

$1,561,312,002

$(1,581,045,941)

$—

$—

$57,572,687

$731,849

3.

Transactions

with

Affiliates

(continued)

a.

Management

Fees

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FI-34

Annual

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

year

ended

December

31,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021,

was

as

follows:

At

December

31,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

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

and

equity-linked

securities.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2022,

aggregated

$2,079,553,496

and

2,240,693,452,

respectively.

At

December

31,

2022,

in

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received

$11,170,000

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

At

December

31,

2022,

the

Fund

had

25.2%

of

its

portfolio

invested

in

high

yield

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.

The

Fund

held

defaulted

securities

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

At

December

31,

2022,

the

aggregate

value

of

these

securities

was

$10,001,238,

representing

0.3%

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

securities

have

been

identified

in

the

accompanying

Schedule

of

Investments.

2022

2021

Distributions

paid

from:

Ordinary

income

..........................................................

$224,925,465

$214,185,096

Cost

of

investments

..........................................................................

$3,051,498,234

Unrealized

appreciation

........................................................................

$283,234,880

Unrealized

depreciation

........................................................................

(256,367,985)

Net

unrealized

appreciation

(depreciation)

..........................................................

$26,866,895

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$149,028,752

Undistributed

long

term

capital

gains

..............................................................

195,184,438

Total

distributable

earnings

.....................................................................

$344,213,190

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FI-35

Annual

Report

Franklin

Income

VIP

Fund

(continued)

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.

Other

Derivative

Information

At

December

31,

2022,

investments

in

derivative

contracts

are

reflected

in

the

Statement of

Assets

and

Liabilities

as

follows:

For

the

year

ended

December

31,

2022,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

year

ended

December

31,

2022,

the

average

month

end

notional

amount

of

futures

contracts

represented

$14,231,911

respectively.

See

Note

1(c) regarding

derivative

financial

instruments. 

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

Income

VIP

Fund

Interest

rate

contracts

.......

Variation

margin

on

futures

contracts

$

—

Variation

margin

on

futures

contracts

$

261,448

a

Total

....................

$—

$261,448

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

year

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

Year

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Year

Franklin

Income

VIP

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Interest

rate

contracts

..........

Futures

contracts

$1,011,300

Futures

contracts

$(261,448)

Total

.......................

$1,011,300

$(261,448)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FI-36

Annual

Report

Franklin

Income

VIP

Fund

(continued)

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

matured

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.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

 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

year

ended

December

31,

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.

A

summary

of

inputs

used

as

of

December

31,

2022,

in

valuing

the

Fund's assets

and

liabilities

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

...................

$

66,491,100

$

—

$

—

$

66,491,100

Air

Freight

&

Logistics

...................

27,414,568

—

—

27,414,568

Banks

...............................

131,488,600

—

—

131,488,600

Biotechnology

.........................

18,585,150

—

—

18,585,150

Capital

Markets

........................

26,356,200

—

—

26,356,200

Chemicals

...........................

—

11,078,176

—

11,078,176

Diversified

Telecommunication

Services

.....

27,842,533

—

—

27,842,533

Electric

Utilities

........................

78,907,500

—

—

78,907,500

Health

Care

Equipment

&

Supplies

.........

12,435,200

—

—

12,435,200

Household

Products

....................

18,187,200

—

—

18,187,200

Insurance

............................

9,046,250

—

—

9,046,250

Media

...............................

17,931,532

—

—

17,931,532

Metals

&

Mining

.......................

43,600,392

—

—

43,600,392

Multiline

Retail

........................

7,452,000

—

—

7,452,000

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FI-37

Annual

Report

Franklin

Income

VIP

Fund

(continued)

13.

New

Accounting

Pronouncements

In June

2022,

the 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

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

will

not

have

a

material

impact

on

the

financial

statements.

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

other

than

those

already

disclosed

in

the

financial

statements.

Level

1

Level

2

Level

3

Total

Franklin

Income

VIP

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Multi-Utilities

..........................

$

50,189,600

$

—

$

—

$

50,189,600

Oil,

Gas

&

Consumable

Fuels

.............

129,485,500

—

—

129,485,500

Pharmaceuticals

.......................

56,806,000

—

—

56,806,000

Road

&

Rail

..........................

4,141,400

—

—

4,141,400

Semiconductors

&

Semiconductor

Equipment

.

94,715,653

—

—

94,715,653

Specialty

Retail

........................

10,107,520

—

—

10,107,520

Tobacco

.............................

20,242,000

—

—

20,242,000

Equity-Linked

Securities

...................

—

415,495,259

—

415,495,259

Convertible

Preferred

Stocks

:

Electric

Utilities

........................

31,902,798

—

—

31,902,798

Thrifts

&

Mortgage

Finance

...............

—

3,443,750

—

3,443,750

Convertible

Bonds

.......................

—

4,121,136

—

4,121,136

Corporate

Bonds

........................

—

1,424,761,822

—

1,424,761,822

U.S.

Government

and

Agency

Securities

.......

—

269,507,227

—

269,507,227

Asset-Backed

Securities

...................

—

7,803,686

—

7,803,686

Mortgage-Backed

Securities

................

—

1,514,138

—

1,514,138

Short

Term

Investments

...................

57,572,687

—

—

57,572,687

Total

Investments

in

Securities

...........

$940,901,383

$2,137,725,194

a

$—

$3,078,626,577

Liabilities:

Other

Financial

Instruments:

Futures

contracts

........................

$

261,448

$

—

$

—

$

261,448

Total

Other

Financial

Instruments

.........

$261,448

$—

$—

$261,448

a

Includes

foreign

securities

valued

at

$11,078,176,

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.

12.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FI-38

Annual

Report

Franklin

Income

VIP

Fund

(continued)

Abbreviations

Selected

Portfolio

ADR

American

Depositary

Receipt

FNMA

Federal

National

Mortgage

Association

FRN

Floating

Rate

Note

Franklin

Templeton

Variable

Insurance

Products

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

FI-39

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Templeton

Variable

Insurance

Products

Trust

and

Shareholders

of

Franklin

Income

VIP

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Franklin

Income

VIP

Fund

(one

of

the

funds

constituting

Franklin

Templeton

Variable

Insurance

Products

Trust,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2022,

the

related

statement

of

operations

for

the

year

ended

December

31,

2022,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2022,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian

and

transfer

agent.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Templeton

Variable

Insurance

Products

Trust

Tax

Information

(unaudited)

FI-40

Annual

Report

Franklin

Income

VIP

Fund

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2022:

Note

(1)

-

The

Law

varies

in

each

state

as

to

whether

and

what

percentage

of

dividend

income

attributable

to

Federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

consult

with

their

tax

advisors

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

taxes.

Pursuant

to:

Amount

Reported

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$36,291,260

Interest

Earned

from

Federal

Obligations

Note

(1)

$6,929,122

MGD-1

Annual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

This

annual

report

for

Franklin

Mutual

Global

Discovery

VIP

Fund

covers

the

fiscal

year

ended

December

31,

2022

.

Class

4

Performance

Summary

as

of

December

31,

2022

Average

annual

total

return

of

Class

4

shares*

represents

the

average

annual

change

in

value,

assuming

reinvestment

of

dividends

and

capital

gains.

Average

returns

smooth

out

variations

in

returns,

which

can

be

significant;

they

are

not

the

same

as

year-by-year

results.

*The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Performance

reflects

the

Fund’s

Class

4

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.

Share

Class

Average

Annual

Total

Return

–

4

1-Year

-4.85%

5-Year

+3.56%

10-Year

+6.50%

MGD-2

Annual

Report

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

(12/31/12–

12/31/22

)

The

graph

below

shows

the

change

in

value

of

a

hypothetical

$10,000

investment

in

the

Fund

over

the

indicated

period

and

includes

reinvestment

of

any

income

or

distributions.

The

Fund’s

performance*

is

compared

to

the

performance

of

the

MSCI

World

Value

Index-NR

(USD).

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Important

Notes

to

Performance

Information

preceding

the

Fund

Summaries.

**Source:

FactSet.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

MGD-3

Annual

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

fundamental

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,

or

may

decline

further

in

value.

The

Fund’s

investments

in

foreign

securities

involve

certain

risks

including

currency

fluctuations,

and

economic

and

political

uncertainties.

Smaller

company

stocks

have

exhibited

greater

price

volatility

than

larger

company

stocks,

particularly

over

the

short

term.

The

Fund’s

investments

in

companies

engaged

in

mergers,

reorganizations

or

liquidations

also

involve

special

risks

as

pending

deals

may

not

be

completed

on

time

or

on

favorable

terms.

The

Fund

may

invest

in

lower

rated

bonds,

which

entail

higher

credit

risk.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

one-year

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

benchmark,

the

MSCI

World

Value

Index-NR

(USD)

posted

a

-6.52%

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,

posted

a

-18.36%

total

return

for

the

12

months

ended

December

31,

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

monetary

policy

in

2022,

which

hindered

stocks

and

the

outlook

for

economic

growth.

Russia’s

invasion

of

Ukraine

and

the

subsequent

escalation

of

the

war

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

disrupted

global

trade

and

commodity

markets.

Meanwhile,

shifting

public

health

policy

in

China

added

volatility

to

the

global

economy,

as

lockdowns

early

in

the

period

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

slowed

economic

activity,

while

widespread

protests

late

in

the

period

led

the

government

to

relax

its

strict

“zero-COVID”

policy.

In

the

U.S.,

gross

domestic

product

(GDP)

expanded

in

the

second

half

of

the

calendar

year,

recovering

from

a

slight

contraction

in

the

first

half

of

the

year

when

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

economic

output.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence

despite

high

spending

levels,

robust

job

growth

and

low

unemployment.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

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-4

Annual

Report

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

six

meetings

to

end

the

period

at

a

range

of

4.25%–4.50%.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings

and

anticipated

additional

interest-rate

increases

at

future

meetings

to

curtail

inflation.

*Rounds

to

less

than

0.1%

of

net

assets.

Economic

growth

in

the

eurozone

decelerated

to

a

slightly

positive

growth

rate

during

the

year.

The

lifting

of

COVID-

related

restrictions

in

some

European

countries

and

the

summer

tourism

season

strengthened

economies.

However,

the

war

in

Ukraine

disrupted

supply

chains,

weakened

the

economic

outlook

and

contributed

to

record

high

inflation

across

the

eurozone,

as

energy

prices

soared.

Electricity

prices

hit

record

highs

in

Germany

and

France

as

coal

futures

and

natural

gas

prices

climbed.

Consequently,

the

European

Central

Bank

raised

interest

rates

in

July

2022

for

the

first

time

in

11

years

to

curtail

growing

inflation

and

raised

rates

in

three

subsequent

meetings.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-15.06%

total

return

for

the

12

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-18.61%

total

return

for

the

12-month

period.

1

Growth

in

Japan

remained

slow,

alternating

between

positive

quarterly

GDP

growth

and

contraction.

China’s

economy

contracted

sharply

in

2022

as

COVID-related

restrictions

in

many

major

cities,

including

Shanghai,

weakened

consumer

demand.

Investor

concerns

about

the

solvency

of

several

large

property

developers

in

China

further

pressured

stocks

in

that

country.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-20.09%

total

return

for

the

12

months

under

review.

1

Central

bank

tightening,

the

threat

of

recession,

and

weakening

demand

for

semiconductors

in

technology-heavy

countries

contributed

to

the

downturn.

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.

However,

some

emerging

economies,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

benefited

from

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’

fundamental

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.

Geographic

Composition

12/31/22

%

of

Total

Net

Assets

United

States

54.5%

Germany

10.1%

United

Kingdom

5.8%

France

5.4%

Japan

4.8%

Netherlands

3.7%

Israel

2.5%

Switzerland

2.5%

Ireland

2.4%

Australia

2.2%

South

Korea

1.6%

Canada

1.5%

Spain

1.2%

Other*

0.0%

Short-Term

Investments

&

Other

Net

Assets

1.8%

Top

10

Industries

12/31/22

%

of

Total

Net

Assets

a

Health

Care

Providers

&

Services

7.6%

Banks

7.6%

Pharmaceuticals

6.4%

Insurance

6.0%

Oil,

Gas

&

Consumable

Fuels

5.8%

IT

Services

4.9%

Food

Products

4.3%

Entertainment

3.1%

Technology

Hardware,

Storage

&

Peripherals

2.8%

Automobiles

2.8%

Franklin

Mutual

Global

Discovery

VIP

Fund

MGD-5

Annual

Report

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

Stock

selection

in

the

financials

and

consumer

staples

sectors,

as

well

as

an

underweight

in

real

estate,

contributed

to

relative

returns

during

2022.

Conversely,

stock

selection

and

an

overweight

in

communication

services,

as

well

as

stock

selection

in

materials

and

energy

curbed

relative

results.

Top

positive

contributors

to

performance

relative

to

the

Fund’s

benchmark

index

during

the

12-month

period

included

BP,

Canadian

Natural

Resources

and

Williams.

U.K.-based

global

integrated

oil

company

BP

contributed

to

relative

returns,

as

it

delivered

repeated,

strong

earnings

reports

driven

by

positive

results

in

its

refining,

trading,

and

retail

businesses,

along

with

the

benefit

of

higher

commodity

prices.

Results

at

its

natural

gas

business

were

also

ahead

of

expectations.

BP

continues

to

pay

down

debt

and

use

its

excess

cash

to

buy

back

shares,

while

also

hiking

its

dividend

10%,

and

it

continues

to

execute

on

transforming

the

company

into

an

integrated

energy

company.  

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

robust

earnings

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. During

the

year,

we

sold

the

position

given

the

strength

in

the

share

price.

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

United

States

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.

During

the

12-month

period,

investments

that

detracted

from

relative

Fund

performance

included

Charter

Communications,

Walt

Disney

and

Western

Digital. 

Charter

Communications,

a

U.S.-based

cable

company,

hampered

relative

results

for

the

year.

Its

financial

results

showed

weak

broadband

subscriber

growth

and

the

company

announced

in

December

2022

that

capital

spending

would

be

higher

than

previous

forecasts

over

the

next

three

years,

reducing

free

cash

flow.

The

company

is

unlikely

to

see

revenue

growth

or

operating

expense

savings

to

offset

the

higher

capital

spending.

Over

the

longer

term,

we

expect

to

see

improved

subscriber

growth

trends

driving

Top

10

Holdings

12/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

BP

plc

2.7%

Oil,

Gas

&

Consumable

Fuels,

United

Kingdom

Deutsche

Telekom

AG

2.6%

Diversified

Telecommunication

Services,

Germany

Novartis

AG

2.5%

Pharmaceuticals,

Switzerland

AerCap

Holdings

NV

2.4%

Trading

Companies

&

Distributors,

Ireland

Parker-Hannifin

Corp.

2.4%

Machinery,

United

States

Kraft

Heinz

Co.

(The)

2.3%

Food

Products,

United

States

Siemens

AG

2.3%

Industrial

Conglomerates,

Germany

Schlumberger

Ltd.

2.3%

Energy

Equipment

&

Services,

United

States

Willis

Towers

Watson

plc

2.2%

Insurance,

United

States

DR

Horton,

Inc.

2.2%

Household

Durables,

United

States

Franklin

Mutual

Global

Discovery

VIP

Fund

MGD-6

Annual

Report

higher

revenue

and

free

cash

flow

growth.

We

anticipate

Charter’s

share

price

appreciation

will

depend

on

growth

in

subscribers,

revenue,

and

earnings

before

interest,

taxes,

depreciation

and

amortization

(EBITDA)

over

the

next

few

years.

Also

in

the

communication

services

sector,

Walt

Disney,

a

media

and

entertainment

company,

was

a

detractor

in

2022,

following

disappointing

quarterly

results

late

in

the

year.

The

company

saw

higher

losses

at

its

direct-to-consumer

(DTC)

business

and

lower

operating

income

at

its

theme

parks.

Disney

believes

losses

have

peaked

in

its

DTC

business,

while

its

parks

business

saw

higher

expenses

but

also

record

high

attendance

and

guest

spending.

Forward

bookings

continued

to

be

strong.

In

November

2022,

following

the

earnings

report,

Disney

announced

that

it

would

be

bringing

back

Bob

Iger

as

chief

executive

officer.

Western

Digital,

a

hard

drive

and

data

storage

company,

was

a

relative

detractor.

The

company’s

near-term

outlook

was

much

weaker

than

analysts’

expectations

in

its

latest

quarter,

and

order

cuts

in

its

consumer-focused

businesses

as

well

as

weaker

pricing

negatively

impacted

revenues

and

margins.

We

believe

the

tougher

macroeconomic

conditions

will

hinder

results

over

the

next

few

quarters.

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

December

31,

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

4

Fund

Expenses

Franklin

Mutual

Global

Discovery

VIP

Fund

MGD-7

Annual

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

184/365

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

7/1/22

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

4

$1,000

$1,051.30

$6.12

$1,019.24

$6.03

1.18%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Mutual

Global

Discovery

VIP

Fund

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MGD-8

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$20.32

$17.50

$19.17

$17.47

$20.38

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.39

0.25

0.57

c

0.43

0.36

Net

realized

and

unrealized

gains

(losses)

...........

(1.53)

3.14

(1.52)

3.64

(2.50)

Total

from

investment

operations

....................

(1.14)

3.39

(0.95)

4.07

(2.14)

Less

distributions

from:

Net

investment

income

..........................

(0.32)

(0.57)

(0.42)

(0.37)

(0.52)

Net

realized

gains

.............................

(1.58)

—

(0.30)

(2.00)

(0.25)

Total

distributions

...............................

(1.90)

(0.57)

(0.72)

(2.37)

(0.77)

Net

asset

value,

end

of

year

.......................

$17.28

$20.32

$17.50

$19.17

$17.47

Total

return

d

...................................

(4.52)%

19.43%

(4.22)%

24.71%

(11.01)%

Ratios

to

average

net

assets

Expenses

e,f

,g

...................................

0.89%

0.98%

0.97%

0.94%

0.96%

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

h

0.02%

0.01%

0.02%

0.01%

Net

investment

income

...........................

2.05%

1.29%

3.57%

c

2.22%

1.81%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$3,851

$4,166

$3,788

$3,878

$3,282

Portfolio

turnover

rate

............................

55.49%

41.58%

34.79%

21.82%

29.84%

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

$0.24

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

Products

Trust

serves

as

an

underlying

investment

vehicle.

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

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).

h

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.

Annual

Report

MGD-9

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$19.61

$16.91

$18.54

$16.96

$19.80

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.33

0.20

0.51

c

0.37

0.30

Net

realized

and

unrealized

gains

(losses)

...........

(1.48)

3.02

(1.47)

3.53

(2.42)

Total

from

investment

operations

....................

(1.15)

3.22

(0.96)

3.90

(2.12)

Less

distributions

from:

Net

investment

income

..........................

(0.26)

(0.52)

(0.37)

(0.32)

(0.47)

Net

realized

gains

.............................

(1.58)

—

(0.30)

(2.00)

(0.25)

Total

distributions

...............................

(1.84)

(0.52)

(0.67)

(2.32)

(0.72)

Net

asset

value,

end

of

year

.......................

$16.62

$19.61

$16.91

$18.54

$16.96

Total

return

d

...................................

(4.75)%

19.13%

(4.46)%

24.37%

(11.22)%

Ratios

to

average

net

assets

Expenses

e,f

,g

...................................

1.14%

1.22%

1.22%

1.19%

1.21%

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

h

0.02%

0.01%

0.02%

0.01%

Net

investment

income

...........................

1.80%

1.05%

3.33%

c

1.97%

1.56%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$398,802

$477,214

$467,653

$539,759

$500,607

Portfolio

turnover

rate

............................

55.49%

41.58%

34.79%

21.82%

29.84%

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

$0.24

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

Products

Trust

serves

as

an

underlying

investment

vehicle.

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

ncludes

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).

h

Rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MGD-10

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$20.12

$17.34

$18.98

$17.30

$20.17

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.32

0.19

0.51

c

0.36

0.29

Net

realized

and

unrealized

gains

(losses)

...........

(1.51)

3.09

(1.50)

3.61

(2.47)

Total

from

investment

operations

....................

(1.19)

3.28

(0.99)

3.97

(2.18)

Less

distributions

from:

Net

investment

income

..........................

(0.23)

(0.50)

(0.35)

(0.29)

(0.44)

Net

realized

gains

.............................

(1.58)

—

(0.30)

(2.00)

(0.25)

Total

distributions

...............................

(1.81)

(0.50)

(0.65)

(2.29)

(0.69)

Net

asset

value,

end

of

year

.......................

$17.12

$20.12

$17.34

$18.98

$17.30

Total

return

d

...................................

(4.85)%

18.98%

(4.54)%

24.28%

(11.31)%

Ratios

to

average

net

assets

Expenses

e,f

,g

...................................

1.25%

1.32%

1.32%

1.29%

1.31%

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

h

0.02%

0.01%

0.02%

0.01%

Net

investment

income

...........................

1.71%

0.95%

3.22%

c

1.87%

1.46%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$20,123

$25,930

$26,688

$30,865

$30,094

Portfolio

turnover

rate

............................

55.49%

41.58%

34.79%

21.82%

29.84%

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

$0.24

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

1.72%.

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

Products

Trust

serves

as

an

underlying

investment

vehicle.

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

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).

h

Rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments,

December

31,

2022

Franklin

Mutual

Global

Discovery

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

MGD-11

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

96.3%

Aerospace

&

Defense

1.8%

Airbus

SE

...........................................

France

63,047

$

7,496,096

Auto

Components

1.7%

Denso

Corp.

.........................................

Japan

142,872

7,004,016

a,b,c

International

Automotive

Components

Group

Brazil

LLC

........

Brazil

424,073

14,927

7,018,943

Automobiles

1.5%

General

Motors

Co.

....................................

United

States

187,978

6,323,580

Banks

7.6%

CaixaBank

SA

........................................

Spain

1,297,971

5,088,838

First

Horizon

Corp.

....................................

United

States

125,693

3,079,478

ING

Groep

NV

.......................................

Netherlands

615,032

7,491,456

JPMorgan

Chase

&

Co.

.................................

United

States

66,966

8,980,141

Wells

Fargo

&

Co.

.....................................

United

States

179,033

7,392,273

32,032,186

Building

Products

2.0%

Johnson

Controls

International

plc

.........................

United

States

134,170

8,586,880

Capital

Markets

2.1%

BlackRock,

Inc.

.......................................

United

States

12,407

8,791,972

Chemicals

1.9%

d

Covestro

AG,

144A,

Reg

S

..............................

Germany

207,548

8,084,873

Consumer

Finance

0.5%

Capital

One

Financial

Corp.

.............................

United

States

23,820

2,214,307

Diversified

Financial

Services

2.1%

e

Voya

Financial,

Inc.

....................................

United

States

146,195

8,989,531

Diversified

Telecommunication

Services

2.6%

Deutsche

Telekom

AG

..................................

Germany

552,902

11,000,348

Electrical

Equipment

1.5%

Mitsubishi

Electric

Corp.

................................

Japan

654,693

6,485,090

Energy

Equipment

&

Services

2.3%

Schlumberger

Ltd.

.....................................

United

States

179,446

9,593,183

Entertainment

3.1%

Activision

Blizzard,

Inc.

.................................

United

States

109,659

8,394,396

b

Walt

Disney

Co.

(The)

..................................

United

States

54,343

4,721,320

13,115,716

Food

Products

4.3%

Danone

SA

..........................................

France

160,348

8,450,864

Kraft

Heinz

Co.

(The)

..................................

United

States

237,959

9,687,311

18,138,175

Health

Care

Equipment

&

Supplies

1.8%

Medtronic

plc

........................................

United

States

99,787

7,755,446

Health

Care

Providers

&

Services

7.6%

CVS

Health

Corp.

.....................................

United

States

95,573

8,906,448

Elevance

Health,

Inc.

..................................

United

States

14,607

7,492,953

Fresenius

SE

&

Co.

KGaA

...............................

Germany

310,528

8,673,238

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

Annual

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)

Health

Care

Providers

&

Services

(continued)

Humana,

Inc.

........................................

United

States

13,792

$

7,064,124

32,136,763

Household

Durables

2.2%

DR

Horton,

Inc.

.......................................

United

States

104,537

9,318,428

Household

Products

1.4%

Reckitt

Benckiser

Group

plc

.............................

United

Kingdom

84,171

5,834,187

Industrial

Conglomerates

2.3%

Siemens

AG

.........................................

Germany

69,823

9,624,743

Insurance

6.0%

Everest

Re

Group

Ltd.

.................................

United

States

23,799

7,883,895

NN

Group

NV

........................................

Netherlands

197,491

8,075,464

Willis

Towers

Watson

plc

................................

United

States

38,606

9,442,256

25,401,615

Interactive

Media

&

Services

1.9%

b

Meta

Platforms,

Inc.,

A

.................................

United

States

65,477

7,879,502

IT

Services

4.9%

Capgemini

SE

........................................

France

40,896

6,836,518

b

Fiserv,

Inc.

..........................................

United

States

66,605

6,731,767

Global

Payments,

Inc.

..................................

United

States

71,699

7,121,145

20,689,430

Machinery

2.4%

Parker-Hannifin

Corp.

..................................

United

States

34,625

10,075,875

Media

2.1%

b

Charter

Communications,

Inc.,

A

..........................

United

States

25,731

8,725,382

Metals

&

Mining

2.1%

Rio

Tinto

plc

.........................................

Australia

129,382

9,106,051

Oil,

Gas

&

Consumable

Fuels

5.8%

BP

plc

..............................................

United

Kingdom

1,995,757

11,514,925

Suncor

Energy,

Inc.

....................................

Canada

201,272

6,384,515

Williams

Cos.,

Inc.

(The)

................................

United

States

202,478

6,661,526

24,560,966

Personal

Products

2.1%

b

Haleon

plc

..........................................

United

States

2,267,494

8,971,232

Pharmaceuticals

6.0%

GSK

plc

............................................

United

States

538,177

9,301,055

Merck

&

Co.,

Inc.

.....................................

United

States

50,518

5,604,972

Novartis

AG,

ADR

.....................................

Switzerland

114,942

10,427,538

25,333,565

Real

Estate

Management

&

Development

1.7%

b

CBRE

Group,

Inc.,

A

...................................

United

States

94,115

7,243,090

Semiconductors

&

Semiconductor

Equipment

2.6%

b

Renesas

Electronics

Corp.

..............................

Japan

751,901

6,643,222

b

Tower

Semiconductor

Ltd.

...............................

Israel

104,822

4,528,310

11,171,532

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

MGD-13

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Software

1.4%

b

Avaya

Holdings

Corp.

..................................

United

States

4

$

1

b

Check

Point

Software

Technologies

Ltd.

....................

Israel

47,254

5,961,564

5,961,565

Technology

Hardware,

Storage

&

Peripherals

2.8%

Samsung

Electronics

Co.

Ltd.

............................

South

Korea

158,379

6,981,000

b

Western

Digital

Corp.

..................................

United

States

157,314

4,963,257

11,944,257

Tobacco

1.8%

British

American

Tobacco

plc

.............................

United

Kingdom

193,273

7,645,207

Trading

Companies

&

Distributors

2.4%

b

AerCap

Holdings

NV

...................................

Ireland

173,498

10,118,403

Total

Common

Stocks

(Cost

$344,910,386)

.....................................

407,368,119

Preferred

Stocks

1.3%

Automobiles

1.3%

f

Volkswagen

AG,

22.97%

................................

Germany

43,326

5,374,326

Total

Preferred

Stocks

(Cost

$6,841,027)

.......................................

5,374,326

Principal

Amount

*

Corporate

Bonds

0.6%

Airlines

0.1%

d

American

Airlines,

Inc.

,

Senior

Secured

Note

,

144A,

11.75

%

,

7/15/25

United

States

484,000

520,218

Pharmaceuticals

0.4%

d

Bausch

Health

Americas,

Inc.

,

Senior

Note,

144A,

9.25%,

4/01/26

......................

United

States

1,707,000

1,197,595

Senior

Note,

144A,

8.5%,

1/31/27

.......................

United

States

784,000

411,388

d

Bausch

Health

Cos.,

Inc.

,

Senior

Note

,

144A,

9

%

,

12/15/25

......

United

States

65,000

51,398

1,660,381

Software

0.1%

d

Veritas

US,

Inc.

/

Veritas

Bermuda

Ltd.

,

Senior

Secured

Note

,

144A,

7.5

%

,

9/01/25

......................................

United

States

402,000

277,729

Total

Corporate

Bonds

(Cost

$3,412,978)

.......................................

2,458,328

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

$355,164,391)

...............................

415,200,773

a

Short

Term

Investments

1.9%

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

U.S.

Government

and

Agency

Securities

1.9%

h

FHLB,

1/03/23

.......................................

United

States

5,200,000

5,200,000

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MGD-14

Short

Term

Investments

(continued)

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

U.S.

Government

and

Agency

Securities

(continued)

h,i

U.S.

Treasury

Bills

,

1/05/23

...........................................

United

States

1,000,000

$

999,798

5/18/23

...........................................

United

States

1,000,000

983,090

6/22/23

...........................................

United

States

1,000,000

978,627

2,961,515

Total

U.S.

Government

and

Agency

Securities

(Cost

$8,160,221)

..................

8,161,515

Total

Short

Term

Investments

(Cost

$8,160,221

)

.................................

8,161,515

a

Total

Investments

(Cost

$363,324,612)

100.1%

..................................

$423,362,288

Other

Assets,

less

Liabilities

(0.1)%

...........................................

(587,002)

Net

Assets

100.0%

...........................................................

$422,775,286

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

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

December

31,

2022,

the

aggregate

value

of

these

securities

was

$10,543,201,

representing

2.5%

of

net

assets.

e

A

portion

or

all

of

the

security

is

on

loan

at

December

31,

2022.

See

Note

1(e).

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

A

portion

or

all

of

the

security

has

been

segregated

as

collateral

for

open

forward

exchange

contracts.

At

December

31,

2022,

the

aggregate

value

of

these

securities

pledged

amounted

to

$1,698,466,

representing

0.4%

of

net

assets.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

MGD-15

At

December

31,

2022,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1(c). 

At

December

3

1

,

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-31.

Futures

Contracts

Description

Type

Number

of

Contracts

Notional

Amount

*

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Foreign

exchange

contracts

Foreign

Exchange

EUR/USD

...................

Short

68

$

9,140,900

3/13/23

$

(125,203)

Foreign

Exchange

GBP/USD

...................

Short

7

528,675

3/13/23

9,608

Total

Futures

Contracts

......................................................................

$(115,595)

*

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

2,084,983

2,111,317

1/09/23

$

121,295

$

—

Euro

.............

BOFA

Sell

481,424

491,068

1/09/23

—

(24,444)

Euro

.............

HSBK

Buy

688,179

676,828

1/09/23

60,078

—

Euro

.............

HSBK

Sell

18,093

18,857

1/09/23

—

(518)

Euro

.............

UBSW

Buy

593,785

631,647

1/09/23

4,182

—

Euro

.............

UBSW

Sell

16,504,929

16,142,808

1/09/23

—

(1,530,779)

British

Pound

......

BOFA

Buy

150,000

170,590

1/17/23

10,813

—

British

Pound

......

BOFA

Sell

2,116,816

2,602,201

1/17/23

42,396

(176)

British

Pound

......

HSBK

Buy

715,000

784,319

1/17/23

80,370

—

British

Pound

......

UBSW

Buy

31,941

37,782

1/17/23

846

—

British

Pound

......

UBSW

Sell

232,834

283,483

1/17/23

2,586

(682)

Japanese

Yen

......

BOFA

Buy

28,704,994

215,491

2/17/23

4,486

—

Japanese

Yen

......

BOFA

Sell

828,305,659

6,006,104

2/17/23

—

(341,489)

Japanese

Yen

......

UBSW

Buy

5,237,544

39,882

2/17/23

256

—

Japanese

Yen

......

UBSW

Sell

65,576,135

475,651

2/17/23

—

(26,882)

South

Korean

Won

..

HSBK

Buy

454,468,541

360,325

5/12/23

2,308

(186)

South

Korean

Won

..

HSBK

Sell

6,575,847,958

4,758,872

5/12/23

—

(485,485)

South

Korean

Won

..

UBSW

Sell

447,389,608

323,677

5/12/23

—

(33,124)

Total

Forward

Exchange

Contracts

...................................................

$329,616

$(2,443,765)

Net

unrealized

appreciation

(depreciation)

............................................

$(2,114,149)

*

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

December

31,

2022

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MGD-16

Franklin

Mutual

Global

Discovery

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$363,324,612

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$4,851,561)

.................................

$423,362,288

Cash

....................................................................................

100,435

Foreign

currency,

at

value

(cost

$265,466)

........................................................

266,508

Receivables:

Investment

securities

sold

...................................................................

652,924

Capital

shares

sold

........................................................................

92,381

Dividends

and

interest

.....................................................................

1,636,749

European

Union

tax

reclaims

(Note

1

f

)

.........................................................

283,860

Deposits

with

brokers

for:

Futures

contracts

........................................................................

207,825

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

329,616

Total

assets

..........................................................................

426,932,586

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

2,468

Capital

shares

redeemed

...................................................................

1,053,011

Management

fees

.........................................................................

319,000

Distribution

fees

..........................................................................

92,422

Trustees'

fees

and

expenses

.................................................................

1,144

Variation

margin

on

futures

contracts

...........................................................

17,794

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

2,443,765

Accrued

expenses

and

other

liabilities

...........................................................

227,696

Total

liabilities

.........................................................................

4,157,300

Net

assets,

at

value

.................................................................

$422,775,286

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$332,321,302

Total

distributable

earnings

(losses)

.............................................................

90,453,984

Net

assets,

at

value

.................................................................

$422,775,286

Franklin

Mutual

Global

Discovery

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$3,850,925

Shares

outstanding

........................................................................

222,916

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$17.28

Class

2:

Net

assets,

at

value

.......................................................................

$398,801,623

Shares

outstanding

........................................................................

23,996,196

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$16.62

Class

4:

Net

assets,

at

value

.......................................................................

$20,122,738

Shares

outstanding

........................................................................

1,175,517

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$17.12

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2022

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

MGD-17

Franklin

Mutual

Global

Discovery

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$1,176,167)

Unaffiliated

issuers

........................................................................

$12,520,896

Interest:

Unaffiliated

issuers

........................................................................

335,202

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

27,617

Non-controlled

affiliates

(Note

3

e

)

.............................................................

3,534

Other

income

(Note

1

f

)

.......................................................................

466,439

Total

investment

income

...................................................................

13,353,688

Expenses:

Management

fees

(Note

3

a

)

...................................................................

3,968,978

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

1,068,176

    Class

4

................................................................................

78,551

Custodian

fees

(Note

4

)

......................................................................

19,318

Reports

to

shareholders

fees

..................................................................

(115,036)

Professional

fees

...........................................................................

125,393

Trustees'

fees

and

expenses

..................................................................

6,070

Dividends

on

securities

sold

short

..............................................................

5,441

Other

....................................................................................

49,200

Total

expenses

.........................................................................

5,206,091

Expense

reductions

(Note

4

)

...............................................................

(265)

Expenses

waived/paid

by

affiliates

(Note

3e)

...................................................

(12,940)

Net

expenses

.........................................................................

5,192,886

Net

investment

income

................................................................

8,160,802

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

14,909,442

Foreign

currency

transactions

................................................................

(412,113)

Forward

exchange

contracts

.................................................................

11,783,292

Futures

contracts

.........................................................................

1,843,317

Securities

sold

short

.......................................................................

(2,003,644)

Net

realized

gain

(loss)

..................................................................

26,120,294

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(58,134,976)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

116,414

Forward

exchange

contracts

.................................................................

(3,694,564)

Futures

contracts

.........................................................................

116,990

Securities

sold

short

.......................................................................

3,495,780

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(58,100,356)

Net

realized

and

unrealized

gain

(loss)

............................................................

(31,980,062)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(23,819,260)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MGD-18

Franklin

Mutual

Global

Discovery

VIP

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$8,160,802

$5,398,915

Net

realized

gain

(loss)

.................................................

26,120,294

65,601,434

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(58,100,356)

19,012,410

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(23,819,260)

90,012,759

Distributions

to

shareholders:

Class

1

.............................................................

(379,372)

(112,415)

Class

2

.............................................................

(40,928,754)

(12,672,652)

Class

4

.............................................................

(2,013,657)

(650,689)

Total

distributions

to

shareholders

..........................................

(43,321,783)

(13,435,756)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

247,164

(216,018)

Class

2

.............................................................

(15,079,255)

(62,330,624)

Class

4

.............................................................

(2,561,043)

(4,849,570)

Total

capital

share

transactions

............................................

(17,393,134)

(67,396,212)

Net

increase

(decrease)

in

net

assets

...................................

(84,534,177)

9,180,791

Net

assets:

Beginning

of

year

.......................................................

507,309,463

498,128,672

End

of

year

...........................................................

$422,775,286

$507,309,463

Franklin

Templeton

Variable

Insurance

Products

Trust

MGD-19

Annual

Report

Notes

to

Financial

Statements

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.

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

Codification

Topic

946,

Financial

Services

-

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

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

December

31,

2022,

44.1%

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

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

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.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

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,

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MGD-20

Annual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

recent

t

ransactions,

market

multiples,

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

December

31,

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.

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MGD-21

Annual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

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

December

31,

2022,

the

Fund

had

OTC

derivatives

in

a

net

liability

position

of

$2,114,149

and

the

aggregate

value

of

collateral

pledged

for

such

contracts

was

$1,698,466. 

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

exposure

to

certain

foreign

currencies.

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

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.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Derivative

Financial

Instruments

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MGD-22

Annual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

Such

dividends

and/or

interest

and

any

security

borrowing

fees

are

recorded

as

an

expense

to

the

Fund.

At

December

31,

2022,

the

Fund

had

no

securities

sold

short.

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.

Additionally,

the

Fund

held

$5,023,698

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.

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.

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

December

31,

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)

d.

Securities

Sold

Short

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MGD-23

Annual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

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

and

dividends

declared

on

securities

sold

short

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.

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)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MGD-24

Annual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

December

31,

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:

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

72,224

$1,477,140

21,257

$414,362

Shares

issued

in

reinvestment

of

distributions

..........

24,603

379,372

5,686

112,415

Shares

redeemed

...............................

(78,944)

(1,609,348)

(38,354)

(742,795)

Net

increase

(decrease)

..........................

17,883

$247,164

(11,411)

$(216,018)

Class

2

Shares:

Shares

sold

...................................

691,307

$12,736,312

769,967

$14,519,351

Shares

issued

in

reinvestment

of

distributions

..........

2,758,002

40,928,754

663,490

12,672,652

Shares

redeemed

...............................

(3,783,395)

(68,744,321)

(4,752,157)

(89,522,627)

Net

increase

(decrease)

..........................

(334,086)

$(15,079,255)

(3,318,700)

$(62,330,624)

Class

4

Shares:

Shares

sold

...................................

69,866

$1,303,124

14,869

$289,930

Shares

issued

in

reinvestment

of

distributions

..........

131,698

2,013,657

33,198

650,689

Shares

redeemed

...............................

(314,761)

(5,877,824)

(298,686)

(5,790,189)

Net

increase

(decrease)

..........................

(113,197)

$(2,561,043)

(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

MGD-25

Annual

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

year

ended

December

31,

2022,

the

gross

effective

investment

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

year

ended

December

31,

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

MGD-26

Annual

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

year

ended

December

31,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021,

was

as

follows:

At

December

31,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

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,

passive

foreign

investment

company

shares,

tax

straddles

and

wash

sales.

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

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,

3.782%

$—

$32,760,000

$(32,760,000)

$—

$—

$—

—

$3,534

Total

Affiliated

Securities

...

$—

$32,760,000

$(32,760,000)

$—

$—

$—

$3,534

2022

2021

Distributions

paid

from:

Ordinary

income

..........................................................

$11,446,719

$13,435,756

Long

term

capital

gain

......................................................

31,875,064

—

$43,321,783

$13,435,756

Cost

of

investments

..........................................................................

$363,588,229

Unrealized

appreciation

........................................................................

$83,275,019

Unrealized

depreciation

........................................................................

(25,730,704)

Net

unrealized

appreciation

(depreciation)

..........................................................

$57,544,315

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$10,271,016

Undistributed

long

term

capital

gains

..............................................................

22,565,499

Total

distributable

earnings

.....................................................................

$32,836,515

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MGD-27

Annual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities

and

securities

sold

short)

for

the

year

ended

December

31,

2022,

aggregated $244,669,973

and

$277,873,298,

respectively.

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

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

December

31,

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

December

31,

2022,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MGD-28

Annual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

12.

Other

Derivative

Information

At

December

31,

2022,

investments

in

derivative

contracts

are

reflected

in

the

Statement of

Assets

and

Liabilities

as

follows:

For

the

year

ended

December

31,

2022,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

year

ended

December

31,

2022

,

the

average

month

end

notional

amount

of

futures

contracts

represented

$15,149,917.

The

average

month

end

contract

value

of

forward

exchange

contracts

was

$79,951,703.

See

Note

1(c) regarding

derivative

financial

instruments. 

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

$

14,927

Total

Restricted

Securities

(Value

is

0.0%

†

of

Net

Assets)

.............

$281,629

$14,927

†

Rounds

to

less

than

0.1%

of

net

assets.

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

$

9,608

a

Variation

margin

on

futures

contracts

$

125,203

a

Unrealized

appreciation

on

OTC

forward

exchange

contracts

329,616

Unrealized

depreciation

on

OTC

forward

exchange

contracts

2,443,765

Total

....................

$339,224

$2,568,968

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

year

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

Year

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Year

Franklin

Mutual

Global

Discovery

VIP

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Futures

contracts

$1,843,317

Futures

contracts

$116,990

Forward

exchange

contracts

11,783,292

Forward

exchange

contracts

(3,694,564)

Total

.......................

$13,626,609

$(3,577,574)

11.

Restricted

Securities

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MGD-29

Annual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

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

matured

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.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

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

year

ended

December

31,

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

December

31,

2022,

in

valuing

the

Fund's assets

and

liabilities

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

...................

$

—

$

7,496,096

$

—

$

7,496,096

Auto

Components

......................

—

7,004,016

14,927

7,018,943

Automobiles

..........................

6,323,580

—

—

6,323,580

Banks

...............................

19,451,892

12,580,294

—

32,032,186

Building

Products

......................

8,586,880

—

—

8,586,880

Capital

Markets

........................

8,791,972

—

—

8,791,972

Chemicals

...........................

—

8,084,873

—

8,084,873

Consumer

Finance

.....................

2,214,307

—

—

2,214,307

Diversified

Financial

Services

.............

8,989,531

—

—

8,989,531

Diversified

Telecommunication

Services

.....

—

11,000,348

—

11,000,348

Electrical

Equipment

....................

—

6,485,090

—

6,485,090

Energy

Equipment

&

Services

.............

9,593,183

—

—

9,593,183

Entertainment

.........................

13,115,716

—

—

13,115,716

Food

Products

........................

9,687,311

8,450,864

—

18,138,175

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MGD-30

Annual

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 year. 

15.

New

Accounting

Pronouncements

In June

2022,

the 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

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

will

not

have

a

material

impact

on

the

financial

statements.

Level

1

Level

2

Level

3

Total

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Health

Care

Equipment

&

Supplies

.........

$

7,755,446

$

—

$

—

$

7,755,446

Health

Care

Providers

&

Services

..........

23,463,525

8,673,238

—

32,136,763

Household

Durables

....................

9,318,428

—

—

9,318,428

Household

Products

....................

—

5,834,187

—

5,834,187

Industrial

Conglomerates

................

—

9,624,743

—

9,624,743

Insurance

............................

17,326,151

8,075,464

—

25,401,615

Interactive

Media

&

Services

..............

7,879,502

—

—

7,879,502

IT

Services

...........................

13,852,912

6,836,518

—

20,689,430

Machinery

............................

10,075,875

—

—

10,075,875

Media

...............................

8,725,382

—

—

8,725,382

Metals

&

Mining

.......................

—

9,106,051

—

9,106,051

Oil,

Gas

&

Consumable

Fuels

.............

13,046,041

11,514,925

—

24,560,966

Personal

Products

.....................

—

8,971,232

—

8,971,232

Pharmaceuticals

.......................

16,032,510

9,301,055

—

25,333,565

Real

Estate

Management

&

Development

....

7,243,090

—

—

7,243,090

Semiconductors

&

Semiconductor

Equipment

.

4,528,310

6,643,222

—

11,171,532

Software

.............................

5,961,565

—

—

5,961,565

Technology

Hardware,

Storage

&

Peripherals

.

4,963,257

6,981,000

—

11,944,257

Tobacco

.............................

—

7,645,207

—

7,645,207

Trading

Companies

&

Distributors

..........

10,118,403

—

—

10,118,403

Preferred

Stocks

........................

—

5,374,326

—

5,374,326

Corporate

Bonds

........................

—

2,458,328

—

2,458,328

Companies

in

Liquidation

..................

—

—

—

a

—

Short

Term

Investments

...................

—

8,161,515

—

8,161,515

Total

Investments

in

Securities

...........

$247,044,769

$176,302,592

b

$14,927

$423,362,288

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

329,616

$

—

$

329,616

Futures

contracts

........................

9,608

—

—

9,608

Total

Other

Financial

Instruments

.........

$9,608

$329,616

$—

$339,224

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

2,443,765

$

—

$

2,443,765

Futures

contracts

........................

125,203

—

—

125,203

Total

Other

Financial

Instruments

.........

$125,203

$2,443,765

$—

$2,568,968

a

Includes

financial

instruments

determined

to

have

no

value

at

December

31,

2022.

b

Includes

foreign

securities

valued

at

$165,682,749,

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

MGD-31

Annual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

(continued)

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

other

than

those

already

disclosed

in

the

financial

statements.

Abbreviations

Counterparty

BOFA

Bank

of

America

N.A.

HSBK

HSBC

Bank

plc

UBSW

UBS

AG

Currency

EUR

Euro

GBP

British

Pound

USD

United

States

Dollar

Selected

Portfolio

ADR

American

Depositary

Receipt

FHLB

Federal

Home

Loan

Banks

Franklin

Templeton

Variable

Insurance

Products

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

MGD-32

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Templeton

Variable

Insurance

Products

Trust

and

Shareholders

of

Franklin

Mutual

Global

Discovery

VIP

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Franklin

Mutual

Global

Discovery

VIP

Fund

(one

of

the

funds

constituting

Franklin

Templeton

Variable

Insurance

Products

Trust,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2022,

the

related

statement

of

operations

for

the

year

ended

December

31,

2022,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2022,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Templeton

Variable

Insurance

Products

Trust

Tax

Information

(unaudited)

MGD-33

Annual

Report

Franklin

Mutual

Global

Discovery

VIP

Fund

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2022:

Note

(1)

-

The

Law

varies

in

each

state

as

to

whether

and

what

percentage

of

dividend

income

attributable

to

Federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

consult

with

their

tax

advisors

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

taxes.

Under

Section

853

of

the

Internal

Revenue

Code,

the

Fund

intend

to

elect

to

pass

through

to

their

shareholders

the

following

amounts,

or

amounts

as

finally

determined,

of

foreign

taxes

paid

and

foreign

source

income

earned

by

the

Funds

during

the

fiscal

year

ended

December

31,

2022:

Pursuant

to:

Amount

Reported

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$31,875,064

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$2,607,693

Interest

Earned

from

Federal

Obligations

Note

(1)

$104,240

Amount

Reported

Foreign

Taxes

Paid

$802,859

Foreign

Source

Income

Earned

$8,531,754

MS-1

Annual

Report

Franklin

Mutual

Shares

VIP

Fund

This

annual

report

for

Franklin

Mutual

Shares

VIP

Fund

covers

the

fiscal

year

ended

December

31,

2022

.

Class

4

Performance

Summary

as

of

December

31,

2022

Average

annual

total

return

of

Class

4

shares*

represents

the

average

annual

change

in

value,

assuming

reinvestment

of

dividends

and

capital

gains.

Average

returns

smooth

out

variations

in

returns,

which

can

be

significant;

they

are

not

the

same

as

year-by-year

results.

*The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Performance

reflects

the

Fund’s

Class

4

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.

Share

Class

Average

Annual

Total

Return

–

4

1-Year

-7.47%

5-Year

+3.05%

10-Year

+6.62%

MS-2

Annual

Report

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

(12/31/12–

12/31/22

)

The

graph

below

shows

the

change

in

value

of

a

hypothetical

$10,000

investment

in

the

Fund

over

the

indicated

period

and

includes

reinvestment

of

any

income

or

distributions.

The

Fund’s

performance*

is

compared

to

the

performance

of

the

Russell

1000

®

Value

Index.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Important

Notes

to

Performance

Information

preceding

the

Fund

Summaries.

**Source:

FactSet.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

MS-3

Annual

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.

Value

securities

may

not

increase

in

price

as

anticipated

or

may

decline

further

in

value.

The

Fund’s

investments

in

foreign

securities

involve

special

risks

including

currency

fluctuations,

and

economic

and

political

uncertainties.

The

Fund

may

also

invest

in

companies

engaged

in

mergers,

reorganizations

or

liquidations,

which

involve

special

risks

as

pending

deals

may

not

be

completed

on

time

or

on

favorable

terms,

as

well

as

lower

rated

bonds,

which

entail

higher

credit

risk.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

one-year

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

benchmark,

the

Russell

1000

®

Value

Index,

posted

a

-7.54

%

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,

posted

a

-18.36%

total

return

for

the

12

months

ended

December

31,

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

monetary

policy

in

2022,

which

hindered

stocks

and

the

outlook

for

economic

growth.

Russia’s

invasion

of

Ukraine

and

the

subsequent

escalation

of

the

war

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

disrupted

global

trade

and

commodity

markets.

Meanwhile,

shifting

public

health

policy

in

China

added

volatility

to

the

global

economy,

as

lockdowns

early

in

the

period

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

slowed

economic

activity,

while

widespread

protests

late

in

the

period

led

the

government

to

relax

its

strict

“zero-COVID”

policy.

Geographic

Composition

12/31/22

%

of

Total

Net

Assets

United

States

91.7%

United

Kingdom

2.9%

Switzerland

2.2%

Netherlands

1.5%

Other*

0.0%

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

Mutual

Shares

VIP

Fund

MS-4

Annual

Report

In

the

U.S.,

gross

domestic

product

(GDP)

expanded

in

the

second

half

of

the

calendar

year,

recovering

from

a

slight

contraction

in

the

first

half

of

the

year

when

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

economic

output.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence

despite

high

spending

levels,

robust

job

growth

and

low

unemployment.

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

six

meetings

to

end

the

period

at

a

range

of

4.25%–4.50%.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings

and

anticipated

additional

interest-rate

increases

at

future

meetings

to

curtail

inflation.

Economic

growth

in

the

eurozone

decelerated

to

a

slightly

positive

growth

rate

during

the

year.

The

lifting

of

COVID-

related

restrictions

in

some

European

countries

and

the

summer

tourism

season

strengthened

economies.

However,

the

war

in

Ukraine

disrupted

supply

chains,

weakened

the

economic

outlook

and

contributed

to

record

high

inflation

across

the

eurozone,

as

energy

prices

soared.

Electricity

prices

hit

record

highs

in

Germany

and

France

as

coal

futures

and

natural

gas

prices

climbed.

Consequently,

the

European

Central

Bank

raised

interest

rates

in

July

2022

for

the

first

time

in

11

years

to

curtail

growing

inflation

and

raised

rates

in

three

subsequent

meetings.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-15.06%

total

return

for

the

12

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-18.61%

total

return

for

the

12-month

period.

1

Growth

in

Japan

remained

slow,

alternating

between

positive

quarterly

GDP

growth

and

contraction.

China’s

economy

contracted

sharply

in

2022

as

COVID-related

restrictions

in

many

major

cities,

including

Shanghai,

weakened

consumer

demand.

Investor

concerns

about

the

solvency

of

several

large

property

developers

in

China

further

pressured

stocks

in

that

country.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-20.09%

total

return

for

the

12

months

under

review.

1

Central

bank

tightening,

the

threat

of

recession,

and

weakening

demand

for

semiconductors

in

technology-heavy

countries

contributed

to

the

downturn.

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.

However,

some

emerging

economies,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

benefited

from

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

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

Top

10

Industries

12/31/22

%

of

Total

Net

Assets

a

Banks

10.9%

Pharmaceuticals

8.1%

Health

Care

Providers

&

Services

5.9%

IT

Services

5.7%

Software

5.6%

Oil,

Gas

&

Consumable

Fuels

5.5%

Media

4.2%

Entertainment

3.8%

Insurance

3.7%

Food

Products

2.7%

Franklin

Mutual

Shares

VIP

Fund

MS-5

Annual

Report

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

12-month

period,

stock

selection

in

financials,

information

technology

and

consumer

staples

contributed

to

relative

returns.

Conversely,

stock

selection

in

the

energy

sector,

along

with

overweighting

in

consumer

discretionary

and

communication

services,

curbed

relative

results.

Top

positive

contributors

to

performance

relative

to

the

Fund’s

benchmark

index

during

the

12-month

period

included

BP,

Williams

and

Kraft

Heinz.

U.K.-based

global

integrated

oil

company

BP

contributed

to

relative

returns,

as

the

company

delivered

repeated,

strong

earnings

reports

driven

by

positive

results

in

its

refining,

trading,

and

retail

businesses,

along

with

the

benefit

of

higher

commodity

prices.

Results

at

its

natural

gas

business

were

also

ahead

of

expectations.

BP

continues

to

pay

down

debt

and

use

its

excess

cash

to

buy

back

shares,

while

also

hiking

its

dividend

10%,

and

it

continues

to

execute

on

transforming

the

company

into

an

integrated

energy

company.

U.S.-based

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

United

States

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.

U.S.-based

food

products

company

Kraft

Heinz

contributed

to

relative

performance

during

the

period.

The

management

team

is

pursuing

a

strategy

to

reinvigorate

certain

categories

and

brands

and

the

company

continues

to

prune

lower

growth

brands

to

position

it

for

better

growth

prospects

in

the

future.

Moreover,

the

company’s

balance

sheet

has

materially

improved

over

the

past

several

years,

affording

them

increasing

financial

flexibility

toward

value-creating

capital

allocation. 

During

the

12-month

period,

investments

that

detracted

from

relative

Fund

performance

included

Charter

Communications,

Elanco

Animal

Health

and

Western

Digital.

Charter

Communications,

a

U.S.-based

cable

company,

hampered

relative

results

for

the

year.

Its

financial

results

showed

weak

broadband

subscriber

growth

and

the

company

announced

in

December

that

capital

spending

would

be

higher

than

previous

forecasts

over

the

next

three

years,

reducing

free

cash

flow.

The

company

is

unlikely

to

see

revenue

growth

or

operating

expense

savings

to

offset

the

higher

capital

spending,

in

our

view.

Over

the

longer

term,

we

expect

to

see

improved

subscriber

growth

trends

driving

higher

revenue

and

free

cash

flow

growth.

We

anticipate

Charter’s

share

price

appreciation

will

depend

on

growth

in

subscribers,

revenue

and

earnings

before

interest,

taxes,

depreciation,

and

amortization

(EBITDA)

over

the

next

few

years.

Elanco

Animal

Health,

a

U.S.-based

animal

health

care

company,

detracted

from

relative

returns

as

the

company

faced

several

headwinds

that

impacted

its

business,

including

general

economic

weakness,

currency

headwinds,

a

slower

recovery

from

COVID-19

lockdowns

in

China,

supply-chain

problems,

and

negative

safety

publicity

for

its

Seresto

collar.

These

concerns,

along

with

higher

interest

rates,

led

to

significant

multiple

compression

for

Elanco,

which

disproportionately

impacted

the

company’s

equity

value

due

to

its

high

financial

leverage.

We

expect

business

Top

10

Holdings

12/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

JPMorgan

Chase

&

Co.

2.7%

Banks,

United

States

Kraft

Heinz

Co.

(The)

2.7%

Food

Products,

United

States

Tapestry,

Inc.

2.6%

Textiles,

Apparel

&

Luxury

Goods,

United

States

DR

Horton,

Inc.

2.6%

Household

Durables,

United

States

Parker-Hannifin

Corp.

2.6%

Machinery,

United

States

Johnson

Controls

International

plc

2.6%

Building

Products,

United

States

Schlumberger

Ltd.

2.6%

Energy

Equipment

&

Services,

United

States

CVS

Health

Corp.

2.4%

Health

Care

Providers

&

Services,

United

States

BlackRock,

Inc.

2.4%

Capital

Markets,

United

States

Willis

Towers

Watson

plc

2.4%

Insurance,

United

States

Franklin

Mutual

Shares

VIP

Fund

MS-6

Annual

Report

performance

to

improve

over

the

medium

term

with

better

execution,

increased

pricing,

and

a

focus

on

innovation

and

pipeline

progress.

In

addition,

management

is

committed

to

bringing

down

leverage

by

using

most

of

its

free

cash

flow

to

pay

down

debt.

Western

Digital,

a

U.S.-based

hard

drive

and

data

storage

company,

was

a

relative

detractor.

The

company’s

near-

term

outlook

was

much

weaker

than

analysts’

expectations

in

its

latest

quarter,

and

order

cuts

in

their

consumer-

focused

businesses

and

weaker

pricing

are

negatively

impacting

revenues

and

margins.

We

believe

the

tougher

macroeconomic

conditions

will

hinder

results

over

the

next

few

quarters.

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

December

31,

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

4

Fund

Expenses

Franklin

Mutual

Shares

VIP

Fund

MS-7

Annual

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

184/365

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

7/1/22

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

4

$1,000

$1,061.00

$5.06

$1,020.30

$4.96

0.97%

MS-8

Annual

Report

MS

P1

P2

P4

12/22

SUPPLEMENT

DATED

DECEMBER

1,

2022

TO

THE

PROSPECTUS

DATED

MAY

1,

2022,

OF

FRANKLIN

MUTUAL

SHARES

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

Effective

December

31,

2022,

the

prospectus

is

amended

as

follows:

I.

The

portfolio

management

team

under

the

“Fund

Summaries

–

Franklin

Mutual

Shares

VIP

Fund”

section

on

page

MS-S5

of

the

prospectus

is

replaced

with

the

following:

Christian

Correa,

CFA

President

of

Franklin

Mutual

and

portfolio

manager

of

the

Fund

since

2020.

Grace

Hoefig

Senior

Vice

President

of

Franklin

Mutual

and

portfolio

manager

of

the

Fund

since

October

2020.

II.

The

portfolio

management

section

under

the

“Fund

Details

–

Franklin

Mutual

Shares

VIP

Fund

–

Management”

section

on

page

MS-D8

of

the

prospectus

is

replaced

with

the

following:

Christian

Correa,

CFA

President

of

Franklin

Mutual

Mr.

Correa

has

been

a

co-lead

portfolio

manager

of

the

Fund

since

2020.

He

joined

Franklin

Templeton

in

2003.

Grace

Hoefig

Senior

Vice

President

of

Franklin

Mutual

Ms.

Hoefig

has

been

a

co-lead

portfolio

manager

of

the

Fund

since

2020.

She

joined

Franklin

Templeton

in

2008.

As

co-lead

portfolio

managers

of

the

Fund,

Mr.

Correa

and

Ms.

Hoefig

are

jointly

and

primarily

responsible

for

the

day-

to-day

management

of

the

Fund's

portfolio.

They

have

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.

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Mutual

Shares

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

MS-9

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$19.62

$16.93

$19.19

$17.71

$20.71

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.32

0.27

0.55

c

0.46

0.36

Net

realized

and

unrealized

gains

(losses)

...........

(1.99)

3.02

(1.68)

3.39

(2.04)

Total

from

investment

operations

....................

(1.67)

3.29

(1.13)

3.85

(1.68)

Less

distributions

from:

Net

investment

income

..........................

(0.40)

(0.60)

(0.50)

(0.42)

(0.55)

Net

realized

gains

.............................

(2.02)

—

(0.63)

(1.95)

(0.77)

Total

distributions

...............................

(2.42)

(0.60)

(1.13)

(2.37)

(1.32)

Net

asset

value,

end

of

year

.......................

$15.53

$19.62

$16.93

$19.19

$17.71

Total

return

d

...................................

(7.15)%

19.52%

(4.85)%

22.92%

(8.86)%

Ratios

to

average

net

assets

Expenses

e,f,g

...................................

0.66%

0.73%

0.73%

0.71%

0.71%

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

h

0.02%

0.01%

0.02%

0.01%

Net

investment

income

...........................

1.82%

1.44%

3.48%

c

2.35%

1.77%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$105,334

$116,861

$157,734

$158,431

$537,324

Portfolio

turnover

rate

............................

59.99%

47.31%

i

36.96%

38.50%

24.67%

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.

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

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).

h

Rounds

to

less

than

0.01%.

i

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

13.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Mutual

Shares

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MS-10

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$19.20

$16.59

$18.81

$17.40

$20.36

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.27

0.22

0.51

c

0.40

0.31

Net

realized

and

unrealized

gains

(losses)

...........

(1.95)

2.95

(1.65)

3.32

(2.00)

Total

from

investment

operations

....................

(1.68)

3.17

(1.14)

3.72

(1.69)

Less

distributions

from:

Net

investment

income

..........................

(0.34)

(0.56)

(0.45)

(0.36)

(0.50)

Net

realized

gains

.............................

(2.02)

—

(0.63)

(1.95)

(0.77)

Total

distributions

...............................

(2.36)

(0.56)

(1.08)

(2.31)

(1.27)

Net

asset

value,

end

of

year

.......................

$15.16

$19.20

$16.59

$18.81

$17.40

Total

return

d

...................................

(7.43)%

19.17%

(5.04)%

22.57%

(9.07)%

Ratios

to

average

net

assets

Expenses

e,f,g

...................................

0.91%

0.98%

0.98%

0.96%

0.96%

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

h

0.02%

0.01%

0.02%

0.01%

Net

investment

income

...........................

1.55%

1.17%

3.25%

c

2.10%

1.52%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,786,501

$2,517,899

$2,620,645

$2,931,753

$2,516,834

Portfolio

turnover

rate

............................

59.99%

47.31%

i

36.96%

38.50%

24.67%

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.

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

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).

h

Rounds

to

less

than

0.01%.

i

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

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.

Annual

Report

MS-11

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$19.39

$16.75

$18.99

$17.55

$20.53

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.26

0.20

0.49

c

0.38

0.29

Net

realized

and

unrealized

gains

(losses)

...........

(1.97)

2.98

(1.66)

3.36

(2.02)

Total

from

investment

operations

....................

(1.71)

3.18

(1.17)

3.74

(1.73)

Less

distributions

from:

Net

investment

income

..........................

(0.32)

(0.54)

(0.44)

(0.35)

(0.48)

Net

realized

gains

.............................

(2.02)

—

(0.63)

(1.95)

(0.77)

Total

distributions

...............................

(2.34)

(0.54)

(1.07)

(2.30)

(1.25)

Net

asset

value,

end

of

year

.......................

$15.34

$19.39

$16.75

$18.99

$17.55

Total

return

d

...................................

(7.47)%

19.06%

(5.17)%

22.44%

(9.16)%

Ratios

to

average

net

assets

Expenses

e,f,g

...................................

1.01%

1.08%

1.08%

1.06%

1.06%

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

h

0.02%

0.01%

0.02%

0.01%

Net

investment

income

...........................

1.47%

1.06%

3.13%

c

2.00%

1.42%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$99,603

$120,424

$116,704

$120,345

$105,047

Portfolio

turnover

rate

............................

59.99

%

47.31%

i

36.96%

38.50%

24.67%

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.

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

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).

h

Rounds

to

less

than

0.01%.

i

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

13.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments,

December

31,

2022

Franklin

Mutual

Shares

VIP

Fund

Annual

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

93.2%

Auto

Components

0.0%

†

a,b,c

International

Automotive

Components

Group

Brazil

LLC

........

Brazil

1,730,515

$

60,911

Automobiles

1.7%

General

Motors

Co.

....................................

United

States

997,366

33,551,392

Banks

10.9%

Bank

of

America

Corp.

.................................

United

States

1,380,714

45,729,248

First

Horizon

Corp.

....................................

United

States

695,096

17,029,852

ING

Groep

NV

.......................................

Netherlands

2,422,671

29,509,576

JPMorgan

Chase

&

Co.

.................................

United

States

402,339

53,953,660

b

SVB

Financial

Group

...................................

United

States

112,739

25,945,753

Wells

Fargo

&

Co.

.....................................

United

States

1,096,804

45,287,037

217,455,126

Building

Products

2.6%

Johnson

Controls

International

plc

.........................

United

States

798,897

51,129,408

Capital

Markets

2.4%

BlackRock,

Inc.

.......................................

United

States

66,895

47,403,804

Chemicals

1.6%

Ashland,

Inc.

.........................................

United

States

294,600

31,678,338

Consumer

Finance

1.7%

Bread

Financial

Holdings,

Inc.

............................

United

States

516,079

19,435,535

Capital

One

Financial

Corp.

.............................

United

States

156,163

14,516,913

33,952,448

Containers

&

Packaging

1.2%

International

Paper

Co.

.................................

United

States

664,644

23,016,622

Diversified

Financial

Services

2.0%

Voya

Financial,

Inc.

....................................

United

States

631,558

38,834,501

Diversified

Telecommunication

Services

0.3%

a,b,c

Windstream

Holdings,

Inc.

...............................

United

States

609,467

5,844,739

Electronic

Equipment,

Instruments

&

Components

2.1%

b

Flex

Ltd.

............................................

United

States

1,981,179

42,516,101

Energy

Equipment

&

Services

2.6%

Schlumberger

Ltd.

.....................................

United

States

950,004

50,787,214

Entertainment

3.8%

Activision

Blizzard,

Inc.

.................................

United

States

566,470

43,363,278

b

Walt

Disney

Co.

(The)

..................................

United

States

380,752

33,079,734

76,443,012

Equity

Real

Estate

Investment

Trusts

(REITs)

1.5%

Brixmor

Property

Group,

Inc.

.............................

United

States

1,306,872

29,626,788

Food

Products

2.7%

Kraft

Heinz

Co.

(The)

..................................

United

States

1,313,778

53,483,902

Health

Care

Equipment

&

Supplies

1.7%

Medtronic

plc

........................................

United

States

440,353

34,224,235

Health

Care

Providers

&

Services

5.9%

CVS

Health

Corp.

.....................................

United

States

512,554

47,764,907

Elevance

Health,

Inc.

..................................

United

States

72,710

37,298,049

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Mutual

Shares

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

MS-13

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Health

Care

Providers

&

Services

(continued)

Humana,

Inc.

........................................

United

States

61,977

$

31,744,000

116,806,956

Household

Durables

2.6%

DR

Horton,

Inc.

.......................................

United

States

588,282

52,439,457

Insurance

3.7%

Everest

Re

Group

Ltd.

.................................

United

States

79,159

26,223,002

Willis

Towers

Watson

plc

................................

United

States

192,950

47,191,711

73,414,713

Interactive

Media

&

Services

1.8%

b

Meta

Platforms,

Inc.,

A

.................................

United

States

303,489

36,521,866

IT

Services

5.7%

b

Fiserv,

Inc.

..........................................

United

States

433,626

43,826,580

Global

Payments,

Inc.

..................................

United

States

411,166

40,837,007

SS&C

Technologies

Holdings,

Inc.

.........................

United

States

561,101

29,210,918

113,874,505

Machinery

2.6%

Parker-Hannifin

Corp.

..................................

United

States

176,537

51,372,267

Media

3.4%

b

Charter

Communications,

Inc.,

A

..........................

United

States

109,010

36,965,291

Comcast

Corp.,

A

.....................................

United

States

887,231

31,026,468

67,991,759

Metals

&

Mining

1.2%

Alcoa

Corp.

..........................................

United

States

506,080

23,011,458

Oil,

Gas

&

Consumable

Fuels

4.8%

BP

plc

..............................................

United

Kingdom

5,196,046

29,979,642

Chevron

Corp.

.......................................

United

States

172,150

30,899,204

Williams

Cos.,

Inc.

(The)

................................

United

States

1,072,739

35,293,113

96,171,959

Pharmaceuticals

8.0%

b

Elanco

Animal

Health,

Inc.

...............................

United

States

2,041,057

24,941,717

Eli

Lilly

&

Co.

........................................

United

States

64,599

23,632,898

GSK

plc

............................................

United

States

2,211,423

38,218,961

Merck

&

Co.,

Inc.

.....................................

United

States

252,040

27,963,838

Novartis

AG,

ADR

.....................................

Switzerland

488,139

44,283,970

159,041,384

Professional

Services

1.8%

KBR,

Inc.

...........................................

United

States

695,116

36,702,125

Real

Estate

Management

&

Development

2.3%

b

CBRE

Group,

Inc.,

A

...................................

United

States

593,625

45,685,380

Software

3.7%

b

Avaya

Holdings

Corp.

..................................

United

States

116

23

Gen

Digital,

Inc.

......................................

United

States

1,404,750

30,103,793

Oracle

Corp.

.........................................

United

States

534,295

43,673,273

73,777,089

Specialty

Retail

0.0%

a,b,c

Wayne

Services

Legacy,

Inc.

.............................

United

States

2,039

—

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Mutual

Shares

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MS-14

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Technology

Hardware,

Storage

&

Peripherals

0.9%

b

Western

Digital

Corp.

..................................

United

States

548,355

$

17,300,600

Textiles,

Apparel

&

Luxury

Goods

2.6%

Tapestry,

Inc.

........................................

United

States

1,380,395

52,565,442

Tobacco

1.4%

British

American

Tobacco

plc

.............................

United

Kingdom

718,730

28,430,455

Wireless

Telecommunication

Services

2.0%

b

T-Mobile

US,

Inc.

.....................................

United

States

290,605

40,684,700

Total

Common

Stocks

(Cost

$1,539,485,226)

....................................

1,855,800,656

Warrants

Warrants

0.0%

†

Diversified

Telecommunication

Services

0.0%

†

a,b,c

Windstream

Holdings,

Inc.,

9/21/55

........................

United

States

34,368

329,586

Total

Warrants

(Cost

$436,130)

................................................

329,586

Principal

Amount

*

Corporate

Bonds

3.8%

Airlines

0.2%

d

American

Airlines,

Inc.

,

Senior

Secured

Note

,

144A,

11.75

%

,

7/15/25

United

States

2,592,000

2,785,957

Diversified

Telecommunication

Services

0.1%

Frontier

Communications

Holdings

LLC

,

Secured

Note

,

5.875

%

,

11/01/29

..........................................

United

States

2,949,278

2,285,619

Hotels,

Restaurants

&

Leisure

0.1%

d

Carnival

Holdings

Bermuda

Ltd.

,

Senior

Note

,

144A,

10.375

%

,

5/01/28

...........................................

United

States

2,650,200

2,725,426

Media

0.8%

d

DISH

Network

Corp.

,

Senior

Secured

Note

,

144A,

11.75

%

,

11/15/27

United

States

14,352,000

14,799,065

Oil,

Gas

&

Consumable

Fuels

0.7%

d

Citgo

Holding,

Inc.

,

Senior

Secured

Note

,

144A,

9.25

%

,

8/01/24

..

United

States

13,861,000

13,857,284

Pharmaceuticals

0.1%

d

Bausch

Health

Americas,

Inc.

,

Senior

Note

,

144A,

8.5

%

,

1/31/27

..

United

States

3,434,000

1,801,923

d

Bausch

Health

Cos.,

Inc.

,

Senior

Note

,

144A,

9

%

,

12/15/25

......

United

States

340,000

268,848

2,070,771

Software

0.7%

d

Veritas

US,

Inc.

/

Veritas

Bermuda

Ltd.

,

Senior

Secured

Note

,

144A,

7.5

%

,

9/01/25

......................................

United

States

21,124,000

14,593,913

Specialty

Retail

1.1%

d

Staples,

Inc.

,

Senior

Note,

144A,

10.75%,

4/15/27

.....................

United

States

21,435,000

15,469,211

Senior

Secured

Note,

144A,

7.5%,

4/15/26

................

United

States

6,845,000

5,905,455

21,374,666

Total

Corporate

Bonds

(Cost

$85,490,862)

......................................

74,492,701

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Mutual

Shares

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

MS-15

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

e

Senior

Floating

Rate

Interests

1.2%

f

Software

1.2%

Banff

Guarantor,

Inc.

,

Second

Lien,

Initial

Term

Loan

,

9.884

%

,

(

1-month

USD

LIBOR

+

5.5

%

),

2/27/26

...................

United

States

6,640,700

$

6,140,589

Quest

Software

US

Holdings,

Inc.

,

Second

Lien,

Initial

CME

Term

Loan

,

11.594

%

,

(

3-month

SOFR

+

7.5

%

),

2/01/30

...........

United

States

13,032,127

8,041,930

Veritas

US,

Inc.

,

2021

Dollar

Term

Loan,

B

,

9.73

%

,

(

3-month

USD

LIBOR

+

5

%

),

9/01/25

................................

United

States

14,791,675

10,510,003

24,692,522

a

a

a

a

a

a

Total

Senior

Floating

Rate

Interests

(Cost

$34,188,302)

..........................

24,692,522

Asset-Backed

Securities

0.1%

Airlines

0.1%

American

Airlines

Pass-Through

Trust

,

2013-2

,

A

,

4.95

%

,

1/15/23

.

.

United

States

1,808,416

1,806,000

Total

Asset-Backed

Securities

(Cost

$1,781,290)

................................

1,806,000

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

$1,661,381,810)

.............................

1,957,121,465

a

Short

Term

Investments

1.9%

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

U.S.

Government

and

Agency

Securities

1.9%

h

FHLB,

1/03/23

.......................................

United

States

36,200,000

36,200,000

h,i

U.S.

Treasury

Bills,

6/01/23

..............................

United

States

2,000,000

1,962,771

Total

U.S.

Government

and

Agency

Securities

(Cost

$38,154,155)

.................

38,162,771

Total

Short

Term

Investments

(Cost

$38,154,155

)

................................

38,162,771

a

Total

Investments

(Cost

$1,699,535,965)

100.2%

................................

$1,995,284,236

Other

Assets,

less

Liabilities

(0.2)%

...........................................

(3,846,347)

Net

Assets

100.0%

...........................................................

$1,991,437,889

*

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.

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

December

31,

2022,

the

aggregate

value

of

these

securities

was

$72,207,082,

representing

3.6%

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.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Mutual

Shares

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MS-16

At

December

3

1

,

2022,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1(c)

. 

At

December

3

1

,

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-

32

.

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

December

31,

2022,

the

aggregate

value

of

these

securities

pledged

amounted

to

$1,372,958,

representing

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

$

5,242,575

3/13/23

$

(68,456)

Foreign

Exchange

GBP/USD

...................

Short

131

9,893,775

3/13/23

179,802

Total

Futures

Contracts

......................................................................

$111,346

*

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

3,285,000

3,306,161

1/09/23

$

211,438

$

—

Euro

.............

BOFA

Sell

449,352

459,463

1/09/23

—

(21,705)

Euro

.............

HSBK

Buy

83,412

81,461

1/09/23

7,857

—

Euro

.............

UBSW

Buy

128,142

136,509

1/09/23

706

—

Euro

.............

UBSW

Sell

16,281,669

15,979,987

1/09/23

—

(1,454,531)

British

Pound

......

BOFA

Buy

759,782

904,086

1/17/23

14,761

—

British

Pound

......

BOFA

Sell

2,462,199

3,024,867

1/17/23

48,543

(1,349)

British

Pound

......

UBSW

Buy

604,441

718,061

1/17/23

12,922

—

British

Pound

......

UBSW

Sell

148,573

174,544

1/17/23

711

(5,845)

Total

Forward

Exchange

Contracts

...................................................

$296,938

$(1,483,430)

Net

unrealized

appreciation

(depreciation)

............................................

$(1,186,492)

*

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

December

31,

2022

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

MS-17

Franklin

Mutual

Shares

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$1,699,535,965

Value

-

Unaffiliated

issuers

..................................................................

$1,995,284,236

Cash

....................................................................................

422,528

Foreign

currency,

at

value

(cost

$219,431)

........................................................

218,114

Receivables:

Investment

securities

sold

...................................................................

6,877,649

Capital

shares

sold

........................................................................

29,685

Dividends

and

interest

.....................................................................

4,882,473

Deposits

with

brokers

for:

Futures

contracts

........................................................................

494,680

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

296,938

Total

assets

..........................................................................

2,008,506,303

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

8,030,779

Capital

shares

redeemed

...................................................................

5,570,098

Management

fees

.........................................................................

1,165,732

Distribution

fees

..........................................................................

417,815

Trustees'

fees

and

expenses

.................................................................

1,016

Variation

margin

on

futures

contracts

...........................................................

1,475

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

1,483,430

Accrued

expenses

and

other

liabilities

...........................................................

398,069

Total

liabilities

.........................................................................

17,068,414

Net

assets,

at

value

.................................................................

$1,991,437,889

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$1,503,201,465

Total

distributable

earnings

(losses)

.............................................................

488,236,424

Net

assets,

at

value

.................................................................

$1,991,437,889

Franklin

Mutual

Shares

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$105,333,523

Shares

outstanding

........................................................................

6,783,678

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$15.53

Class

2:

Net

assets,

at

value

.......................................................................

$1,786,501,359

Shares

outstanding

........................................................................

117,806,225

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$15.16

Class

4:

Net

assets,

at

value

.......................................................................

$99,603,007

Shares

outstanding

........................................................................

6,492,336

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$15.34

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2022

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

MS-18

Franklin

Mutual

Shares

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$1,077,688)

Unaffiliated

issuers

........................................................................

$44,032,526

Interest:

Unaffiliated

issuers

........................................................................

10,161,864

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

1,936

Non-controlled

affiliates

(Note

3

e

)

.............................................................

2,205

Other

income

(Note

1

g

)

......................................................................

1,261,026

Total

investment

income

...................................................................

55,459,557

Expenses:

Management

fees

(Note

3

a

)

...................................................................

15,173,189

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

5,088,712

    Class

4

................................................................................

371,369

Custodian

fees

(Note

4

)

......................................................................

39,057

Reports

to

shareholders

fees

..................................................................

(678,538)

Professional

fees

...........................................................................

136,035

Trustees'

fees

and

expenses

..................................................................

26,128

Dividends

on

securities

sold

short

..............................................................

36,916

Other

....................................................................................

208,260

Total

expenses

.........................................................................

20,401,128

Expense

reductions

(Note

4

)

...............................................................

(1,018)

Expenses

waived/paid

by

affiliates

(Not

e

3e)

...................................................

(6,292)

Net

expenses

.........................................................................

20,393,818

Net

investment

income

................................................................

35,065,739

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

178,674,072

Foreign

currency

transactions

................................................................

(240,362)

Forward

exchange

contracts

.................................................................

7,699,247

Futures

contracts

.........................................................................

1,422,605

Securities

sold

short

.......................................................................

(14,311,989)

Net

realized

gain

(loss)

..................................................................

173,243,573

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(423,955,377)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

152,994

Forward

exchange

contracts

.................................................................

(2,840,902)

Futures

contracts

.........................................................................

459,460

Securities

sold

short

.......................................................................

24,435,973

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(401,747,852)

Net

realized

and

unrealized

gain

(loss)

............................................................

(228,504,279)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(193,438,540)

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.

Annual

Report

MS-19

Franklin

Mutual

Shares

VIP

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$35,065,739

$34,124,197

Net

realized

gain

(loss)

.................................................

173,243,573

421,824,240

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(401,747,852)

64,801,158

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(193,438,540)

520,749,595

Distributions

to

shareholders:

Class

1

.............................................................

(13,963,701)

(3,422,611)

Class

2

.............................................................

(244,802,646)

(73,136,481)

Class

4

.............................................................

(13,410,832)

(3,309,278)

Total

distributions

to

shareholders

..........................................

(272,177,179)

(79,868,370)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

10,288,541

(64,966,663)

Class

2

.............................................................

(309,666,229)

(501,789,098)

Class

4

.............................................................

1,247,512

(14,024,839)

Total

capital

share

transactions

............................................

(298,130,176)

(580,780,600)

Net

increase

(decrease)

in

net

assets

...................................

(763,745,895)

(139,899,375)

Net

assets:

Beginning

of

year

.......................................................

2,755,183,784

2,895,083,159

End

of

year

...........................................................

$1,991,437,889

$2,755,183,784

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

Franklin

Mutual

Shares

VIP

Fund

MS-20

Annual

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.

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

Codification

Topic

946,

Financial

Services

-

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

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

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

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.

Investments

in repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

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,

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

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MS-21

Annual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

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

December

31,

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MS-22

Annual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

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

December

31,

2022

the

Fund

had

OTC

derivatives

in

a

net

liability

position

of

$1,446,037

and

the

aggregate

value

of

collateral

pledged

for

such

contracts

was

$1,372,958.

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

December

31,

2022, the

Fund

received

$270,380

in

U.S.

Treasury

Bonds

and

Notes

as

collateral

for

derivatives.

The

Fund

entered

into

exchange

traded

futures

contracts

primarily

to

manage

exposure

to

certain

foreign

currencies.

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

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.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Derivative

Financial

Instruments

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MS-23

Annual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

Such

dividends

and/or

interest

and

any

security

borrowing

fees

are

recorded

as

an

expense

to

the

Fund.

At

December

31,

2022,

the

Fund

had

no

securities

sold

short. 

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

December

31,

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

December

31,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Securities

Sold

Short

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MS-24

Annual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

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.

Facility

fees

are

recognized

as

income

over

the

expected

term

of

the

loan.

Dividend

income

and

dividends

declared

on

securities

sold

short

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

MS-25

Annual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

December

31,

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:

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

393,296

$6,327,171

318,693

$6,213,133

Shares

issued

in

reinvestment

of

distributions

..........

997,407

13,963,701

179,100

3,422,611

Shares

redeemed

in-kind

(Note

13

)

..................

—

—

(3,060,698)

(59,532,727)

Shares

redeemed

...............................

(564,521)

(10,002,331)

(794,758)

(15,069,680)

Net

increase

(decrease)

..........................

826,182

$10,288,541

(3,357,663)

$(64,966,663)

Class

2

Shares:

Shares

sold

...................................

6,305,441

$105,384,367

9,578,231

$183,303,412

Shares

issued

in

reinvestment

of

distributions

..........

17,894,930

244,802,646

3,908,951

73,136,481

Shares

redeemed

in-kind

(Note

13

)

..................

—

—

(13,941,656)

(265,295,778)

Shares

redeemed

...............................

(37,562,712)

(659,853,242)

(26,387,039)

(492,933,213)

Net

increase

(decrease)

..........................

(13,362,341)

$(309,666,229)

(26,841,513)

$(501,789,098)

Class

4

Shares:

Shares

sold

...................................

365,503

$6,240,405

337,245

$6,316,446

Shares

issued

in

reinvestment

of

distributions

..........

968,991

13,410,832

175,002

3,309,278

Shares

redeemed

...............................

(1,051,773)

(18,403,725)

(1,268,725)

(23,650,563)

Net

increase

(decrease)

..........................

282,721

$1,247,512

(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

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MS-26

Annual

Report

Franklin

Mutual

Shares

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

year

ended

December

31,

2022,

the

gross

effective

investment

management

fee

rate

was

0.675%

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

year

ended

December

31,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

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

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MS-27

Annual

Report

Franklin

Mutual

Shares

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

year

ended

December

31,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021,

was

as

follows:

At

December

31,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

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

and

wash

sales.

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

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,

3.782%

$—

$47,640,000

$(47,640,000)

$—

$—

$—

—

$2,205

Total

Affiliated

Securities

...

$—

$47,640,000

$(47,640,000)

$—

$—

$—

$2,205

2022

2021

Distributions

paid

from:

Ordinary

income

..........................................................

$92,274,164

$79,868,370

Long

term

capital

gain

......................................................

179,903,015

—

$272,177,179

$79,868,370

Cost

of

investments

..........................................................................

$1,719,854,814

Unrealized

appreciation

........................................................................

$398,713,324

Unrealized

depreciation

........................................................................

(124,359,048)

Net

unrealized

appreciation

(depreciation)

..........................................................

$274,354,276

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$38,347,572

Undistributed

long

term

capital

gains

..............................................................

175,521,979

Total

distributable

earnings

.....................................................................

$213,869,551

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MS-28

Annual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities

and

securities

sold

short)

for

the

year

ended

December

31,

2022,

aggregated $1,323,715,467

and

$1,810,341,397,

respectively.

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

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

December

31,

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.

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

December

31,

2022,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MS-29

Annual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

11.

Other

Derivative

Information

At

December

31,

2022,

investments

in

derivative

contracts

are

reflected

in

the

Statement of

Assets

and

Liabilities

as

follows:

For

the

year

ended

December

31,

2022,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

year

ended

December

31,

2022,

the

average

month

end

notional

amount

of

futures

contracts

represented

$17,029,694.

The

average

month

end

contract

value

of

forward

exchange

contracts

was

$77,611,285.

See

Note

1(c)

regarding

derivative

financial

instruments.

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

$

60,911

2,039

Wayne

Services

Legacy,

Inc.

...................

1/22/20

—

—

609,467

Windstream

Holdings,

Inc.

.....................

9/21/20

4,827,676

5,844,739

34,368

Windstream

Holdings,

Inc.,

9/21/55

..............

9/21/20

436,130

329,586

Total

Restricted

Securities

(Value

is

0.3%

of

Net

Assets)

..............

$6,413,047

$6,235,236

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

$

179,802

a

Variation

margin

on

futures

contracts

$

68,456

a

Unrealized

appreciation

on

OTC

forward

exchange

contracts

296,938

Unrealized

depreciation

on

OTC

forward

exchange

contracts

1,483,430

Total

....................

$476,740

$1,551,886

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

year

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

Year

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Year

Franklin

Mutual

Shares

VIP

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Futures

contracts

$1,422,605

Futures

contracts

$459,460

Forward

exchange

contracts

7,699,247

Forward

exchange

contracts

(2,840,902)

Total

.......................

$9,121,852

$(2,381,442)

10.

Restricted

Securities

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MS-30

Annual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

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

matured

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.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

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

year

ended

December

31,

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

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

December

31,

2022,

in

valuing

the

Fund's assets

and

liabilities

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

......................

$

—

$

—

$

60,911

$

60,911

Automobiles

..........................

33,551,392

—

—

33,551,392

Banks

...............................

187,945,550

29,509,576

—

217,455,126

Building

Products

......................

51,129,408

—

—

51,129,408

Capital

Markets

........................

47,403,804

—

—

47,403,804

Chemicals

...........................

31,678,338

—

—

31,678,338

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

MS-31

Annual

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 year.

Level

1

Level

2

Level

3

Total

Franklin

Mutual

Shares

VIP

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Consumer

Finance

.....................

$

33,952,448

$

—

$

—

$

33,952,448

Containers

&

Packaging

.................

23,016,622

—

—

23,016,622

Diversified

Financial

Services

.............

38,834,501

—

—

38,834,501

Diversified

Telecommunication

Services

.....

—

—

5,844,739

5,844,739

Electronic

Equipment,

Instruments

&

Components

........................

42,516,101

—

—

42,516,101

Energy

Equipment

&

Services

.............

50,787,214

—

—

50,787,214

Entertainment

.........................

76,443,012

—

—

76,443,012

Equity

Real

Estate

Investment

Trusts

(REITs)

.

29,626,788

—

—

29,626,788

Food

Products

........................

53,483,902

—

—

53,483,902

Health

Care

Equipment

&

Supplies

.........

34,224,235

—

—

34,224,235

Health

Care

Providers

&

Services

..........

116,806,956

—

—

116,806,956

Household

Durables

....................

52,439,457

—

—

52,439,457

Insurance

............................

73,414,713

—

—

73,414,713

Interactive

Media

&

Services

..............

36,521,866

—

—

36,521,866

IT

Services

...........................

113,874,505

—

—

113,874,505

Machinery

............................

51,372,267

—

—

51,372,267

Media

...............................

67,991,759

—

—

67,991,759

Metals

&

Mining

.......................

23,011,458

—

—

23,011,458

Oil,

Gas

&

Consumable

Fuels

.............

66,192,317

29,979,642

—

96,171,959

Pharmaceuticals

.......................

120,822,423

38,218,961

—

159,041,384

Professional

Services

...................

36,702,125

—

—

36,702,125

Real

Estate

Management

&

Development

....

45,685,380

—

—

45,685,380

Software

.............................

73,777,089

—

—

73,777,089

Specialty

Retail

........................

—

—

—

a

—

Technology

Hardware,

Storage

&

Peripherals

.

17,300,600

—

—

17,300,600

Textiles,

Apparel

&

Luxury

Goods

..........

52,565,442

—

—

52,565,442

Tobacco

.............................

—

28,430,455

—

28,430,455

Wireless

Telecommunication

Services

.......

40,684,700

—

—

40,684,700

Warrants

..............................

—

—

329,586

329,586

Corporate

Bonds

........................

—

74,492,701

—

74,492,701

Senior

Floating

Rate

Interests

...............

—

24,692,522

—

24,692,522

Asset-Backed

Securities

..................

—

1,806,000

—

1,806,000

Companies

in

Liquidation

..................

—

—

—

a

—

Short

Term

Investments

...................

—

38,162,771

—

38,162,771

Total

Investments

in

Securities

...........

$1,723,756,372

$265,292,628

b

$6,235,236

$1,995,284,236

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

296,938

$

—

$

296,938

Futures

contracts

........................

179,802

—

—

179,802

Total

Other

Financial

Instruments

.........

$179,802

$296,938

$—

$476,740

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

1,483,430

$

—

$

1,483,430

Futures

contracts

........................

68,456

—

—

68,456

Total

Other

Financial

Instruments

.........

$68,456

$1,483,430

$—

$1,551,886

a

Includes

financial

instruments

determined

to

have

no

value

at

December

31,

2022.

b

Includes

foreign

securities

valued

at

$126,138,634,

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

MS-32

Annual

Report

Franklin

Mutual

Shares

VIP

Fund

(continued)

15.

New

Accounting

Pronouncements

In

March

2020,

the

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

and

December

2022,

the

FASB

issued

ASU

No.

2021-01

and

ASU

No.

2022-06,

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,

2024.

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

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

will

not

have

a

material

impact

on

the

financial

statements.

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

other

than

those

already

disclosed

in

the

financial

statements

.

Abbreviations

Counterparty

BOFA

Bank

of

America

N.A.

HSBK

HSBC

Bank

plc

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

FRN

Floating

Rate

Note

LIBOR

London

Inter-Bank

Offered

Rate

SOFR

Secured

Overnight

Financing

Rate

Franklin

Templeton

Variable

Insurance

Products

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

MS-33

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Templeton

Variable

Insurance

Products

Trust

and

Shareholders

of

Franklin

Mutual

Shares

VIP

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Franklin

Mutual

Shares

VIP

Fund

(one

of

the

funds

constituting

Franklin

Templeton

Variable

Insurance

Products

Trust,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2022,

the

related

statement

of

operations

for

the

year

ended

December

31,

2022,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2022,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Templeton

Variable

Insurance

Products

Trust

Tax

Information

(unaudited)

MS-34

Annual

Report

Franklin

Mutual

Shares

VIP

Fund

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2022:

Note

(1)

-

The

Law

varies

in

each

state

as

to

whether

and

what

percentage

of

dividend

income

attributable

to

Federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

consult

with

their

tax

advisors

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

taxes.

Pursuant

to:

Amount

Reported

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$179,903,015

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$26,232,472

Interest

Earned

from

Federal

Obligations

Note

(1)

$547,284

FRD-1

Annual

Report

Franklin

Rising

Dividends

VIP

Fund

This

annual

report

for

Franklin

Rising

Dividends

VIP

Fund

covers

the

fiscal

year

ended

December

31,

2022

.

Class

4

Performance

Summary

as

of

December

31,

2022

Average

annual

total

return

of

Class

4

shares*

represents

the

average

annual

change

in

value,

assuming

reinvestment

of

dividends

and

capital

gains.

Average

returns

smooth

out

variations

in

returns,

which

can

be

significant;

they

are

not

the

same

as

year-by-year

results.

*The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Performance

reflects

the

Fund’s

Class

4

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.

Share

Class

Average

Annual

Total

Return

–

4

1-Year

-10.68%

5-Year

+9.92%

10-Year

+11.74%

FRD-2

Annual

Report

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

(12/31/12–12/31/22)

The

graph

below

shows

the

change

in

value

of

a

hypothetical

$10,000

investment

in

the

Fund

over

the

indicated

period

and

includes

reinvestment

of

any

income

or

distributions.

The

Fund’s

performance*

is

compared

to

the

performance

of

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

).

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Important

Notes

to

Performance

Information

preceding

the

Fund

Summaries.

**Source:

FactSet.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

FRD-3

Annual

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.

The

Fund

may

invest

up

to

25%

of

its

total

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.

Value

securities

may

not

increase

in

price

as

anticipated

or

may

decline

further

in

value.

While

smaller

and

midsized

companies

may

offer

substantial

opportunities

for

capital

growth,

they

also

involve

heightened

risks

and

should

be

considered

speculative.

Historically,

smaller-

and

midsized

company

securities

have

been

more

volatile

in

price

than

larger

company

securities,

especially

over

the

short

term.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

one-year

total

return

in

the

Performance

Summary.

In

comparison,

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

)

posted

a

-18.11%

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

S&P

500

®

,

posted

a

-18.11%

total

return

for

the

12

months

ended

December

31,

2022.

1

High

inflation,

rising

interest

rates

and

geopolitical

instability

contributed

to

a

sharp

decline

in

equity

prices

and

contracting

economic

growth

in

the

first

half

of

the

reporting

period.

Nevertheless,

consumer

spending

continued

to

rise,

but

deteriorating

financial

conditions

and

investors’

expectations

for

slower

growth

continued

to

weigh

on

equity

markets.

Inflation

increased

during

the

first

half

of

the

period,

reaching

9.1%

in

June

2022,

the

highest

annual

rate

since

1981.

Continued

supply-chain

disruptions,

strong

consumer

Portfolio

Composition

12/31/22

%

of

Total

Net

Assets

Software

10.6%

Chemicals

9.5%

Health

Care

Equipment

&

Supplies

9.2%

Semiconductors

&

Semiconductor

Equipment

5.4%

IT

Services

5.4%

Aerospace

&

Defense

4.4%

Oil,

Gas

&

Consumable

Fuels

3.7%

Specialty

Retail

3.6%

Health

Care

Providers

&

Services

3.2%

Pharmaceuticals

3.1%

Building

Products

2.8%

Household

Products

2.8%

Hotels,

Restaurants

&

Leisure

2.4%

Industrial

Conglomerates

2.4%

Other*

27.2%

Short-Term

Investments

&

Other

Net

Assets

4.3%

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

Rising

Dividends

VIP

Fund

FRD-4

Annual

Report

demand,

and

volatile

energy

prices

drove

inflation

higher.

Russia’s

invasion

of

Ukraine

also

disrupted

financial

markets

and

led

to

a

rise

in

oil

and

commodity

prices

in

the

first

half

of

the

reporting

period.

Inflation

remained

elevated

but

abated

somewhat

in

the

latter

half

of

the

period,

decreasing

to

an

annual

rate

of

7.1%

in

November

2022.

The

labor

market

remained

strong

amid

the

high

level

of

nominal

growth,

which

drove

the

U.S.

unemployment

rate

down

to

3.5%

in

December

2022.

Wages

also

climbed

at

the

fastest

rate

in

decades,

which

added

to

some

investors’

inflation

concerns.

U.S.

gross

domestic

product

grew

in

the

second

half

of

2022

after

contracting

in

the

first

half

of

the

year.

Rising

interest

rates

translated

to

higher

borrowing

costs

for

individuals

and

businesses,

which

dampened

economic

activity,

especially

in

the

housing

and

financial

markets.

In

the

second

half

of

the

period,

rising

consumer

spending

and

increased

exports

amid

declining

inflation

led

to

solid

economic

growth.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

undertook

a

rapid

shift

toward

restrictive

monetary

policy,

starting

in

March

2022

with

its

first

rate

hike

since

2018.

Thereafter,

the

Fed

raised

the

federal

funds

rate

at

each

of

its

six

subsequent

meetings

to

end

the

period

at

a

range

of

4.25%–4.50%.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings

and

anticipated

additional

interest-rate

increases

at

future

meetings

to

curtail

inflation.

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;

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;

attractive

prices,

either

in

the

lower

half

of

the

stock's

price/

earnings

ratio

range

for

the

past

10

years,

or

less

than

the

price/earnings

ratio

of

the

S&P

500

®

.

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

12-month

period

through

December

31,

2022,

the

Franklin

Rising

Dividends

VIP

Fund

performed

significantly

better

than

its

overall

benchmark

index

during

a

period

of

declining

stock

prices.

Stock

selection

and

underweights

in

consumer

discretionary

and

information

technology

(IT)

were

among

the

largest

sector-level

contributors.

A

lack

of

exposure

to

the

embattled

communication

services

sector

also

boosted

returns,

while

health

care

and

energy

detracted

from

performance.

Individual

company

contributors

to

positive

performance

relative

to

the

Fund’s

benchmark

index

included

Raytheon

Technologies,

Apple

and

Air

Products

and

Chemicals.

Shares

of

defense

contractor

Raytheon

rallied

during

the

12-month

reporting

period,

buoyed

by

growing

department

of

defense

budgets

as

well

as

additional

demand

for

U.S.-made

defense

systems

to

assist

Ukraine

in

its

defense

against

the

Russian

invasion.

We

believe

demand

for

Raytheon’s

missile

defense

systems

will

continue,

while

there

could

be

some

pressure

on

its

commercial

air

division

if

a

recessionary

environment

were

to

emerge.

In

IT,

an

underweighted

positioning

in

consumer

electronics

giant

Apple

supported

relative

results.

Its

shares

lost

value

and

significantly

underperformed

the

benchmark

index

during

the

reporting

period,

based

on

concerns

that

rising

COVID-19

cases

in

China

would

negatively

impact

production

of

its

new

iPhone

14.

Shares

of

Air

Products

and

Chemicals,

whose

principal

business

is

selling

gases

and

chemicals

for

industrial

uses,

rallied

in

the

materials

sector

after

the

company

posted

resilient

fiscal

fourth-quarter

results.

The

company

overcame

Top

10

Holdings

12/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Microsoft

Corp.

7.1%

Software,

United

States

Linde

plc

3.6%

Chemicals,

United

Kingdom

Roper

Technologies,

Inc.

3.4%

Software,

United

States

Stryker

Corp.

3.0%

Health

Care

Equipment

&

Supplies,

United

States

Accenture

plc

3.0%

IT

Services,

United

States

Raytheon

Technologies

Corp.

2.8%

Aerospace

&

Defense,

United

States

Analog

Devices,

Inc.

2.8%

Semiconductors

&

Semiconductor

Equipment,

United

States

UnitedHealth

Group,

Inc.

2.7%

Health

Care

Providers

&

Services,

United

States

Air

Products

and

Chemicals,

Inc.

2.7%

Chemicals,

United

States

Texas

Instruments,

Inc.

2.7%

Semiconductors

&

Semiconductor

Equipment,

United

States

Franklin

Rising

Dividends

VIP

Fund

FRD-5

Annual

Report

concerns

late

in

the

reporting

period

about

its

ability

to

manage

cost

inflation

in

Europe

and

whether

continued

lockdowns

in

China

would

hurt

results.

Additionally,

the

growth

pipeline

in

the

United

States

looks

excellent,

in

our

view,

as

the

company

continues

to

announce

large

projects

in

areas

such

as

carbon-free

hydrogen.

In

contrast,

some

companies

that

hindered

relative

performance

included

West

Pharmaceutical

Services,

Microsoft

and

NIKE.

Shares

of

drug

packaging

and

delivery

company

West

Pharmaceutical

Services

declined

during

the

period

as

sales

in

its

contract

manufacturing

business

were

softer

in

2021.

Its

shares

continued

to

decline

through

the

end

of

the

reporting

period

after

the

company

reported

a

year-over-year

decline

in

third-quarter

net

sales.

The

company

lowered

its

full-year

2022

guidance

during

the

year

as

management

noted

decreasing

demand

for

COVID-19-related

products.

We

remain

constructive

on

the

company,

however,

given

its

potential

to

drive

customers

to

higher-margin

services

and

build

out

its

international

presence

as

emerging

markets

move

toward

more

stringent

pharmaceutical

standards.

Shares

of

enterprise

software

company

Microsoft

have

fallen

from

record-high

levels

in

late

2021,

pressured

by

concerns

of

a

potential

recession,

persistent

inflation,

rising

interest

rates

and

a

more

hawkish

Fed—a

dynamic

pressuring

technology

stocks

in

general.

Supply-chain

issues,

exacerbated

by

COVID-19

lockdowns

in

China,

a

key

chip

supplier,

also

impacted

investor

sentiment.

Microsoft

reduced

guidance

in

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.

Sportswear

manufacturer

NIKE

hindered

performance,

pressured

by

supply-chain

disruptions

and

production

shortfalls,

as

well

as

softer

market

conditions

in

China.

In

June

2022,

NIKE

lowered

guidance

amid

margin

pressures

and

uncertainty

surrounding

China.

More

recently,

the

company

felt

the

combined

impact

of

supply-chain

issues

and

sharply

rising

inflation

as

inventories

surged,

driving

markdowns

that

lowered

earnings.

We

continue

to

believe

that

NIKE’s

strong

brand

and

direct-to-consumer

digital

strategy

will

likely

help

it

maintain

market

share

and

pricing

advantages

over

an

increasingly

competitive

field.

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

December

31,

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

4

Fund

Expenses

Franklin

Rising

Dividends

VIP

Fund

FRD-6

Annual

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

184/365

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

7/1/22

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

4

$1,000

$1,085.40

$5.12

$1,020.30

$4.96

0.97%

FRD-7

Annual

Report

GOF

VIP

P1

P2

P4

P5

12/22

SUPPLEMENT

DATED

DECEMBER

23,

2022

TO

THE

CURRENTLY

EFFECTIVE

PROSPECTUSES

OF

EACH

FUND

LISTED

BELOW

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

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

TEMPLETON

DEVELOPING

MARKETS

VIP

FUND

TEMPLETON

FOREIGN

VIP

FUND

TEMPLETON

GLOBAL

BOND

VIP

FUND

TEMPLETON

GROWTH

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

I.

For

Franklin

Allocation

VIP

Fund,

Franklin

Global

Real

Estate

VIP

Fund,

Franklin

Income

VIP

Fund,

Franklin

Strategic

Income

VIP

Fund

and

Franklin

VolSmart

Allocation

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-

focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-

term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

II.

For

Franklin

Dynatech

VIP

Fund,

Franklin

Growth

and

Income

VIP

Fund,

Franklin

Large

Cap

Growth

VIP

Fund,

Franklin

Rising

Dividends

VIP

Fund,

Franklin

Small-Mid

Cap

Growth

VIP

Fund,

Templeton

Developing

Markets

VIP

Fund,

Templeton

Global

Bond

VIP

Fund,

Templeton

Foreign

VIP

Fund

and

Templeton

Growth

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

FRD-8

Annual

Report

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

In

certain

circumstances,

there

may

be

times

when

not

every

investment

is

assessed

for

ESG

factors

and,

when

they

are,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

III.

For

Franklin

U.S.

Government

Securities

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

Social

and

Governance

Considerations

Social

and/or

governance

considerations

are

not

the

only

factors

considered

by

the

investment

manager

and

may

not

be

a

determinative

factor

in

the

investment

manager’s

selection

of

securities

for

the

Fund.

In

addition,

the

investment

manager

may

not

be

able

to

give

such

considerations

meaningful

weight

if

the

availability

of

appropriate

securities

for

the

Fund’s

portfolio

is

limited.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

certain

investments

may

differ

from

that

of

investors,

third

party

service

providers,

such

as

ratings

providers,

or

other

funds.

While

the

investment

manager

views

social

and

governance

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

FRD-9

Annual

Report

FRD

P1

P2

P4

10/22

SUPPLEMENT

DATED

OCTOBER

26,

2022

TO

THE

PROSPECTUSES

DATED

MAY

1,

2022

OF

FRANKLIN

RISING

DIVIDENDS

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

The

prospectuses

are

amended

as

follows:

I.

The

following

is

added

as

the

first

paragraph

under

“Fund

Summaries

–

Franklin

Rising

Dividends

VIP

Fund:”

The

Board

of

Trustees

of

Franklin

Templeton

Variable

Insurance

Products

Trust,

on

behalf

of

the

Franklin

Rising

Dividends

VIP

Fund

(Fund),

recently

approved,

subject

to

shareholder

approval:

(i)

the

removal

of

the

criterion

regarding

the

pricing

of

rising

dividends

companies,

which

is

one

of

the

five

criteria

used

to

identify

“rising

dividends”

companies

for

purposes

of

the

Fund’s

investment

policy

to

invest

at

least

65%

of

its

net

assets

in

securities

of

certain

companies;

(ii)

modifications

to

two

of

the

other

criteria

related

to

the

reinvestment

of

earnings

by

and

levels

of

debt

of

rising

dividend

companies

to

except

utility

companies

from

the

application

of

such

criteria;

and

(iii)

the

reclassification

of

the

four

remaining

criteria

as

non-fundamental

policies.

It

is

anticipated

that

in

January

2023

shareholders

of

the

Fund

will

receive

a

proxy

statement

requesting

their

votes

on

the

proposals.

If

the

proposals

are

approved

by

the

Fund’s

shareholders,

it

is

expected

that

these

changes

will

become

effective

in

the

first

or

second

quarter

of

2023.

The

Fund

reserves

the

right

to

change

the

above

at

any

time.

II.

The

following

is

added

as

the

first

paragraph

under

“Fund

Details

–

Franklin

Rising

Dividends

VIP

Fund:”

The

Board

of

Trustees

of

Franklin

Templeton

Variable

Insurance

Products

Trust,

on

behalf

of

the

Franklin

Rising

Dividends

VIP

Fund

(Fund),

recently

approved,

subject

to

shareholder

approval:

(i)

the

removal

of

the

criterion

regarding

the

pricing

of

rising

dividends

companies,

which

is

one

of

the

five

criteria

used

to

identify

“rising

dividends”

companies

for

purposes

of

the

Fund’s

investment

policy

to

invest

at

least

65%

of

its

net

assets

in

securities

of

certain

companies;

(ii)

modifications

to

two

of

the

other

criteria

related

to

the

reinvestment

of

earnings

by

and

levels

of

debt

of

rising

dividend

companies

to

except

utility

companies

from

the

application

of

such

criteria;

and

(iii)

the

reclassification

of

the

four

remaining

criteria

as

non-fundamental

policies.

It

is

anticipated

that

in

January

2023

shareholders

of

the

Fund

will

receive

a

proxy

statement

requesting

their

votes

on

the

proposals.

If

the

proposals

are

approved

by

the

Fund’s

shareholders,

it

is

expected

that

these

changes

will

become

effective

in

the

first

or

second

quarter

of

2023.

The

Fund

reserves

the

right

to

change

the

above

at

any

time.

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Rising

Dividends

VIP

Fund

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FRD-10

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$36.74

$30.17

$27.90

$25.75

$29.21

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.35

0.30

0.32

0.37

0.39

Net

realized

and

unrealized

gains

(losses)

...........

(4.55)

7.68

3.76

6.77

(1.65)

Total

from

investment

operations

....................

(4.20)

7.98

4.08

7.14

(1.26)

Less

distributions

from:

Net

investment

income

..........................

(0.35)

(0.35)

(0.41)

(0.45)

(0.44)

Net

realized

gains

.............................

(4.01)

(1.06)

(1.40)

(4.54)

(1.76)

Total

distributions

...............................

(4.36)

(1.41)

(1.81)

(4.99)

(2.20)

Net

asset

value,

end

of

year

.......................

$28.18

$36.74

$30.17

$27.90

$25.75

Total

return

c

...................................

(10.34)%

27.10%

16.23%

29.58%

(4.84)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.64%

0.63%

0.65%

0.63%

0.62%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.63%

0.63%

e

0.65%

e

0.63%

e

0.62%

e

Net

investment

income

...........................

1.18%

0.90%

1.20%

1.34%

1.38%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$114,787

$141,433

$156,585

$150,864

$157,838

Portfolio

turnover

rate

............................

12.59%

3.92%

12.83%

7.26%

f

3.09%

f

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

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.

Annual

Report

FRD-11

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$35.42

$29.14

$26.99

$25.04

$28.46

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.27

0.21

0.24

0.29

0.31

Net

realized

and

unrealized

gains

(losses)

...........

(4.40)

7.41

3.65

6.57

(1.61)

Total

from

investment

operations

....................

(4.13)

7.62

3.89

6.86

(1.30)

Less

distributions

from:

Net

investment

income

..........................

(0.25)

(0.28)

(0.33)

(0.37)

(0.36)

Net

realized

gains

.............................

(4.01)

(1.06)

(1.41)

(4.54)

(1.76)

Total

distributions

...............................

(4.26)

(1.34)

(1.74)

(4.91)

(2.12)

Net

asset

value,

end

of

year

.......................

$27.03

$35.42

$29.14

$26.99

$25.04

Total

return

c

...................................

(10.57)%

26.79%

15.97%

29.23%

(5.07)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.89%

0.88%

0.90%

0.88%

0.87%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.88%

0.88%

e

0.90%

e

0.88%

e

0.87%

e

Net

investment

income

...........................

0.92%

0.66%

0.95%

1.09%

1.13%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,211,909

$1,513,905

$1,365,745

$1,387,688

$1,106,334

Portfolio

turnover

rate

............................

12.59%

3.92%

12.83%

7.26%

f

3.09%

f

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

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)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FRD-12

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$35.49

$29.22

$27.08

$25.11

$28.54

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.24

0.18

0.22

0.26

0.29

Net

realized

and

unrealized

gains

(losses)

...........

(4.41)

7.42

3.65

6.60

(1.62)

Total

from

investment

operations

....................

(4.17)

7.60

3.87

6.86

(1.33)

Less

distributions

from:

Net

investment

income

..........................

(0.25)

(0.27)

(0.32)

(0.35)

(0.34)

Net

realized

gains

.............................

(4.01)

(1.06)

(1.41)

(4.54)

(1.76)

Total

distributions

...............................

(4.26)

(1.33)

(1.73)

(4.89)

(2.10)

Net

asset

value,

end

of

year

.......................

$27.06

$35.49

$29.22

$27.08

$25.11

Total

return

c

...................................

(10.68)%

26.63%

15.85%

29.16%

(5.16)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.99%

0.98%

1.00%

0.98%

0.97%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.98%

0.98%

e

1.00%

e

0.98%

e

0.97%

e

Net

investment

income

...........................

0.84%

0.56%

0.85%

0.99%

1.03%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$70,696

$72,589

$51,137

$46,539

$32,825

Portfolio

turnover

rate

............................

12.59%

3.92%

12.83%

7.26%

f

3.09%

f

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments,

December

31,

2022

Franklin

Rising

Dividends

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FRD-13

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

95.7%

Aerospace

&

Defense

4.4%

General

Dynamics

Corp.

................................

United

States

89,752

$

22,268,369

Raytheon

Technologies

Corp.

............................

United

States

393,346

39,696,478

61,964,847

Air

Freight

&

Logistics

2.1%

United

Parcel

Service,

Inc.,

B

............................

United

States

165,417

28,756,091

Banks

1.4%

JPMorgan

Chase

&

Co.

.................................

United

States

145,425

19,501,493

Beverages

1.9%

PepsiCo,

Inc.

........................................

United

States

143,630

25,948,196

Biotechnology

1.8%

AbbVie,

Inc.

.........................................

United

States

154,136

24,909,919

Building

Products

2.8%

Carlisle

Cos.,

Inc.

.....................................

United

States

62,102

14,634,336

Johnson

Controls

International

plc

.........................

United

States

380,210

24,333,440

38,967,776

Capital

Markets

1.2%

Nasdaq,

Inc.

.........................................

United

States

279,500

17,147,325

Chemicals

9.5%

Air

Products

and

Chemicals,

Inc.

..........................

United

States

121,667

37,505,069

Albemarle

Corp.

......................................

United

States

100,110

21,709,855

Ecolab,

Inc.

..........................................

United

States

105,709

15,387,002

Linde

plc

............................................

United

Kingdom

152,432

49,720,270

Sherwin-Williams

Co.

(The)

..............................

United

States

34,000

8,069,220

132,391,416

Commercial

Services

&

Supplies

1.7%

Cintas

Corp.

.........................................

United

States

53,472

24,149,025

Electrical

Equipment

0.8%

nVent

Electric

plc

.....................................

United

States

282,226

10,857,234

Food

&

Staples

Retailing

1.4%

Walmart,

Inc.

........................................

United

States

132,508

18,788,309

Food

Products

2.3%

McCormick

&

Co.,

Inc.

.................................

United

States

220,794

18,301,615

Mondelez

International,

Inc.,

A

............................

United

States

215,900

14,389,735

32,691,350

Health

Care

Equipment

&

Supplies

9.2%

Abbott

Laboratories

....................................

United

States

263,295

28,907,158

Becton

Dickinson

and

Co.

...............................

United

States

138,715

35,275,225

Medtronic

plc

........................................

United

States

290,354

22,566,313

Stryker

Corp.

........................................

United

States

173,145

42,332,221

129,080,917

Health

Care

Providers

&

Services

3.2%

CVS

Health

Corp.

.....................................

United

States

73,193

6,820,856

UnitedHealth

Group,

Inc.

................................

United

States

71,800

38,066,924

44,887,780

Hotels,

Restaurants

&

Leisure

2.4%

McDonald's

Corp.

.....................................

United

States

97,999

25,825,676

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Rising

Dividends

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FRD-14

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Hotels,

Restaurants

&

Leisure

(continued)

Starbucks

Corp.

......................................

United

States

77,500

$

7,688,000

33,513,676

Household

Products

2.8%

Colgate-Palmolive

Co.

.................................

United

States

195,440

15,398,717

Procter

&

Gamble

Co.

(The)

.............................

United

States

153,294

23,233,239

38,631,956

Industrial

Conglomerates

2.4%

Honeywell

International,

Inc.

.............................

United

States

155,875

33,404,013

Insurance

0.9%

Erie

Indemnity

Co.,

A

...................................

United

States

47,870

11,906,226

IT

Services

5.4%

Accenture

plc,

A

......................................

United

States

157,978

42,154,850

Visa,

Inc.,

A

..........................................

United

States

162,462

33,753,105

75,907,955

Life

Sciences

Tools

&

Services

1.9%

Danaher

Corp.

.......................................

United

States

20,200

5,361,484

West

Pharmaceutical

Services,

Inc.

........................

United

States

88,701

20,875,780

26,237,264

Machinery

2.3%

Donaldson

Co.,

Inc.

...................................

United

States

140,297

8,259,285

Dover

Corp.

.........................................

United

States

140,988

19,091,185

Pentair

plc

..........................................

United

States

111,094

4,997,008

32,347,478

Multiline

Retail

1.8%

Target

Corp.

.........................................

United

States

172,737

25,744,722

Oil,

Gas

&

Consumable

Fuels

3.7%

Chevron

Corp.

.......................................

United

States

123,994

22,255,683

EOG

Resources,

Inc.

..................................

United

States

117,561

15,226,501

Exxon

Mobil

Corp.

.....................................

United

States

122,361

13,496,418

50,978,602

Pharmaceuticals

3.1%

Johnson

&

Johnson

...................................

United

States

160,329

28,322,118

Pfizer,

Inc.

...........................................

United

States

296,415

15,188,304

43,510,422

Road

&

Rail

2.3%

JB

Hunt

Transport

Services,

Inc.

..........................

United

States

73,330

12,785,819

Norfolk

Southern

Corp.

.................................

United

States

77,947

19,207,700

31,993,519

Semiconductors

&

Semiconductor

Equipment

5.4%

Analog

Devices,

Inc.

...................................

United

States

236,294

38,759,305

Texas

Instruments,

Inc.

.................................

United

States

224,868

37,152,691

75,911,996

Software

10.6%

Microsoft

Corp.

.......................................

United

States

414,828

99,484,050

Roper

Technologies,

Inc.

................................

United

States

111,483

48,170,689

147,654,739

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Rising

Dividends

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FRD-15

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Specialty

Retail

3.6%

Lowe's

Cos.,

Inc.

......................................

United

States

137,800

$

27,455,272

Ross

Stores,

Inc.

.....................................

United

States

202,030

23,449,622

50,904,894

Technology

Hardware,

Storage

&

Peripherals

0.2%

Apple,

Inc.

..........................................

United

States

23,400

3,040,362

Textiles,

Apparel

&

Luxury

Goods

1.9%

NIKE,

Inc.,

B

.........................................

United

States

230,184

26,933,830

Trading

Companies

&

Distributors

1.3%

WW

Grainger,

Inc.

.....................................

United

States

32,593

18,129,856

Total

Common

Stocks

(Cost

$549,135,981)

.....................................

1,336,793,188

Short

Term

Investments

4.4%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

4.4%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

....

United

States

61,564,833

61,564,833

Total

Money

Market

Funds

(Cost

$61,564,833)

..................................

61,564,833

Total

Short

Term

Investments

(Cost

$61,564,833

)

................................

61,564,833

a

Total

Investments

(Cost

$610,700,814)

100.1%

..................................

$1,398,358,021

Other

Assets,

less

Liabilities

(0.1)%

...........................................

(966,274)

Net

Assets

100.0%

...........................................................

$1,397,391,747

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

December

31,

2022

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FRD-16

Franklin

Rising

Dividends

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$549,135,981

Cost

-

Non-controlled

affiliates

(Note

3e)

........................................................

61,564,833

Value

-

Unaffiliated

issuers

..................................................................

$1,336,793,188

Value

-

Non-controlled

affiliates

(Note

3e)

.......................................................

61,564,833

Cash

....................................................................................

185

Receivables:

Investment

securities

sold

...................................................................

111,756

Capital

shares

sold

........................................................................

822,475

Dividends

...............................................................................

1,153,038

Prepaid

expenses

..........................................................................

57,010

Total

assets

..........................................................................

1,400,502,485

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

1,911,613

Management

fees

.........................................................................

734,087

Distribution

fees

..........................................................................

282,267

Trustees'

fees

and

expenses

.................................................................

785

Accrued

expenses

and

other

liabilities

...........................................................

181,986

Total

liabilities

.........................................................................

3,110,738

Net

assets,

at

value

.................................................................

$1,397,391,747

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$451,118,228

Total

distributable

earnings

(losses)

.............................................................

946,273,519

Net

assets,

at

value

.................................................................

$1,397,391,747

Franklin

Rising

Dividends

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$114,786,524

Shares

outstanding

........................................................................

4,073,533

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$28.18

Class

2:

Net

assets,

at

value

.......................................................................

$1,211,908,738

Shares

outstanding

........................................................................

44,841,501

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$27.03

Class

4:

Net

assets,

at

value

.......................................................................

$70,696,485

Shares

outstanding

........................................................................

2,612,156

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$27.06

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2022

The

accompanying

notes

are

an

intergral

part

of

these

financial

statments.

Annual

Report

FRD-17

Franklin

Rising

Dividends

VIP

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

........................................................................

$24,473,995

Non-controlled

affiliates

(Note

3e)

.............................................................

559,093

Total

investment

income

...................................................................

25,033,088

Expenses:

Management

fees

(Note

3

a

)

...................................................................

8,808,657

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

2,999,577

    Class

4

................................................................................

237,169

Custodian

fees

(Note

4

)

......................................................................

8,668

Reports

to

shareholders

fees

..................................................................

(98,714)

Professional

fees

...........................................................................

63,059

Trustees'

fees

and

expenses

..................................................................

15,981

Other

....................................................................................

70,331

Total

expenses

.........................................................................

12,104,728

Expense

reductions

(Note

4

)

...............................................................

(10)

Expenses

waived/paid

by

affiliates

(Note

3e)

...................................................

(113,198)

Net

expenses

.........................................................................

11,991,520

Net

investment

income

................................................................

13,041,568

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

148,983,389

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(353,422,116)

Net

realized

and

unrealized

gain

(loss)

............................................................

(204,438,727)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(191,397,159)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FRD-18

Franklin

Rising

Dividends

VIP

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$13,041,568

$11,395,075

Net

realized

gain

(loss)

.................................................

148,983,389

171,565,322

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(353,422,116)

215,633,524

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(191,397,159)

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

.............................................................

4,783,970

(47,704,793)

Class

2

.............................................................

23,522,172

(136,274,181)

Class

4

.............................................................

15,160,023

9,216,825

Total

capital

share

transactions

............................................

43,466,165

(174,762,149)

Net

increase

(decrease)

in

net

assets

...................................

(330,536,048)

154,461,349

Net

assets:

Beginning

of

year

.......................................................

1,727,927,795

1,573,466,446

End

of

year

...........................................................

$1,397,391,747

$1,727,927,795

Franklin

Templeton

Variable

Insurance

Products

Trust

FRD-19

Annual

Report

Notes

to

Financial

Statements

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.

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

Codification

Topic

946,

Financial

Services

-

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

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

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

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,

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

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FRD-20

Annual

Report

Franklin

Rising

Dividends

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

December

31,

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FRD-21

Annual

Report

Franklin

Rising

Dividends

VIP

Fund

(continued)

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

December

31,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

302,160

$9,036,236

244,064

$8,168,743

Shares

issued

in

reinvestment

of

distributions

..........

600,459

15,485,835

215,162

6,930,364

Shares

redeemed

...............................

(678,695)

(19,738,101)

(1,798,891)

(62,803,900)

Net

increase

(decrease)

..........................

223,924

$4,783,970

(1,339,665)

$(47,704,793)

Class

2

Shares:

Shares

sold

...................................

9,317,862

$275,753,134

1,868,187

$60,306,863

Shares

issued

in

reinvestment

of

distributions

..........

6,338,517

157,005,061

1,926,844

59,905,574

Shares

redeemed

...............................

(13,561,372)

(409,236,023)

(7,913,034)

(256,486,618)

Net

increase

(decrease)

..........................

2,095,007

$23,522,172

(4,118,003)

$(136,274,181)

Class

4

Shares:

Shares

sold

...................................

508,852

$14,897,164

463,060

$14,756,595

Shares

issued

in

reinvestment

of

distributions

..........

374,401

9,292,634

81,311

2,534,485

Shares

redeemed

...............................

(316,486)

(9,029,775)

(249,162)

(8,074,255)

Net

increase

(decrease)

..........................

566,767

$15,160,023

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

FRD-22

Annual

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

year

ended

December

31,

2022,

the

gross

effective

investment

management

fee

rate

was 0.635%

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

year

ended

December

31,

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

FRD-23

Annual

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

year

ended

December

31,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021,

was

as

follows:

At

December

31,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

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

and

wash

sales.

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

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,

3.782%

$

19,398,008

$

405,981,472

$

(363,814,647)

$

—

$

—

$

61,564,833

61,564,833

$

559,093

Total

Affiliated

Securities

...

$19,398,008

$405,981,472

$(363,814,647)

$—

$—

$61,564,833

$559,093

2022

2021

Distributions

paid

from:

Ordinary

income

..........................................................

$18,102,809

$16,837,653

Long

term

capital

gain

......................................................

164,502,245

52,532,770

$182,605,054

$69,370,423

Cost

of

investments

..........................................................................

$613,210,057

Unrealized

appreciation

........................................................................

$791,200,454

Unrealized

depreciation

........................................................................

(6,052,490)

Net

unrealized

appreciation

(depreciation)

..........................................................

$785,147,964

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$12,179,903

Undistributed

long

term

capital

gains

..............................................................

$148,945,652

Total

distributable

earnings

.....................................................................

$161,125,555

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FRD-24

Annual

Report

Franklin

Rising

Dividends

VIP

Fund

(continued)

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2022,

aggregated

$172,833,680

and

$334,775,658,

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

matured

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.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

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

year

ended

December

31,

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.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FRD-25

Annual

Report

Franklin

Rising

Dividends

VIP

Fund

(continued)

At

December

31,

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 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

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

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

other

than

those

already

disclosed

in

the

financial

statements.

10.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

FRD-26

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Templeton

Variable

Insurance

Products

Trust

and

Shareholders

of

Franklin

Rising

Dividends

VIP

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Franklin

Rising

Dividends

VIP

Fund

(one

of

the

funds

constituting

Franklin

Templeton

Variable

Insurance

Products

Trust,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2022,

the

related

statement

of

operations

for

the

year

ended

December

31,

2022,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2022,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian

and

transfer

agent.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Templeton

Variable

Insurance

Products

Trust

Tax

Information

(unaudited)

FRD-27

Annual

Report

Franklin

Rising

Dividends

VIP

Fund

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2022:

Pursuant

to:

Amount

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$164,502,245

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$21,344,473

FSV-1

Annual

Report

Franklin

Small

Cap

Value

VIP

Fund

This

annual

report

for

Franklin

Small

Cap

Value

VIP

Fund

covers

the

fiscal

year

ended

December

31,

2022

.

Class

4

Performance

Summary

as

of

December

31,

2022

Average

annual

total

return

of

Class

4

shares*

represents

the

average

annual

change

in

value,

assuming

reinvestment

of

dividends

and

capital

gains.

Average

returns

smooth

out

variations

in

returns,

which

can

be

significant;

they

are

not

the

same

as

year-by-year

results.

*The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Performance

reflects

the

Fund’s

Class

4

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.

Share

Class

Average

Annual

Total

Return

–

4

1-Year

-10.11%

5-Year

+5.37%

10-Year

+8.98%

FSV-2

Annual

Report

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

(12/31/12–

12/31/22

)

The

graph

below

shows

the

change

in

value

of

a

hypothetical

$10,000

investment

in

the

Fund

over

the

indicated

period

and

includes

reinvestment

of

any

income

or

distributions.

The

Fund’s

performance*

is

compared

to

the

performance

of

the

Russell

2000

®

Value

Index.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Important

Notes

to

Performance

Information

preceding

the

Fund

Summaries.

**Source:

FactSet.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

FSV-3

Annual

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.

The

Fund’s

investments

in

smaller

company

stocks

carry

special

risks

as

such

stocks

have

historically

exhibited

greater

price

volatility

than

larger

company

stocks,

particularly

over

the

short

term.

Additionally,

smaller

companies

often

have

relatively

small

revenues,

limited

product

lines

and

a

small

market

share.

In

addition,

the

Fund

may

invest

up

to

25%

of

its

total

assets

in

foreign

securities,

which

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

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

one-year

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

benchmark,

the

Russell

2000

®

Value

Index,

posted

a

-14.48%

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.

Portfolio

Composition

12/31/22

%

of

Total

Net

Assets

Banks

13.2%

Trading

Companies

&

Distributors

7.1%

Insurance

6.3%

Hotels,

Restaurants

&

Leisure

5.7%

Chemicals

5.0%

Electronic

Equipment,

Instruments

&

Components

4.8%

Oil,

Gas

&

Consumable

Fuels

4.6%

Food

Products

3.9%

Building

Products

3.8%

Health

Care

Equipment

&

Supplies

3.8%

Machinery

3.3%

Software

3.3%

Equity

Real

Estate

Investment

Trusts

(REITs)

3.3%

Construction

&

Engineering

2.4%

Other*

25.4%

Short-Term

Investments

&

Other

Net

Assets

4.1%

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-4

Annual

Report

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

posted

a

-18.11%

total

return

for

the

12

months

ended

December

31,

2022.

1

High

inflation,

rising

interest

rates

and

geopolitical

instability

contributed

to

a

sharp

decline

in

equity

prices

and

contracting

economic

growth

in

the

first

half

of

the

reporting

period.

Nevertheless,

consumer

spending

continued

to

rise,

but

deteriorating

financial

conditions

and

investors’

expectations

for

slower

growth

continued

to

weigh

on

equity

markets.

Inflation

increased

during

the

first

half

of

the

period,

reaching

9.1%

in

June

2022,

the

highest

annual

rate

since

1981.

Continued

supply-chain

disruptions,

strong

consumer

demand,

and

volatile

energy

prices

drove

inflation

higher.

Russia’s

invasion

of

Ukraine

also

disrupted

financial

markets

and

led

to

a

rise

in

oil

and

commodity

prices

in

the

first

half

of

the

reporting

period.

Inflation

remained

elevated

but

abated

somewhat

in

the

latter

half

of

the

period,

decreasing

to

an

annual

rate

of

7.1%

in

November

2022.

The

labor

market

remained

strong

amid

the

high

level

of

nominal

growth,

which

drove

the

U.S.

unemployment

rate

down

to

3.5%

in

December

2022.

Wages

also

climbed

at

the

fastest

rate

in

decades,

which

added

to

some

investors’

inflation

concerns.

U.S.

gross

domestic

product

grew

in

the

second

half

of

2022

after

contracting

in

the

first

half

of

the

year.

Rising

interest

rates

translated

to

higher

borrowing

costs

for

individuals

and

businesses,

which

dampened

economic

activity,

especially

in

the

housing

and

financial

markets.

In

the

second

half

of

the

period,

rising

consumer

spending

and

increased

exports

amid

declining

inflation

led

to

solid

economic

growth.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

undertook

a

rapid

shift

toward

restrictive

monetary

policy,

starting

in

March

2022

with

its

first

rate

hike

since

2018.

Thereafter,

the

Fed

raised

the

federal

funds

rate

at

each

of

its

six

subsequent

meetings

to

end

the

period

at

a

range

of

4.25%–4.50%.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings

and

anticipated

additional

interest-rate

increases

at

future

meetings

to

curtail

inflation.

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

2022,

the

Fund’s

relative

performance

was

boosted

by

stock

selection

and

an

underweighting

in

health

care

as

well

as

stock

selection

in

industrials

and

financials.

In

contrast,

relative

detractors

included

an

overweighting

in

the

consumer

discretionary

sector,

an

underweighting

in

the

utilities

sector

and

an

overweighting

in

information

technology.

TechnipFMC,

an

oilfield

equipment

and

services

company,

contributed

to

relative

performance,

driven

by

better-than-

expected

quarterly

results,

continued

strength

in

offshore

order

inflow,

and

visibility

on

an

improving

industry

order

pipeline.

Additionally,

the

board

authorized

a

share

buyback

program

and

management

reiterated

its

intention

to

start

quarterly

dividends

in

the

second

half

of

2023.

Crescent

Point

Energy,

a

Canada-based

exploration

and

production

company,

boosted

relative

performance.

Multiple

factors

contributed

to

the

strong

performance,

including

a

surprise

dividend

boost,

a

share

buyback

announcement,

a

reduction

in

debt,

a

positive

free

cash

flow

outlook

and

an

increase

in

oil

prices.

Top

10

Holdings

12/31/22

Company

Industry

%

of

Total

Net

Assets

a

aa

Hanover

Insurance

Group,

Inc.

(The)

3.0%

Insurance

ACI

Worldwide,

Inc.

2.9%

Software

McGrath

RentCorp

2.8%

Trading

Companies

&

Distributors

Glanbia

plc

2.7%

Food

Products

Crescent

Point

Energy

Corp.

2.6%

Oil,

Gas

&

Consumable

Fuels

UFP

Industries,

Inc.

2.5%

Building

Products

Univar

Solutions,

Inc.

2.5%

Trading

Companies

&

Distributors

NetScout

Systems,

Inc.

2.4%

Communications

Equipment

Columbia

Banking

System,

Inc.

2.2%

Banks

Brinker

International,

Inc.

2.2%

Hotels,

Restaurants

&

Leisure

Franklin

Small

Cap

Value

VIP

Fund

FSV-5

Annual

Report

McGrath

RentCorp,

a

provider

of

modular

classrooms,

offices,

and

storage

containers,

also

outperformed

during

the

period. The

outperformance

was

driven

by

improving

rental

rates

and

the

successful

integration

of

recent

acquisitions.

We

continue

to

find

the

shares

attractive

due

to

the

company’s

discounted

valuation

relative

to

its

closest

publicly

traded

peer

and

management’s

ability

to

continue

to

consolidate

the

modular

classroom

industry.

Conversely,

shares

of

Knowles,

a

provider

of

advanced

micro-acoustic,

audio

processing

and

precision

device

solutions,

detracted

from

relative

results.

Lower

global

demand

for

consumer

electronics,

COVID-related

shutdowns

in

China,

excess

inventory

in

the

supply

chain,

and

the

shift

away

from

commoditized

products

led

to

a

drop

in

capacity

utilization.

Furthermore,

the

company

recently

initiated

a

restructuring

program

to

decrease

its

exposure

to

the

commodity

MEMS

(micro-electromechanical

systems)

microphone

business.

Great

Lakes

Dredge

&

Dock,

a

U.S.-focused

dredging

company,

underperformed

due

to

weaker-than-expected

2022

second-quarter

results.

The

company

faced

operational

challenges

throughout

the

12-month

period

due

to

COVID,

supply-chain

issues,

labor

costs,

weather

and

dry

dock

scheduling,

leading

to

a

shortfall

in

meeting

full-year

2022

guidance.

Shares

of

ACI

Worldwide,

a

provider

of

software

products

and

solutions

that

facilitate

electronic

payments,

detracted

from

results

for

the

period.

The

company

missed

recent

earnings

estimates

as

it

experienced

margin

pressure

in

a

business

segment

due

to

inflation

in

the

average

payments

made

in

certain

industries.

Furthermore,

the

company

recently

announced

a

transition

at

the

chief

executive

officer

role.

We

remain

encouraged

by

the

increased

traction

in

real-time

payments

and

the

improved

organic

revenue

growth

profile.

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

December

31,

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

4

Fund

Expenses

Franklin

Small

Cap

Value

VIP

Fund

FSV-6

Annual

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

184/365

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

7/1/22

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

4

$1,000

$1,088.30

$4.89

$1,020.52

$4.73

0.93%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Small

Cap

Value

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSV-7

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$18.43

$15.20

$15.73

$15.14

$20.43

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.12

0.19

0.20

0.24

c

0.21

Net

realized

and

unrealized

gains

(losses)

...........

(2.06)

3.71

0.31

3.35

(2.29)

Total

from

investment

operations

....................

(1.94)

3.90

0.51

3.59

(2.08)

Less

distributions

from:

Net

investment

income

..........................

(0.21)

(0.21)

(0.23)

(0.22)

(0.23)

Net

realized

gains

.............................

(2.96)

(0.46)

(0.81)

(2.78)

(2.98)

Total

distributions

...............................

(3.17)

(0.67)

(1.04)

(3.00)

(3.21)

Net

asset

value,

end

of

year

.......................

$13.32

$18.43

$15.20

$15.73

$15.14

Total

return

d

...................................

(9.82)%

25.67%

5.41%

26.72%

(12.69)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.63%

0.66%

0.68%

0.67%

0.66%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.62%

f

0.66%

e

0.68%

e,f

0.67%

e,f

0.65%

f

Net

investment

income

...........................

0.82%

1.07%

1.54%

1.58%

c

1.13%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$66,574

$73,715

$50,572

$46,980

$40,644

Portfolio

turnover

rate

............................

54.83%

60.41%

69.40%

54.36%

47.82%

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

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.

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

Franklin

Small

Cap

Value

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSV-8

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$17.54

$14.50

$15.05

$14.60

$19.80

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.08

0.14

0.16

0.20

c

0.16

Net

realized

and

unrealized

gains

(losses)

...........

(1.97)

3.53

0.30

3.20

(2.20)

Total

from

investment

operations

....................

(1.89)

3.67

0.46

3.40

(2.04)

Less

distributions

from:

Net

investment

income

..........................

(0.16)

(0.17)

(0.19)

(0.17)

(0.18)

Net

realized

gains

.............................

(2.96)

(0.46)

(0.82)

(2.78)

(2.98)

Total

distributions

...............................

(3.12)

(0.63)

(1.01)

(2.95)

(3.16)

Net

asset

value,

end

of

year

.......................

$12.53

$17.54

$14.50

$15.05

$14.60

Total

return

d

...................................

(10.06)%

25.37%

5.19%

26.35%

(12.88)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.88%

0.91%

0.93%

0.92%

0.91%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.87%

f

0.91%

e

0.93%

e,f

0.92%

e,f

0.90%

f

Net

investment

income

...........................

0.56%

0.83%

1.28%

1.33%

c

0.88%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$943,928

$1,135,623

$1,103,373

$1,123,093

$978,675

Portfolio

turnover

rate

............................

54.83%

60.41%

69.40%

54.36%

47.82%

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

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.

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

Franklin

Small

Cap

Value

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSV-9

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$18.14

$14.99

$15.51

$14.96

$20.22

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.07

0.13

0.15

0.19

c

0.15

Net

realized

and

unrealized

gains

(losses)

...........

(2.03)

3.64

0.32

3.30

(2.28)

Total

from

investment

operations

....................

(1.96)

3.77

0.47

3.49

(2.13)

Less

distributions

from:

Net

investment

income

..........................

(0.15)

(0.16)

(0.18)

(0.16)

(0.15)

Net

realized

gains

.............................

(2.96)

(0.46)

(0.81)

(2.78)

(2.98)

Total

distributions

...............................

(3.11)

(0.62)

(0.99)

(2.94)

(3.13)

Net

asset

value,

end

of

year

.......................

$13.07

$18.14

$14.99

$15.51

$14.96

Total

return

d

...................................

(10.11)%

25.17%

5.13%

26.23%

(13.01)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.98%

1.01%

1.03%

1.02%

1.01%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.97%

f

1.01%

e

1.03%

e,f

1.02%

e,f

1.00%

f

Net

investment

income

...........................

0.47%

0.73%

1.18%

1.23%

c

0.78%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$35,519

$38,148

$29,461

$29,238

$24,592

Portfolio

turnover

rate

............................

54.83

%

60.41%

69.40%

54.36%

47.82%

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

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.

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,

December

31,

2022

Franklin

Small

Cap

Value

VIP

Fund

Annual

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

95.9%

Aerospace

&

Defense

0.8%

QinetiQ

Group

plc

.....................................

United

Kingdom

1,866,290

$

8,025,115

Auto

Components

1.1%

a

Adient

plc

...........................................

United

States

320,427

11,115,613

LCI

Industries

........................................

United

States

10,514

972,019

12,087,632

Banks

13.2%

Atlantic

Union

Bankshares

Corp.

..........................

United

States

549,972

19,326,016

Camden

National

Corp.

.................................

United

States

215,383

8,979,317

Columbia

Banking

System,

Inc.

...........................

United

States

778,174

23,446,383

First

Bancorp

........................................

United

States

57,801

2,476,195

First

Interstate

BancSystem

,

Inc.,

A

........................

United

States

594,314

22,970,236

First

of

Long

Island

Corp.

(The)

...........................

United

States

171,008

3,078,144

German

American

Bancorp,

Inc.

..........................

United

States

189,677

7,074,952

Peoples

Bancorp,

Inc.

..................................

United

States

266,198

7,520,093

SouthState

Corp.

.....................................

United

States

303,752

23,194,503

TriCo

Bancshares

.....................................

United

States

203,399

10,371,315

Washington

Trust

Bancorp,

Inc.

...........................

United

States

197,439

9,315,172

137,752,326

Building

Products

3.8%

Apogee

Enterprises,

Inc.

................................

United

States

116,034

5,158,872

Insteel

Industries,

Inc.

..................................

United

States

24,093

663,039

a

Masonite

International

Corp.

.............................

United

States

98,862

7,969,266

UFP

Industries,

Inc.

....................................

United

States

334,872

26,538,606

40,329,783

Chemicals

5.0%

Ashland,

Inc.

.........................................

United

States

51,076

5,492,202

Avient

Corp.

.........................................

United

States

103,309

3,487,712

a

Elementis

plc

........................................

United

Kingdom

10,013,337

14,563,331

Minerals

Technologies,

Inc.

..............................

United

States

309,247

18,777,478

Tronox

Holdings

plc

...................................

United

States

721,240

9,888,200

52,208,923

Commercial

Services

&

Supplies

1.7%

a

IAA,

Inc.

............................................

United

States

437,162

17,486,480

Communications

Equipment

2.4%

a

NetScout

Systems,

Inc.

.................................

United

States

777,238

25,268,007

Construction

&

Engineering

2.4%

a

Great

Lakes

Dredge

&

Dock

Corp.

........................

United

States

433,736

2,580,729

Primoris

Services

Corp.

.................................

United

States

281,050

6,166,237

Stantec

,

Inc.

.........................................

Canada

214,564

10,281,324

a

WillScot

Mobile

Mini

Holdings

Corp.

.......................

United

States

145,300

6,563,201

25,591,491

Construction

Materials

1.6%

a

Summit

Materials,

Inc.,

A

................................

United

States

592,351

16,816,845

Consumer

Finance

0.1%

Bread

Financial

Holdings,

Inc.

............................

United

States

30,573

1,151,379

Electric

Utilities

0.5%

IDACORP,

Inc.

.......................................

United

States

50,170

5,410,834

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Small

Cap

Value

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSV-11

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Electrical

Equipment

1.3%

Regal

Rexnord

Corp.

..................................

United

States

113,372

$

13,602,373

Electronic

Equipment,

Instruments

&

Components

4.8%

Benchmark

Electronics,

Inc.

.............................

United

States

549,248

14,659,429

a

Coherent

Corp.

.......................................

United

States

379,051

13,304,690

CTS

Corp.

..........................................

United

States

96,550

3,806,001

a

Knowles

Corp.

.......................................

United

States

1,149,431

18,873,657

50,643,777

Energy

Equipment

&

Services

2.3%

Hunting

plc

..........................................

United

Kingdom

1,981,916

7,978,474

a

TechnipFMC

plc

......................................

United

Kingdom

1,347,267

16,423,185

24,401,659

Equity

Real

Estate

Investment

Trusts

(REITs)

3.3%

Alexander

&

Baldwin,

Inc.

...............................

United

States

537,428

10,066,027

Highwoods

Properties,

Inc.

..............................

United

States

33,855

947,263

STAG

Industrial,

Inc.

...................................

United

States

239,307

7,732,009

Sunstone

Hotel

Investors,

Inc.

............................

United

States

1,585,744

15,318,287

34,063,586

Food

Products

3.9%

Glanbia

plc

..........................................

Ireland

2,249,838

28,493,670

Maple

Leaf

Foods,

Inc.

.................................

Canada

659,765

11,913,777

40,407,447

Health

Care

Equipment

&

Supplies

3.8%

a

Envista

Holdings

Corp.

.................................

United

States

547,960

18,449,813

a

Integer

Holdings

Corp.

.................................

United

States

317,689

21,748,989

40,198,802

Hotels,

Restaurants

&

Leisure

5.7%

Boyd

Gaming

Corp.

...................................

United

States

72,767

3,967,984

a

Brinker

International,

Inc.

...............................

United

States

728,072

23,232,778

a

Dalata

Hotel

Group

plc

.................................

Ireland

1,655,539

5,735,548

a

Denny's

Corp.

........................................

United

States

633,512

5,834,646

a

Hilton

Grand

Vacations,

Inc.

.............................

United

States

132,144

5,092,830

Jack

in

the

Box,

Inc.

...................................

United

States

233,321

15,919,492

59,783,278

Household

Durables

1.6%

Century

Communities,

Inc.

..............................

United

States

80,043

4,002,951

a

M/I

Homes,

Inc.

.......................................

United

States

129,107

5,962,161

a

Meritage

Homes

Corp.

.................................

United

States

41,077

3,787,299

a

Taylor

Morrison

Home

Corp.

.............................

United

States

91,372

2,773,140

16,525,551

Insurance

6.3%

CNO

Financial

Group,

Inc.

..............................

United

States

480,662

10,983,127

Hanover

Insurance

Group,

Inc.

(The)

.......................

United

States

235,842

31,869,330

Horace

Mann

Educators

Corp.

...........................

United

States

472,170

17,644,993

Selective

Insurance

Group,

Inc.

...........................

United

States

57,027

5,053,162

65,550,612

Leisure

Products

0.5%

Brunswick

Corp.

......................................

United

States

72,147

5,200,356

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Small

Cap

Value

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSV-12

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Machinery

3.3%

Astec

Industries,

Inc.

...................................

United

States

64,122

$

2,607,201

Columbus

McKinnon

Corp.

..............................

United

States

210,988

6,850,780

Greenbrier

Cos.,

Inc.

(The)

..............................

United

States

410,520

13,764,736

REV

Group,

Inc.

......................................

United

States

272,662

3,440,994

Timken

Co.

(The)

.....................................

United

States

112,812

7,972,424

34,636,135

Metals

&

Mining

2.0%

Alcoa

Corp.

..........................................

United

States

244,574

11,120,780

a

Arconic

Corp.

........................................

United

States

214,417

4,537,064

Commercial

Metals

Co.

.................................

United

States

113,801

5,496,588

21,154,432

Multi-Utilities

0.6%

Black

Hills

Corp.

......................................

United

States

90,316

6,352,827

Oil,

Gas

&

Consumable

Fuels

4.6%

Crescent

Point

Energy

Corp.

.............................

Canada

3,878,366

27,669,879

a

Green

Plains,

Inc.

.....................................

United

States

661,832

20,185,876

47,855,755

Professional

Services

0.8%

ICF

International,

Inc.

..................................

United

States

80,003

7,924,297

Real

Estate

Management

&

Development

1.3%

a

Cushman

&

Wakefield

plc

...............................

United

States

1,079,477

13,450,283

Road

&

Rail

1.2%

a

Saia,

Inc.

...........................................

United

States

58,968

12,364,410

Semiconductors

&

Semiconductor

Equipment

1.8%

a

Cohu

,

Inc.

...........................................

United

States

335,710

10,759,506

a

Onto

Innovation,

Inc.

...................................

United

States

113,556

7,732,028

18,491,534

Software

3.3%

a

ACI

Worldwide,

Inc.

....................................

United

States

1,299,435

29,887,005

Software

AG

.........................................

Germany

182,717

4,723,614

34,610,619

Specialty

Retail

0.9%

a

Children's

Place,

Inc.

(The)

..............................

United

States

226,368

8,244,322

Group

1

Automotive,

Inc.

................................

United

States

6,189

1,116,310

9,360,632

Textiles,

Apparel

&

Luxury

Goods

1.1%

Carter's,

Inc.

.........................................

United

States

149,983

11,190,232

Thrifts

&

Mortgage

Finance

1.8%

WSFS

Financial

Corp.

..................................

United

States

425,146

19,276,120

Trading

Companies

&

Distributors

7.1%

Herc

Holdings,

Inc.

....................................

United

States

147,825

19,449,335

McGrath

RentCorp

....................................

United

States

293,771

29,006,949

a

Univar

Solutions,

Inc.

..................................

United

States

817,838

26,007,248

74,463,532

Total

Common

Stocks

(Cost

$902,999,540)

.....................................

1,003,637,064

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Small

Cap

Value

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSV-13

Short

Term

Investments

4.1%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

4.1%

b,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

....

United

States

42,407,898

$

42,407,898

Total

Money

Market

Funds

(Cost

$42,407,898)

..................................

42,407,898

Total

Short

Term

Investments

(Cost

$42,407,898

)

................................

42,407,898

a

Total

Investments

(Cost

$945,407,438)

100.0%

..................................

$1,046,044,962

Other

Assets,

less

Liabilities

(0.0)%

†

...........................................

(23,207)

Net

Assets

100.0%

...........................................................

$1,046,021,755

†

Rounds

to

less

than

0.1%

of

net

assets.

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

December

31,

2022

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSV-14

Franklin

Small

Cap

Value

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$902,999,540

Cost

-

Non-controlled

affiliates

(Not

e

3e)

........................................................

42,407,898

Value

-

Unaffiliated

issuers

..................................................................

$1,003,637,064

Value

-

Non-controlled

affiliates

(Not

e

3e)

.......................................................

42,407,898

Cash

....................................................................................

185

Foreign

currency,

at

value

(cost

$100,376)

........................................................

100,376

Receivables:

Investment

securities

sold

...................................................................

5,263,693

Capital

shares

sold

........................................................................

132,853

Dividends

and

interest

.....................................................................

812,653

Total

assets

..........................................................................

1,052,354,722

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

4,461,599

Capital

shares

redeemed

...................................................................

996,888

Management

fees

.........................................................................

566,175

Distribution

fees

..........................................................................

214,422

Trustees'

fees

and

expenses

.................................................................

952

Accrued

expenses

and

other

liabilities

...........................................................

92,931

Total

liabilities

.........................................................................

6,332,967

Net

assets,

at

value

.................................................................

$1,046,021,755

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$885,765,759

Total

distributable

earnings

(losses)

.............................................................

160,255,996

Net

assets,

at

value

.................................................................

$1,046,021,755

Franklin

Small

Cap

Value

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$66,574,326

Shares

outstanding

........................................................................

4,999,005

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$13.32

Class

2:

Net

assets,

at

value

.......................................................................

$943,928,404

Shares

outstanding

........................................................................

75,339,368

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.53

Class

4:

Net

assets,

at

value

.......................................................................

$35,519,025

Shares

outstanding

........................................................................

2,718,398

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$13.07

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2022

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSV-15

Franklin

Small

Cap

Value

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$264,898)

Unaffiliated

issuers

........................................................................

$15,205,619

Non-controlled

affiliates

(Not

e

3e)

.............................................................

420,835

Total

investment

income

...................................................................

15,626,454

Expenses:

Management

fees

(Note

3

a

)

...................................................................

7,024,693

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

2,474,060

    Class

4

................................................................................

122,907

Custodian

fees

(Note

4

)

......................................................................

16,680

Reports

to

shareholders

fees

..................................................................

(290,055)

Professional

fees

...........................................................................

71,583

Trustees'

fees

and

expenses

..................................................................

12,836

Other

....................................................................................

34,425

Total

expenses

.........................................................................

9,467,129

Expense

reductions

(Note

4

)

...............................................................

(540)

Expenses

waived/paid

by

affiliates

(Not

e

3e)

...................................................

(101,506)

Net

expenses

.........................................................................

9,365,083

Net

investment

income

................................................................

6,261,371

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

60,809,819

Foreign

currency

transactions

................................................................

(119,169)

Net

realized

gain

(loss)

..................................................................

60,690,650

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(191,277,709)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(3,644)

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(191,281,353)

Net

realized

and

unrealized

gain

(loss)

............................................................

(130,590,703)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(124,329,332)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSV-16

Franklin

Small

Cap

Value

VIP

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$6,261,371

$11,128,647

Net

realized

gain

(loss)

.................................................

60,690,650

199,440,417

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(191,281,353)

78,093,890

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(124,329,332)

288,662,954

Distributions

to

shareholders:

Class

1

.............................................................

(12,921,313)

(2,642,045)

Class

2

.............................................................

(192,841,212)

(45,737,885)

Class

4

.............................................................

(6,602,855)

(1,174,804)

Total

distributions

to

shareholders

..........................................

(212,365,380)

(49,554,734)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

13,087,805

12,468,955

Class

2

.............................................................

114,308,909

(189,934,717)

Class

4

.............................................................

7,833,350

2,438,024

Total

capital

share

transactions

............................................

135,230,064

(175,027,738)

Net

increase

(decrease)

in

net

assets

...................................

(201,464,648)

64,080,482

Net

assets:

Beginning

of

year

.......................................................

1,247,486,403

1,183,405,921

End

of

year

...........................................................

$1,046,021,755

$1,247,486,403

Franklin

Templeton

Variable

Insurance

Products

Trust

FSV-17

Annual

Report

Notes

to

Financial

Statements

Franklin

Small

Cap

Value

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.

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

Codification

Topic

946,

Financial

Services

–

investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

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

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

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,

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

December

31,

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

FSV-18

Annual

Report

Franklin

Small

Cap

Value

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.

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

December

31,

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

FSV-19

Annual

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

December

31,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

559,337

$8,439,708

1,117,537

$20,319,471

Shares

issued

in

reinvestment

of

distributions

..........

986,475

12,607,150

136,633

2,503,125

Shares

redeemed

...............................

(545,857)

(7,959,053)

(581,230)

(10,353,641)

Net

increase

(decrease)

..........................

999,955

$13,087,805

672,940

$12,468,955

Class

2

Shares:

Shares

sold

...................................

6,016,538

$85,234,670

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

...............................

(11,441,905)

(163,766,973)

(21,998,749)

(373,161,098)

Net

increase

(decrease)

..........................

10,591,345

$114,308,909

(11,334,628)

$(189,934,717)

Class

4

Shares:

Shares

sold

...................................

604,120

$8,725,654

593,014

$10,356,001

Shares

issued

in

reinvestment

of

distributions

..........

525,705

6,602,855

65,014

1,174,804

Shares

redeemed

...............................

(513,829)

(7,495,159)

(521,176)

(9,092,781)

Net

increase

(decrease)

..........................

615,996

$7,833,350

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

FSV-20

Annual

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

year

ended

December

31,

2022,

the

gross

effective

investment

management

fee

rate

was

0.643%

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

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

FSV-21

Annual

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

year

ended

December

31,

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

year

ended

December

31,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations.

5.

Income

Taxes

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021,

was

as

follows:

At

December

31,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

for

income

tax

purposes

were

as

follows:

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

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,

3.782%

$

24,112,773

$

288,039,926

$

(269,744,801)

$

—

$

—

$

42,407,898

42,407,898

$

420,835

Total

Affiliated

Securities

...

$24,112,773

$288,039,926

$(269,744,801)

$—

$—

$42,407,898

$420,835

2022

2021

Distributions

paid

from:

Ordinary

income

..........................................................

$85,205,129

$29,683,290

Long

term

capital

gain

......................................................

127,160,251

19,871,444

$212,365,380

$49,554,734

Cost

of

investments

..........................................................................

$950,294,690

Unrealized

appreciation

........................................................................

$147,644,454

Unrealized

depreciation

........................................................................

(51,894,182)

Net

unrealized

appreciation

(depreciation)

..........................................................

$95,750,272

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$5,244,139

Undistributed

long

term

capital

gains

..............................................................

59,265,627

Total

distributable

earnings

.....................................................................

$64,509,766

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSV-22

Annual

Report

Franklin

Small

Cap

Value

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

treatment

of

wash

sales.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2022,

aggregated

$587,232,517

and

$677,152,394,

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

matured

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.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

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

year

ended

December

31,

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.)

5.

Income

Taxes

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSV-23

Annual

Report

Franklin

Small

Cap

Value

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

December

31,

2022,

in

valuing

the

Fund's assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Small

Cap

Value

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

—

$

8,025,115

$

—

$

8,025,115

Auto

Components

......................

12,087,632

—

—

12,087,632

Banks

...............................

137,752,326

—

—

137,752,326

Building

Products

......................

40,329,783

—

—

40,329,783

Chemicals

...........................

37,645,592

14,563,331

—

52,208,923

Commercial

Services

&

Supplies

...........

17,486,480

—

—

17,486,480

Communications

Equipment

..............

25,268,007

—

—

25,268,007

Construction

&

Engineering

...............

25,591,491

—

—

25,591,491

Construction

Materials

..................

16,816,845

—

—

16,816,845

Consumer

Finance

.....................

1,151,379

—

—

1,151,379

Electric

Utilities

........................

5,410,834

—

—

5,410,834

Electrical

Equipment

....................

13,602,373

—

—

13,602,373

Electronic

Equipment,

Instruments

&

Components

........................

50,643,777

—

—

50,643,777

Energy

Equipment

&

Services

.............

24,401,659

—

—

24,401,659

Equity

Real

Estate

Investment

Trusts

(REITs)

.

34,063,586

—

—

34,063,586

Food

Products

........................

11,913,777

28,493,670

—

40,407,447

Health

Care

Equipment

&

Supplies

.........

40,198,802

—

—

40,198,802

Hotels,

Restaurants

&

Leisure

.............

54,047,730

5,735,548

—

59,783,278

Household

Durables

....................

16,525,551

—

—

16,525,551

Insurance

............................

65,550,612

—

—

65,550,612

Leisure

Products

.......................

5,200,356

—

—

5,200,356

Machinery

............................

34,636,135

—

—

34,636,135

Metals

&

Mining

.......................

21,154,432

—

—

21,154,432

Multi-Utilities

..........................

6,352,827

—

—

6,352,827

Oil,

Gas

&

Consumable

Fuels

.............

47,855,755

—

—

47,855,755

Professional

Services

...................

7,924,297

—

—

7,924,297

Real

Estate

Management

&

Development

....

13,450,283

—

—

13,450,283

Road

&

Rail

..........................

12,364,410

—

—

12,364,410

Semiconductors

&

Semiconductor

Equipment

.

18,491,534

—

—

18,491,534

Software

.............................

29,887,005

4,723,614

—

34,610,619

Specialty

Retail

........................

9,360,632

—

—

9,360,632

Textiles,

Apparel

&

Luxury

Goods

..........

11,190,232

—

—

11,190,232

Thrifts

&

Mortgage

Finance

...............

19,276,120

—

—

19,276,120

Trading

Companies

&

Distributors

..........

74,463,532

—

—

74,463,532

Short

Term

Investments

...................

42,407,898

—

—

42,407,898

Total

Investments

in

Securities

...........

$984,503,684

$61,541,278

a

$—

$1,046,044,962

a

Includes

foreign

securities

valued

at

$61,541,278,

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

FSV-24

Annual

Report

Franklin

Small

Cap

Value

VIP

Fund

(continued)

11.

New

Accounting

Pronouncements

In June

2022,

the

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

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

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

other

than

those

already

disclosed

in

the

financial

statements.

Franklin

Templeton

Variable

Insurance

Products

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

FSV-25

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Templeton

Variable

Insurance

Products

Trust

and

Shareholders

of

Franklin

Small

Cap

Value

VIP

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Franklin

Small

Cap

Value

VIP

Fund

(one

of

the

funds

constituting

Franklin

Templeton

Variable

Insurance

Products

Trust,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2022,

the

related

statement

of

operations

for

the

year

ended

December

31,

2022,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2022,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Templeton

Variable

Insurance

Products

Trust

Tax

Information

(unaudited)

FSV-26

Annual

Report

Franklin

Small

Cap

Value

VIP

Fund

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2022:

Pursuant

to:

Amount

Reported

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$127,160,251

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$11,754,655

FSC-1

Annual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

This

annual

report

for

Franklin

Small-Mid

Cap

Growth

VIP

Fund

covers

the

fiscal

year

ended

December

31,

2022

.

Class

4

Performance

Summary

as

of

December

31,

2022

Average

annual

total

return

of

Class

4

shares*

represents

the

average

annual

change

in

value,

assuming

reinvestment

of

dividends

and

capital

gains.

Average

returns

smooth

out

variations

in

returns,

which

can

be

significant;

they

are

not

the

same

as

year-by-year

results.

*The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Performance

reflects

the

Fund’s

Class

4

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.

Share

Class

Average

Annual

Total

Return

–

4

1-Year

-33.76%

5-Year

+6.96%

10-Year

+9.79%

FSC-2

Annual

Report

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

(12/31/12–

12/31/22

)

The

graph

below

shows

the

change

in

value

of

a

hypothetical

$10,000

investment

in

the

Fund

over

the

indicated

period

and

includes

reinvestment

of

any

income

or

distributions.

The

Fund’s

performance*

is

compared

to

the

performance

of

the

Russell

Midcap

®

Growth

Index

and

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

).

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Important

Notes

to

Performance

Information

preceding

the

Fund

Summaries.

**Source:

FactSet.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

FSC-3

Annual

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

(small-cap)

and

mid-capitalization

(mid-cap)

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.

Investors

should

be

comfortable

with

fluctuations

in

the

value

of

their

investment,

as

small

and

midsized

company

stocks

can

be

volatile,

especially

over

the

short

term.

Smaller

or

relatively

new

or

unseasoned

companies

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger,

more

established

companies.

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.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

one-year

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

narrow

benchmark,

the

Russell

Midcap

®

Growth

Index,

posted

a

-26.72%

total

return

for

the

same

period.

2

The

Fund’s

broad

benchmark,

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

posted

a

-18.11%

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

the

report.

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

S&P

500

®

,

posted

a

-18.11%

total

return

for

the

12

months

ended

December

31,

2022.

2

High

inflation,

rising

interest

rates

and

geopolitical

instability

contributed

to

a

sharp

decline

in

equity

prices

and

contracting

economic

growth

in

the

first

half

of

the

reporting

period.

Nevertheless,

consumer

spending

continued

to

Portfolio

Composition

12/31/22

%

of

Total

Net

Assets

Software

12.3%

Health

Care

Equipment

&

Supplies

6.1%

Hotels,

Restaurants

&

Leisure

5.9%

Specialty

Retail

5.9%

Life

Sciences

Tools

&

Services

5.8%

IT

Services

4.5%

Capital

Markets

4.5%

Semiconductors

&

Semiconductor

Equipment

4.1%

Electronic

Equipment,

Instruments

&

Components

2.9%

Biotechnology

2.8%

Equity

Real

Estate

Investment

Trusts

(REITs)

2.6%

Road

&

Rail

2.6%

Textiles,

Apparel

&

Luxury

Goods

2.6%

Oil,

Gas

&

Consumable

Fuels

2.3%

Other*

29.3%

Short-Term

Investments

&

Other

Net

Assets

5.8%

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-4

Annual

Report

rise,

but

deteriorating

financial

conditions

and

investors’

expectations

for

slower

growth

continued

to

weigh

on

equity

markets.

Inflation

increased

during

the

first

half

of

the

period,

reaching

9.1%

in

June

2022,

the

highest

annual

rate

since

1981.

Continued

supply-chain

disruptions,

strong

consumer

demand,

and

volatile

energy

prices

drove

inflation

higher.

Russia’s

invasion

of

Ukraine

also

disrupted

financial

markets

and

led

to

a

rise

in

oil

and

commodity

prices

in

the

first

half

of

the

reporting

period.

Inflation

remained

elevated

but

abated

somewhat

in

the

latter

half

of

the

period,

decreasing

to

an

annual

rate

of

7.1%

in

November

2022.

The

labor

market

remained

strong

amid

the

high

level

of

nominal

growth,

which

drove

the

U.S.

unemployment

rate

down

to

3.5%

in

December

2022.

Wages

also

climbed

at

the

fastest

rate

in

decades,

which

added

to

some

investors’

inflation

concerns.

U.S.

gross

domestic

product

grew

in

the

second

half

of

2022

after

contracting

in

the

first

half

of

the

year.

Rising

interest

rates

translated

to

higher

borrowing

costs

for

individuals

and

businesses,

which

dampened

economic

activity,

especially

in

the

housing

and

financial

markets.

In

the

second

half

of

the

period,

rising

consumer

spending

and

increased

exports

amid

declining

inflation

led

to

solid

economic

growth.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

undertook

a

rapid

shift

toward

restrictive

monetary

policy,

starting

in

March

2022

with

its

first

rate

hike

since

2018.

Thereafter,

the

Fed

raised

the

federal

funds

rate

at

each

of

its

six

subsequent

meetings

to

end

the

period

at

a

range

of

4.25%–4.50%.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings

and

anticipated

additional

interest-rate

increases

at

future

meetings

to

curtail

inflation.

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

period

under

review,

the

Fund

underperformed

the

Russell

Midcap

®

Growth

Index

during

a

year

of

punishing

losses

for

financial

markets.

Elevated

inflation

and

tighter

monetary

policy

drove

worries

about

economic

prospects

and

took

a

toll

on

economic

activity.

Much

of

the

Fund’s

underperformance

was

due

to

stock

selection

in

the

information

technology

(IT)

sector,

which

was

our

largest

sector

exposure.

Weakness

in

the

sector

came

from

our

holding

in

SiTime,

which

designs

and

develops

timing

systems

that

have

applications

in

various

markets

such

as

automotive,

industrial,

Internet

of

Things,

mobile,

consumer,

and

aerospace

and

defense.

Despite

reporting

record-level

revenue

over

the

period,

the

chipmaker

faced

a

slowdown

in

order

growth

and

meaningfully

reduced

its

outlook.

Also

in

the

semiconductor

space,

an

underweighting

in

Enphase

Energy,

which

manufactures

chips

for

solar

power,

hindered

relative

returns.

Nonetheless,

semiconductors

as

an

industry

are

at

the

heart

of

digital

transformation

that

is

extending

across

all

types

of

businesses.

While

an

underweighting

in

the

energy

sector

dampened

relative

returns,

our

position

in

Coterra

Energy

was

a

top

contributor

for

the

period.

The

diversified

energy

producer

benefited

from

historically

high

energy

prices.

Turning

to

contributors,

stock

selection

in

the

consumer

discretionary

sector

and

a

position

in

licensed

sports

merchandiser

Fanatics

Holdings

proved

positive

for

relative

Top

10

Holdings

12/31/22

Company

Industry

%

of

Total

Net

Assets

a

aa

Synopsys,

Inc.

2.8%

Software

Chipotle

Mexican

Grill,

Inc.

2.2%

Hotels,

Restaurants

&

Leisure

Dexcom,

Inc.

2.1%

Health

Care

Equipment

&

Supplies

Old

Dominion

Freight

Line,

Inc.

2.1%

Road

&

Rail

Mettler-Toledo

International,

Inc.

2.1%

Life

Sciences

Tools

&

Services

Lululemon

Athletica,

Inc.

2.0%

Textiles,

Apparel

&

Luxury

Goods

Fanatics

Holdings,

Inc.

1.9%

Leisure

Products

MSCI,

Inc.

1.9%

Capital

Markets

Fastenal

Co.

1.8%

Trading

Companies

&

Distributors

IDEXX

Laboratories,

Inc.

1.8%

Health

Care

Equipment

&

Supplies

Franklin

Small-Mid

Cap

Growth

VIP

Fund

FSC-5

Annual

Report

performance.

The

company’s

e-commerce

business

has

been

exceeding

expectations

and

delivering

outsized

growth

and

improved

profits.

In

the

industrials

sector,

real

estate

data

and

analytics

company

CoStar

Group

boosted

relative

returns.

The

company

saw

strong

growth

in

its

rental

(Apartments.com)

and

leasing

(LoopNet)

businesses.

Conversely,

a

position

in

Lyft

in

the

industrials

sector

detracted

from

relative

performance.

The

ride-share

company

faced

several

headwinds

that

included

an

increase

in

driver

incentives

and

higher

gas

prices.

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

December

31,

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

4

Fund

Expenses

Franklin

Small-Mid

Cap

Growth

VIP

Fund

FSC-6

Annual

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

184/365

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

7/1/22

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

4

$1,000

$1,017.10

$5.45

$1,019.80

$5.45

1.07%

FSC-7

Annual

Report

GOF

VIP

P1

P2

P4

P5

12/22

SUPPLEMENT

DATED

DECEMBER

23,

2022

TO

THE

CURRENTLY

EFFECTIVE

PROSPECTUSES

OF

EACH

FUND

LISTED

BELOW

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

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

TEMPLETON

DEVELOPING

MARKETS

VIP

FUND

TEMPLETON

FOREIGN

VIP

FUND

TEMPLETON

GLOBAL

BOND

VIP

FUND

TEMPLETON

GROWTH

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

I.

For

Franklin

Allocation

VIP

Fund,

Franklin

Global

Real

Estate

VIP

Fund,

Franklin

Income

VIP

Fund,

Franklin

Strategic

Income

VIP

Fund

and

Franklin

VolSmart

Allocation

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-

focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-

term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

II.

For

Franklin

Dynatech

VIP

Fund,

Franklin

Growth

and

Income

VIP

Fund,

Franklin

Large

Cap

Growth

VIP

Fund,

Franklin

Rising

Dividends

VIP

Fund,

Franklin

Small-Mid

Cap

Growth

VIP

Fund,

Templeton

Developing

Markets

VIP

Fund,

Templeton

Global

Bond

VIP

Fund,

Templeton

Foreign

VIP

Fund

and

Templeton

Growth

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

FSC-8

Annual

Report

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

In

certain

circumstances,

there

may

be

times

when

not

every

investment

is

assessed

for

ESG

factors

and,

when

they

are,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

III.

For

Franklin

U.S.

Government

Securities

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

Social

and

Governance

Considerations

Social

and/or

governance

considerations

are

not

the

only

factors

considered

by

the

investment

manager

and

may

not

be

a

determinative

factor

in

the

investment

manager’s

selection

of

securities

for

the

Fund.

In

addition,

the

investment

manager

may

not

be

able

to

give

such

considerations

meaningful

weight

if

the

availability

of

appropriate

securities

for

the

Fund’s

portfolio

is

limited.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

certain

investments

may

differ

from

that

of

investors,

third

party

service

providers,

such

as

ratings

providers,

or

other

funds.

While

the

investment

manager

views

social

and

governance

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSC-9

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$26.72

$26.99

$19.74

$17.04

$19.71

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.03)

(0.15)

(0.07)

(0.04)

(0.05)

Net

realized

and

unrealized

gains

(losses)

...........

(9.01)

2.79

9.96

5.31

(0.70)

Total

from

investment

operations

....................

(9.04)

2.64

9.89

5.27

(0.75)

Less

distributions

from:

Net

realized

gains

.............................

(4.26)

(2.91)

(2.64)

(2.57)

(1.92)

Net

asset

value,

end

of

year

.......................

$13.42

$26.72

$26.99

$19.74

$17.04

Total

return

c

...................................

(33.52)%

10.25%

55.52%

31.80%

(5.15)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.79%

0.83%

0.85%

0.84%

0.86%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.77%

0.82%

0.84%

0.83%

0.85%

Net

investment

(loss)

............................

(0.16)%

(0.55)%

(0.33)%

(0.19)%

(0.24)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$60,901

$79,526

$72,039

$43,169

$33,518

Portfolio

turnover

rate

............................

41.30%

43.35%

48.93%

59.07%

44.78%

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.

d

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)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSC-10

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$22.39

$23.11

$17.29

$15.22

$17.83

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.06)

(0.19)

(0.11)

(0.08)

(0.09)

Net

realized

and

unrealized

gains

(losses)

...........

(7.56)

2.38

8.57

4.72

(0.60)

Total

from

investment

operations

....................

(7.62)

2.19

8.46

4.64

(0.69)

Less

distributions

from:

Net

realized

gains

.............................

(4.26)

(2.91)

(2.64)

(2.57)

(1.92)

Net

asset

value,

end

of

year

.......................

$10.51

$22.39

$23.11

$17.29

$15.22

Total

return

c

...................................

(33.69)%

10.01%

55.09%

31.44%

(5.37)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.04%

1.08%

1.10%

1.09%

1.11%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.02%

1.07%

1.09%

1.08%

1.10%

Net

investment

(loss)

............................

(0.43)%

(0.80)%

(0.61)%

(0.44)%

(0.49)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$293,545

$472,565

$503,032

$372,442

$310,300

Portfolio

turnover

rate

............................

41.30%

43.35%

48.93%

59.07%

44.78%

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.

d

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.

Annual

Report

FSC-11

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$23.62

$24.26

$18.04

$15.81

$18.47

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.07)

(0.22)

(0.14)

(0.10)

(0.11)

Net

realized

and

unrealized

gains

(losses)

...........

(7.98)

2.49

9.00

4.90

(0.63)

Total

from

investment

operations

....................

(8.05)

2.27

8.86

4.80

(0.74)

Less

distributions

from:

Net

realized

gains

.............................

(4.26)

(2.91)

(2.64)

(2.57)

(1.92)

Net

asset

value,

end

of

year

.......................

$11.31

$23.62

$24.26

$18.04

$15.81

Total

return

c

...................................

(33.76)%

9.86%

55.01%

31.26%

(5.46)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.14%

1.18%

1.20%

1.19%

1.21%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.12%

1.17%

1.19%

1.18%

1.20%

Net

investment

(loss)

............................

(0.52)%

(0.90)%

(0.71)%

(0.54)%

(0.59)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$17,786

$26,518

$25,580

$17,662

$13,759

Portfolio

turnover

rate

............................

41.30

%

43.35%

48.93%

59.07%

44.78%

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments,

December

31,

2022

Franklin

Small-Mid

Cap

Growth

VIP

Fund

Annual

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

93.0%

Aerospace

&

Defense

1.6%

TransDigm

Group,

Inc.

.................................

United

States

9,400

$

5,918,710

Airlines

1.4%

a

Delta

Air

Lines,

Inc.

....................................

United

States

157,700

5,182,022

Auto

Components

0.1%

a,b

Mobileye

Global,

Inc.,

A

.................................

Israel

6,200

217,372

Banks

1.1%

First

Republic

Bank

....................................

United

States

12,400

1,511,436

a

SVB

Financial

Group

...................................

United

States

11,300

2,600,582

4,112,018

Beverages

0.6%

Brown-Forman

Corp.,

B

................................

United

States

36,200

2,377,616

Biotechnology

2.8%

a

Alnylam

Pharmaceuticals,

Inc.

............................

United

States

14,700

3,493,455

a

Incyte

Corp.

.........................................

United

States

17,400

1,397,568

a

Neurocrine

Biosciences,

Inc.

.............................

United

States

12,600

1,504,944

a

PTC

Therapeutics,

Inc.

.................................

United

States

51,100

1,950,487

a

Seagen

,

Inc.

.........................................

United

States

16,300

2,094,713

10,441,167

Building

Products

1.5%

Trane

Technologies

plc

.................................

United

States

33,600

5,647,824

Capital

Markets

4.5%

Ares

Management

Corp.

................................

United

States

68,500

4,688,140

LPL

Financial

Holdings,

Inc.

.............................

United

States

10,700

2,313,019

MSCI,

Inc.

...........................................

United

States

15,400

7,163,618

Tradeweb

Markets,

Inc.,

A

...............................

United

States

38,400

2,493,312

16,658,089

Chemicals

0.3%

Albemarle

Corp.

......................................

United

States

4,700

1,019,242

Commercial

Services

&

Supplies

1.3%

Republic

Services,

Inc.

.................................

United

States

37,500

4,837,125

Communications

Equipment

1.7%

a

Arista

Networks,

Inc.

...................................

United

States

50,800

6,164,580

Containers

&

Packaging

1.4%

Avery

Dennison

Corp.

..................................

United

States

28,700

5,194,700

Electrical

Equipment

2.0%

AMETEK,

Inc.

........................................

United

States

10,600

1,481,032

Rockwell

Automation,

Inc.

...............................

United

States

23,800

6,130,166

7,611,198

Electronic

Equipment,

Instruments

&

Components

2.9%

Cognex

Corp.

........................................

United

States

47,500

2,237,725

a

Keysight

Technologies,

Inc.

..............................

United

States

29,750

5,089,332

a

Zebra

Technologies

Corp.,

A

.............................

United

States

13,900

3,564,099

10,891,156

Entertainment

0.4%

a

ROBLOX

Corp.,

A

.....................................

United

States

50,300

1,431,538

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSC-13

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Equity

Real

Estate

Investment

Trusts

(REITs)

2.6%

Equity

LifeStyle

Properties,

Inc.

...........................

United

States

49,800

$

3,217,080

SBA

Communications

Corp.

.............................

United

States

13,157

3,688,039

Terreno

Realty

Corp.

...................................

United

States

48,750

2,772,412

9,677,531

Food

Products

0.4%

a

Freshpet

,

Inc.

........................................

United

States

25,200

1,329,804

Health

Care

Equipment

&

Supplies

6.1%

a

Dexcom

,

Inc.

.........................................

United

States

70,252

7,955,336

a

IDEXX

Laboratories,

Inc.

................................

United

States

16,250

6,629,350

a

Inari

Medical,

Inc.

.....................................

United

States

30,200

1,919,512

a

Insulet

Corp.

.........................................

United

States

18,100

5,328,459

a

Penumbra,

Inc.

.......................................

United

States

4,000

889,840

22,722,497

Health

Care

Providers

&

Services

0.6%

a

HealthEquity

,

Inc.

.....................................

United

States

38,300

2,360,812

Health

Care

Technology

1.8%

a

Certara

,

Inc.

.........................................

United

States

82,900

1,332,203

a

Veeva

Systems,

Inc.,

A

.................................

United

States

32,700

5,277,126

6,609,329

Hotels,

Restaurants

&

Leisure

5.9%

a

Chipotle

Mexican

Grill,

Inc.

..............................

United

States

5,830

8,089,067

Darden

Restaurants,

Inc.

...............................

United

States

33,100

4,578,723

a

Expedia

Group,

Inc.

...................................

United

States

42,600

3,731,760

Vail

Resorts,

Inc.

......................................

United

States

13,300

3,170,055

a

Wynn

Resorts

Ltd.

....................................

United

States

29,600

2,441,112

22,010,717

Household

Durables

1.5%

a

NVR,

Inc.

...........................................

United

States

1,182

5,452,070

Interactive

Media

&

Services

1.7%

a

Match

Group,

Inc.

.....................................

United

States

79,024

3,278,706

a

Pinterest,

Inc.,

A

......................................

United

States

130,200

3,161,256

6,439,962

IT

Services

4.5%

a,c

Adyen

NV,

144A,

Reg

S

................................

Netherlands

1,700

2,359,914

a

Cloudflare

,

Inc.,

A

.....................................

United

States

71,300

3,223,473

a

MongoDB,

Inc.

.......................................

United

States

18,200

3,582,488

Paychex,

Inc.

........................................

United

States

49,200

5,685,552

a

Shopify,

Inc.,

A

.......................................

Canada

59,000

2,047,890

16,899,317

Leisure

Products

1.9%

a,d,e

Fanatics

Holdings,

Inc.

.................................

United

States

94,539

7,201,036

Life

Sciences

Tools

&

Services

5.8%

a

10X

Genomics,

Inc.,

A

..................................

United

States

47,900

1,745,476

Agilent

Technologies,

Inc.

...............................

United

States

19,800

2,963,070

Bio-

Techne

Corp.

.....................................

United

States

62,900

5,213,152

a

Mettler

-Toledo

International,

Inc.

..........................

United

States

5,280

7,631,976

West

Pharmaceutical

Services,

Inc.

........................

United

States

17,800

4,189,230

21,742,904

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSC-14

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Machinery

1.4%

IDEX

Corp.

..........................................

United

States

18,450

$

4,212,689

a

Proterra

,

Inc.

.........................................

United

States

256,300

966,251

5,178,940

Oil,

Gas

&

Consumable

Fuels

2.3%

Cheniere

Energy,

Inc.

..................................

United

States

10,700

1,604,572

Coterra

Energy,

Inc.

...................................

United

States

85,300

2,095,821

Hess

Corp.

..........................................

United

States

21,300

3,020,766

Targa

Resources

Corp.

.................................

United

States

25,200

1,852,200

8,573,359

Personal

Products

0.9%

a

BellRing

Brands,

Inc.

...................................

United

States

129,300

3,315,252

Pharmaceuticals

1.4%

a

Catalent

,

Inc.

........................................

United

States

50,200

2,259,502

a

Jazz

Pharmaceuticals

plc

...............................

United

States

18,400

2,931,304

5,190,806

Professional

Services

2.3%

a

CoStar

Group,

Inc.

....................................

United

States

77,950

6,023,976

TransUnion

..........................................

United

States

44,700

2,536,725

8,560,701

Road

&

Rail

2.6%

a

Lyft,

Inc.,

A

..........................................

United

States

178,700

1,969,274

Old

Dominion

Freight

Line,

Inc.

...........................

United

States

26,950

7,647,871

9,617,145

Semiconductors

&

Semiconductor

Equipment

4.1%

a

Enphase

Energy,

Inc.

..................................

United

States

7,900

2,093,184

KLA

Corp.

...........................................

United

States

1,400

527,842

a

Lattice

Semiconductor

Corp.

.............................

United

States

78,155

5,070,696

Monolithic

Power

Systems,

Inc.

...........................

United

States

11,450

4,048,835

a

SiTime

Corp.

.........................................

United

States

30,200

3,068,924

a

Wolfspeed

,

Inc.

.......................................

United

States

7,500

517,800

15,327,281

Software

11.3%

a

Alkami

Technology,

Inc.

.................................

United

States

108,925

1,589,216

a

ANSYS,

Inc.

.........................................

United

States

22,900

5,532,411

a

Arteris

,

Inc.

..........................................

United

States

124,800

536,640

a

Atlassian

Corp.,

A

.....................................

United

States

17,000

2,187,560

a

Bill.com

Holdings,

Inc.

..................................

United

States

23,648

2,576,686

a

Crowdstrike

Holdings,

Inc.,

A

.............................

United

States

44,300

4,664,347

a

Datadog

,

Inc.,

A

......................................

United

States

15,600

1,146,600

a

Monday.com

Ltd.

......................................

United

States

23,500

2,867,000

a

Palo

Alto

Networks,

Inc.

................................

United

States

22,100

3,083,834

a

Paylocity

Holding

Corp.

.................................

United

States

22,150

4,302,859

a

Synopsys,

Inc.

.......................................

United

States

33,050

10,552,534

a

Zscaler

,

Inc.

.........................................

United

States

28,000

3,133,200

42,172,887

Specialty

Retail

5.9%

a

AutoZone,

Inc.

.......................................

United

States

2,100

5,178,978

a

Burlington

Stores,

Inc.

..................................

United

States

24,600

4,987,896

a

Five

Below,

Inc.

.......................................

United

States

21,650

3,829,235

a

Petco

Health

&

Wellness

Co.,

Inc.

.........................

United

States

137,900

1,307,292

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSC-15

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Specialty

Retail

(continued)

Tractor

Supply

Co.

....................................

United

States

28,937

$

6,509,957

21,813,358

Textiles,

Apparel

&

Luxury

Goods

2.6%

Levi

Strauss

&

Co.,

A

..................................

United

States

124,200

1,927,584

a

Lululemon

Athletica

,

Inc.

................................

United

States

23,700

7,593,006

9,520,590

Trading

Companies

&

Distributors

1.8%

Fastenal

Co.

.........................................

United

States

144,500

6,837,740

Total

Common

Stocks

(Cost

$298,777,844)

.....................................

346,258,395

Convertible

Preferred

Stocks

1.2%

Diversified

Consumer

Services

0.2%

a,d,e

Newsela

,

Inc.,

D

......................................

United

States

48,915

679,820

a

Software

1.0%

a,d,e

Benchling

,

Inc.,

F

.....................................

United

States

35,200

648,762

a,d,e

Blaize

,

Inc.,

D

........................................

United

States

11,970

38,062

a,d,e

Blaize

,

Inc.,

D

........................................

United

States

194,302

546,028

a,d,e

Blaize

,

Inc.,

D-2

......................................

United

States

82,758

132,624

a,d,e

Databricks

,

Inc.,

G

....................................

United

States

25,878

1,263,056

a,d,e

OneTrust

LLC,

C

......................................

United

States

82,367

991,940

3,620,472

Total

Convertible

Preferred

Stocks

(Cost

$7,884,933)

............................

4,300,292

Warrants

Warrants

0.0%

†

Software

0.0%

†

a,d,e

Blaize

,

Inc.,

9/19/25

...................................

United

States

8,275

815

a,d,e

Blaize

,

Inc.,

D,

2/28/24

.................................

United

States

26,474

550

1,365

Total

Warrants

(Cost

$–)

......................................................

1,365

Total

Long

Term

Investments

(Cost

$306,662,777)

...............................

350,560,052

a

Short

Term

Investments

6.4%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

6.3%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

....

United

States

23,592,470

23,592,470

Total

Money

Market

Funds

(Cost

$23,592,470)

..................................

23,592,470

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSC-16

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

0.1%

Money

Market

Funds

0.1%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

....

United

States

204,218

$

204,218

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$204,218)

.............................................................

204,218

Total

Short

Term

Investments

(Cost

$23,796,688

)

................................

23,796,688

a

Total

Investments

(Cost

$330,459,465)

100.6%

..................................

$374,356,740

Other

Assets,

less

Liabilities

(0.6)%

...........................................

(2,124,471)

Net

Assets

100.0%

...........................................................

$372,232,269

†

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

December

31,

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

December

31,

2022,

the

value

of

this

security

was

$2,359,914,

representing

0.6%

of

net

assets.

d

Fair

valued

using

significant

unobservable

inputs.

See

Note

12

regarding

fair

value

measurements.

e

See

Note

7

regarding

restricted

securities.

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

December

31,

2022

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSC-17

Franklin

Small-

Mid

Cap

Growth

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$306,662,777

Cost

-

Non-controlled

affiliates

(Note

3e)

........................................................

23,796,688

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$200,158)

...................................

$350,560,052

Value

-

Non-controlled

affiliates

(Note

3e)

.......................................................

23,796,688

Cash

....................................................................................

22,228

Receivables:

Investment

securities

sold

...................................................................

249,272

Capital

shares

sold

........................................................................

3,970

Dividends

and

interest

.....................................................................

103,711

Total

assets

..........................................................................

374,735,921

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

1,753,035

Capital

shares

redeemed

...................................................................

162,581

Management

fees

.........................................................................

250,027

Distribution

fees

..........................................................................

69,360

Trustees'

fees

and

expenses

.................................................................

1,029

Payable

upon

return

of

securities

loaned

(Note

1

c

)

..................................................

204,218

Accrued

expenses

and

other

liabilities

...........................................................

63,402

Total

liabilities

.........................................................................

2,503,652

Net

assets,

at

value

.................................................................

$372,232,269

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$355,690,975

Total

distributable

earnings

(losses)

.............................................................

16,541,294

Net

assets,

at

value

.................................................................

$372,232,269

Franklin

Small-

Mid

Cap

Growth

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$60,901,484

Shares

outstanding

........................................................................

4,537,269

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$13.42

Class

2:

Net

assets,

at

value

.......................................................................

$293,544,778

Shares

outstanding

........................................................................

27,928,502

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$10.51

Class

4:

Net

assets,

at

value

.......................................................................

$17,786,007

Shares

outstanding

........................................................................

1,571,976

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.31

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2022

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSC-18

Franklin

Small-

Mid

Cap

Growth

VIP

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

........................................................................

$2,165,954

Non-controlled

affiliates

(Note

3e)

.............................................................

314,449

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

26,433

Non-controlled

affiliates

(Note

3

e

)

.............................................................

4,964

Total

investment

income

...................................................................

2,511,800

Expenses:

Management

fees

(Note

3

a

)

...................................................................

3,341,691

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

836,670

    Class

4

................................................................................

69,499

Custodian

fees

(Note

4

)

......................................................................

3,931

Reports

to

shareholders

fees

..................................................................

(146,154)

Professional

fees

...........................................................................

69,669

Trustees'

fees

and

expenses

..................................................................

5,869

Other

....................................................................................

38,299

Total

expenses

.........................................................................

4,219,474

Expense

reductions

(Note

4

)

...............................................................

(66)

Expenses

waived/paid

by

affiliates

(Note

3e)

...................................................

(77,849)

Net

expenses

.........................................................................

4,141,559

Net

investment

income

(loss)

............................................................

(1,629,759)

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

(27,497,995)

Foreign

currency

transactions

................................................................

(5,922)

Net

realized

gain

(loss)

..................................................................

(27,503,917)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(163,693,691)

Net

realized

and

unrealized

gain

(loss)

............................................................

(191,197,608)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(192,827,367)

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.

Annual

Report

FSC-19

Franklin

Small-Mid

Cap

Growth

VIP

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

............................................

$(1,629,759)

$(4,651,887)

Net

realized

gain

(loss)

.................................................

(27,503,917)

110,267,902

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(163,693,691)

(48,020,742)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(192,827,367)

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

.............................................................

22,252,629

7,817,577

Class

2

.............................................................

64,583,757

(19,844,931)

Class

4

.............................................................

5,230,808

1,399,650

Total

capital

share

transactions

............................................

92,067,194

(10,627,704)

Net

increase

(decrease)

in

net

assets

...................................

(206,375,852)

(22,044,079)

Net

assets:

Beginning

of

year

.......................................................

578,608,121

600,652,200

End

of

year

...........................................................

$372,232,269

$578,608,121

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

Franklin

Small-Mid

Cap

Growth

VIP

Fund

FSC-20

Annual

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.

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

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.

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

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

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,

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

December

31,

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

FSC-21

Annual

Report

Franklin

Small-Mid

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.

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

FSC-22

Annual

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

December

31,

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

FSC-23

Annual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

December

31

,

202

2

,

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:

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

821,804

$13,714,783

576,234

$15,810,750

Shares

issued

in

reinvestment

of

distributions

..........

1,042,309

13,727,212

290,492

7,430,783

Shares

redeemed

...............................

(303,137)

(5,189,366)

(559,560)

(15,423,956)

Net

increase

(decrease)

..........................

1,560,976

$22,252,629

307,166

$7,817,577

Class

2

Shares:

Shares

sold

...................................

1,666,536

$23,136,529

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

...............................

(3,269,675)

(45,549,193)

(4,194,907)

(97,298,752)

Net

increase

(decrease)

..........................

6,818,586

$64,583,757

(654,532)

$(19,844,931)

Class

4

Shares:

Shares

sold

...................................

222,601

$3,473,405

227,811

$5,628,165

Shares

issued

in

reinvestment

of

distributions

..........

439,932

4,892,046

136,748

3,098,704

Shares

redeemed

...............................

(213,169)

(3,134,643)

(296,435)

(7,327,219)

Net

increase

(decrease)

..........................

449,364

$5,230,808

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

FSC-24

Annual

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

year

ended

December

31,

2022,

the

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

year

ended

December

31,

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

FSC-25

Annual

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

year

ended

December

31,

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,

2022,

the

capital

loss

carryforwards

were

as

follows:

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021,

was

as

follows:

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

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,

3.782%

$

8,439,570

$

104,909,669

$

(89,756,769)

$

—

$

—

$

23,592,470

23,592,470

$

314,449

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

$8,496,850

$34,295,576

$(42,588,208)

$—

$—

$204,218

204,218

$4,964

Total

Affiliated

Securities

...

$16,936,420

$139,205,245

$(132,344,977)

$—

$—

$23,796,688

$319,413

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$24,488,751

2022

2021

Distributions

paid

from:

Ordinary

income

..........................................................

$17,659,604

$5,306,215

Long

term

capital

gain

......................................................

87,956,075

63,705,433

$105,615,679

$69,011,648

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSC-26

Annual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

At

December

31,

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

wash

sales.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2022,

aggregated 167,548,421

and

196,131,930,

respectively.

At

December

31,

2022,

in

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received $204,218 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.

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

December

31,

2022,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

Cost

of

investments

..........................................................................

$333,326,695

Unrealized

appreciation

........................................................................

$93,889,550

Unrealized

depreciation

........................................................................

(52,859,505)

Net

unrealized

appreciation

(depreciation)

..........................................................

$41,030,045

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

$

648,762

8,275

Blaize,

Inc.,

9/19/25

..........................

9/20/22

-

9/22/22

—

815

206,272

Blaize,

Inc.,

D

..............................

3/02/21

-

11/09/21

2,154,000

584,090

26,474

Blaize,

Inc.,

D,

2/28/24

........................

3/01/21

-

11/09/21

—

550

82,758

Blaize,

Inc.,

D-2

.............................

4/01/22

-

9/20/22

399,999

132,624

25,878

Databricks,

Inc.,

G

...........................

2/01/21

1,529,975

1,263,056

94,539

Fanatics

Holdings,

Inc.

........................

8/13/20

-

3/22/21

1,669,739

7,201,036

48,915

Newsela,

Inc.,

D

.............................

1/21/21

1,034,807

679,820

82,367

OneTrust

LLC,

C

............................

4/01/21

1,615,242

991,940

Total

Restricted

Securities

(Value

is

3.1%

of

Net

Assets)

..............

$9,554,672

$11,502,693

5.

Income

Taxes

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSC-27

Annual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

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

year

ended

December

31,

2022,

investments

in

“affiliated

companies”

were

as

follows:

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

matured

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.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

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,

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares/Warrants

at

End

of

Year

Investment

Income

Franklin

Small-Mid

Cap

Growth

VIP

Fund

Non-Controlled

Affiliates

Dividends

Blaize,

Inc.,

D

.......

$

2,050,037

$

—

$

—

$

—

$

—

a

$

—

a

—

a

$

—

Blaize,

Inc.,

D,

2/28/24

.

31,313

—

—

—

—

a

—

a

—

a

—

Total

Affiliated

Securities

(Value

is

—%

of

Net

Assets)

..........

$2,081,350

$—

$—

$—

$—

$—

$—

a

As

of

December

31,

2022,

no

longer

an

affiliate.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSC-28

Annual

Report

Franklin

Small-Mid

Cap

Growth

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

year

ended

December

31,

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.

A

summary

of

inputs

used

as

of

December

31,

2022,

in

valuing

the

Fund's assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Small-Mid

Cap

Growth

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

5,918,710

$

—

$

—

$

5,918,710

Airlines

..............................

5,182,022

—

—

5,182,022

Auto

Components

......................

217,372

—

—

217,372

Banks

...............................

4,112,018

—

—

4,112,018

Beverages

...........................

2,377,616

—

—

2,377,616

Biotechnology

.........................

10,441,167

—

—

10,441,167

Building

Products

......................

5,647,824

—

—

5,647,824

Capital

Markets

........................

16,658,089

—

—

16,658,089

Chemicals

...........................

1,019,242

—

—

1,019,242

Commercial

Services

&

Supplies

...........

4,837,125

—

—

4,837,125

Communications

Equipment

..............

6,164,580

—

—

6,164,580

Containers

&

Packaging

.................

5,194,700

—

—

5,194,700

Electrical

Equipment

....................

7,611,198

—

—

7,611,198

Electronic

Equipment,

Instruments

&

Components

........................

10,891,156

—

—

10,891,156

Entertainment

.........................

1,431,538

—

—

1,431,538

Equity

Real

Estate

Investment

Trusts

(REITs)

.

9,677,531

—

—

9,677,531

Food

Products

........................

1,329,804

—

—

1,329,804

Health

Care

Equipment

&

Supplies

.........

22,722,497

—

—

22,722,497

Health

Care

Providers

&

Services

..........

2,360,812

—

—

2,360,812

Health

Care

Technology

.................

6,609,329

—

—

6,609,329

Hotels,

Restaurants

&

Leisure

.............

22,010,717

—

—

22,010,717

Household

Durables

....................

5,452,070

—

—

5,452,070

Interactive

Media

&

Services

..............

6,439,962

—

—

6,439,962

IT

Services

...........................

14,539,403

2,359,914

—

16,899,317

Leisure

Products

.......................

—

—

7,201,036

7,201,036

Life

Sciences

Tools

&

Services

............

21,742,904

—

—

21,742,904

Machinery

............................

5,178,940

—

—

5,178,940

11.

Credit

Facility

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSC-29

Annual

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 year.

At

December

31,

2022,

the

reconciliation is

as follows:

The

Level

3

financial

instruments

include

Fanatics

Holdings,

Inc.

value

at

$7,201,036,

which

is

valued

using

recent

transactions,

private

transaction

prices

or

non-public

third-party

pricing

information

which

is

unobservable.

May

also

include

fair

value

of

immaterial

assets

and/or

liabilities

developed

using

various

valuation

techniques

and

unobservable

inputs.

Level

1

Level

2

Level

3

Total

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Oil,

Gas

&

Consumable

Fuels

.............

$

8,573,359

$

—

$

—

$

8,573,359

Personal

Products

.....................

3,315,252

—

—

3,315,252

Pharmaceuticals

.......................

5,190,806

—

—

5,190,806

Professional

Services

...................

8,560,701

—

—

8,560,701

Road

&

Rail

..........................

9,617,145

—

—

9,617,145

Semiconductors

&

Semiconductor

Equipment

.

15,327,281

—

—

15,327,281

Software

.............................

42,172,887

—

—

42,172,887

Specialty

Retail

........................

21,813,358

—

—

21,813,358

Textiles,

Apparel

&

Luxury

Goods

..........

9,520,590

—

—

9,520,590

Trading

Companies

&

Distributors

..........

6,837,740

—

—

6,837,740

Convertible

Preferred

Stocks

...............

—

—

4,300,292

4,300,292

Warrants

..............................

—

—

1,365

1,365

Short

Term

Investments

...................

23,796,688

—

—

23,796,688

Total

Investments

in

Securities

...........

$360,494,133

$2,359,914

a

$11,502,693

$374,356,740

a

Includes

foreign

securities

valued

at

$2,359,914,

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.

Balance

at

Beginning

of

Year

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

Year

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Year

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

$

—

$

—

$

—

$

—

$

—

$

—

$

3,174,366

$

7,201,036

$

3,174,366

Textiles,

Apparel

&

Luxury

Goods

....

1,330,614

—

(1,068,276)

—

—

—

—

(262,338)

—

—

Convertible

Preferred

Stocks

:

Diversified

Consumer

Services

........

987,771

—

—

—

—

—

—

(307,951)

679,820

(307,951)

Software

..........

6,692,175

399,998

c

—

c

—

—

—

—

(3,471,701)

3,620,472

(3,471,701)

Warrants

:

Software

..........

31,313

—

c

—

—

—

—

—

(29,948)

1,365

(29,948)

Total

Investments

in

Securities

............

$13,068,543

$399,998

$(1,068,276)

$—

$—

$—

$—

$(897,572)

$11,502,693

$(635,234)

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

financial

instruments

determined

to

have

no

value.

12.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSC-30

Annual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(continued)

13.

New

Accounting

Pronouncements

In June

2022,

the 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

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

will

not

have

a

material

impact

on

the

financial

statements.

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

other

than

those

already

disclosed

in

the

financial

statements.

Franklin

Templeton

Variable

Insurance

Products

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

FSC-31

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Templeton

Variable

Insurance

Products

Trust

and

Shareholders

of

Franklin

Small-Mid

Cap

Growth

VIP

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Franklin

Small-Mid

Cap

Growth

VIP

Fund

(one

of

the

funds

constituting

Franklin

Templeton

Variable

Insurance

Products

Trust,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2022,

the

related

statement

of

operations

for

the

year

ended

December

31,

2022,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2022,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian,

transfer

agent,

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Templeton

Variable

Insurance

Products

Trust

Tax

Information

(unaudited)

FSC-32

Annual

Report

Franklin

Small-Mid

Cap

Growth

VIP

Fund

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2022:

Pursuant

to:

Amount

Reported

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$87,956,075

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$1,886,716

FSI-1

Annual

Report

Franklin

Strategic

Income

VIP

Fund

This

annual

report

for

Franklin

Strategic

Income

VIP

Fund

covers

the

fiscal

year

ended

December

31,

202

2

.

Class

4

Performance

Summary

as

of

December

31,

202

2

Average

annual

total

return

of

Class

4

shares*

represents

the

average

annual

change

in

value,

assuming

reinvestment

of

dividends

and

capital

gains.

Average

returns

smooth

out

variations

in

returns,

which

can

be

significant;

they

are

not

the

same

as

year-by-year

results.

*Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Performance

reflects

the

Fund’s

Class

4

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.

Share

Class

Average

Annual

Total

Return

4

1-Year

-10.84%

5-Year

-0.16%

10-Year

+1.20%

FSI-2

Annual

Report

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

(12/31/12–

12/31/2

2

)

The

graph

below

shows

the

change

in

value

of

a

hypothetical

$10,000

investment

in

the

Fund

over

the

indicated

period

and

includes

reinvestment

of

any

income

or

distributions.

The

Fund’s

performance*

is

compared

to

the

performance

of

the

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

Important

Notes

to

Performance

Information

preceding

the

Fund

Summaries.

**Source:

FactSet.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

FSI-3

Annual

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

and

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

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

one-year

total

return

in

the

Performance

Summary.

For

comparison,

the

Fund’s

benchmark,

the

Bloomberg

U.S.

Aggregate

Bond

Index,

posted

a

-13.01%

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

-13.01%

total

return

for

the

12

months

ended

December

31,

2022.

1

High

inflation

amid

a

strong

labor

market

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

course

of

the

global

economy.

While

interest

rates

increased

along

the

entire

yield

curve

(yields

for

all

Treasury

maturities),

relatively

large

increases

in

shorter-term

interest

rates

led

the

yield

curve

to

invert

during

the

reporting

period

Portfolio

Composition

12/31/22

%

of

Total

Net

Assets

Corporate

Bonds

42.8%

U.S.

Government

and

Agency

Securities

20.1%

Mortgage-Backed

Securities

6.3%

Management

Investment

Companies

6.2%

Asset-Backed

Securities

5.3%

Residential

Mortgage-Backed

Securities

4.7%

Foreign

Government

and

Agency

Securities

4.1%

Marketplace

Loans

2.3%

Other

1.0%

Short-Term

Investments

&

Other

Net

Assets

7.2%

Franklin

Strategic

Income

VIP

Fund

FSI-4

Annual

Report

as

investors

became

increasingly

concerned

about

the

economic

outlook.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

seven

times,

beginning

in

March

2022.

By

the

end

of

the

period

the

federal

funds

target

rate

stood

at

a

range

of

4.25%–4.50%,

a

full

425

basis

points

higher

than

the

beginning

of

the

year.

The

Fed

noted

in

its

December

2022

meeting

that

inflation

remained

elevated

amid

robust

job

growth

and

low

unemployment.

In

order

to

achieve

its

goal

of

2%

long-run

inflation,

the

Fed

stated

it

anticipates

making

additional

increases

to

the

federal

funds

target

rate.

Furthermore,

the

Fed

indicated

it

would

continue

to

reduce

its

U.S.

Treasury

(UST)

and

agency

debt

and

mortgage-backed

security

holdings.

UST

bonds,

as

measured

by

the

Bloomberg

U.S.

Treasury

Index,

posted

a

-12.46%

total

return

for

the

12-month

period.

1

The

10-year

UST

yield

(which

moves

inversely

to

price)

increased

sharply

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

-11.81%

total

return

for

the

period

as

mortgage

rates

rose

to

the

highest

level

in

over

two

decades

and

modest

prepayment

rates

led

to

increasing

interest-rate

sensitivity.

1

Corporate

bond

prices

also

declined,

constrained

by

inflation,

rising

interest

rates

and

concerns

about

the

impact

of

elevated

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

Index,

posted

a

-11.19%

total

return,

while

investment-grade

corporate

bonds,

as

represented

by

the

Bloomberg

U.S.

Corporate

Investment

Grade

Index,

posted

a

-15.76%

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’s

largest

allocation

remained

in

high-yield

corporate

credit,

but

we

significantly

decreased

exposure

over

the

period,

while

increasing

the

allocation

to

U.S.

Treasuries

(UST),

investment-grade

(IG)

corporate

credit

and

agency

mortgage-backed

securities

(MBS).

This

reflected

our

view

that

as

we

got

closer

to

the

peak

of

the

cycle,

shorter-term

IG

bonds

and

USTs

stood

to

benefit

first.

We

favored

moving

up

in

credit

quality

and

shortening

duration

for

the

corporate

credit

sectors.

We

also

decreased

exposure

to

senior

secured

floating-rate

loans.

We

reduced

the

allocation

to

non-agency

residential

mortgage-backed

securities

on

strong

sector

performance

for

the

year.

The

portfolio

held

a

small

allocation

to

sovereign

emerging

market

securities

(sovereign

EM),

but

meaningfully

reduced

the

allocation,

finishing

the

year

at

the

low-end

of

the

Fund’s

recent

historical

exposure

to

the

sector.

The

Fund’s

foreign

currency

investments

remained

low

at

year-

end

with

exposure

consisting

of

one

long

Dominican

peso-

denominated

bond

(maturing

in

early

2023)

and

short

euro

positions.

For

the

year,

historically

high

volatility

across

the

spectrum

of

risk

assets

drove

negative

absolute

returns

for

almost

every

sector

of

fixed

income.

The

Fund’s

large

allocation

to

credit,

especially

high-yield

corporates

and

loans,

as

well

as

negative

selection

in

sovereign

EM

hurt

relative

performance

for

the

year.

In

contrast,

the

Fund

benefited

from

our

decision

to

shorten

duration

ahead

of

the

Fed’s

historic

increase

in

short-term

rates.

Finally,

we

benefited

from

an

underweight

allocation

to

IG

corporates

and

MBS,

a

sector

that

posted

historically

high

volatility

and

the

worst

returns

in

the

index’s

47-year

history.

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.

Franklin

Strategic

Income

VIP

Fund

FSI-5

Annual

Report

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

December

31,

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

4

Fund

Expenses

Franklin

Strategic

Income

VIP

Fund

FSI-6

Annual

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

184/365

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

7/1/22

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

4

$1,000

$1,009.00

$5.14

$1,020.09

$5.17

1.02%

FSI-7

Annual

Report

GOF

VIP

P1

P2

P4

P5

12/22

SUPPLEMENT

DATED

DECEMBER

23,

2022

TO

THE

CURRENTLY

EFFECTIVE

PROSPECTUSES

OF

EACH

FUND

LISTED

BELOW

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

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

TEMPLETON

DEVELOPING

MARKETS

VIP

FUND

TEMPLETON

FOREIGN

VIP

FUND

TEMPLETON

GLOBAL

BOND

VIP

FUND

TEMPLETON

GROWTH

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

I.

For

Franklin

Allocation

VIP

Fund,

Franklin

Global

Real

Estate

VIP

Fund,

Franklin

Income

VIP

Fund,

Franklin

Strategic

Income

VIP

Fund

and

Franklin

VolSmart

Allocation

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-

focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-

term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

II.

For

Franklin

Dynatech

VIP

Fund,

Franklin

Growth

and

Income

VIP

Fund,

Franklin

Large

Cap

Growth

VIP

Fund,

Franklin

Rising

Dividends

VIP

Fund,

Franklin

Small-Mid

Cap

Growth

VIP

Fund,

Templeton

Developing

Markets

VIP

Fund,

Templeton

Global

Bond

VIP

Fund,

Templeton

Foreign

VIP

Fund

and

Templeton

Growth

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

FSI-8

Annual

Report

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

In

certain

circumstances,

there

may

be

times

when

not

every

investment

is

assessed

for

ESG

factors

and,

when

they

are,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

III.

For

Franklin

U.S.

Government

Securities

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

Social

and

Governance

Considerations

Social

and/or

governance

considerations

are

not

the

only

factors

considered

by

the

investment

manager

and

may

not

be

a

determinative

factor

in

the

investment

manager’s

selection

of

securities

for

the

Fund.

In

addition,

the

investment

manager

may

not

be

able

to

give

such

considerations

meaningful

weight

if

the

availability

of

appropriate

securities

for

the

Fund’s

portfolio

is

limited.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

certain

investments

may

differ

from

that

of

investors,

third

party

service

providers,

such

as

ratings

providers,

or

other

funds.

While

the

investment

manager

views

social

and

governance

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Strategic

Income

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-9

a

Year

Ended

December

31,

2022

2021*

2020

a

2019

a

2018

a

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$10.64

$10.76

$10.93

$10.65

$11.15

Income

from

investment

operations

b

:

Net

investment

income

c

.........................

0.37

0.33

0.36

0.45

0.47

Net

realized

and

unrealized

gains

(losses)

...........

(1.49)

(0.08)

0.01

0.43

(0.65)

Total

from

investment

operations

....................

(1.12)

0.25

0.37

0.88

(0.18)

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

(0.43)

(0.37)

(0.54)

(0.60)

(0.32)

Net

asset

value,

end

of

year

.......................

$9.09

$10.64

$10.76

$10.93

$10.65

Total

return

d

...................................

(10.46)%

2.28%

3.75%

8.41%

(1.65)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.77%

0.78%

0.75%

0.71%

0.67%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.70%

0.74%

0.73%

0.68%

0.63%

Net

investment

income

...........................

3.84%

3.11%

3.46%

4.09%

4.28%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$189,767

$248,352

$261,409

$285,437

$302,610

Portfolio

turnover

rate

............................

63.64%

58.28%

f

114.19%

114.89%

f

107.90%

f

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

g

....

63.64%

43.00%

f

73.45%

72.45%

f

40.38%

f

*

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

repurchas-

es

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.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

g

See

Note

1(e)

regarding

mortgage

dollar

rolls.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

Strategic

Income

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-10

a

Year

Ended

December

31,

2022

2021*

2020

a

2019

a

2018

a

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$10.23

$10.36

$10.55

$10.28

$10.76

Income

from

investment

operations

b

:

Net

investment

income

c

.........................

0.33

0.29

0.33

0.40

0.42

Net

realized

and

unrealized

gains

(losses)

...........

(1.43)

(0.07)

—

d

0.42

(0.61)

Total

from

investment

operations

....................

(1.10)

0.22

0.33

0.82

(0.19)

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

(0.40)

(0.35)

(0.52)

(0.55)

(0.29)

Net

asset

value,

end

of

year

.......................

$8.73

$10.23

$10.36

$10.55

$10.28

Total

return

e

...................................

(10.75)%

2.11%

3.43%

8.05%

(1.77)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.02%

1.03%

1.01%

0.96%

0.92%

Expenses

net

of

waiver

and

payments

by

affiliates

f

......

0.95%

0.99%

0.99%

0.93%

0.88%

Net

investment

income

...........................

3.59%

2.86%

3.23%

3.84%

4.03%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$73,617

$89,733

$100,758

$94,928

$89,264

Portfolio

turnover

rate

............................

63.64%

58.28%

g

114.19%

114.89%

g

107.90%

g

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

h

....

63.64%

43.00%

g

73.45%

72.45%

g

40.38%

g

*

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

repurchas-

es

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.

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(e)

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.

Annual

Report

FSI-11

a

Year

Ended

December

31,

2022

2021*

2020

a

2019

a

2018

a

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$10.54

$10.66

$10.83

$10.56

$11.04

Income

from

investment

operations

b

:

Net

investment

income

c

.........................

0.33

0.29

0.32

0.41

0.43

Net

realized

and

unrealized

gains

(losses)

...........

(1.47)

(0.07)

0.01

0.42

(0.64)

Total

from

investment

operations

....................

(1.14)

0.22

0.33

0.83

(0.21)

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

(0.39)

(0.34)

(0.50)

(0.56)

(0.27)

Net

asset

value,

end

of

year

.......................

$9.01

$10.54

$10.66

$10.83

$10.56

Total

return

d

...................................

(10.84)%

2.06%

3.34%

7.93%

(1.88)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.12%

1.13%

1.10%

1.06%

1.02%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.05%

1.09%

1.09%

1.03%

0.98%

Net

investment

income

...........................

3.48%

2.76%

3.12%

3.74%

3.93%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$37,419

$50,381

$51,709

$54,485

$60,763

Portfolio

turnover

rate

............................

63.64%

58.28%

f

114.19%

114.89%

f

107.90%

f

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

g

....

63.64%

43.00%

f

73.45%

72.45%

f

40.38%

f

*

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

repurchas-

es

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.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

g

See

Note

1(e)

regarding

mortgage

dollar

rolls.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments,

December

31,

2022

Franklin

Strategic

Income

VIP

Fund

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-12

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

0.5%

Energy

Equipment

&

Services

0.2%

a

Weatherford

International

plc

.............................

United

States

13,794

$

702,390

Media

0.0%

†

a

Clear

Channel

Outdoor

Holdings,

Inc.

......................

United

States

20,804

21,844

a

iHeartMedia,

Inc.,

A

....................................

United

States

8,526

52,265

74,109

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

0.3%

a

Amplify

Energy

Corp.

..................................

United

States

431

3,789

Birch

Permian

Holdings,

Inc.

.............................

United

States

34,907

652,324

Birch

Permian

Holdings,

Inc.

.............................

United

States

4,478

83,683

739,796

Total

Common

Stocks

(Cost

$1,965,020)

.......................................

1,516,295

Management

Investment

Companies

6.2%

Capital

Markets

6.2%

d

Franklin

Floating

Rate

Income

Fund

.......................

United

States

2,418,451

18,501,151

Total

Management

Investment

Companies

(Cost

$21,092,057)

....................

18,501,151

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

30,118

2,360

Total

Convertible

Bonds

(Cost

$8,337)

.........................................

2,360

Corporate

Bonds

42.8%

Aerospace

&

Defense

0.7%

Boeing

Co.

(The)

,

Senior

Bond,

3.625%,

2/01/31

..........................

United

States

700,000

615,061

Senior

Note,

5.15%,

5/01/30

...........................

United

States

700,000

684,664

g

TransDigm,

Inc.

,

Senior

Secured

Note

,

144A,

6.25

%

,

3/15/26

....

United

States

900,000

889,551

2,189,276

Air

Freight

&

Logistics

0.3%

g

DAE

Funding

LLC

,

Senior

Note

,

144A,

1.55

%

,

8/01/24

.........

United

Arab

Emirates

300,000

278,973

FedEx

Corp.

,

Senior

Bond

,

4.05

%

,

2/15/48

..................

United

States

650,000

495,921

774,894

Airlines

0.6%

g

American

Airlines

Inc/AAdvantage

Loyalty

IP

Ltd.

,

Senior

Secured

Note

,

144A,

5.75

%

,

4/20/29

............................

United

States

600,000

549,456

g

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.

,

Senior

Secured

Note

,

144A,

4.5

%

,

10/20/25

.....................................

United

States

1,100,000

1,073,738

g

United

Airlines,

Inc.

,

Senior

Secured

Note

,

144A,

4.375

%

,

4/15/26

.

United

States

100,000

92,863

1,716,057

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-13

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Auto

Components

1.2%

g

Allison

Transmission,

Inc.

,

Senior

Bond,

144A,

5.875%,

6/01/29

.....................

United

States

800,000

$

752,700

Senior

Bond,

144A,

3.75%,

1/30/31

......................

United

States

300,000

247,125

Dana,

Inc.

,

Senior

Note

,

5.625

%

,

6/15/28

...................

United

States

1,000,000

911,466

g

Dornoch

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

10/15/29

..........................................

United

States

600,000

421,683

Goodyear

Tire

&

Rubber

Co.

(The)

,

Senior

Note

,

5

%

,

7/15/29

....

United

States

800,000

668,360

g

Real

Hero

Merger

Sub

2,

Inc.

,

Senior

Note

,

144A,

6.25

%

,

2/01/29

.

United

States

1,000,000

686,800

3,688,134

Automobiles

0.3%

g

Jaguar

Land

Rover

Automotive

plc

,

Senior

Note

,

144A,

5.5

%

,

7/15/29

...........................................

United

Kingdom

1,200,000

851,407

Banks

5.2%

Banco

Santander

SA

,

Sub.

Bond

,

2.749

%

,

12/03/30

...........

Spain

300,000

230,424

g

BNP

Paribas

SA

,

Senior

Note,

144A,

2.819%

to

11/18/24,

FRN

thereafter,

11/19/25

France

400,000

379,194

Senior

Note,

144A,

2.219%

to

6/08/25,

FRN

thereafter,

6/09/26

.

France

500,000

459,513

Citigroup,

Inc.

,

Senior

Note

,

5.61%

to

9/28/25,

FRN

thereafter

,

9/29/26

...........................................

United

States

1,600,000

1,608,527

HSBC

Holdings

plc

,

Senior

Bond,

2.848%

to

6/03/30,

FRN

thereafter,

6/04/31

.....

United

Kingdom

800,000

640,202

Senior

Bond,

2.357%

to

8/17/30,

FRN

thereafter,

8/18/31

.....

United

Kingdom

300,000

229,870

Senior

Note,

4.18%

to

12/08/24,

FRN

thereafter,

12/09/25

.....

United

Kingdom

900,000

874,727

Senior

Note,

5.21%

to

8/10/27,

FRN

thereafter,

8/11/28

.......

United

Kingdom

550,000

531,505

JPMorgan

Chase

&

Co.

,

f

R,

Junior

Sub.

Bond,

6%

to

7/31/23,

FRN

thereafter,

Perpetual

.

United

States

213,000

208,868

Senior

Bond,

3.2%,

6/15/26

............................

United

States

1,213,000

1,146,744

Senior

Bond,

2.522%

to

4/21/30,

FRN

thereafter,

4/22/31

.....

United

States

1,000,000

820,496

Senior

Note,

3.845%

to

6/13/24,

FRN

thereafter,

6/14/25

......

United

States

700,000

684,800

KeyBank

NA

,

Senior

Note

,

4.15

%

,

8/08/25

..................

United

States

500,000

488,986

Mitsubishi

UFJ

Financial

Group,

Inc.

,

Senior

Note

,

5.063%

to

9/11/24,

FRN

thereafter

,

9/12/25

.........................

Japan

900,000

894,180

National

Bank

of

Canada

,

Senior

Note

,

3.75%

to

6/08/24,

FRN

thereafter

,

6/09/25

...................................

Canada

900,000

875,125

Santander

UK

Group

Holdings

plc

,

Senior

Note

,

1.673%

to

6/23/26,

FRN

thereafter

,

6/14/27

...............................

United

Kingdom

800,000

681,157

g

Societe

Generale

SA

,

Senior

Bond,

144A,

2.889%

to

6/08/31,

FRN

thereafter,

6/09/32

France

800,000

617,304

Senior

Note,

144A,

1.792%

to

6/08/26,

FRN

thereafter,

6/09/27

.

France

700,000

603,101

SVB

Financial

Group

,

Senior

Bond

,

3.125

%

,

6/05/30

...........

United

States

300,000

249,001

Toronto-Dominion

Bank

(The)

,

Senior

Note

,

4.693

%

,

9/15/27

.....

Canada

1,000,000

990,293

Truist

Financial

Corp.

,

Senior

Note

,

5.9%

to

10/27/25,

FRN

thereafter

,

10/28/26

..................................

United

States

800,000

818,721

g

UniCredit

SpA

,

Senior

Bond

,

144A,

3.127%

to

6/02/31,

FRN

thereafter

,

6/03/32

...................................

Italy

500,000

376,917

Wells

Fargo

&

Co.

,

Senior

Note,

1.654%

to

6/01/23,

FRN

thereafter,

6/02/24

......

United

States

900,000

885,609

Senior

Note,

4.54%

to

8/14/25,

FRN

thereafter,

8/15/26

.......

United

States

500,000

490,477

15,785,741

Beverages

0.5%

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond

,

3.5

%

,

6/01/30

Belgium

800,000

730,205

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

Annual

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)

Beverages

(continued)

g

Primo

Water

Holdings,

Inc.

,

Senior

Note

,

144A,

4.375

%

,

4/30/29

..

Canada

1,000,000

$

864,772

1,594,977

Biotechnology

0.3%

AbbVie,

Inc.

,

Senior

Note

,

3.2

%

,

11/21/29

...................

United

States

700,000

632,626

Amgen,

Inc.

,

Senior

Bond

,

4.2

%

,

3/01/33

...................

United

States

400,000

371,302

1,003,928

Building

Products

0.6%

g

Camelot

Return

Merger

Sub,

Inc.

,

Senior

Secured

Note

,

144A,

8.75

%

,

8/01/28

.....................................

United

States

500,000

459,462

g

Eco

Material

Technologies,

Inc.

,

Senior

Secured

Note

,

144A,

7.875

%

,

1/31/27

.....................................

United

States

500,000

478,279

g

Standard

Industries,

Inc.

,

Senior

Bond,

144A,

4.75%,

1/15/28

......................

United

States

500,000

450,675

Senior

Bond,

144A,

4.375%,

7/15/30

.....................

United

States

200,000

163,402

Senior

Bond,

144A,

3.375%,

1/15/31

.....................

United

States

200,000

150,918

1,702,736

Capital

Markets

2.8%

Credit

Suisse

Group

AG

,

Senior

Note,

4.55%,

4/17/26

...........................

Switzerland

800,000

706,448

g

Senior

Note,

144A,

2.193%

to

6/04/25,

FRN

thereafter,

6/05/26

.

Switzerland

250,000

213,725

g

Senior

Note,

144A,

6.373%

to

7/14/25,

FRN

thereafter,

7/15/26

.

Switzerland

650,000

610,830

Deutsche

Bank

AG

,

Senior

Note

,

5.371

%

,

9/09/27

.............

Germany

800,000

803,156

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Bond,

3.21%

to

4/21/41,

FRN

thereafter,

4/22/42

......

United

States

400,000

289,655

Senior

Note,

0.673%

to

3/07/23,

FRN

thereafter,

3/08/24

......

United

States

900,000

890,369

Senior

Note,

5.7%,

11/01/24

...........................

United

States

500,000

506,314

Senior

Note,

4.387%

to

6/14/26,

FRN

thereafter,

6/15/27

......

United

States

300,000

289,405

Senior

Note,

1.948%

to

10/20/26,

FRN

thereafter,

10/21/27

....

United

States

1,000,000

875,689

Morgan

Stanley

,

Senior

Bond,

3.591%

to

7/21/27,

FRN

thereafter,

7/22/28

.....

United

States

809,000

743,329

Senior

Note,

3.737%

to

4/23/23,

FRN

thereafter,

4/24/24

......

United

States

900,000

895,249

g

MSCI,

Inc.

,

Senior

Bond

,

144A,

3.25

%

,

8/15/33

...............

United

States

1,200,000

928,444

g

UBS

Group

AG

,

Senior

Note

,

144A,

4.49%

to

8/04/24,

FRN

thereafter

,

8/05/25

...................................

Switzerland

700,000

688,411

8,441,024

Chemicals

2.0%

e,g

Anagram

International,

Inc.

/

Anagram

Holdings

LLC

,

Secured

Note

,

144A,

PIK,

10

%

,

8/15/26

..............................

United

States

148,158

92,805

g

ASP

Unifrax

Holdings,

Inc.

,

Senior

Note

,

144A,

7.5

%

,

9/30/29

....

United

States

200,000

127,200

g

Braskem

Idesa

SAPI

,

Senior

Secured

Bond

,

144A,

6.99

%

,

2/20/32

Mexico

900,000

644,142

Celanese

US

Holdings

LLC

,

Senior

Note

,

6.165

%

,

7/15/27

......

United

States

600,000

592,759

g

Consolidated

Energy

Finance

SA

,

Senior

Note

,

144A,

5.625

%

,

10/15/28

..........................................

Switzerland

700,000

595,684

g

CVR

Partners

LP

/

CVR

Nitrogen

Finance

Corp.

,

Senior

Secured

Note

,

144A,

6.125

%

,

6/15/28

...........................

United

States

300,000

269,522

g

Element

Solutions,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

9/01/28

.....

United

States

800,000

681,280

g

Gates

Global

LLC

/

Gates

Corp.

,

Senior

Note

,

144A,

6.25

%

,

1/15/26

United

States

400,000

386,620

g

INEOS

Quattro

Finance

1

plc

,

Senior

Note

,

144A,

3.75

%

,

7/15/26

.

United

Kingdom

800,000

EUR

708,065

e,g

Kobe

US

Midco

2,

Inc.

,

Senior

Note

,

144A,

PIK,

9.25

%

,

11/01/26

..

United

States

300,000

211,500

g

Syngenta

Finance

NV

,

Senior

Note

,

144A,

4.892

%

,

4/24/25

......

Switzerland

800,000

775,521

g

Vibrantz

Technologies,

Inc.

,

Senior

Note

,

144A,

9

%

,

2/15/30

.....

United

States

800,000

604,769

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-15

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Chemicals

(continued)

Westlake

Corp.

,

Senior

Bond

,

3.375

%

,

6/15/30

...............

United

States

200,000

$

171,597

g

Yara

International

ASA

,

Senior

Bond

,

144A,

3.148

%

,

6/04/30

.....

Brazil

100,000

80,357

5,941,821

Commercial

Services

&

Supplies

0.7%

g

APX

Group,

Inc.

,

Senior

Note

,

144A,

5.75

%

,

7/15/29

...........

United

States

400,000

331,795

g

Prime

Security

Services

Borrower

LLC

/

Prime

Finance,

Inc.

,

Senior

Secured

Note

,

144A,

3.375

%

,

8/31/27

....................

United

States

1,000,000

864,759

g

Stericycle,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

1/15/29

...........

United

States

1,000,000

873,815

2,070,369

Construction

&

Engineering

0.2%

g

Arcosa,

Inc.

,

Senior

Note

,

144A,

4.375

%

,

4/15/29

.............

United

States

300,000

260,537

g

Great

Lakes

Dredge

&

Dock

Corp.

,

Senior

Note

,

144A,

5.25

%

,

6/01/29

...........................................

United

States

500,000

389,350

649,887

Consumer

Finance

0.5%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

,

Senior

Bond

,

3.4

%

,

10/29/33

.................................

Ireland

500,000

380,454

g

Park

Aerospace

Holdings

Ltd.

,

Senior

Note

,

144A,

5.5

%

,

2/15/24

.

Ireland

300,000

296,222

g

PRA

Group,

Inc.

,

Senior

Note

,

144A,

5

%

,

10/01/29

............

United

States

900,000

743,823

1,420,499

Containers

&

Packaging

0.9%

g

Ardagh

Packaging

Finance

plc

/

Ardagh

Holdings

USA,

Inc.

,

Senior

Note

,

144A,

5.25

%

,

8/15/27

............................

United

States

300,000

224,797

g

Owens-Brockway

Glass

Container,

Inc.

,

Senior

Note,

144A,

5.875%,

8/15/23

.....................

United

States

169,000

168,481

Senior

Note,

144A,

6.625%,

5/13/27

.....................

United

States

75,000

72,882

g

Pactiv

Evergreen

Group

Issuer

LLC

/

Pactiv

Evergreen

Group

Issuer,

Inc.

,

Senior

Secured

Note

,

144A,

4.375

%

,

10/15/28

..........

United

States

500,000

447,337

g

Pactiv

Evergreen

Group

Issuer,

Inc./Pactiv

Evergreen

Group

Issuer

LLC

,

Senior

Secured

Note

,

144A,

4

%

,

10/15/27

.............

United

States

600,000

533,190

g

Sealed

Air

Corp.

,

Senior

Bond,

144A,

5.125%,

12/01/24

....................

United

States

709,000

697,812

Senior

Bond,

144A,

5.5%,

9/15/25

.......................

United

States

124,000

122,432

WRKCo,

Inc.

,

Senior

Bond

,

3

%

,

6/15/33

....................

United

States

400,000

318,805

2,585,736

Diversified

Consumer

Services

0.2%

Grand

Canyon

University

,

5.125

%

,

10/01/28

.................

United

States

800,000

754,632

Diversified

Financial

Services

0.4%

g

Jefferson

Capital

Holdings

LLC

,

Senior

Note

,

144A,

6

%

,

8/15/26

..

United

States

700,000

580,195

g

MPH

Acquisition

Holdings

LLC

,

Senior

Note

,

144A,

5.75

%

,

11/01/28

United

States

800,000

533,770

1,113,965

Diversified

Telecommunication

Services

1.1%

g

Altice

France

Holding

SA

,

Senior

Note

,

144A,

6

%

,

2/15/28

......

Luxembourg

900,000

533,198

g

Altice

France

SA

,

Senior

Secured

Note

,

144A,

5.5

%

,

1/15/28

....

France

200,000

157,054

AT&T,

Inc.

,

Senior

Bond

,

3.65

%

,

9/15/59

....................

United

States

800,000

539,159

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond

,

4.5

%

,

5/01/32

......................................

United

States

1,000,000

797,925

g

Iliad

Holding

SASU

,

Senior

Secured

Note,

144A,

6.5%,

10/15/26

...............

France

300,000

278,755

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

Annual

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)

Diversified

Telecommunication

Services

(continued)

g

Iliad

Holding

SASU,

(continued)

Senior

Secured

Note,

144A,

7%,

10/15/28

.................

France

600,000

$

543,072

Telefonica

Emisiones

SA

,

Senior

Bond

,

4.895

%

,

3/06/48

........

Spain

150,000

115,898

g

Virgin

Media

Secured

Finance

plc

,

Senior

Secured

Bond

,

144A,

4.5

%

,

8/15/30

......................................

United

Kingdom

400,000

334,880

3,299,941

Electric

Utilities

1.4%

Duke

Energy

Corp.

,

Senior

Bond

,

2.45

%

,

6/01/30

.............

United

States

400,000

329,819

g

Enel

Finance

International

NV

,

Senior

Note

,

144A,

2.65

%

,

9/10/24

Italy

800,000

765,954

Exelon

Corp.

,

Senior

Bond

,

4.05

%

,

4/15/30

..................

United

States

1,300,000

1,210,035

Southern

Co.

(The)

,

Senior

Bond

,

4.4

%

,

7/01/46

..............

United

States

400,000

335,497

Virginia

Electric

and

Power

Co.

,

Senior

Bond

,

6.35

%

,

11/30/37

...

United

States

85,000

90,462

g

Vistra

Operations

Co.

LLC

,

Senior

Note,

144A,

4.375%,

5/01/29

.....................

United

States

1,100,000

949,995

Senior

Secured

Bond,

144A,

4.3%,

7/15/29

................

United

States

500,000

450,906

4,132,668

Electrical

Equipment

0.3%

Eaton

Corp.

,

Senior

Bond

,

4.15

%

,

3/15/33

...................

United

States

200,000

186,556

g

Vertiv

Group

Corp.

,

Senior

Secured

Note

,

144A,

4.125

%

,

11/15/28

United

States

900,000

766,062

952,618

Electronic

Equipment,

Instruments

&

Components

0.5%

CDW

LLC

/

CDW

Finance

Corp.

,

Senior

Note

,

3.25

%

,

2/15/29

....

United

States

900,000

768,118

Flex

Ltd.

,

Senior

Bond

,

4.875

%

,

5/12/30

....................

United

States

800,000

753,347

1,521,465

Energy

Equipment

&

Services

0.1%

g

Schlumberger

Holdings

Corp.

,

Senior

Note

,

144A,

3.9

%

,

5/17/28

..

United

States

400,000

373,415

g

Weatherford

International

Ltd.

,

Senior

Note

,

144A,

11

%

,

12/01/24

.

United

States

21,000

21,499

394,914

Entertainment

0.5%

Netflix,

Inc.

,

Senior

Bond,

4.375%,

11/15/26

.........................

United

States

300,000

289,266

Senior

Bond,

5.875%,

11/15/28

.........................

United

States

1,000,000

1,016,030

g

Warnermedia

Holdings,

Inc.

,

Senior

Note

,

144A,

4.054

%

,

3/15/29

.

United

States

300,000

260,112

1,565,408

Equity

Real

Estate

Investment

Trusts

(REITs)

0.8%

AvalonBay

Communities,

Inc.

,

Senior

Bond

,

2.45

%

,

1/15/31

.....

United

States

500,000

414,680

g

Global

Net

Lease,

Inc.

/

Global

Net

Lease

Operating

Partnership

LP

,

Senior

Note

,

144A,

3.75

%

,

12/15/27

......................

United

States

400,000

331,367

MPT

Operating

Partnership

LP

/

MPT

Finance

Corp.

,

Senior

Bond

,

3.5

%

,

3/15/31

......................................

United

States

300,000

206,272

g

Necessity

Retail

REIT,

Inc.

(The)

/

American

Finance

Operating

Partner

LP

,

Senior

Note

,

144A,

4.5

%

,

9/30/28

...............

United

States

700,000

515,529

Simon

Property

Group

LP

,

Senior

Bond

,

4.25

%

,

11/30/46

.......

United

States

800,000

642,547

g

XHR

LP

,

Senior

Secured

Note

,

144A,

4.875

%

,

6/01/29

.........

United

States

400,000

328,170

2,438,565

Food

Products

0.4%

g

Bimbo

Bakeries

USA,

Inc.

,

Senior

Bond

,

144A,

4

%

,

5/17/51

.....

Mexico

200,000

150,823

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-17

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Food

Products

(continued)

General

Mills,

Inc.

,

Senior

Note

,

5.241

%

,

11/18/25

.............

United

States

150,000

$

150,427

g

JBS

USA

LUX

SA

/

JBS

USA

Food

Co.

/

JBS

USA

Finance,

Inc.

,

Senior

Note,

144A,

2.5%,

1/15/27

.......................

United

States

700,000

613,277

Senior

Note,

144A,

3.625%,

1/15/32

.....................

United

States

400,000

324,578

1,239,105

Gas

Utilities

0.1%

Piedmont

Natural

Gas

Co.,

Inc.

,

Senior

Bond

,

3.35

%

,

6/01/50

....

United

States

300,000

202,033

Health

Care

Equipment

&

Supplies

0.2%

g

Garden

Spinco

Corp.

,

Senior

Note

,

144A,

8.625

%

,

7/20/30

......

United

States

200,000

212,289

g

GE

HealthCare

Technologies,

Inc.

,

Senior

Note

,

144A,

5.6

%

,

11/15/25

..........................................

United

States

500,000

503,616

715,905

Health

Care

Providers

&

Services

1.4%

Centene

Corp.

,

Senior

Note,

4.25%,

12/15/27

..........................

United

States

300,000

282,021

Senior

Note,

2.45%,

7/15/28

...........................

United

States

100,000

84,597

Senior

Note,

4.625%,

12/15/29

.........................

United

States

200,000

183,218

Senior

Note,

3.375%,

2/15/30

..........................

United

States

600,000

508,575

Senior

Note,

2.625%,

8/01/31

..........................

United

States

200,000

157,545

g

CHS/Community

Health

Systems,

Inc.

,

Secured

Note,

144A,

6.875%,

4/15/29

....................

United

States

800,000

412,666

Senior

Secured

Note,

144A,

5.625%,

3/15/27

..............

United

States

700,000

601,496

CVS

Health

Corp.

,

Senior

Bond

,

1.75

%

,

8/21/30

..............

United

States

400,000

316,149

g

DaVita,

Inc.

,

Senior

Note

,

144A,

4.625

%

,

6/01/30

.............

United

States

800,000

645,233

Elevance

Health,

Inc.

,

Senior

Bond

,

3.7

%

,

9/15/49

............

United

States

150,000

114,630

HCA,

Inc.

,

Senior

Bond

,

3.5

%

,

9/01/30

.....................

United

States

100,000

86,483

Quest

Diagnostics,

Inc.

,

Senior

Bond

,

2.8

%

,

6/30/31

...........

United

States

200,000

168,033

g

Tenet

Healthcare

Corp.

,

Senior

Secured

Note

,

144A,

6.125

%

,

6/15/30

...........................................

United

States

800,000

763,644

4,324,290

Hotels,

Restaurants

&

Leisure

1.3%

g

Everi

Holdings,

Inc.

,

Senior

Note

,

144A,

5

%

,

7/15/29

...........

United

States

500,000

430,133

Las

Vegas

Sands

Corp.

,

Senior

Bond

,

3.9

%

,

8/08/29

...........

United

States

800,000

675,550

g

Motion

Bondco

DAC

,

Senior

Note

,

144A,

6.625

%

,

11/15/27

......

United

Kingdom

200,000

172,489

g

NCL

Corp.

Ltd.

,

Senior

Note

,

144A,

5.875

%

,

3/15/26

...........

United

States

600,000

472,320

g

Papa

John's

International,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

9/15/29

United

States

300,000

250,882

g

Premier

Entertainment

Sub

LLC

/

Premier

Entertainment

Finance

Corp.

,

Senior

Bond

,

144A,

5.875

%

,

9/01/31

................

United

States

400,000

283,480

g

Station

Casinos

LLC

,

Senior

Note

,

144A,

4.5

%

,

2/15/28

........

United

States

200,000

174,186

g

Studio

City

Finance

Ltd.

,

Senior

Note

,

144A,

5

%

,

1/15/29

.......

Macau

1,200,000

887,694

g

Wynn

Macau

Ltd.

,

Senior

Note

,

144A,

5.625

%

,

8/26/28

.........

Macau

500,000

428,148

3,774,882

Household

Durables

0.1%

M/I

Homes,

Inc.

,

Senior

Note

,

3.95

%

,

2/15/30

................

United

States

400,000

323,485

Household

Products

0.3%

g

Central

Garden

&

Pet

Co.

,

Senior

Bond

,

144A,

4.125

%

,

4/30/31

..

United

States

500,000

414,550

g

Kimberly-Clark

de

Mexico

SAB

de

CV

,

Senior

Bond

,

144A,

2.431

%

,

7/01/31

...........................................

Mexico

300,000

240,355

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

Annual

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)

Household

Products

(continued)

g

Spectrum

Brands,

Inc.

,

Senior

Bond

,

144A,

3.875

%

,

3/15/31

.....

United

States

400,000

$

311,614

966,519

Independent

Power

and

Renewable

Electricity

Producers

2.0%

g

Atlantica

Sustainable

Infrastructure

plc

,

Senior

Note

,

144A,

4.125

%

,

6/15/28

...........................................

Spain

400,000

355,442

g

Calpine

Corp.

,

Senior

Bond

,

144A,

5

%

,

2/01/31

...............

United

States

600,000

504,305

g

Clearway

Energy

Operating

LLC

,

Senior

Note

,

144A,

3.75

%

,

2/15/31

United

States

700,000

582,067

g

Colbun

SA

,

Senior

Bond,

144A,

3.95%,

10/11/27

.....................

Chile

800,000

746,646

Senior

Bond,

144A,

3.15%,

3/06/30

......................

Chile

300,000

259,727

g

InterGen

NV

,

Senior

Secured

Bond

,

144A,

7

%

,

6/30/23

.........

Netherlands

1,400,000

1,361,022

g

Leeward

Renewable

Energy

Operations

LLC

,

Senior

Note

,

144A,

4.25

%

,

7/01/29

.....................................

United

States

1,000,000

855,668

g,h

Talen

Energy

Supply

LLC

,

Senior

Secured

Note

,

144A,

7.25

%

,

5/15/27

...........................................

United

States

1,300,000

1,351,499

6,016,376

Insurance

0.3%

Arch

Capital

Group

Ltd.

,

Senior

Bond

,

3.635

%

,

6/30/50

.........

United

States

1,000,000

694,334

g

Metropolitan

Life

Global

Funding

I

,

Secured

Note

,

144A,

4.3

%

,

8/25/29

...........................................

United

States

300,000

285,714

980,048

Interactive

Media

&

Services

0.5%

g

Tencent

Holdings

Ltd.

,

Senior

Note

,

144A,

2.39

%

,

6/03/30

.......

China

1,700,000

1,386,073

Internet

&

Direct

Marketing

Retail

0.2%

g

Match

Group

Holdings

II

LLC

,

Senior

Note

,

144A,

3.625

%

,

10/01/31

United

States

600,000

460,898

IT

Services

1.2%

g

Cablevision

Lightpath

LLC

,

Senior

Secured

Note

,

144A,

3.875

%

,

9/15/27

...........................................

United

States

900,000

746,067

g

Gartner,

Inc.

,

Senior

Note,

144A,

4.5%,

7/01/28

.......................

United

States

700,000

653,870

Senior

Note,

144A,

3.625%,

6/15/29

.....................

United

States

200,000

175,985

g

Northwest

Fiber

LLC

/

Northwest

Fiber

Finance

Sub,

Inc.

,

Senior

Note

,

144A,

6

%

,

2/15/28

..............................

United

States

1,100,000

853,087

g

Presidio

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

4.875

%

,

2/01/27

United

States

1,200,000

1,096,176

3,525,185

Machinery

0.4%

g

ATS

Corp.

,

Senior

Note

,

144A,

4.125

%

,

12/15/28

.............

Canada

400,000

345,576

g

Chart

Industries,

Inc.

,

Senior

Secured

Note

,

144A,

7.5

%

,

1/01/30

.

United

States

400,000

402,616

Parker-Hannifin

Corp.

,

Senior

Note

,

4.25

%

,

9/15/27

...........

United

States

400,000

388,759

1,136,951

Marine

0.4%

g

ICTSI

Treasury

BV

,

Senior

Bond

,

Reg

S,

4.625

%

,

1/16/23

.......

Philippines

1,200,000

1,197,846

Media

1.7%

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

,

Senior

Secured

Bond

,

2.8

%

,

4/01/31

.......

United

States

1,300,000

1,015,047

g

Clear

Channel

Outdoor

Holdings,

Inc.

,

Senior

Note,

144A,

7.75%,

4/15/28

......................

United

States

400,000

292,522

Senior

Note,

144A,

7.5%,

6/01/29

.......................

United

States

300,000

220,843

Senior

Secured

Note,

144A,

5.125%,

8/15/27

..............

United

States

200,000

173,730

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-19

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Media

(continued)

g

CSC

Holdings

LLC

,

Senior

Bond

,

144A,

3.375

%

,

2/15/31

.......

United

States

400,000

$

261,508

g

Directv

Financing

LLC

/

Directv

Financing

Co-Obligor,

Inc.

,

Senior

Secured

Note

,

144A,

5.875

%

,

8/15/27

....................

United

States

600,000

537,936

g

DISH

DBS

Corp.

,

Senior

Secured

Note

,

144A,

5.75

%

,

12/01/28

...

United

States

600,000

480,000

g

Outfront

Media

Capital

LLC

/

Outfront

Media

Capital

Corp.

,

Senior

Note

,

144A,

5

%

,

8/15/27

..............................

United

States

100,000

90,180

g

Sinclair

Television

Group,

Inc.

,

Senior

Secured

Note

,

144A,

4.125

%

,

12/01/30

..........................................

United

States

800,000

600,825

g

Sirius

XM

Radio,

Inc.

,

Senior

Note

,

144A,

4

%

,

7/15/28

.........

United

States

1,000,000

872,220

g

Univision

Communications,

Inc.

,

Senior

Secured

Note,

144A,

5.125%,

2/15/25

..............

United

States

400,000

381,768

Senior

Secured

Note,

144A,

4.5%,

5/01/29

................

United

States

100,000

83,814

5,010,393

Metals

&

Mining

0.4%

g

Constellium

SE

,

Senior

Note

,

144A,

3.75

%

,

4/15/29

...........

United

States

700,000

569,599

g

SunCoke

Energy,

Inc.

,

Senior

Secured

Note

,

144A,

4.875

%

,

6/30/29

United

States

600,000

515,812

1,085,411

Multiline

Retail

0.1%

b,e,g

K2016470219

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

3

%

,

1/06/23

........................................

South

Africa

1,036,360

—

b,e,g

K2016470260

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

25

%

,

1/06/23

.......................................

South

Africa

564,697

—

g

Macy's

Retail

Holdings

LLC

,

Senior

Note

,

144A,

5.875

%

,

3/15/30

.

United

States

500,000

434,600

434,600

Multi-Utilities

0.4%

Dominion

Energy,

Inc.

,

A

,

Senior

Note

,

4.35

%

,

8/15/32

.........

United

States

1,150,000

1,072,439

Oil,

Gas

&

Consumable

Fuels

4.2%

g

Aker

BP

ASA

,

Senior

Bond

,

144A,

3.1

%

,

7/15/31

..............

Norway

900,000

740,342

g

Antero

Resources

Corp.

,

Senior

Note

,

144A,

7.625

%

,

2/01/29

....

United

States

98,000

98,671

Canadian

Natural

Resources

Ltd.

,

Senior

Bond

,

2.95

%

,

7/15/30

..

Canada

450,000

380,280

g

Crestwood

Midstream

Partners

LP

/

Crestwood

Midstream

Finance

Corp.

,

Senior

Note

,

144A,

6

%

,

2/01/29

....................

United

States

700,000

643,269

g

CrownRock

LP

/

CrownRock

Finance,

Inc.

,

Senior

Note

,

144A,

5

%

,

5/01/29

...........................................

United

States

300,000

271,154

g

DT

Midstream,

Inc.

,

Senior

Bond

,

144A,

4.375

%

,

6/15/31

.......

United

States

500,000

420,125

g

Endeavor

Energy

Resources

LP

/

EER

Finance,

Inc.

,

Senior

Bond

,

144A,

5.75

%

,

1/30/28

.................................

United

States

900,000

863,235

Energy

Transfer

LP

,

Senior

Bond

,

3.75

%

,

5/15/30

.............

United

States

200,000

176,798

EnLink

Midstream

LLC

,

Senior

Bond,

5.375%,

6/01/29

..........................

United

States

1,100,000

1,019,654

g

Senior

Note,

144A,

5.625%,

1/15/28

.....................

United

States

100,000

95,389

g

EQM

Midstream

Partners

LP

,

Senior

Note

,

144A,

7.5

%

,

6/01/27

..

United

States

100,000

98,059

g

Hilcorp

Energy

I

LP

/

Hilcorp

Finance

Co.

,

Senior

Bond,

144A,

6%,

2/01/31

........................

United

States

700,000

606,416

Senior

Bond,

144A,

6.25%,

4/15/32

......................

United

States

200,000

172,877

Senior

Note,

144A,

5.75%,

2/01/29

......................

United

States

200,000

178,303

g

Kinetik

Holdings

LP

,

Senior

Note

,

144A,

5.875

%

,

6/15/30

........

United

States

800,000

751,306

g

Martin

Midstream

Partners

LP

/

Martin

Midstream

Finance

Corp.

,

Secured

Note

,

144A,

11.5

%

,

2/28/25

.....................

United

States

1,394,630

1,397,029

MPLX

LP

,

Senior

Note

,

2.65

%

,

8/15/30

.....................

United

States

1,500,000

1,218,982

Sabine

Pass

Liquefaction

LLC

,

Senior

Secured

Note

,

4.5

%

,

5/15/30

United

States

1,600,000

1,486,866

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

Annual

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)

Oil,

Gas

&

Consumable

Fuels

(continued)

Sunoco

LP

/

Sunoco

Finance

Corp.

,

Senior

Note,

6%,

4/15/27

.............................

United

States

500,000

$

493,209

Senior

Note,

4.5%,

5/15/29

............................

United

States

1,200,000

1,051,374

g

Venture

Global

Calcasieu

Pass

LLC

,

Senior

Secured

Bond,

144A,

4.125%,

8/15/31

..............

United

States

300,000

256,125

Senior

Secured

Note,

144A,

3.875%,

8/15/29

..............

United

States

300,000

263,026

12,682,489

Paper

&

Forest

Products

0.4%

g

Glatfelter

Corp.

,

Senior

Note

,

144A,

4.75

%

,

11/15/29

...........

United

States

400,000

241,040

Suzano

Austria

GmbH

,

Senior

Bond,

3.75%,

1/15/31

...........................

Brazil

700,000

588,827

DM3N,

Senior

Bond,

3.125%,

1/15/32

....................

Brazil

400,000

312,420

1,142,287

Personal

Products

0.3%

g

Oriflame

Investment

Holding

plc

,

Senior

Secured

Note

,

144A,

5.125

%

,

5/04/26

.....................................

Switzerland

800,000

500,000

g

Prestige

Brands,

Inc.

,

Senior

Bond

,

144A,

3.75

%

,

4/01/31

.......

United

States

500,000

412,973

912,973

Pharmaceuticals

1.0%

g

1375209

BC

Ltd.

,

Senior

Secured

Note

,

144A,

9

%

,

1/30/28

......

Canada

45,000

44,044

g

Bausch

Health

Cos.,

Inc.

,

Secured

Note,

144A,

14%,

10/15/30

.....................

United

States

15,000

8,980

Senior

Secured

Note,

144A,

4.875%,

6/01/28

..............

United

States

400,000

255,165

Senior

Secured

Note,

144A,

11%,

9/30/28

.................

United

States

80,000

62,787

g

Bayer

US

Finance

II

LLC

,

Senior

Bond

,

144A,

4.375

%

,

12/15/28

..

Germany

889,000

836,309

g

Organon

&

Co.

/

Organon

Foreign

Debt

Co-Issuer

BV

,

Senior

Bond,

144A,

5.125%,

4/30/31

.....................

United

States

300,000

260,291

Senior

Secured

Note,

144A,

4.125%,

4/30/28

..............

United

States

500,000

443,575

Royalty

Pharma

plc

,

Senior

Bond

,

3.3

%

,

9/02/40

..............

United

States

500,000

348,781

Teva

Pharmaceutical

Finance

Netherlands

III

BV

,

Senior

Note

,

5.125

%

,

5/09/29

.....................................

Israel

900,000

802,662

3,062,594

Real

Estate

Management

&

Development

0.3%

g

China

Overseas

Finance

Cayman

VI

Ltd.

,

Senior

Bond

,

Reg

S,

5.95

%

,

5/08/24

.....................................

China

400,000

399,272

g

Country

Garden

Holdings

Co.

Ltd.

,

Senior

Secured

Note

,

Reg

S,

7.25

%

,

4/08/26

.....................................

China

700,000

446,852

g

Vivion

Investments

SARL

,

Senior

Note

,

Reg

S,

3

%

,

8/08/24

.....

Luxembourg

200,000

EUR

167,422

1,013,546

Road

&

Rail

0.5%

CSX

Corp.

,

Senior

Bond

,

4.1

%

,

3/15/44

....................

United

States

550,000

463,874

g

First

Student

Bidco,

Inc.

/

First

Transit

Parent,

Inc.

,

Senior

Secured

Note

,

144A,

4

%

,

7/31/29

..............................

United

States

700,000

580,001

g

NESCO

Holdings

II,

Inc.

,

Secured

Note

,

144A,

5.5

%

,

4/15/29

....

United

States

500,000

438,150

1,482,025

Software

0.4%

g

Condor

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

7.375

%

,

2/15/30

...

United

States

500,000

402,908

g

Rocket

Software,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

2/15/29

........

United

States

1,100,000

868,589

1,271,497

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-21

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Specialty

Retail

0.3%

AutoNation,

Inc.

,

Senior

Bond

,

4.75

%

,

6/01/30

...............

United

States

200,000

$

178,894

g

Michaels

Cos.,

Inc.

(The)

,

Senior

Note

,

144A,

7.875

%

,

5/01/29

...

United

States

600,000

401,969

g

Park

River

Holdings,

Inc.

,

Senior

Note

,

144A,

6.75

%

,

8/01/29

....

United

States

400,000

275,058

855,921

Technology

Hardware,

Storage

&

Peripherals

0.1%

Teledyne

FLIR

LLC

,

Senior

Note

,

2.5

%

,

8/01/30

..............

United

States

200,000

161,873

Thrifts

&

Mortgage

Finance

0.5%

g

BPCE

SA

,

Senior

Note

,

144A,

2.045%

to

10/18/26,

FRN

thereafter

,

10/19/27

..........................................

France

800,000

690,578

g

Ladder

Capital

Finance

Holdings

LLLP

/

Ladder

Capital

Finance

Corp.

,

Senior

Note

,

144A,

4.75

%

,

6/15/29

.................

United

States

1,100,000

889,713

1,580,291

Tobacco

0.4%

Altria

Group,

Inc.

,

Senior

Bond

,

3.4

%

,

5/06/30

................

United

States

1,200,000

1,028,403

g

Imperial

Brands

Finance

plc

,

Senior

Bond

,

144A,

4.25

%

,

7/21/25

.

United

Kingdom

300,000

286,787

1,315,190

Trading

Companies

&

Distributors

0.4%

g

H&E

Equipment

Services,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

12/15/28

United

States

1,100,000

938,900

g

Herc

Holdings,

Inc.

,

Senior

Note

,

144A,

5.5

%

,

7/15/27

..........

United

States

300,000

280,434

1,219,334

Transportation

Infrastructure

0.0%

†

g

Rutas

2

and

7

Finance

Ltd.

,

Senior

Secured

Bond

,

144A,

Zero

Cpn.,

9/30/36

...........................................

United

States

186,667

117,979

Wireless

Telecommunication

Services

0.5%

e,g

Digicel

Group

Holdings

Ltd.

,

Senior

Note

,

144A,

PIK,

8

%

,

4/01/25

.

Bermuda

20,996

5,563

T-Mobile

USA,

Inc.

,

Senior

Bond,

3.3%,

2/15/51

............................

United

States

500,000

335,868

Senior

Note,

3.875%,

4/15/30

..........................

United

States

1,300,000

1,180,609

1,522,040

Total

Corporate

Bonds

(Cost

$150,634,496)

.....................................

128,783,140

i

Marketplace

Loans

2.3%

b

Diversified

Financial

Services

2.3%

a

a

a

a

a

a

Total

Marketplace

Loans

(Cost

$7,671,279)

.....................................

6,941,352

Foreign

Government

and

Agency

Securities

4.1%

g

African

Export-Import

Bank

(The)

,

Senior

Bond

,

144A,

3.994

%

,

9/21/29

...........................................

Supranational

j

1,400,000

1,220,940

g

Banque

Ouest

Africaine

de

Developpement

,

Senior

Bond

,

144A,

5

%

,

7/27/27

...........................................

Supranational

j

1,200,000

1,133,124

Colombia

Government

Bond

,

Senior

Bond,

3.875%,

4/25/27

..........................

Colombia

1,400,000

1,243,834

Senior

Bond,

9.85%,

6/28/27

...........................

Colombia

5,315,000,000

COP

970,913

g

Comision

Federal

de

Electricidad

,

Senior

Bond

,

144A,

3.348

%

,

2/09/31

...........................................

Mexico

1,000,000

785,101

g

Dominican

Republic

Government

Bond

,

Senior

Note

,

144A,

8.9

%

,

2/15/23

...........................................

Dominican

Republic

81,500,000

DOP

1,446,154

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

Annual

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

(continued)

f,g

Electricite

de

France

SA

,

Junior

Sub.

Bond

,

144A,

5.25%

to

1/28/23,

FRN

thereafter

,

Perpetual

.............................

France

2,425,000

$

2,419,718

g

Indonesia

Asahan

Aluminium

Persero

PT

,

Senior

Bond

,

144A,

5.45

%

,

5/15/30

.....................................

Indonesia

1,400,000

1,335,985

g

Korea

Electric

Power

Corp.

,

Senior

Note

,

144A,

5.375

%

,

4/06/26

.

South

Korea

300,000

302,570

Peru

Government

Bond

,

Senior

Bond

,

6.55

%

,

3/14/37

..........

Peru

800,000

845,819

g

Romania

Government

Bond

,

Senior

Bond

,

144A,

6.125

%

,

1/22/44

.

Romania

500,000

461,771

Total

Foreign

Government

and

Agency

Securities

(Cost

$14,744,803)

..............

12,165,929

U.S.

Government

and

Agency

Securities

20.1%

U.S.

Treasury

Bonds

,

3.25%,

5/15/42

.....................................

United

States

700,000

614,031

3.75%,

11/15/43

.....................................

United

States

540,000

506,630

3%,

2/15/48

........................................

United

States

1,800,000

1,476,562

3.125%,

5/15/48

.....................................

United

States

1,600,000

1,345,500

3%,

8/15/48

........................................

United

States

800,000

657,375

3.375%,

11/15/48

....................................

United

States

1,200,000

1,059,187

3%,

2/15/49

........................................

United

States

1,800,000

1,483,313

U.S.

Treasury

Notes

,

2.75%,

5/31/23

.....................................

United

States

1,000,000

992,598

2.625%,

12/31/23

....................................

United

States

3,800,000

3,722,142

2.75%,

2/15/24

.....................................

United

States

6,400,000

6,263,000

4.25%,

9/30/24

.....................................

United

States

3,300,000

3,283,629

2.25%,

10/31/24

.....................................

United

States

3,400,000

3,266,125

3.5%,

9/15/25

......................................

United

States

3,400,000

3,332,531

4.25%,

10/15/25

.....................................

United

States

8,700,000

8,694,564

2.875%,

11/30/25

....................................

United

States

3,400,000

3,272,234

k

Index

Linked,

0.625%,

1/15/26

..........................

United

States

2,800,000

3,371,877

2%,

11/15/26

.......................................

United

States

3,900,000

3,606,738

2.25%,

2/15/27

.....................................

United

States

1,400,000

1,303,148

4.125%,

9/30/27

.....................................

United

States

4,100,000

4,115,695

2.75%,

2/15/28

.....................................

United

States

300,000

282,129

3.125%,

11/15/28

....................................

United

States

2,200,000

2,098,637

3.25%,

6/30/29

.....................................

United

States

2,900,000

2,775,844

2.875%,

5/15/32

.....................................

United

States

1,300,000

1,198,438

2.75%,

8/15/32

.....................................

United

States

1,850,000

1,684,945

Total

U.S.

Government

and

Agency

Securities

(Cost

$62,182,821)

.................

60,406,872

Asset-Backed

Securities

5.3%

Airlines

0.0%

†

United

Airlines

Pass-Through

Trust

,

2020-1

,

B

,

4.875

%

,

7/15/27

.

..

United

States

76,200

72,582

Commercial

Services

&

Supplies

0.1%

g,l

Galaxy

XXVIII

CLO

Ltd.

,

2018-28A

,

C

,

144A,

FRN

,

6.029

%

,

(

3-month

USD

LIBOR

+

1.95

%

),

7/15/31

.

..................

United

States

250,000

233,803

Diversified

Financial

Services

5.2%

g,l

BlueMountain

CLO

Ltd.

,

2018-1A

,

D

,

144A,

FRN

,

7.465

%

,

(

3-month

USD

LIBOR

+

3.05

%

),

7/30/30

.

.........................

United

States

1,000,000

844,269

g,l

BlueMountain

Fuji

EUR

CLO

V

DAC

,

5A

,

B

,

144A,

FRN

,

1.55

%

,

(

3-month

EURIBOR

+

1.55

%

),

1/15/33

.

...................

Ireland

600,000

EUR

598,673

g,l

Burnham

Park

CLO

Ltd.

,

2016-1A

,

BR

,

144A,

FRN

,

5.743

%

,

(

3-month

USD

LIBOR

+

1.5

%

),

10/20/29

.

..................

United

States

460,000

435,145

g,l

Carlyle

Global

Market

Strategies

CLO

Ltd.

,

2014-4RA

,

C

,

144A,

FRN

,

6.979

%

,

(

3-month

USD

LIBOR

+

2.9

%

),

7/15/30

.

........

United

States

300,000

258,876

g,l

Carlyle

GMS

Finance

MM

CLO

LLC

,

2015-1A

,

A2R

,

144A,

FRN

,

6.279

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

10/15/31

.

...........

United

States

1,213,000

1,144,910

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-23

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Asset-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

g,l

Carlyle

US

CLO

Ltd.

,

2021-1A

,

A2

,

144A,

FRN

,

5.529

%

,

(

3-month

USD

LIBOR

+

1.45

%

),

4/15/34

.

.........................

United

States

1,500,000

$

1,425,451

g,m

Consumer

Loan

Underlying

Bond

Certificate

Issuer

Trust

I

,

2019-51,

PT,

144A,

FRN,

15.304%,

1/15/45

................

United

States

109,765

103,643

2019-52,

PT,

144A,

FRN,

16.254%,

1/15/45

................

United

States

129,790

123,345

2019-S8,

PT,

144A,

FRN,

10.13%,

1/15/45

.................

United

States

66,636

62,122

2020-2,

PT,

144A,

FRN,

14.758%,

3/15/45

.................

United

States

122,864

116,419

2020-7,

PT,

144A,

FRN,

15.477%,

4/17/45

.................

United

States

68,295

63,834

g,l

Dryden

75

CLO

Ltd.

,

2019-75A

,

AR2

,

144A,

FRN

,

5.119

%

,

(

3-month

USD

LIBOR

+

1.04

%

),

4/15/34

.

.........................

United

States

2,400,000

2,322,590

g

Home

Partners

of

America

Trust

,

2021-2,

B,

144A,

2.302%,

12/17/26

......................

United

States

1,234,731

1,057,127

2021-3,

B,

144A,

2.649%,

1/17/41

.......................

United

States

448,627

375,912

g,l

LCM

26

Ltd.

,

26A

,

B

,

144A,

FRN

,

5.643

%

,

(

3-month

USD

LIBOR

+

1.4

%

),

1/20/31

.

.....................................

United

States

250,000

238,981

g,l

LCM

XVII

LP

,

17A

,

BRR

,

144A,

FRN

,

5.679

%

,

(

3-month

USD

LIBOR

+

1.6

%

),

10/15/31

.

...................................

United

States

350,000

331,544

g,l

LCM

XVIII

LP

,

18A

,

DR

,

144A,

FRN

,

7.043

%

,

(

3-month

USD

LIBOR

+

2.8

%

),

4/20/31

.

....................................

United

States

770,000

685,332

g,l

Madison

Park

Euro

Funding

VIII

DAC

,

8A

,

BRN

,

144A,

FRN

,

3.078

%

,

(

3-month

EURIBOR

+

1.7

%

),

4/15/32

.

..............

Ireland

400,000

EUR

402,469

g,l

Magnetite

XXIX

Ltd.

,

2021-29A

,

B

,

144A,

FRN

,

5.479

%

,

(

3-month

USD

LIBOR

+

1.4

%

),

1/15/34

.

..........................

United

States

1,500,000

1,430,869

g,l

Northwoods

Capital

Ltd.

,

2018-11BA

,

A1

,

144A,

FRN

,

5.327

%

,

(

3-month

USD

LIBOR

+

1.1

%

),

4/19/31

.

...................

United

States

591,108

575,766

g,l

Octagon

Investment

Partners

28

Ltd.

,

2016-1A

,

BR

,

144A,

FRN

,

6.125

%

,

(

3-month

USD

LIBOR

+

1.8

%

),

10/24/30

.

...........

United

States

250,000

242,907

g,l

Octagon

Investment

Partners

36

Ltd.

,

2018-1A

,

A1

,

144A,

FRN

,

5.049

%

,

(

3-month

USD

LIBOR

+

0.97

%

),

4/15/31

.

...........

United

States

500,000

492,355

g,m

Prosper

Pass-Thru

Trust

III

,

2020-PT1,

A,

144A,

FRN,

15.363%,

3/15/26

................

United

States

70,089

69,106

2020-PT2,

A,

144A,

FRN,

18.341%,

4/15/26

................

United

States

80,712

77,458

2020-PT3,

A,

144A,

FRN,

19.746%,

5/15/26

................

United

States

23,661

22,269

g,l

Strata

CLO

I

Ltd.

,

2018-1A

,

B

,

144A,

FRN

,

6.279

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

1/15/31

.

..............................

United

States

1,300,000

1,286,410

g,m

Upgrade

Master

Pass-Thru

Trust

,

2019-PT2

,

A

,

144A,

FRN

,

17.038

%

,

2/15/26

.

...................................

United

States

60,161

59,093

g,l

Voya

CLO

Ltd.

,

2013-2A

,

BR

,

144A,

FRN

,

6.172

%

,

(

3-month

SOFR

+

2.112

%

),

4/25/31

.

..................................

United

States

780,000

731,226

15,578,101

a

a

a

a

a

a

Total

Asset-Backed

Securities

(Cost

$16,996,097)

...............................

15,884,486

Commercial

Mortgage-Backed

Securities

0.5%

Diversified

Financial

Services

0.5%

g,l

BX

Commercial

Mortgage

Trust

,

2021-VOLT,

A,

144A,

FRN,

5.018%,

(1-month

USD

LIBOR

+

0.7%),

9/15/36

......................................

United

States

250,000

241,178

2021-VOLT,

B,

144A,

FRN,

5.268%,

(1-month

USD

LIBOR

+

0.95%),

9/15/36

.....................................

United

States

400,000

377,917

2022-LP2,

A,

144A,

FRN,

5.349%,

(1-month

SOFR

+

1.013%),

2/15/39

...........................................

United

States

881,970

851,367

m

Commercial

Mortgage

Trust

,

2006-GG7

,

AJ

,

FRN

,

6.012

%

,

7/10/38

United

States

186,216

123,145

1,593,607

a

a

a

a

a

a

Total

Commercial

Mortgage-Backed

Securities

(Cost

$1,707,808)

.................

1,593,607

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

Annual

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

Mortgage-Backed

Securities

6.3%

n

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

4,491

$

4,383

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Fixed

Rate

5.0%

FHLMC

Gold

Pool,

30

Year,

5%,

4/01/34

-

8/01/35

.............

United

States

77,583

78,455

FHLMC

Gold

Pool,

30

Year,

5.5%,

6/01/33

-

1/01/35

...........

United

States

59,889

60,831

FHLMC

Gold

Pool,

30

Year,

6%,

4/01/33

-

2/01/36

.............

United

States

57,763

59,239

FHLMC

Gold

Pool,

30

Year,

6.5%,

11/01/27

-

7/01/32

..........

United

States

6,618

6,824

FHLMC

Gold

Pool,

30

Year,

7%,

4/01/30

....................

United

States

921

948

FHLMC

Gold

Pool,

30

Year,

7.5%,

8/01/30

..................

United

States

120

126

FHLMC

Pool,

30

Year,

2%,

3/01/52

........................

United

States

3,905,185

3,184,419

FHLMC

Pool,

30

Year,

4%,

6/01/52

........................

United

States

2,715,561

2,549,853

FHLMC

Pool,

30

Year,

4.5%,

8/01/52

.......................

United

States

6,270,667

6,042,069

FHLMC

Pool,

30

Year,

5.5%,

11/01/52

......................

United

States

3,140,515

3,152,795

15,135,559

n

Federal

National

Mortgage

Association

(FNMA)

Adjustable

Rate

0.0%

†

FNMA,

4.279%,

(1-year

CMT

T-Note

+/-

MBS

Margin),

12/01/34

..

United

States

27,792

27,543

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

1.2%

FNMA,

20

Year,

5%,

4/01/30

.............................

United

States

16,668

16,769

FNMA,

30

Year,

3%,

9/01/48

-

9/01/51

......................

United

States

1,947,996

1,726,181

FNMA,

30

Year,

4%,

2/01/49

.............................

United

States

619,354

593,310

FNMA,

30

Year,

4.5%,

5/01/48

...........................

United

States

1,289,597

1,266,258

FNMA,

30

Year,

6.5%,

5/01/31

-

10/01/37

...................

United

States

40,731

42,430

3,644,948

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

0.1%

GNMA

I,

Single-family,

30

Year,

5%,

11/15/33

-

7/15/34

.........

United

States

78,748

80,273

GNMA

I,

Single-family,

30

Year,

7%,

10/15/28

-

2/15/29

.........

United

States

9,352

9,354

GNMA

I,

Single-family,

30

Year,

7.5%,

9/15/30

................

United

States

771

799

GNMA

II,

30

Year,

6.5%,

2/20/34

..........................

United

States

1,662

1,611

GNMA

II,

Single-family,

30

Year,

5%,

9/20/33

-

11/20/33

.........

United

States

22,518

23,003

GNMA

II,

Single-family,

30

Year,

6%,

11/20/34

................

United

States

33,774

35,690

GNMA

II,

Single-family,

30

Year,

6.5%,

4/20/31

-

1/20/33

........

United

States

14,090

14,519

GNMA

II,

Single-family,

30

Year,

7.5%,

1/20/28

-

4/20/32

........

United

States

4,123

4,231

169,480

Total

Mortgage-Backed

Securities

(Cost

$19,582,843)

............................

18,981,913

Residential

Mortgage-Backed

Securities

4.7%

Diversified

Financial

Services

2.2%

g

BRAVO

Residential

Funding

Trust

,

2019-1,

A1C,

144A,

3.5%,

3/25/58

.......................

United

States

118,460

115,518

m

2019-2,

A3,

144A,

FRN,

3.5%,

10/25/44

...................

United

States

376,723

350,412

g,m

CIM

Trust

,

2019-INV1,

A1,

144A,

FRN,

4%,

2/25/49

..................

United

States

95,593

89,814

2019-INV2,

A3,

144A,

FRN,

4%,

5/25/49

..................

United

States

199,876

188,269

g,m

COLT

Mortgage

Loan

Trust

,

2022-4

,

A1

,

144A,

FRN

,

4.301

%

,

3/25/67

...........................................

United

States

402,548

386,128

g,m

J.P.

Morgan

Mortgage

Trust

,

2021-13,

A4,

144A,

FRN,

2.5%,

4/25/52

...................

United

States

1,357,156

1,171,482

2021-15,

A4,

144A,

FRN,

2.5%,

6/25/52

...................

United

States

429,066

369,852

2021-6,

A4,

144A,

FRN,

2.5%,

10/25/51

...................

United

States

769,693

663,470

g,m

Mill

City

Mortgage

Loan

Trust

,

2018-4

,

A1B

,

144A,

FRN

,

3.485

%

,

4/25/66

...........................................

United

States

664,621

632,561

g,m

OBX

Trust

,

2021-J3

,

A4

,

144A,

FRN

,

2.5

%

,

10/25/51

...........

United

States

281,194

242,737

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-25

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Residential

Mortgage-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

g,m

Provident

Funding

Associates

LLP

,

2021-J1

,

A3

,

144A,

FRN

,

2.5

%

,

2/20/49

...........................................

United

States

898,433

$

774,443

g,m

Provident

Funding

Mortgage

Trust

,

2019-1

,

A2

,

144A,

FRN

,

3

%

,

12/25/49

..........................................

United

States

159,472

133,383

g,m

PSMC

Trust

,

2021-3

,

A3

,

144A,

FRN

,

2.5

%

,

8/25/51

...........

United

States

1,642,418

1,419,843

6,537,912

a

a

a

a

a

a

Thrifts

&

Mortgage

Finance

2.5%

l

FHLMC

STACR

Debt

Notes

,

2013-DN2,

M2,

FRN,

8.639%,

(1-month

USD

LIBOR

+

4.25%),

11/25/23

..........................................

United

States

762,236

771,550

2014-DN2,

M3,

FRN,

7.989%,

(1-month

USD

LIBOR

+

3.6%),

4/25/24

...........................................

United

States

1,013,282

1,025,588

2014-DN3,

M3,

FRN,

8.389%,

(1-month

USD

LIBOR

+

4%),

8/25/24

...........................................

United

States

33,814

33,917

2014-DN4,

M3,

FRN,

8.939%,

(1-month

USD

LIBOR

+

4.55%),

10/25/24

..........................................

United

States

198,587

200,817

2015-DNA1,

M3,

FRN,

7.689%,

(1-month

USD

LIBOR

+

3.3%),

10/25/27

..........................................

United

States

40,357

40,780

2015-DNA3,

M3,

FRN,

9.089%,

(1-month

USD

LIBOR

+

4.7%),

4/25/28

...........................................

United

States

700,738

724,970

2016-DNA2,

M3,

FRN,

9.039%,

(1-month

USD

LIBOR

+

4.65%),

10/25/28

..........................................

United

States

607,458

625,451

l

FNMA

Connecticut

Avenue

Securities

,

2013-C01,

M2,

FRN,

9.639%,

(1-month

USD

LIBOR

+

5.25%),

10/25/23

..........................................

United

States

87,238

88,715

2014-C01,

M2,

FRN,

8.789%,

(1-month

USD

LIBOR

+

4.4%),

1/25/24

...........................................

United

States

154,864

159,027

2014-C02,

1M2,

FRN,

6.989%,

(1-month

USD

LIBOR

+

2.6%),

5/25/24

...........................................

United

States

489,639

495,880

2014-C02,

2M2,

FRN,

6.989%,

(1-month

USD

LIBOR

+

2.6%),

5/25/24

...........................................

United

States

147,748

147,656

2014-C03,

1M2,

FRN,

7.389%,

(1-month

USD

LIBOR

+

3%),

7/25/24

...........................................

United

States

971,684

990,417

2014-C03,

2M2,

FRN,

7.289%,

(1-month

USD

LIBOR

+

2.9%),

7/25/24

...........................................

United

States

23,136

23,146

2015-C01,

1M2,

FRN,

8.689%,

(1-month

USD

LIBOR

+

4.3%),

2/25/25

...........................................

United

States

165,823

168,809

2015-C02,

1M2,

FRN,

8.389%,

(1-month

USD

LIBOR

+

4%),

5/25/25

...........................................

United

States

452,013

454,628

2015-C03,

1M2,

FRN,

9.389%,

(1-month

USD

LIBOR

+

5%),

7/25/25

...........................................

United

States

641,648

651,840

2016-C01,

1M2,

FRN,

11.139%,

(1-month

USD

LIBOR

+

6.75%),

8/25/28

...........................................

United

States

103,677

108,315

2016-C03,

1M2,

FRN,

9.689%,

(1-month

USD

LIBOR

+

5.3%),

10/25/28

..........................................

United

States

556,465

575,752

2017-C04,

2M2,

FRN,

7.239%,

(1-month

USD

LIBOR

+

2.85%),

11/25/29

..........................................

United

States

405,732

409,149

7,696,407

a

a

a

a

a

a

Total

Residential

Mortgage-Backed

Securities

(Cost

$15,812,291)

.................

14,234,319

Shares

a

Escrows

and

Litigation

Trusts

0.0%

†

a,b

K2016470219

South

Africa

Ltd.,

Escrow

Account

..............

South

Africa

72,822

—

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-26

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Escrows

and

Litigation

Trusts

(continued)

a

Mesquite

Energy,

Inc.,

Escrow

Account

.....................

United

States

243,000

$

3,949

Total

Escrows

and

Litigation

Trusts

(Cost

$243,000)

.............................

3,949

Total

Long

Term

Investments

(Cost

$312,640,852)

...............................

279,015,373

a

Short

Term

Investments

6.1%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

6.1%

d,o

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

....

United

States

18,252,570

18,252,570

Total

Money

Market

Funds

(Cost

$18,252,570)

..................................

18,252,570

Total

Short

Term

Investments

(Cost

$18,252,570

)

................................

18,252,570

a

Total

Investments

(Cost

$330,893,422)

98.9%

...................................

$297,267,943

Other

Assets,

less

Liabilities

1.1%

.............................................

3,534,631

Net

Assets

100.0%

...........................................................

$300,802,574

*

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

December

31,

2022,

the

aggregate

value

of

these

securities

was

$109,685,653,

representing

36.5%

of

net

assets.

h

See

Note

7

regarding

credit

risk

and

defaulted

securities.

i

See

Note

1(f)

regarding

Marketplace

Lending.

See

full

breakdown

of

marketplace

loans

holdings

in

the

table

at

the

end

of

this

schedule.

j

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

k

Principal

amount

of

security

is

adjusted

for

inflation.

See

Note

1(h).

l

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

m

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.

n

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).

o

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments,

December

31,

2022

Franklin

Strategic

Income

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-27

At

December

31,

2022,

the

Fund

had

the

following

marketplace

loans

outstanding.

See

Note

1(d).

Description

Principal

Amount

Value

Marketplace

Loans

-

2.3%

Freedom

Financial

Asset

Management

LLC

APP-11693689.FP.FTS.B,

5.99%,

12/15/23

$

4,763

$

4,809

APP-11442537.FP.FTS.B,

5.99%,

12/17/23

3,968

4,007

APP-12232118.FP.FTS.B,

5.99%,

3/05/24

.

4,907

4,954

APP-11925836.FP.FTS.B,

5.99%,

3/12/24

.

4,497

4,546

APP-12933568.FP.FTS.B,

5.99%,

4/01/24

.

5,273

5,327

APP-14154619.FP.FTS.B,

5.99%,

6/07/24

.

7,932

8,026

APP-14139528.FP.FTS.B,

5.99%,

6/10/24

.

7,275

7,388

APP-14479194.FP.FTS.B,

16.99%,

7/11/24

13,684

13,848

APP-10114471.FP.FTS.B,

13.99%,

8/12/24

6,683

6,738

APP-10844146.FP.FTS.B,

23.99%,

10/18/24

..........................

7,204

1,588

APP-11822354.FP.FTS.B,

9.49%,

12/18/24

15,184

15,324

APP-11766036.FP.FTS.B,

23.74%,

12/18/24

19,120

18,998

APP-11746986.FP.FTS.B,

18.99%,

12/19/24

9,089

9,042

APP-11765697.FP.FTS.B,

16.99%,

12/24/24

7,329

7,336

APP-12220276.FP.FTS.B,

17.49%,

1/17/25

10,977

10,895

APP-11798383.FP.FTS.B,

19.99%,

2/01/25

7,811

7,748

APP-11693771.FP.FTS.B,

9.74%,

2/06/25

.

13,492

13,633

APP-11765858.FP.FTS.B,

19.49%,

2/06/25

12,523

12,372

APP-11695285.FP.FTS.B,

9.74%,

2/07/25

.

12,458

12,591

APP-11818700.FP.FTS.B,

17.74%,

2/08/25

15,814

15,577

APP-11817363.FP.FTS.B,

25.49%,

2/11/25

8,894

809

APP-11948847.FP.FTS.B,

11.74%,

3/08/25

23,666

23,879

APP-12139795.FP.FTS.B,

9.74%,

3/10/25

.

9,986

10,144

APP-14135500.FP.FTS.B,

14.49%,

4/25/25

19,855

20,033

APP-13668983.FP.FTS.B,

7.84%,

5/13/25

.

29,417

29,741

APP-13660633.FP.FTS.B,

25.49%,

5/13/25

8,847

3,150

APP-13704982.FP.FTS.B,

21.99%,

5/25/25

7,552

7,559

APP-14969419.FP.FTS.B,

9.74%,

6/01/25

.

25,794

26,060

APP-14148125.FP.FTS.B,

9.34%,

6/16/25

.

26,394

26,757

APP-13916851.FP.FTS.B,

9.34%,

6/18/25

.

24,875

25,228

APP-14959147.FP.FTS.B,

17.99%,

7/21/25

14,174

14,224

APP-11657858.FP.FTS.B,

17.49%,

12/16/25

12,980

13,075

APP-11765263.FP.FTS.B,

19.49%,

12/24/25

9,806

9,932

APP-11752447.FP.FTS.B,

9.99%,

2/05/26

.

32,321

32,780

APP-11823715.FP.FTS.B,

14.99%,

2/05/26

17,720

5,141

APP-11795510.FP.FTS.B,

12.49%,

2/11/26

15,486

15,718

APP-11804417.FP.FTS.B,

18.49%,

2/12/26

8,271

1,600

APP-11819292.FP.FTS.B,

18.99%,

2/12/26

11,266

11,272

APP-12232816.FP.FTS.B,

15.99%,

3/09/26

20,906

21,096

APP-13646258.FP.FTS.B,

22.99%,

5/14/26

13,363

13,349

APP-13608417.FP.FTS.B,

10.34%,

5/20/26

19,206

19,508

APP-13700836.FP.FTS.B,

18.99%,

5/28/26

17,498

17,491

APP-14159522.FP.FTS.B,

10.34%,

6/15/26

19,841

20,159

APP-14167786.FP.FTS.B,

10.34%,

6/16/26

31,927

32,447

APP-14974854.FP.FTS.B,

16.49%,

7/10/26

18,170

18,312

APP-14865971.FP.FTS.B,

8.74%,

7/24/26

.

26,014

26,472

APP-14985540.FP.FTS.B,

16.74%,

7/24/26

46,057

23,804

APP-11124654.FP.FTS.B,

19.49%,

12/18/26

36,783

36,909

APP-11605924.FP.FTS.B,

11.74%,

12/20/26

39,114

39,625

APP-11720742.FP.FTS.B,

18.99%,

12/21/26

20,858

20,937

APP-11764235.FP.FTS.B,

11.74%,

12/29/26

42,172

42,797

APP-11813151.FP.FTS.B,

20.99%,

12/30/26

4,513

2,871

APP-11822469.FP.FTS.B,

22.49%,

12/30/26

10,410

1,355

APP-12248562.FP.FTS.B,

16.74%,

1/18/27

43,395

43,533

Description

Principal

Amount

Value

Freedom

Financial

Asset

Management

LLC

(continued)

APP-12016647.FP.FTS.B,

16.99%,

1/25/27

$

17,258

$

17,350

APP-11749109.FP.FTS.B,

17.49%,

2/06/27

17,641

17,573

APP-11756687.FP.FTS.B,

19.49%,

2/06/27

6,615

6,520

APP-11803939.FP.FTS.B,

10.99%,

2/10/27

30,049

30,470

APP-11806622.FP.FTS.B,

18.99%,

2/11/27

8,865

8,899

APP-11798689.FP.FTS.B,

16.99%,

2/12/27

17,343

17,565

APP-12238134.FP.FTS.B,

20.24%,

3/03/27

24,397

24,075

APP-12140585.FP.FTS.B,

11.24%,

3/12/27

26,237

26,597

APP-12106231.FP.FTS.B,

11.74%,

3/13/27

37,695

38,288

APP-12249339.FP.FTS.B,

19.49%,

3/13/27

18,048

18,038

APP-11878312.FP.FTS.B,

10.99%,

3/14/27

17,920

18,174

APP-12139734.FP.FTS.B,

13.49%,

3/14/27

14,034

14,252

APP-13678387.FP.FTS.B,

13.84%,

4/03/27

13,485

13,593

APP-13561151.FP.FTS.B,

16.74%,

4/12/27

33,612

34,001

APP-13705025.FP.FTS.B,

10.84%,

5/14/27

26,887

27,239

APP-13695562.FP.FTS.B,

20.49%,

5/14/27

18,374

18,265

APP-13684451.FP.FTS.B,

17.24%,

5/15/27

45,602

46,080

APP-13199139.FP.FTS.B,

11.74%,

5/20/27

39,410

39,999

APP-13685540.FP.FTS.B,

13.59%,

5/20/27

33,364

33,832

APP-13701830.FP.FTS.B,

20.24%,

5/21/27

27,675

27,628

APP-13668745.FP.FTS.B,

23.99%,

5/23/27

14,506

14,475

APP-13628442.FP.FTS.B,

17.99%,

5/24/27

15,893

16,009

APP-13699606.FP.FTS.B,

20.49%,

5/26/27

2,661

2,641

APP-13694837.FP.FTS.B,

14.34%,

5/27/27

41,876

42,580

APP-14967059.FP.FTS.B,

11.99%,

6/01/27

15,214

15,378

APP-14831064.FP.FTS.B,

11.74%,

6/04/27

37,580

38,104

APP-14058204.FP.FTS.B,

11.59%,

6/05/27

12,241

12,390

APP-14861817.FP.FTS.B,

11.99%,

6/05/27

18,470

18,662

APP-14057383.FP.FTS.B,

11.34%,

6/15/27

33,003

33,506

APP-14167090.FP.FTS.B,

11.34%,

6/15/27

36,554

37,110

APP-14120872.FP.FTS.B,

13.59%,

6/15/27

18,392

18,656

APP-14165501.FP.FTS.B,

13.34%,

6/16/27

12,306

12,486

APP-13060373.FP.FTS.B,

11.34%,

6/19/27

21,462

5,919

APP-14163864.FP.FTS.B,

11.34%,

6/19/27

36,608

37,209

APP-14867762.FP.FTS.B,

14.24%,

7/10/27

15,521

15,709

APP-14981611.FP.FTS.B,

16.49%,

7/10/27

10,268

10,392

APP-14837945.FP.FTS.B,

18.49%,

7/10/27

22,342

22,336

APP-14926519.FP.FTS.B,

9.74%,

7/11/27

.

32,238

32,678

APP-14970727.FP.FTS.B,

9.74%,

7/13/27

.

26,912

27,294

APP-14975701.FP.FTS.B,

11.74%,

7/15/27

18,528

18,805

APP-14892088.FP.FTS.B,

14.49%,

7/15/27

9,785

9,935

APP-14939586.FP.FTS.B,

14.24%,

7/22/27

14,083

14,295

APP-14791332.FP.FTS.B,

17.74%,

7/22/27

28,256

28,495

APP-14959631.FP.FTS.B,

17.74%,

7/22/27

47,661

48,461

APP-14178116.FP.FTS.B,

17.74%,

7/23/27

46,947

47,274

1,901,751

LendingClub

Corp.

-

LCX

166043155.LC.FTS.B,

14.3%,

2/03/23

...

330

330

166662631.LC.FTS.B,

20.55%,

2/21/23

...

438

442

167225770.LC.FTS.B,

25.65%,

2/28/23

...

1,118

14

167701933.LC.FTS.B,

10.33%,

3/03/23

...

1,243

1,237

168221172.LC.FTS.B,

8.81%,

3/15/23

....

802

793

167497337.LC.FTS.B,

10.33%,

3/15/23

...

2,261

1,875

166308005.LC.FTS.B,

20.55%,

4/10/23

...

975

973

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-28

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

LendingClub

Corp.

-

LCX

(continued)

166957411.LC.FTS.B,

15.24%,

4/19/23

...

$

205

$

200

158759739.LC.FTS.B,

16.12%,

11/25/24

..

11,110

10,745

165633933.LC.FTS.B,

11.02%,

1/28/25

...

9,678

9,282

165313131.LC.FTS.B,

11.02%,

2/03/25

...

15,984

15,296

166049294.LC.FTS.B,

14.3%,

2/03/25

...

5,990

5,758

166979816.LC.FTS.B,

15.24%,

2/24/25

...

8,059

7,726

167106425.LC.FTS.B,

18.62%,

2/28/25

...

4,978

4,833

165954765.LC.FTS.B,

20.55%,

3/20/25

...

7,390

7,081

165475303.LC.FTS.B,

8.19%,

1/24/33

...

165

165

165393871.LC.FTS.B,

11.02%,

1/24/33

...

519

520

165581669.LC.FTS.B,

7.56%,

1/27/33

...

457

454

165690410.LC.FTS.B,

15.24%,

1/28/33

...

172

173

165696133.LC.FTS.B,

17.74%,

1/28/33

...

760

756

68,653

LendingClub

Corp.

-

LCX

PM

171026131.LC.FTS.B,

14.02%,

10/08/23

..

7,059

6,930

171023265.LC.FTS.B,

17.3%,

10/08/23

...

1,906

1,858

171077226.LC.FTS.B,

10.19%,

10/13/23

..

763

738

172927033.LC.FTS.B,

10.81%,

12/24/23

..

2,949

2,880

173276655.LC.FTS.B,

18.24%,

12/24/23

..

1,976

1,945

174324177.LC.FTS.B,

14.99%,

2/03/24

...

2,213

2,177

170715926.LC.FTS.B,

16.08%,

10/13/25

..

9,926

9,635

170676409.LC.FTS.B,

17.3%,

10/13/25

...

8,023

7,724

171176757.LC.FTS.B,

18.24%,

10/27/25

..

6,834

6,596

174329530.LC.FTS.B,

20.49%,

2/03/26

...

7,438

7,281

174350163.LC.FTS.B,

18.44%,

2/15/26

...

9,648

9,460

57,224

Prosper

Funding

LLC

1611508.PS.FTS.B,

15.4%,

8/20/24

.....

3,058

2,962

1612567.PS.FTS.B,

24.6%,

8/23/24

.....

1,305

1,289

1623671.PS.FTS.B,

25.71%,

9/21/24

....

6,728

6,642

1628458.PS.FTS.B,

18.5%,

9/22/24

.....

3,243

3,174

1620408.PS.FTS.B,

12.5%,

9/23/24

.....

25,477

5,016

1627820.PS.FTS.B,

12.15%,

9/28/24

....

3,267

3,168

1627811.PS.FTS.B,

13.05%,

9/28/24

....

13,131

12,730

1638201.PS.FTS.B,

13.3%,

9/28/24

.....

6,267

6,076

1638657.PS.FTS.B,

16.1%,

9/28/24

.....

1,334

1,293

1628909.PS.FTS.B,

17.96%,

9/29/24

....

5,047

4,976

1629401.PS.FTS.B,

13.5%,

9/30/24

.....

3,985

3,830

1657122.PS.FTS.B,

10.8%,

10/29/24

....

4,729

4,630

1656696.PS.FTS.B,

11.7%,

10/29/24

....

8,821

8,642

1645598.PS.FTS.B,

16.2%,

10/31/24

....

4,778

4,745

1651234.PS.FTS.B,

13.7%,

11/01/24

....

2,630

2,515

1660959.PS.FTS.B,

14%,

11/05/24

......

126

124

1650965.PS.FTS.B,

18.41%,

11/05/24

....

6,879

6,587

1653314.PS.FTS.B,

13.2%,

11/09/24

....

2,049

1,975

1654279.PS.FTS.B,

12.4%,

11/11/24

.....

6,141

5,911

1650962.PS.FTS.B,

13.81%,

11/29/24

....

7,200

7,021

1686771.PS.FTS.B,

12%,

12/16/24

......

4,586

4,426

1679839.PS.FTS.B,

12.76%,

12/16/24

...

2,839

2,751

1680232.PS.FTS.B,

15.5%,

12/16/24

....

14,329

13,759

1674092.PS.FTS.B,

16.2%,

12/16/24

....

4,559

4,408

1679833.PS.FTS.B,

17.54%,

12/16/24

...

5,782

5,593

1686723.PS.FTS.B,

18.4%,

12/16/24

....

1,449

1,401

1673696.PS.FTS.B,

24.3%,

12/16/24

....

5,369

4,543

1688400.PS.FTS.B,

15.4%,

12/20/24

....

1,432

1,378

Description

Principal

Amount

Value

Prosper

Funding

LLC

(continued)

1681375.PS.FTS.B,

16.02%,

12/20/24

...

$

1,024

$

993

1690251.PS.FTS.B,

13.66%,

12/22/24

...

6,397

6,182

1677551.PS.FTS.B,

18.09%,

12/22/24

...

1,291

1,251

1701345.PS.FTS.B,

11.4%,

1/13/25

.....

8,524

–

1695034.PS.FTS.B,

14.89%,

1/13/25

....

3,699

3,544

1701351.PS.FTS.B,

16.1%,

1/13/25

.....

1,486

1,424

1694578.PS.FTS.B,

19.83%,

1/13/25

....

3,392

3,250

1702155.PS.FTS.B,

15.21%,

1/14/25

....

3,703

3,550

1688540.PS.FTS.B,

12.3%,

1/20/25

.....

7,325

7,069

1705446.PS.FTS.B,

21.69%,

1/20/25

....

1,518

1,478

1701777.PS.FTS.B,

15.1%,

1/25/25

.....

5,405

5,175

1688531.PS.FTS.B,

16.02%,

1/26/25

....

10,490

10,082

1692122.PS.FTS.B,

13%,

2/01/25

.......

23,416

22,618

1714693.PS.FTS.B,

12.4%,

2/15/25

.....

8,714

8,411

1721001.PS.FTS.B,

18.6%,

2/15/25

.....

6,970

6,709

1714705.PS.FTS.B,

18.8%,

2/15/25

.....

6,200

5,940

1708034.PS.FTS.B,

20.01%,

2/15/25

....

3,891

3,744

1721031.PS.FTS.B,

20.4%,

2/15/25

.....

1,558

1,500

1722672.PS.FTS.B,

10.5%,

2/16/25

.....

4,515

4,359

1722483.PS.FTS.B,

15.4%,

2/16/25

.....

15,319

14,685

1722186.PS.FTS.B,

24.4%,

2/16/25

.....

7,513

1,114

1710260.PS.FTS.B,

22.6%,

2/28/25

.....

1,690

1,624

1718530.PS.FTS.B,

24.4%,

2/28/25

.....

3,270

3,156

1721323.PS.FTS.B,

16.4%,

3/07/25

.....

5,380

5,174

1720980.PS.FTS.B,

19.56%,

3/08/25

....

5,285

5,070

1749430.PS.FTS.B,

23.59%,

4/05/25

....

6,693

6,384

1743116.PS.FTS.B,

12.4%,

4/06/25

.....

4,044

3,911

1744403.PS.FTS.B,

13.9%,

4/07/25

.....

6,905

6,609

1754061.PS.FTS.B,

16%,

4/07/25

.......

5,721

5,475

1752367.PS.FTS.B,

18.09%,

4/11/25

....

2,805

–

1752829.PS.FTS.B,

18.09%,

4/11/25

....

1,644

1,574

1754218.PS.FTS.B,

22.6%,

4/12/25

.....

1,665

1,595

1750364.PS.FTS.B,

18.5%,

4/15/25

.....

8,231

7,902

1759842.PS.FTS.B,

22.9%,

4/15/25

.....

3,748

3,598

1754544.PS.FTS.B,

16.1%,

4/18/25

.....

8,221

7,870

1606280.PS.FTS.B,

14.7%,

7/17/25

.....

1,612

–

1605968.PS.FTS.B,

14.29%,

8/17/26

....

5,989

5,727

1605959.PS.FTS.B,

18.73%,

8/17/26

....

16,334

15,615

1618044.PS.FTS.B,

15.1%,

8/19/26

.....

7,923

7,626

1611667.PS.FTS.B,

12.6%,

8/20/26

.....

5,144

4,958

1620426.PS.FTS.B,

20%,

8/24/26

.......

17,256

16,705

1610432.PS.FTS.B,

14.03%,

8/25/26

....

5,184

5,002

1622637.PS.FTS.B,

12.7%,

8/27/26

.....

5,543

5,351

1622940.PS.FTS.B,

13.7%,

8/30/26

.....

9,721

9,323

1624202.PS.FTS.B,

11.79%,

9/21/26

....

15,237

14,688

1648285.PS.FTS.B,

12.62%,

10/26/26

...

6,555

6,291

1644821.PS.FTS.B,

16.18%,

10/26/26

...

11,660

11,163

1644836.PS.FTS.B,

18.5%,

10/26/26

....

5,468

5,265

1648942.PS.FTS.B,

11.89%,

10/27/26

....

5,308

5,124

1645184.PS.FTS.B,

16.9%,

10/27/26

....

773

758

1645643.PS.FTS.B,

18.5%,

10/27/26

....

9,254

8,915

1645601.PS.FTS.B,

26.13%,

10/27/26

...

4,334

4,244

1646399.PS.FTS.B,

10.5%,

10/28/26

....

9,080

8,768

1657248.PS.FTS.B,

10.5%,

10/29/26

....

20,637

20,121

1646459.PS.FTS.B,

11.89%,

10/29/26

....

8,307

8,109

1646507.PS.FTS.B,

16%,

11/02/26

......

13,546

12,971

1654273.PS.FTS.B,

11.4%,

11/05/26

.....

12,428

11,939

1661067.PS.FTS.B,

12.3%,

11/05/26

....

8,318

7,991

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-29

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Prosper

Funding

LLC

(continued)

1660821.PS.FTS.B,

12.5%,

11/05/26

....

$

12,488

$

11,997

1661382.PS.FTS.B,

16.7%,

11/05/26

....

4,237

4,038

1660956.PS.FTS.B,

18.25%,

11/05/26

....

5,968

5,687

1651610.PS.FTS.B,

10.8%,

11/08/26

....

8,676

8,341

1664763.PS.FTS.B,

13.8%,

11/08/26

....

2,295

2,217

1666497.PS.FTS.B,

13.8%,

11/09/26

....

12,559

11,953

1647191.PS.FTS.B,

16.32%,

11/12/26

....

10,314

9,877

1660294.PS.FTS.B,

15.2%,

11/15/26

....

10,131

9,638

1664083.PS.FTS.B,

11.6%,

11/17/26

.....

6,634

6,391

1679851.PS.FTS.B,

10.9%,

12/16/26

....

15,136

14,585

1673693.PS.FTS.B,

12.5%,

12/16/26

....

13,115

12,650

1686732.PS.FTS.B,

12.62%,

12/16/26

...

4,234

4,080

1686756.PS.FTS.B,

20.08%,

12/16/26

...

6,531

6,240

1673687.PS.FTS.B,

25.6%,

12/16/26

....

8,976

7,586

1674302.PS.FTS.B,

18.33%,

12/17/26

...

16,212

15,461

1674281.PS.FTS.B,

21%,

12/17/26

......

2,592

2,514

1675325.PS.FTS.B,

14%,

12/20/26

......

16,950

16,187

1695804.PS.FTS.B,

10.8%,

1/04/27

.....

4,271

4,108

1694569.PS.FTS.B,

10.5%,

1/13/27

.....

5,973

5,756

1701348.PS.FTS.B,

11.1%,

1/13/27

.....

4,276

4,121

1688537.PS.FTS.B,

13.7%,

1/13/27

.....

9,066

8,635

1702140.PS.FTS.B,

11.55%,

1/14/27

....

12,850

12,386

1701774.PS.FTS.B,

19.3%,

1/16/27

.....

7,054

6,698

1703079.PS.FTS.B,

10.5%,

1/18/27

.....

11,861

11,443

1689971.PS.FTS.B,

11.6%,

1/18/27

.....

6,855

6,613

1691666.PS.FTS.B,

11.88%,

1/19/27

....

6,862

6,622

1705047.PS.FTS.B,

17.54%,

1/19/27

....

12,918

12,330

1704972.PS.FTS.B,

24.18%,

1/19/27

....

6,253

6,050

1692578.PS.FTS.B,

13.1%,

1/20/27

.....

3,435

3,316

1699192.PS.FTS.B,

14.6%,

1/20/27

.....

29,830

28,483

1694423.PS.FTS.B,

15%,

1/24/27

.......

13,012

12,442

1702129.PS.FTS.B,

12.7%,

1/25/27

.....

6,022

5,819

1709019.PS.FTS.B,

19%,

1/25/27

.......

10,550

10,105

1702634.PS.FTS.B,

21.95%,

2/04/27

....

12,573

12,013

1721025.PS.FTS.B,

10.53%,

2/15/27

....

1,734

1,674

1714696.PS.FTS.B,

12.6%,

2/15/27

.....

8,732

8,427

1708016.PS.FTS.B,

12.62%,

2/15/27

....

17,465

16,854

1720968.PS.FTS.B,

12.62%,

2/15/27

....

17,465

16,854

1714699.PS.FTS.B,

16.1%,

2/15/27

.....

8,830

8,418

1715326.PS.FTS.B,

16.83%,

2/15/27

....

14,601

13,889

1709231.PS.FTS.B,

13.7%,

2/16/27

.....

12,707

12,120

1716949.PS.FTS.B,

11.77%,

2/17/27

....

13,119

12,685

1711397.PS.FTS.B,

18.15%,

2/22/27

....

15,992

15,283

1709558.PS.FTS.B,

13.4%,

2/28/27

.....

16,233

15,527

1752507.PS.FTS.B,

25.9%,

4/05/27

.....

6,967

6,615

1743635.PS.FTS.B,

13.1%,

4/06/27

.....

11,336

10,968

1753401.PS.FTS.B,

16.9%,

4/06/27

.....

13,836

13,085

1750201.PS.FTS.B,

19.9%,

4/06/27

.....

9,168

8,669

1750603.PS.FTS.B,

14.29%,

4/07/27

....

4,521

4,318

1751788.PS.FTS.B,

15.7%,

4/08/27

.....

9,075

8,671

1759809.PS.FTS.B,

12.5%,

4/15/27

.....

28,349

27,510

1753794.PS.FTS.B,

15.1%,

4/20/27

.....

7,292

6,964

1700734.PS.FTS.B,

16.2%,

12/24/27

....

22,093

21,124

1,037,276

Upgrade,

Inc.

-

Card

992398221.UG.FTS.B,

19.3%,

4/03/24

...

101

101

992447830.UG.FTS.B,

22.45%,

4/03/24

..

153

152

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

992438577.UG.FTS.B,

25.45%,

4/03/24

..

$

187

$

186

992341725.UG.FTS.B,

28.48%,

4/03/24

..

34

34

992357631.UG.FTS.B,

28.48%,

4/03/24

..

2

2

992458720.UG.FTS.B,

29.49%,

4/03/24

..

28

28

992378488.UG.FTS.B,

Zero

Cpn,

4/04/24

.

158

11

992264301.UG.FTS.B,

29.49%,

4/04/24

..

246

247

992282840.UG.FTS.B,

29.49%,

4/04/24

..

595

604

992459954.UG.FTS.B,

29.49%,

4/04/24

..

142

18

992250596.UG.FTS.B,

Zero

Cpn,

4/05/24

.

65

5

992347446.UG.FTS.B,

Zero

Cpn,

4/05/24

.

907

63

992350092.UG.FTS.B,

Zero

Cpn,

4/05/24

.

90

6

992414707.UG.FTS.B,

Zero

Cpn,

4/05/24

.

248

17

992436739.UG.FTS.B,

Zero

Cpn,

4/05/24

.

51

4

992444368.UG.FTS.B,

Zero

Cpn,

4/05/24

.

901

63

992285365.UG.FTS.B,

17.49%,

4/05/24

..

283

285

992240347.UG.FTS.B,

18.71%,

4/05/24

..

95

96

992241984.UG.FTS.B,

18.71%,

4/05/24

..

219

221

992239693.UG.FTS.B,

19.3%,

4/05/24

...

482

480

992324126.UG.FTS.B,

19.3%,

4/05/24

...

157

(1)

992378711.UG.FTS.B,

19.3%,

4/05/24

...

568

571

992333048.UG.FTS.B,

19.99%,

4/05/24

..

108

108

992246266.UG.FTS.B,

20.47%,

4/05/24

..

28

28

992286774.UG.FTS.B,

20.47%,

4/05/24

..

231

232

992418214.UG.FTS.B,

20.47%,

4/05/24

..

669

667

992419308.UG.FTS.B,

20.47%,

4/05/24

..

32

2

992239776.UG.FTS.B,

20.96%,

4/05/24

..

239

240

992244483.UG.FTS.B,

21.48%,

4/05/24

..

204

205

992266844.UG.FTS.B,

21.48%,

4/05/24

..

89

89

992416498.UG.FTS.B,

21.48%,

4/05/24

..

713

709

992256931.UG.FTS.B,

25.44%,

4/05/24

..

231

28

992273417.UG.FTS.B,

25.44%,

4/05/24

..

55

55

992300539.UG.FTS.B,

25.45%,

4/05/24

..

34

34

992274561.UG.FTS.B,

28.48%,

4/05/24

..

53

53

992284254.UG.FTS.B,

28.48%,

4/05/24

..

146

149

992296532.UG.FTS.B,

28.48%,

4/05/24

..

17

17

992315245.UG.FTS.B,

28.48%,

4/05/24

..

67

67

992334224.UG.FTS.B,

28.48%,

4/05/24

..

67

68

992379401.UG.FTS.B,

28.48%,

4/05/24

..

122

123

992395391.UG.FTS.B,

28.48%,

4/05/24

..

94

94

992401140.UG.FTS.B,

28.48%,

4/05/24

..

168

170

992443753.UG.FTS.B,

28.48%,

4/05/24

..

114

114

992255341.UG.FTS.B,

28.98%,

4/05/24

..

320

(16)

992349368.UG.FTS.B,

29.46%,

4/05/24

..

30

30

992273722.UG.FTS.B,

29.47%,

4/05/24

..

217

220

992248833.UG.FTS.B,

29.48%,

4/05/24

..

74

75

992256649.UG.FTS.B,

29.48%,

4/05/24

..

146

19

992267090.UG.FTS.B,

29.48%,

4/05/24

..

94

96

992275640.UG.FTS.B,

29.48%,

4/05/24

..

152

153

992279719.UG.FTS.B,

29.48%,

4/05/24

..

83

82

992308582.UG.FTS.B,

29.48%,

4/05/24

..

12

11

992308882.UG.FTS.B,

29.48%,

4/05/24

..

10

10

992324240.UG.FTS.B,

29.48%,

4/05/24

..

138

141

992347467.UG.FTS.B,

29.48%,

4/05/24

..

220

223

992239914.UG.FTS.B,

29.49%,

4/05/24

..

42

42

992243934.UG.FTS.B,

29.49%,

4/05/24

..

36

14

992244373.UG.FTS.B,

29.49%,

4/05/24

..

85

85

992246075.UG.FTS.B,

29.49%,

4/05/24

..

119

120

992247689.UG.FTS.B,

29.49%,

4/05/24

..

624

618

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-30

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

992262726.UG.FTS.B,

29.49%,

4/05/24

..

$

241

$

244

992262764.UG.FTS.B,

29.49%,

4/05/24

..

16

16

992267548.UG.FTS.B,

29.49%,

4/05/24

..

35

30

992267982.UG.FTS.B,

29.49%,

4/05/24

..

286

290

992271382.UG.FTS.B,

29.49%,

4/05/24

..

129

131

992273344.UG.FTS.B,

29.49%,

4/05/24

..

39

39

992273433.UG.FTS.B,

29.49%,

4/05/24

..

57

4

992277911.UG.FTS.B,

29.49%,

4/05/24

..

101

27

992283053.UG.FTS.B,

29.49%,

4/05/24

..

92

93

992283646.UG.FTS.B,

29.49%,

4/05/24

..

211

156

992284455.UG.FTS.B,

29.49%,

4/05/24

..

1,395

1,416

992284613.UG.FTS.B,

29.49%,

4/05/24

..

–

–

992287261.UG.FTS.B,

29.49%,

4/05/24

..

22

22

992287722.UG.FTS.B,

29.49%,

4/05/24

..

133

33

992289546.UG.FTS.B,

29.49%,

4/05/24

..

27

24

992289947.UG.FTS.B,

29.49%,

4/05/24

..

125

122

992296652.UG.FTS.B,

29.49%,

4/05/24

..

11

11

992296969.UG.FTS.B,

29.49%,

4/05/24

..

66

4

992297108.UG.FTS.B,

29.49%,

4/05/24

..

72

73

992302092.UG.FTS.B,

29.49%,

4/05/24

..

112

109

992307882.UG.FTS.B,

29.49%,

4/05/24

..

117

118

992309362.UG.FTS.B,

29.49%,

4/05/24

..

145

148

992309531.UG.FTS.B,

29.49%,

4/05/24

..

79

20

992310025.UG.FTS.B,

29.49%,

4/05/24

..

238

239

992323342.UG.FTS.B,

29.49%,

4/05/24

..

49

49

992323446.UG.FTS.B,

29.49%,

4/05/24

..

96

95

992324210.UG.FTS.B,

29.49%,

4/05/24

..

60

60

992328175.UG.FTS.B,

29.49%,

4/05/24

..

54

4

992328853.UG.FTS.B,

29.49%,

4/05/24

..

111

113

992329601.UG.FTS.B,

29.49%,

4/05/24

..

72

71

992333933.UG.FTS.B,

29.49%,

4/05/24

..

193

27

992336975.UG.FTS.B,

29.49%,

4/05/24

..

142

142

992344980.UG.FTS.B,

29.49%,

4/05/24

..

78

10

992345689.UG.FTS.B,

29.49%,

4/05/24

..

72

71

992345838.UG.FTS.B,

29.49%,

4/05/24

..

171

(8)

992348729.UG.FTS.B,

29.49%,

4/05/24

..

54

54

992350277.UG.FTS.B,

29.49%,

4/05/24

..

137

138

992364426.UG.FTS.B,

29.49%,

4/05/24

..

42

42

992365430.UG.FTS.B,

29.49%,

4/05/24

..

54

54

992366150.UG.FTS.B,

29.49%,

4/05/24

..

196

198

992380190.UG.FTS.B,

29.49%,

4/05/24

..

7

7

992382545.UG.FTS.B,

29.49%,

4/05/24

..

7

7

992402117.UG.FTS.B,

29.49%,

4/05/24

..

174

45

992405301.UG.FTS.B,

29.49%,

4/05/24

..

39

39

992412416.UG.FTS.B,

29.49%,

4/05/24

..

348

346

992419454.UG.FTS.B,

29.49%,

4/05/24

..

33

32

992428512.UG.FTS.B,

29.49%,

4/05/24

..

124

123

992435585.UG.FTS.B,

29.49%,

4/05/24

..

371

296

992439811.UG.FTS.B,

29.49%,

4/05/24

..

86

85

992455893.UG.FTS.B,

29.49%,

4/05/24

..

109

109

992461968.UG.FTS.B,

29.49%,

4/05/24

..

83

82

992330988.UG.FTS.B,

18.71%,

6/03/24

..

210

212

992264392.UG.FTS.B,

Zero

Cpn,

4/03/25

.

522

36

992460846.UG.FTS.B,

Zero

Cpn,

4/03/25

.

494

35

992271010.UG.FTS.B,

17.97%,

4/03/25

..

200

199

992355930.UG.FTS.B,

19.8%,

4/03/25

...

214

215

992244955.UG.FTS.B,

19.99%,

4/03/25

..

122

123

992318841.UG.FTS.B,

19.99%,

4/03/25

..

1,046

1,038

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

992460958.UG.FTS.B,

20.46%,

4/03/25

..

$

305

$

306

992341430.UG.FTS.B,

23.95%,

4/03/25

..

146

145

992249317.UG.FTS.B,

28.98%,

4/03/25

..

698

710

992287702.UG.FTS.B,

28.98%,

4/03/25

..

301

301

992307437.UG.FTS.B,

28.98%,

4/03/25

..

498

497

992401201.UG.FTS.B,

28.98%,

4/03/25

..

28

28

992458860.UG.FTS.B,

28.98%,

4/03/25

..

239

14

992464185.UG.FTS.B,

28.98%,

4/03/25

..

46

46

992236828.UG.FTS.B,

29.49%,

4/03/25

..

84

86

992261673.UG.FTS.B,

29.49%,

4/03/25

..

97

95

992296038.UG.FTS.B,

29.49%,

4/03/25

..

388

394

992334340.UG.FTS.B,

29.49%,

4/03/25

..

86

24

992345330.UG.FTS.B,

29.49%,

4/03/25

..

406

411

992367110.UG.FTS.B,

29.49%,

4/03/25

..

1,006

1,008

992457538.UG.FTS.B,

29.49%,

4/03/25

..

23

23

992458735.UG.FTS.B,

29.49%,

4/03/25

..

22

9

992458807.UG.FTS.B,

29.49%,

4/03/25

..

55

55

992462894.UG.FTS.B,

29.49%,

4/03/25

..

109

110

992461071.UG.FTS.B,

Zero

Cpn,

4/04/25

.

155

11

992457494.UG.FTS.B,

17.99%,

4/04/25

..

559

564

992299146.UG.FTS.B,

28.98%,

4/04/25

..

567

564

992362408.UG.FTS.B,

28.98%,

4/04/25

..

21

21

992408749.UG.FTS.B,

28.98%,

4/04/25

..

351

74

992461489.UG.FTS.B,

28.98%,

4/04/25

..

18

18

992250417.UG.FTS.B,

29.49%,

4/04/25

..

176

174

992264434.UG.FTS.B,

29.49%,

4/04/25

..

215

212

992297978.UG.FTS.B,

29.49%,

4/04/25

..

42

41

992459117.UG.FTS.B,

29.49%,

4/04/25

..

11

11

992379087.UG.FTS.B,

Zero

Cpn,

4/05/25

.

992

69

992397317.UG.FTS.B,

Zero

Cpn,

4/05/25

.

32

2

992245824.UG.FTS.B,

16.99%,

4/05/25

..

212

212

992282393.UG.FTS.B,

16.99%,

4/05/25

..

1,649

1,677

992335587.UG.FTS.B,

17.97%,

4/05/25

..

355

221

992294096.UG.FTS.B,

17.99%,

4/05/25

..

381

381

992300496.UG.FTS.B,

17.99%,

4/05/25

..

98

99

992239267.UG.FTS.B,

19.21%,

4/05/25

..

1,665

1,688

992346705.UG.FTS.B,

19.21%,

4/05/25

..

827

839

992442455.UG.FTS.B,

19.21%,

4/05/25

..

2,011

2,024

992300281.UG.FTS.B,

19.8%,

4/05/25

...

18

18

992307969.UG.FTS.B,

19.8%,

4/05/25

...

97

98

992349565.UG.FTS.B,

19.8%,

4/05/25

...

993

1,005

992350427.UG.FTS.B,

19.8%,

4/05/25

...

829

839

992383581.UG.FTS.B,

19.8%,

4/05/25

...

219

222

992254243.UG.FTS.B,

19.99%,

4/05/25

..

347

349

992268585.UG.FTS.B,

19.99%,

4/05/25

..

94

97

992270154.UG.FTS.B,

19.99%,

4/05/25

..

520

536

992290118.UG.FTS.B,

19.99%,

4/05/25

..

122

126

992336548.UG.FTS.B,

19.99%,

4/05/25

..

1,274

1,289

992357555.UG.FTS.B,

19.99%,

4/05/25

..

161

164

992379889.UG.FTS.B,

19.99%,

4/05/25

..

1,042

1,067

992341688.UG.FTS.B,

20.46%,

4/05/25

..

127

128

992453559.UG.FTS.B,

20.46%,

4/05/25

..

2,063

2,071

992241765.UG.FTS.B,

20.97%,

4/05/25

..

433

438

992386629.UG.FTS.B,

20.97%,

4/05/25

..

3,318

3,354

992251309.UG.FTS.B,

21.46%,

4/05/25

..

412

416

992297939.UG.FTS.B,

21.46%,

4/05/25

..

7

7

992347533.UG.FTS.B,

21.46%,

4/05/25

..

208

210

992413295.UG.FTS.B,

21.46%,

4/05/25

..

133

133

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-31

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

992238211.UG.FTS.B,

21.98%,

4/05/25

..

$

657

$

663

992263295.UG.FTS.B,

21.98%,

4/05/25

..

335

335

992395369.UG.FTS.B,

21.98%,

4/05/25

..

275

277

992263400.UG.FTS.B,

22.95%,

4/05/25

..

350

352

992262511.UG.FTS.B,

22.97%,

4/05/25

..

728

733

992330039.UG.FTS.B,

22.97%,

4/05/25

..

561

368

992378853.UG.FTS.B,

22.97%,

4/05/25

..

899

58

992415093.UG.FTS.B,

22.97%,

4/05/25

..

237

239

992268373.UG.FTS.B,

23.95%,

4/05/25

..

507

503

992309324.UG.FTS.B,

23.95%,

4/05/25

..

782

51

992350011.UG.FTS.B,

23.95%,

4/05/25

..

79

79

992402436.UG.FTS.B,

23.95%,

4/05/25

..

10

10

992350254.UG.FTS.B,

24.96%,

4/05/25

..

106

105

992252550.UG.FTS.B,

27.99%,

4/05/25

..

40

39

992438360.UG.FTS.B,

27.99%,

4/05/25

..

193

195

992240832.UG.FTS.B,

28.98%,

4/05/25

..

79

81

992246882.UG.FTS.B,

28.98%,

4/05/25

..

772

788

992248396.UG.FTS.B,

28.98%,

4/05/25

..

857

883

992252552.UG.FTS.B,

28.98%,

4/05/25

..

10

10

992253878.UG.FTS.B,

28.98%,

4/05/25

..

573

566

992255354.UG.FTS.B,

28.98%,

4/05/25

..

54

15

992259876.UG.FTS.B,

28.98%,

4/05/25

..

106

109

992260350.UG.FTS.B,

28.98%,

4/05/25

..

97

97

992260733.UG.FTS.B,

28.98%,

4/05/25

..

298

306

992262040.UG.FTS.B,

28.98%,

4/05/25

..

177

182

992263660.UG.FTS.B,

28.98%,

4/05/25

..

478

476

992266496.UG.FTS.B,

28.98%,

4/05/25

..

132

132

992267371.UG.FTS.B,

28.98%,

4/05/25

..

1,055

1,087

992269403.UG.FTS.B,

28.98%,

4/05/25

..

10

10

992269419.UG.FTS.B,

28.98%,

4/05/25

..

354

42

992270480.UG.FTS.B,

28.98%,

4/05/25

..

232

240

992273307.UG.FTS.B,

28.98%,

4/05/25

..

2,206

2,272

992283631.UG.FTS.B,

28.98%,

4/05/25

..

821

832

992283659.UG.FTS.B,

28.98%,

4/05/25

..

215

219

992284082.UG.FTS.B,

28.98%,

4/05/25

..

213

220

992284271.UG.FTS.B,

28.98%,

4/05/25

..

1,709

1,741

992284330.UG.FTS.B,

28.98%,

4/05/25

..

1

1

992285475.UG.FTS.B,

28.98%,

4/05/25

..

26

26

992286835.UG.FTS.B,

28.98%,

4/05/25

..

112

115

992289248.UG.FTS.B,

28.98%,

4/05/25

..

17

17

992293208.UG.FTS.B,

28.98%,

4/05/25

..

308

312

992293228.UG.FTS.B,

28.98%,

4/05/25

..

113

73

992300368.UG.FTS.B,

28.98%,

4/05/25

..

98

101

992300466.UG.FTS.B,

28.98%,

4/05/25

..

407

273

992300547.UG.FTS.B,

28.98%,

4/05/25

..

119

123

992300944.UG.FTS.B,

28.98%,

4/05/25

..

147

149

992308269.UG.FTS.B,

28.98%,

4/05/25

..

116

120

992308546.UG.FTS.B,

28.98%,

4/05/25

..

92

94

992310426.UG.FTS.B,

28.98%,

4/05/25

..

166

163

992314709.UG.FTS.B,

28.98%,

4/05/25

..

372

370

992316890.UG.FTS.B,

28.98%,

4/05/25

..

884

907

992317837.UG.FTS.B,

28.98%,

4/05/25

..

11

11

992322709.UG.FTS.B,

28.98%,

4/05/25

..

170

175

992323257.UG.FTS.B,

28.98%,

4/05/25

..

14

14

992324031.UG.FTS.B,

28.98%,

4/05/25

..

665

685

992333704.UG.FTS.B,

28.98%,

4/05/25

..

36

13

992336076.UG.FTS.B,

28.98%,

4/05/25

..

44

(2)

992336115.UG.FTS.B,

28.98%,

4/05/25

..

296

305

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

992345324.UG.FTS.B,

28.98%,

4/05/25

..

$

28

$

28

992348005.UG.FTS.B,

28.98%,

4/05/25

..

425

438

992349767.UG.FTS.B,

28.98%,

4/05/25

..

279

(14)

992350279.UG.FTS.B,

28.98%,

4/05/25

..

456

298

992353271.UG.FTS.B,

28.98%,

4/05/25

..

607

622

992360785.UG.FTS.B,

28.98%,

4/05/25

..

186

(9)

992378373.UG.FTS.B,

28.98%,

4/05/25

..

666

675

992385229.UG.FTS.B,

28.98%,

4/05/25

..

253

260

992398111.UG.FTS.B,

28.98%,

4/05/25

..

136

138

992406035.UG.FTS.B,

28.98%,

4/05/25

..

755

778

992409294.UG.FTS.B,

28.98%,

4/05/25

..

16

15

992413133.UG.FTS.B,

28.98%,

4/05/25

..

418

90

992415454.UG.FTS.B,

28.98%,

4/05/25

..

929

943

992435220.UG.FTS.B,

28.98%,

4/05/25

..

183

184

992437799.UG.FTS.B,

28.98%,

4/05/25

..

7

7

992442881.UG.FTS.B,

28.98%,

4/05/25

..

57

56

992443445.UG.FTS.B,

28.98%,

4/05/25

..

19

19

992446631.UG.FTS.B,

28.98%,

4/05/25

..

86

88

992446902.UG.FTS.B,

28.98%,

4/05/25

..

3

3

992451365.UG.FTS.B,

28.98%,

4/05/25

..

14

14

992452469.UG.FTS.B,

28.98%,

4/05/25

..

252

254

992453910.UG.FTS.B,

28.98%,

4/05/25

..

30

30

992276659.UG.FTS.B,

29.46%,

4/05/25

..

42

17

992290075.UG.FTS.B,

29.46%,

4/05/25

..

10

6

992293126.UG.FTS.B,

29.46%,

4/05/25

..

54

55

992304458.UG.FTS.B,

29.46%,

4/05/25

..

96

99

992237772.UG.FTS.B,

29.49%,

4/05/25

..

49

49

992238384.UG.FTS.B,

29.49%,

4/05/25

..

53

54

992239318.UG.FTS.B,

29.49%,

4/05/25

..

103

106

992239897.UG.FTS.B,

29.49%,

4/05/25

..

34

34

992241701.UG.FTS.B,

29.49%,

4/05/25

..

558

373

992243923.UG.FTS.B,

29.49%,

4/05/25

..

2,892

2,947

992249401.UG.FTS.B,

29.49%,

4/05/25

..

–

–

992250643.UG.FTS.B,

29.49%,

4/05/25

..

256

15

992254667.UG.FTS.B,

29.49%,

4/05/25

..

371

370

992256558.UG.FTS.B,

29.49%,

4/05/25

..

116

119

992256966.UG.FTS.B,

29.49%,

4/05/25

..

632

622

992259460.UG.FTS.B,

29.49%,

4/05/25

..

87

89

992262634.UG.FTS.B,

29.49%,

4/05/25

..

17

17

992263028.UG.FTS.B,

29.49%,

4/05/25

..

21

21

992266945.UG.FTS.B,

29.49%,

4/05/25

..

26

26

992267222.UG.FTS.B,

29.49%,

4/05/25

..

275

283

992268106.UG.FTS.B,

29.49%,

4/05/25

..

112

115

992270160.UG.FTS.B,

29.49%,

4/05/25

..

58

58

992271134.UG.FTS.B,

29.49%,

4/05/25

..

118

122

992275086.UG.FTS.B,

29.49%,

4/05/25

..

457

471

992278455.UG.FTS.B,

29.49%,

4/05/25

..

217

223

992279419.UG.FTS.B,

29.49%,

4/05/25

..

20

19

992280377.UG.FTS.B,

29.49%,

4/05/25

..

232

239

992280735.UG.FTS.B,

29.49%,

4/05/25

..

132

130

992281701.UG.FTS.B,

29.49%,

4/05/25

..

54

53

992283304.UG.FTS.B,

29.49%,

4/05/25

..

313

38

992284321.UG.FTS.B,

29.49%,

4/05/25

..

480

491

992284964.UG.FTS.B,

29.49%,

4/05/25

..

78

80

992285081.UG.FTS.B,

29.49%,

4/05/25

..

57

58

992287347.UG.FTS.B,

29.49%,

4/05/25

..

13

13

992288356.UG.FTS.B,

29.49%,

4/05/25

..

458

466

992288429.UG.FTS.B,

29.49%,

4/05/25

..

134

138

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

Annual

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)

992288886.UG.FTS.B,

29.49%,

4/05/25

..

$

62

$

62

992289258.UG.FTS.B,

29.49%,

4/05/25

..

501

516

992297505.UG.FTS.B,

29.49%,

4/05/25

..

85

87

992298611.UG.FTS.B,

29.49%,

4/05/25

..

308

313

992298879.UG.FTS.B,

29.49%,

4/05/25

..

148

9

992302260.UG.FTS.B,

29.49%,

4/05/25

..

198

202

992302310.UG.FTS.B,

29.49%,

4/05/25

..

209

215

992302422.UG.FTS.B,

29.49%,

4/05/25

..

175

123

992303216.UG.FTS.B,

29.49%,

4/05/25

..

791

172

992304263.UG.FTS.B,

29.49%,

4/05/25

..

158

161

992305574.UG.FTS.B,

29.49%,

4/05/25

..

408

406

992306296.UG.FTS.B,

29.49%,

4/05/25

..

72

73

992307508.UG.FTS.B,

29.49%,

4/05/25

..

515

510

992309593.UG.FTS.B,

29.49%,

4/05/25

..

96

6

992317627.UG.FTS.B,

29.49%,

4/05/25

..

9

9

992318568.UG.FTS.B,

29.49%,

4/05/25

..

105

108

992321945.UG.FTS.B,

29.49%,

4/05/25

..

3,322

2,244

992321979.UG.FTS.B,

29.49%,

4/05/25

..

9

9

992323198.UG.FTS.B,

29.49%,

4/05/25

..

133

94

992323515.UG.FTS.B,

29.49%,

4/05/25

..

85

87

992328907.UG.FTS.B,

29.49%,

4/05/25

..

172

176

992330144.UG.FTS.B,

29.49%,

4/05/25

..

54

55

992332355.UG.FTS.B,

29.49%,

4/05/25

..

180

185

992333762.UG.FTS.B,

29.49%,

4/05/25

..

630

642

992336856.UG.FTS.B,

29.49%,

4/05/25

..

67

68

992340414.UG.FTS.B,

29.49%,

4/05/25

..

175

180

992344969.UG.FTS.B,

29.49%,

4/05/25

..

1,875

1,858

992356877.UG.FTS.B,

29.49%,

4/05/25

..

125

(9)

992359163.UG.FTS.B,

29.49%,

4/05/25

..

170

174

992364246.UG.FTS.B,

29.49%,

4/05/25

..

61

17

992378552.UG.FTS.B,

29.49%,

4/05/25

..

127

128

992379207.UG.FTS.B,

29.49%,

4/05/25

..

137

136

992379445.UG.FTS.B,

29.49%,

4/05/25

..

212

213

992380197.UG.FTS.B,

29.49%,

4/05/25

..

74

(4)

992384442.UG.FTS.B,

29.49%,

4/05/25

..

16

16

992385119.UG.FTS.B,

29.49%,

4/05/25

..

167

(4)

992398519.UG.FTS.B,

29.49%,

4/05/25

..

58

58

992410434.UG.FTS.B,

29.49%,

4/05/25

..

1,026

1,038

992410964.UG.FTS.B,

29.49%,

4/05/25

..

22

21

992413134.UG.FTS.B,

29.49%,

4/05/25

..

465

97

992415144.UG.FTS.B,

29.49%,

4/05/25

..

143

9

992416332.UG.FTS.B,

29.49%,

4/05/25

..

953

962

992423485.UG.FTS.B,

29.49%,

4/05/25

..

191

188

992428186.UG.FTS.B,

29.49%,

4/05/25

..

2,677

2,697

992438905.UG.FTS.B,

29.49%,

4/05/25

..

20

19

992439563.UG.FTS.B,

29.49%,

4/05/25

..

168

(8)

992443418.UG.FTS.B,

29.49%,

4/05/25

..

135

137

992444794.UG.FTS.B,

29.49%,

4/05/25

..

5,065

5,096

992444865.UG.FTS.B,

29.49%,

4/05/25

..

72

74

992445820.UG.FTS.B,

29.49%,

4/05/25

..

135

137

992446758.UG.FTS.B,

29.49%,

4/05/25

..

17

17

992448030.UG.FTS.B,

29.49%,

4/05/25

..

103

104

992455533.UG.FTS.B,

29.49%,

4/05/25

..

1,375

1,376

992248889.UG.FTS.B,

23.45%,

1/03/28

..

3

3

992459352.UG.FTS.B,

28.98%,

1/03/28

..

5

5

992451626.UG.FTS.B,

29.46%,

1/03/28

..

2

2

992330550.UG.FTS.B,

29.49%,

1/03/28

..

9

4

992449697.UG.FTS.B,

29.49%,

1/03/28

..

12

2

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

$

94,185

Upstart

Network,

Inc.

L1738924.UP.FTS.B,

15.39%,

9/20/24

....

$

638

636

FW1739398.UP.FTS.B,

20.17%,

9/20/24

..

2,617

2,598

L1915199.UP.FTS.B,

6.41%,

10/25/24

....

10,911

10,798

FW1915250.UP.FTS.B,

12.04%,

10/25/24

.

32,686

32,433

L1914801.UP.FTS.B,

12.09%,

10/25/24

...

3,263

3,242

FW1915226.UP.FTS.B,

13.65%,

10/25/24

.

988

980

L1915220.UP.FTS.B,

18.87%,

10/25/24

...

3,087

3,070

FW1914760.UP.FTS.B,

27.19%,

10/25/24

.

1,406

1,393

L2056491.UP.FTS.B,

7.95%,

11/16/24

....

997

988

L2055423.UP.FTS.B,

8.44%,

11/16/24

....

3,605

3,572

L2052631.UP.FTS.B,

8.92%,

11/16/24

....

3,346

3,316

FW2056962.UP.FTS.B,

9.24%,

11/16/24

..

6,701

6,641

L2052610.UP.FTS.B,

11.6%,

11/16/24

....

2,034

2,016

L2057377.UP.FTS.B,

13.89%,

11/16/24

...

1,372

1,358

L2057046.UP.FTS.B,

15.77%,

11/16/24

...

2,074

2,060

L2052838.UP.FTS.B,

16.45%,

11/16/24

...

1,040

1,033

L2053269.UP.FTS.B,

18.64%,

11/16/24

...

1,406

1,392

L2055155.UP.FTS.B,

20.16%,

11/16/24

...

3,527

3,485

FW2054947.UP.FTS.B,

21.35%,

11/16/24

.

1,277

1,259

L2057159.UP.FTS.B,

22.2%,

11/16/24

....

8,124

331

L2057081.UP.FTS.B,

23.41%,

11/16/24

...

1,645

1,626

FW2053330.UP.FTS.B,

28.78%,

11/16/24

.

952

941

FW2056543.UP.FTS.B,

29.23%,

11/16/24

.

1,026

1,014

FW2055081.UP.FTS.B,

29.29%,

11/16/24

.

4,414

4,353

L2242235.UP.FTS.B,

6.04%,

12/13/24

....

2,403

2,378

FW2242510.UP.FTS.B,

7.1%,

12/13/24

...

6,219

6,152

L2233888.UP.FTS.B,

7.98%,

12/13/24

....

4,157

4,116

L2241803.UP.FTS.B,

9.3%,

12/13/24

....

13,940

13,790

L2242451.UP.FTS.B,

10.48%,

12/13/24

...

701

694

L2241531.UP.FTS.B,

11.26%,

12/13/24

...

4,941

4,887

L2242595.UP.FTS.B,

11.8%,

12/13/24

....

1,762

1,745

L2241741.UP.FTS.B,

14.61%,

12/13/24

...

3,070

3,033

L2242471.UP.FTS.B,

15.28%,

12/13/24

...

753

205

L2242159.UP.FTS.B,

16.13%,

12/13/24

...

1,073

1,063

L2242679.UP.FTS.B,

16.66%,

12/13/24

...

2,878

2,852

FW2242424.UP.FTS.B,

20.03%,

12/13/24

.

708

701

L2241965.UP.FTS.B,

20.43%,

12/13/24

...

1,800

130

FW2242278.UP.FTS.B,

21.84%,

12/13/24

.

736

725

L2242250.UP.FTS.B,

22.23%,

12/13/24

...

2,505

2,470

L2241739.UP.FTS.B,

23.45%,

12/13/24

...

1,111

1,095

FW2242239.UP.FTS.B,

24.53%,

12/13/24

.

744

733

FW2241887.UP.FTS.B,

28.39%,

12/13/24

.

2,281

2,244

FW2242021.UP.FTS.B,

29.12%,

12/13/24

.

1,099

1,079

FW2465310.UP.FTS.B,

5.02%,

1/19/25

...

2,052

2,032

L2465354.UP.FTS.B,

5.14%,

1/19/25

....

1,053

1,043

L2465718.UP.FTS.B,

5.3%,

1/19/25

.....

5,617

5,562

L2465958.UP.FTS.B,

5.34%,

1/19/25

....

3,199

3,167

L2464613.UP.FTS.B,

5.52%,

1/19/25

....

1,779

1,762

L2465653.UP.FTS.B,

5.58%,

1/19/25

....

22,303

5,899

L2460890.UP.FTS.B,

5.68%,

1/19/25

....

7,122

7,052

L2465895.UP.FTS.B,

5.84%,

1/19/25

....

2,494

2,470

FW2465707.UP.FTS.B,

6.24%,

1/19/25

...

1,071

1,060

L2465121.UP.FTS.B,

6.53%,

1/19/25

....

10,919

10,811

L2464359.UP.FTS.B,

6.66%,

1/19/25

....

4,291

4,250

L2465247.UP.FTS.B,

6.82%,

1/19/25

....

889

880

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-33

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2466095.UP.FTS.B,

7.07%,

1/19/25

....

$

2,149

$

2,129

FW2465710.UP.FTS.B,

7.96%,

1/19/25

...

791

784

L2465847.UP.FTS.B,

8.05%,

1/19/25

....

21,581

21,386

L2464679.UP.FTS.B,

9.11%,

1/19/25

.....

5,274

5,222

L2465662.UP.FTS.B,

11.74%,

1/19/25

....

3,725

3,694

FW2465131.UP.FTS.B,

12.69%,

1/19/25

..

8,717

8,642

L2465754.UP.FTS.B,

16.74%,

1/19/25

....

745

739

L2465570.UP.FTS.B,

17.93%,

1/19/25

....

14,970

14,847

FW2465119.UP.FTS.B,

19.64%,

1/19/25

..

3,907

3,868

L2464723.UP.FTS.B,

20.66%,

1/19/25

....

3,768

3,721

L2466210.UP.FTS.B,

20.93%,

1/19/25

....

11,808

11,714

L2465879.UP.FTS.B,

21.67%,

1/19/25

....

759

750

FW1738604.UP.FTS.B,

22.34%,

2/20/25

..

2,498

2,459

FW2676316.UP.FTS.B,

6.01%,

2/22/25

...

4,432

4,389

FW2675522.UP.FTS.B,

6.74%,

2/22/25

...

1,127

1,116

L2675489.UP.FTS.B,

9.63%,

2/22/25

....

11,251

11,149

L2675909.UP.FTS.B,

9.72%,

2/22/25

....

1,876

1,859

L2675302.UP.FTS.B,

10.61%,

2/22/25

....

6,474

6,416

L2676030.UP.FTS.B,

13.7%,

2/22/25

....

8,722

8,642

L2675455.UP.FTS.B,

14.81%,

2/22/25

....

1,911

1,893

L2675462.UP.FTS.B,

19.44%,

2/22/25

....

1,942

1,924

FW2676387.UP.FTS.B,

19.6%,

2/22/25

...

1,476

1,463

L2676045.UP.FTS.B,

19.66%,

2/22/25

....

853

845

FW2675588.UP.FTS.B,

20.36%,

2/22/25

..

5,681

5,612

L2675655.UP.FTS.B,

20.76%,

2/22/25

....

780

773

L2675586.UP.FTS.B,

20.97%,

2/22/25

....

6,870

6,781

L2675247.UP.FTS.B,

21.23%,

2/22/25

....

3,076

3,034

FW2675117.UP.FTS.B,

22.39%,

2/22/25

..

863

855

FW2675719.UP.FTS.B,

24.19%,

2/22/25

..

2,324

2,292

FW2675613.UP.FTS.B,

24.49%,

2/22/25

..

5,529

5,459

FW2674989.UP.FTS.B,

25.83%,

2/22/25

..

1,576

1,555

FW2675763.UP.FTS.B,

28.74%,

2/22/25

..

4,130

4,076

FW2676140.UP.FTS.B,

29.13%,

2/22/25

..

2,243

2,214

L2057137.UP.FTS.B,

15.78%,

4/16/25

....

3,173

2,978

L2981596.UP.FTS.B,

7.13%,

4/20/25

....

3,980

3,945

L2982581.UP.FTS.B,

11.78%,

4/20/25

....

15,535

15,402

L2982336.UP.FTS.B,

12.28%,

4/20/25

....

2,830

2,805

L2981009.UP.FTS.B,

14.77%,

4/20/25

....

2,199

2,173

FW2982315.UP.FTS.B,

15.15%,

4/20/25

..

1,142

1,132

FW2981993.UP.FTS.B,

15.69%,

4/20/25

..

977

140

L2465894.UP.FTS.B,

5.74%,

6/19/25

....

4,593

4,547

L2462700.UP.FTS.B,

20.56%,

6/19/25

....

11,702

11,544

FW2676277.UP.FTS.B,

22.93%,

7/22/25

..

3,793

3,737

FW1914469.UP.FTS.B,

17.25%,

8/25/25

..

3,342

3,305

L1914732.UP.FTS.B,

17.66%,

8/25/25

....

7,240

7,175

FW2676006.UP.FTS.B,

24.14%,

12/22/25

.

2,356

2,319

L1739715.UP.FTS.B,

9.65%,

9/20/26

....

19,826

19,669

L1739019.UP.FTS.B,

13.76%,

9/20/26

....

4,697

4,656

L1736636.UP.FTS.B,

14.78%,

9/20/26

....

11,395

11,297

L1739680.UP.FTS.B,

16.6%,

9/20/26

....

12,742

3,451

FW1739526.UP.FTS.B,

17.22%,

9/20/26

..

6,588

6,517

L1739131.UP.FTS.B,

17.22%,

9/20/26

....

12,352

12,198

L1738899.UP.FTS.B,

19.15%,

9/20/26

....

12,462

12,306

L1739140.UP.FTS.B,

21.45%,

9/20/26

....

2,531

2,520

L1739562.UP.FTS.B,

22.68%,

9/20/26

....

5,989

5,696

L1738904.UP.FTS.B,

24.36%,

9/20/26

....

5,945

5,872

L1739499.UP.FTS.B,

25.07%,

9/20/26

....

4,429

4,415

FW1739404.UP.FTS.B,

26.55%,

9/20/26

..

2,617

2,603

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW1738971.UP.FTS.B,

27.63%,

9/20/26

..

$

3,957

$

3,945

L1738918.UP.FTS.B,

27.72%,

9/20/26

....

3,455

3,295

FW1739399.UP.FTS.B,

28.19%,

9/20/26

..

5,172

5,156

FW1738592.UP.FTS.B,

28.44%,

9/20/26

..

5,125

5,105

FW1739144.UP.FTS.B,

30.91%,

9/20/26

..

3,442

3,271

FW1739500.UP.FTS.B,

30.99%,

9/20/26

..

12,693

3,769

FW1739495.UP.FTS.B,

32.86%,

9/20/26

..

4,452

4,402

L1910370.UP.FTS.B,

14.66%,

10/25/26

...

3,044

3,013

L1901600.UP.FTS.B,

16.72%,

10/25/26

...

678

671

L1915014.UP.FTS.B,

19.01%,

10/25/26

...

4,341

653

FW1915567.UP.FTS.B,

19.17%,

10/25/26

.

803

795

FW1915262.UP.FTS.B,

19.99%,

10/25/26

.

6,939

6,875

L1915447.UP.FTS.B,

20.32%,

10/25/26

...

4,881

4,819

L1915560.UP.FTS.B,

20.46%,

10/25/26

...

4,241

4,224

L1915064.UP.FTS.B,

20.48%,

10/25/26

...

4,149

1,206

L1914682.UP.FTS.B,

21.49%,

10/25/26

...

16,172

15,960

L1915468.UP.FTS.B,

23.09%,

10/25/26

...

4,548

4,530

L1912265.UP.FTS.B,

23.3%,

10/25/26

....

3,431

3,418

L1914761.UP.FTS.B,

23.31%,

10/25/26

...

858

854

FW1915175.UP.FTS.B,

23.46%,

10/25/26

.

2,535

2,528

L1897015.UP.FTS.B,

23.49%,

10/25/26

...

10,300

10,261

L1914923.UP.FTS.B,

23.8%,

10/25/26

....

1,719

1,712

L1915604.UP.FTS.B,

24.04%,

10/25/26

...

946

943

L1914714.UP.FTS.B,

24.73%,

10/25/26

...

3,449

3,436

L1898888.UP.FTS.B,

25.15%,

10/25/26

...

1,025

1,010

L1915081.UP.FTS.B,

25.35%,

10/25/26

...

2,421

2,411

FW1915043.UP.FTS.B,

27.43%,

10/25/26

.

4,655

331

FW1908593.UP.FTS.B,

28.41%,

10/25/26

.

17,687

17,593

FW1914238.UP.FTS.B,

29.34%,

10/25/26

.

5,658

5,633

FW1914247.UP.FTS.B,

29.67%,

10/25/26

.

4,323

24

FW1914310.UP.FTS.B,

30.01%,

10/25/26

.

34,284

34,102

FW1915272.UP.FTS.B,

30.7%,

10/25/26

..

1,673

1,666

FW1915225.UP.FTS.B,

30.8%,

10/25/26

..

3,170

3,163

FW1915025.UP.FTS.B,

31.16%,

10/25/26

.

3,894

3,878

FW1907740.UP.FTS.B,

31.19%,

10/25/26

.

863

860

FW1915312.UP.FTS.B,

31.22%,

10/25/26

.

3,617

3,604

L2024110.UP.FTS.B,

7.78%,

11/16/26

....

14,651

14,534

L2052804.UP.FTS.B,

9.15%,

11/16/26

....

32,640

32,379

L2043903.UP.FTS.B,

9.82%,

11/16/26

....

14,981

14,861

L2053787.UP.FTS.B,

10.61%,

11/16/26

...

4,128

4,088

FW2055257.UP.FTS.B,

11.51%,

11/16/26

.

8,290

8,209

L2052126.UP.FTS.B,

12.52%,

11/16/26

...

13,322

13,193

L2055857.UP.FTS.B,

12.9%,

11/16/26

....

10,008

9,911

L2054559.UP.FTS.B,

14.24%,

11/16/26

...

7,550

7,477

L2055412.UP.FTS.B,

14.29%,

11/16/26

...

2,570

2,414

FW2056157.UP.FTS.B,

15.18%,

11/16/26

.

7,579

7,483

FW2055789.UP.FTS.B,

15.22%,

11/16/26

.

12,643

12,517

L2052051.UP.FTS.B,

15.75%,

11/16/26

...

3,798

3,751

FW2053732.UP.FTS.B,

16.83%,

11/16/26

.

848

837

L2056184.UP.FTS.B,

17.11%,

11/16/26

...

10,292

2,650

L2056373.UP.FTS.B,

17.2%,

11/16/26

....

7,642

7,546

L2057058.UP.FTS.B,

17.23%,

11/16/26

...

6,650

952

FW2054200.UP.FTS.B,

17.46%,

11/16/26

.

12,072

3,345

L2056403.UP.FTS.B,

18.49%,

11/16/26

...

2,046

2,027

L2055275.UP.FTS.B,

19%,

11/16/26

.....

13,284

3,617

FW2055175.UP.FTS.B,

19.05%,

11/16/26

.

15,386

15,157

L2057218.UP.FTS.B,

19.51%,

11/16/26

...

19,876

19,689

L2055269.UP.FTS.B,

19.56%,

11/16/26

...

19,465

19,172

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-34

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2052101.UP.FTS.B,

20.05%,

11/16/26

...

$

21,462

$

21,143

L2051843.UP.FTS.B,

20.82%,

11/16/26

...

12,089

11,931

L2052461.UP.FTS.B,

22.33%,

11/16/26

...

45,483

1,066

FW2057201.UP.FTS.B,

22.39%,

11/16/26

.

3,516

959

L2057382.UP.FTS.B,

22.46%,

11/16/26

...

2,223

2,184

L2056569.UP.FTS.B,

22.59%,

11/16/26

...

12,135

11,399

L2047823.UP.FTS.B,

23.05%,

11/16/26

...

4,286

4,243

FW2052456.UP.FTS.B,

23.32%,

11/16/26

.

17,263

17,146

L2057372.UP.FTS.B,

23.63%,

11/16/26

...

6,184

5,858

FW2053649.UP.FTS.B,

23.67%,

11/16/26

.

19,225

18,986

L2019975.UP.FTS.B,

23.69%,

11/16/26

...

1,740

1,729

L2053900.UP.FTS.B,

23.81%,

11/16/26

...

870

865

L2053478.UP.FTS.B,

24.22%,

11/16/26

...

2,323

674

FW2055944.UP.FTS.B,

24.96%,

11/16/26

.

1,163

1,139

L2055803.UP.FTS.B,

24.96%,

11/16/26

...

1,345

390

L2055855.UP.FTS.B,

25.11%,

11/16/26

...

1,692

1,678

L2056364.UP.FTS.B,

25.24%,

11/16/26

...

1,225

1,217

L2055652.UP.FTS.B,

25.25%,

11/16/26

...

1,124

81

L2049616.UP.FTS.B,

25.29%,

11/16/26

...

1,051

1,043

L2052082.UP.FTS.B,

25.42%,

11/16/26

...

1,313

1,304

L2055669.UP.FTS.B,

25.48%,

11/16/26

...

2,222

644

L2056440.UP.FTS.B,

25.49%,

11/16/26

...

27,970

4,051

FW2056110.UP.FTS.B,

26.13%,

11/16/26

.

14,063

13,954

FW2054089.UP.FTS.B,

26.17%,

11/16/26

.

1,755

1,744

FW2056482.UP.FTS.B,

26.96%,

11/16/26

.

4,403

4,369

FW2057264.UP.FTS.B,

27.1%,

11/16/26

..

5,345

5,069

FW2053471.UP.FTS.B,

27.97%,

11/16/26

.

1,760

1,749

FW2055282.UP.FTS.B,

29.32%,

11/16/26

.

4,597

(30)

FW2046105.UP.FTS.B,

29.67%,

11/16/26

.

3,992

3,967

FW2056001.UP.FTS.B,

30.17%,

11/16/26

.

1,155

1,148

FW2057500.UP.FTS.B,

30.64%,

11/16/26

.

8,842

8,783

FW2055364.UP.FTS.B,

30.66%,

11/16/26

.

7,119

7,073

FW2055692.UP.FTS.B,

31.07%,

11/16/26

.

1,621

114

FW2054534.UP.FTS.B,

31.22%,

11/16/26

.

1,070

1,063

FW2056560.UP.FTS.B,

31.71%,

11/16/26

.

1,581

110

FW2056229.UP.FTS.B,

31.92%,

11/16/26

.

6,139

6,087

FW2057162.UP.FTS.B,

32.15%,

11/16/26

.

8,313

8,260

L2242254.UP.FTS.B,

7.13%,

12/13/26

....

8,274

8,205

L2242685.UP.FTS.B,

9%,

12/13/26

......

12,512

12,412

L2242361.UP.FTS.B,

9.11%,

12/13/26

....

20,830

20,663

L2242651.UP.FTS.B,

11.78%,

12/13/26

...

12,659

12,531

L2239830.UP.FTS.B,

11.79%,

12/13/26

...

8,817

8,726

L2241857.UP.FTS.B,

11.98%,

12/13/26

...

10,141

10,035

L2242098.UP.FTS.B,

12.31%,

12/13/26

...

5,920

5,858

L2242668.UP.FTS.B,

12.46%,

12/13/26

...

18,618

18,430

L2241756.UP.FTS.B,

12.69%,

12/13/26

...

4,736

2,498

L2241856.UP.FTS.B,

13.04%,

12/13/26

...

12,597

12,468

L2242486.UP.FTS.B,

13.76%,

12/13/26

...

3,525

256

L2241825.UP.FTS.B,

13.8%,

12/13/26

....

25,525

25,259

L2242202.UP.FTS.B,

14.09%,

12/13/26

...

14,139

13,997

L2239758.UP.FTS.B,

14.15%,

12/13/26

...

9,797

9,699

L2241610.UP.FTS.B,

15.37%,

12/13/26

...

6,420

6,333

L2239771.UP.FTS.B,

15.55%,

12/13/26

...

23,129

22,800

FW2241807.UP.FTS.B,

16.84%,

12/13/26

.

8,575

8,458

L2242447.UP.FTS.B,

16.94%,

12/13/26

...

4,736

4,655

L2242066.UP.FTS.B,

17.12%,

12/13/26

...

8,596

8,456

L2241045.UP.FTS.B,

17.22%,

12/13/26

...

7,327

7,228

L2242791.UP.FTS.B,

17.38%,

12/13/26

...

12,941

12,721

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2241989.UP.FTS.B,

17.5%,

12/13/26

....

$

2,244

$

2,212

L2241897.UP.FTS.B,

17.92%,

12/13/26

...

3,889

3,836

L2242430.UP.FTS.B,

18.29%,

12/13/26

...

15,576

15,312

L2242547.UP.FTS.B,

18.45%,

12/13/26

...

3,348

3,290

L2242119.UP.FTS.B,

18.59%,

12/13/26

...

3,896

3,844

L2242450.UP.FTS.B,

20.97%,

12/13/26

...

5,408

5,363

FW2241711.UP.FTS.B,

21.36%,

12/13/26

.

11,371

11,263

FW2242024.UP.FTS.B,

21.89%,

12/13/26

.

1,495

1,474

L2230478.UP.FTS.B,

21.97%,

12/13/26

...

6,601

6,491

L2242489.UP.FTS.B,

22.19%,

12/13/26

...

19,033

18,879

L2233875.UP.FTS.B,

22.25%,

12/13/26

...

23,686

23,495

L2241640.UP.FTS.B,

22.44%,

12/13/26

...

2,633

2,612

L2241096.UP.FTS.B,

22.49%,

12/13/26

...

4,740

4,653

L2242587.UP.FTS.B,

22.84%,

12/13/26

...

6,048

3,579

L2241949.UP.FTS.B,

22.97%,

12/13/26

...

4,297

4,258

FW2241860.UP.FTS.B,

23.21%,

12/13/26

.

5,281

5,231

L2242742.UP.FTS.B,

23.45%,

12/13/26

...

880

862

L2232043.UP.FTS.B,

23.76%,

12/13/26

...

4,849

4,804

L2242200.UP.FTS.B,

24.08%,

12/13/26

...

5,119

5,071

FW2239073.UP.FTS.B,

24.34%,

12/13/26

.

7,406

107

L2241600.UP.FTS.B,

24.51%,

12/13/26

...

3,077

3,027

L2241657.UP.FTS.B,

24.98%,

12/13/26

...

3,627

1,046

L2242478.UP.FTS.B,

25.01%,

12/13/26

...

1,948

1,932

L2242322.UP.FTS.B,

25.22%,

12/13/26

...

852

844

L2242383.UP.FTS.B,

25.22%,

12/13/26

...

7,972

7,844

FW2241952.UP.FTS.B,

25.3%,

12/13/26

..

10,632

10,547

L2241994.UP.FTS.B,

25.4%,

12/13/26

....

1,580

1,554

L2242162.UP.FTS.B,

25.7%,

12/13/26

....

1,508

1,494

L2241420.UP.FTS.B,

25.73%,

12/13/26

...

4,791

4,752

FW2242493.UP.FTS.B,

26.46%,

12/13/26

.

1,773

1,758

FW2241855.UP.FTS.B,

26.58%,

12/13/26

.

2,534

38

L2240058.UP.FTS.B,

26.7%,

12/13/26

....

7,296

7,238

FW2241764.UP.FTS.B,

27.11%,

12/13/26

.

4,187

4,154

FW2242232.UP.FTS.B,

27.33%,

12/13/26

.

3,162

3,131

FW2242379.UP.FTS.B,

28.85%,

12/13/26

.

4,448

4,410

FW2241999.UP.FTS.B,

29.1%,

12/13/26

..

2,240

2,222

FW2211495.UP.FTS.B,

29.38%,

12/13/26

.

18,792

9

FW2241683.UP.FTS.B,

29.38%,

12/13/26

.

1,126

1,106

FW2241828.UP.FTS.B,

29.64%,

12/13/26

.

9,064

8,986

FW2231506.UP.FTS.B,

30.63%,

12/13/26

.

40,582

24,231

FW2242390.UP.FTS.B,

30.76%,

12/13/26

.

10,257

1,548

FW2240660.UP.FTS.B,

30.84%,

12/13/26

.

4,144

4,106

FW2240706.UP.FTS.B,

30.86%,

12/13/26

.

11,543

11,439

FW2242045.UP.FTS.B,

30.98%,

12/13/26

.

2,207

643

FW2242580.UP.FTS.B,

31.01%,

12/13/26

.

991

983

FW2242256.UP.FTS.B,

31.07%,

12/13/26

.

991

982

FW2242085.UP.FTS.B,

31.21%,

12/13/26

.

4,889

722

FW2241988.UP.FTS.B,

31.24%,

12/13/26

.

1,986

1,968

FW2241624.UP.FTS.B,

31.84%,

12/13/26

.

4,122

4,087

L2465688.UP.FTS.B,

5.13%,

1/19/27

....

2,506

2,492

FW2465936.UP.FTS.B,

5.53%,

1/19/27

...

37,646

37,441

L2465861.UP.FTS.B,

5.83%,

1/19/27

....

21,778

21,660

L2464930.UP.FTS.B,

5.87%,

1/19/27

....

4,275

4,247

L2465582.UP.FTS.B,

5.92%,

1/19/27

....

3,151

3,133

FW2451492.UP.FTS.B,

6.07%,

1/19/27

...

41,923

41,698

FW2466147.UP.FTS.B,

6.13%,

1/19/27

...

6,354

6,319

L2465889.UP.FTS.B,

6.5%,

1/19/27

.....

5,040

5,013

L2464484.UP.FTS.B,

6.65%,

1/19/27

....

3,684

3,662

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-35

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2466269.UP.FTS.B,

6.87%,

1/19/27

...

$

4,206

$

4,184

L2465776.UP.FTS.B,

7.08%,

1/19/27

....

12,629

12,563

L2466395.UP.FTS.B,

7.13%,

1/19/27

....

9,044

8,500

L2444934.UP.FTS.B,

7.15%,

1/19/27

....

4,114

301

FW2465536.UP.FTS.B,

7.64%,

1/19/27

...

16,876

16,756

L2465750.UP.FTS.B,

7.8%,

1/19/27

.....

5,414

5,370

L2465633.UP.FTS.B,

8.28%,

1/19/27

....

1,692

1,680

L2465717.UP.FTS.B,

8.6%,

1/19/27

.....

3,388

3,364

L2464080.UP.FTS.B,

8.9%,

1/19/27

.....

5,191

4,880

FW2464781.UP.FTS.B,

9.13%,

1/19/27

...

8,064

8,007

FW2465681.UP.FTS.B,

9.16%,

1/19/27

...

8,989

8,926

L2464902.UP.FTS.B,

9.21%,

1/19/27

....

7,448

7,394

L2465458.UP.FTS.B,

9.24%,

1/19/27

....

2,996

2,971

L2465589.UP.FTS.B,

9.29%,

1/19/27

....

5,521

5,482

L2466129.UP.FTS.B,

9.84%,

1/19/27

....

17,023

16,870

L2465666.UP.FTS.B,

10.14%,

1/19/27

....

2,130

2,116

FW2464664.UP.FTS.B,

10.42%,

1/19/27

..

6,825

6,763

L2463372.UP.FTS.B,

11.09%,

1/19/27

....

4,276

4,238

L2465414.UP.FTS.B,

11.1%,

1/19/27

.....

5,131

5,086

FW2466175.UP.FTS.B,

12.09%,

1/19/27

..

5,150

5,105

L2460937.UP.FTS.B,

12.4%,

1/19/27

....

1,352

1,338

FW2465871.UP.FTS.B,

12.64%,

1/19/27

..

7,873

7,400

FW2465212.UP.FTS.B,

14.46%,

1/19/27

..

18,691

18,471

L2466145.UP.FTS.B,

14.56%,

1/19/27

....

12,992

12,880

L2465634.UP.FTS.B,

14.68%,

1/19/27

....

9,185

9,106

FW2465337.UP.FTS.B,

15.21%,

1/19/27

..

4,340

4,303

FW2462910.UP.FTS.B,

15.73%,

1/19/27

..

21,555

21,369

L2465986.UP.FTS.B,

15.77%,

1/19/27

....

1,305

1,289

L2464766.UP.FTS.B,

16.43%,

1/19/27

....

4,351

4,300

FW2466368.UP.FTS.B,

16.6%,

1/19/27

...

3,053

3,027

FW2464890.UP.FTS.B,

16.94%,

1/19/27

..

4,331

4,266

L2464884.UP.FTS.B,

17.8%,

1/19/27

....

3,065

3,030

L2465805.UP.FTS.B,

18.87%,

1/19/27

....

19,162

18,943

L2466099.UP.FTS.B,

19.62%,

1/19/27

....

7,928

7,818

L2465928.UP.FTS.B,

20.32%,

1/19/27

....

2,649

2,612

L2465048.UP.FTS.B,

20.41%,

1/19/27

....

22,078

21,772

L2466185.UP.FTS.B,

20.91%,

1/19/27

....

3,096

3,061

L2456627.UP.FTS.B,

21.31%,

1/19/27

....

8,008

7,858

L2464534.UP.FTS.B,

21.46%,

1/19/27

....

1,922

1,909

L2466007.UP.FTS.B,

21.7%,

1/19/27

....

4,078

4,022

L2465669.UP.FTS.B,

21.93%,

1/19/27

....

14,159

14,075

L2465393.UP.FTS.B,

22.66%,

1/19/27

....

17,785

17,683

L2465105.UP.FTS.B,

22.96%,

1/19/27

....

41,405

41,168

FW2466202.UP.FTS.B,

23.59%,

1/19/27

..

2,680

2,662

L2464129.UP.FTS.B,

23.98%,

1/19/27

....

14,541

14,458

L2458881.UP.FTS.B,

24.14%,

1/19/27

....

4,099

3,890

L2464954.UP.FTS.B,

24.32%,

1/19/27

....

1,788

1,777

L2465923.UP.FTS.B,

24.48%,

1/19/27

....

35,492

35,004

L2465587.UP.FTS.B,

24.59%,

1/19/27

....

11,984

11,916

L2466086.UP.FTS.B,

25.1%,

1/19/27

....

2,961

2,942

FW2465954.UP.FTS.B,

25.21%,

1/19/27

..

2,688

2,672

L2465179.UP.FTS.B,

25.25%,

1/19/27

....

1,165

1,149

L2465018.UP.FTS.B,

25.32%,

1/19/27

....

1,925

563

L2464786.UP.FTS.B,

25.33%,

1/19/27

....

1,250

1,233

L2464921.UP.FTS.B,

25.36%,

1/19/27

....

1,334

1,319

FW2465199.UP.FTS.B,

25.54%,

1/19/27

..

3,766

3,745

FW2465642.UP.FTS.B,

25.73%,

1/19/27

..

4,341

4,311

FW2465696.UP.FTS.B,

25.74%,

1/19/27

..

2,741

2,723

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2459145.UP.FTS.B,

26.05%,

1/19/27

....

$

2,047

$

2,018

FW2466211.UP.FTS.B,

26.21%,

1/19/27

..

45,924

13,458

FW2464742.UP.FTS.B,

26.31%,

1/19/27

..

1,296

1,286

FW2464891.UP.FTS.B,

27.37%,

1/19/27

..

9,149

1,381

FW2464901.UP.FTS.B,

27.8%,

1/19/27

...

5,414

5,384

FW2464391.UP.FTS.B,

27.86%,

1/19/27

..

1,354

1,346

FW2466130.UP.FTS.B,

28.33%,

1/19/27

..

2,259

2,247

FW2465882.UP.FTS.B,

28.77%,

1/19/27

..

1,357

1,339

FW2466218.UP.FTS.B,

29.09%,

1/19/27

..

27,795

26,385

FW2465555.UP.FTS.B,

30.12%,

1/19/27

..

1,271

1,265

FW2464452.UP.FTS.B,

30.15%,

1/19/27

..

1,389

1,320

FW2465759.UP.FTS.B,

30.48%,

1/19/27

..

4,997

4,970

FW2465374.UP.FTS.B,

30.53%,

1/19/27

..

2,363

2,350

FW2465848.UP.FTS.B,

30.66%,

1/19/27

..

1,818

1,808

FW2465597.UP.FTS.B,

30.68%,

1/19/27

..

2,046

2,032

FW2464665.UP.FTS.B,

30.79%,

1/19/27

..

1,273

1,266

FW2465741.UP.FTS.B,

30.94%,

1/19/27

..

1,606

477

FW2466073.UP.FTS.B,

30.97%,

1/19/27

..

910

905

FW2464672.UP.FTS.B,

30.98%,

1/19/27

..

1,638

1,629

FW2465572.UP.FTS.B,

30.98%,

1/19/27

..

3,266

3,102

FW2465907.UP.FTS.B,

30.98%,

1/19/27

..

953

3

FW2465118.UP.FTS.B,

31.07%,

1/19/27

..

8,403

1,271

FW2466031.UP.FTS.B,

31.12%,

1/19/27

..

12,879

12,783

FW2465216.UP.FTS.B,

31.14%,

1/19/27

..

1,041

1,033

FW2466113.UP.FTS.B,

31.17%,

1/19/27

..

3,620

1,071

FW2465110.UP.FTS.B,

31.18%,

1/19/27

..

10,296

715

FW2464670.UP.FTS.B,

31.19%,

1/19/27

..

2,080

2,069

FW2464667.UP.FTS.B,

31.59%,

1/19/27

..

7,251

1,100

FW2466172.UP.FTS.B,

31.96%,

1/19/27

..

30,680

29,155

FW2466141.UP.FTS.B,

32%,

1/19/27

....

5,654

5,624

FW1739462.UP.FTS.B,

27.3%,

2/20/27

...

4,554

1,320

L2675293.UP.FTS.B,

5.43%,

2/22/27

....

8,503

8,457

L2635721.UP.FTS.B,

6%,

2/22/27

.......

7,832

7,711

L2675715.UP.FTS.B,

6.52%,

2/22/27

....

8,548

8,503

FW2676020.UP.FTS.B,

6.82%,

2/22/27

...

6,504

6,470

FW2676337.UP.FTS.B,

8.57%,

2/22/27

...

10,335

10,262

L2675123.UP.FTS.B,

8.62%,

2/22/27

....

5,599

5,570

FW2675837.UP.FTS.B,

9.42%,

2/22/27

...

6,039

5,996

FW2675651.UP.FTS.B,

9.54%,

2/22/27

...

5,876

5,835

FW2675906.UP.FTS.B,

9.67%,

2/22/27

...

43,227

42,925

FW2675315.UP.FTS.B,

9.86%,

2/22/27

...

25,286

25,050

FW2676315.UP.FTS.B,

10.29%,

2/22/27

..

4,765

4,723

FW2675769.UP.FTS.B,

11.04%,

2/22/27

..

29,534

29,270

FW2675566.UP.FTS.B,

11.18%,

2/22/27

..

13,036

12,919

FW2675417.UP.FTS.B,

12.04%,

2/22/27

..

7,414

7,346

L2675868.UP.FTS.B,

12.42%,

2/22/27

....

12,972

12,853

FW2675303.UP.FTS.B,

12.76%,

2/22/27

..

13,130

13,012

L2675722.UP.FTS.B,

13.92%,

2/22/27

....

2,631

2,608

L2676179.UP.FTS.B,

13.92%,

2/22/27

....

13,154

13,038

L2675483.UP.FTS.B,

14.22%,

2/22/27

....

4,038

4,002

FW2676429.UP.FTS.B,

14.76%,

2/22/27

..

18,377

18,215

L2676222.UP.FTS.B,

14.9%,

2/22/27

....

1,538

397

L2675701.UP.FTS.B,

15.05%,

2/22/27

....

6,125

6,070

FW2676278.UP.FTS.B,

15.49%,

2/22/27

..

4,759

4,703

FW2675787.UP.FTS.B,

15.6%,

2/22/27

...

8,498

8,396

FW2676119.UP.FTS.B,

15.87%,

2/22/27

..

3,971

3,924

FW2674729.UP.FTS.B,

15.98%,

2/22/27

..

4,237

4,199

FW2675367.UP.FTS.B,

16.08%,

2/22/27

..

8,829

8,725

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-36

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2675671.UP.FTS.B,

16.46%,

2/22/27

..

$

21,111

$

20,862

L2675286.UP.FTS.B,

16.53%,

2/22/27

....

13,937

13,771

FW2676101.UP.FTS.B,

16.63%,

2/22/27

..

9,639

9,525

FW2676275.UP.FTS.B,

16.64%,

2/22/27

..

19,104

18,878

FW2673151.UP.FTS.B,

16.69%,

2/22/27

..

4,423

4,371

FW2675878.UP.FTS.B,

16.87%,

2/22/27

..

3,934

3,898

L2675388.UP.FTS.B,

17.29%,

2/22/27

....

43,239

40,665

L2676056.UP.FTS.B,

17.4%,

2/22/27

....

3,546

3,504

L2675381.UP.FTS.B,

18.91%,

2/22/27

....

13,311

13,153

L2675889.UP.FTS.B,

18.95%,

2/22/27

....

45,322

42,625

FW2675506.UP.FTS.B,

19.13%,

2/22/27

..

9,699

9,562

FW2675598.UP.FTS.B,

19.23%,

2/22/27

..

5,347

5,272

L2676048.UP.FTS.B,

19.28%,

2/22/27

....

32,089

31,636

FW2675562.UP.FTS.B,

19.58%,

2/22/27

..

4,881

4,589

FW2676135.UP.FTS.B,

19.68%,

2/22/27

..

38,741

38,285

FW2675827.UP.FTS.B,

19.75%,

2/22/27

..

3,838

3,793

FW2675725.UP.FTS.B,

19.97%,

2/22/27

..

5,370

5,305

L2675775.UP.FTS.B,

20.06%,

2/22/27

....

8,934

8,808

FW2676391.UP.FTS.B,

20.15%,

2/22/27

..

4,909

4,616

L2675553.UP.FTS.B,

20.26%,

2/22/27

....

920

260

L2676153.UP.FTS.B,

20.37%,

2/22/27

....

4,563

4,292

FW2675953.UP.FTS.B,

20.7%,

2/22/27

...

18,689

18,527

FW2675768.UP.FTS.B,

20.93%,

2/22/27

..

17,277

17,002

FW2674747.UP.FTS.B,

21.11%,

2/22/27

..

6,271

6,182

FW2676447.UP.FTS.B,

21.12%,

2/22/27

..

7,168

7,084

L2675752.UP.FTS.B,

21.22%,

2/22/27

....

2,867

2,824

L2676182.UP.FTS.B,

21.37%,

2/22/27

....

4,396

4,316

FW2675431.UP.FTS.B,

21.46%,

2/22/27

..

2,861

2,820

L2675263.UP.FTS.B,

21.9%,

2/22/27

....

14,277

14,185

L2675531.UP.FTS.B,

21.9%,

2/22/27

....

14,546

13,679

L2675653.UP.FTS.B,

22.41%,

2/22/27

....

4,018

3,987

L2675496.UP.FTS.B,

22.58%,

2/22/27

....

5,398

5,363

FW2674944.UP.FTS.B,

22.84%,

2/22/27

..

8,104

8,052

FW2676120.UP.FTS.B,

22.93%,

2/22/27

..

6,580

6,497

FW2675190.UP.FTS.B,

23.05%,

2/22/27

..

5,404

5,370

FW2675530.UP.FTS.B,

23.25%,

2/22/27

..

2,704

2,686

L2675554.UP.FTS.B,

23.55%,

2/22/27

....

9,019

8,961

L2676113.UP.FTS.B,

24.05%,

2/22/27

....

18,062

17,946

FW2675485.UP.FTS.B,

24.08%,

2/22/27

..

3,974

3,948

FW2675214.UP.FTS.B,

24.18%,

2/22/27

..

3,975

3,950

L2674902.UP.FTS.B,

24.23%,

2/22/27

....

1,860

531

FW2676351.UP.FTS.B,

24.32%,

2/22/27

..

4,970

4,938

FW2675997.UP.FTS.B,

24.49%,

2/22/27

..

2,984

2,965

FW2675911.UP.FTS.B,

24.61%,

2/22/27

..

2,713

2,696

L2674079.UP.FTS.B,

24.8%,

2/22/27

....

3,776

3,734

L2675434.UP.FTS.B,

25.07%,

2/22/27

....

2,173

2,159

FW2676151.UP.FTS.B,

25.12%,

2/22/27

..

1,036

16

L2676160.UP.FTS.B,

25.17%,

2/22/27

....

10,811

10,261

FW2676004.UP.FTS.B,

25.24%,

2/22/27

..

8,807

624

FW2675924.UP.FTS.B,

25.27%,

2/22/27

..

1,890

1,873

FW2676248.UP.FTS.B,

25.38%,

2/22/27

..

2,990

2,971

L2676213.UP.FTS.B,

25.44%,

2/22/27

....

2,433

2,417

L2675249.UP.FTS.B,

25.47%,

2/22/27

....

2,120

150

FW2676003.UP.FTS.B,

25.6%,

2/22/27

...

1,995

1,982

FW2675099.UP.FTS.B,

26.05%,

2/22/27

..

3,437

3,414

FW2675282.UP.FTS.B,

26.25%,

2/22/27

..

45,387

45,093

FW2676394.UP.FTS.B,

26.4%,

2/22/27

...

5,319

5,277

FW2675377.UP.FTS.B,

26.49%,

2/22/27

..

1,636

1,625

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2676130.UP.FTS.B,

26.88%,

2/22/27

..

$

5,366

$

5,332

FW2675610.UP.FTS.B,

26.91%,

2/22/27

..

6,038

1,782

L2676015.UP.FTS.B,

26.95%,

2/22/27

....

900

887

FW2675720.UP.FTS.B,

27.06%,

2/22/27

..

3,003

2,984

FW2675330.UP.FTS.B,

27.13%,

2/22/27

..

3,003

2,984

FW2676331.UP.FTS.B,

27.38%,

2/22/27

..

7,033

6,982

L2675639.UP.FTS.B,

27.5%,

2/22/27

....

1,322

1,308

FW2675561.UP.FTS.B,

27.52%,

2/22/27

..

6,559

6,516

FW2675681.UP.FTS.B,

27.55%,

2/22/27

..

8,909

8,840

FW2675991.UP.FTS.B,

27.58%,

2/22/27

..

2,278

2,263

FW2676194.UP.FTS.B,

28.21%,

2/22/27

..

2,352

361

FW2676090.UP.FTS.B,

28.38%,

2/22/27

..

18,256

18,138

FW2675967.UP.FTS.B,

29.34%,

2/22/27

..

1,555

1,533

FW2676071.UP.FTS.B,

30.36%,

2/22/27

..

2,018

2,004

FW2675198.UP.FTS.B,

30.64%,

2/22/27

..

6,394

6,350

FW2676076.UP.FTS.B,

30.66%,

2/22/27

..

1,468

1,459

FW2675098.UP.FTS.B,

30.74%,

2/22/27

..

2,488

173

FW2675958.UP.FTS.B,

30.93%,

2/22/27

..

1,285

1,267

FW2676378.UP.FTS.B,

30.97%,

2/22/27

..

1,103

1,096

FW2674790.UP.FTS.B,

31.08%,

2/22/27

..

1,017

1,009

FW2675297.UP.FTS.B,

31.1%,

2/22/27

...

969

67

FW2676100.UP.FTS.B,

31.11%,

2/22/27

..

1,642

1,618

FW2675440.UP.FTS.B,

31.15%,

2/22/27

..

3,248

3,083

FW2670166.UP.FTS.B,

31.29%,

2/22/27

..

2,292

2,277

FW2675516.UP.FTS.B,

31.31%,

2/22/27

..

3,064

2,909

FW2676168.UP.FTS.B,

31.41%,

2/22/27

..

3,217

3,196

FW2675064.UP.FTS.B,

31.47%,

2/22/27

..

2,758

2,740

FW2676065.UP.FTS.B,

31.64%,

2/22/27

..

8,833

8,776

FW2675468.UP.FTS.B,

31.91%,

2/22/27

..

7,085

7,039

FW2675325.UP.FTS.B,

31.93%,

2/22/27

..

8,082

559

FW2676191.UP.FTS.B,

31.98%,

2/22/27

..

6,817

6,766

FW2675534.UP.FTS.B,

32.24%,

2/22/27

..

8,195

8,142

FW1914675.UP.FTS.B,

26.25%,

3/25/27

..

9,609

678

FW2056098.UP.FTS.B,

23.67%,

4/16/27

..

6,585

6,531

FW2056081.UP.FTS.B,

30.81%,

4/16/27

..

1,562

1,551

L2980992.UP.FTS.B,

5.74%,

4/20/27

....

7,062

7,033

L2982343.UP.FTS.B,

6.55%,

4/20/27

....

13,242

13,187

L2981618.UP.FTS.B,

6.67%,

4/20/27

....

11,507

11,462

L2982277.UP.FTS.B,

7.61%,

4/20/27

....

7,989

7,958

L2981547.UP.FTS.B,

8.03%,

4/20/27

....

10,665

10,601

L2982631.UP.FTS.B,

11.15%,

4/20/27

....

5,728

5,681

L2981847.UP.FTS.B,

12.88%,

4/20/27

....

8,739

8,671

FW2982593.UP.FTS.B,

14.46%,

4/20/27

..

7,237

7,182

FW2981800.UP.FTS.B,

15.54%,

4/20/27

..

18,224

17,165

FW2982570.UP.FTS.B,

15.54%,

4/20/27

..

8,799

8,702

FW2980031.UP.FTS.B,

17.09%,

4/20/27

..

39,216

36,931

L2981666.UP.FTS.B,

17.74%,

4/20/27

....

45,613

45,118

L2982362.UP.FTS.B,

19.25%,

4/20/27

....

1,952

1,930

L2981534.UP.FTS.B,

19.74%,

4/20/27

....

10,595

10,485

FW2982412.UP.FTS.B,

19.87%,

4/20/27

..

11,001

10,856

FW2980149.UP.FTS.B,

20.02%,

4/20/27

..

5,142

4,846

FW2982427.UP.FTS.B,

20.52%,

4/20/27

..

22,306

22,143

L2982556.UP.FTS.B,

21.77%,

4/20/27

....

4,972

4,936

L2982345.UP.FTS.B,

23.66%,

4/20/27

....

12,528

268

FW2981941.UP.FTS.B,

25.22%,

4/20/27

..

2,298

2,268

FW2980976.UP.FTS.B,

25.24%,

4/20/27

..

13,577

13,491

L2982002.UP.FTS.B,

25.37%,

4/20/27

....

6,188

6,148

L2982533.UP.FTS.B,

25.49%,

4/20/27

....

1,990

1,890

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-37

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2981812.UP.FTS.B,

25.87%,

4/20/27

..

$

2,972

$

2,952

L2981818.UP.FTS.B,

25.89%,

4/20/27

....

9,010

8,921

L2981438.UP.FTS.B,

25.94%,

4/20/27

....

2,787

2,768

FW2981809.UP.FTS.B,

26.39%,

4/20/27

..

4,153

4,126

FW2981690.UP.FTS.B,

26.56%,

4/20/27

..

14,286

13,565

L2982272.UP.FTS.B,

26.68%,

4/20/27

....

5,202

5,171

FW2982505.UP.FTS.B,

26.8%,

4/20/27

...

4,793

4,754

FW2982630.UP.FTS.B,

27.01%,

4/20/27

..

3,072

3,052

FW2973701.UP.FTS.B,

27.5%,

4/20/27

...

12,828

12,188

FW2982117.UP.FTS.B,

27.79%,

4/20/27

..

2,066

2,053

FW2982476.UP.FTS.B,

28.13%,

4/20/27

..

27,990

27,808

FW2982596.UP.FTS.B,

28.27%,

4/20/27

..

1,400

1,391

FW2981790.UP.FTS.B,

29.08%,

4/20/27

..

2,352

2,338

FW2982246.UP.FTS.B,

30.31%,

4/20/27

..

2,580

182

FW2982248.UP.FTS.B,

30.44%,

4/20/27

..

4,661

4,633

FW2980005.UP.FTS.B,

30.65%,

4/20/27

..

1,396

1,388

FW2982470.UP.FTS.B,

30.66%,

4/20/27

..

2,156

2,143

FW2981984.UP.FTS.B,

30.99%,

4/20/27

..

8,605

598

FW2982099.UP.FTS.B,

31.11%,

4/20/27

..

3,266

3,247

FW2981979.UP.FTS.B,

31.12%,

4/20/27

..

1,937

1,923

FW2982709.UP.FTS.B,

31.22%,

4/20/27

..

2,779

193

FW2981459.UP.FTS.B,

31.69%,

4/20/27

..

8,831

8,777

FW2981291.UP.FTS.B,

31.84%,

4/20/27

..

5,439

842

L2242212.UP.FTS.B,

19.99%,

5/13/27

....

3,128

3,093

L2241910.UP.FTS.B,

20.19%,

5/13/27

....

19,227

18,916

L2241971.UP.FTS.B,

20.32%,

5/13/27

....

2,684

2,645

L2241647.UP.FTS.B,

25.19%,

5/13/27

....

1,559

448

L2242784.UP.FTS.B,

25.23%,

5/13/27

....

5,430

797

L2242418.UP.FTS.B,

25.33%,

5/13/27

....

9,176

9,101

FW2242705.UP.FTS.B,

27.05%,

5/13/27

..

1,429

1,416

FW2241542.UP.FTS.B,

28.48%,

5/13/27

..

2,877

1,707

FW2242624.UP.FTS.B,

29.36%,

5/13/27

..

8,511

8,419

FW2242691.UP.FTS.B,

30.2%,

5/13/27

...

23,410

23,199

FW2242189.UP.FTS.B,

31.76%,

5/13/27

..

4,713

4,668

L2464545.UP.FTS.B,

18.49%,

6/19/27

....

19,566

19,322

L2465191.UP.FTS.B,

22.76%,

6/19/27

....

3,688

3,658

L2465421.UP.FTS.B,

25.22%,

6/19/27

....

8,564

8,514

L2464262.UP.FTS.B,

25.31%,

6/19/27

....

2,141

623

FW2465743.UP.FTS.B,

28.47%,

6/19/27

..

9,450

9,391

FW2466138.UP.FTS.B,

29.57%,

6/19/27

..

2,903

2,810

FW2464615.UP.FTS.B,

30.21%,

6/19/27

..

7,812

1,167

FW2465921.UP.FTS.B,

30.89%,

6/19/27

..

1,227

1,220

FW2675527.UP.FTS.B,

21.31%,

7/22/27

..

9,697

2,659

FW2675348.UP.FTS.B,

23.48%,

7/22/27

..

14,960

14,198

FW2676274.UP.FTS.B,

25.4%,

7/22/27

...

24,568

3,719

L2676206.UP.FTS.B,

25.75%,

7/22/27

....

4,209

4,158

FW2675109.UP.FTS.B,

27.79%,

7/22/27

..

5,749

5,706

FW2675392.UP.FTS.B,

28.93%,

7/22/27

..

1,930

1,916

FW2674184.UP.FTS.B,

30.72%,

7/22/27

..

5,900

(369)

FW2675344.UP.FTS.B,

30.75%,

7/22/27

..

3,169

3,147

FW2676178.UP.FTS.B,

31.16%,

7/22/27

..

4,901

4,835

FW2676390.UP.FTS.B,

31.24%,

7/22/27

..

1,966

1,865

FW2675191.UP.FTS.B,

31.52%,

7/22/27

..

4,589

679

L2056878.UP.FTS.B,

9.83%,

9/16/27

....

4,578

609

L2234521.UP.FTS.B,

21.55%,

10/13/27

...

8,205

4,851

L2466291.UP.FTS.B,

11.97%,

11/19/27

...

44,718

42,034

L2676110.UP.FTS.B,

9.95%,

12/22/27

....

17,914

16,838

FW2675427.UP.FTS.B,

17.47%,

12/22/27

.

21,215

6,255

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2675884.UP.FTS.B,

26.71%,

12/22/27

.

$

5,177

$

4,974

3,782,263

Total

Marketplace

Loans

(Cost

$7,671,27

9

)

.....

$6,941,352

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments,

December

31,

2022

Franklin

Strategic

Income

VIP

Fund

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-38

At

December

31,

2022,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1

(

d

). 

At

December

31,

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)

Interest

rate

contracts

30-day

Federal

Funds

.........................

Short

154

$

61,191,020

12/29/23

$

105,831

U.S.

Treasury

10

Year

Notes

....................

Long

21

2,358,234

3/22/23

(15,451)

U.S.

Treasury

10

Year

Ultra

Notes

................

Long

19

2,247,344

3/22/23

(19,620)

U.S.

Treasury

5

Year

Notes

.....................

Long

22

2,374,453

3/31/23

(9,974)

U.S.

Treasury

Ultra

Bonds

......................

Long

13

1,746,062

3/22/23

(40,238)

Total

Futures

Contracts

......................................................................

$20,548

*

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

240,000

253,066

1/17/23

$

4,084

$

—

Euro

.............

JPHQ

Sell

2,650,000

2,594,165

1/17/23

—

(245,197)

Columbian

Peso

....

JPHQ

Sell

5,200,000,000

1,033,027

2/28/23

—

(28,002)

Total

Forward

Exchange

Contracts

...................................................

$4,084

$(273,199)

Net

unrealized

appreciation

(depreciation)

............................................

$(269,115)

*

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

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-39

At

December

31,

2022,

the

Fund

had

the

following credit

default

swap

contracts outstanding.

See

Note

1(d). 

Credit

Default

Swap

Contracts

Description

Periodic

Payment

Rate

Received

(Paid)

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

(a)

Value

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

$

56,177

$

96,538

$

(40,361)

CDX.NA.HY.39

.

(5.00)%

Quarterly

12/20/27

800,000

(5,882)

16,487

(22,369)

Total

Centrally

Cleared

Swap

Contracts

.....................................

$50,295

$113,025

$(62,730)

OTC

Swap

Contracts

Contracts

to

Sell

Protection

(c)(d)

Single

Name

Carnival

Corp.

..

1.00%

Quarterly

CITI

6/20/27

1,800,000

(694,209)

(291,433)

(402,776)

B-

Mexico

Government

Bond

......

1.00%

Quarterly

GSCO

6/20/26

925,000

1,434

1,865

(431)

BBB

Traded

Index

(e)

BNP

Paribas

Bespoke

Haverhill

Index,

Mezzanine

Tranche

5-10%

4.10%

Quarterly

BNDP

12/20/23

350,000

EUR

(5,421)

—

(5,421)

Non-

Investment

Grade

(e)

Citibank

Bespoke

Kenai

Index,

Equity

Tranche

0-5%

—%

Quarterly

CITI

12/20/23

2,300,000

(796,155)

(341,487)

(454,668)

Non-

Investment

Grade

(e)

Citibank

Bespoke

Rotorua

Index,

Mezzanine

Tranche

5-10%

3.60%

Quarterly

CITI

12/20/23

500,000

(5,977)

—

(5,977)

Non-

Investment

Grade

MCDX.

NA.MAIN.31

.

1.00%

Quarterly

CITI

12/20/23

2,270,000

11,237

4,444

6,793

Investment

Grade

Total

OTC

Swap

Contracts

..............................................

$(1,489,091)

$(626,611)

$(862,480)

Total

Credit

Default

Swap

Contracts

....................................

$(1,438,796)

$

(513,586)

$(925,210)

(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

Schedule

of

Investments

Franklin

Strategic

Income

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-40

At

December

31,

2022,

the

Fund

had

the

following total

return swap

contracts

outstanding.

See

Note

1(d). 

See

Note

11 regarding

other

derivative

information.

See

Abbreviations

on

page

FSI-

62

.

Total

Return

Swap

Contracts

Underlying

Instruments

Financing

Rate

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Value

*

Value/

Unrealized

Appreciation

(Depreciation)

OTC

Swap

Contracts

Short

Markit

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

...........................

1-day

SOFR

Quarterly

BZWS

3/20/23

1,240,000

$

(28,150)

Markit

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

...........................

1-day

SOFR

Quarterly

MSCO

3/20/23

800,000

(15,819)

Markit

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

...........................

1-day

SOFR

Quarterly

BNDP

3/20/23

165,000

(4,672)

Markit

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

...........................

1-day

SOFR

Quarterly

BNDP

3/20/23

495,000

(12,695)

Markit

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

...........................

1-day

SOFR

Quarterly

MSCO

6/20/23

1,500,000

(13,247)

Markit

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

...........................

1-day

SOFR

Quarterly

MSCO

6/20/23

1,500,000

(3,844)

Total

Return

Swap

Contracts

....................................................................

$(78,427)

*

In

U.S.

dollars

unless

otherwise

indicated.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

December

31,

2022

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-41

Franklin

Strategic

Income

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$291,548,795

Cost

-

Non-controlled

affiliates

(Not

e

3e)

........................................................

39,344,627

Value

-

Unaffiliated

issuers

..................................................................

$260,514,222

Value

-

Non-controlled

affiliates

(Not

e

3e)

.......................................................

36,753,721

Cash

....................................................................................

473,807

Receivables:

Investment

securities

sold

...................................................................

32

Capital

shares

sold

........................................................................

205,268

Dividends

and

interest

.....................................................................

3,052,854

Deposits

with

brokers

for:

OTC

derivative

contracts

..................................................................

1,710,000

Futures

contracts

........................................................................

277,685

Centrally

cleared

swap

contracts

............................................................

103,203

Variation

margin

on

futures

contracts

...........................................................

13,138

Variation

margin

on

centrally

cleared

swap

contracts

...............................................

518

OTC

swap

contracts

(upfront

payments

$6,318)

....................................................

6,309

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

4,084

Unrealized

appreciation

on

OTC

swap

contracts

....................................................

6,793

Deferred

tax

benefit

.........................................................................

135,841

Total

assets

..........................................................................

303,257,475

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

77,516

Capital

shares

redeemed

...................................................................

142,129

Management

fees

.........................................................................

142,490

Distribution

fees

..........................................................................

27,120

Trustees'

fees

and

expenses

.................................................................

1,109

OTC

swap

contracts

(upfront

receipts

$1,216,740)

..................................................

632,920

Unrealized

depreciation

on

OTC

swap

contracts

....................................................

947,700

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

273,199

Accrued

expenses

and

other

liabilities

...........................................................

210,718

Total

liabilities

.........................................................................

2,454,901

Net

assets,

at

value

.................................................................

$300,802,574

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$398,170,074

Total

distributable

earnings

(losses)

.............................................................

(97,367,500)

Net

assets,

at

value

.................................................................

$300,802,574

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

December

31,

2022

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-42

Franklin

Strategic

Income

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$189,767,431

Shares

outstanding

........................................................................

20,881,734

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$9.09

Class

2:

Net

assets,

at

value

.......................................................................

$73,616,643

Shares

outstanding

........................................................................

8,428,199

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$8.73

Class

4:

Net

assets,

at

value

.......................................................................

$37,418,500

Shares

outstanding

........................................................................

4,152,780

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$9.01

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2022

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

FSI-43

Franklin

Strategic

Income

VIP

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

........................................................................

$371,096

Non-controlled

affiliates

(Not

e

3e)

.............................................................

1,686,937

Interest:

(net

of

foreign

taxes

of

$395)

Unaffiliated

issuers

........................................................................

13,109,355

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

3,947

Non-controlled

affiliates

(Note

3

e

)

.............................................................

706

Total

investment

income

...................................................................

15,172,041

Expenses:

Management

fees

(Note

3

a

)

...................................................................

2,089,225

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

198,839

    Class

4

................................................................................

150,087

Custodian

fees

(Note

4

)

......................................................................

4,934

Professional

fees

...........................................................................

137,443

Trustees'

fees

and

expenses

..................................................................

4,806

Marketplace

lending

fees

(Note

1

f

)

..............................................................

334,797

Other

....................................................................................

11,503

Total

expenses

.........................................................................

2,931,634

Expense

reductions

(Note

4

)

...............................................................

(558)

Expenses

waived/paid

by

affiliates

(Not

e

3e)

...................................................

(231,954)

Net

expenses

.........................................................................

2,699,122

Net

investment

income

................................................................

12,472,919

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

(net

of

foreign

taxes

of

$12,618)

Unaffiliated

issuers

......................................................................

(23,930,694)

Non-controlled

affiliates

(Not

e

3e)

...........................................................

(3,099,210)

Written

options

...........................................................................

(9,317)

Foreign

currency

transactions

................................................................

(15,624)

Forward

exchange

contracts

.................................................................

937,244

Futures

contracts

.........................................................................

475,030

TBA

sale

commitments

.....................................................................

5,533

Swap

contracts

...........................................................................

722,776

Net

realized

gain

(loss)

..................................................................

(24,914,262)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(28,220,686)

Non-controlled

affiliates

(Not

e

3e)

...........................................................

1,298,892

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

2,332

Written

options

...........................................................................

(36,230)

Forward

exchange

contracts

.................................................................

(361,789)

Futures

contracts

.........................................................................

340,829

Swap

contracts

...........................................................................

(918,921)

Change

in

deferred

tax

benefit

...............................................................

(173,725)

Change

in

deferred

taxes

on

unrealized

appreciation

...............................................

13,698

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(28,055,600)

Net

realized

and

unrealized

gain

(loss)

............................................................

(52,969,862)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(40,496,943)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FSI-44

Franklin

Strategic

Income

VIP

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021*

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$12,472,919

$12,098,516

Net

realized

gain

(loss)

.................................................

(24,914,262)

4,894,990

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(28,055,600)

(8,012,045)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(40,496,943)

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

.............................................................

(23,710,406)

(10,251,021)

Class

2

.............................................................

(3,084,449)

(9,912,221)

Class

4

.............................................................

(5,799,698)

(718,968)

Total

capital

share

transactions

............................................

(32,594,553)

(20,882,210)

Net

increase

(decrease)

in

net

assets

...................................

(87,663,695)

(25,410,199)

Net

assets:

Beginning

of

year

.......................................................

388,466,269

413,876,468

End

of

year

...........................................................

$300,802,574

$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-45

Annual

Report

Notes

to

Financial

Statements

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.

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

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

December

31,

2022,

76.2%

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

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

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.

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSI-46

Annual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

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,

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

December

31,

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

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSI-47

Annual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

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

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

December

31,

2022,

the

Fund

had

no

securities

on

loan.

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

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Securities

Lending

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSI-48

Annual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

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

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

OTC

total

return

swap

contracts

primarily

to

manage

and/or

gain

exposure

to

credit

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.

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

year

end.

See

Note

11 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

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Derivative

Financial

Instruments

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSI-49

Annual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

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.

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.

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. 

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

December

31,

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.

Facility

1.

Organization

and

Significant

Accounting

Policies

(continued)

e.

Mortgage

Dollar

Rolls

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSI-50

Annual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

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.

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.

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

year.

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

December

31,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

328,774

$3,176,447

1,119,217

$11,967,151

Shares

issued

in

reinvestment

of

distributions

..........

1,032,811

9,367,599

830,678

8,780,267

Shares

redeemed

...............................

(3,831,980)

(36,254,452)

(2,899,771)

(30,998,439)

Net

increase

(decrease)

..........................

(2,470,395)

$(23,710,406)

(949,876)

$(10,251,021)

1.

Organization

and

Significant

Accounting

Policies

(continued)

h.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSI-51

Annual

Report

Franklin

Strategic

Income

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

year

ended

December

31,

2022,

the

gross

effective

investment

management

fee

rate

was

0.625%

of

the

Fund’s

average

daily

net

assets. 

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

2

Shares:

Shares

sold

...................................

1,055,479

$9,796,960

1,656,006

$17,067,289

Shares

issued

in

reinvestment

of

distributions

..........

394,083

3,440,344

299,698

3,050,922

Shares

redeemed

...............................

(1,789,143)

(16,321,753)

(2,909,726)

(30,030,432)

Net

increase

(decrease)

..........................

(339,581)

$(3,084,449)

(954,022)

$(9,912,221)

Class

4

Shares:

Shares

sold

...................................

109,665

$1,130,422

516,341

$5,494,257

Shares

issued

in

reinvestment

of

distributions

..........

195,811

1,764,256

159,987

1,678,261

Shares

redeemed

...............................

(933,003)

(8,694,376)

(744,790)

(7,891,486)

Net

increase

(decrease)

..........................

(627,527)

$(5,799,698)

(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

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

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSI-52

Annual

Report

Franklin

Strategic

Income

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

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

year

ended

December

31,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

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

$

(12,537,750)

$

(3,099,210)

$

1,298,892

$

18,501,151

2,418,451

$

1,515,004

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

9,106,742

127,844,218

(118,698,390)

—

—

18,252,570

18,252,570

171,933

Total

Non-Controlled

Affiliates

$36,845,961

$132,944,218

$(131,236,140)

$

(3,099,210)

$

1,298,892

$36,753,721

$

1,686,937

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

$—

$13,473,000

$(13,473,000)

$—

$—

$—

—

$706

Total

Affiliated

Securities

...

$36,845,961

$146,417,218

$(144,709,140)

$(3,099,210)

$1,298,892

$36,753,721

$1,687,643

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSI-53

Annual

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

year

ended

December

31,

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,

2022,

the

capital

loss

carryforwards

were

as

follows:

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021,

was

as

follows:

At

December

31,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation)

and

undistributed

ordinary

income

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,

paydown

losses,

payments-in-kind,

bond

discounts

and

premiums,

swaps

and

transfer

in-kind.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2022,

aggregated

$200,438,610

and

$238,399,865,

respectively.

7.

Credit Risk

and

Defaulted

Securities

At

December

31,

2022,

the

Fund

had

24.8%

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.

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$6,269,256

Long

term

................................................................................

68,932,271

Total

capital

loss

carryforwards

...............................................................

$75,201,527

2022

2021

Distributions

paid

from:

Ordinary

income

..........................................................

$14,572,199

$13,509,450

Cost

of

investments

..........................................................................

$330,132,836

Unrealized

appreciation

........................................................................

$4,668,209

Unrealized

depreciation

........................................................................

(39,298,892)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(34,630,683)

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$12,596,325

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSI-54

Annual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

The

Fund

held

a

defaulted

security

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

At

December

31,

2022,

the

value

of

this

security

was

$1,351,499,

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.

At

December

31,

2022,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

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

—

Total

Restricted

Securities

(Value

is

—%

of

Net

Assets)

..............

$115,861

$—

a

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$—

as

of

December

31,

2022.

7.

Credit Risk

and

Defaulted

Securities

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSI-55

Annual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

11.

Other

Derivative

Information

At

December

31,

2022,

investments

in

derivative

contracts

are

reflected

in

the

Statement of

Assets

and

Liabilities

as

follows:

For

the

year

ended

December

31,

2022,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

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

Strategic

Income

VIP

Fund

Interest

rate

contracts

.......

Variation

margin

on

futures

contracts

$

105,831

a

Variation

margin

on

futures

contracts

$

85,283

a

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

4,084

Unrealized

depreciation

on

OTC

forward

exchange

contracts

273,199

Credit

contracts

............

Variation

margin

on

centrally

cleared

swap

contracts

—

Variation

margin

on

centrally

cleared

swap

contracts

62,730

b

OTC

swap

contracts

(upfront

payments)

6,309

OTC

swap

contracts

(upfront

receipts)

632,920

Unrealized

appreciation

on

OTC

swap

contracts

6,793

Unrealized

depreciation

on

OTC

swap

contracts

947,700

Total

....................

$123,017

$2,001,832

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

year

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

year

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

Year

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Year

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

475,030

Futures

contracts

340,829

Foreign

exchange

contracts

.....

Investments

(2,065)

a

Investments

6,859

a

Forward

exchange

contracts

937,244

Forward

exchange

contracts

(361,789)

Credit

contracts

...............

Swap

contracts

722,776

Swap

contracts

(918,921)

Value

recovery

instruments

Investments

(152,700)

b

Investments

(507,558)

b

Total

.......................

$1,912,585

$(1,465,191)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSI-56

Annual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

For

the year

ended

December

31,

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:

At

December

31,

2022,

the

Fund's

OTC

derivative

assets

and

liabilities

are

as

follows:

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

.........................

$28,068,353

Swap

Contracts

..........................

19,173,784

Forward

exchange

contracts

.................

8,030,258

Options

.................................

1,289,075

VRI

....................................

144,091

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

.............................

$

4,08

4

$

273,199

Swap

contracts

.......................................

13,102

1,580,620

Total

.............................................

$17,186

$1,853,819

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.

11.

Other

Derivative

Information

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSI-57

Annual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

At

December

31,

2022,

OTC

derivative

assets,

which

may

be

offset

against

OTC

derivative

liabilities

and

collateral

received

from

the

counterparty,

are

as

follows:

At

December

31,

2022,

OTC

derivative

liabilities,

which

may

be

offset

against

OTC

derivative

assets

and

collateral

pledged

to

the

counterparty,

are

as

follows:

See

Note

1(d)

 regarding

derivative

financial

instruments. 

See

Abbreviations

on

page

FSI-

62

.

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

...................

$—

$—

$—

$—

$—

BZWS

...................

—

—

—

—

—

CITI

.....................

11,237

(11,237)

—

—

—

GSCO

...................

1,865

(431)

—

—

1,434

JPHQ

...................

4,084

(4,084)

—

—

—

MSCO

...................

—

—

—

—

—

Total

...................

$17,186

$(15,752)

$

—

$—

$1,434

$

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

a

Net

Amount

(Not

less

than

zero)

Franklin

Strategic

Income

VIP

Fund

Counterparty

BNDP

...................

$22,788

$—

$—

$—

$22,788

BZWS

...................

28,150

—

—

—

28,150

CITI

.....................

1,496,341

(11,237)

—

(1,430,000)

55,104

GSCO

...................

431

(431)

—

—

—

JPHQ

...................

273,199

(4,084)

—

(269,115)

—

MSCO

...................

32,910

—

—

—

32,910

Total

...................

$1,853,819

$(15,752)

$—

$(1,699,115)

$138,952

a

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

FSI-58

Annual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

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

matured

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.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

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

year

ended

December

31,

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.)

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

December

31,

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

.............

$

702,390

$

—

$

—

$

702,390

Media

...............................

74,109

—

—

74,109

Multiline

Retail

........................

—

—

—

a

—

Oil,

Gas

&

Consumable

Fuels

.............

3,789

736,007

—

739,796

Management

Investment

Companies

.........

—

18,501,151

—

18,501,151

Convertible

Bonds

.......................

—

2,360

—

2,360

Corporate

Bonds

:

Aerospace

&

Defense

...................

—

2,189,276

—

2,189,276

Air

Freight

&

Logistics

...................

—

774,894

—

774,894

Airlines

..............................

—

1,716,057

—

1,716,057

Auto

Components

......................

—

3,688,134

—

3,688,134

Automobiles

..........................

—

851,407

—

851,407

Banks

...............................

—

15,785,741

—

15,785,741

Beverages

...........................

—

1,594,977

—

1,594,977

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSI-59

Annual

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:

Biotechnology

.........................

$

—

$

1,003,928

$

—

$

1,003,928

Building

Products

......................

—

1,702,736

—

1,702,736

Capital

Markets

........................

—

8,441,024

—

8,441,024

Chemicals

...........................

—

5,941,821

—

5,941,821

Commercial

Services

&

Supplies

...........

—

2,070,369

—

2,070,369

Construction

&

Engineering

...............

—

649,887

—

649,887

Consumer

Finance

.....................

—

1,420,499

—

1,420,499

Containers

&

Packaging

.................

—

2,585,736

—

2,585,736

Diversified

Consumer

Services

............

—

754,632

—

754,632

Diversified

Financial

Services

.............

—

1,113,965

—

1,113,965

Diversified

Telecommunication

Services

.....

—

3,299,941

—

3,299,941

Electric

Utilities

........................

—

4,132,668

—

4,132,668

Electrical

Equipment

....................

—

952,618

—

952,618

Electronic

Equipment,

Instruments

&

Components

........................

—

1,521,465

—

1,521,465

Energy

Equipment

&

Services

.............

—

394,914

—

394,914

Entertainment

.........................

—

1,565,408

—

1,565,408

Equity

Real

Estate

Investment

Trusts

(REITs)

.

—

2,438,565

—

2,438,565

Food

Products

........................

—

1,239,105

—

1,239,105

Gas

Utilities

..........................

—

202,033

—

202,033

Health

Care

Equipment

&

Supplies

.........

—

715,905

—

715,905

Health

Care

Providers

&

Services

..........

—

4,324,290

—

4,324,290

Hotels,

Restaurants

&

Leisure

.............

—

3,774,882

—

3,774,882

Household

Durables

....................

—

323,485

—

323,485

Household

Products

....................

—

966,519

—

966,519

Independent

Power

and

Renewable

Electricity

Producers

..........................

—

6,016,376

—

6,016,376

Insurance

............................

—

980,048

—

980,048

Interactive

Media

&

Services

..............

—

1,386,073

—

1,386,073

Internet

&

Direct

Marketing

Retail

..........

—

460,898

—

460,898

IT

Services

...........................

—

3,525,185

—

3,525,185

Machinery

............................

—

1,136,951

—

1,136,951

Marine

..............................

—

1,197,846

—

1,197,846

Media

...............................

—

5,010,393

—

5,010,393

Metals

&

Mining

.......................

—

1,085,411

—

1,085,411

Multiline

Retail

........................

—

434,600

—

a

434,600

Multi-Utilities

..........................

—

1,072,439

—

1,072,439

Oil,

Gas

&

Consumable

Fuels

.............

—

12,682,489

—

12,682,489

Paper

&

Forest

Products

.................

—

1,142,287

—

1,142,287

Personal

Products

.....................

—

912,973

—

912,973

Pharmaceuticals

.......................

—

3,062,594

—

3,062,594

Real

Estate

Management

&

Development

....

—

1,013,546

—

1,013,546

Road

&

Rail

..........................

—

1,482,025

—

1,482,025

Software

.............................

—

1,271,497

—

1,271,497

Specialty

Retail

........................

—

855,921

—

855,921

Technology

Hardware,

Storage

&

Peripherals

.

—

161,873

—

161,873

Thrifts

&

Mortgage

Finance

...............

—

1,580,291

—

1,580,291

Tobacco

.............................

—

1,315,190

—

1,315,190

Trading

Companies

&

Distributors

..........

—

1,219,334

—

1,219,334

Transportation

Infrastructure

..............

—

117,979

—

117,979

13.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSI-60

Annual

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

year.

At

December

31,

2022,

the

reconciliation

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Strategic

Income

VIP

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Corporate

Bonds:

Wireless

Telecommunication

Services

.......

$

—

$

1,522,040

$

—

$

1,522,040

Marketplace

Loans

......................

—

—

6,941,352

6,941,352

Foreign

Government

and

Agency

Securities

....

—

12,165,929

—

12,165,929

U.S.

Government

and

Agency

Securities

.......

—

60,406,872

—

60,406,872

Asset-Backed

Securities

..................

—

15,884,486

—

15,884,486

Commercial

Mortgage-Backed

Securities

......

—

1,593,607

—

1,593,607

Mortgage-Backed

Securities

................

—

18,981,913

—

18,981,913

Residential

Mortgage-Backed

Securities

......

—

14,234,319

—

14,234,319

Escrows

and

Litigation

Trusts

...............

—

3,949

—

a

3,949

Short

Term

Investments

...................

18,252,570

—

—

18,252,570

Total

Investments

in

Securities

...........

$19,032,858

$271,293,733

$6,941,352

$297,267,943

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

4,084

$

—

$

4,084

Futures

contracts

........................

105,831

—

—

105,831

Swap

contracts

.........................

—

6,793

—

6,793

Total

Other

Financial

Instruments

.........

$105,831

$10,877

$—

$116,708

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

273,199

$

—

$

273,199

Futures

contracts

........................

85,283

—

—

85,283

Swap

contracts

..........................

—

1,010,430

—

1,010,430

Total

Other

Financial

Instruments

.........

$85,283

$1,283,629

$—

$1,368,912

a

Includes

financial

instruments

determined

to

have

no

value

at

December

31,

2022.

Balance

at

Beginning

of

Year

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

Year

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Year

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

$—

$(3,268)

$—

$—

$—

$—

$489

$—

$—

Multiline

Retail

......

—

c

—

—

—

—

—

—

—

—

c

—

Oil,

Gas

&

Consumable

Fuels

..........

—

c

—

(199)

—

—

—

(98,439)

98,638

—

c

—

Warrants

:

Oil,

Gas

&

Consumable

Fuels

..........

3

—

—

c

—

—

—

—

(3)

—

—

Corporate

Bonds

:

Multiline

Retail

......

—

c

—

c

—

—

—

—

—

—

—

c

—

Marketplace

Loans

:

Diversified

Financial

Services

........

5,892,407

6,426,813

(4,644,515)

—

—

—

(108,518)

(624,835)

6,941,352

(635,518)

13.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSI-61

Annual

Report

Franklin

Strategic

Income

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

December

3

1

,

202

2

,

are

as

follows:

14.

New

Accounting

Pronouncements

In

March

2020,

the

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

and

December

2022,

the

FASB

issued

ASU

No.

2021-01

and

ASU

No.

2022-06,

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

Balance

at

Beginning

of

Year

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unrealized

Appreciation

(Depreciation)

Balance

at

End

of

Year

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Year

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Strategic

Income

VIP

Fund

(continued)

Assets:

Investments

in

Securities:

Escrows

and

Litigation

Trusts

...........

$—

c

$—

$(10,914)

$—

$—

$—

$10,914

$—

$—

c

$—

Total

Investments

in

Securities

............

$5,895,189

$6,426,813

$(4,658,896)

$—

$—

$—

$(196,043)

$(525,711)

$6,941,352

$(635,518)

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

financial

instruments

determined

to

have

no

value.

Description

Fair

Value

at

End

of

Year

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.

$5,684,014

Discounted

cash

flow

Loss-adjusted

discount

rate

6.4%

–

10.8%

(9.3%)

Decrease

Projected

loss

rate

17.0%

–

23.3%

(21.2%)

Decrease

All

Other

Investments

.

.

.

.

.

.

.

1,257,338

c,d

Total

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.........

$6,941,352

a

Weighted

based

on

the

relative

fair

value

of

the

financial

instruments.

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

increases

and

decreases

in

these

inputs

in

isolation

could

result

in

significantly

higher

or

lower

fair

value

measurements.

c

Includes

fair

value

of

immaterial

assets

and/or

liabilities

developed

using

various

valuation

techniques

and

unobservable

inputs.

May

also

include

values

derived

using

recent

transactions,

private

transaction

prices

or

non-public

third-party

pricing

information

which

is

unobservable.

d

Includes

financial

instruments

determined

to

have

no

value

at

December

31,

2022.

13.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

FSI-62

Annual

Report

Franklin

Strategic

Income

VIP

Fund

(continued)

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2024.

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

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

will

not

have

a

material

impact

on

the

financial

statements.

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

other

than

those

already

disclosed

in

the

financial

statements.

Abbreviations

Counterparty

BNDP

BNP

Paribas

SA

BZWS

Barclays

Bank

plc

CITI

Citibank

NA

GSCO

Goldman

Sachs

Group,

Inc.

JPHQ

JPMorgan

Chase

Bank

NA

MSCO

Morgan

Stanley

Cu

r

rency

COP

Colombian

Peso

DOP

Dominican

Peso

EUR

Euro

USD

United

States

Dollar

Index

MSCI

Morgan

Stanley

Capital

International

CDX.NA.HY.

Series

number

CDX

North

America

High

Yield

Index

MCDX.

NA.MAIN.

Series

number

MCDX

North

America

Index

Selected

Portfolio

CLO

Collateralized

Loan

Obligation

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

LIBOR

London

Inter-Bank

Offered

Rate

MBS

Mortgage-Backed

Security

PIK

Payment-In-Kind

REIT

Real

Estate

Investment

Trust

SOFR

Secured

Overnight

Financing

Rate

STACR

Structured

Agency

Credit

Risk

T-Note

Treasury

Note

14.

New

Accounting

Pronouncements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

FSI-63

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Templeton

Variable

Insurance

Products

Trust

and

Shareholders

of

Franklin

Strategic

Income

VIP

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Franklin

Strategic

Income

VIP

Fund

(one

of

the

funds

constituting

Franklin

Templeton

Variable

Insurance

Products

Trust,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2022,

the

related

statement

of

operations

for

the

year

ended

December

31,

2022,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2022,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Templeton

Variable

Insurance

Products

Trust

Tax

Information

(unaudited)

FSI-64

Annual

Report

Franklin

Strategic

Income

VIP

Fund

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2022:

Note

(1)

-

The

Law

varies

in

each

state

as

to

whether

and

what

percentage

of

dividend

income

attributable

to

Federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

consult

with

their

tax

advisors

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

taxes.

Pursuant

to:

Amount

Reported

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$326,896

Interest

Earned

from

Federal

Obligations

Note

(1)

$1,358,218

TD-1

Annual

Report

Templeton

Developing

Markets

VIP

Fund

This

annual

report

for

Templeton

Developing

Markets

VIP

Fund

covers

the

fiscal

year

ended

December

31,

202

2

.

Class

4

Performance

Summary

as

of

December

31,

202

2

Average

annual

total

return

of

Class

4

shares*

represents

the

average

annual

change

in

value,

assuming

reinvestment

of

dividends

and

capital

gains.

Average

returns

smooth

out

variations

in

returns,

which

can

be

significant;

they

are

not

the

same

as

year-by-year

results.

*The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Performance

reflects

the

Fund’s

Class

4

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.

Share

Class

Average

Annual

Total

Return

–

4

1-Year

-22.00%

5-Year

-1.77%

10-Year

+0.91%

TD-2

Annual

Report

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

(12/31/12–

12/31/22

)

The

graph

below

shows

the

change

in

value

of

a

hypothetical

$10,000

investment

in

the

Fund

over

the

indicated

period

and

includes

reinvestment

of

any

income

or

distributions.

The

Fund’s

performance*

is

compared

to

the

performance

of

the

MSCI

Emerging

Markets

(EM)

Index-NR.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Important

Notes

to

Performance

Information

preceding

the

Fund

Summaries

.

**Source:

FactSet.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

TD-3

Annual

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

involve

heightened

risks

related

to

the

same

factors,

in

addition

to

those

associated

with

these

markets’

smaller

size

and

lesser

liquidity.

The

Fund

is

designed

for

the

aggressive

portion

of

a

well-diversified

portfolio.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

one-year

total

return

in

the

Performance

Summary.

In

comparison,

the

Fund’s

benchmark,

the

MSCI

Emerging

Markets

(EM)

Index-NR,

posted

a

-20.09%

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

mostly

grew

during

the

12

months

ended

December

31,

2022,

although

high

levels

of

inflation,

the

spread

of

COVID-19

variants

and

Russia’s

invasion

of

Ukraine

restrained

growth.

Most

emerging

market

countries’

central

banks—with

the

notable

exception

of

China—raised

their

benchmark

interest

rates

to

stem

inflation,

a

trend

also

seen

in

developed

market

countries.

During

the

period,

emerging

market

equities

were

hurt

by

Geographic

Composition

12/31/22

%

of

Total

Net

Assets

Asia

78.4%

Latin

America

&

Caribbean

12.0%

North

America

3.2%

Europe

2.5%

Middle East & Africa

1.2%

Short-Term

Investments

&

Other

Net

Assets

2.7%

Templeton

Developing

Markets

VIP

Fund

TD-4

Annual

Report

investor

concerns

about

Russia’s

invasion

of

Ukraine,

rising

inflation

and

accompanying

interest-rate

hikes,

supply-chain

challenges,

and

China’s

government

regulations

targeting

technology

companies.

Overall

losses

were

somewhat

limited

by

a

rally

late

in

the

period,

as

China’s

easing

of

its

“zero-COVID”

policy

and

receding

global

inflation

boosted

investor

confidence.

Regarding

individual

countries,

China’s

year-on-year

economic

growth

rate

accelerated

in

2022’s

first

quarter

but

slowed

significantly

in

the

second

quarter

amid

continued

COVID

outbreaks,

weak

domestic

demand

and

tightening

monetary

policy

abroad.

Growth

rebounded

in

the

third

quarter,

due

partly

to

supportive

government

policies.

Taiwan’s

year-on-year

growth

rate

moderated

in

2022’s

first

half

amid

weakness

in

private

and

government

spending

as

well

as

imports

outpacing

exports.

A

rebound

in

private

spending

helped

growth

accelerate

in

the

third

quarter.

South

Korea’s

year-on-year

growth

rate

moderated

in

2022’s

first

quarter,

as

investment

and

spending

weakened

amid

government

restrictions

to

slow

the

spread

of

COVID,

and

remained

mostly

steady

in

the

second

and

third

quarters.

India’s

year-on-year

growth

rate

moderated

in

2022’s

first

quarter,

dragged

down

by

outbreaks

of

the

Omicron

variant,

high

energy

prices

and

supply-chain

disruptions.

Growth

accelerated

in

the

second

quarter,

boosted

by

accelerating

private

and

public

spending,

but

moderated

in

the

third

quarter

as

inflation

and

rising

interest

rates

hurt

domestic

demand

and

weak

global

demand

hurt

exports.

Russia’s

year-on-year

growth

rate

moderated

in

2022’s

first

quarter

and

contracted

in

the

second

and

third

quarters

as

domestic

spending

weakened

amid

widespread

international

sanctions

imposed

in

response

to

Russia’s

invasion

of

Ukraine.

Brazil’s

year-on-year

growth

rates

accelerated

in

2022’s

first

half,

due

in

part

to

an

increase

in

private

spending

spurred

by

the

lifting

of

COVID-related

restrictions.

Growth

was

mostly

steady

in

the

third

quarter.

Turning

to

specific

countries’

monetary

policies,

the

People’s

Bank

of

China

lowered

its

benchmark

loan

prime

rate

two

times

during

the

period

to

spur

growth

in

the

face

of

COVID-

related

headwinds,

high

commodity

prices

and

a

downturn

in

the

property

market.

In

contrast,

the

central

banks

of

Taiwan,

South

Korea,

India

and

Brazil

all

raised

their

benchmark

interest

rates

multiple

times

to

stem

rising

inflation.

Russia’s

central

bank

more

than

doubled

its

benchmark

interest

rate

early

in

the

period

to

offset

ruble

devaluation

caused

by

international

sanctions

following

the

country’s

invasion

of

Ukraine

in

February

2022.

During

the

rest

of

the

period,

Russia’s

central

bank

cut

its

benchmark

rate

multiple

times,

and

the

rate

ended

the

period

lower

than

where

it

started.

In

this

environment,

emerging

market

stocks,

as

measured

by

the

MSCI

EM

Index-NR,

posted

a

-20.09%

total

return

for

the

12

months

ended

December

31,

2022.

1

Chinese

equities

declined

significantly

during

the

period

due

to

regulatory

pressure

on

technology

companies,

a

slowdown

in

the

property

market

and

new

COVID

outbreaks.

A

late-period

rally

did

ease

overall

losses

as

the

government

eased

its

zero-COVID

policies

and

provided

support

to

the

embattled

property

sector.

Equities

in

Taiwan

also

fell

significantly

during

the

period,

mostly

due

to

weakening

global

demand

for

consumer

electronics

and

a

broader

selloff

of

growth

stocks.

Russian

equities

declined

significantly

early

in

the

reporting

period

in

the

run-up

to

Russia’s

invasion

of

Ukraine.

In

March

2022,

major

index

providers

MSCI

and

FTSE

Russell

zero-valued

Russian

equities

and

dropped

them

from

their

benchmarks

following

the

Russian

Top

10

Countries

12/31/22

a

%

of

Total

Net

Assets

a

a

China

28.1%

South

Korea

19.2%

Taiwan

13.9%

India

11.7%

Brazil

8.4%

United

States

3.2%

Thailand

2.5%

Mexico

2.4%

United

Kingdom

1.7%

Hong

Kong

1.3%

Top

10

Holdings

12/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

10.0%

Semiconductors

&

Semiconductor

Equipment,

Taiwan

ICICI

Bank

Ltd.

5.9%

Banks,

India

Samsung

Electronics

Co.

Ltd.

5.7%

Technology

Hardware,

Storage

&

Peripherals,

South

Korea

Alibaba

Group

Holding

Ltd.

5.2%

Internet

&

Direct

Marketing

Retail,

China

Tencent

Holdings

Ltd.

4.4%

Interactive

Media

&

Services,

China

MediaTek,

Inc.

3.3%

Semiconductors

&

Semiconductor

Equipment,

Taiwan

NAVER

Corp.

3.0%

Interactive

Media

&

Services,

South

Korea

LG

Corp.

2.8%

Industrial

Conglomerates,

South

Korea

China

Merchants

Bank

Co.

Ltd.

2.8%

Banks,

China

Prosus

NV

2.6%

Internet

&

Direct

Marketing

Retail,

China

Templeton

Developing

Markets

VIP

Fund

TD-5

Annual

Report

government

closing

access

to

its

stock

markets.

Brazilian

equities

rose

during

a

volatile

12-month

period.

Valuations

shot

up

in

2022’s

first

quarter

due

to

high

foreign

inflows—

attracted

by

low

equity

prices—and

high

commodity

prices.

Most

of

those

gains

were

reversed

in

the

second

quarter

as

commodity

prices

fell

from

their

peaks

and

rising

fuel

costs

and

inflation

heightened

the

risk

of

social

unrest.

Equity

prices

then

rose

during

the

remaining

six

months

of

the

year,

as

inflation

rose

less

than

expected

and

unemployment

declined.

Investment

Strategy

We

employ

a

fundamental

research-driven,

long-term

approach,

focusing

on

companies

with

sustainable

earnings

power

at

a

discount

to

intrinsic

worth.

In

assessing

individual

investment

opportunities,

the

investment

manager

considers

a

variety

of

factors,

including

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.

The

investment

manager

also

focuses

on

incorporating

ESG

factors

throughout

the

investment

process,

including

the

Fund’s

security

selection

and

portfolio

construction

process.

Manager’s

Discussion

Key

contributors

to

absolute

performance

during

the

reporting

period

were

Brilliance

China

Automotive

Holdings,

ICICI

Bank

and

Petroleo

Brasileiro.

Brilliance

China

Automotive

is

a

Chinese

carmaker

noted

for

its

joint

venture

with

German

luxury

carmaker

BMW

(not

a

Fund

holding).

Brilliance

China

Automotive

was

the

Fund’s

largest

contributor

for

the

period

as

the

company

saw

its

shares

move

higher

after

trading

was

resumed

in

October

2022

following

a

suspension

of

one-and-a-half

years.

The

company

has

announced

that

a

special

dividend

will

be

paid

out

of

the

proceeds

from

a

stake

sale

in

its

affiliate

BMW

Brilliance

Automotive.

Shares

of

India-based

ICICI

Bank

gained

during

the

year

following

several

consistently

strong

quarters

of

loan

growth,

net

interest

margins

and

non-interest

income.

In

our

view,

the

bank

remains

well

positioned

with

its

healthy

capital

adequacy

ratios

and

strong

franchise.

Brazil’s

national

oil

and

gas

company

Petroleo

Brasileiro

(Petrobras)

was

a

significant

contributor

to

performance,

boosted

by

rising

energy

prices

and

a

proactive

policy

of

returning

cash

to

shareholders.

Its

share

price

gave

up

some

gains

towards

the

end

of

the

year

amidst

concerns

regarding

potential

changes

in

management

and

the

strategy

for

the

company

under

the

new

Brazilian

government.

In

contrast,

key

detractors—in

addition

to

Russian

holdings—included

Taiwan

Semiconductor

Manufacturing

Co.

(TSMC),

Samsung

Electronics

and

NAVER.

After

rising

in

2021

from

a

positive

outlook

for

the

semiconductor

industry,

chipmaker

TSMC

came

under

selling

pressure

as

investors

reassessed

the

prospects

for

growth

in

chip

demand.

Lower

demand

for

Apple’s

(not

a

Fund

holding)

new

iPhone

model

along

with

geopolitical

concerns

and

U.S.

restrictions

on

chip

exports

to

China

also

contributed

to

the

decline

of

TSMC’s

share

price

during

the

year.

There

were

small

increases

in

the

stock

performance

throughout

the

year

following

quarterly

results,

but

these

were

overshadowed

by

negative

market

sentiment

for

the

stock

and

sector.

A

leading

global

semiconductor

manufacturer,

Samsung

Electronics

is

also

one

of

the

world’s

largest

smartphone

producers

as

well

as

a

key

supplier

of

organic

light-emitting

diode

(LED)

displays.

Similar

to

TSMC,

Samsung

Electronics

also

came

under

selling

pressure

as

investors

reassessed

the

outlook

for

chip

demand.

Rising

inventory

levels

have

converged

with

increased

global

economic

uncertainty,

resulting

in

an

inventory

adjustment

among

customers.

In

addition

to

the

already

weakening

demand

in

the

PC

and

mobile

segments,

there

were

also

concerns

over

the

outlook

for

server

demand.

Consensus

estimates

among

analysts

for

sales

in

2023

peaked

in

May

2022

and

have

been

trending

lower

since

then.

South

Korean

internet

search

and

advertising

company

NAVER

was

negatively

impacted

by

slower

growth

in

a

post-COVID

environment.

The

stock

was

pressured

by

concerns

about

expansion

into

unprofitable

new

businesses

in

an

uncertain

macroeconomic

environment

along

with

weak

earnings

which

fell

short

of

consensus

estimates.

However,

we

believe

NAVER

is

in

a

good

position

to

build

a

thriving

ecosystem

integrating

e-commerce,

payments

and

digital

content

based

on

its

solid

foundation

in

search

and

advertising.

Before

Russia’s

invasion

of

Ukraine,

we

had

maintained

our

position

in

Russian

stocks

including

LUKOIL,

a

major

Russian

oil

producer,

Sberbank

of

Russia,

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

Templeton

Developing

Markets

VIP

Fund

TD-6

Annual

Report

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.

For

the

12

months

ended

December

31,

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.

In

the

last

12

months,

the

Fund

increased

its

holdings

in

U.S.-listed

companies

with

broad

exposure

to

emerging

markets

as

well

as

Brazil,

China,

Hong

Kong

and

Chile

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

and

health

care.

Some

additions

were

also

made

to

the

communication

services

and

utilities

sectors.

New

additions

to

the

Fund

included

India’s

leading

private

sector

financial

services

firm

HDFC

Bank,

Hong

Kong-based

electronic

and

electric

product

manufacturer

Techtronic

Industries,

and

the

previously

mentioned

Petrobras.

We

also

added

to

our

existing

high-conviction

portfolio

holdings

with

purchases

in

India-based

and

U.S-

listed

business

process

outsourcing

company

Genpact,

China-based

financial

firm

China

Merchants

Banks,

and

Taiwan-based

MediaTek,

a

chip

designer

for

smartphones

and

other

technology

devices.

The

Fund

reduced

its

investments

in

Taiwan,

South

Africa

and

South

Korea

in

favor

of

opportunities

we

found

more

compelling.

Sectors

which

experienced

the

largest

sales

were

information

technology

(IT),

real

estate

and

financials.

In

terms

of

key

sales,

we

closed

positions

in

South

American

financial

exchange

B3,

waterproof

materials

maker

and

retailer

Keshun

Waterproof

Technologies,

and

China-listed

technology

solutions

group

Longshine

Technology

Group.

We

also

trimmed

positions

in

several

key

holdings,

including

the

aforementioned

Samsung

Electronics,

India-based

IT

services

organization

Tata

Consultancy

Services,

and

the

previously

mentioned

ICICI

Bank.

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

December

31,

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

4

Fund

Expenses

Templeton

Developing

Markets

VIP

Fund

TD-7

Annual

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

184/365

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

7/1/22

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

4

$1,000

$1,000.00

$6.73

$1,018.47

$6.80

1.34%

TD-8

Annual

Report

GOF

VIP

P1

P2

P4

P5

12/22

SUPPLEMENT

DATED

DECEMBER

23,

2022

TO

THE

CURRENTLY

EFFECTIVE

PROSPECTUSES

OF

EACH

FUND

LISTED

BELOW

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

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

TEMPLETON

DEVELOPING

MARKETS

VIP

FUND

TEMPLETON

FOREIGN

VIP

FUND

TEMPLETON

GLOBAL

BOND

VIP

FUND

TEMPLETON

GROWTH

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

I.

For

Franklin

Allocation

VIP

Fund,

Franklin

Global

Real

Estate

VIP

Fund,

Franklin

Income

VIP

Fund,

Franklin

Strategic

Income

VIP

Fund

and

Franklin

VolSmart

Allocation

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-

focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-

term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

II.

For

Franklin

Dynatech

VIP

Fund,

Franklin

Growth

and

Income

VIP

Fund,

Franklin

Large

Cap

Growth

VIP

Fund,

Franklin

Rising

Dividends

VIP

Fund,

Franklin

Small-Mid

Cap

Growth

VIP

Fund,

Templeton

Developing

Markets

VIP

Fund,

Templeton

Global

Bond

VIP

Fund,

Templeton

Foreign

VIP

Fund

and

Templeton

Growth

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

TD-9

Annual

Report

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

In

certain

circumstances,

there

may

be

times

when

not

every

investment

is

assessed

for

ESG

factors

and,

when

they

are,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

III.

For

Franklin

U.S.

Government

Securities

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

Social

and

Governance

Considerations

Social

and/or

governance

considerations

are

not

the

only

factors

considered

by

the

investment

manager

and

may

not

be

a

determinative

factor

in

the

investment

manager’s

selection

of

securities

for

the

Fund.

In

addition,

the

investment

manager

may

not

be

able

to

give

such

considerations

meaningful

weight

if

the

availability

of

appropriate

securities

for

the

Fund’s

portfolio

is

limited.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

certain

investments

may

differ

from

that

of

investors,

third

party

service

providers,

such

as

ratings

providers,

or

other

funds.

While

the

investment

manager

views

social

and

governance

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Developing

Markets

VIP

Fund

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TD-10

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$10.76

$11.73

$10.80

$8.62

$10.31

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.20

0.10

0.07

0.18

0.09

Net

realized

and

unrealized

gains

(losses)

...........

(2.52)

(0.70)

1.57

2.12

(1.67)

Total

from

investment

operations

....................

(2.32)

(0.60)

1.64

2.30

(1.58)

Less

distributions

from:

Net

investment

income

..........................

(0.26)

(0.13)

(0.45)

(0.12)

(0.11)

Net

realized

gains

.............................

(0.65)

(0.24)

(0.26)

—

—

Total

distributions

...............................

(0.91)

(0.37)

(0.71)

(0.12)

(0.11)

Net

asset

value,

end

of

year

.......................

$7.53

$10.76

$11.73

$10.80

$8.62

Total

return

c

...................................

(21.70)%

(5.51)%

17.39%

26.92%

(15.44)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.06%

1.19%

1.19%

1.15%

1.24%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.05%

1.19%

d

1.19%

d

1.15%

d

1.24%

d

Net

investment

income

...........................

2.39%

0.82%

0.73%

1.83%

0.99%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$66,115

$83,269

$89,165

$97,271

$85,397

Portfolio

turnover

rate

............................

27.39%

19.35%

11.60%

18.04%

9.22%

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.

d

Benefit

of

waiver

and

payments

by

affiliates

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.

Annual

Report

TD-11

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$10.67

$11.64

$10.71

$8.54

$10.23

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.17

0.07

0.05

0.15

0.07

Net

realized

and

unrealized

gains

(losses)

...........

(2.50)

(0.69)

1.56

2.11

(1.68)

Total

from

investment

operations

....................

(2.33)

(0.62)

1.61

2.26

(1.61)

Less

distributions

from:

Net

investment

income

..........................

(0.23)

(0.11)

(0.42)

(0.09)

(0.08)

Net

realized

gains

.............................

(0.65)

(0.24)

(0.26)

—

—

Total

distributions

...............................

(0.88)

(0.35)

(0.68)

(0.09)

(0.08)

Net

asset

value,

end

of

year

.......................

$7.46

$10.67

$11.64

$10.71

$8.54

Total

return

c

...................................

(21.98)%

(5.74)%

17.18%

26.70%

(15.79)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.31%

1.44%

1.45%

1.40%

1.49%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.30%

1.44%

d

1.44%

1.40%

d

1.49%

d

Net

investment

income

...........................

2.13%

0.57%

0.49%

1.58%

0.74%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$164,648

$215,977

$241,104

$231,645

$195,305

Portfolio

turnover

rate

............................

27.39%

19.35%

11.60%

18.04%

9.22%

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.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Developing

Markets

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TD-12

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$10.73

$11.71

$10.77

$8.59

$10.28

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.17

0.05

0.04

0.15

0.06

Net

realized

and

unrealized

gains

(losses)

...........

(2.51)

(0.70)

1.57

2.11

(1.68)

Total

from

investment

operations

....................

(2.34)

(0.65)

1.61

2.26

(1.62)

Less

distributions

from:

Net

investment

income

..........................

(0.21)

(0.09)

(0.41)

(0.08)

(0.07)

Net

realized

gains

.............................

(0.65)

(0.24)

(0.26)

—

—

Total

distributions

...............................

(0.86)

(0.33)

(0.67)

(0.08)

(0.07)

Net

asset

value,

end

of

year

.......................

$7.53

$10.73

$11.71

$10.77

$8.59

Total

return

c

...................................

(22.00)%

(5.90)%

17.05%

26.49%

(15.81)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.41%

1.54%

1.54%

1.50%

1.59%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.40%

1.54%

d

1.54%

d

1.50%

d

1.59%

d

Net

investment

income

...........................

2.01

%

0.46%

0.44%

1.48%

0.64%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$3,444

$4,846

$5,518

$5,590

$5,203

Portfolio

turnover

rate

............................

27.39%

19.35%

11.60%

18.04%

9.22%

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.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments,

December

31,

2022

Templeton

Developing

Markets

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

TD-13

a

a

Industry

Shares

a

Value

a

Common

Stocks

91.2%

Brazil

2.3%

Americanas

SA

..................

Internet

&

Direct

Marketing

Retail

310,691

$

565,988

TOTVS

SA

.....................

Software

17,462

90,941

Vale

SA

........................

Metals

&

Mining

261,048

4,417,417

a,b

XP,

Inc.,

A

......................

Capital

Markets

21,386

328,061

5,402,407

Cambodia

0.4%

a

NagaCorp

Ltd.

..................

Hotels,

Restaurants

&

Leisure

1,128,541

991,658

Chile

0.8%

Banco

Santander

Chile,

ADR

.......

Banks

113,339

1,795,290

China

28.1%

a

Alibaba

Group

Holding

Ltd.

.........

Internet

&

Direct

Marketing

Retail

1,052,654

11,550,829

a

Alibaba

Group

Holding

Ltd.,

ADR

....

Internet

&

Direct

Marketing

Retail

8,158

718,638

c

BAIC

Motor

Corp.

Ltd.,

H,

144A,

Reg

S

Automobiles

1,500,600

396,098

a

Baidu,

Inc.,

A

....................

Interactive

Media

&

Services

119,514

1,704,380

Beijing

Oriental

Yuhong

Waterproof

Technology

Co.

Ltd.,

A

...........

Construction

Materials

256,500

1,241,845

a

Brilliance

China

Automotive

Holdings

Ltd.

.........................

Automobiles

7,756,600

4,342,706

b

Chervon

Holdings

Ltd.

.............

Household

Durables

7,600

41,726

China

Merchants

Bank

Co.

Ltd.,

A

....

Banks

999,665

5,371,306

China

Merchants

Bank

Co.

Ltd.,

H

....

Banks

205,794

1,138,849

China

Resources

Cement

Holdings

Ltd.

Construction

Materials

2,844,315

1,503,104

China

Resources

Land

Ltd.

.........

Real

Estate

Management

&

Development

132,733

603,859

COSCO

SHIPPING

Ports

Ltd.

.......

Transportation

Infrastructure

696,259

552,555

a

Daqo

New

Energy

Corp.,

ADR

......

Semiconductors

&

Semiconductor

Equipment

51,143

1,974,631

c

Greentown

Service

Group

Co.

Ltd.,

Reg

S

...........................

Real

Estate

Management

&

Development

529,539

349,126

Guangzhou

Tinci

Materials

Technology

Co.

Ltd.,

A

....................

Chemicals

749,845

4,755,569

Health

&

Happiness

H&H

International

Holdings

Ltd.

..................

Food

Products

738,043

1,566,854

JD.com,

Inc.,

A

..................

Internet

&

Direct

Marketing

Retail

11,027

307,841

NetEase,

Inc.

...................

Entertainment

138,169

2,004,031

Ping

An

Bank

Co.

Ltd.,

A

...........

Banks

802,600

1,526,664

Ping

An

Insurance

Group

Co.

of

China

Ltd.,

H

.......................

Insurance

427,906

2,811,269

Prosus

NV

.....................

Internet

&

Direct

Marketing

Retail

88,577

6,115,375

Tencent

Holdings

Ltd.

.............

Interactive

Media

&

Services

240,405

10,193,390

a

Tencent

Music

Entertainment

Group,

ADR

........................

Entertainment

169,135

1,400,438

Uni-President

China

Holdings

Ltd.

....

Food

Products

2,464,705

2,460,157

Weifu

High-Technology

Group

Co.

Ltd.,

B

...........................

Auto

Components

306,139

516,128

a,c

Wuxi

Biologics

Cayman,

Inc.,

144A,

Reg

S

...........................

Life

Sciences

Tools

&

Services

85,792

649,789

65,797,157

Hong

Kong

1.3%

Techtronic

Industries

Co.

Ltd.

.......

Machinery

271,211

3,012,337

Hungary

0.9%

Richter

Gedeon

Nyrt.

.............

Pharmaceuticals

92,414

2,051,456

India

11.7%

Bajaj

Holdings

&

Investment

Ltd.

.....

Diversified

Financial

Services

30,257

2,096,743

HDFC

Bank

Ltd.

.................

Banks

241,052

4,727,059

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Templeton

Developing

Markets

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TD-14

a

a

Industry

Shares

a

Value

a

Common

Stocks

(continued)

India

(continued)

ICICI

Bank

Ltd.

..................

Banks

1,282,782

$

13,794,899

Infosys

Ltd.

.....................

IT

Services

95,284

1,736,847

a

One

97

Communications

Ltd.

.......

IT

Services

156,370

1,002,884

a

PB

Fintech

Ltd.

..................

Insurance

110,814

599,362

Tata

Consultancy

Services

Ltd.

......

IT

Services

37,676

1,481,429

a

Zomato

Ltd.

....................

Internet

&

Direct

Marketing

Retail

2,813,367

2,016,492

27,455,715

Indonesia

0.8%

Astra

International

Tbk.

PT

.........

Automobiles

5,181,170

1,896,048

Mexico

2.4%

Banco

Santander

Mexico

SA

Institucion

de

Banca

Multiple

Grupo

Financiero

Santand,

ADR

.................

Banks

840,830

5,070,205

a,c

Nemak

SAB

de

CV,

144A,

Reg

S

....

Auto

Components

1,928,900

550,335

5,620,540

Peru

0.5%

Intercorp

Financial

Services,

Inc.

.....

Banks

44,913

1,055,455

Philippines

0.3%

BDO

Unibank,

Inc.

...............

Banks

392,963

747,927

Russia

0.0%

d,e

LUKOIL

PJSC

...................

Oil,

Gas

&

Consumable

Fuels

85,254

—

a,d,e

Sberbank

of

Russia

PJSC

..........

Banks

1,061,956

—

a,c,d,e

VK

Co.

Ltd.,

GDR,

Reg

S

..........

Interactive

Media

&

Services

27,833

—

a,d,e

Yandex

NV,

A

...................

Interactive

Media

&

Services

88,921

—

—

South

Africa

0.5%

Netcare

Ltd.

....................

Health

Care

Providers

&

Services

1,392,319

1,190,170

South

Korea

19.2%

Fila

Holdings

Corp.

...............

Textiles,

Apparel

&

Luxury

Goods

80,307

2,127,544

KT

Skylife

Co.

Ltd.

...............

Media

92,351

597,718

a,f

L&F

Co.

Ltd.

....................

Electronic

Equipment,

Instruments

&

Components

4,702

651,037

a

LegoChem

Biosciences,

Inc.

........

Life

Sciences

Tools

&

Services

31,827

1,092,320

a

LG

Chem

Ltd.

...................

Chemicals

1,893

907,764

LG

Corp.

.......................

Industrial

Conglomerates

106,542

6,624,836

NAVER

Corp.

...................

Interactive

Media

&

Services

48,870

6,979,570

POSCO

Holdings,

Inc.

............

Metals

&

Mining

13,893

3,053,295

Samsung

Electronics

Co.

Ltd.

.......

Technology

Hardware,

Storage

&

Peripherals

305,422

13,462,335

Samsung

Life

Insurance

Co.

Ltd.

.....

Insurance

93,184

5,254,764

f

Samsung

SDI

Co.

Ltd.

............

Electronic

Equipment,

Instruments

&

Components

2,117

998,202

Soulbrain

Co.

Ltd.

................

Chemicals

18,367

3,205,372

44,954,757

Taiwan

13.9%

Hon

Hai

Precision

Industry

Co.

Ltd.

...

Electronic

Equipment,

Instruments

&

Components

411,946

1,335,408

MediaTek,

Inc.

..................

Semiconductors

&

Semiconductor

Equipment

379,647

7,677,184

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

......................

Semiconductors

&

Semiconductor

Equipment

1,618,551

23,510,408

32,523,000

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Templeton

Developing

Markets

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

TD-15

a

a

Industry

Shares

a

Value

a

Common

Stocks

(continued)

Thailand

2.5%

Kasikornbank

PCL

...............

Banks

705,593

$

3,000,085

Kiatnakin

Phatra

Bank

PCL

.........

Banks

549,194

1,168,493

Star

Petroleum

Refining

PCL

........

Oil,

Gas

&

Consumable

Fuels

3,229,814

995,799

Thai

Beverage

PCL

...............

Beverages

1,450,900

741,846

5,906,223

United

Arab

Emirates

0.7%

a

America

na

Restaurants

International

plc

Hotels,

Restaurants

&

Leisure

937,485

760,865

a

Emirates

Central

Cooling

Systems

Corp.

Water

Utilities

2,486,790

961,510

1,722,375

United

Kingdom

1.7%

Unilever

plc

.....................

Personal

Products

77,613

3,918,350

United

States

3.2%

Cognizant

Technology

Solutions

Corp.,

A

...........................

IT

Services

54,941

3,142,076

Genpact

Ltd.

....................

IT

Services

94,036

4,355,747

7,497,823

Total

Common

Stocks

(Cost

$188,173,398)

.....................................

213,538,688

a

Preferred

Stocks

6.1%

Brazil

6.1%

g

Banco

Bradesco

SA,

ADR,

3.99%

....

Banks

1,605,681

4,624,362

g

Itau

Unibanco

Holding

SA,

ADR,

4.25%

Banks

1,017,175

4,790,894

g

Petroleo

Brasileiro

SA,

46.96%

......

Oil,

Gas

&

Consumable

Fuels

1,049,217

4,862,228

14,277,484

Total

Preferred

Stocks

(Cost

$14,933,388)

......................................

14,277,484

a

a

a

a

a

Escrows

and

Litigation

Trusts

0.0%

a,d

Hemisphere

Properties

India

Ltd.,

Escrow

Account

................

82,304

—

Total

Escrows

and

Litigation

Trusts

(Cost

$–)

...................................

—

Total

Long

Term

Investments

(Cost

$203,106,786)

...............................

227,816,172

Short

Term

Investments

2.7%

a

a

Industry

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

2.7%

United

States

2.7%

h,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

.........

6,418,109

6,418,109

Total

Money

Market

Funds

(Cost

$6,418,109)

...................................

6,418,109

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$6,418,109

)

.................................

6,418,109

a

a

a

Total

Investments

(Cost

$209,524,895)

100.0%

..................................

$234,234,281

Other

Assets,

less

Liabilities

(0.0)%

†

...........................................

(27,427)

Net

Assets

100.0%

...........................................................

$234,206,854

a

a

a

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Templeton

Developing

Markets

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TD-16

See

Abbreviations

on

page

TD-

28

.

†

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

December

31,

2022.

See

Note

1(d).

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

December

31,

2022,

the

aggregate

value

of

these

securities

was

$1,945,348,

representing

0.8%

of

net

assets.

d

Fair

valued

using

significant

unobservable

inputs.

See

Note

9

regarding

fair

value

measurements.

e

See

Note

6

regarding

investments

in

Russian

securities.

f

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(c).

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

December

31,

2022

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

TD-17

Templeton

Developing

Markets

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$203,106,786

Cost

-

Non-controlled

affiliates

(Not

e

3e)

........................................................

6,418,109

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$144,503)

...................................

$227,816,172

Value

-

Non-controlled

affiliates

(Not

e

3e)

.......................................................

6,418,109

Foreign

currency,

at

value

(cost

$297,629)

........................................................

297,632

Receivables:

Investment

securities

sold

...................................................................

769,100

Capital

shares

sold

........................................................................

173,445

Dividends

and

interest

.....................................................................

1,191,760

Total

assets

..........................................................................

236,666,218

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

333,806

Capital

shares

redeemed

...................................................................

263,738

Management

fees

.........................................................................

208,409

Distribution

fees

..........................................................................

36,549

Trustees'

fees

and

expenses

.................................................................

1,126

Deferred

tax

...............................................................................

1,463,794

Accrued

expenses

and

other

liabilities

...........................................................

151,942

Total

liabilities

.........................................................................

2,459,364

Net

assets,

at

value

.................................................................

$234,206,854

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$213,575,413

Total

distributable

earnings

(losses)

.............................................................

20,631,441

Net

assets,

at

value

.................................................................

$234,206,854

Templeton

Developing

Markets

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$66,114,732

Shares

outstanding

........................................................................

8,782,276

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$7.53

Class

2:

Net

assets,

at

value

.......................................................................

$164,648,380

Shares

outstanding

........................................................................

22,064,646

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$7.46

Class

4:

Net

assets,

at

value

.......................................................................

$3,443,742

Shares

outstanding

........................................................................

457,785

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$7.53

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2022

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TD-18

Templeton

Developing

Markets

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$790,007)

Unaffiliated

issuers

........................................................................

$8,399,530

Non-controlled

affiliates

(Note

3e)

.............................................................

121,096

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

3,421

Non-controlled

affiliates

(Note

3

e

)

.............................................................

9

Total

investment

income

...................................................................

8,524,056

Expenses:

Management

fees

(Note

3

a

)

...................................................................

2,609,702

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

439,564

    Class

4

................................................................................

13,179

Custodian

fee

s

.............................................................................

33,249

Reports

to

shareholders

fees

..................................................................

(104,168)

Professional

fees

...........................................................................

91,998

Trustees'

fees

and

expenses

..................................................................

3,916

Other

....................................................................................

(5,173)

Total

expenses

.........................................................................

3,082,267

Expenses

waived/paid

by

affiliates

(Note

3e)

...................................................

(28,160)

Net

expenses

.........................................................................

3,054,107

Net

investment

income

................................................................

5,469,949

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

(net

of

foreign

taxes

of

$421,039)

Unaffiliated

issuers

......................................................................

1,848,542

Foreign

currency

transactions

................................................................

(141,849)

Net

realized

gain

(loss)

..................................................................

1,706,693

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(73,680,792)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(22,875)

Change

in

deferred

taxes

on

unrealized

appreciation

...............................................

6,609

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(73,697,058)

Net

realized

and

unrealized

gain

(loss)

............................................................

(71,990,365)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(66,520,416)

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.

Annual

Report

TD-19

Templeton

Developing

Markets

VIP

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$5,469,949

$2,143,492

Net

realized

gain

(loss)

.................................................

1,706,693

21,968,948

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(73,697,058)

(41,997,481)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(66,520,416)

(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

.............................................................

8,282,938

1,481,894

Class

2

.............................................................

13,751,849

(5,048,337)

Class

4

.............................................................

(11,196)

(263,658)

Total

capital

share

transactions

............................................

22,023,591

(3,830,101)

Net

increase

(decrease)

in

net

assets

...................................

(69,884,193)

(31,695,635)

Net

assets:

Beginning

of

year

.......................................................

304,091,047

335,786,682

End

of

year

...........................................................

$234,206,854

$304,091,047

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

Templeton

Developing

Markets

VIP

Fund

TD-20

Annual

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.

The

Trust

follows

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

Codification

Topic

946,

Financial

Services –

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

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

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

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,

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

December

31,

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

TD-21

Annual

Report

Templeton

Developing

Markets

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

Purchased

on

a

Delayed

Delivery

Basis

The

Fund

purchases

securities

on

a

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

December

31,

2022, the

Fund

held $149,044

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

TD-22

Annual

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

December

31,

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

TD-23

Annual

Report

Templeton

Developing

Markets

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

December

31,

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

Asset

Management

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

928,909

$7,745,700

941,262

$11,146,256

Shares

issued

in

reinvestment

of

distributions

..........

935,536

7,166,205

221,740

2,736,269

Shares

redeemed

...............................

(819,318)

(6,628,967)

(1,025,538)

(12,400,631)

Net

increase

(decrease)

..........................

1,045,127

$8,282,938

137,464

$1,481,894

Class

2

Shares:

Shares

sold

...................................

2,821,702

$23,517,095

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

...............................

(3,355,894)

(27,623,481)

(4,080,457)

(47,928,837)

Net

increase

(decrease)

..........................

1,815,576

$13,751,849

(470,739)

$(5,048,337)

Class

4

Shares:

Shares

sold

...................................

48,887

$394,136

54,666

$636,847

Shares

issued

in

reinvestment

of

distributions

..........

47,318

362,928

11,826

145,812

Shares

redeemed

...............................

(89,804)

(768,260)

(86,374)

(1,046,317)

Net

increase

(decrease)

..........................

6,401

$(11,196)

(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

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

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TD-24

Annual

Report

Templeton

Developing

Markets

VIP

Fund

(continued)

For

the

year

ended

December

31,

2022,

the

gross

effective

investment

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

year

ended

December

31,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

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,

3.782%

$

5,805,544

$

52,963,929

$

(52,351,364)

$

—

$

—

$

6,418,109

6,418,109

$

121,096

3.

Transactions

with

Affiliates

(continued)

a.

Management

Fees

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TD-25

Annual

Report

Templeton

Developing

Markets

VIP

Fund

(continued)

4.

Income

Taxes

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021,

was

as

follows:

At

December

31,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

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,

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

year

ended

December

31,

2022,

aggregated

$67,283,208

and

$66,696,869,

respectively.

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Templeton

Developing

Markets

VIP

Fund

(continued)

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

$170,471

$3,975,963

$(4,146,434)

$—

$—

$—

—

$9

Total

Affiliated

Securities

...

$5,976,015

$56,939,892

$(56,497,798)

$—

$—

$6,418,109

$121,105

2022

2021

Distributions

paid

from:

Ordinary

income

..........................................................

$9,222,377

$9,445,508

Long

term

capital

gain

......................................................

16,164,991

534,985

$25,387,368

$9,980,493

Cost

of

investments

..........................................................................

$216,905,769

Unrealized

appreciation

........................................................................

$59,230,377

Unrealized

depreciation

........................................................................

(41,901,865)

Net

unrealized

appreciation

(depreciation)

..........................................................

$17,328,512

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$4,929,865

Undistributed

long

term

capital

gains

..............................................................

$185,933

Total

distributable

earnings

.....................................................................

$5,115,798

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TD-26

Annual

Report

Templeton

Developing

Markets

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.

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

Qualified

Foreign

Institutional

Investor

(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

was

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

market

participants,

the

Russian

financial

instruments

held

by

the

Fund

had

little

or

no

value

at

December

31,

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

matured

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TD-27

Annual

Report

Templeton

Developing

Markets

VIP

Fund

(continued)

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion. 

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

year

ended

December

31,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

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

December

31,

2022,

in

valuing

the

Fund's assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Templeton

Developing

Markets

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Brazil

................................

$

328,061

$

5,074,346

$

—

$

5,402,407

Cambodia

............................

—

991,658

—

991,658

Chile

................................

1,795,290

—

—

1,795,290

China

...............................

8,436,413

57,360,744

—

65,797,157

Hong

Kong

...........................

—

3,012,337

—

3,012,337

Hungary

.............................

—

2,051,456

—

2,051,456

India

................................

—

27,455,715

—

27,455,715

Indonesia

............................

—

1,896,048

—

1,896,048

Mexico

..............................

5,620,540

—

—

5,620,540

Peru

................................

1,055,455

—

—

1,055,455

Philippines

............................

—

747,927

—

747,927

Russia

...............................

—

—

—

a

—

South

Africa

...........................

—

1,190,170

—

1,190,170

South

Korea

..........................

—

44,954,757

—

44,954,757

Taiwan

...............................

—

32,523,000

—

32,523,000

Thailand

.............................

—

5,906,223

—

5,906,223

United

Arab

Emirates

....................

1,722,375

—

—

1,722,375

United

Kingdom

........................

—

3,918,350

—

3,918,350

United

States

..........................

7,497,823

—

—

7,497,823

8.

Credit

Facility

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TD-28

Annual

Report

Templeton

Developing

Markets

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 year.

10.

New

Accounting

Pronouncements

In June

2022,

the

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

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

will

not

have

a

material

impact

on

the

financial

statements.

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

other

than

those

already

disclosed

in

the

financial

statements.

Abbreviations

Level

1

Level

2

Level

3

Total

Templeton

Developing

Markets

VIP

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Preferred

Stocks

:

Brazil

................................

$

9,415,256

$

4,862,228

$

—

$

14,277,484

Escrows

and

Litigation

Trusts

...............

—

—

—

a

—

Short

Term

Investments

...................

6,418,109

—

—

6,418,109

Total

Investments

in

Securities

...........

$42,289,322

$191,944,959

b

$—

$234,234,281

a

Includes

financial

instruments

determined

to

have

no

value

at

December

31,

2022.

b

Includes

foreign

securities

valued

at

$191,944,959,

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

GDR

Global

Depositary

Receipt

9.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

TD-29

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Templeton

Variable

Insurance

Products

Trust

and

Shareholders

of

Templeton

Developing

Markets

VIP

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Templeton

Developing

Markets

VIP

Fund

(one

of

the

funds

constituting

Franklin

Templeton

Variable

Insurance

Products

Trust,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2022,

the

related

statement

of

operations

for

the

year

ended

December

31,

2022,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2022,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Templeton

Variable

Insurance

Products

Trust

Tax

Information

(unaudited)

TD-30

Annual

Report

Templeton

Developing

Markets

VIP

Fund

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2022:

Under

Section

853

of

the

Internal

Revenue

Code,

the

Fund

intends

to

elect

to

pass

through

to

its

shareholders

the

following

amounts,

or

amounts

as

finally

determined,

of

foreign

taxes

paid

and

foreign

source

income

earned

by

the

fund

during

the

fiscal

year

ended

December

31,

2022:

Pursuant

to:

Amount

Reported

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$16,164,991

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$59,336

Amount

Reported

Foreign

Taxes

Paid

$784,895

Foreign

Source

Income

Earned

$4,541,540

TF-1

Annual

Report

Templeton

Foreign

VIP

Fund

This

annual

report

for

Templeton

Foreign

VIP

Fund

covers

the

fiscal

year

ended

December

3

1

,

2022

.

Class

4

Performance

Summary

as

of

December

3

1

,

2022

Average

annual

total

return

of

Class

4

shares*

represents

the

average

annual

change

in

value,

assuming

reinvestment

of

dividends

and

capital

gains.

Average

returns

smooth

out

variations

in

returns,

which

can

be

significant;

they

are

not

the

same

as

year-by-year

results.

*Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

and

are

sourced

from

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Performance

reflects

the

Fund’s

Class

4

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.

Share

Class

Average

Annual

Total

Return

–

4

1-Year

-7.75%

5-Year

-2.08%

10-Year

+1.36%

TF-2

Annual

Report

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

(12/31/12–12/31/22)

The

graph

below

shows

the

change

in

value

of

a

hypothetical

$10,000

investment

in

the

Fund

over

the

indicated

period

and

includes

reinvestment

of

any

income

or

distributions.

The

Fund’s

performance*

is

compared

to

the

performance

of

the

MSCI

All

Country

World

Index

(ACWI)

ex

USA

Index-NR.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Important

Notes

to

Performance

Information

preceding

the

Fund

Summaries.

**Source:

FactSet.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

TF-3

Annual

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.

Special

risks

are

associated

with

foreign

investing,

including

currency

fluctuations,

economic

instability

and

political

developments;

investments

in

emerging

markets

involve

heightened

risks

related

to

the

same

factors.

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.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

one-year

total

return

in

the

Performance

Summary.

For

comparison,

the

Fund’s

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)

ex

USA

Index-NR,

posted

a

-16.00%

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

-18.36%

total

return

for

the

12

months

ended

December

31,

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

monetary

policy

in

2022,

which

hindered

stocks

and

the

outlook

for

economic

growth.

Russia’s

invasion

of

Ukraine

and

the

subsequent

escalation

of

the

war

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

disrupted

global

trade

and

commodity

markets.

Meanwhile,

shifting

public

health

policy

in

China

added

volatility

to

the

global

economy,

as

lockdowns

early

in

the

period

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

slowed

economic

activity,

while

widespread

protests

late

in

the

period

led

the

government

to

relax

its

strictest

“zero-COVID”

policies.

In

the

U.S.,

gross

domestic

product

(GDP)

expanded

in

the

second

half

of

the

calendar

year,

recovering

from

a

slight

contraction

in

the

first

half

of

the

year

when

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

economic

output.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence

despite

high

spending

levels,

robust

job

growth

and

low

unemployment.

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

six

meetings

to

end

the

period

at

a

range

of

4.25%–4.50%.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

Geographic

Composition

12/31/22

%

of

Total

Net

Assets

Europe

55.0%

Asia

39.4%

Latin

America

&

Caribbean

1.5%

Short-Term

Investments

&

Other

Net

Assets

4.1%

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-4

Annual

Report

its

bond

holdings

and

anticipated

additional

interest-rate

increases

at

future

meetings

to

curtail

inflation.

Economic

growth

in

the

eurozone

decelerated

to

a

slightly

positive

growth

rate

during

the

year.

The

lifting

of

COVID-

related

restrictions

in

some

European

countries

and

the

summer

tourism

season

strengthened

economies.

However,

the

war

in

Ukraine

disrupted

supply

chains,

weakened

the

economic

outlook

and

contributed

to

record

high

inflation

across

the

eurozone,

as

energy

prices

soared.

Electricity

prices

hit

record

highs

in

Germany

and

France

as

coal

futures

and

natural

gas

prices

climbed.

Consequently,

the

European

Central

Bank

raised

interest

rates

in

July

2022

for

the

first

time

in

11

years

to

curtail

growing

inflation

and

raised

rates

in

three

subsequent

meetings.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-15.06%

total

return

for

the

12

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-18.61%

total

return

for

the

12-month

period.

1

Growth

in

Japan

remained

slow,

alternating

between

positive

quarterly

GDP

growth

and

contraction.

China’s

economy

contracted

sharply

in

2022

as

COVID-related

restrictions

in

many

major

cities,

including

Shanghai,

weakened

consumer

demand.

Investor

concerns

about

the

solvency

of

several

large

property

developers

in

China

further

pressured

stocks

in

that

country.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-20.09%

total

return

for

the

12

months

under

review.

1

Central

bank

tightening,

the

threat

of

recession,

and

weakening

demand

for

semiconductors

in

technology-heavy

countries

contributed

to

the

downturn.

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.

However,

some

emerging

economies,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

benefited

from

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,

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

outperformed

its

benchmark

MSCI

ACWI

ex

USA

Index-NR

in

2022,

a

challenging

year

that

saw

international

equities

post

their

biggest

decline

since

the

depths

of

the

global

financial

crisis

as

central

banks

tightened

policy

to

combat

rising

inflation.

All

major

regions

and

all

but

two

of

the

Fund’s

sector

exposures

performed

better

than

the

benchmark

during

the

year

in

review.

Encouragingly,

relative

strength

was

primarily

attributable

to

stock

selection.

We

have

long

believed

the

ultra-loose

policy

environment

prevailing

in

recent

years

was

anomalous,

and

that

the

transition

to

a

more

normalized

interest

rate

environment

would

eventually

increase

investor

scrutiny

on

price

and

fundamentals,

potentially

rewarding

our

value-oriented

strategy.

As

it

happened,

international

value

stocks

had

their

best

year

relative

to

international

growth

stocks

since

the

bursting

of

the

TMT

(technology-media-

telecommunication)

Bubble,

and

Templeton

Foreign

VIP

Fund

outperformed

even

the

value

benchmark.

Energy

was

the

Fund’s

top-performing

sector

in

2022,

benefiting

from

both

stock

selection

and

a

favorable

overweighted

allocation.

The

Fund’s

top

two

individual

Top

10

Holdings

12/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

BP

plc

5.5%

Oil,

Gas

&

Consumable

Fuels,

United

Kingdom

Shell

plc

4.9%

Oil,

Gas

&

Consumable

Fuels,

Netherlands

Samsung

Electronics

Co.

Ltd.

3.8%

Technology

Hardware,

Storage

&

Peripherals,

South

Korea

Standard

Chartered

plc

3.2%

Banks,

United

Kingdom

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

3.1%

Semiconductors

&

Semiconductor

Equipment,

Taiwan

Bayerische

Motoren

Werke

AG

2.8%

Automobiles,

Germany

Bayer

AG

2.7%

Pharmaceuticals,

Germany

AstraZeneca

plc

2.6%

Pharmaceuticals,

United

Kingdom

Housing

Development

Finance

Corp.

Ltd.

2.6%

Diversified

Financial

Services,

India

AIA

Group

Ltd.

2.5%

Insurance,

Hong

Kong

Templeton

Foreign

VIP

Fund

TF-5

Annual

Report

contributors

both

hailed

from

the

energy

sector:

global

oil

majors

BP

and

Shell.

Both

companies

benefited

from

elevated

oil

prices,

strong

cash

flows

and

shareholder-

friendly

capital

allocation

programs.

BP

was

the

single

biggest

contributor

during

the

period.

The

company

is

generating

prolific

cash,

which

management

is

using

to

buy

back

roughly

10%

of

its

outstanding

equity

per

year

at

current

rates,

after

paying

its

dividend

and

with

capital

left

over

to

continue

reducing

balance

sheet

leverage.

Management

delivered

another

exceptional

above-

consensus

earnings

announcement

during

the

reporting

period,

and

we

remain

constructive

on

BP

given

the

above

characteristics

and

the

stock’s

single-digit

price-to-earnings

multiple.

Shell

was

also

buoyed

by

healthy

cash

generation

and

positive

capital

return

plans;

the

firm

reported

strong

profits,

raised

its

dividend

and

announced

plans

to

buy

back

another

$4

billion

of

shares

in

coming

months.

While

commodity

prices

will

fluctuate

in

the

near-term,

we

continue

to

believe

select

energy

producers

appear

significantly

undervalued

given

improved

capital

allocation

within

the

industry

and

attractive

supply-and-demand

fundamentals

for

hydrocarbon

markets

over

the

longer-term.

Stock

selection

in

industrials

also

positively

impacted

performance,

led

by

European

defense

and

aerospace

firms

Dassault

Aviation

(France)

and

BAE

Systems

(U.K.).

Defense

stocks

generally

had

a

good

year

in

light

of

the

escalating

conflict

in

Ukraine

and

simmering

geopolitical

tensions

elsewhere.

More

specifically,

shares

of

Dassault

gained

after

the

firm

reported

a

strong

set

of

first-half

results

and

management

reiterated

full-year

guidance.

We

believe

a

record

order

backlog

in

the

firm’s

defense

business,

combined

with

an

improving

order

backlog

in

its

Falcon

business

jet

segment,

positions

Dassault

well

to

increase

sales

and

profits

over

our

investment

horizon.

Similarly,

shares

of

BAE

Systems

were

buoyed

by

positive

sentiment

and

improving

fundamentals.

A

trading

update

late

in

the

year

confirmed

the

strength

of

BAE’s

order

intake

in

2022,

and

saw

management

reiterate

full-year

earnings

guidance

and

share

buyback

plans.

After

a

period

of

protracted

underperformance,

BAE

has

a

new

management

team

that

has

performed

admirably,

with

above-industry-average

growth

and

ongoing

improvements

in

operating

margins

and

cash

conversion.

While

we

trimmed

the

position

during

the

year

to

realize

profits,

we

continue

to

like

BAE

given

what

we

view

as

its

attractive

valuation,

strong

growth

profile,

good

margin

upside

and

favorable

capital

return

policies.

Other

notable

sector

contributors

included

financials,

consumer

staples

and

information

technology

(IT),

all

of

which

benefited

from

stock

selection.

Financials

had

two

stocks

among

the

Fund’s

top

10

contributors:

Japanese

financial

services

firm

Sumitomo

Mitsui

Financial

Group

and

U.K.-based

emerging

markets

bank

Standard

Chartered.

We

raised

our

weighting

to

banks

last

year

on

expectations

that

rising

interest

rates

and

accelerating

loan

growth

would

strengthen

net

interest

margins,

which

is

playing

out

broadly

as

expected.

Our

exposures,

however,

remain

highly

selective.

We

have

avoided

banks

in

low-returning,

over-regulated

markets

with

elevated

credit

risk,

focusing

instead

on

what

we

believe

to

be

best-in-class

banks

in

attractive

markets

with

shareholder-friendly

management

teams

and

earnings

sensitivity

as

interest

rates

rise.

That

has

led

us

toward

“Main

Street”

banks

where

traditional

lending

will

benefit

from

higher

rates,

and

away

from

banks

with

a

high

mix

in

the

volatile

investment

banking

market.

Geographically,

we

are

finding

more

desirable

opportunities

that

fit

this

profile

in

the

U.K.

and

Asian

markets,

and

fewer

in

the

euro-area.

Meanwhile,

from

the

consumer

staples

sector,

U.K.-based

tobacco

firm

Imperial

Brands

rallied

after

management

reported

better-than-expected

earnings

on

strength

in

its

discount

brand

portfolio.

There

were

no

IT

stocks

among

the

Fund’s

10

biggest

contributors,

though

our

holdings

in

the

challenging

sector

declined

less

than

the

benchmark’s

during

the

year

in

review.

Consumer

discretionary

and

utilities

were

the

only

sectors

that

detracted

from

relative

performance

in

2022.

In

consumer

discretionary,

shares

of

U.K.-based

food

delivery

service

firm

Just

Eat

Takeaway.com

underperformed

during

the

year.

The

stock

was

pressured

by

concerns

about

competition

and

profitability.

However,

we

were

encouraged

by

constructive

news

as

the

period

progressed,

which

included

a

potential

sale

of

Just

Eat’s

challenged

U.S.

business

and

updated

guidance

that

indicated

improving

earnings

trends

and

a

path

toward

profitability

in

2023.

Admittedly,

this

remains

a

“show-me”

story

going

forward.

Investors

will

want

to

see

the

completion

of

strategic

divestitures,

more

consistency

hitting

guidance

targets,

and

an

improving

competitive

environment

that

shifts

from

“growth

at

any

cost”

to

“profitable

growth.”

We

see

numerous

catalysts

that

should

help

Just

Eat

achieve

these

goals,

creating

considerable

upside

potential

from

current

depressed

valuation

levels,

in

our

view.

The

Fund’s

utilities

position

was

led

lower

by

German

power

provider

E.ON.

Shares

declined

during

the

year

on

concerns

about

the

impact

of

a

disruption

in

Russian

natural

gas

supply.

While

we

think

that

E.ON

could

be

a

strong

longer-

term

holding

following

a

period

of

strategic

restructuring

and

deleveraging,

the

implications

of

the

Russia-Ukraine

conflict

for

Germany’s

power

system

change

the

risk-reward

calculus,

in

our

view.

We

liquidated

the

position

in

favor

of

Templeton

Foreign

VIP

Fund

TF-6

Annual

Report

opportunities

we

believe

are

more

attractive

and

with

more

manageable

near-term

risk

profiles.

From

a

regional

standpoint,

the

bulk

of

relative

outperformance

came

from

Europe,

where

the

Fund

benefited

primarily

from

stock

selection,

but

also

a

favorable

overweighted

allocation.

Within

the

region,

the

bulk

of

relative

outperformance

came

from

the

U.K.,

where

the

Fund’s

position

gained

nearly

12%,

compared

to

a

greater

than

6%

loss

for

the

benchmark’s

U.K.

exposures.

Asian

holdings

also

outperformed,

led

by

stock

selection

in

Japan

and

China.

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

December

31,

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

4

Fund

Expenses

Templeton

Foreign

VIP

Fund

TF-7

Annual

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.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

4

$1,000

$1,049.00

$5.38

$1,019.96

$5.30

1.04%

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

184/365

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.

TF-8

Annual

Report

GOF

VIP

P1

P2

P4

P5

12/22

SUPPLEMENT

DATED

DECEMBER

23,

2022

TO

THE

CURRENTLY

EFFECTIVE

PROSPECTUSES

OF

EACH

FUND

LISTED

BELOW

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

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

TEMPLETON

DEVELOPING

MARKETS

VIP

FUND

TEMPLETON

FOREIGN

VIP

FUND

TEMPLETON

GLOBAL

BOND

VIP

FUND

TEMPLETON

GROWTH

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

I.

For

Franklin

Allocation

VIP

Fund,

Franklin

Global

Real

Estate

VIP

Fund,

Franklin

Income

VIP

Fund,

Franklin

Strategic

Income

VIP

Fund

and

Franklin

VolSmart

Allocation

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-

focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-

term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

II.

For

Franklin

Dynatech

VIP

Fund,

Franklin

Growth

and

Income

VIP

Fund,

Franklin

Large

Cap

Growth

VIP

Fund,

Franklin

Rising

Dividends

VIP

Fund,

Franklin

Small-Mid

Cap

Growth

VIP

Fund,

Templeton

Developing

Markets

VIP

Fund,

Templeton

Global

Bond

VIP

Fund,

Templeton

Foreign

VIP

Fund

and

Templeton

Growth

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

TF-9

Annual

Report

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

In

certain

circumstances,

there

may

be

times

when

not

every

investment

is

assessed

for

ESG

factors

and,

when

they

are,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

III.

For

Franklin

U.S.

Government

Securities

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

Social

and

Governance

Considerations

Social

and/or

governance

considerations

are

not

the

only

factors

considered

by

the

investment

manager

and

may

not

be

a

determinative

factor

in

the

investment

manager’s

selection

of

securities

for

the

Fund.

In

addition,

the

investment

manager

may

not

be

able

to

give

such

considerations

meaningful

weight

if

the

availability

of

appropriate

securities

for

the

Fund’s

portfolio

is

limited.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

certain

investments

may

differ

from

that

of

investors,

third

party

service

providers,

such

as

ratings

providers,

or

other

funds.

While

the

investment

manager

views

social

and

governance

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Foreign

VIP

Fund

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TF-10

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$13.90

$13.57

$14.23

$13.01

$15.80

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.30

0.23

0.32

c

0.44

0.29

Net

realized

and

unrealized

gains

(losses)

...........

(1.33)

0.39

(0.54)

1.19

(2.64)

Total

from

investment

operations

....................

(1.03)

0.62

(0.22)

1.63

(2.35)

Less

distributions

from:

Net

investment

income

..........................

(0.43)

(0.29)

(0.44)

(0.27)

(0.44)

Net

realized

gains

.............................

—

—

—

(0.14)

—

Total

distributions

...............................

(0.43)

(0.29)

(0.44)

(0.41)

(0.44)

Net

asset

value,

end

of

year

.......................

$12.44

$13.90

$13.57

$14.23

$13.01

Total

return

d

...................................

(7.39)%

4.44%

(0.92)%

12.84%

(15.27)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.79%

0.87%

0.86%

0.85%

0.83%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.78%

0.86%

0.84%

0.83%

0.81%

Net

investment

income

...........................

2.41%

1.58%

2.68%

c

3.25%

1.96%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$95,961

$114,563

$113,317

$121,948

$114,784

Portfolio

turnover

rate

............................

19.38%

26.13%

40.07%

28.52%

21.38%

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.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Foreign

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

TF-11

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$13.59

$13.28

$13.93

$12.74

$15.47

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.27

0.19

0.28

c

0.40

0.25

Net

realized

and

unrealized

gains

(losses)

...........

(1.31)

0.38

(0.53)

1.16

(2.58)

Total

from

investment

operations

....................

(1.04)

0.57

(0.25)

1.56

(2.33)

Less

distributions

from:

Net

investment

income

..........................

(0.38)

(0.26)

(0.40)

(0.23)

(0.40)

Net

realized

gains

.............................

—

—

—

(0.14)

—

Total

distributions

...............................

(0.38)

(0.26)

(0.40)

(0.37)

(0.40)

Net

asset

value,

end

of

year

.......................

$12.17

$13.59

$13.28

$13.93

$12.74

Total

return

d

...................................

(7.61)%

4.16%

(1.16)%

12.53%

(15.44)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.04%

1.11%

1.11%

1.10%

1.08%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.03%

1.11%

e

1.09%

1.08%

1.06%

Net

investment

income

...........................

2.17%

1.35%

2.42%

c

3.00%

1.71%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$691,189

$831,031

$1,084,789

$1,117,813

$1,060,101

Portfolio

turnover

rate

............................

19.38%

26.13%

40.07%

28.52%

21.38%

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.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Foreign

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TF-12

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$13.87

$13.54

$14.20

$12.96

$15.71

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.26

0.18

0.28

c

0.39

0.24

Net

realized

and

unrealized

gains

(losses)

...........

(1.34)

0.39

(0.55)

1.20

(2.63)

Total

from

investment

operations

....................

(1.08)

0.57

(0.27)

1.59

(2.39)

Less

distributions

from:

Net

investment

income

..........................

(0.37)

(0.24)

(0.39)

(0.21)

(0.36)

Net

realized

gains

.............................

—

—

—

(0.14)

—

Total

distributions

...............................

(0.37)

(0.24)

(0.39)

(0.35)

(0.36)

Net

asset

value,

end

of

year

.......................

$12.42

$13.87

$13.54

$14.20

$12.96

Total

return

d

...................................

(7.75)%

4.10%

(1.34)%

12.49%

(15.54)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.14%

1.21%

1.21%

1.20%

1.18%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.12%

1.21%

e

1.19%

1.18%

1.16%

Net

investment

income

...........................

2.06%

1.22%

2.33%

c

2.90%

1.61%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$76,110

$91,428

$106,224

$113,681

$125,265

Portfolio

turnover

rate

............................

19.38

%

26.13%

40.07%

28.52%

21.38%

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.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments,

December

31,

2022

Templeton

Foreign

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

TF-13

I

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

95.9%

Aerospace

&

Defense

4.0%

BAE

Systems

plc

.....................................

United

Kingdom

947,836

$

9,789,227

Dassault

Aviation

SA

...................................

France

93,730

15,895,221

a

Rolls-Royce

Holdings

plc

...............................

United

Kingdom

7,831,739

8,747,494

34,431,942

Auto

Components

4.7%

Continental

AG

.......................................

Germany

250,136

14,911,054

a

Faurecia

SE

.........................................

France

817,984

12,379,906

Valeo

..............................................

France

731,396

13,067,858

40,358,818

Automobiles

4.6%

Bayerische

Motoren

Werke

AG

...........................

Germany

272,469

24,121,935

Honda

Motor

Co.

Ltd.

..................................

Japan

693,600

15,814,905

39,936,840

Banks

15.4%

ING

Groep

NV

.......................................

Netherlands

1,489,251

18,139,964

Kasikornbank

PCL

....................................

Thailand

3,030,200

12,883,997

b

KB

Financial

Group,

Inc.,

ADR

...........................

South

Korea

475,106

18,367,598

Lloyds

Banking

Group

plc

...............................

United

Kingdom

34,835,484

19,009,411

Shinhan

Financial

Group

Co.

Ltd.

.........................

South

Korea

586,529

16,397,331

Standard

Chartered

plc

.................................

United

Kingdom

3,717,595

27,726,604

Sumitomo

Mitsui

Financial

Group,

Inc.

......................

Japan

510,700

20,539,663

133,064,568

Chemicals

1.4%

c

Covestro

AG,

144A,

Reg

S

..............................

Germany

303,917

11,838,853

Construction

Materials

1.5%

CRH

plc

............................................

Ireland

319,503

12,706,096

Diversified

Financial

Services

3.9%

a

EXOR

NV

...........................................

Netherlands

156,810

11,480,204

Housing

Development

Finance

Corp.

Ltd.

...................

India

692,774

22,020,094

33,500,298

Energy

Equipment

&

Services

2.5%

SBM

Offshore

NV

.....................................

Netherlands

1,373,635

21,610,159

Food

&

Staples

Retailing

1.7%

Sundrug

Co.

Ltd.

......................................

Japan

500,600

14,871,014

Health

Care

Providers

&

Services

1.2%

Fresenius

Medical

Care

AG

&

Co.

KGaA

....................

Germany

307,868

10,055,283

Household

Durables

2.1%

Barratt

Developments

plc

...............................

United

Kingdom

886,698

4,234,958

Persimmon

plc

.......................................

United

Kingdom

281,124

4,121,846

Sony

Group

Corp.

.....................................

Japan

134,100

10,217,816

18,574,620

Industrial

Conglomerates

3.8%

CK

Hutchison

Holdings

Ltd.

..............................

United

Kingdom

2,446,500

14,656,807

Hitachi

Ltd.

..........................................

Japan

369,700

18,595,552

33,252,359

Insurance

4.1%

AIA

Group

Ltd.

.......................................

Hong

Kong

1,957,400

21,616,612

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Templeton

Foreign

VIP

Fund

(continued)

Annual

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

$

13,821,035

35,437,647

Interactive

Media

&

Services

0.3%

a

Baidu,

Inc.,

ADR

......................................

China

23,330

2,668,485

Internet

&

Direct

Marketing

Retail

5.3%

a

Alibaba

Group

Holding

Ltd.

..............................

China

1,688,400

18,526,904

a,c

Just

Eat

Takeaway.com

NV,

144A,

Reg

S

...................

United

Kingdom

343,051

7,301,339

Prosus

NV

..........................................

China

282,962

19,535,758

45,364,001

Machinery

1.3%

Komatsu

Ltd.

........................................

Japan

352,800

7,622,850

Toyota

Industries

Corp.

.................................

Japan

62,400

3,388,762

11,011,612

Media

0.5%

TBS

Holdings,

Inc.

....................................

Japan

371,900

4,313,223

Metals

&

Mining

3.3%

Sumitomo

Metal

Mining

Co.

Ltd.

..........................

Japan

429,200

15,076,428

Wheaton

Precious

Metals

Corp.

..........................

Brazil

341,800

13,353,929

28,430,357

Multiline

Retail

0.9%

Seria

Co.

Ltd.

........................................

Japan

348,800

7,621,178

Multi-Utilities

1.4%

E.ON

SE

............................................

Germany

1,204,124

11,970,852

Oil,

Gas

&

Consumable

Fuels

11.9%

BP

plc

..............................................

United

Kingdom

8,271,167

47,722,177

Galp

Energia

SGPS

SA,

B

..............................

Portugal

953,415

12,861,575

Shell

plc

............................................

Netherlands

1,499,276

42,264,067

102,847,819

Pharmaceuticals

5.2%

AstraZeneca

plc

......................................

United

Kingdom

163,789

22,162,909

Bayer

AG

...........................................

Germany

447,746

23,044,456

45,207,365

Professional

Services

2.0%

Adecco

Group

AG

.....................................

Switzerland

517,678

17,028,024

Semiconductors

&

Semiconductor

Equipment

6.8%

Infineon

Technologies

AG

...............................

Germany

520,371

15,814,338

NXP

Semiconductors

NV

...............................

China

103,001

16,277,248

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

...............

Taiwan

1,864,000

27,075,700

59,167,286

Technology

Hardware,

Storage

&

Peripherals

3.8%

Samsung

Electronics

Co.

Ltd.

............................

South

Korea

741,212

32,671,006

Tobacco

2.3%

Imperial

Brands

plc

....................................

United

Kingdom

798,682

19,895,255

Total

Common

Stocks

(Cost

$785,577,791)

.....................................

827,834,960

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Templeton

Foreign

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

TF-15

See

Abbreviations

on

page

TF-

27

.

Short

Term

Investments

5.3%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

4.1%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

....

United

States

35,603,799

$

35,603,799

Total

Money

Market

Funds

(Cost

$35,603,799)

..................................

35,603,799

a

a

a

f

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

1.2%

Money

Market

Funds

1.2%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

....

United

States

10,342,950

10,342,950

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$10,342,950)

...........................................................

10,342,950

Total

Short

Term

Investments

(Cost

$45,946,749

)

................................

45,946,749

a

Total

Investments

(Cost

$831,524,540)

101.2%

..................................

$873,781,709

Other

Assets,

less

Liabilities

(1.2)%

...........................................

(10,520,908)

Net

Assets

100.0%

...........................................................

$863,260,801

a

Non-income

producing.

b

A

portion

or

all

of

the

security

is

on

loan

at

December

31,

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

December

31,

2022,

the

aggregate

value

of

these

securities

was

$19,140,192,

representing

2.2%

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

December

31,

2022

Annual

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

...................................................................

$785,577,791

Cost

-

Non-controlled

affiliates

(Not

e

3e)

........................................................

45,946,749

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$10,476,860)

.................................

$827,834,960

Value

-

Non-controlled

affiliates

(Not

e

3e)

.......................................................

45,946,749

Foreign

currency,

at

value

(cost

$2)

.............................................................

2

Receivables:

Capital

shares

sold

........................................................................

55,440

Dividends

...............................................................................

3,211,473

Total

assets

..........................................................................

877,048,624

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

1,489,361

Management

fees

.........................................................................

575,786

Distribution

fees

..........................................................................

171,985

Trustees'

fees

and

expenses

.................................................................

1,148

Payable

upon

return

of

securities

loaned

(Note

1

c

)

..................................................

10,342,950

Deferred

tax

...............................................................................

956,889

Accrued

expenses

and

other

liabilities

...........................................................

249,704

Total

liabilities

.........................................................................

13,787,823

Net

assets,

at

value

.................................................................

$863,260,801

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$823,661,982

Total

distributable

earnings

(losses)

.............................................................

39,598,819

Net

assets,

at

value

.................................................................

$863,260,801

Templeton

Foreign

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$95,961,137

Shares

outstanding

........................................................................

7,716,653

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.44

Class

2:

Net

assets,

at

value

.......................................................................

$691,189,225

Shares

outstanding

........................................................................

56,802,572

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.17

Class

4:

Net

assets,

at

value

.......................................................................

$76,110,439

Shares

outstanding

........................................................................

6,127,417

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.42

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2022

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

TF-17

Templeton

Foreign

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$2,660,921)

Unaffiliated

issuers

........................................................................

$26,201,394

Non-controlled

affiliates

(Not

e

3e)

.............................................................

580,771

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

143,412

Non-controlled

affiliates

(Note

3

e

)

.............................................................

83,781

Other

income

(Note

1

d

)

......................................................................

1,917,973

Total

investment

income

...................................................................

28,927,331

Expenses:

Management

fees

(Note

3

a

)

...................................................................

7,282,249

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

1,817,867

    Class

4

................................................................................

280,377

Custodian

fees

.............................................................................

62,539

Reports

to

shareholders

fees

..................................................................

(325,120)

Professional

fees

...........................................................................

113,846

Trustees'

fees

and

expenses

..................................................................

11,215

Other

....................................................................................

47,529

Total

expenses

.........................................................................

9,290,502

Expenses

waived/paid

by

affiliates

(Not

e

3e)

...................................................

(161,027)

Net

expenses

.........................................................................

9,129,475

Net

investment

income

................................................................

19,797,856

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

31,792,258

Foreign

currency

transactions

................................................................

(1,389,760)

Net

realized

gain

(loss)

..................................................................

30,402,498

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(126,742,439)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

403,877

Change

in

deferred

taxes

on

unrealized

appreciation

...............................................

(25,372)

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(126,363,934)

Net

realized

and

unrealized

gain

(loss)

............................................................

(95,961,436)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(76,163,580)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TF-18

Templeton

Foreign

VIP

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$19,797,856

$17,241,459

Net

realized

gain

(loss)

.................................................

30,402,498

91,630,813

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(126,363,934)

(43,910,316)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(76,163,580)

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

.............................................................

(7,175,125)

(1,488,235)

Class

2

.............................................................

(56,332,575)

(289,098,586)

Class

4

.............................................................

(6,447,529)

(17,919,519)

Total

capital

share

transactions

............................................

(69,955,229)

(308,506,340)

Net

increase

(decrease)

in

net

assets

...................................

(173,760,505)

(267,308,899)

Net

assets:

Beginning

of

year

.......................................................

1,037,021,306

1,304,330,205

End

of

year

...........................................................

$863,260,801

$1,037,021,306

Franklin

Templeton

Variable

Insurance

Products

Trust

TF-19

Annual

Report

Notes

to

Financial

Statements

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.

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

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

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

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,

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

December

31,

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

TF-20

Annual

Report

Templeton

Foreign

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

December

31,

2022,

the

Fund

held

$432,782

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

TF-21

Annual

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

December

31,

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

TF-22

Annual

Report

Templeton

Foreign

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

December

31,

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:

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

253,851

$3,273,959

442,846

$6,305,829

Shares

issued

in

reinvestment

of

distributions

..........

269,293

3,306,920

158,422

2,381,077

Shares

redeemed

...............................

(1,050,471)

(13,756,004)

(708,094)

(10,175,141)

Net

increase

(decrease)

..........................

(527,327)

$(7,175,125)

(106,826)

$(1,488,235)

Class

2

Shares:

Shares

sold

...................................

4,481,562

$54,164,598

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

...............................

(10,651,921)

(132,526,136)

(27,124,178)

(382,517,561)

Net

increase

(decrease)

..........................

(4,340,711)

$(56,332,575)

(20,534,359)

$(289,098,586)

Class

4

Shares:

Shares

sold

...................................

624,717

$7,436,044

677,401

$9,654,639

Shares

issued

in

reinvestment

of

distributions

..........

187,592

2,305,506

110,093

1,653,598

Shares

redeemed

...............................

(1,277,852)

(16,189,079)

(2,037,261)

(29,227,756)

Net

increase

(decrease)

..........................

(465,543)

$(6,447,529)

(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

TF-23

Annual

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

year

ended

December

31,

2022,

the

gross

effective

investment

management

fee

rate

was 0.803%

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

year

ended

December

31,

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

TF-24

Annual

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,

2022,

the

capital

loss

carryforwards

were

as

follows:

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

During

the

year

ended

December

31,

2022,

the

Fund

utilized

$31,799,014

of

capital

loss

carryforwards.

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021,

was

as

follows:

At

December

31,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation)

and

undistributed

ordinary

income

for

income

tax

purposes

were

as

follows:

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Templeton

Foreign

VIP

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

$

50,936,475

$

183,616,106

$

(198,948,782)

$

—

$

—

$

35,603,799

35,603,799

$

580,771

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

$192,332

$237,178,901

$(227,028,283)

$—

$—

$10,342,950

10,342,950

$83,781

Total

Affiliated

Securities

...

$51,128,807

$420,795,007

$(425,977,065)

$—

$—

$45,946,749

$664,552

Capital

loss

carryforwards

not

subject

to

expiration:

Long

term

................................................................................

17,565,020

2022

2021

Distributions

paid

from:

Ordinary

income

..........................................................

$27,641,696

$23,764,515

Cost

of

investments

..........................................................................

$841,692,010

Unrealized

appreciation

........................................................................

$174,692,897

Unrealized

depreciation

........................................................................

(142,603,198)

Net

unrealized

appreciation

(depreciation)

..........................................................

$32,089,699

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$26,048,766

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TF-25

Annual

Report

Templeton

Foreign

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

treatment

of

wash

sales,

foreign

currency

transactions

and

passive

foreign

investment

company

shares.

5.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2022,

aggregated

$166,645,653

and

$215,484,604,

respectively.

At

December

31,

2022,

in

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received

$10,342,950

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

matured

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.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

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,

4.

Income

Taxes

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TF-26

Annual

Report

Templeton

Foreign

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

year

ended

December

31,

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

December

31,

2022,

in

valuing

the

Fund's

assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Templeton

Foreign

VIP

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

—

$

34,431,942

$

—

$

34,431,942

Auto

Components

......................

—

40,358,818

—

40,358,818

Automobiles

..........................

—

39,936,840

—

39,936,840

Banks

...............................

18,367,598

114,696,970

—

133,064,568

Chemicals

...........................

—

11,838,853

—

11,838,853

Construction

Materials

..................

—

12,706,096

—

12,706,096

Diversified

Financial

Services

.............

—

33,500,298

—

33,500,298

Energy

Equipment

&

Services

.............

—

21,610,159

—

21,610,159

Food

&

Staples

Retailing

.................

—

14,871,014

—

14,871,014

Health

Care

Providers

&

Services

..........

—

10,055,283

—

10,055,283

Household

Durables

....................

—

18,574,620

—

18,574,620

Industrial

Conglomerates

................

—

33,252,359

—

33,252,359

Insurance

............................

—

35,437,647

—

35,437,647

Interactive

Media

&

Services

..............

2,668,485

—

—

2,668,485

Internet

&

Direct

Marketing

Retail

..........

—

45,364,001

—

45,364,001

Machinery

............................

—

11,011,612

—

11,011,612

Media

...............................

—

4,313,223

—

4,313,223

Metals

&

Mining

.......................

13,353,929

15,076,428

—

28,430,357

Multiline

Retail

........................

—

7,621,178

—

7,621,178

Multi-Utilities

..........................

—

11,970,852

—

11,970,852

Oil,

Gas

&

Consumable

Fuels

.............

—

102,847,819

—

102,847,819

Pharmaceuticals

.......................

—

45,207,365

—

45,207,365

Professional

Services

...................

—

17,028,024

—

17,028,024

Semiconductors

&

Semiconductor

Equipment

.

16,277,248

42,890,038

—

59,167,286

Technology

Hardware,

Storage

&

Peripherals

.

—

32,671,006

—

32,671,006

Tobacco

.............................

—

19,895,255

—

19,895,255

Short

Term

Investments

...................

45,946,749

—

—

45,946,749

Total

Investments

in

Securities

...........

$96,614,009

$777,167,700

a

$—

$873,781,709

9.

Credit

Facility

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TF-27

Annual

Report

Templeton

Foreign

VIP

Fund

(continued)

11.

New

Accounting

Pronouncements

In June

2022,

the

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

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

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

other

than

those

already

disclosed

in

the

financial

statements.

Abbreviations

a

Includes

foreign

securities

valued

at

$777,167,700,

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

10.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

TF-28

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Templeton

Variable

Insurance

Products

Trust

and

Shareholders

of

Templeton

Foreign

VIP

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Templeton

Foreign

VIP

Fund

(one

of

the

funds

constituting

Franklin

Templeton

Variable

Insurance

Products

Trust,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2022,

the

related

statement

of

operations

for

the

year

ended

December

31,

2022,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2022,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

custodian

and

transfer

agent.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Templeton

Variable

Insurance

Products

Trust

Tax

Information

(unaudited)

TF-29

Annual

Report

Templeton

Foreign

VIP

Fund

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

Under

Section

853

of

the

Internal

Revenue

Code,

the

Fund

intends

to

elect

to

pass

through

to

its

shareholders

the

following

amounts,

or

amounts

as

finally

determined,

of

foreign

taxes

paid

and

foreign

source

income

earned

by

the

Fund

during

the

fiscal

year

ended

December

31,

2022:

Amount

Reported

Foreign

Taxes

Paid

$2,232,120

Foreign

Source

Income

Earned

$35,460,512

TGB-1

Annual

Report

Templeton

Global

Bond

VIP

Fund

This

annual

report

for

Templeton

Global

Bond

VIP

Fund

covers

the

fiscal

year

ended

December

31,

202

2

.

Class

4

Performance

Summary

as

of

December

31,

202

2

Average

annual

total

return

of

Class

4

shares*

represents

the

average

annual

change

in

value,

assuming

reinvestment

of

dividends

and

capital

gains.

Average

returns

smooth

out

variations

in

returns,

which

can

be

significant;

they

are

not

the

same

as

year-by-year

results.

*Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

and

are

sourced

from

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/23

without

Board

consent.

Performance

reflects

the

Fund’s

Class

4

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.

Share

Class

Average

Annual

Total

Return

–

4

1-Year

-5.13%

5-Year

-2.41%

10-Year

-0.89%

TGB-2

Annual

Report

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

(12/31/12–

12/31/2

2

)

The

graph

below

shows

the

change

in

value

of

a

hypothetical

$10,000

investment

in

the

Fund

over

the

indicated

period

and

includes

reinvestment

of

any

income

or

distributions.

The

Fund’s

performance*

is

compared

to

the

performance

of

the

JP

Morgan

(JPM)

Global

Government

Bond

Index

(GGBI)

and

FTSE

World

Government

Bond

Index

(WGBI).

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Important

Notes

to

Performance

Information

preceding

the

Fund

Summaries.

**Source:

FactSet.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

TGB-3

Annual

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.

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

on

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

markets

for

particular

securities

or

types

of

securities

are

or

may

become

relatively

illiquid.

Reduced

liquidity

will

have

an

adverse

impact

on

the

security's

value

and

on

the

Fund's

ability

to

sell

such

securities

when

necessary

to

meet

the

Fund's

liquidity

needs

or

in

response

to

a

specific

market

event.

Foreign

securities

involve

special

risks,

including

currency

fluctuations

(which

may

be

significant

over

the

short

term)

and

economic

and

political

uncertainties;

investments

in

emerging

markets

involve

heightened

risks

related

to

the

same

factors.

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

government

entity

may

be

unwilling

or

unable

to

pay

interest

and

repay

principal

on

its

sovereign

debt,

or

otherwise

meet

its

obligations

when

due.

Investments

in

lower-rated

bonds

include

higher

risk

of

default

and

loss

of

principal.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

As

the

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

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

one-year

total

return

in

the

Performance

Summary.

For

comparison,

the

J.P.

Morgan

Global

Government

Bond

Index

posted

a

-17.31%

total

return,

and

the

FTSE

World

Government

Bond

Index

posted

a

-18.26%

total

return

for

the

same

period.

1

Economic

and

Market

Overview

Over

the

12-month

period

ending

December

31,

2022,

as

prospects

were

improving

for

the

global

economy,

which

was

emerging

from

the

worst

of

the

pandemic

slowdown,

Russia

invaded

Ukraine,

precipitating

a

war,

in

late

February

2022.

The

dominant

themes

of

the

year

under

review—high

inflation,

tighter

monetary

policy,

rising

bond

yields,

a

stronger

U.S.

dollar

(USD),

and

weakening

global

growth—were

thus

in

the

shadow

of

(and

in

some

instances

exacerbated

by)

the

war.

Inflation

rates

pushed

higher

over

the

year,

with

energy

and

food

prices,

after

Russia’s

invasion

of

Ukraine,

a

significant

impetus.

Inflation

across

many

countries

showed

similar

patterns,

whereby

the

upcycle

was

spurred

by

these

factors

and

then

spread

wider

into

core

measures,

often

reaching

a

multi-decade

or

multi-year

high

along

the

way,

while

headline

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-4

Annual

Report

inflation

started

to

peak

and

recede

nearer

year-end

as

the

effects

of

the

food

and

energy

price

spikes

dissipated.

Sovereign

bond

yields

rose

sharply

over

most

of

the

year

on

the

combination

of

the

withdrawal

of

direct

market

support

from

central

banks,

rising

inflation,

rising

policy

rates,

and

increasingly

hawkish

central

bank

commentary.

U.S.

Treasury

(UST)

and

other

bond

yields

surged

to

multi-year

highs

during

the

period,

but

a

number

of

markets

saw

bond

yields

end

the

year

below

their

peaks.

The

USD

gained

significantly

against

almost

all

other

currencies

in

2022,

supported

by

hawkish

U.S.

Federal

Reserve

(Fed)

policy,

and

growth

differentials

were

in

favor

of

the

U.S.

(as

U.S.

growth

benefited

from

post-pandemic

reopening/normalization),

while

continued

COVID-19

lockdowns

disadvantaged

Asian

growth

and

the

war

affected

growth

in

Europe,

amid

continued

geopolitical

concerns.

As

some

of

these

factors

started

to

moderate

towards

year-end,

the

USD

slid

off

its

highs

of

2022,

while

still

ending

the

year

8.2%

stronger,

according

to

the

U.S.

Dollar

Index

(DXY),

than

where

it

began.

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

what

we

believe

to

be

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

(less

so

later

in

the

year),

with

a

preference

for

the

higher

yields

available

in

select

emerging

market

local-currency

bonds,

notably

including

Indonesia,

India,

Thailand,

Brazil,

and

Colombia.

At

the

beginning

of

the

period,

the

Fund

held

overweight

positions

in

specific

currencies

against

the

USD

and

the

euro.

In

Asia,

we

held

notable

exposures

to

the

South

Korean

won,

Chinese

yuan,

Indonesian

rupiah,

Indian

rupee

and

Singapore

dollar,

while

holding

an

underweight

in

the

Japanese

yen.

We

closed

our

exposure

to

the

Japanese

yen

in

March

2022,

primarily

due

to

expected

depreciation

pressures

on

the

currency

from

widening

rate

differentials

with

the

U.S.

During

the

third

quarter

2022,

after

it

had

subsequently

weakened

significantly,

we

re-established

a

position

in

the

Japanese

yen,

and

reduced

exposure

in

the

Chinese

yuan,

Indonesian

rupiah

and

Singapore

dollar.

We

added

to

the

yen

position

in

the

fourth

quarter

2022.

In

April

2022,

we

had

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

support

the

currency.

In

EMEA

(Europe,

Middle

East

and

Africa),

the

Fund

initially

held

overweight

positions

in

the

Norwegian

krone

and

the

Swedish

krona

against

the

euro.

We

added

a

position

in

the

British

pound

against

the

euro

in

April

2022.

We

closed

the

Swedish

krona

position

in

the

third

quarter

2022

and

exited

our

British

pound

position

in

the

fourth

quarter

2022.

We

reduced

our

short

in

the

euro

during

the

third

and

fourth

quarters,

given

that

the

currency

had

already

weakened

significantly.

We

also

reduced

our

Ghanaian

cedi

exposure

in

the

fourth

quarter

2022.

In

the

Americas,

we

started

the

period

holding

long

exposures

to

the

Brazilian

real,

Colombian

peso,

Chilean

peso

and

Argentine

peso

against

the

USD,

and

long

exposure

to

the

Canadian

dollar

against

the

euro.

During

the

fourth

quarter

2022,

we

closed

our

position

in

the

Argentine

peso.

During

the

third

quarter

2022,

we

reduced

our

bond

exposure

in

Mexico

but

took

on

a

new

position

during

the

fourth

quarter.

We

added

to

and

extended

duration

in

our

Colombian

peso

position,

and

also

extended

duration

in

Brazil

during

the

fourth

quarter

2022.

During

the

period,

we

used

currency

forwards

and

currency

options

to

actively

manage

currency

exposures,

as

well

as

using

interest-rate

swaps

to

manage

duration

risk.

Over

the

period,

the

Fund’s

negative

absolute

performance

was

primarily

due

to

currency

positions.

Interest-rate

strategies

and

sovereign

credit

exposures

had

a

neutral

Geographic

Composition

12/31/22

%

of

Total

Net

Assets

Asia

30.0%

North

America

22.5%

Latin

America

&

Caribbean

9.1%

Europe

4.2%

Other

0.8%

Short-Term

Investments

&

Other

Net

Assets

33.4%

Templeton

Global

Bond

VIP

Fund

TGB-5

Annual

Report

effect.

Among

currencies,

positions

in

the

South

Korean

won,

Indonesian

rupiah,

Chinese

yuan,

Indian

rupee,

Colombian

peso,

Argentine

peso

and

Ghanaian

cedi

detracted

from

absolute

performance.

However,

the

Fund’s

position

in

the

euro

(net

negative

for

much

of

the

period)

and

tactical

positioning

in

the

Japanese

yen

were

positive

contributors

to

absolute

results.

The

Fund’s

position

in

USTs

detracted

from

absolute

results,

while

its

duration

exposures

in

Argentina

and

Brazil

contributed.

On

a

relative

basis,

during

the

period

under

review,

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.

The

Fund

maintained

duration

exposures

primarily

in

select

emerging

markets.

A

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

exposures

in

Argentina

and

Brazil

also

contributed

to

relative

results.

Among

currencies,

tactical

positioning

in

the

Japanese

yen

contributed

to

relative

performance,

as

did

the

Fund’s

underweighted

exposure

to

the

euro

and

its

overweighted

position

in

the

Brazilian

real.

However,

overweighted

positions

in

the

Colombian

peso,

Argentine

peso,

Indonesian

rupiah,

South

Korean

won,

Chinese

yuan,

Indian

rupee

and

Ghanaian

cedi

detracted

from

relative

results.

Thank

you

for

your

participation

in

Templeton

Global

Bond

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

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

4

Fund

Expenses

Templeton

Global

Bond

VIP

Fund

TGB-6

Annual

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

184/365

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

7/1/22

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

4

$1,000

$1,010.30

$4.14

$1,021.09

$4.16

0.82%

TGB-7

Annual

Report

GOF

VIP

P1

P2

P4

P5

12/22

SUPPLEMENT

DATED

DECEMBER

23,

2022

TO

THE

CURRENTLY

EFFECTIVE

PROSPECTUSES

OF

EACH

FUND

LISTED

BELOW

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

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

TEMPLETON

DEVELOPING

MARKETS

VIP

FUND

TEMPLETON

FOREIGN

VIP

FUND

TEMPLETON

GLOBAL

BOND

VIP

FUND

TEMPLETON

GROWTH

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

I.

For

Franklin

Allocation

VIP

Fund,

Franklin

Global

Real

Estate

VIP

Fund,

Franklin

Income

VIP

Fund,

Franklin

Strategic

Income

VIP

Fund

and

Franklin

VolSmart

Allocation

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-

focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-

term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

II.

For

Franklin

Dynatech

VIP

Fund,

Franklin

Growth

and

Income

VIP

Fund,

Franklin

Large

Cap

Growth

VIP

Fund,

Franklin

Rising

Dividends

VIP

Fund,

Franklin

Small-Mid

Cap

Growth

VIP

Fund,

Templeton

Developing

Markets

VIP

Fund,

Templeton

Global

Bond

VIP

Fund,

Templeton

Foreign

VIP

Fund

and

Templeton

Growth

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

TGB-8

Annual

Report

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

In

certain

circumstances,

there

may

be

times

when

not

every

investment

is

assessed

for

ESG

factors

and,

when

they

are,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

III.

For

Franklin

U.S.

Government

Securities

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

Social

and

Governance

Considerations

Social

and/or

governance

considerations

are

not

the

only

factors

considered

by

the

investment

manager

and

may

not

be

a

determinative

factor

in

the

investment

manager’s

selection

of

securities

for

the

Fund.

In

addition,

the

investment

manager

may

not

be

able

to

give

such

considerations

meaningful

weight

if

the

availability

of

appropriate

securities

for

the

Fund’s

portfolio

is

limited.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

certain

investments

may

differ

from

that

of

investors,

third

party

service

providers,

such

as

ratings

providers,

or

other

funds.

While

the

investment

manager

views

social

and

governance

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Global

Bond

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

TGB-9

e

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$13.82

$14.49

$16.63

$17.54

$17.17

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.47

0.48

0.52

0.89

0.88

Net

realized

and

unrealized

gains

(losses)

...........

(1.14)

(1.15)

(1.31)

(0.54)

(0.51)

Total

from

investment

operations

....................

(0.67)

(0.67)

(0.79)

0.35

0.37

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(1.35)

(1.26)

—

Tax

return

of

capital

............................

—

—

(—)

c

—

—

Total

distributions

...............................

—

—

(1.35)

(1.26)

—

Net

asset

value,

end

of

year

.......................

$13.15

$13.82

$14.49

$16.63

$17.54

Total

return

d

...................................

(4.85)%

(4.62)%

(4.73)%

1.89%

2.15%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.50%

0.51%

0.51%

0.53%

0.56%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.48%

0.50%

0.46%

0.44%

0.47%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.48%

e

0.50%

e

0.45%

0.42%

0.45%

Net

investment

income

...........................

3.56%

3.42%

3.43%

5.22%

5.09%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$153,423

$204,318

$224,704

$322,794

$285,046

Portfolio

turnover

rate

............................

14.78%

27.65%

52.84%

22.58%

18.22%

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.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Global

Bond

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TGB-10

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$13.13

$13.82

$15.91

$16.83

$16.51

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.41

0.43

0.46

0.82

0.81

Net

realized

and

unrealized

gains

(losses)

...........

(1.07)

(1.12)

(1.24)

(0.53)

(0.49)

Total

from

investment

operations

....................

(0.66)

(0.69)

(0.78)

0.29

0.32

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(1.31)

(1.21)

—

Tax

return

of

capital

............................

—

—

(—)

c

—

—

Total

distributions

...............................

—

—

(1.31)

(1.21)

—

Net

asset

value,

end

of

year

.......................

$12.47

$13.13

$13.82

$15.91

$16.83

Total

return

d

...................................

(4.95)%

(4.99)%

(4.92)%

1.63%

1.94%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.75%

0.76%

0.75%

0.78%

0.81%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.73%

0.75%

0.71%

0.69%

0.72%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.73%

e

0.75%

e

0.70%

0.67%

0.70%

Net

investment

income

...........................

3.31%

3.17%

3.16%

4.97%

4.84%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,527,997

$1,859,619

$2,022,487

$2,389,610

$2,544,900

Portfolio

turnover

rate

............................

14.78%

27.65%

52.84%

22.58%

18.22%

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.

e

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.

Annual

Report

TGB-11

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$13.46

$14.17

$16.27

$17.19

$16.88

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.41

0.42

0.46

0.82

0.81

Net

realized

and

unrealized

gains

(losses)

...........

(1.10)

(1.13)

(1.27)

(0.55)

(0.50)

Total

from

investment

operations

....................

(0.69)

(0.71)

(0.81)

0.27

0.31

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

—

—

(1.29)

(1.19)

—

Tax

return

of

capital

............................

—

—

(—)

c

—

—

Total

distributions

...............................

—

—

(1.29)

(1.19)

—

Net

asset

value,

end

of

year

.......................

$12.77

$13.46

$14.17

$16.27

$17.19

Total

return

d

...................................

(5.13)%

(5.01)%

(5.00)%

1.48%

1.84%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.85%

0.86%

0.85%

0.88%

0.91%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.83%

0.85%

0.81%

0.79%

0.82%

Expenses

net

of

waiver

and

payments

by

affiliates

and

expense

reduction

...............................

0.83%

e

0.85%

e

0.80%

0.77%

0.80%

Net

investment

income

...........................

3.21%

3.07%

3.06%

4.87%

4.74%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$55,577

$71,454

$76,771

$90,272

$94,312

Portfolio

turnover

rate

............................

14.78%

27.65%

52.84%

22.58%

18.22%

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.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments,

December

31,

2022

Templeton

Global

Bond

VIP

Fund

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TGB-12

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

44.1%

Brazil

2.9%

Brazil

Notas

do

Tesouro

Nacional

,

10%,

1/01/27

..................

233,800,000

BRL

$

40,947,433

10%,

1/01/31

..................

51,840,000

BRL

8,592,535

49,539,968

Colombia

4.5%

Colombia

Government

Bond

,

Senior

Bond,

4.375%,

3/21/23

.....

362,000,000

COP

73,365

Senior

Bond,

9.85%,

6/28/27

......

576,000,000

COP

105,220

Colombia

Titulos

de

Tesoreria

,

B,

10%,

7/24/24

................

60,059,300,000

COP

12,071,978

B,

6.25%,

11/26/25

..............

82,468,000,000

COP

14,578,675

B,

7.5%,

8/26/26

...............

134,196,600,000

COP

23,685,787

B,

5.75%,

11/03/27

..............

55,276,000,000

COP

8,648,731

B,

6%,

4/28/28

.................

49,809,600,000

COP

7,689,268

B,

7.75%,

9/18/30

..............

37,868,000,000

COP

5,889,108

a

B,

7%,

3/26/31

.................

17,210,500,000

COP

2,514,466

B,

7%,

6/30/32

.................

24,227,000,000

COP

3,409,655

B,

6.25%,

7/09/36

..............

2,311,000,000

COP

275,676

78,941,929

Ghana

0.8%

Ghana

Government

Bond

,

16.5%,

2/06/23

................

7,700,000

GHS

760,250

19%,

9/18/23

..................

150,000

GHS

13,280

18.85%,

9/28/23

................

21,190,000

GHS

1,864,950

19.25%,

11/27/23

...............

1,350,000

GHS

115,822

19.25%,

12/18/23

...............

110,000

GHS

9,350

17.7%,

3/18/24

................

1,080,000

GHS

86,271

19.75%,

3/25/24

................

26,840,000

GHS

2,184,724

18.3%,

3/02/26

................

690,000

GHS

40,676

19%,

11/02/26

.................

80,510,000

GHS

4,490,243

19.75%,

3/15/32

................

80,510,000

GHS

3,414,607

Senior

Note,

18.5%,

1/02/23

......

70,000

GHS

7,007

Senior

Note,

20.75%,

1/16/23

......

120,000

GHS

12,007

Senior

Note,

17.6%,

2/20/23

......

3,310,000

GHS

324,564

Senior

Note,

17.25%,

7/31/23

......

210,000

GHS

18,897

13,342,648

India

4.3%

India

Government

Bond

,

8.83%,

11/25/23

................

858,100,000

INR

10,555,071

8.2%,

9/24/25

.................

297,100,000

INR

3,680,335

7.59%,

1/11/26

.................

1,629,000,000

INR

19,925,323

7.27%,

4/08/26

................

214,000,000

INR

2,594,448

Senior

Bond,

5.77%,

8/03/30

......

526,000,000

INR

5,795,987

Senior

Note,

5.22%,

6/15/25

......

313,000,000

INR

3,630,285

Senior

Note,

5.15%,

11/09/25

......

2,459,900,000

INR

28,236,475

74,417,924

Indonesia

8.0%

Indonesia

Government

Bond

,

FR40,

11%,

9/15/25

.............

46,856,000,000

IDR

3,358,647

FR46,

9.5%,

7/15/23

............

113,970,000,000

IDR

7,489,828

FR81,

6.5%,

6/15/25

............

599,166,000,000

IDR

38,872,128

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Templeton

Global

Bond

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

TGB-13

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Indonesia

(continued)

Indonesia

Government

Bond,

(continued)

FR86,

5.5%,

4/15/26

............

1,421,313,000,000

IDR

$

89,565,316

139,285,919

Mexico

1.7%

Mexican

Bonos

Desarr

Fixed

Rate

,

M,

7.5%,

5/26/33

...............

502,500,000

MXN

23,066,734

M

20,

Senior

Bond,

8.5%,

5/31/29

..

114,900,000

MXN

5,738,706

28,805,440

Norway

4.2%

b

Norway

Government

Bond

,

Senior

Bond,

144A,

Reg

S,

2%,

5/24/23

......................

315,007,000

NOK

32,013,469

Senior

Bond,

144A,

Reg

S,

3%,

3/14/24

......................

265,052,000

NOK

27,006,155

Senior

Bond,

144A,

Reg

S,

1.75%,

3/13/25

......................

89,312,000

NOK

8,861,384

Senior

Bond,

144A,

Reg

S,

1.5%,

2/19/26

......................

52,969,000

NOK

5,158,163

73,039,171

South

Korea

14.8%

Korea

Monetary

Stabilization

Bond,

Senior

Note,

0.905%,

4/02/23

......

59,690,000,000

KRW

47,099,971

Korea

Treasury

Bonds

,

2.25%,

9/10/23

................

88,312,000,000

KRW

69,427,589

0.875%,

12/10/23

...............

22,287,000,000

KRW

17,229,270

1.875%,

3/10/24

................

33,811,000,000

KRW

26,279,369

1.375%,

9/10/24

................

75,881,910,000

KRW

57,953,174

3%,

9/10/24

...................

18,500,000,000

KRW

14,515,107

Senior

Note,

1.75%,

9/10/26

......

34,133,000,000

KRW

25,232,412

257,736,892

Thailand

2.9%

Thailand

Government

Bond

,

0.75%,

9/17/24

................

745,020,000

THB

21,262,729

1%,

6/17/27

...................

570,140,000

THB

15,818,331

Senior

Note,

0.66%,

11/22/23

......

481,230,000

THB

13,820,091

50,901,151

Total

Foreign

Government

and

Agency

Securities

(Cost

$914,798,445)

............

766,011,042

U.S.

Government

and

Agency

Securities

22.5%

United

States

22.5%

U.S.

Treasury

Notes

,

1.5%,

10/31/24

................

49,660,000

47,059,639

1.5%,

11/30/24

.................

50,420,000

47,719,773

1.75%,

12/31/24

................

22,672,000

21,524,230

2%,

2/15/25

...................

49,140,000

46,767,459

2.125%,

5/15/25

................

58,760,000

55,856,430

2.875%,

5/31/25

................

76,680,000

74,148,961

2.625%,

12/31/25

...............

44,803,000

42,853,370

1.625%,

2/15/26

................

24,220,000

22,407,284

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Templeton

Global

Bond

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TGB-14

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

U.S.

Government

and

Agency

Securities

(continued)

United

States

(continued)

U.S.

Treasury

Notes,

(continued)

2.125%,

5/31/26

................

11,063,000

$

10,354,277

1.625%,

10/31/26

...............

24,220,000

22,113,049

390,804,472

Total

U.S.

Government

and

Agency

Securities

(Cost

$419,788,367)

................

390,804,472

Total

Long

Term

Investments

(Cost

$1,334,586,812)

.............................

1,156,815,514

Short

Term

Investments

31.1%

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

22.2%

Brazil

6.9%

c

Brazil

Letras

do

Tesouro

Nacional

,

1/01/24

......................

58,010,000

BRL

9,686,791

7/01/24

......................

190,140,000

BRL

30,000,223

1/01/25

......................

539,800,000

BRL

80,429,114

120,116,128

Japan

11.1%

c

Japan

Treasury

Bills

,

1/25/23

......................

3,079,000,000

JPY

23,455,396

2/27/23

......................

7,158,100,000

JPY

54,538,859

5/10/23

......................

7,176,000,000

JPY

54,689,689

9/20/23

......................

7,869,100,000

JPY

59,981,695

192,665,639

Singapore

4.2%

c

Singapore

Treasury

Bills

,

1/24/23

......................

45,410,000

SGD

33,817,021

5/30/23

......................

52,270,000

SGD

38,345,545

72,162,566

Total

Foreign

Government

and

Agency

Securities

(Cost

$378,786,097)

............

384,944,333

Shares

Money

Market

Funds

8.9%

United

States

8.9%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

.........

154,512,860

154,512,860

Total

Money

Market

Funds

(Cost

$154,512,860)

.................................

154,512,860

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$533,298,957

)

...............................

539,457,193

a

a

a

Total

Investments

(Cost

$1,867,885,769)

97.7%

..................................

$1,696,272,707

Other

Assets,

less

Liabilities

2.3%

.............................................

40,724,716

Net

Assets

100.0%

...........................................................

$1,736,997,423

a

a

a

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Templeton

Global

Bond

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

TGB-15

At

December

31,

2022,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(d)

. 

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1

(c)

.

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

December

31,

2022,

the

aggregate

value

of

these

securities

was

$73,039,171,

representing

4.2%

of

net

assets.

c

The

security

was

issued

on

a

discount

basis

with

no

stated

coupon

rate.

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.

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

Chinese

Yuan

......

CITI

Buy

125,329,450

18,699,469

1/11/23

$

—

$

(579,550)

Euro

.............

HSBK

Buy

10,540,000

10,969,326

1/11/23

318,689

—

Euro

.............

HSBK

Sell

10,540,000

10,367,249

1/11/23

—

(920,767)

Indian

Rupee

......

HSBK

Buy

241,380,400

2,996,132

1/11/23

—

(80,035)

Indian

Rupee

......

JPHQ

Buy

266,347,200

3,229,860

1/11/23

—

(12,141)

South

Korean

Won

..

MSCO

Buy

69,910,000,000

53,354,194

1/17/23

2,175,669

—

South

Korean

Won

..

JPHQ

Buy

16,905,000,000

12,963,036

1/18/23

464,893

—

Euro

.............

DBAB

Sell

9,770,816

104,016,200

SEK

1/19/23

—

(493,852)

Swedish

Krona

.....

DBAB

Sell

104,016,200

9,841,893

EUR

1/19/23

570,019

—

Chilean

Peso

......

GSCO

Buy

3,510,200,000

3,648,857

1/20/23

480,086

—

Chilean

Peso

......

JPHQ

Buy

3,325,445,264

3,370,099

1/24/23

539,338

—

Euro

.............

BZWS

Buy

18,568,000

19,561,722

1/25/23

345,178

—

Euro

.............

BZWS

Sell

18,568,000

18,413,514

1/25/23

—

(1,493,386)

Euro

.............

DBAB

Buy

24,397,000

25,664,446

1/25/23

491,772

—

Euro

.............

DBAB

Sell

24,397,000

26,885,584

1/25/23

729,367

—

South

Korean

Won

..

CITI

Buy

8,470,100,000

6,497,469

1/25/23

231,170

—

Euro

.............

MSCO

Sell

65,094,973

677,628,900

NOK

1/27/23

—

(566,043)

Canadian

Dollar

....

HSBK

Buy

89,690,000

66,955,738

2/03/23

—

(702,737)

Canadian

Dollar

....

HSBK

Sell

89,690,000

64,107,855

EUR

2/03/23

2,524,467

—

Euro

.............

HSBK

Sell

69,094,565

91,488,460

CAD

2/03/23

—

(6,545,907)

Euro

.............

MSCO

Buy

7,875,000

8,315,197

2/06/23

135,072

—

Euro

.............

MSCO

Sell

28,424,500

29,364,271

2/06/23

—

(1,136,637)

Chilean

Peso

......

JPHQ

Buy

5,487,100,000

6,127,757

2/09/23

307,947

—

Euro

.............

JPHQ

Sell

2,406,810

25,140,000

SEK

2/13/23

—

(168,987)

Swedish

Krona

.....

JPHQ

Sell

25,140,000

2,391,598

EUR

2/13/23

152,656

—

Indian

Rupee

......

HSBK

Buy

242,055,750

2,893,604

2/14/23

25,236

—

Chilean

Peso

......

JPHQ

Buy

3,325,454,736

3,865,235

2/15/23

31,490

—

Chilean

Peso

......

GSCO

Buy

8,834,202,936

9,667,545

2/21/23

674,612

—

Chilean

Peso

......

MSCO

Buy

6,390,810,000

6,983,347

2/21/23

498,342

—

Japanese

Yen

......

BOFA

Buy

4,218,690,870

30,537,031

2/22/23

1,813,055

—

Chilean

Peso

......

GSCO

Buy

2,307,250,000

2,731,767

3/07/23

—

(36,682)

Chinese

Yuan

......

BOFA

Buy

208,726,460

30,272,148

3/07/23

35,907

—

Chilean

Peso

......

GSCO

Buy

11,671,960,973

13,004,970

3/15/23

609,532

—

Chinese

Yuan

......

JPHQ

Buy

109,163,880

15,817,414

3/15/23

43,069

—

Euro

.............

BOFA

Sell

6,642,716

8,949,000

CAD

3/15/23

—

(532,384)

Euro

.............

CITI

Sell

5,235,472

7,054,790

CAD

3/15/23

—

(418,407)

Euro

.............

DBAB

Sell

4,642,414

46,872,600

NOK

3/15/23

—

(194,762)

Euro

.............

GSCO

Sell

1,230,811

1,213,887

3/15/23

—

(110,088)

Indian

Rupee

......

CITI

Buy

590,870,000

7,108,125

3/15/23

16,567

(15,892)

Indian

Rupee

......

JPHQ

Buy

205,911,800

2,484,457

3/15/23

—

(7,117)

Japanese

Yen

......

BNDP

Buy

2,097,874,660

14,973,044

3/15/23

1,159,862

—

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Templeton

Global

Bond

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TGB-16

At

December

31,

2022,

the

Fund

had

the

following

interest

rate

swap

contracts

outstanding.

See

Not

e

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)

Japanese

Yen

......

BOFA

Buy

7,460,672,540

53,268,640

3/15/23

$

4,104,820

$

—

Japanese

Yen

......

GSCO

Buy

9,155,000,000

63,054,132

3/15/23

7,348,908

—

Japanese

Yen

......

JPHQ

Buy

2,202,609,690

15,721,023

3/15/23

1,217,307

—

New

Zealand

Dollar

.

BOFA

Buy

10,600,000

6,371,130

3/15/23

363,102

—

New

Zealand

Dollar

.

CITI

Buy

12,470,000

7,987,347

3/15/23

—

(65,095)

New

Zealand

Dollar

.

JPHQ

Buy

47,380,000

28,504,992

3/15/23

1,595,753

—

Singapore

Dollar

....

CITI

Buy

4,670,000

3,455,548

3/15/23

34,915

—

Singapore

Dollar

....

MSCO

Buy

10,540,000

7,435,259

3/15/23

442,573

—

South

Korean

Won

..

BNDP

Buy

71,267,400,000

51,452,891

3/15/23

5,231,916

—

Indian

Rupee

......

HSBK

Buy

875,000,000

10,831,219

3/23/23

—

(313,980)

South

Korean

Won

..

HSBK

Buy

1,788,000,000

1,293,122

3/23/23

129,452

—

Euro

.............

BZWS

Sell

8,713,000

9,677,486

4/25/23

280,245

—

Euro

.............

DBAB

Sell

24,278,000

24,204,535

4/25/23

—

(1,980,040)

Euro

.............

HSBK

Sell

19,207,597

26,135,009

CAD

5/03/23

—

(1,400,946)

Chinese

Yuan

......

CITI

Buy

284,452,570

41,332,234

6/07/23

258,498

—

Indian

Rupee

......

JPHQ

Buy

1,225,430,400

14,638,122

6/14/23

5,189

—

Japanese

Yen

......

DBAB

Buy

9,711,052,240

72,400,354

6/15/23

3,286,704

—

Chilean

Peso

......

GSCO

Buy

4,513,615,115

4,518,185

7/26/23

654,368

—

Mexican

Peso

......

MSCO

Buy

35,649,000

1,686,329

8/04/23

71,649

—

Mexican

Peso

......

MSCO

Sell

35,649,000

1,613,442

8/04/23

—

(144,537)

Mexican

Peso

......

CITI

Buy

106,418,000

5,019,214

10/23/23

153,722

—

Mexican

Peso

......

CITI

Sell

106,418,000

4,633,013

10/23/23

—

(539,923)

Mexican

Peso

......

MSCO

Buy

107,315,000

4,723,862

9/03/24

257,257

—

Mexican

Peso

......

MSCO

Sell

107,315,000

4,562,422

9/03/24

—

(418,697)

Total

Forward

Exchange

Contracts

...................................................

$39,810,373

$(18,878,592)

Net

unrealized

appreciation

(depreciation)

............................................

$20,931,781

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

Interest

Rate

Swap

Contracts

Description

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

*

Value

Unamortized

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

aa

aa

aa

aa

Centrally

Cleared

Swap

Contracts

Receive

Fixed

4.422%

.

Annual

Pay

Floating

1-day

SOFR

............

Annual

12/14/24

19,880,000

$

(27,371)

$

—

$

(27,371)

Receive

Fixed

4.416%

.

Annual

Pay

Floating

1-day

SOFR

............

Annual

1/03/25

19,880,000

(16,362)

—

(16,362)

Total

Interest

Rate

Swap

Contracts

...............................

$(43,733)

$

—

$(43,733)

*

In

U.S.

dollars

unless

otherwise

indicated.

See

Note

11 regarding

other

derivative

information.

See

A

bbreviations

on

page

TGB-

32

.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

December

31,

2022

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

TGB-17

Templeton

Global

Bond

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$1,713,372,909

Cost

-

Non-controlled

affiliates

(Not

e

3e)

........................................................

154,512,860

Value

-

Unaffiliated

issuers

..................................................................

$1,541,759,847

Value

-

Non-controlled

affiliates

(Not

e

3e)

.......................................................

154,512,860

Cash

....................................................................................

576,382

Restricted

cash

for

OTC

derivative

contracts

(Note

1

e

)

...............................................

10,339,170

Receivables:

Capital

shares

sold

........................................................................

162,568

Interest

.................................................................................

13,294,335

Deposits

with

brokers

for:

OTC

derivative

contracts

..................................................................

9,390,000

Centrally

cleared

swap

contracts

............................................................

513,023

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

39,810,373

Total

assets

..........................................................................

1,770,358,558

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

690,542

Capital

shares

redeemed

...................................................................

1,611,768

Management

fees

.........................................................................

613,466

Distribution

fees

..........................................................................

337,378

Trustees'

fees

and

expenses

.................................................................

930

Variation

margin

on

centrally

cleared

swap

contracts

...............................................

29,992

Deposits

from

brokers

for:

OTC

derivative

contracts

..................................................................

10,339,170

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

18,878,592

Deferred

tax

...............................................................................

165,047

Accrued

expenses

and

other

liabilities

...........................................................

694,250

Total

liabilities

.........................................................................

33,361,135

Net

assets,

at

value

.................................................................

$1,736,997,423

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$2,158,610,548

Total

distributable

earnings

(losses)

.............................................................

(421,613,125)

Net

assets,

at

value

.................................................................

$1,736,997,423

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

December

31,

2022

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TGB-18

Templeton

Global

Bond

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$153,423,316

Shares

outstanding

........................................................................

11,664,226

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$13.15

Class

2:

Net

assets,

at

value

.......................................................................

$1,527,996,714

Shares

outstanding

........................................................................

122,495,107

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.47

Class

4:

Net

assets,

at

value

.......................................................................

$55,577,393

Shares

outstanding

........................................................................

4,353,708

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.77

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2022

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

TGB-19

Templeton

Global

Bond

VIP

Fund

Investment

income:

Dividends:

Non-controlled

affiliates

(Not

e

3e)

.............................................................

$1,561,290

Interest:

(net

of

foreign

taxes

of

$2,414,678)

Unaffiliated

issuers:

Inflation

principal

adjustments

..............................................................

14,992,565

Paid

in

cash

a

...........................................................................

58,988,969

Total

investment

income

...................................................................

75,542,824

Expenses:

Management

fees

(Note

3

a

)

...................................................................

8,665,057

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

4,091,301

    Class

4

................................................................................

216,829

Custodian

fees

(Note

4

)

......................................................................

767,404

Reports

to

shareholders

fees

..................................................................

(321,129)

Professional

fees

...........................................................................

125,471

Trustees'

fees

and

expenses

..................................................................

21,625

Other

....................................................................................

112,141

Total

expenses

.........................................................................

13,678,699

Expense

reductions

(Note

4

)

...............................................................

(7,493)

Expenses

waived/paid

by

affiliates

(Note

3e)

...................................................

(398,493)

Net

expenses

.........................................................................

13,272,713

Net

investment

income

................................................................

62,270,111

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

(net

of

foreign

taxes

of

$564,287)

Unaffiliated

issuers

......................................................................

(249,410,063)

Written

options

...........................................................................

3,904,388

Foreign

currency

transactions

................................................................

(7,128,221)

Forward

exchange

contracts

.................................................................

(1,254,506)

Net

realized

gain

(loss)

..................................................................

(253,888,402)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

70,363,088

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

10,562

Written

options

...........................................................................

(2,493,739)

Forward

exchange

contracts

.................................................................

19,339,887

Swap

contracts

...........................................................................

(43,733)

Change

in

deferred

taxes

on

unrealized

appreciation

...............................................

1,189,542

Net

change

in

unrealized

appreciation

(depreciation)

............................................

88,365,607

Net

realized

and

unrealized

gain

(loss)

............................................................

(165,522,795)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(103,252,684)

a

Includes

amortization

of

premium

and

accretion

of

discount.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TGB-20

Templeton

Global

Bond

VIP

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$62,270,111

$71,596,289

Net

realized

gain

(loss)

.................................................

(253,888,402)

(185,608,767)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

88,365,607

238,289

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(103,252,684)

(113,774,189)

Capital

share

transactions:

(Note

2

)

Class

1

.............................................................

(41,188,071)

(9,857,158)

Class

2

.............................................................

(241,650,752)

(63,558,697)

Class

4

.............................................................

(12,302,406)

(1,380,150)

Total

capital

share

transactions

............................................

(295,141,229)

(74,796,005)

Net

increase

(decrease)

in

net

assets

...................................

(398,393,913)

(188,570,194)

Net

assets:

Beginning

of

year

.......................................................

2,135,391,336

2,323,961,530

End

of

year

...........................................................

$1,736,997,423

$2,135,391,336

Franklin

Templeton

Variable

Insurance

Products

Trust

TGB-21

Annual

Report

Notes

to

Financial

Statements

Templeton

Global

Bond

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.

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

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

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

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,

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

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TGB-22

Annual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

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

Delayed

Delivery

Basis

The

Fund

purchases

securities

on

a

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,

they

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

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

b.

Foreign

Currency

Translation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TGB-23

Annual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

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

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

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

appreciation

or

depreciation

until

the

payments

are

made,

at

which

time

they

are

realized.

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.

At

December

31,

2022,

the

Fund

had

no

options.

See

Note

11

regarding

other

derivative

information.

e.

Restricted

Cash

At

December

31,

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.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Derivative

Financial

Instruments

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TGB-24

Annual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

on

its

technical

merits.

As

of

December

31,

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

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.

1.

Organization

and

Significant

Accounting

Policies

(continued)

f.

Income

and

Deferred

Taxes

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TGB-25

Annual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

December

31,

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

year

ended

December

31,

2022,

the

gross

effective

investment

management

fee

rate

was 0.463%

of

the

Fund’s

average daily

net

assets. 

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

1,493,687

$19,745,561

2,973,164

$41,967,080

Shares

redeemed

...............................

(4,618,884)

(60,933,632)

(3,685,956)

(51,824,238)

Net

increase

(decrease)

..........................

(3,125,197)

$(41,188,071)

(712,792)

$(9,857,158)

Class

2

Shares:

Shares

sold

...................................

4,612,566

$58,273,369

10,826,597

$145,827,853

Shares

redeemed

...............................

(23,697,756)

(299,924,121)

(15,636,949)

(209,386,550)

Net

increase

(decrease)

..........................

(19,085,190)

$(241,650,752)

(4,810,352)

$(63,558,697)

Class

4

Shares:

Shares

sold

...................................

218,921

$2,837,434

824,461

$11,404,659

Shares

redeemed

...............................

(1,175,713)

(15,139,840)

(933,077)

(12,784,809)

Net

increase

(decrease)

..........................

(956,792)

$(12,302,406)

(108,616)

$(1,380,150)

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

TGB-26

Annual

Report

Templeton

Global

Bond

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

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

year

ended

December

31,

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

year

ended

December

31,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

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,

3.782%

$

94,380,135

$

902,157,912

$

(842,025,187)

$

—

$

—

$

154,512,860

154,512,860

$

1,561,290

Total

Affiliated

Securities

...

$94,380,135

$902,157,912

$(842,025,187)

$—

$—

$154,512,860

$1,561,290

3.

Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TGB-27

Annual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2022,

the

capital

loss

carryforwards

were

as

follows:

At

December

31,

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,

bond

discounts

and

premiums

and

tax

straddles.

In

accordance

with

U.S.

GAAP

permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

At

the

year

ended

December

31,

2022,

such

reclassifications

were

as

follows: 

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2022,

aggregated

$217,193,182

and

$391,525,060,

respectively.

7.

Credit

Risk

At

December

31,

2022,

the

Fund

had

10.8%

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

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.

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$17,190,517

Long

term

................................................................................

202,825,645

Total

capital

loss

carryforwards

...............................................................

$220,016,162

Cost

of

investments

..........................................................................

$1,919,246,634

Unrealized

appreciation

........................................................................

$56,462,401

Unrealized

depreciation

........................................................................

(258,548,280)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(202,085,879)

Paid-in

Capital

..............................................................................

Total

distributable

earnings

(loss)

................................................................

$(134,576,532)

$134,576,532

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TGB-28

Annual

Report

Templeton

Global

Bond

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.

Other

Derivative

Information

At

December

31,

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

Templeton

Global

Bond

VIP

Fund

Interest

rate

contracts

.......

Variation

margin

on

centrally

cleared

swap

contracts

$

—

Variation

margin

on

centrally

cleared

swap

contracts

$

43,733

a

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

39,810,373

Unrealized

depreciation

on

OTC

forward

exchange

contracts

18,878,592

Total

....................

$39,810,373

$18,922,325

a

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

year

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

TGB-29

Annual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

For

the

year

ended

December

31,

2022,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

year

ended

December

31,

2022,

the

average

month

end

notional

amount

of

swap

contracts

and

options

represented

$3,058,462

and

$207,657,154,

respectively.

The

average

month

end

contract

value

of

forward

exchange

contracts

was

$1,327,881,443.

At

December

31,

2022,

OTC

derivative

assets

and

liabilities

are

as

follows:

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Year

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Year

Templeton

Global

Bond

VIP

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Interest

rate

contracts

..........

Swap

contracts

$—

Swap

contracts

$(43,733)

Foreign

exchange

contracts

.....

Investments

(10,443,839)

a

Investments

7,138,635

a

Written

options

3,904,388

Written

options

(2,493,739)

Forward

exchange

contracts

(1,254,506)

Forward

exchange

contracts

19,339,887

Total

.......................

$(7,793,957)

$23,941,050

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.

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

.............................

$

39,810,373

$

18,878,592

Total

.............................................

$39,810,373

$18,878,592

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.

11.

Other

Derivative

Information

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TGB-30

Annual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

At

December

31,

2022,

OTC

derivative

assets,

which

may

be

offset

against

OTC

derivative

liabilities

and

collateral

received

from

the

counterparty,

are

as

follows:

At

December

31,

2022,

OTC

derivative

liabilities,

which

may

be

offset

against

OTC

derivative

assets

and

collateral

pledged

to

the

counterparty,

are

as

follows:

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)

Templeton

Global

Bond

VIP

Fund

Counterparty

BNDP

...................

$6,391,778

$—

$(6,015,833)

$—

$375,945

BOFA

....................

6,316,884

(532,384)

(3,706,719)

(690,000)

1,387,781

BZWS

...................

625,423

(625,423)

—

—

—

CITI

.....................

694,872

(694,872)

—

—

—

DBAB

...................

5,077,862

(2,668,654)

(897,208)

(429,170)

1,082,830

GSCO

...................

9,767,506

(146,770)

—

(8,380,000)

1,240,736

HSBK

...................

2,997,844

(2,997,844)

—

—

—

JPHQ

...................

4,357,642

(188,245)

(3,703,675)

—

465,722

MSCO

...................

3,580,562

(2,265,914)

—

(840,000)

474,648

Total

...................

$39,810,373

$(10,120,106)

$

(14,323,435)

$(10,339,170)

$5,027,662

$

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

b

Net

Amount

(Not

less

than

zero)

Templeton

Global

Bond

VIP

Fund

Counterparty

BNDP

...................

$—

$—

$—

$—

$—

BOFA

....................

532,384

(532,384)

—

—

—

BZWS

...................

1,493,386

(625,423)

—

(740,000)

127,963

CITI

.....................

1,618,867

(694,872)

—

(923,995)

—

DBAB

...................

2,668,654

(2,668,654)

—

—

—

GSCO

...................

146,770

(146,770)

—

—

—

HSBK

...................

9,964,372

(2,997,844)

—

(6,930,000)

36,528

JPHQ

...................

188,245

(188,245)

—

—

—

MSCO

...................

2,265,914

(2,265,914)

—

—

—

Total

...................

$18,878,592

$(10,120,106)

$—

$(8,593,995)

$164,491

11.

Other

Derivative

Information

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TGB-31

Annual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

See

Note

1(d)

regarding

derivative

financial

instruments.

See

Abbreviations

on

page

TGB-

32

.

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

matured

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.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

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

year

ended

December

31,

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.)

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

December

31,

2022,

in

valuing

the

Fund's assets

and

liabilities

carried

at

fair

value,

is

as

follows:

a

At

December

31,

2022,

the

Fund

received

U.S.

Treasury

Bills,

Bonds,

Notes

and

Inflation

Indexed

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

TGB-32

Annual

Report

Templeton

Global

Bond

VIP

Fund

(continued)

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

other

than

those

already

disclosed

in

the

financial

statements.

Abbreviations

Level

1

Level

2

Level

3

Total

Templeton

Global

Bond

VIP

Fund

Assets:

Investments

in

Securities:

Foreign

Government

and

Agency

Securities

....

$

—

$

766,011,042

$

—

$

766,011,042

U.S.

Government

and

Agency

Securities

.......

—

390,804,472

—

390,804,472

Short

Term

Investments

...................

154,512,860

384,944,333

—

539,457,193

Total

Investments

in

Securities

...........

$154,512,860

$1,541,759,847

$—

$1,696,272,707

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

39,810,373

$

—

$

39,810,373

Total

Other

Financial

Instruments

.........

$—

$39,810,373

$—

$39,810,373

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

18,878,592

$

—

$

18,878,592

Swap

contracts

..........................

—

43,733

—

43,733

Total

Other

Financial

Instruments

.........

$—

$18,922,325

$—

$18,922,325

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

BRL

Brazilian

Real

COP

Colombian

Peso

CAD

Canadian

Dollar

EUR

Euro

GHS

Ghanaian

Cedi

IDR

Indonesian

Rupiah

INR

Indian

Rupee

JPY

Japanese

Yen

KRW

South

Korean

Won

MXN

Mexican

Peso

NOK

Norwegian

Krone

SEK

Swedish

Krona

SGD

Singapore

Dollar

THB

Thai

Baht

USD

United

States

Dollar

13.

Fair

Value

Measurements

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

TGB-33

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Templeton

Variable

Insurance

Products

Trust

and

Shareholders

of

Templeton

Global

Bond

VIP

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Templeton

Global

Bond

VIP

Fund

(one

of

the

funds

constituting

Franklin

Templeton

Variable

Insurance

Products

Trust,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2022,

the

related

statement

of

operations

for

the

year

ended

December

31,

2022,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2022,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Templeton

Variable

Insurance

Products

Trust

Tax

Information

(unaudited)

TGB-34

Annual

Report

Templeton

Global

Bond

VIP

Fund

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

Under

Section

853

of

the

Internal

Revenue

Code,

the

Fund

intends

to

elect

to

pass

through

to

its

shareholders

the

following

amounts,

or

amounts

as

finally

determined,

of

foreign

taxes

paid

and

foreign

source

income

earned

by

the

Fund

during

the

fiscal

year

ended

December

31,

2022:

Amount

Reported

Foreign

Taxes

Paid

$3,214,216

Foreign

Source

Income

Earned

$70,423,210

TG-1

Annual

Report

Templeton

Growth

VIP

Fund

This

annual

report

for

Templeton

Growth

VIP

Fund

covers

the

fiscal

year

ended

December

31,

2022

.

Class

4

Performance

Summary

as

of

December

31,

2022

Average

annual

total

return

of

Class

4

shares*

represents

the

average

annual

change

in

value,

assuming

reinvestment

of

dividends

and

capital

gains.

Average

returns

smooth

out

variations

in

returns,

which

can

be

significant;

they

are

not

the

same

as

year-by-year

results.

*Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Performance

reflects

the

Fund’s

Class

4

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.

Share

Class

Average

Annual

Total

Return

–

4

1-Year

-11.62%

5-Year

-0.85%

10-Year

+3.94%

TG-2

Annual

Report

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

(12/31/12–

12/31/22

)

The

graph

below

shows

the

change

in

value

of

a

hypothetical

$10,000

investment

in

the

Fund

over

the

indicated

period

and

includes

reinvestment

of

any

income

or

distributions.

The

Fund’s

performance*

is

compared

to

the

performance

of

the

MSCI

All

Country

World

Index

(ACWI)-NR.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Important

Notes

to

Performance

Information

preceding

the

Fund

Summaries.

**Source:

FactSet.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

TG-3

Annual

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,

in

addition

to

those

associated

with

these

markets’

smaller

size

and

lesser

liquidity.

The

Fund

is

designed

for

the

aggressive

portion

of

a

well-diversified

portfolio.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

one-year

total

return

in

the

Performance

Summary.

For

comparison,

the

Fund’s

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

posted

a

-18.36%

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

-18.36%

total

return

for

the

12

months

ended

December

31,

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

monetary

policy

in

2022,

which

hindered

stocks

and

the

outlook

for

economic

growth.

Russia’s

invasion

of

Ukraine

and

the

subsequent

escalation

of

the

war

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

disrupted

global

trade

and

commodity

markets.

Meanwhile,

shifting

public

health

policy

in

China

added

volatility

to

the

global

economy,

as

lockdowns

early

in

the

period

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

slowed

economic

activity,

while

widespread

protests

late

in

the

period

led

the

government

to

relax

its

strict

“zero-COVID”

policy

.

In

the

U.S.,

gross

domestic

product

(GDP)

expanded

in

the

second

half

of

the

calendar

year,

recovering

from

a

slight

contraction

in

the

first

half

of

the

year

when

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

economic

output.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence

despite

high

spending

levels,

robust

job

growth

and

low

unemployment.

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

six

meetings

to

end

the

period

at

a

range

of

4.25%–4.50%.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

Geographic

Composition

12/31/22

%

of

Total

Net

Assets

North

America

51.7%

Europe

30.0%

Asia

14.0%

Short-Term

Investments

&

Other

Net

Assets

4.3%

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

Growth

VIP

Fund

TG-4

Annual

Report

its

bond

holdings

and

anticipated

additional

interest-rate

increases

at

future

meetings

to

curtail

inflation.

Economic

growth

in

the

eurozone

decelerated

to

a

slightly

positive

growth

rate

during

the

year.

The

lifting

of

COVID-

related

restrictions

in

some

European

countries

and

the

summer

tourism

season

strengthened

economies.

However,

the

war

in

Ukraine

disrupted

supply

chains,

weakened

the

economic

outlook

and

contributed

to

record

high

inflation

across

the

eurozone,

as

energy

prices

soared.

Electricity

prices

hit

record

highs

in

Germany

and

France

as

coal

futures

and

natural

gas

prices

climbed.

Consequently,

the

European

Central

Bank

raised

interest

rates

in

July

2022

for

the

first

time

in

11

years

to

curtail

growing

inflation

and

raised

rates

in

three

subsequent

meetings.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-15.06%

total

return

for

the

12

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-18.61%

total

return

for

the

12-month

period.

1

Growth

in

Japan

remained

slow,

alternating

between

positive

quarterly

GDP

growth

and

contraction.

China’s

economy

contracted

sharply

in

2022

as

COVID-related

restrictions

in

many

major

cities,

including

Shanghai,

weakened

consumer

demand.

Investor

concerns

about

the

solvency

of

several

large

property

developers

in

China

further

pressured

stocks

in

that

country.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-20.09%

total

return

for

the

12

months

under

review.

1

Central

bank

tightening,

the

threat

of

recession,

and

weakening

demand

for

semiconductors

in

technology-heavy

countries

contributed

to

the

downturn.

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.

However,

some

emerging

economies,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

benefited

from

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

outperformed

its

benchmark

MSCI

ACWI-NR

in

2022,

a

challenging

year

that

saw

equities

post

their

biggest

decline

since

the

depths

of

the

global

financial

crisis

as

central

banks

tightened

policy

to

combat

rising

inflation.

The

Fund

finished

the

year

on

a

strong

note,

outperforming

its

benchmark

by

the

most

in

over

two

decades

during

the

fourth

quarter.

All

major

regions

and

all

but

two

of

the

Fund’s

sector

exposures

performed

better

than

the

benchmark

during

the

year

in

review.

Encouragingly,

relative

strength

was

primarily

attributable

to

stock

selection.

We

have

long

believed

the

ultra-loose

policy

environment

prevailing

in

recent

years

was

anomalous,

and

that

the

transition

to

a

more

normalized

interest-rate

environment

would

eventually

increase

investor

scrutiny

on

price

and

fundamentals,

potentially

rewarding

our

value-

oriented

strategy.

Our

focus

on

value

at

the

individual

security

level—and

the

market’s

recent

responsiveness

to

valuation

and

fundamentals—helped

the

portfolio

deliver

strong

relative

performance,

even

in

the

more

challenging

sectors.

For

example,

sectors

like

consumer

discretionary

and

information

technology

(IT)

were

out

of

favor

as

higher

interest

rates

soured

sentiment

on

long-dated

growth

companies

that

had

benefited

from

historically

low

financing

costs.

Yet,

our

value-oriented

approach

helped

limit

losses

during

the

year

and

the

two

sectors

finished

among

the

top

contributors

to

relative

performance.

More

traditional

value

sectors

also

meaningfully

contributed,

both

the

cyclical

variety

like

energy

and

industrials,

and

the

defensive

kind

like

health

care.

IT

was

the

top

relative

contributor,

benefiting

from

stock

selection

and

a

favorable

overweighted

allocation.

Global

technology

stocks

had

their

worst

year

relative

to

the

rest

of

the

market

since

the

bursting

of

the

TMT

(technology-

media-telecommunication)

bubble

two

decades

earlier.

Our

sector

holdings

limited

losses

relative

to

the

benchmark,

though

there

were

no

technology

stocks

among

the

Fund’s

top

10

individual

contributors.

The

sector’s

expensive

valuations

were

unsustainable

during

a

year

when

interest

rates

rose,

the

global

growth

outlook

cooled,

and

trade

wars

and

COVID

lockdowns

continued

to

impact

supply

Templeton

Growth

VIP

Fund

TG-5

Annual

Report

chains.

We

maintained

selective

semiconductor

exposure

despite

the

industry’s

economic

sensitivity

and

the

impact

of

the

China-U.S.

industrial

conflict

on

supply

chains.

We

believe

the

industry’s

cyclical

growth

profile

could

gradually

become

more

structural

over

time

given

semiconductor

manufacturers’

exposure

to

long-term

trends

tied

to

digitalization,

energy

efficiency

and

electric

vehicles.

We

are

not

currently

finding

many

opportunities

in

hardware

due

to

the

sector’s

slowing

demand

profile

and

peak

earnings

levels

as

the

COVID

pandemic

wanes.

We

favor

select

software

firms

with

good

recurring

revenues

and

what

we

view

as

underappreciated

growth

potential,

and

have

added

selectively

to

this

profile

amid

recent

selling.

Energy

was

another

notable

contributor

during

a

period

when

the

price

of

oil

rallied

to

a

14-year

high.

The

Fund’s

energy

position

benefited

from

an

overweighted

allocation

and

stock

selection,

with

the

top

two

contributors

during

the

period

hailing

from

the

sector.

Marathon

Petroleum

was

the

Fund’s

top-performing

stock,

rallying

after

the

firm

exceeded

consensus

earnings

estimates,

buoyed

by

stronger-than-expected

refining

results

and

the

company’s

authorization

of

a

US$5

billion

share

buyback.

We

trimmed

exposure

to

the

stock

on

strength

during

the

period,

though

we

continue

to

maintain

a

sizeable

position

in

the

portfolio.

U.K.

oil

major

BP

also

rallied

after

reporting

surging

profits.

We

remain

constructive

on

the

energy

sector

more

broadly

given

favorable

supply-and-demand

fundamentals

and

the

prodigious

cash-flow

generating

capabilities

of

oil

companies

that

have

become

much

more

capital

disciplined

over

the

course

of

the

business

cycle.

While

the

sector

has

benefited

from

the

strong

price

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

US$60–US$70

per

barrel

that

are

embedded

in

our

company

models.

Other

outperforming

sectors

included

industrials,

led

by

U.K.

defense

contractor

BAE

Systems;

consumer

discretionary,

led

by

U.S.

home

goods

retailer

TJX;

health

care,

led

by

U.S.

biopharmaceuticals

firm

AbbVie;

and

communication

services,

led

by

U.S.

mobile

operator

T-Mobile

US.

Financials

and

utilities

were

the

only

two

sectors

that

underperformed

the

benchmark

during

the

year.

The

Fund’s

financials

holdings

performed

better

than

the

benchmark’s

and

there

were

no

financials

holdings

among

the

Fund’s

10

biggest

detractors,

but

our

underweighted

allocation

to

the

sector

negatively

impacted

relative

performance

in

a

year

when

financials

declined

less

than

the

broader

market.

We

raised

our

exposure

to

banks

last

year

on

expectations

that

rising

interest

rates

and

accelerating

loan

growth

would

strengthen

net

interest

margins.

Our

exposures,

however,

remain

highly

selective.

We

have

avoided

banks

in

low-

returning,

over-regulated

markets

with

elevated

credit

risk,

focusing

instead

on

what

we

believe

to

be

best-in-

class

banks

in

attractive

markets

with

shareholder-friendly

management

teams

and

earnings

sensitivity

as

interest

rates

rise.

That

has

led

us

toward

“Main

Street”

banks

where

traditional

lending

will

benefit

from

higher

rates,

and

away

from

banks

with

a

high

mix

in

the

volatile

investment

banking

market.

The

Fund’s

utilities

position

was

led

lower

by

German

power

provider

E.ON.

Shares

declined

during

the

year

on

concerns

about

the

impact

of

a

disruption

in

Russian

natural

gas

supplies.

While

we

think

that

E.ON

could

be

a

strong

long-term

hold

following

a

period

of

strategic

restructuring

and

deleveraging,

the

implications

of

the

Russia-Ukraine

conflict

for

Germany’s

power

system

change

the

risk-reward

calculus,

in

our

view.

We

liquidated

the

position

in

favor

of

opportunities

we

believe

are

more

attractive

and

with

more

manageable

near-term

risk

profiles.

From

a

regional

standpoint,

the

bulk

of

relative

outperformance

came

from

the

U.S.,

where

the

Fund

benefited

from

stock

selection.

The

Fund’s

U.S.

holdings

declined

roughly

6%

in

value

during

a

year

when

the

U.S.

benchmark

declined

roughly

20%.

European

exposures

also

outperformed,

with

strength

in

the

U.K.,

Belgium

and

Norway

offsetting

weakness

in

Germany.

In

Asia,

double-digit

gains

from

the

Fund’s

sole

Hong

Kong

exposure

(insurer

AIA

Group)

offset

weakness

from

the

Fund’s

sole

South

Korean

Top

10

Holdings

12/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

AbbVie,

Inc.

3.3%

Biotechnology,

United

States

TJX

Cos.,

Inc.

(The)

3.0%

Specialty

Retail,

United

States

BP

plc

2.9%

Oil,

Gas

&

Consumable

Fuels,

United

Kingdom

Anheuser-Busch

InBev

SA/NV

2.8%

Beverages,

Belgium

HCA

Healthcare,

Inc.

2.7%

Health

Care

Providers

&

Services,

United

States

Unilever

plc

2.6%

Personal

Products,

United

Kingdom

Johnson

&

Johnson

2.5%

Pharmaceuticals,

United

States

Samsung

Electronics

Co.

Ltd.

2.4%

Technology

Hardware,

Storage

&

Peripherals,

South

Korea

Zimmer

Biomet

Holdings,

Inc.

2.4%

Health

Care

Equipment

&

Supplies,

United

States

UnitedHealth

Group,

Inc.

2.2%

Health

Care

Providers

&

Services,

United

States

Templeton

Growth

VIP

Fund

TG-6

Annual

Report

exposure

(semiconductor

and

consumer

electronics

firm

Samsung

Electronics).

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

December

31,

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

4

Fund

Expenses

Templeton

Growth

VIP

Fund

TG-7

Annual

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

184/365

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

7/1/22

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Fund-Level

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

4

$1,000

$1,044.10

$6.22

$1,019.12

$6.14

1.21%

TG-8

Annual

Report

GOF

VIP

P1

P2

P4

P5

12/22

SUPPLEMENT

DATED

DECEMBER

23,

2022

TO

THE

CURRENTLY

EFFECTIVE

PROSPECTUSES

OF

EACH

FUND

LISTED

BELOW

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

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

TEMPLETON

DEVELOPING

MARKETS

VIP

FUND

TEMPLETON

FOREIGN

VIP

FUND

TEMPLETON

GLOBAL

BOND

VIP

FUND

TEMPLETON

GROWTH

VIP

FUND

(a

series

of

Franklin

Templeton

Variable

Insurance

Products

Trust)

I.

For

Franklin

Allocation

VIP

Fund,

Franklin

Global

Real

Estate

VIP

Fund,

Franklin

Income

VIP

Fund,

Franklin

Strategic

Income

VIP

Fund

and

Franklin

VolSmart

Allocation

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-

focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-

term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

II.

For

Franklin

Dynatech

VIP

Fund,

Franklin

Growth

and

Income

VIP

Fund,

Franklin

Large

Cap

Growth

VIP

Fund,

Franklin

Rising

Dividends

VIP

Fund,

Franklin

Small-Mid

Cap

Growth

VIP

Fund,

Templeton

Developing

Markets

VIP

Fund,

Templeton

Global

Bond

VIP

Fund,

Templeton

Foreign

VIP

Fund

and

Templeton

Growth

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

ESG

Considerations

ESG

considerations

are

one

of

a

number

of

factors

that

the

investment

manager

examines

when

considering

investments

for

the

Fund’s

portfolio.

In

light

of

this,

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

issuers

and

may

have

lower

or

adverse

ESG

assessments.

Consideration

of

ESG

factors

may

affect

TG-9

Annual

Report

Please

keep

this

supplement

with

your

prospectus

for

future

reference.

the

Fund’s

exposure

to

certain

issuers

or

industries

and

may

not

work

as

intended.

In

addition,

ESG

considerations

assessed

as

part

of

the

Fund’s

investment

process

may

vary

across

types

of

eligible

investments

and

issuers.

In

certain

circumstances,

there

may

be

times

when

not

every

investment

is

assessed

for

ESG

factors

and,

when

they

are,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

an

issuer’s

ESG

factors

is

subjective

and

will

likely

differ

from

that

of

investors,

third

party

service

providers

(e.g.,

ratings

providers)

and

other

funds.

As

a

result,

securities

selected

by

the

investment

manager

may

not

reflect

the

beliefs

and

values

of

any

particular

investor.

The

investment

manager

also

may

be

dependent

on

the

availability

of

timely,

complete

and

accurate

ESG

data

reported

by

issuers

and/or

third-party

research

providers,

the

timeliness,

completeness

and

accuracy

of

which

is

out

of

the

investment

manager’s

control.

ESG

factors

are

often

not

uniformly

measured

or

defined,

which

could

impact

the

investment

manager’s

ability

to

assess

an

issuer.

While

the

investment

manager

views

ESG

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

long-term

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

III.

For

Franklin

U.S.

Government

Securities

VIP

Fund,

the

“ESG

Considerations”

risk

in

the

“Fund

Details

–

Principal

Risks”

section

of

the

prospectus

is

replaced

with

the

following:

Social

and

Governance

Considerations

Social

and/or

governance

considerations

are

not

the

only

factors

considered

by

the

investment

manager

and

may

not

be

a

determinative

factor

in

the

investment

manager’s

selection

of

securities

for

the

Fund.

In

addition,

the

investment

manager

may

not

be

able

to

give

such

considerations

meaningful

weight

if

the

availability

of

appropriate

securities

for

the

Fund’s

portfolio

is

limited.

The

investment

manager

does

not

assess

every

investment

for

ESG

factors

and,

when

it

does,

not

every

ESG

factor

may

be

identified

or

evaluated.

The

investment

manager’s

assessment

of

certain

investments

may

differ

from

that

of

investors,

third

party

service

providers,

such

as

ratings

providers,

or

other

funds.

While

the

investment

manager

views

social

and

governance

considerations

as

having

the

potential

to

contribute

to

the

Fund’s

performance,

there

is

no

guarantee

that

such

results

will

be

achieved.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Templeton

Growth

VIP

Fund

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TG-10

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$11.87

$11.42

$11.15

$12.44

$16.24

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.12

0.09

0.24

c

0.30

0.28

Net

realized

and

unrealized

gains

(losses)

...........

(1.47)

0.52

0.36

1.30

(2.42)

Total

from

investment

operations

....................

(1.35)

0.61

0.60

1.60

(2.14)

Less

distributions

from:

Net

investment

income

..........................

(0.05)

(0.16)

(0.33)

(0.40)

(0.35)

Net

realized

gains

.............................

—

—

—

(2.49)

(1.31)

Total

distributions

...............................

(0.05)

(0.16)

(0.33)

(2.89)

(1.66)

Net

asset

value,

end

of

year

.......................

$10.47

$11.87

$11.42

$11.15

$12.44

Total

return

d

...................................

(11.32)%

5.26%

5.99%

15.43%

(14.61)%

Ratios

to

average

net

assets

Expenses

e

....................................

0.90%

0.91%

0.91%

0.86%

0.83%

Net

investment

income

...........................

1.12%

0.71%

2.42%

c

2.52%

1.90%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$31,251

$39,373

$92,653

$97,988

$354,164

Portfolio

turnover

rate

............................

34.43%

45.59%

f

63.65%

19.69%

29.25%

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.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

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)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

TG-11

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$11.59

$11.17

$10.90

$12.21

$15.97

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.09

0.05

0.21

c

0.26

0.24

Net

realized

and

unrealized

gains

(losses)

...........

(1.42)

0.50

0.36

1.28

(2.38)

Total

from

investment

operations

....................

(1.33)

0.55

0.57

1.54

(2.14)

Less

distributions

from:

Net

investment

income

..........................

(0.02)

(0.13)

(0.30)

(0.36)

(0.31)

Net

realized

gains

.............................

—

—

—

(2.49)

(1.31)

Total

distributions

...............................

(0.02)

(0.13)

(0.30)

(2.85)

(1.62)

Net

asset

value,

end

of

year

.......................

$10.24

$11.59

$11.17

$10.90

$12.21

Total

return

d

...................................

(11.50)%

4.87%

5.80%

15.15%

(14.85)%

Ratios

to

average

net

assets

Expenses

e

....................................

1.15%

1.18%

1.16%

1.11%

1.08%

Net

investment

income

...........................

0.87%

0.39%

2.17%

c

2.27%

1.65%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$315,684

$405,365

$603,996

$659,412

$625,311

Portfolio

turnover

rate

............................

34.43%

45.59%

f

63.65%

19.69%

29.25%

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.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

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)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TG-12

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

4

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$11.79

$11.35

$11.07

$12.36

$16.13

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.08

0.03

0.20

c

0.26

0.23

Net

realized

and

unrealized

gains

(losses)

...........

(1.45)

0.53

0.36

1.29

(2.40)

Total

from

investment

operations

....................

(1.37)

0.56

0.56

1.55

(2.17)

Less

distributions

from:

Net

investment

income

..........................

(0.01)

(0.12)

(0.28)

(0.35)

(0.29)

Net

realized

gains

.............................

—

—

—

(2.49)

(1.31)

Total

distributions

...............................

(0.01)

(0.12)

(0.28)

(2.84)

(1.60)

Net

asset

value,

end

of

year

.......................

$10.41

$11.79

$11.35

$11.07

$12.36

Total

return

d

...................................

(11.62)%

4.85%

5.65%

14.97%

(14.88)%

Ratios

to

average

net

assets

Expenses

e

....................................

1.25%

1.29%

1.26%

1.21%

1.18%

Net

investment

income

...........................

0.77%

0.24%

2.04%

c

2.17%

1.55%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$17,048

$21,559

$23,213

$27,330

$28,238

Portfolio

turnover

rate

............................

34.43%

45.59%

f

63.65%

19.69%

29.25%

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.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

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,

December

31,

2022

Templeton

Growth

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

TG-13

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

95.7%

Aerospace

&

Defense

4.8%

BAE

Systems

plc

.....................................

United

Kingdom

691,283

$

7,139,554

a

Rolls-Royce

Holdings

plc

...............................

United

Kingdom

5,568,419

6,219,527

Thales

SA

...........................................

France

31,936

4,080,235

17,439,316

Airlines

0.6%

a,b

International

Consolidated

Airlines

Group

SA

.................

United

Kingdom

1,543,218

2,298,003

Auto

Components

2.5%

Continental

AG

.......................................

Germany

89,046

5,308,191

Lear

Corp.

..........................................

United

States

32,198

3,993,196

9,301,387

Automobiles

1.2%

Honda

Motor

Co.

Ltd.

..................................

Japan

195,396

4,455,261

Banks

0.9%

Lloyds

Banking

Group

plc

...............................

United

Kingdom

6,233,216

3,401,410

Beverages

4.1%

Anheuser-Busch

InBev

SA/NV

...........................

Belgium

167,217

10,071,171

Pernod

Ricard

SA

.....................................

France

24,491

4,817,710

14,888,881

Biotechnology

3.3%

AbbVie,

Inc.

.........................................

United

States

73,517

11,881,082

Chemicals

3.2%

Albemarle

Corp.

......................................

United

States

19,720

4,276,479

DuPont

de

Nemours,

Inc.

...............................

United

States

110,309

7,570,507

11,846,986

Consumer

Finance

0.9%

American

Express

Co.

.................................

United

States

22,618

3,341,810

Electrical

Equipment

1.2%

Schneider

Electric

SE

..................................

United

States

31,153

4,374,756

Entertainment

1.9%

a

Walt

Disney

Co.

(The)

..................................

United

States

80,346

6,980,461

Food

Products

1.9%

Danone

SA

..........................................

France

130,453

6,875,299

Health

Care

Equipment

&

Supplies

4.4%

Medtronic

plc

........................................

United

States

94,696

7,359,773

Zimmer

Biomet

Holdings,

Inc.

............................

United

States

67,580

8,616,450

15,976,223

Health

Care

Providers

&

Services

6.3%

Fresenius

Medical

Care

AG

&

Co.

KGaA

....................

Germany

152,304

4,974,404

HCA

Healthcare,

Inc.

...................................

United

States

41,555

9,971,538

UnitedHealth

Group,

Inc.

................................

United

States

14,833

7,864,160

22,810,102

Hotels,

Restaurants

&

Leisure

5.0%

a

Booking

Holdings,

Inc.

.................................

United

States

1,842

3,712,146

Compass

Group

plc

...................................

United

Kingdom

212,094

4,897,479

a

Hyatt

Hotels

Corp.,

A

...................................

United

States

41,905

3,790,307

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Templeton

Growth

VIP

Fund

(continued)

Annual

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)

Hotels,

Restaurants

&

Leisure

(continued)

Starbucks

Corp.

......................................

United

States

57,926

$

5,746,259

18,146,191

Household

Durables

1.7%

Sony

Group

Corp.

.....................................

Japan

81,299

6,194,618

Industrial

Conglomerates

2.6%

Hitachi

Ltd.

..........................................

Japan

99,293

4,994,342

Honeywell

International,

Inc.

.............................

United

States

20,262

4,342,146

9,336,488

Insurance

2.0%

AIA

Group

Ltd.

.......................................

Hong

Kong

651,442

7,194,221

Interactive

Media

&

Services

1.5%

a

Alphabet,

Inc.,

A

......................................

United

States

61,499

5,426,057

Internet

&

Direct

Marketing

Retail

1.9%

a

Amazon.com,

Inc.

.....................................

United

States

37,254

3,129,336

a,b

Farfetch

Ltd.,

A

.......................................

United

Kingdom

94,523

447,094

a,c

Just

Eat

Takeaway.com

NV,

144A,

Reg

S

...................

United

Kingdom

155,978

3,319,763

6,896,193

IT

Services

2.9%

a

DXC

Technology

Co.

...................................

United

States

253,813

6,726,044

b

Visa,

Inc.,

A

..........................................

United

States

19,005

3,948,479

10,674,523

Life

Sciences

Tools

&

Services

0.9%

a

ICON

plc

............................................

United

States

17,206

3,342,266

Machinery

3.3%

Komatsu

Ltd.

........................................

Japan

222,271

4,802,547

Westinghouse

Air

Brake

Technologies

Corp.

.................

United

States

72,607

7,246,904

12,049,451

Media

3.0%

Comcast

Corp.,

A

.....................................

United

States

204,797

7,161,751

b

Paramount

Global,

B

...................................

United

States

216,576

3,655,803

10,817,554

Multiline

Retail

1.9%

a

Dollar

Tree,

Inc.

......................................

United

States

49,112

6,946,401

Oil,

Gas

&

Consumable

Fuels

5.6%

BP

plc

..............................................

United

Kingdom

1,815,465

10,474,694

Marathon

Petroleum

Corp.

..............................

United

States

44,698

5,202,400

Shell

plc

............................................

Netherlands

168,214

4,741,894

20,418,988

Personal

Products

3.6%

a

Haleon

plc

..........................................

United

States

879,868

3,481,156

Unilever

plc

..........................................

United

Kingdom

190,090

9,537,662

13,018,818

Pharmaceuticals

4.6%

Bayer

AG

...........................................

Germany

85,959

4,424,112

GSK

plc

............................................

United

States

189,726

3,278,944

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Templeton

Growth

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

TG-15

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Pharmaceuticals

(continued)

Johnson

&

Johnson

...................................

United

States

50,662

$

8,949,442

16,652,498

Professional

Services

1.0%

Adecco

Group

AG

.....................................

Switzerland

107,445

3,534,197

Semiconductors

&

Semiconductor

Equipment

5.0%

Applied

Materials,

Inc.

..................................

United

States

14,884

1,449,404

Infineon

Technologies

AG

...............................

Germany

215,609

6,552,467

Micron

Technology,

Inc.

.................................

United

States

49,244

2,461,215

NXP

Semiconductors

NV

...............................

China

26,210

4,141,966

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.,

ADR

...........

Taiwan

46,818

3,487,473

18,092,525

Software

1.4%

Microsoft

Corp.

.......................................

United

States

14,000

3,357,480

SAP

SE

............................................

Germany

16,174

1,669,738

5,027,218

Specialty

Retail

4.9%

Nitori

Holdings

Co.

Ltd.

.................................

Japan

52,578

6,867,620

TJX

Cos.,

Inc.

(The)

...................................

United

States

137,454

10,941,338

17,808,958

Technology

Hardware,

Storage

&

Peripherals

2.4%

Samsung

Electronics

Co.

Ltd.

............................

South

Korea

195,785

8,629,775

Textiles,

Apparel

&

Luxury

Goods

1.2%

LVMH

Moet

Hennessy

Louis

Vuitton

SE

....................

France

5,846

4,253,896

Wireless

Telecommunication

Services

2.1%

a

T-Mobile

US,

Inc.

.....................................

United

States

55,946

7,832,440

Total

Common

Stocks

(Cost

$336,979,339)

.....................................

348,164,253

Short

Term

Investments

5.0%

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Time

Deposits

4.4%

Royal

Bank

of

Canada,

4.26%,

1/03/23

.....................

Canada

16,000,000

16,000,000

Total

Time

Deposits

(Cost

$16,000,000)

........................................

16,000,000

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

Templeton

Growth

VIP

Fund

(continued)

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TG-16

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

0.6%

Money

Market

Funds

0.6%

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

....

United

States

2,240,460

$

2,240,460

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$2,240,460)

............................................................

2,240,460

Total

Short

Term

Investments

(Cost

$18,240,460

)

................................

18,240,460

a

Total

Investments

(Cost

$355,219,799)

100.7%

..................................

$366,404,713

Other

Assets,

less

Liabilities

(0.7)%

...........................................

(2,422,103)

Net

Assets

100.0%

...........................................................

$363,982,610

See

Abbreviations

on

page

TG-

29

*

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

December

31,

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

December

31,

2022,

the

value

of

this

security

was

$3,319,763,

representing

0.9%

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

December

31,

2022

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

TG-17

Templeton

Growth

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$352,979,339

Cost

-

Non-controlled

affiliates

(Note

3e)

........................................................

2,240,460

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$9,403,495)

.................................

$364,164,253

Value

-

Non-controlled

affiliates

(Note

3e)

.......................................................

2,240,460

Cash

....................................................................................

13,282

Receivables:

Capital

shares

sold

........................................................................

42,549

Dividends

and

interest

.....................................................................

859,305

European

Union

tax

reclaims

(Note

1

d

)

.........................................................

81,104

Total

assets

..........................................................................

367,400,953

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

588,222

Management

fees

.........................................................................

292,258

Distribution

fees

..........................................................................

73,792

Trustees'

fees

and

expenses

.................................................................

1,143

Payable

upon

return

of

securities

loaned

(Note

1

c

)

..................................................

2,240,460

Accrued

expenses

and

other

liabilities

...........................................................

222,468

Total

liabilities

.........................................................................

3,418,343

Net

assets,

at

value

.................................................................

$363,982,610

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$344,864,844

Total

distributable

earnings

(losses)

.............................................................

19,117,766

Net

assets,

at

value

.................................................................

$363,982,610

Templeton

Growth

VIP

Fund

Class

1:

Net

assets,

at

value

.......................................................................

$31,251,086

Shares

outstanding

........................................................................

2,985,202

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$10.47

Class

2:

Net

assets,

at

value

.......................................................................

$315,683,579

Shares

outstanding

........................................................................

30,832,061

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$10.24

Class

4:

Net

assets,

at

value

.......................................................................

$17,047,945

Shares

outstanding

........................................................................

1,638,167

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$10.41

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2022

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

TG-18

Templeton

Growth

VIP

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$364,648)

Unaffiliated

issuers

........................................................................

$6,824,716

Interest:

Unaffiliated

issuers

........................................................................

352,013

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

59,543

Non-controlled

affiliates

(Note

3

e

)

.............................................................

32,493

Other

income

(Note

1

d

)

......................................................................

805,300

Total

investment

income

...................................................................

8,074,065

Expenses:

Management

fees

(Note

3

a

)

...................................................................

3,545,577

Distribution

fees:

(Note

3c

)

    Class

2

................................................................................

867,694

    Class

4

................................................................................

65,949

Custodian

fees

.............................................................................

1,312

Reports

to

shareholders

fees

..................................................................

(97,917)

Professional

fees

...........................................................................

116,453

Trustees'

fees

and

expenses

..................................................................

5,607

Other

....................................................................................

31,966

Total

expenses

.........................................................................

4,536,641

Expenses

waived/paid

by

affiliates

(Not

e

3e

and

3f)

..............................................

(5,738)

Net

expenses

.........................................................................

4,530,903

Net

investment

income

................................................................

3,543,162

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

20,282,680

Foreign

currency

transactions

................................................................

(1,091,009)

Net

realized

gain

(loss)

..................................................................

19,191,671

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(75,914,265)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

315,458

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(75,598,807)

Net

realized

and

unrealized

gain

(loss)

............................................................

(56,407,136)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(52,863,974)

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.

Annual

Report

TG-19

Templeton

Growth

VIP

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$3,543,162

$2,531,839

Net

realized

gain

(loss)

.................................................

19,191,671

103,019,285

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(75,598,807)

(68,186,130)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(52,863,974)

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

.............................................................

(3,572,889)

(57,275,687)

Class

2

.............................................................

(43,160,730)

(223,087,833)

Class

4

.............................................................

(1,979,587)

(2,556,253)

Total

capital

share

transactions

............................................

(48,713,206)

(282,919,773)

Net

increase

(decrease)

in

net

assets

...................................

(102,314,465)

(253,564,535)

Net

assets:

Beginning

of

year

.......................................................

466,297,075

719,861,610

End

of

year

...........................................................

$363,982,610

$466,297,075

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

Templeton

Growth

VIP

Fund

TG-20

Annual

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.

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

Codification

Topic

946,

Financial

Services

-

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

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

December

31,

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

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

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,

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

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TG-21

Annual

Report

Templeton

Growth

VIP

Fund

(continued)

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

December

31,

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

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 December

31,

2022, the

Fund

held $7,476,144,

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TG-22

Annual

Report

Templeton

Growth

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

December

31,

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.

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Income

and

Deferred

Taxes

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TG-23

Annual

Report

Templeton

Growth

VIP

Fund

(continued)

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

December

31,

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:

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

...................................

73,870

$794,735

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

...............................

(423,801)

(4,540,558)

(550,857)

(6,597,153)

Net

increase

(decrease)

..........................

(332,993)

$(3,572,889)

(4,792,715)

$(57,275,687)

Class

2

Shares:

Shares

sold

...................................

1,131,729

$11,824,462

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

...............................

(5,325,849)

(55,531,763)

(7,320,737)

(85,248,883)

Net

increase

(decrease)

..........................

(4,139,463)

$(43,160,730)

(19,124,981)

$(223,087,833)

Class

4

Shares:

Shares

sold

...................................

153,237

$1,591,260

73,213

$870,473

Shares

issued

in

reinvestment

of

distributions

..........

1,747

17,767

17,642

217,527

Shares

redeemed

...............................

(346,102)

(3,588,614)

(307,061)

(3,644,253)

Net

increase

(decrease)

..........................

(191,118)

$(1,979,587)

(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

1.

Organization

and

Significant

Accounting

Policies

(continued)

g.

Guarantees

and

Indemnifications

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TG-24

Annual

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

year

ended

December

31,

2022,

the

gross

effective

investment

management

fee

rate

was 0.888%

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

year

ended

December

31,

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

TG-25

Annual

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.

During

the

year

ended

December

31,

2022,

the

Fund

utilized

$21,175,903

of

capital

loss

carryforwards.

At

December

31,

2022,

the

capital

loss

carryforwards

were

as

follows:

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021,

was

as

follows:

At

December

31,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation)

and

undistributed

ordinary

income

for

income

tax

purposes

were

as

follows:

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

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,

3.782%

$—

$38,522,870

$(36,282,410)

$—

$—

$2,240,460

2,240,460

$32,493

Total

Affiliated

Securities

...

$—

$38,522,870

$(36,282,410)

$—

$—

$2,240,460

$32,493

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$2,418,724

2022

2021

Distributions

paid

from:

Ordinary

income

..........................................................

$737,285

$8,009,756

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TG-26

Annual

Report

Templeton

Growth

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

and

wash

sales.

5.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities) for

the

year

ended

December

31,

2022,

aggregated

$128,645,575 and

$152,549,307,

respectively. 

At

December

31,

2022,

in

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received $2,240,460 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.

Cost

of

investments

..........................................................................

$356,561,365

Unrealized

appreciation

........................................................................

$51,969,511

Unrealized

depreciation

........................................................................

(42,126,163)

Net

unrealized

appreciation

(depreciation)

..........................................................

$9,843,348

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$11,638,693

4.

Income

Taxes

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TG-27

Annual

Report

Templeton

Growth

VIP

Fund

(continued)

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

matured

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.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

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

year

ended

December

31,

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.

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

December

31,

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

...................

$

—

$

17,439,316

$

—

$

17,439,316

Airlines

..............................

—

2,298,003

—

2,298,003

Auto

Components

......................

3,993,196

5,308,191

—

9,301,387

Automobiles

..........................

—

4,455,261

—

4,455,261

Banks

...............................

—

3,401,410

—

3,401,410

Beverages

...........................

—

14,888,881

—

14,888,881

Biotechnology

.........................

11,881,082

—

—

11,881,082

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

TG-28

Annual

Report

Templeton

Growth

VIP

Fund

(continued)

12.

New

Accounting

Pronouncements

In June

2022,

the 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

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

will

not

have

a

material

impact

on

the

financial

statements.

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

other

than

those

already

disclosed

in

the

financial

statements.

Level

1

Level

2

Level

3

Total

Templeton

Growth

VIP

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Chemicals

...........................

$

11,846,986

$

—

$

—

$

11,846,986

Consumer

Finance

.....................

3,341,810

—

—

3,341,810

Electrical

Equipment

....................

—

4,374,756

—

4,374,756

Entertainment

.........................

6,980,461

—

—

6,980,461

Food

Products

........................

—

6,875,299

—

6,875,299

Health

Care

Equipment

&

Supplies

.........

15,976,223

—

—

15,976,223

Health

Care

Providers

&

Services

..........

17,835,698

4,974,404

—

22,810,102

Hotels,

Restaurants

&

Leisure

.............

13,248,712

4,897,479

—

18,146,191

Household

Durables

....................

—

6,194,618

—

6,194,618

Industrial

Conglomerates

................

4,342,146

4,994,342

—

9,336,488

Insurance

............................

—

7,194,221

—

7,194,221

Interactive

Media

&

Services

..............

5,426,057

—

—

5,426,057

Internet

&

Direct

Marketing

Retail

..........

3,576,430

3,319,763

—

6,896,193

IT

Services

...........................

10,674,523

—

—

10,674,523

Life

Sciences

Tools

&

Services

............

3,342,266

—

—

3,342,266

Machinery

............................

7,246,904

4,802,547

—

12,049,451

Media

...............................

10,817,554

—

—

10,817,554

Multiline

Retail

........................

6,946,401

—

—

6,946,401

Oil,

Gas

&

Consumable

Fuels

.............

5,202,400

15,216,588

—

20,418,988

Personal

Products

.....................

—

13,018,818

—

13,018,818

Pharmaceuticals

.......................

8,949,442

7,703,056

—

16,652,498

Professional

Services

...................

—

3,534,197

—

3,534,197

Semiconductors

&

Semiconductor

Equipment

.

11,540,058

6,552,467

—

18,092,525

Software

.............................

3,357,480

1,669,738

—

5,027,218

Specialty

Retail

........................

10,941,338

6,867,620

—

17,808,958

Technology

Hardware,

Storage

&

Peripherals

.

—

8,629,775

—

8,629,775

Textiles,

Apparel

&

Luxury

Goods

..........

—

4,253,896

—

4,253,896

Wireless

Telecommunication

Services

.......

7,832,440

—

—

7,832,440

Short

Term

Investments

...................

2,240,460

16,000,000

—

18,240,460

Total

Investments

in

Securities

...........

$187,540,067

$178,864,646

a

$—

$366,404,713

a

Includes

foreign

securities

valued

at

$162,864,646,

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

TG-29

Annual

Report

Templeton

Growth

VIP

Fund

(continued)

Abbreviations

Selected

Portfolio

ADR

American

Depositary

Receipt

Franklin

Templeton

Variable

Insurance

Products

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

TG-30

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Templeton

Variable

Insurance

Products

Trust

and

Shareholders

of

Templeton

Growth

VIP

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Templeton

Growth

VIP

Fund

(one

of

the

funds

constituting

Franklin

Templeton

Variable

Insurance

Products

Trust,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2022,

the

related

statement

of

operations

for

the

year

ended

December

31,

2022,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2022,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian

and

transfer

agent.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Templeton

Variable

Insurance

Products

Trust

Tax

Information

(unaudited)

TG-31

Annual

Report

Templeton

Growth

VIP

Fund

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2022:

Note

(1)

-

The

Law

varies

in

each

state

as

to

whether

and

what

percentage

of

dividend

income

attributable

to

Federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

consult

with

their

tax

advisors

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

taxes.

Pursuant

to:

Amount

Reported

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$2,349,727

Interest

Earned

from

Federal

Obligations

Note

(1)

$74

Franklin

Templeton

Variable

Insurance

Products

Trust

Index

Descriptions

I-1

Annual

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

Investment

Grade

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

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,

Standard

&

Poor’s,

and

Fitch

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

Bloomberg

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

(WGBI)

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

Annual

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

Board

Members

and

Officers

BOD-1

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1988

119

Bar-S

Foods

(meat

packing

company)

(1981-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Director,

RBC

Holdings,

Inc.

(bank

holding

company)

(until

2002);

and

President,

Chief

Executive

Officer

and

Chairman

of

the

Board,

General

Host

Corporation

(nursery

and

craft

centers)

(until

1998).

Terrence

J.

Checki

(1945)

Trustee

Since

2017

119

Hess

Corporation

(exploration

of

oil

and

gas)

(2014-present).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Member

of

the

Council

on

Foreign

Relations

(1996-present);

Member

of

the

National

Committee

on

U.S.-China

Relations

(1999-present);

member

of

the

board

of

trustees

of

the

Economic

Club

of

New

York

(2013-present);

member

of

the

board

of

trustees

of

the

Foreign

Policy

Association

(2005-present);

member

of

the

board

of

directors

of

Council

of

the

Americas

(2007-present)

and

the

Tallberg

Foundation

(2018-present);

and

formerly

,

Executive

Vice

President

of

the

Federal

Reserve

Bank

of

New

York

and

Head

of

its

Emerging

Markets

and

Internal

Affairs

Group

and

Member

of

Management

Committee

(1995-2014);

and

Visiting

Fellow

at

the

Council

on

Foreign

Relations

(2014).

Mary

C.

Choksi

(1950)

Trustee

Since

2014

120

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Templeton

Variable

Insurance

Products

Trust

BOD-2

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

2005

and

Lead

Independent

Trustee

since

2019

120

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present),

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

Canadian

National

Railway

(railroad)

(2001-2021),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-

2021),

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

120

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Counselor

and

Special

Advisor

to

the

CEO

and

Board

of

Directors

of

the

Coca-Cola

Company

(beverage

company)

(2021-present);

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(2019-2020);

Executive

Vice

President,

General

Counsel

and

member

of

the

Executive

Council,

The

Boeing

Company

(2006-2019);

and

Federal

Appeals

Court

Judge,

United

States

Court

of

Appeals

for

the

Fourth

Circuit

(1991-2006).

Larry

D.

Thompson

(1945)

Trustee

Since

2007

120

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

BOD-3

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Valerie

M.

Williams

(1956)

Trustee

Since

2021

111

Omnicom

Group,

Inc.

(advertising

and

marketing

communications

services)

(2016-present),

DTE

Energy

Co.

(gas

and

electric

utility)

(2018-present),

Devon

Energy

Corporation

(exploration

and

production

of

oil

and

gas)

(January

2021-present);

and

formerly

,

WPX

Energy,

Inc.

(exploration

and

production

of

oil

and

gas)

(2018-

2021).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Regional

Assurance

Managing

Partner,

Ernst

&

Young

LLP

(public

accounting)

(2005-2016),

various

roles

of

increasing

responsibility

at

Ernst

&

Young

(1981-2005).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Chairman

of

the

Board

and

Trustee

Chairman

of

the

Board

since

January

2023

and

Trustee

since

2013

131

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Trustee

Since

1988

120

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Alison

E.

Baur

(1964)

Vice

President

Since

2012

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Deputy

General

Counsel,

Franklin

Templeton;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Breda

M.

Beckerle

(1958)

Chief

Compliance

Officer

Since

2020

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Compliance

Officer,

Fiduciary

Investment

Management

International,

Inc.,

Franklin

Advisers,

Inc.,

Franklin

Mutual

Advisers,

LLC,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Independent

Board

Members

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

BOD-4

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Steven

J.

Gray

(1955)

Vice

President

and

Co-Secretary

Vice

President

since

2009

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Distributors,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Matthew

T.

Hinkle

(1971)

Chief

Executive

Officer

-

Finance

and

Administration

Since

2017

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

and

formerly

,

Vice

President,

Global

Tax

(2012-April

2017)

and

Treasurer/Assistant

Treasurer,

Franklin

Templeton

(2009-2017).

Susan

Kerr

(1949)

Vice

President

-

AML

Compliance

Since

2021

Not

Applicable

Not

Applicable

620

Eighth

Avenue

New

York,

NY

10018

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

LMIS;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Christopher

Kings

(1974)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

January

2022

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Edward

D.

Perks

(1970)

President

and

Chief

Executive

Officer

-

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

President

and

Director,

Franklin

Advisers,

Inc.;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

Since

2015

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Lori

A.

Weber

(1964)

Vice

President

and

Co-Secretary

Vice

President

since

2011

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

Vice

President

and

Secretary,

Templeton

Investment

Counsel,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

BOD-5

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton/Legg

Mason

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007-2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Interested

Board

Members

and

Officers

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-1

Annual

Report

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

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.

VIP4

A

02/23

©

2023

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.

Annual

Report

Franklin

Templeton

Variable

Insurance

Products

Trust

Investment

Managers

Fund

Administrator

Distributor

Franklin

Advisers,

Inc.

Franklin

Mutual

Advisers,

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.

(a)      Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $806,813 for the fiscal year ended December 31, 2022 and $782,449 for the fiscal year ended December 31, 2021.

(b)      Audit-Related Fees

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.  

(c)      Tax Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning were $0 for the fiscal year ended December 31, 2022 and $8,000 for the fiscal year ended December 31, 2021. The services for which these fees were paid included preparation of tax returns in relation to the liquidation of previously consolidated entities.

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $289,850 for the fiscal year ended December 31, 2022 and $100,125 for the fiscal year ended December 31, 2021. The services for which these fees were paid included global access to tax platform International Tax View and tax compliance services related to year-end.

(d)      All Other Fees

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4 were $0 for the fiscal year ended December 31, 2022 and $7,312 for the fiscal year ended December 31, 2021. The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process. 

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $525,076 for the fiscal year ended December 31, 2022 and $90,743 for the fiscal year ended December 31, 2021.The services for which these fees were paid included benchmarking services in connection with the ICI TA survey, professional fees in connection with determining the feasibility of a U.S. direct lending structure, compliance examination for Investment Advisor Act rule 206-4 (2), professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, fees in connection with a license for accounting and business knowledge platform Viewpoint, fees in connection with a license for employee development tool ProEdge and professional fees in connection with SOC 1 Reports.  

(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:

      (i)   pre-approval of all audit and audit related services;

      (ii)  pre-approval of all non-audit related services to be provided to the Fund by the auditors;

      (iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and

      (iv)  establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.

(f) No disclosures are required by this Item 4(f).

(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $814,926 for the fiscal year ended December 31, 2022 and $206,180 for the fiscal year ended December 31, 2021.

(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

(i) N/A

(j) 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  February 27, 2023

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  February 27, 2023

By S\CHRISTOPHER KINGS______________________

      Christopher Kings

      Chief Financial Officer, Chief Accounting Officer and Treasurer

Date  February 27, 2023