EDGAR HTML

United States

Securities and Exchange Commission

Washington, D.C. 20549

Form N-CSR

Certified Shareholder Report of Registered Management Investment Companies

811-8042

(Investment Company Act File Number)

Federated Hermes Insurance Series

_______________________________________________________________

(Exact Name of Registrant as Specified in Charter)

Federated Hermes Funds

4000 Ericsson Drive

Warrendale, Pennsylvania 15086-7561

(Address of Principal Executive Offices)

(412) 288-1900

(Registrant's Telephone Number)

Peter J. Germain, Esquire

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15222-3779

(Name and Address of Agent for Service)

(Notices should be sent to the Agent for Service)

Date of Fiscal Year End: 12/31/22

Date of Reporting Period: 12/31/22

Item 1.

Reports to Stockholders

Annual Shareholder Report

December 31, 2022

Share Class

Service

Federated Hermes Government Money Fund II

A Portfolio of Federated Hermes Insurance Series

Dear Valued Shareholder,

We are pleased to present the Annual Shareholder Report for your fund covering the period from January 1, 2022 through December 31, 2022. This report includes a complete listing of your fund’s holdings, performance information and financial statements along with other important fund information.

As a global leader in active, responsible investment management, Federated Hermes is guided by our conviction that responsible investing is the best way to create wealth over the long term. The company provides capabilities across a wide range of asset classes to investors around the world.

In addition, FederatedInvestors.com offers quick and easy access to valuable resources that include timely fund updates, economic and market insights from our investment strategists and financial planning tools. You can also access many of those insights by following us on Twitter (@FederatedHermes) and LinkedIn.

Thank you for investing with us. We hope you find this information useful and look forward to keeping you informed.

Sincerely,

John B. Fisher, President

Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee

CONTENTS

Portfolio of Investments Summary Tables	1
Portfolio of Investments	2
Financial Highlights	4
Statement of Assets and Liabilities	5
Statement of Operations	6
Statement of Changes in Net Assets	7
Notes to Financial Statements	8
Report of Independent Registered Public Accounting Firm	12
Shareholder Expense Example	13
Board of Trustees and Trust Officers	14
Evaluation and Approval of Advisory Contract	18
Voting Proxies on Fund Portfolio Securities	24
Portfolio Schedule	24

Portfolio of Investments Summary Tables (unaudited)

At December 31, 2022, the Fund’s portfolio composition1 was as follows:

Security Type	Percentage of Total Net Assets
U.S. Government Agency Securities	18.5%
U.S. Treasury Securities	9.3%
Repurchase Agreements	71.8%
Other Assets and Liabilities—Net2	0.4%
TOTAL	100%

1	See the Fund’s Prospectus and Statement of Additional Information for a description of the types of securities in which the Fund invests.
2	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

At December 31, 2022, the Fund’s effective maturity schedule1 was as follows:

Securities With an Effective Maturity of:	Percentage of Total Net Assets
1-7 Days	92.0%
8-30 Days	1.0%
31-90 Days	1.6%
91-180 Days	1.0%
181 Days or more	4.0%
Other Assets and Liabilities—Net2	0.4%
Total	100%

1	Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940, which regulates money market mutual funds.
2	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Annual Shareholder Report

Portfolio of Investments

December 31, 2022

Principal Amount			Value
		GOVERNMENT AGENCIES—18.5%
$ 925,000	1	Federal Farm Credit System Floating Rate Notes, 4.325% (Secured Overnight Financing Rate +0.025%), 1/2/2023	$ 924,997
400,000	1	Federal Farm Credit System Floating Rate Notes, 4.327% (Secured Overnight Financing Rate +0.027%), 1/2/2023	399,963
350,000	1	Federal Farm Credit System Floating Rate Notes, 4.340% (Secured Overnight Financing Rate +0.040%), 1/2/2023	350,000
350,000	1	Federal Farm Credit System Floating Rate Notes, 4.345% (Secured Overnight Financing Rate +0.045%), 1/2/2023	350,000
925,000	1	Federal Farm Credit System Floating Rate Notes, 4.350% (Secured Overnight Financing Rate +0.050%), 1/2/2023	925,005
325,000	1	Federal Farm Credit System Floating Rate Notes, 4.360% (Secured Overnight Financing Rate +0.060%), 1/2/2023	324,977
500,000	1	Federal Farm Credit System Floating Rate Notes, 4.375% (Secured Overnight Financing Rate +0.075%), 1/2/2023	499,970
500,000	1	Federal Farm Credit System Floating Rate Notes, 4.380% (Secured Overnight Financing Rate +0.080%), 1/2/2023 - 1/3/2023	499,989
400,000	1	Federal Farm Credit System Floating Rate Notes, 4.385% (Secured Overnight Financing Rate +0.085%), 1/2/2023	399,993
250,000	1	Federal Farm Credit System Floating Rate Notes, 4.390% (Secured Overnight Financing Rate +0.090%), 1/2/2023	250,000
250,000	1	Federal Farm Credit System Floating Rate Notes, 4.395% (Secured Overnight Financing Rate +0.095%), 1/2/2023	250,000
250,000	1	Federal Farm Credit System Floating Rate Notes, 4.400% (Secured Overnight Financing Rate +0.100%), 1/2/2023	250,000
300,000	1	Federal Farm Credit System Floating Rate Notes, 4.405% (Secured Overnight Financing Rate +0.105%), 1/2/2023	300,000
200,000	1	Federal Farm Credit System Floating Rate Notes, 4.410% (Secured Overnight Financing Rate +0.110%), 1/2/2023	200,000
250,000	1	Federal Farm Credit System Floating Rate Notes, 4.420% (Secured Overnight Financing Rate +0.120%), 1/2/2023	250,000
500,000	1	Federal Farm Credit System Floating Rate Notes, 4.430% (Secured Overnight Financing Rate +0.130%), 1/2/2023	500,000
400,000	1	Federal Home Loan Bank System Floating Rate Notes, 4.340% (Secured Overnight Financing Rate +0.040%), 1/2/2023	400,000
500,000	1	Federal Home Loan Bank System Floating Rate Notes, 4.350% (Secured Overnight Financing Rate +0.050%), 1/2/2023	500,000
1,250,000	1	Federal Home Loan Bank System Floating Rate Notes, 4.355% (Secured Overnight Financing Rate +0.055%), 1/2/2023	1,250,000
725,000	1	Federal Home Loan Bank System Floating Rate Notes, 4.360% (Secured Overnight Financing Rate +0.060%), 1/2/2023	725,000
850,000	1	Federal Home Loan Bank System Floating Rate Notes, 4.370% (Secured Overnight Financing Rate +0.070%), 1/2/2023	850,000
250,000	1	Federal Home Loan Bank System Floating Rate Notes, 4.400% (Secured Overnight Financing Rate +0.100%), 1/2/2023	250,000
4,150,000		Federal Home Loan Bank System, 2.080% - 4.500%, 2/13/2023 - 10/13/2023	4,149,808
100,000		Federal National Mortgage Association Notes, 0.250%, 7/10/2023	98,008
		TOTAL GOVERNMENT AGENCIES	14,897,710
		U.S. TREASURIES—9.3%
		U.S. Treasury Bills—2.2%
300,000	2	United States Treasury Bill, 0.630%, 1/26/2023	299,869
1,000,000	2	United States Treasury Bill, 3.020%, 2/16/2023	996,141
500,000	2	United States Treasury Bill, 3.623%, 1/17/2023	499,211
		TOTAL	1,795,221
		U.S. Treasury Notes—7.1%
500,000	1	United States Treasury Floating Rate Notes, 4.323% (91-day T-Bill -0.075%), 1/4/2023	500,000
750,000	1	United States Treasury Floating Rate Notes, 4.383% (91-day T-Bill -0.015%), 1/4/2023	750,332
1,400,000	1	United States Treasury Floating Rate Notes, 4.427% (91-day T-Bill +0.029%), 1/4/2023	1,400,135
850,000	1	United States Treasury Floating Rate Notes, 4.432% (91-day T-Bill +0.034%), 1/4/2023	850,005
750,000	1	United States Treasury Floating Rate Notes, 4.435% (91-day T-Bill +0.037%), 1/4/2023	749,360
1,150,000	1	United States Treasury Floating Rate Notes, 4.447% (91-day T-Bill +0.049%), 1/4/2023	1,150,004
250,000	1	United States Treasury Floating Rate Notes, 4.538% (91-day T-Bill +0.140%), 1/4/2023	249,640
100,000		United States Treasury Note, 0.125%, 5/31/2023	99,179
		TOTAL	5,748,655
		TOTAL U.S. TREASURIES	7,543,876
		REPURCHASE AGREEMENTS—71.8%
20,000,000		Interest in $775,000,000 joint repurchase agreement 4.31%, dated 12/30/2022 under which ABN Amro Bank N.V., Netherlands will repurchase securities provided as collateral for $775,371,139 on 1/3/2023. The securities provided as collateral at the end of the period held with BNY Mellon as tri-party agent, were U.S. Government Agency and U.S. Treasury securities with various maturities to 12/1/2052 and the market value of those underlying securities was $792,068,062.	20,000,000

Annual Shareholder Report

Principal Amount		Value
	REPURCHASE AGREEMENTS—continued
$20,000,000	Interest in $1,850,000,000 joint repurchase agreement 4.31%, dated 12/30/2022 under which Wells Fargo Securities LLC will repurchase securities provided as collateral for $1,850,885,944 on 1/3/2023. The securities provided as collateral at the end of the period held with BNY Mellon as tri-party agent, were U.S. Government Agency and U.S. Treasury securities with various maturities to 9/15/2065 and the market value of those underlying securities was $1,887,903,953.	$20,000,000
17,786,000	Interest in $2,000,000,000 joint repurchase agreement 4.30%, dated 12/30/2022 under which Sumitomo Mitsui Banking Corp will repurchase securities provided as collateral for $2,000,955,556 on 1/3/2023. The securities provided as collateral at the end of the period held with BNY Mellon as tri-party agent, were U.S. Government Agency securities with various maturities to 10/20/2052 and the market value of those underlying securities was $2,049,109,529.	17,786,000
	TOTAL REPURCHASE AGREEMENTS	57,786,000
	TOTAL INVESTMENT IN SECURITIES—99.6% (AT AMORTIZED COST)3	80,227,586
	OTHER ASSETS AND LIABILITIES - NET—0.4%4	286,500
	TOTAL NET ASSETS—100%	$80,514,086

1	Floating/variable note with current rate and current maturity or next reset date shown.
2	Discount rate(s) at time of purchase.
3	Also represents cost of investments for federal tax purposes.
4	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Note: The categories of investments are shown as a percentage of total net assets at December 31, 2022.

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

Level 1—quoted prices in active markets for identical securities.

Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

In valuing the Fund’s assets as of December 31, 2022, all investments of the Fund are valued at amortized cost, which is a methodology utilizing Level 2 inputs.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Service Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended December 31,
	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$1.00	$1.00	$1.00	$1.00	$1.00
Income From Investment Operations:
Net investment income (loss)	0.011	0.0001	0.002	0.016	0.012
Net realized gain (loss)	0.001	(0.000)1	0.0001	0.0001	(0.000)1
Total From Investment Operations	0.012	0.0001	0.002	0.016	0.012
Less Distributions:
Distributions from net investment income	(0.012)	(0.000)1	(0.002)	(0.016)	(0.012)
Net Asset Value, End of Period	$1.00	$1.00	$1.00	$1.00	$1.00
Total Return2	1.16%	0.00%3	0.20%	1.64%	1.25%
Ratios to Average Net Assets:
Net expenses4	0.48%	0.07%	0.31%	0.63%	0.63%
Net investment income	1.14%	0.00%3	0.18%	1.66%	1.26%
Expense waiver/reimbursement5	0.24%	0.66%	0.40%	0.09%	0.11%
Supplemental Data:
Net assets, end of period (000 omitted)	$80,514	$81,245	$90,591	$80,054	$130,261

1	Represents less than $0.001.
2	Based on net asset value. Total returns do not reflect any additional fees or expenses that may be imposed by separate accounts of insurance companies or in connection with any variable annuity or variable life insurance contract.
3	Represents less than 0.01%.
4	Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
5	This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/ reimbursement recorded by investment companies in which the Fund may invest.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Assets and Liabilities
December 31, 2022

Assets:
Investment in repurchase agreements	$57,786,000
Investment in securities, at amortized cost and fair value	22,441,586
Total investment in securities, at amortized cost and fair value	80,227,586
Income receivable	138,801
Receivable for investments sold	200,000
Receivable for shares sold	9,433
Prepaid expenses	10,296
Total Assets	80,586,116
Liabilities:
Payable for shares redeemed	14,463
Payable to bank	4,247
Payable for investment adviser fee (Note 5)	409
Payable for administrative fee (Note 5)	344
Payable for legal fees	3,921
Payable for custodian fees	2,883
Payable for portfolio accounting fees	20,938
Payable for other service fees (Notes 2 and 5)	16,911
Payable for printing and postage	6,129
Accrued expenses (Note 5)	1,785
Total Liabilities	72,030
Net assets for 80,514,422 shares outstanding	$80,514,086
Net Assets Consist of:
Paid-in capital	$80,513,971
Total distributable earnings (loss)	115
Total Net Assets	$80,514,086
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Service Shares:
$80,514,086 ÷ 80,514,422 shares outstanding, no par value, unlimited shares authorized	$1.00

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Operations
Year Ended December 31, 2022

Investment Income:
Interest	$1,334,050
Expenses:
Investment adviser fee (Note 5)	164,361
Administrative fee (Note 5)	64,644
Custodian fees	8,629
Transfer agent fees	5,657
Directors’/Trustees’ fees (Note 5)	1,641
Auditing fees	20,088
Legal fees	9,145
Portfolio accounting fees	75,597
Other service fees (Notes 2 and 5)	203,525
Printing and postage	34,944
Miscellaneous (Note 5)	6,213
TOTAL EXPENSES	594,444
Waivers and Reimbursements:
Waiver of investment adviser fee (Note 5)	(101,844)
Waivers/reimbursements of other operating expenses (Notes 2 and 5)	(97,076)
TOTAL WAIVERS AND REIMBURSEMENTS	(198,920)
Net expenses	395,524
Net investment income	938,526
Net realized gain on investments	989
Change in net assets resulting from operations	$939,515

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Changes in Net Assets

Year Ended December 31	2022	2021
Increase (Decrease) in Net Assets
Operations:
Net investment income	$938,526	$1,450
Net realized gain (loss)	989	(23)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS	939,515	1,427
Distributions to Shareholders:
Service Shares	(938,522)	(1,439)
Share Transactions:
Proceeds from sale of shares	30,810,447	31,331,222
Net asset value of shares issued to shareholders in payment of distributions declared	938,520	1,439
Cost of shares redeemed	(32,480,761)	(40,679,211)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS	(731,794)	(9,346,550)
Change in net assets	(730,801)	(9,346,562)
Net Assets:
Beginning of period	81,244,887	90,591,449
End of period	$80,514,086	$81,244,887

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Notes to Financial Statements

December 31, 2022

1. ORGANIZATION

Federated Hermes Insurance Series (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of six portfolios. The financial statements included herein are only those of Federated Hermes Government Money Fund II (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers one class of shares: Service Shares. Fund shares are available exclusively as a funding vehicle for life insurance companies writing variable life insurance policies and variable annuity contracts. The investment objective of the Fund is to provide current income consistent with stability of principal and liquidity.

The Fund operates as a government money market fund. As a government money market fund, the Fund: (1) invests at least 99.5% of its total assets in: (i) cash; (ii) securities issued or guaranteed by the United States or certain U.S. government agencies or instrumentalities; and/or (iii) repurchase agreements that are collateralized fully; (2) generally continues to use amortized cost to value its portfolio securities and transact at a stable $1.00 net asset value (NAV); and (3) has elected not to be subject to the liquidity fees and gates requirement at this time as permitted by Rule 2a-7 under the Act.

On August 11, 2022, the Fund’s Board of Trustees (the “Trustees”) approved the closure of the Primary Shares. Effective August 17, 2022, the Primary Shares were liquidated.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).

Investment Valuation

Securities are valued at amortized cost. The amortized cost method of valuation generally prescribes that an investment is valued at its acquisition cost as adjusted daily for amortization of premium or accretion of discount to the specified redemption value on the nearest call, demand or maturity date, as appropriate. If amortized cost is determined not to approximate fair value, the value of the portfolio securities will be determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.

Pursuant to Rule 2a-5 under the Act, the Trustees have designated Federated Investment Management Company (the “Adviser”) as the Fund’s valuation designee to perform any fair value determinations for securities and other assets held by the Fund. The Adviser is subject to the Trustees’ oversight and certain reporting and other requirements intended to provide the Trustees the information needed to oversee the Adviser’s fair value determinations.

The Adviser, acting through its valuation committee (“Valuation Committee”), is responsible for determining the fair value of investments. The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser’s affiliated companies and determines fair value of securities and oversees the comparison of amortized cost to market-based value. The Valuation Committee is also authorized to use pricing services to provide fair value evaluations of the current value of certain investments for purposes of monitoring the relationship of market-based value and amortized cost. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods (including key inputs and assumptions), and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Adviser. The Trustees periodically review the fair valuations made by the Valuation Committee. The Trustees have also approved the Adviser’s fair valuation and significant events procedures as part of the Fund’s compliance program and will review any changes made to the procedures.

Repurchase Agreements

The Fund may invest in repurchase agreements for short-term liquidity purposes. It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund’s custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a “securities entitlement” and exercises “control” as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

The insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund’s Adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Annual Shareholder Report

Repurchase agreements are subject to Master Netting Agreements which are agreements between the Fund and its counterparties that provide for the net settlement of all transactions and collateral with the Fund, through a single payment, in the event of default or termination. Amounts presented on the Portfolio of Investments and Statement of Assets and Liabilities are not net settlement amounts but gross. As indicated above, the cash or securities to be repurchased, as shown on the Portfolio of Investments, exceeds the repurchase price to be paid under the agreement reducing the net settlement amount to zero.

Investment Income, Gains and Losses, Expenses and Distributions

Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Other Service Fees

The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund’s Service Shares to unaffiliated financial intermediaries for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily reimburse the Fund for other service fees. In addition, unaffiliated third-party financial intermediaries may waive other service fees. This waiver can be modified or terminated at any time.

For the year ended December 31, 2022, other service fees for the Fund were as follows:

	Other Service Fees Incurred	Other Service Fees Reimbursed	Other Service Fees Waived by Unaffiliated Third Parties
Service Shares	$203,525	$(1,799)	$(67,118)

Federal Taxes

It is the Fund’s policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986 (the “Code”) and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the year ended December 31, 2022, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of December 31, 2022, tax years 2019 through 2022 remain subject to examination by the Fund’s major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

When-Issued and Delayed-Delivery Transactions

The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Other

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ materially from those estimated. The Fund applies investment company accounting and reporting guidance.

Annual Shareholder Report

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Year Ended 12/31/2022		Year Ended 12/31/2021
Primary Shares:	Shares	Amount	Shares	Amount
Shares sold	—	$—	—	$—
Shares issued to shareholders in payment of distributions declared	—	—	—	—
Shares redeemed	(100)	(100)	—	—
NET CHANGE RESULTING FROM PRIMARY SHARE TRANSACTIONS	(100)	$(100)	—	$—
	Year Ended 12/31/2022		Year Ended 12/31/2021
Service Shares:	Shares	Amount	Shares	Amount
Shares sold	30,810,447	$30,810,447	31,331,222	$31,331,222
Shares issued to shareholders in payment of distributions declared	938,520	938,520	1,439	1,439
Shares redeemed	(32,480,661)	(32,480,661)	(40,679,211)	(40,679,211)
NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS	(731,694)	$(731,694)	(9,346,550)	$(9,346,550)
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS	(731,794)	$(731,794)	(9,346,550)	$(9,346,550)

4. FEDERAL TAX INFORMATION

The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended December 31, 2022 and 2021, was as follows:

	2022	2021
Ordinary income	$938,522	$1,439

As of December 31, 2022, the components of distributable earnings on a tax-basis were as follows:

Undistributed ordinary income	$115
TOTAL	$115

The Fund used capital loss carryforwards of $889 to offset capital gains realized during the year ended December 31, 2022.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.20% of the Fund’s average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund for competitive reasons such as to maintain the Fund’s expense ratio, or as and when appropriate, to maintain positive or zero net yields. For the year ended December 31, 2022, the Adviser voluntarily waived $101,844 of its fee and voluntarily reimbursed $28,159 of other operating expenses.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated Hermes Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:

Administrative Fee	Average Daily Net Assets of the Investment Complex
0.100%	on assets up to $50 billion
0.075%	on assets over $50 billion

Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the year ended December 31, 2022, the annualized fee paid to FAS was 0.079% of average daily net assets of the Fund.

In addition, FAS may charge certain out-of-pocket expenses to the Fund.

Annual Shareholder Report

Expense Limitation

Due to the possibility of changes in market conditions and other factors, there can be no assurance that the level of waivers/reimbursement/reduction of Fund expenses reflected in the financial highlights will be maintained in the future. However, the Adviser and certain of its affiliates (which may include FAS and FSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund’s Service Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.63% (the “Fee Limit”), up to but not including the later of (the “Termination Date”): (a) May 1, 2023; or (b) the date of the Fund’s next effective Prospectus. Prior to August 17, 2022, the Fee Limit for the Primary Shares was 0.38%. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.

Directors’/Trustees’ and Miscellaneous Fees

Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Independent Directors’/Trustees’ fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.

6. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Hermes, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of December 31, 2022, there were no outstanding loans. During the year ended December 31, 2022, the program was not utilized.

7. INDEMNIFICATIONS

Under the Fund’s organizational documents, its Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund (other than liabilities arising out of their willful misfeasance, bad faith, gross negligence or reckless disregard of their duties to the Fund). In addition, in the normal course of business, the Fund provides certain indemnifications under arrangements with third parties. Typically, obligations to indemnify a third party arise in the context of an arrangement entered into by the Fund under which the Fund agrees to indemnify such third party for certain liabilities arising out of actions taken pursuant to the arrangement, provided the third party’s actions are not deemed to have breached an agreed-upon standard of care (such as willful misfeasance, bad faith, gross negligence or reckless disregard of their duties under the contract). The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet arisen. The Fund does not anticipate any material claims or losses pursuant to these arrangements at this time, and accordingly expects the risk of loss to be remote.

8. OTHER MATTERS

An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread globally. As of the date of the issuance of these financial statements, this coronavirus has resulted in, and may continue to result in, closed borders, enhanced health screenings, disruptions to healthcare service preparation and delivery, quarantines, cancellations, and disruptions to supply chains, workflow operations and consumer activity, as well as general concern and uncertainty. The impact of this coronavirus has resulted in substantial economic volatility. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic risks. The impact of this outbreak, and other epidemics and pandemics that may arise in the future, could continue to negatively affect the worldwide economy, as well as the economies of individual countries, individual companies (including certain Fund service providers and issuers of the Fund’s investments) and the markets in general in significant and unforeseen ways. In addition, governments, their regulatory agencies, or self-regulatory organizations may take actions in response to the pandemic, including significant fiscal and monetary policy changes, that may affect the instruments in which the Fund invests or the issuers of such investments. Any such impact could adversely affect the Fund’s performance.

Annual Shareholder Report

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Federated Hermes Insurance Series and the Shareholders of Federated Hermes Government Money Fund II:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of Federated Hermes Government Money Fund II (the Fund), a portfolio of Federated Hermes Insurance Series, including the portfolio of investments, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights 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 years in the two year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

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

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights 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 and financial highlights, 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 and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2022, by correspondence with custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor for one or more of Federated Hermes’ investment companies since 2006.

Boston, Massachusetts
February 15, 2023

Annual Shareholder Report

Shareholder Expense Example (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds used as variable investment options. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2022 to December 31, 2022.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

	Beginning Account Value 7/1/2022	Ending Account Value 12/31/2022	Expenses Paid During Period1
Actual:
Service Shares	$1,000	$1,011.10	$3.19
Hypothetical (assuming a 5% return before expenses):
Service Shares	$1,000	$1,022.03	$3.21

Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the

one-half-year period). The expenses shown in the table do not include the charges and expenses imposed by the insurance company under the variable insurance

product contract. Please refer to the variable insurance product prospectus for a complete listing of these expenses. The annualized net expense ratio is as

follows:

Service Shares

0.63%

Annual Shareholder Report

Board of Trustees and Trust Officers

The Board of Trustees is responsible for managing the Trust’s business affairs and for exercising all the Trust’s powers except those reserved for the shareholders. The following tables give information about each Trustee and the senior officers of the Fund. Where required, the tables separately list Trustees who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). Unless otherwise noted, the address of each person listed is 1001 Liberty Avenue, Pittsburgh, PA 15222-3779. The address of all Independent Trustees listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2022, the Trust comprised six portfolio(s), and the Federated Hermes Fund Family consisted of 33 investment companies (comprising 102 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Trustee oversees all portfolios in the Federated Hermes Fund Family and serves for an indefinite term. The Fund’s Statement of Additional Information includes additional information about Trust Trustees and is available, without charge and upon request, by calling 1-800-341-7400, Option #4.

Interested Trustees Background

Name Birth Date Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s)
J. Christopher Donahue* Birth Date: April 11, 1949 Trustee Indefinite Term Began serving: September 1993	Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd.
Thomas R. Donahue* Birth Date: October 20, 1958 Trustee Indefinite Term Began serving: May 2016	Principal Occupations: Director or Trustee of certain of the funds in the Federated Hermes Fund Family; Chief Financial Officer, Treasurer, Vice President and Assistant Secretary, Federated Hermes, Inc.; Chairman and Trustee, Federated Administrative Services; Chairman and Director, Federated Administrative Services, Inc.; Trustee and Treasurer, Federated Advisory Services Company; Director or Trustee and Treasurer, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, and Federated Investment Management Company; Director, MDTA LLC; Director, Executive Vice President and Assistant Secretary, Federated Securities Corp.; Director or Trustee and Chairman, Federated Services Company and Federated Shareholder Services Company; and Director and President, FII Holdings, Inc. Previous Positions: Director, Federated Hermes, Inc.; Assistant Secretary, Federated Investment Management Company, Federated Global Investment Management Company and Passport Research, LTD; Treasurer, Passport Research, LTD; Executive Vice President, Federated Securities Corp.; and Treasurer, FII Holdings, Inc.

Family relationships and reasons for “interested” status: J. Christopher Donahue and Thomas R. Donahue are brothers. Both are “interested” due to their beneficial ownership of shares of Federated Hermes, Inc. and the positions they hold with Federated Hermes, Inc. and its subsidiaries.

INDEPENDENT Trustees Background

Name

Birth Date

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held, Previous Position(s) and Qualifications

John T. Collins

Birth Date: January 24, 1947

Trustee

Indefinite Term

Began serving: October 2013

Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund

Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired).

Other Directorships Held: Director, KLX Energy Services Holdings, Inc. (oilfield services); former Director of

KLX Corp. (aerospace).

Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions

throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm)

and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as

Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth

Israel Deaconess Medical Center (Harvard University Affiliate Hospital).

Annual Shareholder Report

Name Birth Date Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015	Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Lead Director, Member of the Audit and Nominating and Corporate Governance Committees, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association.
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor Emerita of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (natural gas). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as Associate General Secretary of the Diocese of Pittsburgh, a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green was appointed by the Supreme Court of Pennsylvania to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); Director, Catholic Charities, Pittsburgh; and Director CNX Resources Corporation (natural gas). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint Francis University.
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber); and Director, The Golisano Children’s Museum of Naples, Florida.
Madelyn A. Reilly Birth Date: February 2, 1956 Trustee Indefinite Term Began serving: November 2020	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors, Duquesne University (Retired). Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors and Director of Risk Management and Associate General Counsel, Duquesne University. Prior to her work at Duquesne University, Ms. Reilly served as Assistant General Counsel of Compliance and Enterprise Risk as well as Senior Counsel of Environment, Health and Safety, PPG Industries. Ms. Reilly currently serves as a member of the Board of Directors of UPMC Mercy Hospital.
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CONSOL Energy Inc. (now split into two separate publicly traded companies known as CONSOL Energy Inc. and CNX Resources Corp.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and CNX Gas Company; and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm).

Annual Shareholder Report

Name

Birth Date

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held, Previous Position(s) and Qualifications

John S. Walsh

Birth Date:

November 28, 1957

Trustee

Indefinite Term

Began serving: January 1999

Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc.

(manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of

portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc.

Other Directorships Held: None.

Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career.

Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors).

OFFICERS

Name Birth Date Address Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years and Previous Position(s)
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013	Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc.
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: January 2005	Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, Inc. in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc.
John B. Fisher Birth Date: May 16, 1956 PRESIDENT Officer since: November 2004	Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Director and Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, and Federated MDTA LLC; Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and CEO of Passport Research, Ltd.; Director and President, Technology, Federated Services Company.
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015	Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement.
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: November 2002	Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments.
Robert J. Ostrowski Birth Date: April 26, 1963 Chief Investment Officer Officer since: May 2004	Principal Occupations: Robert J. Ostrowski joined Federated Hermes, Inc. in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated Hermes’ taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund’s Adviser in 2009 and served as a Senior Vice President of the Fund’s Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University.

Annual Shareholder Report

Name

Birth Date

Address

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years

and Previous Position(s)

Deborah A. Cunningham

Birth Date:

September 15, 1959

Chief Investment Officer

Officer since: June 2012

Principal Occupations: Deborah A. Cunningham was named Chief Investment Officer of Federated Hermes’ money market

products in 2004. She joined Federated Hermes in 1981 and has been a Senior Portfolio Manager since 1997

and an Executive Vice President of the Fund’s Adviser since 2009. Ms. Cunningham has received the Chartered Financial

Analyst designation and holds an M.S.B.A. in Finance from Robert Morris College.

Annual Shareholder Report

Evaluation and Approval of Advisory Contract–May 2022

Federated Hermes Government Money Fund II (the “Fund”)

At its meetings in May 2022 (the “May Meetings”), the Fund’s Board of Trustees (the “Board”), including those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the investment advisory contract between the Fund and Federated Investment Management Company (the “Adviser”) (the “Contract”) for an additional one-year term. The Board’s determination to approve the continuation of the Contract reflects the exercise of its business judgment after considering all of the information and factors believed to be relevant and appropriate on whether to approve the continuation of the existing arrangement. The information, factors and conclusions that formed the basis for the Board’s approval are summarized below.

Information Received and Review Process

At the request of the Independent Trustees, the Fund’s Chief Compliance Officer (the “CCO”) furnished to the Board in advance of its May Meetings an independent written evaluation presenting on the topics discussed below. The Board considered the CCO’s independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund’s management fee and in determining to approve the continuation of the Contract. The CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees. At the request of the Independent Trustees, the CCO Fee Evaluation Report followed the same general approach and covered the same topics as that of the report that had previously been delivered by the CCO in his capacity as “Senior Officer” prior to the elimination of the Senior Officer position in December 2017.

In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board considered information specifically prepared in connection with the approval of the continuation of the Contract that was presented at the May Meetings. In this regard, in the months preceding the May Meetings, the Board requested and reviewed written responses and supporting materials prepared by the Adviser and its affiliates (collectively, “Federated Hermes”) in response to requests posed to Federated Hermes by independent legal counsel on behalf of the Independent Trustees encompassing a wide variety of topics, including those summarized below. The Board also considered such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the Contract, which included detailed information about the Fund and Federated Hermes furnished to the Board at its meetings throughout the year and in between regularly scheduled meetings on particular matters as the need arose.

The Board’s consideration of the Contract included review of materials and information covering the following matters, among others: the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates; Federated Hermes’ business and operations; the Adviser’s investment philosophy, personnel and processes; the Fund’s investment objectives and strategies; the Fund’s short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, and relative to the Fund’s particular investment program and a group of its peer funds and/or its benchmark, as appropriate); the Fund’s investment objectives; the Fund’s fees and expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to a group of its peer funds), with due regard for contractual or voluntary expense limitations (if any); the financial condition of Federated Hermes; the Adviser’s profitability with respect to the Fund; distribution and sales activity for the Fund; and the use and allocation of brokerage commissions derived from trading the Fund’s portfolio securities (if any).

The Board also considered judicial decisions concerning allegedly excessive investment advisory fees charged to other registered funds in determining to approve the Contract. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser’s fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by the adviser to the fund and its shareholders, including the performance of the fund, its benchmark and comparable funds; (2) the adviser’s cost of providing the services and the profitability to the adviser of providing advisory services to the fund; (3) the extent to which the adviser may realize “economies of scale” as the fund grows larger and, if such economies of scale exist, whether they have been appropriately shared with the fund and its shareholders or the family of funds; (4) any “fall-out” benefits that accrue to the adviser because of its relationship with the fund, including research services received from brokers that execute fund trades and any fees paid to affiliates of the adviser for services rendered to the fund; (5) comparative fee and expense structures, including a comparison of management fees paid to the adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the adviser for what might be viewed as like services; and (6) the extent of care, conscientiousness and independence with which the fund’s board members perform their duties and their expertise, including whether they are fully informed about all facts the board deems relevant to its consideration of the adviser’s services and fees. The Board noted that the Securities and Exchange

Annual Shareholder Report

Commission (“SEC”) disclosure requirements regarding the basis for a fund board’s approval of the fund’s investment advisory contract generally align with the factors listed above. The Board was guided by these factors in its review of the Contract to the extent it considered them to be appropriate and relevant, as discussed further below. The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated Hermes on matters relating to the oversight of the other funds advised by Federated Hermes (each, a “Federated Hermes Fund” and, collectively, the (“Federated Hermes Funds”).

In addition to considering the above-referenced factors, the Board was mindful of the preferences and expectations of Fund shareholders and the potential disruptions of the Fund’s operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew the Contract. In particular, the Board recognized that many shareholders likely have invested in the Fund on the strength of Federated Hermes’ industry standing and reputation and with the expectation that Federated Hermes will have a continuing role in providing advisory services to the Fund. Thus, the Board observed that in the marketplace there are a range of investment options available to the Fund’s shareholders and such shareholders, having had the opportunity to consider other investment options, have effectively selected Federated Hermes by virtue of investing in the Fund.

In determining to approve the continuation of the Contract, the members of the Board reviewed and evaluated information and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment. While individual members of the Board may have weighed certain factors differently, the Board’s determination to approve the continuation of the Contract was based on a comprehensive consideration of all information provided to the Board throughout the year and specifically with respect to the continuation of the Contract. The Board recognized that its evaluation process is evolutionary and that the factors considered and emphasis placed on relevant factors may change in recognition of changing circumstances in the registered fund marketplace. The Independent Trustees were assisted throughout the evaluation process by independent legal counsel. In connection with their deliberations at the May Meetings, the Independent Trustees met separately in executive session with their independent legal counsel and without management present to review the relevant materials and consider their responsibilities under applicable laws. In addition, senior management representatives of Federated Hermes also met with the Independent Trustees and their independent legal counsel to discuss the materials and presentations furnished to the Board at the May Meetings. The Board considered the approval of the Contract for the Fund as part of its consideration of agreements for funds across the family of Federated Hermes Funds, but its approvals were made on a fund-by-fund basis.

Nature, Extent and Quality of Services

The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of Federated Hermes dedicated to the Fund. In this regard, the Board evaluated, among other things, the terms of the Contract and the range of services provided to the Fund by Federated Hermes. The Board considered the Adviser’s personnel, investment philosophy and process, investment research capabilities and resources, trade operations capabilities, experience and performance track record. The Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and Federated Hermes’ ability and experience in attracting and retaining qualified personnel to service the Fund. In addition, the Board noted that the Fund is a money market mutual fund that operates in accordance with the limitations set forth in Rule 2a-7 under the 1940 Act. In this connection, the Board considered the expertise of the Adviser in managing money market funds, its extensive experience with the requirements of Rule 2a-7 and its commitment to managing the Fund in accordance with these requirements. The Board also considered the Adviser’s ability to deliver competitive investment performance for the Fund when compared to the Fund’s Performance Peer Group (as defined below), which was deemed by the Board to be a useful indicator of how the Adviser is executing the Fund’s investment program. The Board also considered the additional yield support provided by Federated Hermes, in the form of voluntary fee waivers and/or expense reimbursements, in order to maintain a positive yield for the Fund in the low interest rate environment.

In addition, the Board considered the financial resources and overall reputation of Federated Hermes and its willingness to consider and make investments in personnel, infrastructure, technology, cybersecurity, business continuity planning and operational enhancements that are designed to benefit the Federated Hermes Funds. The Board noted the significant acquisition of Hermes Fund Managers Limited by Federated Hermes, which has deepened the organization’s investment management expertise and capabilities and expanded the investment process for all of the Federated Hermes Funds to have access to analytical resources related to environmental, social and governance (“ESG”) factors and issuer engagement on ESG matters. The Board considered the quality of Federated Hermes’ communications with the Board and responsiveness to Board inquiries and requests made from time to time with respect to the Fund and other Federated Hermes Funds. In this regard, the Board took into account Federated Hermes’ communications with the Board in light of the pandemic. The Board also considered that Federated Hermes is responsible for providing the Federated Hermes Funds’ officers.

Annual Shareholder Report

The Board received and evaluated information regarding Federated Hermes’ regulatory and compliance environment. The Board considered Federated Hermes’ compliance program and compliance history and reports from the CCO about Federated Hermes’ compliance with applicable laws and regulations, including responses to regulatory developments and any compliance or other issues raised by regulatory agencies. The Board also noted Federated Hermes’ support of the Federated Hermes Funds’ compliance control structure and the compliance-related resources devoted by Federated Hermes in support of the Fund’s obligations pursuant to Rule 38a-1 under the Investment Company Act of 1940, including Federated Hermes’ commitment to respond to rulemaking and other regulatory initiatives of the SEC. The Board considered Federated Hermes’ approach to internal audits and risk management with respect to the Federated Hermes Funds and its day-to-day oversight of the Federated Hermes Funds’ compliance with their investment objectives and policies as well as with applicable laws and regulations, noting that regulatory and other developments had over time led to an increase in the scope of Federated Hermes’ oversight in this regard, including in connection with the designation of the Federated Hermes Funds’ investment advisers as the administrators of the Federated Hermes Funds’ liquidity risk management program.

The Board also considered the implementation of Federated Hermes’ business continuity plans and recognized steps taken by Federated Hermes to continue to provide the same nature, extent and quality of services to the Federated Hermes Funds during the pandemic. In addition, the Board noted Federated Hermes’ commitment to maintaining high quality systems and expending substantial resources to prepare for and respond to ongoing changes due to the market, regulatory and control environments in which the Fund and its service providers operate, including changes associated with the pandemic.

The Board considered Federated Hermes’ efforts to provide shareholders in the Federated Hermes Funds with a comprehensive array of funds with different investment objectives, policies and strategies. The Board considered the expenses that Federated Hermes had incurred, as well as the entrepreneurial and other risks assumed by Federated Hermes, in sponsoring and providing on-going services to new funds to expand these opportunities for shareholders. The Board noted the benefits to shareholders of being part of the family of Federated Hermes Funds, which include the general right to exchange investments between the same class of shares without the incurrence of additional sales charges.

Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided by the Adviser to the Fund.

Fund Investment Performance

The Board considered the investment performance of the Fund. In evaluating the Fund’s investment performance, the Board considered performance results in light of the Fund’s investment objective, strategies and risks. The Board considered detailed investment reports on, and the Adviser’s analysis of, the Fund’s performance over different time periods that were provided to the Board throughout the year and in connection with the May Meetings. These reports include, among other items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to one or more relevant categories or groups of peer funds and the Fund’s benchmark index, performance attribution information and commentary on the effect of market conditions.

The Board also reviewed comparative information regarding the performance of other registered funds in the category of peer funds selected by iMoneyNet, an independent fund ranking organization (the “Performance Peer Group”). The Board noted the CCO’s view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases there may be differences in the funds’ objectives or investment management techniques, or the costs to implement the funds, even within the same Performance Peer Group.

The Fund’s performance fell below the median of the Performance Peer Group for the one-year period ended December 31, 2021. The Board discussed the Fund’s performance with the Adviser and recognized the efforts being taken by the Adviser in the context of other factors considered relevant by the Board. The Board also considered the relatively tight dispersion of performance data with respect to the Fund and its Peer Group.

Based on these considerations, the Board concluded that it had continued confidence in the Adviser’s overall capabilities to manage the Fund.

Fund Expenses

Annual Shareholder Report

transfer agency fees) relative to an appropriate group of peer funds compiled by Federated Hermes from the category of peer funds selected by iMoneyNet (the “Expense Peer Group”). The Board received a description of the methodology used to select the Expense Peer Group from the overall iMoneyNet category. The Board also reviewed comparative information regarding the fees and expenses of the broader group of funds in the overall iMoneyNet category.

While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board noted that it found the use of such comparisons to be relevant to its evaluation. The Board focused on comparisons with other similar registered funds more heavily than non-registered fund products or services because such comparisons are believed to be more relevant. The Board considered that other registered funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle, in fact, chosen and maintained by the Fund’s shareholders. The Board noted that the range of such other registered funds’ fees and expenses, therefore, appears to be a relevant indicator of what investors have found to be reasonable in the marketplace in which the Fund competes.

The Board noted that, for the year ended December 31, 2021, the Fund’s investment advisory fee was waived in its entirety. The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund with the Adviser and noted the position of the Fund’s contractual advisory fee rate and other expenses relative to its Expense Peer Group. In this regard, the Board noted that the contractual advisory fee rate was below the median of the Expense Peer Group, and the Board was satisfied that the overall expense structure of the Fund remained competitive.

The Board also received and considered information about the fees charged by Federated Hermes for providing advisory services to other types of clients with investment strategies similar to those of the Federated Hermes Funds, including non-registered fund clients (such as institutional separate accounts) and third-party unaffiliated registered funds for which the Adviser or its affiliates serve as sub-adviser. The Board noted the CCO’s conclusion that non-registered fund clients are inherently different products due to the following differences, among others: (i) different types of targeted investors; (ii) different applicable laws and regulations; (iii) different legal structures; (iv) different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; (v) the time spent by portfolio managers and their teams (among other personnel across various departments, including legal, compliance and risk management) in reviewing securities pricing and fund liquidity; (vi) different administrative responsibilities; (vii) different degrees of risk associated with management; and (viii) a variety of different costs. The Board also considered information regarding the differences in the nature of the services required for Federated Hermes to manage its proprietary registered fund business versus managing a discrete pool of assets as a sub-adviser to another institution’s registered fund, noting the CCO’s view that Federated Hermes generally performs significant additional services and assumes substantially greater risks in managing the Fund and other Federated Hermes Funds than in its role as sub-adviser to an unaffiliated third-party registered fund. The Board noted that the CCO did not consider the fees for providing advisory services to other types of clients to be determinative in judging the appropriateness of the Federated Hermes Funds’ advisory fees.

Based on these considerations, the Board concluded that the fees and total operating expenses of the Fund, in conjunction with other matters considered, are reasonable in light of the services provided.

Profitability

The Board received and considered profitability information furnished by Federated Hermes, as requested by the CCO. Such profitability information included revenues reported on a fund-by-fund basis and estimates of the allocation of expenses made on a fund-by-fund basis, using allocation methodologies specified by the CCO and described to the Board. The Board considered the CCO’s view that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs on a fund-by-fund basis continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable because a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated Hermes Fund and may produce unintended consequences. In addition, the Board considered the CCO’s view that the allocation methodologies used by Federated Hermes in estimating profitability for purposes of reporting to the Board in connection with the continuation of the Contract are consistent with the methodologies previously reviewed by an independent consultant. The Board noted that the independent consultant had previously conducted a review of the allocation methodologies and reported that, although there is no single best method to allocate expenses, the methodologies used by Federated Hermes are reasonable. The Board noted the impact of the additional yield support provided by Federated Hermes, in the form of voluntary fee waivers and/or expense reimbursements, on the profitability of the Fund to the Adviser.

Annual Shareholder Report

The Board also reviewed information compiled by Federated Hermes comparing its profitability information to other publicly held fund management companies, including information regarding profitability trends over time. The Board considered the CCO’s conclusion that, based on such profitability information, Federated Hermes’ profit margins did not appear to be excessive. The Board also considered the CCO’s view that Federated Hermes appeared financially sound, with the resources necessary to fulfill its obligations under its contracts with the Federated Hermes Funds.

Economies of Scale

The Board received and considered information about the notion of possible realization of “economies of scale” as a fund grows larger, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. In this regard, the Board considered that Federated Hermes has made significant and long-term investments in areas that support all of the Federated Hermes Funds, such as: personnel, processes and tools for portfolio management, including the use of market data on which portfolio managers make investment decisions; trading operations; ESG integration and issuer engagement on ESG matters; shareholder services; compliance; business continuity; cybersecurity; internal audit and risk management functions; and technology that supports the provision of investment management services. The Board noted that Federated Hermes’ investments in these areas are extensive and are designed to provide enhanced services to the Federated Hermes Funds and their shareholders. The Board considered that the benefits of these investments are likely to be shared with the family of Federated Hermes Funds as a whole. In addition, the Board considered that fee waivers and expense reimbursements are another means for potential economies of scale to be shared with shareholders and can provide protection from an increase in expenses if a Federated Hermes Fund’s assets decline. The Board considered that, in order for the Federated Hermes Funds to remain competitive in the marketplace, Federated Hermes has frequently waived fees and/or reimbursed expenses for the Federated Hermes Funds and has disclosed to shareholders and/or reported to the Board its intention to do so (or continue to do so) in the future. The Board also considered Federated Hermes’ reductions in contractual management fees for certain Federated Hermes Funds during the prior year, including in response to the CCO’s recommendations in the prior year’s CCO Fee Evaluation Report, which have resulted in benefits being realized by shareholders.

The Board also considered reports on adviser-paid fees (commonly referred to as “revenue sharing”) that were provided to the Board throughout the year and in connection with the May Meetings. The Board considered that Federated Hermes and the CCO believe that this information should be viewed to determine if there was an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, and should not be viewed to evaluate the reasonableness of advisory fees. The Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any uniform methodology or pattern with respect to structuring fund advisory fees with breakpoints that serve to reduce the fees as a fund attains a certain size.

Other Benefits

The Board considered information regarding the compensation and other ancillary (or “fall-out”) benefits that Federated Hermes derived from its relationships with the Federated Hermes Funds. The Board noted that, in addition to receiving advisory fees under the Federated Hermes Funds’ investment advisory contracts, Federated Hermes’ affiliates also receive fees for providing other services to the Federated Hermes Funds under separate contracts (e.g., for serving as the Federated Hermes Funds’ administrator and distributor). In this regard, the Board considered that certain of Federated Hermes’ affiliates provide distribution and shareholder services to the Federated Hermes Funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The Board also received and considered information detailing any indirect benefit that Federated Hermes may derive from its receipt of research services from brokers who execute portfolio trades for the Federated Hermes Funds.

Conclusions

The Board considered: (i) the CCO’s conclusion that his observations and the information accompanying the CCO Fee Evaluation Report show that the management fee for the Fund is reasonable; and (ii) the CCO’s recommendation that the Board approve the management fee. The Board noted that, under these circumstances, no changes were recommended to, and no objection was raised to the continuation of, the Contract by the CCO. The CCO also recognized that the Board’s evaluation of the Federated Hermes Funds’ advisory and sub-advisory arrangements is a continuing and ongoing process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its ongoing oversight of the Federated Hermes Funds.

Annual Shareholder Report

considerations identified above were necessarily deemed to be relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were deemed to be relevant, the Board’s determination to approve the continuation of the Contract reflects its view that Federated Hermes’ performance and actions provided a satisfactory basis to support the determination to approve the continuation of the existing arrangement.

Annual Shareholder Report

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund’s portfolio is available, without charge and upon request, by calling 1-800-341-7400, Option #4. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at FederatedInvestors.com/FundInformation. Form N-PX filings are also available at the SEC’s website at sec.gov.

Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings as of the close of each month on “Form N-MFP.” Form N-MFP is available on the SEC’s website at sec.gov. You may access Form N-MFP via the link to the Fund and share class name at FederatedInvestors.com.

Annual Shareholder Report

Variable investment options are not bank deposits or obligations, are not guaranteed by any bank and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Investment in variable investment options involves investment risk, including the possible loss of principal.

You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

This Report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund’s Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.

Federated Hermes Government Money Fund II

Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561

Federated Securities Corp., Distributor

CUSIP 313916504

G00842-01 (2/23)

Annual Shareholder Report

December 31, 2022

Share Class

Primary

Service

Federated Hermes High Income Bond Fund II

A Portfolio of Federated Hermes Insurance Series

Dear Valued Shareholder,

We are pleased to present the Annual Shareholder Report for your fund covering the period from January 1, 2022 through December 31, 2022. This report includes Management’s Discussion of Fund Performance, a complete listing of your fund’s holdings, performance information and financial statements along with other important fund information.

Thank you for investing with us. We hope you find this information useful and look forward to keeping you informed.

Sincerely,

John B. Fisher, President

Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee

CONTENTS

Management’s Discussion of Fund Performance	1
Portfolio of Investments Summary Table	4
Portfolio of Investments	5
Financial Highlights	17
Statement of Assets and Liabilities	19
Statement of Operations	20
Statement of Changes in Net Assets	21
Notes to Financial Statements	22
Report of Independent Registered Public Accounting Firm	27
Shareholder Expense Example	28
Board of Trustees and Trust Officers	29
Evaluation and Approval of Advisory Contract	33
Liquidity Risk Management Program– Annual Evaluation of Adequacy and Effectiveness	38
Voting Proxies on Fund Portfolio Securities	39
Quarterly Portfolio Schedule	39

Management’s Discussion of Fund Performance (unaudited)

The total return of Federated Hermes High Income Bond Fund II (the “Fund”), based on net asset value for the 12-month reporting period ended December 31, 2022, was -11.78% for the Primary Shares and -11.92% for the Service Shares. The total return of the Fund’s Primary Shares consisted of 4.65% current income and -16.43% of depreciation in the net asset value of the Fund’s shares. The total return of the Bloomberg US Corporate High Yield 2% Issuer Capped Index (BHY2%ICI),1 a broad-based securities market index, was -11.18% during the same period. The total return of the Lipper Variable Underlying High Yield Funds Average (LVHYFA),2 a peer group average for the Fund, was -9.47% during the period. The Fund’s and LVHYFA’s total returns for the most recently completed fiscal year reflected actual cash flows, transaction costs and expenses which were not reflected in the total return of the BHY2%ICI.

During the reporting period, the most significant factors affecting the Fund’s performance relative to the BHY2%ICI were: (1) the allocation among industry sectors, (2) the selection of individual securities and (3) the duration3 of the Fund’s holdings.

The following discussion will focus on the performance of the Fund’s Primary Shares relative to the BHY2%ICI.

MARKET OVERVIEW

The major factors influencing markets during the period under review were concerns about the economy and inflation. Economic growth started the year slowly as the lingering impact of the pandemic, the outbreak of war in Ukraine, supply chain issues and surging prices, especially for energy and food, caused major distortions. Global central banks, including the Federal Reserve, responded to the surge in prices by aggressively raising short term interest rates. Longer term rates also rose, although less than short term rates, which resulted in an inverted yield curve.4 This raised further concerns about the economy. However, the second half of the year saw economic growth surprise to the upside as a robust job market, rising wages, declining pandemic concerns and normalizing supply chains provided support. Corporate earnings also proved resilient as companies were able to aggressively raise prices to offset surging input costs and rising wages while demand was supported by the strong jobs market and the benefits of the reopening from the pandemic. Default rates and credit spreads for high yield securities both climbed modestly higher. The overall impact of these factors can be illustrated by the change in credit spreads between the Credit Suisse High Yield Bond Index5 and U.S. Treasury securities with similar maturities which began the period at 355 basis points, peaked in early July at 606 basis points before declining to end the fiscal year at 499 basis points. Within the high-yield6 market, major industry sectors that substantially outperformed the overall BHY2%ICI during the reporting period included: Oil Field Services, Aerospace and Defense, Gaming, Independent Energy and Metals & Mining. Major industry sectors that substantially underperformed the overall BHY2%ICI during the reporting period included: Pharmaceuticals, Retail, Wireless Telecommunications, Media & Entertainment and Cable & Satellite. From a quality perspective, the B-rated sector led the way with a total return of -10.26% followed by the BB-rated sector at -10.77%. The CCC-rated sector, perhaps reflecting some economic concerns, lagged with a return of -16.29%.

Sector Allocation

The Fund was positively impacted by its sector allocation relative to the BHY2%ICI. The Fund was positively impacted by its overweight positions in the strong performing Insurance - P&C, Oil Field Services and Packaging industry sectors. The Fund was also positively impacted by its underweight positions in the poor performing Retail, Wireline Telecommunications and Wireless Telecommunications sectors. The Fund’s cash holdings also positively impacted performance during the period. The Fund was negatively impacted by its overweight positions in the poor performing Pharmaceuticals, Media & Entertainment and Cable & Satellite sectors. It was also negatively impacted by its underweight positions in the Refining, Other Industrials and Airline sectors.

Annual Shareholder Report

Security Selection

The Fund’s security selection had a negative impact on performance relative to the BHY2%ICI. Security selection in the Technology, Pharmaceuticals, Media & Entertainment, Healthcare, Chemicals, Gaming, Building Materials, Finance Companies, Midstream and Consumer Cyclical Services sectors negatively impacted performance. Specific high-yield issuers held by the Fund that negatively impacted performance relative to the BBHY2%ICI included: Audacy, Inc., Mallinckrodt International, Rackspace Technology, Inc., CSC Holdings and Bausch Health Companies. The Fund was positively impacted by security selection in the Insurance–P&C, Retail, Independent Energy, Wireless Telecommunications, Oil Field Services, Food & Beverage, Consumer Products and Automotive sectors. Specific high-yield issuers held by the Fund that positively impacted performance relative to the BHY2%ICI included: Hub International Limited, Clarios Global LP, USIS Merger Subsidiary, Inc., Garda World Security Services and Flex Acquisition. The Fund also benefitted from its equity position in Superior Energy Services, Inc.

DURATION

The Fund began the fiscal year with a duration shorter than the BHY2%ICI. Given the substantial increase in the general interest rate7 level during the reporting period as well as the increase in credit spreads, the shorter duration had a positive impact early in the period. At the end of the fiscal year, the Fund’s duration was modestly less than the BHY2%ICI.

Please see the footnotes to the line graph below for definitions of, and further information about, the BHY2%ICI.

Please see the footnotes to the line graph below for definitions of, and further information about, the Lipper Peer Group.

Duration is a measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.

The yield curve is a graph showing the comparative yields of securities in a particular class according to maturity. Securities on the long end of the yield curve have longer maturities.

Credit Suisse High Yield Bond Index serves as a benchmark to evaluate the performance of low-quality bonds. Low-quality is defined as those bonds in the range from “BB” to “CCC” and defaults. The index is unmanaged, and it is not possible to invest directly in an index.

High-yield, lower-rated securities generally entail greater market, credit and liquidity risks than investment-grade securities and may include higher volatility and a higher risk of default.

Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices.

Annual Shareholder Report

FUND PERFORMANCE AND GROWTH OF A $10,000 INVESTMENT

The graph below illustrates the hypothetical investment of $10,0001 in the Federated Hermes High Income Bond Fund II (the “Fund”) from December 31, 2012 to December 31, 2022, compared to the Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index (BHY2%ICI)2 and the Lipper Variable Underlying High Yield Funds Average (LVHYFA).3 The Average Annual Total Returns table below shows returns for each class averaged over the stated periods.

Growth of a $10,000 Investment

Growth of $10,000 as of December 31, 2022

Average Annual Total Returns for the Period Ended 12/31/2022

	1 Year	5 Years	10 Years
Primary Shares	-11.78%	1.59%	3.58%
Service Shares	-11.92%	1.35%	3.33%
BHY2%ICI	-11.18%	2.30%	4.03%
LVHYFA	-9.47%	1.91%	3.39%

Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance of a variable investment option changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, contact your insurance company. The performance information presented does not include the charges and expenses imposed by the insurance company under the variable insurance product contract. The inclusion of such charges would lower performance. Please refer to the variable insurance product prospectus for a complete listing of these expenses. Fund shares are available exclusively as a funding vehicle for life insurance companies writing variable life insurance policies and variable annuity contracts. Variable investment options are not obligations of or guaranteed by any bank and are not federally insured.

The Fund’s performance assumes the reinvestment of all dividends and distributions. The BHY2%ICI and the LVHYFA have been adjusted to reflect reinvestment of dividends on securities in the index and average.

The BHY2%ICI is an issuer-constrained version of the Bloomberg U.S. Corporate High Yield Index that measures the market of USD-denominated, noninvestment-grade, fixed-rate, taxable corporate bonds. The index follows the same rules as the uncapped index but limits the exposure of each issuer to 2% of the total market value and redistributes any excess market value index-wide on a pro-rata basis. The BHY2%ICI is not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission (SEC) requires to be reflected in the Fund’s performance. The index is unmanaged and unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.

Lipper figures represent the average of the total returns reported by all funds designated by Lipper, Inc., as falling into the respective category and is not adjusted to reflect any sales charges. The Lipper figures in the Growth of a $10,000 Investment line graph are based on historical return information published by Lipper and reflect the return of the funds comprising the category in the year of publication. Because the funds designated by Lipper as falling into the category can change over time, the Lipper figures in the line graph may not match the Lipper figures in the Average Annual Total Returns table, which reflect the return of the funds that currently comprise the category.

Annual Shareholder Report

Portfolio of Investments Summary Table (unaudited)

At December 31, 2022, the Fund’s index composition1 was as follows:

Index Classification	Percentage of Total Net Assets
Technology	8.6%
Cable Satellite	8.3%
Media Entertainment	7.0%
Midstream	6.9%
Insurance - P&C	6.3%
Health Care	6.2%
Automotive	5.5%
Packaging	5.2%
Independent Energy	4.8%
Gaming	4.2%
Building Materials	3.6%
Other2	29.4%
Cash Equivalents3	2.3%
Other Assets and Liabilities - Net4	1.7%
Total	100%

1	Index classifications are based upon, and individual portfolio securities are assigned to, the classifications and sub-classifications of the Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index (BHY2%ICI). Individual portfolio securities that are not included in the BHY2%ICI are assigned to an index classification by the Fund’s Adviser.
2	For purposes of this table, index classifications which constitute less than 3.5% of the Fund’s total net assets have been aggregated under the designation “Other.”
3	Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements.
4	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Annual Shareholder Report

Portfolio of Investments

December 31, 2022

Principal Amount or Shares		Value
	CORPORATE BONDS—95.3%
	Aerospace/Defense—1.6%
$ 475,000	TransDigm, Inc., Sec. Fac. Bond, 144A, 6.250%, 3/15/2026	$ 469,485
450,000	TransDigm, Inc., Sr. Sub., 6.875%, 5/15/2026	440,129
775,000	TransDigm, Inc., Sr. Sub., Series WI, 5.500%, 11/15/2027	729,337
100,000	TransDigm, Inc., Sr. Sub., Series WI, 7.500%, 3/15/2027	99,099
175,000	TransDigm, Inc., Sr. Sub. Note, Series WI, 4.625%, 1/15/2029	154,179
	TOTAL	1,892,229
	Airlines—0.3%
225,000	American Airlines, Inc./AAdvantage Loyalty IP Ltd., 144A, 5.500%, 4/20/2026	216,765
150,000	American Airlines, Inc./AAdvantage Loyalty IP Ltd., 144A, 5.750%, 4/20/2029	137,364
	TOTAL	354,129
	Automotive—5.5%
550,000	Adient Global Holdings Ltd., Sr. Unsecd. Note, 144A, 4.875%, 8/15/2026	512,842
22,000	Clarios Global LP, Sec. Fac. Bond, 144A, 6.750%, 5/15/2025	22,083
50,000	Dana Financing Lux Sarl, Sr. Unsecd. Note, 144A, 5.750%, 4/15/2025	49,009
25,000	Dana, Inc., Sr. Unsecd. Note, 4.250%, 9/1/2030	20,177
150,000	Dana, Inc., Sr. Unsecd. Note, 4.500%, 2/15/2032	120,163
125,000	Dana, Inc., Sr. Unsecd. Note, 5.375%, 11/15/2027	116,167
600,000	Dornoch Debt Merger Sub, Inc., Sr. Unsecd. Note, 144A, 6.625%, 10/15/2029	421,684
550,000	Ford Motor Credit Co. LLC, Sr. Unsecd. Note, 3.375%, 11/13/2025	498,181
200,000	Ford Motor Credit Co. LLC, Sr. Unsecd. Note, 4.000%, 11/13/2030	164,561
300,000	Ford Motor Credit Co. LLC, Sr. Unsecd. Note, 4.063%, 11/1/2024	288,682
275,000	Ford Motor Credit Co. LLC, Sr. Unsecd. Note, 4.125%, 8/17/2027	246,756
200,000	Ford Motor Credit Co. LLC, Sr. Unsecd. Note, 4.271%, 1/9/2027	181,240
450,000	Ford Motor Credit Co. LLC, Sr. Unsecd. Note, 5.113%, 5/3/2029	408,510
325,000	Ford Motor Credit Co. LLC, Sr. Unsecd. Note, 5.125%, 6/16/2025	313,151
500,000	Ford Motor Credit Co. LLC, Sr. Unsecd. Note, Series GMTN, 4.389%, 1/8/2026	466,877
200,000	IHO Verwaltungs GmbH, Sec. Fac. Bond, 144A, 6.000%, 5/15/2027	175,905
350,000	IHO Verwaltungs GmbH, Sec. Fac. Bond, 144A, 6.375%, 5/15/2029	296,389
22,000	KAR Auction Services, Inc., Sr. Unsecd. Note, 144A, 5.125%, 6/1/2025	21,527
1,325,000	Panther BF Aggregator 2 LP, Sr. Unsecd. Note, 144A, 8.500%, 5/15/2027	1,296,587
725,000	Real Hero Merger Sub 2, Inc., Sr. Unsecd. Note, 144A, 6.250%, 2/1/2029	497,930
300,000	Schaeffler Verwaltung ZW, 144A, 4.750%, 9/15/2026	260,083
	TOTAL	6,378,504
	Building Materials—3.6%
25,000	Abc Supply Co., Inc., Sr. Unsecd. Note, 144A, 3.875%, 11/15/2029	20,468
150,000	American Builders & Contractors Supply Co., Inc., 144A, 4.000%, 1/15/2028	134,088
225,000	Camelot Return Merger SU, Sec. Fac. Bond, 144A, 8.750%, 8/1/2028	206,758
175,000	Cornerstone Building Brands, Sr. Unsecd. Note, 144A, 6.125%, 1/15/2029	123,527
625,000	Cp Atlas Buyer, Inc., Sr. Unsecd. Note, 144A, 7.000%, 12/1/2028	465,003
525,000	Foundation Building Materials, Inc., Sr. Unsecd. Note, 144A, 6.000%, 3/1/2029	395,442
350,000	Gyp Holdings III Corp., Sr. Unsecd. Note, 144A, 4.625%, 5/1/2029	286,219
175,000	Interface, Inc., Sr. Unsecd. Note, 144A, 5.500%, 12/1/2028	144,731
75,000	MIWD Holdco II LLC/MIWD Finance Corp., Sr. Unsecd. Note, 144A, 5.500%, 2/1/2030	59,809
500,000	SRS Distribution, Inc., Sr. Unsecd. Note, 144A, 6.000%, 12/1/2029	398,577
400,000	SRS Distribution, Inc., Sr. Unsecd. Note, 144A, 6.125%, 7/1/2029	323,928
375,000	Standard Industries, Inc., Sr. Unsecd. Note, 144A, 3.375%, 1/15/2031	282,971
125,000	Standard Industries, Inc., Sr. Unsecd. Note, 144A, 4.375%, 7/15/2030	102,126

Annual Shareholder Report

Principal Amount or Shares			Value
		CORPORATE BONDS—continued
		Building Materials—continued
$ 750,000		Standard Industries, Inc., Sr. Unsecd. Note, 144A, 5.000%, 2/15/2027	$ 693,164
400,000		White Cap Buyer LLC, Sr. Unsecd. Note, 144A, 6.875%, 10/15/2028	346,657
200,000		White Cap Parent LLC, Sr. Sub. Secd. Note, 144A, 8.250%, 3/15/2026	173,148
		TOTAL	4,156,616
		Cable Satellite—8.3%
275,000		CCO Holdings LLC/Cap Corp., Sr. Unsecd. Note, 144A, 4.250%, 2/1/2031	221,210
250,000		CCO Holdings LLC/Cap Corp., Sr. Unsecd. Note, 144A, 4.250%, 1/15/2034	185,000
225,000		CCO Holdings LLC/Cap Corp., Sr. Unsecd. Note, 144A, 4.500%, 6/1/2033	173,080
900,000		CCO Holdings LLC/Cap Corp., Sr. Unsecd. Note, 144A, 4.750%, 3/1/2030	778,230
750,000		CCO Holdings LLC/Cap Corp., Sr. Unsecd. Note, 144A, 5.000%, 2/1/2028	682,646
75,000		CCO Holdings LLC/Cap Corp., Sr. Unsecd. Note, 144A, 5.125%, 5/1/2027	70,070
275,000		CCO Holdings LLC/Cap Corp., Sr. Unsecd. Note, 144A, 5.375%, 6/1/2029	249,294
250,000		CSC Holdings LLC, Sr. Unsecd. Note, 5.250%, 6/1/2024	233,125
225,000		CSC Holdings LLC, Sr. Unsecd. Note, 144A, 3.375%, 2/15/2031	147,098
325,000		CSC Holdings LLC, Sr. Unsecd. Note, 144A, 4.125%, 12/1/2030	230,111
300,000		CSC Holdings LLC, Sr. Unsecd. Note, 144A, 4.500%, 11/15/2031	208,707
450,000		CSC Holdings LLC, Sr. Unsecd. Note, 144A, 4.625%, 12/1/2030	249,678
475,000		CSC Holdings LLC, Sr. Unsecd. Note, 144A, 5.750%, 1/15/2030	268,943
450,000		CSC Holdings LLC, Sr. Unsecd. Note, 144A, 6.500%, 2/1/2029	368,827
350,000		CSC Holdings LLC, Sr. Unsecd. Note, 144A, 7.500%, 4/1/2028	238,770
275,000		DIRECTV Holdings LLC, Sec. Fac. Bond, 144A, 5.875%, 8/15/2027	246,554
225,000		DISH DBS Corp., Sec. Fac. Bond, 144A, 5.750%, 12/1/2028	180,000
50,000		DISH DBS Corp., Sr. Unsecd. Note, 7.375%, 7/1/2028	35,456
275,000		DISH DBS Corp., Sr. Unsecd. Note, 7.750%, 7/1/2026	222,324
575,000		DISH DBS Corp., Sr. Unsecd. Note, Series WI, 5.125%, 6/1/2029	372,017
175,000		DISH Network Corp., Sec. Fac. Bond, 144A, 11.750%, 11/15/2027	180,451
325,000	1,2,3	Intelsat Jackson Holdings S.A., Sr. Unsecd. Note, 5.500%, 8/1/2023	0
225,000	1,2,3	Intelsat Jackson Holdings S.A., Sr. Unsecd. Note, 144A, 8.500%, 10/15/2024	0
75,000		Sirius XM Radio, Inc., Sr. Unsecd. Note, 144A, 3.125%, 9/1/2026	66,689
300,000		Sirius XM Radio, Inc., Sr. Unsecd. Note, 144A, 3.875%, 9/1/2031	234,628
150,000		Sirius XM Radio, Inc., Sr. Unsecd. Note, 144A, 4.000%, 7/15/2028	130,833
300,000		Sirius XM Radio, Inc., Sr. Unsecd. Note, 144A, 4.125%, 7/1/2030	248,240
50,000		Sirius XM Radio, Inc., Sr. Unsecd. Note, 144A, 5.000%, 8/1/2027	46,328
450,000		Sirius XM Radio, Inc., Sr. Unsecd. Note, 144A, 5.500%, 7/1/2029	411,766
850,000		Telenet Finance Luxembourg, Sec. Fac. Bond, 144A, 5.500%, 3/1/2028	773,500
625,000		UPC Broadband Finco BV, Sr. Note, 144A, 4.875%, 7/15/2031	521,131
325,000		Virgin Media Finance PLC, Sr. Unsecd. Note, 144A, 5.000%, 7/15/2030	261,201
200,000		Virgin Media Secured Finance PLC, Sec. Fac. Bond, 144A, 4.500%, 8/15/2030	167,440
200,000		Virgin Media Secured Finance PLC, Sec. Fac. Bond, 144A, 5.500%, 5/15/2029	179,613
200,000		Vmed O2 UK Financing I PLC, Sec. Fac. Bond, 144A, 4.250%, 1/31/2031	162,354
250,000		Vmed O2 UK Financing I PLC, Sr. Note, 144A, 4.750%, 7/15/2031	203,576
375,000		VZ Secured Financing B.V., Sec. Fac. Bond, 144A, 5.000%, 1/15/2032	305,412
200,000		Ziggo Bond Co. BV, Sr. Unsecd. Note, 144A, 5.125%, 2/28/2030	161,827
275,000		Ziggo Finance BV, Sr. Unsecd. Note, 144A, 6.000%, 1/15/2027	256,300
		TOTAL	9,672,429
		Chemicals—2.8%
150,000		Ashland LLC, Sr. Unsecd. Note, 144A, 3.375%, 9/1/2031	120,086
150,000		Axalta Coat/Dutch Holding BV, Sr. Unsecd. Note, 144A, 4.750%, 6/15/2027	138,893
200,000		Cheever Escrow Issuer, Sec. Fac. Bond, 144A, 7.125%, 10/1/2027	191,759
425,000		Compass Minerals International, Inc., Sr. Unsecd. Note, 144A, 4.875%, 7/15/2024	411,209

Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Chemicals—continued
$ 300,000	Element Solutions, Inc., Sr. Unsecd. Note, 144A, 3.875%, 9/1/2028	$ 255,480
175,000	H.B. Fuller Co., Sr. Unsecd. Note, 4.250%, 10/15/2028	155,473
500,000	Herens Holdco S.a.r.l., Sec. Fac. Bond, 144A, 4.750%, 5/15/2028	374,352
125,000	Illuminate Buyer LLC/Illuminate Holdings IV, Inc., Sr. Unsecd. Note, 144A, 9.000%, 7/1/2028	104,856
675,000	Koppers, Inc., Sr. Unsecd. Note, 144A, 6.000%, 2/15/2025	642,316
200,000	Olympus Water US Holding Corp., Sec. Fac. Bond, 144A, 4.250%, 10/1/2028	162,631
350,000	Olympus Water US Holding Corp., Sr. Unsecd. Note, 144A, 6.250%, 10/1/2029	266,177
350,000	Polar US Borrower LLC, Sr. Unsecd. Note, 144A, 6.750%, 5/15/2026	130,296
200,000	SPCM SA, Sr. Unsecd. Note, 144A, 3.375%, 3/15/2030	161,260
200,000	WR Grace Holdings LLC, Sr. Unsecd. Note, 144A, 5.625%, 8/15/2029	161,954
	TOTAL	3,276,742
	Construction Machinery—0.7%
475,000	H&E Equipment Services, Inc., Sr. Unsecd. Note, 144A, 3.875%, 12/15/2028	405,434
175,000	United Rentals North America, Inc., Sr. Unsecd. Note, 3.750%, 1/15/2032	142,998
75,000	United Rentals North America, Inc., Sr. Unsecd. Note, 4.000%, 7/15/2030	64,243
25,000	United Rentals, Inc., Sr. Unsecd. Note, 3.875%, 2/15/2031	21,014
138,000	United Rentals, Inc., Sr. Unsecd. Note, 5.500%, 5/15/2027	136,458
	TOTAL	770,147
	Consumer Cyclical Services—2.6%
225,000	Allied Universal Holdco LLC, Sec. Fac. Bond, 144A, 6.625%, 7/15/2026	206,338
425,000	Allied Universal Holdco LLC, Sr. Unsecd. Note, 144A, 6.000%, 6/1/2029	309,000
850,000	Allied Universal Holdco LLC, Sr. Unsecd. Note, 144A, 9.750%, 7/15/2027	741,327
125,000	Garda World Security Corp., Sec. Fac. Bond, 144A, 4.625%, 2/15/2027	110,587
325,000	Garda World Security Corp., Sr. Unsecd. Note, 144A, 6.000%, 6/1/2029	264,501
325,000	Go Daddy Operating Co. LLC/GD Finance Co., Inc., Sr. Unsecd. Note, 144A, 5.250%, 12/1/2027	308,159
979,000	GW B-CR Security Corp., Sr. Unsecd. Note, 144A, 9.500%, 11/1/2027	944,345
375,000	Signal Parent, Inc., Sr. Unsecd. Note, 144A, 6.125%, 4/1/2029	114,844
	TOTAL	2,999,101
	Consumer Products—2.0%
800,000	BCPE Empire Holdings, Inc., Sr. Unsecd. Note, 144A, 7.625%, 5/1/2027	718,424
600,000	Diamond BC BV, Sr. Unsecd. Note, 144A, 4.625%, 10/1/2029	482,280
200,000	Edgewell Personal Care Co., Sr. Unsecd. Note, 144A, 4.125%, 4/1/2029	170,785
150,000	Edgewell Personal Care Co., Sr. Unsecd. Note, 144A, 5.500%, 6/1/2028	140,550
375,000	Energizer Holdings, Inc., Sr. Unsecd. Note, 144A, 4.375%, 3/31/2029	318,622
275,000	Energizer Holdings, Inc., Sr. Unsecd. Note, 144A, 4.750%, 6/15/2028	238,756
175,000	Energizer Holdings, Inc., Sr. Unsecd. Note, 144A, 6.500%, 12/31/2027	166,764
125,000	Prestige Brands, Inc., Sr. Unsecd. Note, 144A, 3.750%, 4/1/2031	103,243
	TOTAL	2,339,424
	Diversified Manufacturing—1.0%
850,000	Gates Global LLC, Sr. Unsecd. Note, 144A, 6.250%, 1/15/2026	821,567
125,000	WESCO Distribution, Inc., Sr. Unsecd. Note, 144A, 7.125%, 6/15/2025	126,839
200,000	WESCO Distribution, Inc., Sr. Unsecd. Note, 144A, 7.250%, 6/15/2028	203,044
	TOTAL	1,151,450
	Finance Companies—1.9%
450,000	Navient Corp., Sr. Unsecd. Note, 5.500%, 3/15/2029	367,862
125,000	Navient Corp., Sr. Unsecd. Note, 6.750%, 6/25/2025	120,207
175,000	Navient Corp., Sr. Unsecd. Note, 6.750%, 6/15/2026	166,169
200,000	Quicken Loans LLC/Quicken Loans Co-Issuer, Inc., Sr. Unsecd. Note, 144A, 3.625%, 3/1/2029	158,820
225,000	Quicken Loans LLC/Quicken Loans Co-Issuer, Inc., Sr. Unsecd. Note, 144A, 3.875%, 3/1/2031	172,271
225,000	Rocket Mortgage Co-Issuer, Inc., Sr. Unsecd. Note, 144A, 2.875%, 10/15/2026	193,244

Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Finance Companies—continued
$ 250,000	Rocket Mortgage Co-Issuer, Inc., Sr. Unsecd. Note, 144A, 4.000%, 10/15/2033	$ 187,076
425,000	United Shore Financial Services, Sr. Unsecd. Note, 144A, 5.500%, 11/15/2025	383,384
350,000	United Wholesale Mortgage LLC, Sr. Unsecd. Note, 144A, 5.500%, 4/15/2029	278,933
225,000	United Wholesale Mortgage LLC, Sr. Unsecd. Note, 144A, 5.750%, 6/15/2027	194,020
	TOTAL	2,221,986
	Food & Beverage—1.9%
400,000	Aramark Services, Inc., Sr. Unsecd. Note, 144A, 5.000%, 4/1/2025	390,935
350,000	Bellring Brands, Inc., Sr. Unsecd. Note, 144A, 7.000%, 3/15/2030	337,234
200,000	Performance Food Group, Inc., Sr. Unsecd. Note, 144A, 4.250%, 8/1/2029	173,560
25,000	Performance Food Group, Inc., Sr. Unsecd. Note, 144A, 5.500%, 10/15/2027	23,632
200,000	Post Holdings, Inc., Sr. Unsecd. Note, 144A, 5.500%, 12/15/2029	181,400
200,000	Post Holdings, Inc., Sr. Unsecd. Note, 144A, 5.625%, 1/15/2028	188,561
330,000	Post Holdings, Inc., Sr. Unsecd. Note, 144A, 5.750%, 3/1/2027	319,618
200,000	US Foods, Inc., Sr. Unsecd. Note, 144A, 4.625%, 6/1/2030	176,378
475,000	US Foods, Inc., Sr. Unsecd. Note, 144A, 4.750%, 2/15/2029	422,322
	TOTAL	2,213,640
	Gaming—4.2%
425,000	Affinity Gaming LLC, 144A, 6.875%, 12/15/2027	360,863
275,000	Boyd Gaming Corp., Sr. Unsecd. Note, 4.750%, 12/1/2027	256,531
100,000	Boyd Gaming Corp., Sr. Unsecd. Note, 144A, 4.750%, 6/15/2031	87,118
75,000	Caesars Entertainment Corp., Sr. Unsecd. Note, 144A, 4.625%, 10/15/2029	61,170
100,000	CCM Merger, Inc., Sr. Unsecd. Note, 144A, 6.375%, 5/1/2026	94,361
150,000	Colt Merger Sub, Inc., Sr. Secd. Note, 144A, 5.750%, 7/1/2025	147,055
375,000	Colt Merger Sub, Inc., Sr. Secd. Note, 144A, 6.250%, 7/1/2025	365,139
475,000	Colt Merger Sub, Inc., Sr. Unsecd. Note, 144A, 8.125%, 7/1/2027	467,690
425,000	MGM Resorts International, Sr. Unsecd. Note, 6.000%, 3/15/2023	424,354
225,000	Midwest Gaming Borrower LLC, 144A, 4.875%, 5/1/2029	191,737
750,000	Mohegan Tribal Gaming Authority, 144A, 8.000%, 2/1/2026	702,765
125,000	Penn National Gaming, Inc., Sr. Unsecd. Note, 144A, 4.125%, 7/1/2029	98,913
50,000	Penn National Gaming, Inc., Sr. Unsecd. Note, 144A, 5.625%, 1/15/2027	45,416
50,000	Raptor Acquisition Corp./Raptor Co-Issuer LLC, Sec. Fac. Bond, 144A, 4.875%, 11/1/2026	44,491
300,000	Scientific Games Holdings Corp., Sr. Unsecd. Note, 144A, 6.625%, 3/1/2030	253,800
300,000	Scientific Games International, Inc., Sr. Unsecd. Note, 144A, 8.625%, 7/1/2025	306,577
225,000	Scientific Games International, Inc., Sr. Unsecd. Note, 144A, 7.250%, 11/15/2029	216,405
475,000	Station Casinos, Inc., Sr. Unsecd. Note, 144A, 4.500%, 2/15/2028	413,692
250,000	Station Casinos, Inc., Sr. Unsecd. Note, 144A, 4.625%, 12/1/2031	200,862
25,000	VICI Properties LP/ VICI Note Co., Inc., Sr. Unsecd. Note, 144A, 3.500%, 2/15/2025	23,611
50,000	VICI Properties LP/ VICI Note Co., Inc., Sr. Unsecd. Note, 144A, 3.875%, 2/15/2029	43,894
50,000	VICI Properties LP/VICI Note Co., Inc., Sr. Unsecd. Note, 144A, 5.625%, 5/1/2024	49,607
	TOTAL	4,856,051
	Health Care—6.2%
300,000	AdaptHealth LLC, Sr. Unsecd. Note, 144A, 4.625%, 8/1/2029	251,565
250,000	AdaptHealth LLC, Sr. Unsecd. Note, 144A, 5.125%, 3/1/2030	213,147
175,000	Ardent Health Services, Sr. Unsecd. Note, 144A, 5.750%, 7/15/2029	137,454
550,000	Avantor Funding, Inc., Sec. Fac. Bond, 144A, 4.625%, 7/15/2028	500,896
225,000	Avantor Funding, Inc., Sr. Unsecd. Note, 144A, 3.875%, 11/1/2029	189,231
50,000	Charles River Laboratories International, Inc., Sr. Unsecd. Note, 144A, 3.750%, 3/15/2029	44,292
100,000	Charles River Laboratories International, Inc., Sr. Unsecd. Note, 144A, 4.000%, 3/15/2031	86,644
175,000	CHS/Community Health Systems, Inc., 144A, 6.125%, 4/1/2030	86,984
550,000	CHS/Community Health Systems, Inc., 2nd Lien, 144A, 6.875%, 4/15/2029	283,708

Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Health Care—continued
$ 150,000	CHS/Community Health Systems, Inc., Sec. Fac. Bond, 144A, 5.625%, 3/15/2027	$ 128,892
50,000	CHS/Community Health Systems, Inc., Sec. Fac. Bond, 144A, 6.000%, 1/15/2029	41,889
250,000	CHS/Community Health Systems, Inc., Sec. Fac. Bond, 144A, 8.000%, 3/15/2026	228,125
125,000	CHS/Community Health Systems, Inc., Sr. Note, 144A, 5.250%, 5/15/2030	94,478
100,000	Embecta Corp., Sec. Fac. Bond, 144A, 5.000%, 2/15/2030	84,772
200,000	Embecta Corp., Sr. Note, 144A, 6.750%, 2/15/2030	181,907
50,000	Garden Spinco Corp., Sr. Unsecd. Note, 144A, 8.625%, 7/20/2030	53,072
475,000	Global Medical Response, Inc., Sec. Fac. Bond, 144A, 6.500%, 10/1/2025	340,713
125,000	HCA, Inc., Sr. Unsecd. Note, 5.375%, 2/1/2025	124,950
350,000	HCA, Inc., Sr. Unsecd. Note, 5.875%, 2/15/2026	352,561
300,000	IMS Health, Inc., Sr. Unsecd. Note, 144A, 5.000%, 10/15/2026	287,115
175,000	LifePoint Health, Inc., 144A, 6.750%, 4/15/2025	164,967
100,000	LifePoint Health, Inc., Sr. Unsecd. Note, 144A, 5.375%, 1/15/2029	56,644
300,000	LifePoint Health, Inc., Sr. Unsecd. Note, 144A, 9.750%, 12/1/2026	242,058
225,000	MEDNAX, Inc., Sr. Unsecd. Note, 144A, 5.375%, 2/15/2030	195,843
300,000	Mozart Debt Merger Sub, Inc., Sec. Fac. Bond, 144A, 3.875%, 4/1/2029	242,323
1,050,000	Mozart Debt Merger Sub, Inc., Sr. Unsecd. Note, 144A, 5.250%, 10/1/2029	835,858
150,000	MPH Acquisition Holdings LLC, Sr. Note, 144A, 5.500%, 9/1/2028	117,321
350,000	MPH Acquisition Holdings LLC, Sr. Unsecd. Note, 144A, 5.750%, 11/1/2028	233,524
175,000	Team Health Holdings, Inc., Sr. Unsecd. Note, 144A, 6.375%, 2/1/2025	101,118
50,000	Teleflex, Inc., Sr. Unsecd. Note, 4.625%, 11/15/2027	47,741
50,000	Teleflex, Inc., Sr. Unsecd. Note, 144A, 4.250%, 6/1/2028	45,732
125,000	Tenet Healthcare Corp., 144A, 4.250%, 6/1/2029	108,518
25,000	Tenet Healthcare Corp., 144A, 4.625%, 6/15/2028	22,409
175,000	Tenet Healthcare Corp., 144A, 4.875%, 1/1/2026	165,843
300,000	Tenet Healthcare Corp., 144A, 5.125%, 11/1/2027	279,681
50,000	Tenet Healthcare Corp., 144A, 6.125%, 6/15/2030	47,728
100,000	Tenet Healthcare Corp., 144A, 6.250%, 2/1/2027	96,254
500,000	Tenet Healthcare Corp., Sr. Unsecd. Note, 144A, 6.125%, 10/1/2028	448,715
	TOTAL	7,164,672
	Health Insurance—0.7%
250,000	Centene Corp., Sr. Unsecd. Note, Series WI, 4.250%, 12/15/2027	235,017
575,000	Centene Corp., Sr. Unsecd. Note, Series WI, 4.625%, 12/15/2029	526,752
	TOTAL	761,769
	Independent Energy—4.6%
75,000	Antero Resources Corp., Sr. Unsecd. Note, 144A, 5.375%, 3/1/2030	69,635
13,000	Antero Resources Corp., Sr. Unsecd. Note, 144A, 7.625%, 2/1/2029	13,089
125,000	Ascent Resources Utica Holdings LLC/ARU Finance Corp., Sr. Unsecd. Note, 144A, 5.875%, 6/30/2029	111,616
175,000	Ascent Resources Utica Holdings LLC/ARU Finance Corp., Sr. Unsecd. Note, 144A, 8.250%, 12/31/2028	171,763
98,000	Ascent Resources Utica Holdings LLC/ARU Finance Corp., Sr. Unsecd. Note, 144A, 9.000%, 11/1/2027	121,113
175,000	Berry Petroleum Co., Sr. Unsecd. Note, 144A, 7.000%, 2/15/2026	161,003
25,000	Callon Petroleum Corp., Sr. Unsecd. Note, 144A, 7.500%, 6/15/2030	22,908
275,000	Carrizo Oil & Gas, Inc., Sr. Unsecd. Note, 8.250%, 7/15/2025	275,347
300,000	Permian Resources Operating LLC, Sr. Unsecd. Note, 144A, 6.875%, 4/1/2027	283,469
50,000	Chord Energy Corp., Sr. Unsecd. Note, 144A, 6.375%, 6/1/2026	48,766
50,000	Comstock Resources, Inc., Sr. Unsecd. Note, 144A, 5.875%, 1/15/2030	43,050
475,000	Comstock Resources, Inc., Sr. Unsecd. Note, 144A, 6.750%, 3/1/2029	429,547
50,000	Crownrock LP/ Crownrock F, Sr. Unsecd. Note, 144A, 5.000%, 5/1/2029	45,192
525,000	Crownrock LP/ Crownrock F, Sr. Unsecd. Note, 144A, 5.625%, 10/15/2025	507,693
25,000	Endeavor Energy Resources LP, Sr. Unsecd. Note, 144A, 5.750%, 1/30/2028	23,979

Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Independent Energy—continued
$ 250,000	Occidental Petroleum Corp., Sr. Unsecd. Note, 5.875%, 9/1/2025	$ 249,502
125,000	Occidental Petroleum Corp., Sr. Unsecd. Note, 6.125%, 1/1/2031	126,389
250,000	Occidental Petroleum Corp., Sr. Unsecd. Note, 6.450%, 9/15/2036	255,564
275,000	Occidental Petroleum Corp., Sr. Unsecd. Note, 6.625%, 9/1/2030	284,800
75,000	Occidental Petroleum Corp., Sr. Unsecd. Note, 8.875%, 7/15/2030	84,801
75,000	PDC Energy, Inc., Sr. Unsecd. Note, 6.125%, 9/15/2024	74,702
225,000	PDC Energy, Inc., Sr. Unsecd. Note, Series WI, 5.750%, 5/15/2026	215,145
125,000	Permian Resources Operating LLC, Sr. Unsecd. Note, 144A, 5.375%, 1/15/2026	113,983
75,000	Range Resources Corp., Sr. Unsecd. Note, 4.875%, 5/15/2025	71,365
75,000	Range Resources Corp., Sr. Unsecd. Note, 144A, 4.750%, 2/15/2030	66,191
200,000	Range Resources Corp., Sr. Unsecd. Note, 8.250%, 1/15/2029	206,358
225,000	Rockcliff Energy II LLC, Sr. Unsecd. Note, 144A, 5.500%, 10/15/2029	206,151
150,000	SM Energy Co., Sr. Unsecd. Note, 5.625%, 6/1/2025	144,231
125,000	SM Energy Co., Sr. Unsecd. Note, 6.500%, 7/15/2028	120,004
50,000	SM Energy Co., Sr. Unsecd. Note, 6.625%, 1/15/2027	48,240
100,000	SM Energy Co., Sr. Unsecd. Note, 6.750%, 9/15/2026	97,243
125,000	Southwestern Energy Co., Sr. Unsecd. Note, 4.750%, 2/1/2032	107,064
50,000	Southwestern Energy Co., Sr. Unsecd. Note, 5.375%, 3/15/2030	45,697
200,000	Southwestern Energy Co., Sr. Unsecd. Note, 8.375%, 9/15/2028	206,541
250,000	Tap Rock Resources LLC., Sr. Unsecd. Note, 144A, 7.000%, 10/1/2026	232,838
	TOTAL	5,284,979
	Industrial - Other—1.3%
25,000	Madison Iaq LLC, Sec. Fac. Bond, 144A, 4.125%, 6/30/2028	20,937
850,000	Madison Iaq LLC, Sr. Unsecd. Note, 144A, 5.875%, 6/30/2029	584,187
425,000	Redwood Star Merger Sub, Sr. Unsecd. Note, 144A, 8.750%, 4/1/2030	335,733
202,000	Vertical Holdco GmbH, Sr. Unsecd. Note, 144A, 7.625%, 7/15/2028	165,264
425,000	Vertical U.S. Newco, Inc., Sr. Unsecd. Note, 144A, 5.250%, 7/15/2027	378,080
	TOTAL	1,484,201
	Insurance - P&C—6.3%
475,000	AmWINS Group, Inc., Sr. Unsecd. Note, 144A, 4.875%, 6/30/2029	403,487
494,567	Ardonagh Midco 2 PLC, Sr. Unsecd. Note, 144A, 11.500% / 12.750% PIK, 1/15/2027	472,311
275,000	AssuredPartners, Inc., Sr. Unsecd. Note, 144A, 5.625%, 1/15/2029	226,693
600,000	AssuredPartners, Inc., Sr. Unsecd. Note, 144A, 7.000%, 8/15/2025	581,198
1,025,000	Broadstreet Partners, Inc., Sr. Unsecd. Note, 144A, 5.875%, 4/15/2029	873,691
225,000	GTCR AP Finance, Inc., Sr. Unsecd. Note, 144A, 8.000%, 5/15/2027	215,879
425,000	Hub International Ltd., Sr. Unsecd. Note, 144A, 5.625%, 12/1/2029	371,740
1,750,000	Hub International Ltd., Sr. Unsecd. Note, 144A, 7.000%, 5/1/2026	1,716,785
300,000	Jones Deslauriers Insurance Management, Inc., Sr. Unsecd. Note, 144A, 10.500%, 12/15/2030	295,846
125,000	NFP Corp., Sec. Fac. Bond, 144A, 7.500%, 10/1/2030	118,322
1,300,000	NFP Corp., Sr. Unsecd. Note, 144A, 6.875%, 8/15/2028	1,074,423
75,000	Ryan Specialty Group, Sec. Fac. Bond, 144A, 4.375%, 2/1/2030	65,036
900,000	USIS Merger Subsidiary, Inc., Sr. Unsecd. Note, 144A, 6.875%, 5/1/2025	868,432
	TOTAL	7,283,843
	Leisure—0.4%
450,000	SeaWorld Parks & Entertainment, Inc., Sr. Unsecd. Note, 144A, 5.250%, 8/15/2029	392,399
150,000	Six Flags Entertainment Corp., Sr. Unsecd. Note, 144A, 5.500%, 4/15/2027	135,330
	TOTAL	527,729
	Lodging—0.5%
100,000	Hilton Domestic Operating Company, Inc., Sr. Unsecd. Note, 144A, 3.625%, 2/15/2032	80,258
75,000	Hilton Domestic Operating Company, Inc., Sr. Unsecd. Note, 144A, 5.375%, 5/1/2025	74,423

Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Lodging—continued
$ 100,000	Hilton Domestic Operating Company, Inc., Sr. Unsecd. Note, 144A, 5.750%, 5/1/2028	$ 97,176
175,000	Hilton Domestic Operating Company, Inc., Sr. Unsecd. Note, Series WI, 4.875%, 1/15/2030	158,881
200,000	Wyndham Hotels & Resorts, Inc., Sr. Unsecd. Note, 144A, 4.375%, 8/15/2028	179,760
	TOTAL	590,498
	Media Entertainment—6.9%
350,000	Audacy Capital Corp., 144A, 6.500%, 5/1/2027	66,403
350,000	Audacy Capital Corp., 144A, 6.750%, 3/31/2029	61,076
300,000	Cumulus Media News Holdings, Inc., 144A, 6.750%, 7/1/2026	252,474
125,000	Diamond Sports Group LLC/Diamond Sports Finance Co., 144A, 5.375%, 8/15/2026	14,844
350,000	Diamond Sports Group LLC/Diamond Sports Finance Co., Sec. Fac. Bond, 144A, 6.625%, 8/15/2027	3,937
300,000	Gray Escrow II, Inc., Sr. Unsecd. Note, 144A, 5.375%, 11/15/2031	216,730
75,000	Gray Escrow, Inc., Sr. Unsecd. Note, 144A, 7.000%, 5/15/2027	66,630
275,000	Gray Television, Inc., Sr. Unsecd. Note, 144A, 4.750%, 10/15/2030	199,375
250,000	Gray Television, Inc., Sr. Unsecd. Note, 144A, 5.875%, 7/15/2026	223,125
100,000	iHeartCommunications, Inc., 144A, 4.750%, 1/15/2028	81,592
175,000	iHeartCommunications, Inc., 144A, 5.250%, 8/15/2027	148,516
931,114	iHeartCommunications, Inc., Sr. Unsecd. Note, 8.375%, 5/1/2027	793,763
100,000	Lamar Media Corp., Sr. Unsecd. Note, 4.875%, 1/15/2029	92,190
100,000	Lamar Media Corp., Sr. Unsecd. Note, Series WI, 3.625%, 1/15/2031	82,803
450,000	Match Group, Inc., Sr. Unsecd. Note, 144A, 4.125%, 8/1/2030	368,164
275,000	Match Group, Inc., Sr. Unsecd. Note, 144A, 5.000%, 12/15/2027	253,473
900,000	Midas Opco Holdings LLC, Sr. Unsecd. Note, 144A, 5.625%, 8/15/2029	743,809
50,000	News Corp., Sr. Unsecd. Note, 144A, 5.125%, 2/15/2032	45,572
400,000	Nexstar Broadcasting, Inc., Sr. Unsecd. Note, 144A, 4.750%, 11/1/2028	346,604
425,000	Nexstar Escrow Corp., Sr. Unsecd. Note, 144A, 5.625%, 7/15/2027	390,740
50,000	Outfront Media Capital LLC/Outfront Media Capital Corp., Sr. Unsecd. Note, 144A, 4.250%, 1/15/2029	41,550
325,000	Outfront Media Capital LLC/Outfront Media Capital Corp., Sr. Unsecd. Note, 144A, 4.625%, 3/15/2030	269,402
300,000	ROBLOX Corp., Sr. Unsecd. Note, 144A, 3.875%, 5/1/2030	236,850
50,000	Scripps Escrow II, Inc., Sr. Unsecd. Note, 144A, 3.875%, 1/15/2029	40,198
175,000	Scripps Escrow II, Inc., Sr. Unsecd. Note, 144A, 5.375%, 1/15/2031	140,492
250,000	Scripps Escrow II, Inc., Sr. Unsecd. Note, 144A, 5.875%, 7/15/2027	223,520
375,000	Sinclair Television Group, Sr. Unsecd. Note, 144A, 5.125%, 2/15/2027	306,447
275,000	Sinclair Television Group, Sr. Unsecd. Note, 144A, 5.500%, 3/1/2030	192,738
275,000	Tegna, Inc., Sr. Unsecd. Note, 144A, 4.625%, 3/15/2028	261,550
325,000	Tegna, Inc., Sr. Unsecd. Note, 144A, 5.000%, 9/15/2029	309,093
925,000	Terrier Media Buyer, Inc., Sr. Unsecd. Note, 144A, 8.875%, 12/15/2027	697,709
250,000	Univision Communications, Inc., Sec. Fac. Bond, 144A, 4.500%, 5/1/2029	209,534
125,000	Univision Communications, Inc., Sec. Fac. Bond, 144A, 7.375%, 6/30/2030	119,614
375,000	Urban One, Inc., Sec. Fac. Bond, 144A, 7.375%, 2/1/2028	317,460
150,000	WMG Acquisition Corp., Sec. Fac. Bond, 144A, 3.750%, 12/1/2029	129,195
	TOTAL	7,947,172
	Metals & Mining—0.4%
225,000	Cleveland-Cliffs, Inc., Sr. Unsecd. Note, 144A, 4.625%, 3/1/2029	200,013
100,000	Cleveland-Cliffs, Inc., Sr. Unsecd. Note, 144A, 4.875%, 3/1/2031	88,443
300,000	Coeur Mining, Inc., Sr. Unsecd. Note, 144A, 5.125%, 2/15/2029	234,518
	TOTAL	522,974
	Midstream—6.9%
175,000	AmeriGas Partners LP, Sr. Unsecd. Note, 5.750%, 5/20/2027	162,910
400,000	AmeriGas Partners LP, Sr. Unsecd. Note, 5.875%, 8/20/2026	380,504
475,000	Antero Midstream Partners LP, Sr. Unsecd. Note, 144A, 5.375%, 6/15/2029	434,905

Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Midstream—continued
$ 275,000	Antero Midstream Partners LP, Sr. Unsecd. Note, 144A, 5.750%, 3/1/2027	$ 260,446
400,000	Antero Midstream Partners LP, Sr. Unsecd. Note, 144A, 5.750%, 1/15/2028	371,732
250,000	Antero Midstream Partners LP, Sr. Unsecd. Note, 144A, 7.875%, 5/15/2026	253,425
125,000	Cheniere Energy Partners LP, Sr. Unsecd. Note, 4.000%, 3/1/2031	106,589
175,000	Cheniere Energy Partners LP, Sr. Unsecd. Note, Series WI, 3.250%, 1/31/2032	139,310
125,000	Cheniere Energy Partners LP, Sr. Unsecd. Note, Series WI, 4.500%, 10/1/2029	112,685
175,000	Cheniere Energy, Inc., Sec. Fac. Bond, Series WI, 4.625%, 10/15/2028	158,514
250,000	CNX Midstream Partners LP, Sr. Unsecd. Note, 144A, 4.750%, 4/15/2030	205,491
275,000	DT Midstream, Inc., Sr. Unsecd. Note, 144A, 4.375%, 6/15/2031	231,069
75,000	EQM Midstream Partners LP, Sr. Unsecd. Note, 144A, 4.500%, 1/15/2029	63,105
325,000	EQM Midstream Partners LP, Sr. Unsecd. Note, 144A, 4.750%, 1/15/2031	266,323
375,000	EQM Midstream Partners LP, Sr. Unsecd. Note, 144A, 6.500%, 7/1/2027	359,062
275,000	EQT Midstream Partners LP, Sr. Unsecd. Note, 5.500%, 7/15/2028	246,387
200,000	EQT Midstream Partners LP, Sr. Unsecd. Note, 6.500%, 7/15/2048	150,275
65,000	EQT Midstream Partners LP, Sr. Unsecd. Note, 144A, 6.000%, 7/1/2025	62,837
75,000	EQT Midstream Partners LP, Sr. Unsecd. Note, 144A, 7.500%, 6/1/2027	73,544
100,000	Hess Midstream Operations LP, Sr. Unsecd. Note, 144A, 5.500%, 10/15/2030	91,621
100,000	Hess Midstream Operations LP, Sr. Unsecd. Note, 144A, 4.250%, 2/15/2030	85,627
275,000	Hess Midstream Partners LP, Sr. Unsecd. Note, 144A, 5.125%, 6/15/2028	254,778
275,000	Holly Energy Partners LP, Sr. Unsecd. Note, 144A, 5.000%, 2/1/2028	250,862
325,000	NuStar Logistics LP, Sr. Unsecd. Note, 5.625%, 4/28/2027	304,453
250,000	Oasis Midstream Partners, Sr. Unsecd. Note, 144A, 8.000%, 4/1/2029	249,138
150,000	Solaris Midstream Holdings LLC, Sr. Unsecd. Note, 144A, 7.625%, 4/1/2026	149,377
450,000	Suburban Propane Partners LP, Sr. Unsecd. Note, 5.875%, 3/1/2027	430,518
175,000	Suburban Propane Partners LP, Sr. Unsecd. Note, 144A, 5.000%, 6/1/2031	148,970
250,000	Summit Midstream Holdings LLC, Sr. Unsecd. Note, 5.750%, 4/15/2025	212,682
75,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., Sr. Unsecd. Note, 5.000%, 1/15/2028	71,669
75,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., Sr. Unsecd. Note, 6.500%, 7/15/2027	75,598
575,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., Sr. Unsecd. Note, 144A, 5.500%, 3/1/2030	541,883
250,000	TransMontaigne Partners LP/TLP Finance Corp., Sr. Unsecd. Note, 6.125%, 2/15/2026	216,802
200,000	Western Gas Partners LP, Sr. Unsecd. Note, 4.500%, 3/1/2028	184,588
25,000	Western Gas Partners LP, Sr. Unsecd. Note, 4.650%, 7/1/2026	23,769
150,000	Western Gas Partners LP, Sr. Unsecd. Note, 4.750%, 8/15/2028	137,259
475,000	Western Gas Partners LP, Sr. Unsecd. Note, 5.300%, 3/1/2048	391,401
125,000	Western Gas Partners LP, Sr. Unsecd. Note, 5.450%, 4/1/2044	104,062
75,000	Western Gas Partners LP, Sr. Unsecd. Note, 5.500%, 8/15/2048	62,474
	TOTAL	8,026,644
	Oil Field Services—2.1%
200,000	Archrock Partners LP/Archrock Partners Finance Corp., Sr. Unsecd. Note, 144A, 6.250%, 4/1/2028	183,327
700,000	Archrock Partners LP/Archrock Partners Finance Corp., Sr. Unsecd. Note, 144A, 6.875%, 4/1/2027	669,371
225,000	Nabors Industries Ltd., Sr. Unsecd. Note, 144A, 7.250%, 1/15/2026	212,395
175,000	Nabors Industries Ltd., Sr. Unsecd. Note, 144A, 7.500%, 1/15/2028	160,383
50,000	Nabors Industries, Inc., Sr. Unsecd. Note, 144A, 7.375%, 5/15/2027	48,493
100,000	Precision Drilling Corp., Sr. Unsecd. Note, 144A, 6.875%, 1/15/2029	93,231
225,000	Precision Drilling Corp., Sr. Unsecd. Note, 144A, 7.125%, 1/15/2026	218,043
425,000	USA Compression Partners LP, Sr. Unsecd. Note, 6.875%, 9/1/2027	398,057
500,000	USA Compression Partners LP, Sr. Unsecd. Note, Series WI, 6.875%, 4/1/2026	480,448
	TOTAL	2,463,748
	Packaging—5.2%
622,108	ARD Finance SA, Sec. Fac. Bond, 144A, 6.500%, 6/30/2027	433,679

Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Packaging—continued
$ 300,000	Ardagh Metal Packaging, Sr. Unsecd. Note, 144A, 4.000%, 9/1/2029	$ 238,321
725,000	Ardagh Packaging Finance PLC/Ardagh Holdings, Sec. Fac. Bond, 144A, 5.250%, 8/15/2027	543,259
375,000	Ardagh Packaging Finance PLC/Ardagh Holdings, Sr. Unsecd. Note, 144A, 5.250%, 8/15/2027	280,996
275,000	Ball Corp., Sr. Unsecd. Note, 2.875%, 8/15/2030	220,056
75,000	Ball Corp., Sr. Unsecd. Note, 3.125%, 9/15/2031	60,332
100,000	Ball Corp., Sr. Unsecd. Note, 6.875%, 3/15/2028	102,847
225,000	Berry Global Escrow Corp., 144A, 5.625%, 7/15/2027	219,883
175,000	Bway Holding Co., Sec. Fac. Bond, 144A, 5.500%, 4/15/2024	170,521
375,000	Bway Holding Co., Sr. Unsecd. Note, 144A, 7.250%, 4/15/2025	347,541
1,200,000	Clydesdale Acquisition Holdings, Inc., Sr. Unsecd. Note, 144A, 8.750%, 4/15/2030	1,029,416
175,000	Crown Americas LLC/Crown Americas Capital Corp. VI, Sr. Unsecd. Note, 4.750%, 2/1/2026	170,182
75,000	OI European Group BV, Sr. Unsecd. Note, 144A, 4.750%, 2/15/2030	65,786
425,000	Owens-Brockway Glass Container, Inc., Sr. Unsecd. Note, 144A, 5.375%, 1/15/2025	408,404
45,000	Owens-Brockway Glass Container, Inc., Sr. Unsecd. Note, 144A, 5.875%, 8/15/2023	44,862
200,000	Owens-Brockway Glass Container, Inc., Sr. Unsecd. Note, 144A, 6.375%, 8/15/2025	196,288
75,000	Owens-Brockway Glass Container, Inc., Sr. Unsecd. Note, 144A, 6.625%, 5/13/2027	72,882
100,000	Sealed Air Corp., Sr. Unsecd. Note, 144A, 5.000%, 4/15/2029	94,145
500,000	Trident Merger Subsidiary, Inc., Sr. Unsecd. Note, 144A, 6.625%, 11/1/2025	436,773
175,000	Trident Merger Subsidiary, Inc., Sr. Unsecd. Note, 144A, 9.250%, 8/1/2024	167,538
375,000	Trivium Packaging Finance BV, Sec. Fac. Bond, 144A, 5.500%, 8/15/2026	344,657
425,000	Trivium Packaging Finance BV, Sr. Unsecd. Note, 144A, 8.500%, 8/15/2027	390,620
	TOTAL	6,038,988
	Paper—0.5%
350,000	Clearwater Paper Corp., Sr. Unsecd. Note, 144A, 5.375%, 2/1/2025	341,876
150,000	Graphic Packaging International LLC, Sr. Unsecd. Note, 144A, 3.500%, 3/1/2029	128,397
25,000	Graphic Packaging International LLC, Sr. Unsecd. Note, 144A, 3.750%, 2/1/2030	21,281
125,000	Graphic Packaging International LLC, Sr. Unsecd. Note, 144A, 4.750%, 7/15/2027	117,850
	TOTAL	609,404
	Pharmaceuticals—2.1%
75,000	Bausch Health Cos., Inc., Sec. Fac. Bond, 144A, 6.125%, 2/1/2027	51,816
175,000	Bausch Health Cos., Inc., Sr. Unsecd. Note, 144A, 5.000%, 1/30/2028	84,276
150,000	Bausch Health Cos., Inc., Sr. Unsecd. Note, 144A, 5.000%, 2/15/2029	72,088
275,000	Bausch Health Cos., Inc., Sr. Unsecd. Note, 144A, 5.250%, 1/30/2030	132,356
425,000	Bausch Health Cos., Inc., Sr. Unsecd. Note, 144A, 5.250%, 2/15/2031	206,514
75,000	Bausch Health Cos., Inc., Sr. Unsecd. Note, 144A, 6.250%, 2/15/2029	36,230
300,000	Bausch Health Cos., Inc., Sr. Unsecd. Note, 144A, 7.250%, 5/30/2029	145,328
400,000	Bausch Health Cos., Inc., Sr. Unsecd. Note, 144A, 8.500%, 1/31/2027	209,892
175,000	Catalent Pharma Solutions, Inc., Sr. Unsecd. Note, 144A, 3.500%, 4/1/2030	138,401
250,000	Grifols Escrow Issuer SA, 144A, 4.750%, 10/15/2028	216,162
350,000	Jazz Securities Designated Activity Co., 144A, 4.375%, 1/15/2029	312,576
373,000	Mallinckrodt International Finance SA/Mallinckrodt CB LLC, 144A, 10.000%, 6/15/2029	202,349
450,000	Organon Finance 1 LLC, Sr. Unsecd. Note, 144A, 5.125%, 4/30/2031	390,436
250,000	Syneos Health, Inc., Sr. Unsecd. Note, 144A, 3.625%, 1/15/2029	199,422
	TOTAL	2,397,846
	Restaurant—1.6%
225,000	1011778 BC Unltd. Liability Co./New Red Finance, Inc., 1st Lien, 144A, 3.500%, 2/15/2029	193,289
1,100,000	1011778 BC Unltd. Liability Co./New Red Finance, Inc., 2nd Lien, 144A, 4.000%, 10/15/2030	893,085
250,000	1011778 BC Unltd. Liability Co./New Red Finance, Inc., 144A, 4.375%, 1/15/2028	224,216
75,000	KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, Sr. Unsecd. Note, 144A, 4.750%, 6/1/2027	72,129
375,000	Yum! Brands, Inc., Sr. Unsecd. Note, 4.625%, 1/31/2032	332,194

Annual Shareholder Report

Principal Amount or Shares		Value
	CORPORATE BONDS—continued
	Restaurant—continued
$ 75,000	Yum! Brands, Inc., Sr. Unsecd. Note, 5.375%, 4/1/2032	$ 69,570
75,000	Yum! Brands, Inc., Sr. Unsecd. Note, 144A, 4.750%, 1/15/2030	68,939
	TOTAL	1,853,422
	Retailers—0.6%
225,000	Academy Ltd., Sec. Fac. Bond, 144A, 6.000%, 11/15/2027	215,731
200,000	Asbury Automotive Group, Inc., Sr. Unsecd. Note, 144A, 4.625%, 11/15/2029	168,764
150,000	Asbury Automotive Group, Inc., Sr. Unsecd. Note, 144A, 5.000%, 2/15/2032	123,600
50,000	Gap (The), Inc., Sr. Unsecd. Note, 144A, 3.625%, 10/1/2029	35,337
75,000	Gap (The), Inc., Sr. Unsecd. Note, 144A, 3.875%, 10/1/2031	52,432
75,000	Kontoor Brands, Inc., Sr. Unsecd. Note, 144A, 4.125%, 11/15/2029	61,395
	TOTAL	657,259
	Supermarkets—0.6%
625,000	Albertsons Cos. LLC/SAFEW, Sr. Unsecd. Note, 144A, 3.500%, 3/15/2029	525,744
75,000	Albertsons Cos. LLC/SAFEW, Sr. Unsecd. Note, 144A, 5.875%, 2/15/2028	71,430
50,000	Albertsons Cos. LLC/SAFEW, Sr. Unsecd. Note, 144A, 7.500%, 3/15/2026	51,138
	TOTAL	648,312
	Technology—8.6%
275,000	Black Knight InfoServ LLC, Sr. Unsecd. Note, 144A, 3.625%, 9/1/2028	239,250
300,000	Boxer Parent Co., Inc., 144A, 9.125%, 3/1/2026	283,498
375,000	Cars.com, Inc., Sr. Unsecd. Note, 144A, 6.375%, 11/1/2028	333,558
250,000	Centerfield Media Parent, Sr. Note, 144A, 6.625%, 8/1/2026	160,325
325,000	Central Parent, Inc./Central Merger Sub, Inc., 144A, 7.250%, 6/15/2029	318,304
50,000	Ciena Corp., Sr. Unsecd. Note, 144A, 4.000%, 1/31/2030	44,069
350,000	Clarivate Science Holdings Corp., Sr. Unsecd. Note, 144A, 4.875%, 7/1/2029	298,078
375,000	Coherent Corp., Sr. Unsecd. Note, 144A, 5.000%, 12/15/2029	323,899
150,000	Consensus Cloud Solutions, Inc., Sr. Unsecd. Note, 144A, 6.000%, 10/15/2026	140,926
275,000	Consensus Cloud Solutions, Inc., Sr. Unsecd. Note, 144A, 6.500%, 10/15/2028	253,294
150,000	Dun & Bradstreet Corp., Sr. Unsecd. Note, 144A, 5.000%, 12/15/2029	128,559
450,000	Elastic N.V., Sr. Unsecd. Note, 144A, 4.125%, 7/15/2029	364,039
125,000	Entegris Escrow Corp., Sr. Unsecd. Note, 144A, 5.950%, 6/15/2030	115,438
100,000	Gartner, Inc., Sr. Unsecd. Note, 144A, 3.750%, 10/1/2030	86,350
25,000	Gartner, Inc., Sr. Unsecd. Note, 144A, 4.500%, 7/1/2028	23,353
300,000	HealthEquity, Inc., Sr. Unsecd. Note, 144A, 4.500%, 10/1/2029	262,545
350,000	Helios Software Holdings, Sec. Fac. Bond, 144A, 4.625%, 5/1/2028	267,383
550,000	Logan Merger Sub, Inc., Sr. Secd. Note, 144A, 5.500%, 9/1/2027	296,671
975,000	McAfee Corp., Sr. Unsecd. Note, 144A, 7.375%, 2/15/2030	785,671
1,025,000	Minerva Merger Sub, Inc., Sr. Unsecd. Note, 144A, 6.500%, 2/15/2030	757,277
300,000	NCR Corp., 144A, 5.125%, 4/15/2029	251,432
250,000	NCR Corp., Sr. Unsecd. Note, 144A, 5.000%, 10/1/2028	213,541
350,000	NCR Corp., Sr. Unsecd. Note, 144A, 5.250%, 10/1/2030	289,322
50,000	NCR Corp., Sr. Unsecd. Note, 144A, 5.750%, 9/1/2027	47,924
25,000	Open Text Corp., 144A, 6.900%, 12/1/2027	25,033
275,000	Open Text Holdings, Inc. / Open Text Corp., Sr. Unsecd. Note, 144A, 4.125%, 12/1/2031	214,154
400,000	Picard Midco, Inc., Sec. Fac. Bond, 144A, 6.500%, 3/31/2029	337,627
325,000	Rackspace Technology, Inc., 144A, 3.500%, 2/15/2028	189,270
475,000	Rackspace Technology, Inc., Sr. Unsecd. Note, 144A, 5.375%, 12/1/2028	207,801
600,000	Rocket Software, Inc., Sr. Unsecd. Note, 144A, 6.500%, 2/15/2029	473,776
75,000	Science Applications International Corp., Sr. Unsecd. Note, 144A, 4.875%, 4/1/2028	69,494
406,125	Seagate HDD Cayman, Sr. Unsecd. Note, 144A, 9.625%, 12/1/2032	445,984
200,000	Sensata Technologies B.V., Sr. Unsecd. Note, 144A, 4.000%, 4/15/2029	172,770

Annual Shareholder Report

Principal Amount or Shares			Value
		CORPORATE BONDS—continued
		Technology—continued
$ 200,000		Sensata Technologies B.V., Sr. Unsecd. Note, 144A, 5.875%, 9/1/2030	$ 189,834
75,000		Sensata Technologies, Inc., Sr. Unsecd. Note, 144A, 3.750%, 2/15/2031	61,813
625,000		SS&C Technologies, Inc., Sr. Unsecd. Note, 144A, 5.500%, 9/30/2027	586,516
100,000		Synaptics, Inc., Sr. Unsecd. Note, 144A, 4.000%, 6/15/2029	84,399
200,000		TTM Technologies, Inc., Sr. Unsecd. Note, 144A, 4.000%, 3/1/2029	171,798
375,000		Veritas US, Inc./Veritas Bermuda Ltd., Sr. Secd. Note, 144A, 7.500%, 9/1/2025	259,076
75,000		Viavi Solutions, Inc., Sr. Unsecd. Note, 144A, 3.750%, 10/1/2029	63,157
175,000		ZipRecruiter, Inc., Sr. Unsecd. Note, 144A, 5.000%, 1/15/2030	144,501
		TOTAL	9,981,709
		Transportation Services—0.3%
375,000		Watco Cos. LLC/Finance Co., Sr. Unsecd. Note, 144A, 6.500%, 6/15/2027	356,843
		Utility - Electric—2.7%
300,000		Calpine Corp., 144A, 4.500%, 2/15/2028	268,255
67,000		Calpine Corp., 144A, 5.250%, 6/1/2026	63,929
325,000		Calpine Corp., Sr. Secd. Note, 144A, 3.750%, 3/1/2031	262,098
25,000		Calpine Corp., Sr. Unsecd. Note, 144A, 4.625%, 2/1/2029	21,492
25,000		Calpine Corp., Sr. Unsecd. Note, 144A, 5.000%, 2/1/2031	21,013
175,000		Calpine Corp., Sr. Unsecd. Note, 144A, 5.125%, 3/15/2028	156,507
650,000		Enviva Partners LP/Enviva Partners Finance Corp., Sr. Unsecd. Note, 144A, 6.500%, 1/15/2026	613,223
50,000		NRG Energy, Inc., Sr. Unsecd. Note, 144A, 3.625%, 2/15/2031	38,101
425,000		NRG Energy, Inc., Sr. Unsecd. Note, 144A, 3.875%, 2/15/2032	320,014
300,000		NRG Energy, Inc., Sr. Unsecd. Note, 144A, 5.250%, 6/15/2029	265,326
50,000		NRG Energy, Inc., Sr. Unsecd. Note, Series WI, 5.750%, 1/15/2028	47,015
50,000		TerraForm Power Operating LLC, Sr. Unsecd. Note, 144A, 4.750%, 1/15/2030	43,589
475,000		TerraForm Power Operating LLC, Sr. Unsecd. Note, 144A, 5.000%, 1/31/2028	428,312
25,000		TransAlta Corp., Sr. Unsecd. Note, 7.750%, 11/15/2029	25,566
175,000		Vistra Operations Co. LLC, Sr. Unsecd. Note, 144A, 5.500%, 9/1/2026	168,883
400,000		Vistra Operations Co. LLC, Sr. Unsecd. Note, 144A, 5.625%, 2/15/2027	380,345
		TOTAL	3,123,668
		Wireless Communications—0.4%
150,000		T-Mobile USA, Inc., Sr. Unsecd. Note, 2.625%, 2/15/2029	127,182
125,000		T-Mobile USA, Inc., Sr. Unsecd. Note, 2.875%, 2/15/2031	103,460
250,000		T-Mobile USA, Inc., Sr. Unsecd. Note, 4.750%, 2/1/2028	243,623
		TOTAL	474,265
		TOTAL CORPORATE BONDS (IDENTIFIED COST $129,465,598)	110,482,393
		COMMON STOCKS—0.5%
		Cable Satellite—0.0%
545	2,3	Intelsat Jackson Holdings S.A.	3,542
		Independent Energy—0.0%
182	2,3	Ultra Resources, Inc.	0
		Media Entertainment—0.1%
7,915	3	iHeartMedia, Inc.	48,519
		Oil Field Services—0.3%
6,337	2,3	Superior Energy Services, Inc.	380,220
		Pharmaceuticals—0.1%
13,145	3	Mallinckrodt PLC	101,874
		TOTAL COMMON STOCKS (IDENTIFIED COST $969,474)	534,155

Annual Shareholder Report

Principal Amount or Shares			Value
		FLOATING RATE LOAN—0.2%
		Independent Energy—0.2%
$ 202,000	4	Ascent Resources Utica Holdings, LLC, 2020 Fixed 2nd Lien Term Loan, 12.941% (3-month USLIBOR + 9.000%), 11/1/2025 (IDENTIFIED COST $202,000)	$ 214,120
		REPURCHASE AGREEMENT—2.3%
2,718,000		Interest in $1,350,000,000 joint repurchase agreement 4.30%, dated 12/30/2022 under which Bank of Montreal will repurchase securities provided as collateral for $1,350,645,000 on 1/3/2023. The securities provided as collateral at the end of the period held with BNY Mellon as tri-party agent, were U.S. Government Agency securities with various maturities to 5/20/2072 and the market value of those underlying securities was $1,379,047,631. (IDENTIFIED COST $2,718,000)	2,718,000
		TOTAL INVESTMENT IN SECURITIES—98.3% (IDENTIFIED COST $133,355,072)5	113,948,668
		OTHER ASSETS AND LIABILITIES - NET—1.7%6	1,962,736
		TOTAL NET ASSETS—100%	$115,911,404

1	Issuer in default.
2	Market quotations and price evaluations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established by and under the general supervision of the Fund’s Adviser acting through its Valuation Committee.
3	Non-income-producing security.
4	Floating/variable note with current rate and current maturity or next reset date shown.
5	The cost of investments for federal tax purposes amounts to $133,744,800.
6	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Note: The categories of investments are shown as a percentage of total net assets at December 31, 2022.

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

Level 1—quoted prices in active markets for identical securities.

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of December 31, 2022, in valuing the Fund’s assets carried at fair value:

Valuation Inputs
	Level 1— Quoted Prices	Level 2— Other Significant Observable Inputs	Level 3— Significant Unobservable Inputs	Total
Debt Securities:
Corporate Bonds	$—	$110,482,393	$0	$110,482,393
Floating Rate Loan	—	214,120	—	214,120
Equity Securities:
Common Stocks
Domestic	48,519	—	380,220	428,739
International	101,874	—	3,542	105,416
Repurchase Agreement	—	2,718,000	—	2,718,000
TOTAL SECURITIES	$150,393	$113,414,513	$383,762	$113,948,668

The following acronym(s) are used throughout this portfolio:
GMTN	—Global Medium Term Note
LIBOR	—London Interbank Offered Rate
PIK	—Payment in Kind

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Primary Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended December 31,
	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$6.39	$6.41	$6.53	$6.07	$6.82
Income From Investment Operations:
Net investment income (loss)1	0.29	0.28	0.30	0.33	0.34
Net realized and unrealized gain (loss)	(1.02)	0.02	(0.05)	0.53	(0.55)
Total From Investment Operations	(0.73)	0.30	0.25	0.86	(0.21)
Less Distributions:
Distributions from net investment income	(0.32)	(0.32)	(0.37)	(0.40)	(0.54)
Net Asset Value, End of Period	$5.34	$6.39	$6.41	$6.53	$6.07
Total Return2	(11.78)%	4.85%	5.59%	14.54%	(3.29)%
Ratios to Average Net Assets:
Net expenses3	0.81%	0.81%	0.81%	0.81%	0.81%
Net investment income	5.15%	4.42%	4.95%	5.26%	5.27%
Expense waiver/reimbursement4	0.05%	0.04%	0.03%	0.02%	0.01%
Supplemental Data:
Net assets, end of period (000 omitted)	$68,740	$103,152	$109,888	$109,538	$106,628
Portfolio turnover5	13%	39%	36%	31%	18%

1	Per share numbers have been calculated using the average shares method.
2	Based on net asset value. Total returns do not reflect any additional fees or expenses that may be imposed by separate accounts of insurance companies or in connection with any variable annuity or variable life insurance contract.
3	Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
4	This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/ reimbursement recorded by investment companies in which the Fund may invest.
5	Securities that mature are considered sales for purposes of this calculation.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Service Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended December 31,
	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$6.35	$6.38	$6.49	$6.04	$6.78
Income From Investment Operations:
Net investment income (loss)1	0.27	0.26	0.28	0.31	0.32
Net realized and unrealized gain (loss)	(1.00)	0.01	(0.03)	0.52	(0.54)
Total From Investment Operations	(0.73)	0.27	0.25	0.83	(0.22)
Less Distributions:
Distributions from net investment income	(0.31)	(0.30)	(0.36)	(0.38)	(0.52)
Net Asset Value, End of Period	$5.31	$6.35	$6.38	$6.49	$6.04
Total Return2	(11.92)%	4.44%	5.46%	14.13%	(3.43)%
Ratios to Average Net Assets:
Net expenses3	1.06%	1.06%	1.06%	1.06%	1.06%
Net investment income	4.92%	4.16%	4.70%	4.99%	5.03%
Expense waiver/reimbursement4	0.05%	0.04%	0.03%	0.02%	0.01%
Supplemental Data:
Net assets, end of period (000 omitted)	$47,172	$57,578	$50,322	$58,591	$43,012
Portfolio turnover5	13%	39%	36%	31%	18%

1	Per share numbers have been calculated using the average shares method.
2	Based on net asset value. Total returns do not reflect any additional fees or expenses that may be imposed by separate accounts of insurance companies or in connection with any variable annuity or variable life insurance contract.
3	Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
4	This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/ reimbursement recorded by investment companies in which the Fund may invest.
5	Securities that mature are considered sales for purposes of this calculation.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Assets and Liabilities
December 31, 2022

Assets:
Investment in securities, at value (identified cost $133,355,072)	$113,948,668
Income receivable	2,097,270
Receivable for investments sold	1,350
Receivable for shares sold	43,269
Total Assets	116,090,557
Liabilities:
Payable for shares redeemed	123,003
Payable to bank	1,624
Payable for investment adviser fee (Note 5)	3,317
Payable for administrative fee (Note 5)	498
Payable for portfolio accounting fees	28,290
Payable for distribution services fee (Note 5)	10,197
Payable for printing and postage	9,552
Accrued expenses (Note 5)	2,672
Total Liabilities	179,153
Net assets for 21,749,991 shares outstanding	$115,911,404
Net Assets Consist of:
Paid-in capital	$144,138,607
Total distributable earnings (loss)	(28,227,203)
Total Net Assets	$115,911,404
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Primary Shares:
$68,739,676 ÷ 12,868,155 shares outstanding, no par value, unlimited shares authorized	$5.34
Service Shares:
$47,171,728 ÷ 8,881,836 shares outstanding, no par value, unlimited shares authorized	$5.31

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Operations
Year Ended December 31, 2022

Investment Income:
Interest	$7,712,103
Expenses:
Investment adviser fee (Note 5)	774,585
Administrative fee (Note 5)	106,128
Custodian fees	14,111
Transfer agent fees	14,838
Directors’/Trustees’ fees (Note 5)	1,990
Auditing fees	34,020
Legal fees	9,145
Portfolio accounting fees	107,899
Distribution services fee (Note 5)	127,939
Printing and postage	36,474
Miscellaneous (Note 5)	22,491
TOTAL EXPENSES	1,249,620
Waiver of investment adviser fee (Note 5)	(69,666)
Net expenses	1,179,954
Net investment income	6,532,149
Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments	(1,351,738)
Net change in unrealized appreciation of investments	(22,618,212)
Net realized and unrealized gain (loss) on investments	(23,969,950)
Change in net assets resulting from operations	$(17,437,801)

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Changes in Net Assets

Year Ended December 31	2022	2021
Increase (Decrease) in Net Assets
Operations:
Net investment income	$6,532,149	$6,802,923
Net realized gain (loss)	(1,351,738)	1,224,804
Net change in unrealized appreciation/depreciation	(22,618,212)	(648,867)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS	(17,437,801)	7,378,860
Distributions to Shareholders:
Primary Shares	(4,434,390)	(5,363,823)
Service Shares	(2,815,712)	(2,367,247)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS	(7,250,102)	(7,731,070)
Share Transactions:
Proceeds from sale of shares	17,048,944	39,605,192
Net asset value of shares issued to shareholders in payment of distributions declared	7,250,097	7,731,066
Cost of shares redeemed	(44,429,214)	(46,465,306)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS	(20,130,173)	870,952
Change in net assets	(44,818,076)	518,742
Net Assets:
Beginning of period	160,729,480	160,210,738
End of period	$115,911,404	$160,729,480

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Notes to Financial Statements

December 31, 2022

1. ORGANIZATION

Federated Hermes Insurance Series (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of six portfolios. The financial statements included herein are only those of Federated Hermes High Income Bond Fund II (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers two classes of shares: Primary Shares and Service Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. Fund shares are available exclusively as a funding vehicle for life insurance companies writing variable life insurance policies and variable annuity contracts. The investment objective of the Fund is to seek high current income.

2. SIGNIFICANT ACCOUNTING POLICIES

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

◾

Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by Federated Investment Management Company (the “Adviser”).

◾

Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.

◾

Shares of other mutual funds or non-exchange traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.

◾

Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and ask quotations.

◾

Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser.

◾

For securities that are fair valued in accordance with procedures established by and under the general supervision of the Adviser, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.

If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Adviser’s valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion of the Adviser’s valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.

Fair Valuation and Significant Events Procedures

Pursuant to Rule 2a-5 under the Act, the Fund’s Board of Trustees (the “Trustees”) has designated the Adviser as the Fund’s valuation designee to perform any fair value determinations for securities and other assets held by the Fund. The Adviser is subject to the Trustees’ oversight and certain reporting and other requirements intended to provide the Trustees the information needed to oversee the Adviser’s fair value determinations.

The Adviser, acting through its Valuation Committee, is responsible for determining the fair value of investments for which market quotations are not readily available. The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser’s affiliated companies and determines fair value and oversees the calculation of the NAV. The Valuation Committee is also authorized to use pricing services to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Adviser. The Trustees periodically review the fair valuations made by the Valuation Committee. The Trustees have also approved the Adviser’s fair valuation and significant events procedures as part of the Fund’s compliance program and will review any changes made to the procedures.

Annual Shareholder Report

the prices bid and ask for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Adviser.

The Adviser has also adopted procedures requiring an investment to be priced at its fair value whenever the Valuation Committee determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

◾

With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;

◾

Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;

◾

Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.

The Adviser has adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Valuation Committee will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Adviser. The Trustees periodically review fair valuations made in response to significant events.

Repurchase Agreements

Investment Income, Gains and Losses, Expenses and Distributions

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Amortization/accretion of premium and discount is included in investment income. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses. The detail of the total fund expense waiver of $69,666 is disclosed in Note 5.

Federal Taxes

It is the Fund’s policy to comply with the Subchapter M provision of the Internal Revenue Code (the “Code”) and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the year ended December 31, 2022, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of December 31, 2022, tax years 2019 through 2022 remain subject to examination by the Fund’s major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

Annual Shareholder Report

When-Issued and Delayed-Delivery Transactions

Restricted Securities

The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer’s expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund’s restricted securities, like other securities, are priced in accordance with procedures established by and under the general supervision of the Adviser.

Other

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Year Ended 12/31/2022		Year Ended 12/31/2021
Primary Shares:	Shares	Amount	Shares	Amount
Shares sold	2,111,750	$11,833,606	4,174,668	$26,549,890
Shares issued to shareholders in payment of distributions declared	769,859	4,434,390	875,012	5,363,823
Shares redeemed	(6,157,435)	(35,688,342)	(6,051,898)	(38,301,626)
NET CHANGE RESULTING FROM PRIMARY SHARE TRANSACTIONS	(3,275,826)	$(19,420,346)	(1,002,218)	$(6,387,913)
	Year Ended 12/31/2022		Year Ended 12/31/2021
Service Shares:	Shares	Amount	Shares	Amount
Shares sold	910,215	$5,215,338	2,074,882	$13,055,302
Shares issued to shareholders in payment of distributions declared	490,541	2,815,707	387,437	2,367,243
Shares redeemed	(1,579,698)	(8,740,872)	(1,294,328)	(8,163,680)
NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS	(178,942)	$(709,827)	1,167,991	$7,258,865
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS	(3,454,768)	$(20,130,173)	165,773	$870,952

4. FEDERAL TAX INFORMATION

The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended December 31, 2022 and 2021, was as follows:

	2022	2021
Ordinary income	$7,250,102	$7,731,070

As of December 31, 2022, the components of distributable earnings on a tax-basis were as follows:

Undistributed ordinary income	$6,772,839
Net unrealized depreciation	$(19,796,346)
Capital loss carryforwards	$(15,203,910)
TOTAL	$(28,227,417)

At December 31, 2022, the cost of investments for federal tax purposes was $133,744,800. The net unrealized depreciation of investments for federal tax purposes was $19,796,132. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $874,530 and net unrealized depreciation from investments for those securities having an excess of cost over value of $20,670,662. The difference between book-basis and tax-basis net unrealized appreciation is attributable to differing treatments for defaulted securities and discount accretion/premium amortization on debt securities.

Annual Shareholder Report

As of December 31, 2022, the Fund had a capital loss carryforward of $15,203,910 which will reduce the Fund’s taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code of 1986, thereby reducing the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, these net capital losses retain their character as either short-term or long-term and do not expire.

The following schedule summarizes the Fund’s capital loss carryforwards:

Short-Term	Long-Term	Total
$235,769	$14,968,141	$15,203,910

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.60% of the Fund’s average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund for competitive reasons such as to maintain the Fund’s expense ratio, or as and when appropriate, to maintain positive or zero net yields. For the year ended December 31, 2022, the Adviser voluntarily waived $69,666 of its fee.

Administrative Fee

Administrative Fee	Average Daily Net Assets of the Investment Complex
0.100%	on assets up to $50 billion
0.075%	on assets over $50 billion

In addition, FAS may charge certain out-of-pocket expenses to the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund’s Service Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at 0.25% of average daily net assets, annually, to compensate FSC. For the year ended December 31, 2022, distribution services fees for the Fund were as follows:

	Distribution Services Fees Incurred
Service Shares	$127,939

When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee. For the year ended December 31, 2022, FSC did not retain any fees paid by the Fund.

Expense Limitation

The Adviser and certain of its affiliates (which may include FAS and FSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund’s Primary Shares and Service Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.81% and 1.06% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) May 1, 2023; or (b) the date of the Fund’s next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.

Interfund Transactions

During the year ended December 31, 2022, the Fund engaged in purchase transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees and/or common Officers. These purchase transactions complied with Rule 17a-7 under the Act and amounted to $187,375.

Annual Shareholder Report

Directors’/Trustees’ and Miscellaneous Fees

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended December 31, 2022, were as follows:

Purchases	$15,818,526
Sales	$34,942,900

7. LINE OF CREDIT

The Fund participates with certain other Federated Hermes Funds, on a several basis, in an up to $500,000,000 unsecured, 364-day, committed, revolving line of credit (LOC) agreement dated June 22, 2022. The LOC was made available to temporarily finance the repurchase or redemption of shares of the Fund, failed trades, payment of dividends, settlement of trades and for other short-term, temporary or emergency general business purposes. The Fund cannot borrow under the LOC if an inter-fund loan is outstanding. The Fund’s ability to borrow under the LOC also is subject to the limitations of the Act and various conditions precedent that must be satisfied before the Fund can borrow. Loans under the LOC are charged interest at a fluctuating rate per annum equal to (a) the highest, on any day, of (i) the federal funds effective rate, (ii) the published secured overnight financing rate plus an assigned percentage, and (iii) 0.0%, plus (b) a margin. Any fund eligible to borrow under the LOC pays its pro rata share of a commitment fee based on the amount of the lenders’ commitment that has not been utilized, quarterly in arrears and at maturity. As of December 31, 2022, the Fund had no outstanding loans. During the year ended December 31, 2022, the Fund did not utilize the LOC.

8. INTERFUND LENDING

9. INDEMNIFICATIONS

10. OTHER MATTERS

11. Recent Accounting Pronouncements

In December 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-06 “Reference Rate Reform (Topic 848)”. ASU No. 2022-06 updates and clarifies ASU No. 2020-04, which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of LIBOR and other interbank-offered reference rates. The temporary relief provided by ASU No. 2022-06 is effective immediately for certain reference rate-related contract modifications that occur through December 31, 2024. Management does not expect ASU No. 2022-06 to have a material impact on the financial statements.

Annual Shareholder Report

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Federated Hermes Insurance Series and Shareholders of Federated Hermes High Income Bond Fund II:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of Federated Hermes High Income Bond Fund II (the Fund), a portfolio of Federated Hermes Insurance Series, including the portfolio of investments, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights 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 years in the two year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

We have served as the auditor for one or more of Federated Hermes’ investment companies since 2006.

Boston, Massachusetts
February 15, 2023

Annual Shareholder Report

Shareholder Expense Example (unaudited)

ACTUAL EXPENSES

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

	Beginning Account Value 7/1/2022	Ending Account Value 12/31/2022	Expenses Paid During Period1
Actual:
Primary Shares	$1,000	$1,023.00	$4.13
Service Shares	$1,000	$1,021.20	$5.40
Hypothetical (assuming a 5% return before expenses):
Primary Shares	$1,000	$1,021.12	$4.13
Service Shares	$1,000	$1,019.86	$5.40

Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the

one-half-year period). The expenses shown in the table do not include the charges and expenses imposed by the insurance company under the variable insurance

product contract. Please refer to the variable insurance product prospectus for a complete listing of these expenses. The annualized net expense ratios are as

follows:

Primary Shares	0.81%
Service Shares	1.06%

Annual Shareholder Report

Board of Trustees and Trust Officers

Interested Trustees Background

Name Birth Date Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s)
J. Christopher Donahue* Birth Date: April 11, 1949 Trustee Indefinite Term Began serving: September 1993	Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd.
Thomas R. Donahue* Birth Date: October 20, 1958 Trustee Indefinite Term Began serving: May 2016	Principal Occupations: Director or Trustee of certain of the funds in the Federated Hermes Fund Family; Chief Financial Officer, Treasurer, Vice President and Assistant Secretary, Federated Hermes, Inc.; Chairman and Trustee, Federated Administrative Services; Chairman and Director, Federated Administrative Services, Inc.; Trustee and Treasurer, Federated Advisory Services Company; Director or Trustee and Treasurer, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, and Federated Investment Management Company; Director, MDTA LLC; Director, Executive Vice President and Assistant Secretary, Federated Securities Corp.; Director or Trustee and Chairman, Federated Services Company and Federated Shareholder Services Company; and Director and President, FII Holdings, Inc. Previous Positions: Director, Federated Hermes, Inc.; Assistant Secretary, Federated Investment Management Company, Federated Global Investment Management Company and Passport Research, LTD; Treasurer, Passport Research, LTD; Executive Vice President, Federated Securities Corp.; and Treasurer, FII Holdings, Inc.

INDEPENDENT Trustees Background

Name

Birth Date

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held, Previous Position(s) and Qualifications

John T. Collins

Birth Date: January 24, 1947

Trustee

Indefinite Term

Began serving: October 2013

Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund

Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired).

Other Directorships Held: Director, KLX Energy Services Holdings, Inc. (oilfield services); former Director of

KLX Corp. (aerospace).

Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions

throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm)

and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as

Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth

Israel Deaconess Medical Center (Harvard University Affiliate Hospital).

Annual Shareholder Report

Name Birth Date Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015	Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Lead Director, Member of the Audit and Nominating and Corporate Governance Committees, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association.
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor Emerita of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (natural gas). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as Associate General Secretary of the Diocese of Pittsburgh, a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green was appointed by the Supreme Court of Pennsylvania to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); Director, Catholic Charities, Pittsburgh; and Director CNX Resources Corporation (natural gas). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint Francis University.
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber); and Director, The Golisano Children’s Museum of Naples, Florida.
Madelyn A. Reilly Birth Date: February 2, 1956 Trustee Indefinite Term Began serving: November 2020	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors, Duquesne University (Retired). Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors and Director of Risk Management and Associate General Counsel, Duquesne University. Prior to her work at Duquesne University, Ms. Reilly served as Assistant General Counsel of Compliance and Enterprise Risk as well as Senior Counsel of Environment, Health and Safety, PPG Industries. Ms. Reilly currently serves as a member of the Board of Directors of UPMC Mercy Hospital.
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CONSOL Energy Inc. (now split into two separate publicly traded companies known as CONSOL Energy Inc. and CNX Resources Corp.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and CNX Gas Company; and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm).

Annual Shareholder Report

Name

Birth Date

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held, Previous Position(s) and Qualifications

John S. Walsh

Birth Date:

November 28, 1957

Trustee

Indefinite Term

Began serving: January 1999

Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc.

(manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of

portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc.

Other Directorships Held: None.

Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career.

Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors).

OFFICERS

Name Birth Date Address Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years and Previous Position(s)
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013	Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc.
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: January 2005	Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, Inc. in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc.
John B. Fisher Birth Date: May 16, 1956 PRESIDENT Officer since: November 2004	Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Director and Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, and Federated MDTA LLC; Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and CEO of Passport Research, Ltd.; Director and President, Technology, Federated Services Company.
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015	Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement.
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: November 2002	Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments.
Robert J. Ostrowski Birth Date: April 26, 1963 Chief Investment Officer Officer since: May 2004	Principal Occupations: Robert J. Ostrowski joined Federated Hermes, Inc. in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated Hermes’ taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund’s Adviser in 2009 and served as a Senior Vice President of the Fund’s Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University.

Annual Shareholder Report

Name

Birth Date

Address

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years

and Previous Position(s)

Deborah A. Cunningham

Birth Date:

September 15, 1959

Chief Investment Officer

Officer since: June 2012

Principal Occupations: Deborah A. Cunningham was named Chief Investment Officer of Federated Hermes’ money market

products in 2004. She joined Federated Hermes in 1981 and has been a Senior Portfolio Manager since 1997

and an Executive Vice President of the Fund’s Adviser since 2009. Ms. Cunningham has received the Chartered Financial

Analyst designation and holds an M.S.B.A. in Finance from Robert Morris College.

Annual Shareholder Report

Evaluation and Approval of Advisory Contract–May 2022

Federated Hermes High Income Bond Fund II (the “Fund”)

Information Received and Review Process

The Board’s consideration of the Contract included review of materials and information covering the following matters, among others: the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates; Federated Hermes’ business and operations; the Adviser’s investment philosophy, personnel and processes; the Fund’s investment objectives and strategies; the Fund’s short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, and relative to the Fund’s particular investment program and a group of its peer funds and/or its benchmark, as appropriate); the Fund’s fees and expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to a group of its peer funds), with due regard for contractual or voluntary expense limitations (if any); the financial condition of Federated Hermes; the Adviser’s profitability with respect to the Fund; distribution and sales activity for the Fund; and the use and allocation of brokerage commissions derived from trading the Fund’s portfolio securities (if any).

Annual Shareholder Report

Nature, Extent and Quality of Services

In addition, the Board considered the financial resources and overall reputation of Federated Hermes and its willingness to consider and make investments in personnel, infrastructure, technology, cybersecurity, business continuity planning and operational enhancements that are designed to benefit the Federated Hermes Funds. The Board noted the significant acquisition of Hermes Fund Managers Limited by Federated Hermes, which has deepened the organization’s investment management expertise and capabilities and expanded the investment process for all of the Federated Hermes Funds to have access to analytical resources related to environmental, social and governance (“ESG”) factors and issuer engagement on ESG matters. The Board considered Federated Hermes’ oversight of the securities lending program for the Federated Hermes Funds that engage in securities lending and noted the income earned by the Federated Hermes Funds that participate in such program. In addition, the Board considered the quality of Federated Hermes’ communications with the Board and responsiveness to Board inquiries and requests made from time to time with respect to the Fund and other Federated Hermes Funds. In this regard, the Board took into account Federated Hermes’ communications with the Board in light of the pandemic. The Board also considered that Federated Hermes is responsible for providing the Federated Hermes Funds’ officers.

Annual Shareholder Report

Federated Hermes Funds’ compliance control structure and the compliance-related resources devoted by Federated Hermes in support of the Fund’s obligations pursuant to Rule 38a-1 under the Investment Company Act of 1940, including Federated Hermes’ commitment to respond to rulemaking and other regulatory initiatives of the SEC. The Board considered Federated Hermes’ approach to internal audits and risk management with respect to the Federated Hermes Funds and its day-to-day oversight of the Federated Hermes Funds’ compliance with their investment objectives and policies as well as with applicable laws and regulations, noting that regulatory and other developments had over time led to an increase in the scope of Federated Hermes’ oversight in this regard, including in connection with the designation of the Federated Hermes Funds’ investment advisers as the administrators of the Federated Hermes Funds’ liquidity risk management program.

Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided by the Adviser to the Fund.

Fund Investment Performance

The Board also reviewed comparative information regarding the performance of other registered funds in the category of peer funds selected by Morningstar, Inc. (the “Morningstar”), an independent fund ranking organization (the “Performance Peer Group”). The Board noted the CCO’s view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases there may be differences in the funds’ objectives or investment management techniques, or the costs to implement the funds, even within the same Performance Peer Group.

For the one-year, three-year and five-year periods ended December 31, 2021, the Fund’s performance was above the median of the Performance Peer Group.

Based on these considerations, the Board concluded that it had continued confidence in the Adviser’s overall capabilities to manage the Fund.

Fund Expenses

The Board considered the advisory fee and overall expense structure of the Fund and the comparative fee and expense information that had been provided in connection with the May Meetings. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, total expense ratios and each element of the Fund’s total expense ratio (i.e., gross and net advisory fees, administrative fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated Hermes from the category of peer funds selected by Morningstar (the “Expense Peer Group”). The Board received a description of the methodology used to select the Expense Peer Group from the overall Morningstar category. The Board also reviewed comparative information regarding the fees and expenses of the broader group of funds in the overall Morningstar category.

Annual Shareholder Report

The Board considered that other registered funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle, in fact, chosen and maintained by the Fund’s shareholders. The Board noted that the range of such other registered funds’ fees and expenses, therefore, appears to be a relevant indicator of what investors have found to be reasonable in the marketplace in which the Fund competes.

The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund’s contractual advisory fee rate and other expenses relative to its Expense Peer Group. In this regard, the Board noted that the contractual advisory fee rate was below the median of the Expense Peer Group, and the Board was satisfied that the overall expense structure of the Fund remained competitive.

Profitability

Economies of Scale

Annual Shareholder Report

The Board considered that the benefits of these investments are likely to be shared with the family of Federated Hermes Funds as a whole. In addition, the Board considered that fee waivers and expense reimbursements are another means for potential economies of scale to be shared with shareholders and can provide protection from an increase in expenses if a Federated Hermes Fund’s assets decline. The Board considered that, in order for the Federated Hermes Funds to remain competitive in the marketplace, Federated Hermes has frequently waived fees and/or reimbursed expenses for the Federated Hermes Funds and has disclosed to shareholders and/or reported to the Board its intention to do so (or continue to do so) in the future. The Board also considered Federated Hermes’ reductions in contractual management fees for certain Federated Hermes Funds during the prior year, including in response to the CCO’s recommendations in the prior year’s CCO Fee Evaluation Report, which have resulted in benefits being realized by shareholders.

Other Benefits

Conclusions

On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Board, and the evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the continuation of the Contract. The Board based its determination to approve the Contract on the totality of the circumstances and relevant factors and with a view of past and future long-term considerations. Not all of the factors and considerations identified above were necessarily deemed to be relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were deemed to be relevant, the Board’s determination to approve the continuation of the Contract reflects its view that Federated Hermes’ performance and actions provided a satisfactory basis to support the determination to approve the continuation of the existing arrangement.

Annual Shareholder Report

Liquidity Risk Management Program–
Annual Evaluation of Adequacy and Effectiveness

In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Federated Hermes Insurance Series (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) for Federated Hermes High Income Bond Fund II (the “Fund” and, collectively with the other non-money market open-end funds advised by Federated Hermes, the “Federated Hermes Funds”). The Program seeks to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Board of Trustees of the Trust (the “Board”) has approved the designation of each Federated Hermes Fund’s investment adviser as the administrator for the Program (the “Administrator”) with respect to that Fund. The Administrator, in turn, has delegated day-to-day responsibility for the administration of the Program to multiple Liquidity Risk Management Committees, which are comprised of representatives from certain divisions within Federated Hermes.

The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent a Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if a Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s highly liquid investments below its HLIM; and (6) periodic reporting to the Board.

At its meetings in May 2022, the Board received and reviewed a written report (the “Report”) from the Federated Hermes Funds’ Chief Compliance Officer and Chief Risk Officer, on behalf of the Administrator, concerning the operation of the Program for the period from April 1, 2021 through March 31, 2022 (the “Period”). The Report addressed the operation of the Program and assessed its adequacy and effectiveness, including, where applicable, the operation of any HLIM established for a Federated Hermes Fund and each Federated Hermes Fund’s access to other available funding sources such as the Federated Hermes Funds’ interfund lending facility, redemptions in-kind, reverse repurchase agreement transactions, redemptions delayed beyond the normal T+1 settlement, but within seven days of the redemption request, and committed lines of credit. There were no material changes to the Program during the Period. The Report summarized the operation of the Program and the information and factors considered by the Administrator in assessing whether the Program has been adequately and effectively implemented with respect to the Federated Hermes Funds. Such information and factors included, among other things:

◾ confirmation that it was not necessary for the Fund to utilize, and the Fund did not utilize, alternative funding sources during the Period;

◾ the periodic classifications of the Fund’s investments into one of four liquidity categories and the methodologies and inputs used to classify the investments, including the Fund’s reasonably anticipated trade size;

◾ the analysis received from a third-party liquidity assessment vendor that is taken into account in the process of determining the liquidity classifications of the Fund’s investments and the results of an evaluation of the services performed by the vendor in support of this process;

◾ the fact that the Fund invested primarily in highly liquid investments during the Period and, therefore, was not required to establish, and has not established, an HLIM and the procedures for monitoring the status of the Fund as investing primarily in highly liquid investments;

◾ the fact that the Fund invested no more than 15% of its assets in illiquid investments during the Period and the procedures for monitoring this limit;

◾ the fact that there were no liquidity events during the Period, that materially affected the Fund’s liquidity risk;

◾ the impact on liquidity and management of liquidity risk caused by extended non-U.S. market closures and confirmation that there were no issues for any of the affected Federated Hermes Funds in meeting shareholder redemptions at any time during these temporary non-U.S. market closures;

◾ circumstances during the Period under which the Administrator convened meetings of the Liquidity Risk Management Committees more frequently than normal to conduct enhanced liquidity risk monitoring, including prior to the Russian invasion of Ukraine.

Based on this review, the Administrator concluded that the Program is operating effectively to assess and manage the Fund’s liquidity risk, and that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.

Annual Shareholder Report

Voting Proxies on Fund Portfolio Securities

Quarterly Portfolio Schedule

Each fiscal quarter, the Fund will file with the SEC a complete schedule of its monthly portfolio holdings on “Form N-PORT.” The Fund’s holdings as of the end of the third month of every fiscal quarter, as reported on Form N-PORT, will be publicly available on the SEC’s website at sec.gov within 60 days of the end of the fiscal quarter upon filing. You may also access this information via the link to the Fund and share class name at FederatedInvestors.com.

Annual Shareholder Report

Federated Hermes High Income Bond Fund II

Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561

Federated Securities Corp., Distributor

CUSIP 313916306
CUSIP 313916843

G00844-01 (2/23)

Annual Shareholder Report

December 31, 2022

Share Class

Primary

Service

Federated Hermes Kaufmann Fund II

A Portfolio of Federated Hermes Insurance Series

Dear Valued Shareholder,

Thank you for investing with us. We hope you find this information useful and look forward to keeping you informed.

Sincerely,

John B. Fisher, President

Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee

CONTENTS

Management’s Discussion of Fund Performance	1
Portfolio of Investments Summary Table	3
Portfolio of Investments	4
Financial Highlights	10
Statement of Assets and Liabilities	12
Statement of Operations	13
Statement of Changes in Net Assets	14
Notes to Financial Statements	15
Report of Independent Registered Public Accounting Firm	22
Shareholder Expense Example	23
Board of Trustees and Trust Officers	24
Evaluation and Approval of Advisory Contract	28
Liquidity Risk Management Program– Annual Evaluation of Adequacy and Effectiveness	33
Voting Proxies on Fund Portfolio Securities	34
Quarterly Portfolio Schedule	34

Management’s Discussion of Fund Performance (unaudited)

The total return of Federated Hermes Kaufmann Fund II (the “Fund”), based on net asset value for the 12-month reporting period ended December 31, 2022, was -30.09% for the Primary Shares and -30.26% for the Service Shares. The Fund’s benchmark, the Russell Midcap® Growth Index (RMCGI),1 a broad-based securities market index, had a total return of -26.72% for the period. The total return of the Morningstar Insurance Mid-Cap Growth Funds Average (MIMCGFA),2 the peer group average for the Fund, was -29.17%. The Fund’s and MIMCGFA’s total returns for the most recently completed fiscal year reflected actual cash flows, transaction costs and expenses, which were not reflected in the total return of the RMCGI.

During the reporting period, the Fund’s investment strategy focused on stock selection, sector exposure and country allocation. These were the most significant factors affecting the Fund’s performance relative to the RMCGI.

The following discussion will focus on the Fund’s Primary Shares relative to the RMCGI.

MARKET OVERVIEW

During the reporting period, the U.S. economy and most significant westernized economies saw inflation continue to be the primary headwind to economic growth. Inflationary pressures persisted again due to the impact from record monetary and fiscal stimulus as well as the Eastern European conflict along with regulatory restrictions causing supply disruptions. This inflationary pressure caused most global central banks to pursue aggressive monetary tightening policies in 2022. This pressure seemed to ease a bit at the end of the year as some economic statistics showed potential signs of inflation peaking and heading lower.

The U.S. equity markets were negative for the reporting period, led by mid-cap stocks represented by the Russell Midcap® Index3 (-17.32%), followed by the S&P 500 Index4 (-18.11%), followed by large-cap stocks represented by the Russell 1000® Index5 (-19.13%), followed by small-cap stocks represented by the Russell 2000® Index6 (-20.44%). Mid-cap growth stocks underperformed mid-cap value stocks during the period.

The best-performing RMCGI sectors during the reporting period were Energy (+59.15%), Utilities (+2.87%) and Consumer Staples (-3.72%). The weakest-performing sectors during the reporting period were Communication Services (-55.59%), Information Technology (-33.11%) and Consumer Discretionary (-29.20%).

STOCK SELECTION

The five stocks that contributed the most to the Fund’s performance versus the RMCGI were: arGEN-X SE, Rhythm Pharmaceuticals Inc., New Fortress Energy Inc., Match Group, Inc. and Datadog Inc.

The five stocks that most negatively affected Fund performance were: Shopify Inc., Tandem Diabetes Care Inc., Enphase Energy Inc., Advanced Micro Devices Inc. and GDS Holdings Ltd.

SECTOR EXPOSURE

At the end of the reporting period, approximately 57% of the portfolio was invested in four large sectors: Health Care, Information Technology, Consumer Discretionary and Financials. These sectors have historically provided good opportunities for bottom-up growth investors. During the reporting period, stock selection in Health Care and Technology had a negative impact on performance. The cash position of the Fund was approximately 10% on average throughout the reporting period, which aided relative performance during a down market period.

COUNTRY ALLOCATION

The reporting period ended with approximately 13% of the Fund invested in non-U.S. holdings. During the reporting period, stock selection in foreign companies7 was a negative contributor to Fund performance. However, the allocation outside the U.S. helped Fund performance relative to the RMCGI.

Please see the footnotes to the line graph below for definitions of, and further information about, the RMCGI.

Please see the footnotes to the line graph below for definitions of, and further information about, the MIMCGFA.

The Russell Midcap® Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap® Index is a subset of the Russell 1000® Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership.*

The S&P 500 is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.*

The Russell 1000® Index measures the performance of the large-cap segment of the U.S. equity universe. It includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership.*

The Russell 2000® Index measures the performance of the small-cap segment of the U.S. equity universe. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.*

International investing involves special risks including currency risk, increased volatility, political risks and differences in auditing and other financial standards.

The index is unmanaged, and it is not possible to invest directly in an index.

Annual Shareholder Report

FUND PERFORMANCE AND GROWTH OF A $10,000 INVESTMENT

The graph below illustrates the hypothetical investment of $10,0001 in the Federated Hermes Kaufmann Fund II (the “Fund”) from December 31, 2012 to December 31, 2022, compared to the Russell Midcap® Growth Index (RMCGI)2 and the Morningstar Insurance Mid-Cap Growth Funds Average (MIMCGFA).3 The Average Annual Total Return table below shows returns for each class averaged over the stated periods.

Growth of a $10,000 Investment

Growth of $10,000 as of December 31, 2022

The Fund offers multiple share classes whose performance may be greater than or less than its other share class(es) due to differences in sales charges and expenses.

Average Annual Total Returns for the Period Ended 12/31/2022

	1 Year	5 Years	10 Years
Primary Shares	-30.09%	5.10%	10.81%
Service Shares	-30.26%	4.85%	10.53%
RMCGI	-26.72%	7.64%	11.41%
MIMCGFA	-29.17%	7.11%	10.22%

Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance of a variable investment option changes over time and current performance may be lower or higher than what is stated. For current to the most recent month-end performance, contact your insurance company. The performance information presented does not include the charges and expenses imposed by the insurance company under the variable insurance product contract. The inclusion of such charges would lower performance. Please refer to the variable insurance product prospectus for a complete listing of these expenses. Fund shares are available exclusively as a funding vehicle for life insurance companies writing variable life insurance policies and variable annuity contracts. Variable investment options are not obligations of or guaranteed by any bank and are not federally insured.

The Fund’s performance assumes the reinvestment of all dividends and distributions. The RMCGI and MIMCGFA have been adjusted to reflect reinvestment of dividends on securities in the index and average.

The RMCGI measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap® Index companies with higher price-to-book ratios and higher forecasted growth values. The RMCGI is constructed to provide a comprehensive and unbiased barometer of the mid-cap growth market. The RMCGI is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true mid-cap growth market. The RMCGI is not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund’s performance. The index is unmanaged and unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.

Morningstar figures represent the average of the total returns reported by all the funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. The Morningstar figures in the Growth of a $10,000 Investment line graph are based on historical return information published by Morningstar and reflect the return of the funds comprising the category in the year of publication. Because the funds designated by Morningstar as falling into the category can change over time, the Morningstar figures in the line graph may not match the Morningstar figures in the Average Annual Total Returns table, which reflect the return of the funds that currently comprise the category.

Annual Shareholder Report

Portfolio of Investments Summary Table (unaudited)

At December 31, 2022, the Fund’s sector composition1 was as follows:

Sector Composition	Percentage of Total Net Assets
Health Care	39.2%
Financials	7.9%
Consumer Discretionary	6.3%
Industrials	5.5%
Real Estate	5.4%
Information Technology	4.3%
Energy	4.2%
Materials	4.1%
Utilities	2.8%
Consumer Staples	1.8%
Communication Services	0.3%
U.S. Treasury Notes	2.7%
Securities Lending Collateral2	0.3%
Cash Equivalents3	16.1%
Other Assets and Liabilities—Net4	(0.9)%
TOTAL	100%

1	Except for Securities Lending Collateral, Cash Equivalents and Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS), except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS.
2	Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements.
3	Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing securities lending collateral.
4	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Annual Shareholder Report

Portfolio of Investments

December 31, 2022

Shares or Principal Amount			Value
		COMMON STOCKS—81.4%
		Communication Services—0.3%
2,000	1	Take-Two Interactive Software, Inc.	$ 208,260
5,300	1	ZoomInfo Technologies, Inc.	159,583
		TOTAL	367,843
		Consumer Discretionary—6.3%
7,500	1	Airbnb, Inc.	641,250
3,000	1	Alibaba Group Holding Ltd., ADR	264,270
11,900	1	Amazon.com, Inc.	999,600
466	1	Chipotle Mexican Grill, Inc.	646,570
4,156		Choice Hotels International, Inc.	468,132
1,500	1	Etsy, Inc.	179,670
5,900	1	Floor & Decor Holdings, Inc.	410,817
7,400	1	Las Vegas Sands Corp.	355,718
1,700	1	Lululemon Athletica, Inc.	544,646
300	1	Mercadolibre, Inc.	253,872
7,230		Moncler SPA	384,858
617,686		NagaCorp Ltd.	544,539
11,100	1	Planet Fitness, Inc.	874,680
32,100	1,2	Sportradar Group AG	319,716
261		Vail Resorts, Inc.	62,209
13,300		Wingstop, Inc.	1,830,346
5,100	1	YETI Holdings, Inc.	210,681
		TOTAL	8,991,574
		Consumer Staples—1.8%
910		Costco Wholesale Corp.	415,415
17,800		Philip Morris International, Inc.	1,801,538
26,700	1	The Duckhorn Portfolio, Inc.	442,419
		TOTAL	2,659,372
		Energy—4.2%
12,000		Cheniere Energy, Inc.	1,799,520
69,300	2	New Fortress Energy, Inc.	2,939,706
5,270		Pioneer Natural Resources, Inc.	1,203,615
3,012		Williams Cos., Inc.	99,095
		TOTAL	6,041,936
		Financials—7.9%
27,900		Apollo Global Management, Inc.	1,779,741
1,740		BlackRock, Inc.	1,233,016
234,158	1	Blue Owl Capital, Inc.	2,482,075
62,400		FinecoBank Banca Fineco SPA	1,039,930
20,700		Hamilton Lane Alliance Holdings I, Inc.	1,322,316
20,600		KKR & Co., Inc., Class Common	956,252
2,222		MSCI, Inc., Class A	1,033,608
4,451		S&P Global, Inc.	1,490,818
		TOTAL	11,337,756
		Health Care—38.8%
4,600		Abbott Laboratories	505,034
23,300	1	Acrivon Therapeutics, Inc.	268,416
32,712	1	Albireo Pharma, Inc.	706,906
66,400	1	Alector, Inc.	612,872
33,480	1	Amphastar Pharmaceuticals, Inc.	938,110
22,901	1	Amylyx Pharmaceuticals, Inc.	846,192
33,186	1,2	AnaptysBio, Inc.	1,028,434
57,800	1	Annexon, Inc.	298,826
4,600	1	Apellis Pharmaceuticals, Inc.	237,866

Annual Shareholder Report

Shares or Principal Amount			Value
		COMMON STOCKS—continued
		Health Care—continued
8,000	1	Apollo Endosurgery, Inc.	$ 79,760
65,229	1,2	Arcturus Therapeutics Holdings, Inc.	1,106,284
21,149	1	Argenx SE	7,969,434
66,600	1	aTyr Pharma, Inc.	145,854
36,300	1,2	Avidity Biosciences LLC	805,497
7,000	1	Century Therapeutics, Inc.	35,910
7,369	1	Century Therapeutics, Inc.	37,803
13,352	1	Cerevel Therapeutics Holdings	421,122
12,900	1	Chinook Therapeutics, Inc.	337,980
56,475	1,3	Contra Akouos, Inc., Rights	44,615
93,806	1	Corcept Therapeutics, Inc.	1,905,200
5,758	1,2	CRISPR Therapeutics AG	234,063
14,500		Danaher Corp.	3,848,590
3,500	1	Denali Therapeutics, Inc.	97,335
32,100	1	Dexcom, Inc.	3,635,004
194,638	1	Dynavax Technologies Corp.	2,070,948
2,900	1	EDAP TMS SA, ADR	30,914
6,800		Eli Lilly & Co.	2,487,712
3,200	1	Fate Therapeutics, Inc.	32,288
14,100	1	Fusion Pharmaceuticals, Inc.	44,415
47,600	1,2	Gamida Cell Ltd.	61,404
3,750	1	Genmab A/S	1,588,416
14,700	1	Genmab A/S, ADR	622,986
18,728	1	Gracell Biotechnologies, Inc., ADR	43,074
8,060	1,2	Graphite Bio, Inc.	26,759
7,582	1	Guardant Health, Inc.	206,230
36,200	1	IDEAYA Biosciences, Inc.	657,754
1,175	1	IDEXX Laboratories, Inc.	479,353
2,800	1	Illumina, Inc.	566,160
10,000	1,4	Immatics N.V.	87,100
4,901	1	Insulet Corp.	1,442,805
28,579	1	Intellia Therapeutics, Inc.	997,121
1,800	1	Intuitive Surgical, Inc.	477,630
4,307	1,3	Laronde, Inc.	93,397
33,800	1	Legend Biotech Corp., ADR	1,687,296
13,200	1,2	Lyell Immunopharma, Inc.	45,804
49,295	1,2	Merus N.V.	762,594
17,225	1	Minerva Neurosciences, Inc.	27,388
5,700	1	Morphic Holding, Inc.	152,475
3,700	1	Natera, Inc.	148,629
3,200		Novo Nordisk A/S	433,280
14,887	1	Orchard Therapeutics PLC	5,523
195,900	1	Orchard Therapeutics PLC, ADR	72,679
6,500	1	Privia Health Group, Inc.	147,615
2,975	1	Prometheus Biosciences, Inc.	327,250
35,326	1	Regulus Therapeutics, Inc.	48,397
5,350	1	Repligen Corp.	905,809
84,174	1	Rezolute, Inc.	174,240
113,900	1,2	Rhythm Pharmaceuticals, Inc.	3,316,768
2,514	1	Sana Biotechnology, Inc.	9,930
10,600	1	Sarepta Therapeutics, Inc.	1,373,548
40,914	1	Scynexis, Inc.	63,826
353,300	1	Seres Therapeutics, Inc.	1,978,480
1,750		Stryker Corp.	427,858
44,500	1	Ultragenyx Pharmaceutical, Inc.	2,061,685
14,900	1	Veeva Systems, Inc.	2,404,562

Annual Shareholder Report

Shares or Principal Amount			Value
		COMMON STOCKS—continued
		Health Care—continued
32,900	1,2	Verve Therapeutics, Inc.	$ 636,615
14,800	1,2	Zentalis Pharmaceuticals, LLC	298,072
		TOTAL	55,673,896
		Industrials—5.5%
40,000	1	CoStar Group, Inc.	3,091,200
1,600		Deere & Co.	686,016
9,975		HEICO Corp.	1,532,559
15,130	1	Mercury Systems, Inc.	676,916
4,154		Quanta Services, Inc.	591,945
3,700		Trane Technologies PLC	621,933
11,639	1	Upwork, Inc.	121,511
5,415		Wabtec Corp.	540,471
		TOTAL	7,862,551
		Information Technology—4.3%
1,000	1	Adobe, Inc.	336,530
400	1	Advanced Micro Devices, Inc.	25,908
8,916	1	Coupa Software, Inc.	705,879
260	1	Crowdstrike Holdings, Inc.	27,376
50,300	1,2	GDS Holdings Ltd., ADR	1,037,186
200	1	Keysight Technologies, Inc.	34,214
700		Marvell Technology, Inc.	25,928
300	1	Okta, Inc.	20,499
308	1	Palo Alto Networks, Inc.	42,978
7,600	1	Q2 Holdings, Inc.	204,212
2,237	1	ServiceNow, Inc.	868,560
18,000	1	Shopify, Inc.	624,780
122	1	ShotSpotter, Inc.	4,127
2,089	1	Splunk, Inc.	179,842
5,630	1	Tyler Technologies, Inc.	1,815,169
1,500	1	Workday, Inc.	250,995
		TOTAL	6,204,183
		Materials—4.1%
32,100		Agnico Eagle Mines Ltd.	1,668,879
1,750		Albemarle Corp.	379,505
48,100		Barrick Gold Corp.	826,358
30,097		Newmont Corp.	1,420,578
7,000		Sherwin-Williams Co.	1,661,310
		TOTAL	5,956,630
		Real Estate—5.4%
26,600		Americold Realty Trust, Inc.	753,046
9,650		Crown Castle International Corp.	1,308,926
24,650		Easterly Government Properties, Inc.	351,756
8,900		National Storage Affiliates Trust	321,468
54,177		Physicians Realty Trust	783,941
11,900		ProLogis, Inc.	1,341,487
7,300		Ryman Hospitality Properties, Inc.	596,994
17,842		STAG Industrial, Inc.	576,475
1,526		Sun Communities, Inc.	218,218
44,400		VICI Properties, Inc.	1,438,560
		TOTAL	7,690,871
		Utilities—2.8%
7,300		American Electric Power Co., Inc.	693,135
11,400		Duke Energy Corp.	1,174,086
25,200		NextEra Energy, Inc.	2,106,720
		TOTAL	3,973,941
		TOTAL COMMON STOCKS (IDENTIFIED COST $80,559,026)	116,760,553

Annual Shareholder Report

Shares or Principal Amount			Value
		U.S. TREASURIES—2.7%
		U.S. Treasury Notes—2.7%
$ 3,500,000		United States Treasury Note, 4.125%, 11/15/2032	$ 3,569,453
300,000		United States Treasury Note, 4.375%, 10/31/2024	299,112
		TOTAL U.S. TREASURIES (IDENTIFIED COST $3,892,625)	3,868,565
		PREFERRED STOCKS—0.3%
		Health Care—0.3%
53,840	3	CeQur SA	297,410
32,229		Regulus Therapeutics, Inc.	44,154
		TOTAL PREFERRED STOCKS (IDENTIFIED COST $409,029)	341,564
	1	WARRANTS—0.1%
		Health Care—0.1%
21,500		Catabasis Pharmaceuticals, Inc., Warrants, Expiration Date 6/22/2023	150
11,450		Catabasis Pharmaceuticals, Inc., Warrants, Expiration Date 2/8/2024	3,237
5,696		Rezolute, Inc., Warrants, Expiration Date 10/8/2027	3,452
1,400		Rezolute, Inc., Warrants, Expiration Date 1/1/2099	2,898
44,952		Rezolute, Inc., Warrants, Expiration Date 12/31/2099	93,051
2,520		Scynexis, Inc., Warrants, Expiration Date 3/8/2023	0
26,500		Scynexis, Inc., Warrants, Expiration Date 5/21/2024	1,200
53,000		Scynexis, Inc., Warrants, Expiration Date 1/1/2099	82,680
644		Scynexis, Inc., Warrants, Expiration Date 4/26/2029	570
		TOTAL WARRANTS (IDENTIFIED COST $511,056)	187,238
		REPURCHASE AGREEMENTS—16.4%
$ 388,239		Interest in $1,350,000,000 joint repurchase agreement 4.30%, dated 12/30/2022 under which Bank of Montreal will repurchase securities provided as collateral for $1,350,645,000 on 1/3/2023. The securities provided as collateral at the end of the period held with BNY Mellon as tri-party agent, were U.S. Government Agency securities with various maturities to 5/20/2072 and the market value of those underlying securities was $1,379,047,631 (purchased with proceeds from securities lending collateral).	388,239
23,168,000		Interest in $1,350,000,000 joint repurchase agreement 4.30%, dated 12/30/2022 under which Bank of Montreal will repurchase securities provided as collateral for $1,350,645,000 on 1/3/2023. The securities provided as collateral at the end of the period held with BNY Mellon as tri-party agent, were U.S. Government Agency securities with various maturities to 5/20/2072 and the market value of those underlying securities was $1,379,047,631.	23,168,000
		TOTAL REPURCHASE AGREEMENTS (IDENTIFIED COST $23,556,239)	23,556,239
		TOTAL INVESTMENT IN SECURITIES—100.9% (IDENTIFIED COST $108,927,975)5	144,714,159
		OTHER ASSETS AND LIABILITIES - NET—(0.9)%6	(1,303,660)
		TOTAL NET ASSETS—100%	$143,410,499

Annual Shareholder Report

An affiliated company is a company in which the Fund, alone or in combination with other funds, has ownership of at least 5% of the voting shares. Transactions with the affiliated companies during the period ended December 31, 2022, were as follows:

Affiliated	Value as of 12/31/2021	Purchases at Cost*	Proceeds from Sales*	Change in Unrealized Appreciation/ Depreciation*	Net Realized Gain/ (Loss)*	Value as of 12/31/2022	Shares Held as of 12/31/2022	Dividend Income*
Health Care:
Albireo Pharma, Inc.	$805,834	$102,642	$(140,530)	$23,130	$(84,170)	$706,906	32,712	$—
Alector, Inc.	$1,355,239	$95,497	$(66,387)	$(694,171)	$(77,306)	$612,872	66,400	$—
Amphastar Pharmaceuticals, Inc.	$768,570	$123,361	$(98,840)	$102,159	$42,860	$938,110	33,480	$—
AnaptysBio, Inc.	$522,779	$416,261	$—	$89,394	$—	$1,028,434	33,186	$—
Annexon, Inc.	$294,144	$246,403	$—	$(241,721)	$—	$298,826	57,800	$—
Arcturus Therapeutics Holdings, Inc.	$1,772,261	$324,022	$—	$(989,999)	$—	$1,106,284	65,229	$—
aTyr Pharma, Inc.	$427,658	$20,391	$—	$(302,195)	$—	$145,854	66,600	$—
Avidity Biosciences LLC**	$701,215	$135,694	$—	$(31,412)	$—	$805,497	36,300	$—
Dynavax Technologies Corp.	$2,924,281	$392,667	$(586,426)	$(556,095)	$(103,479)	$2,070,948	194,638	$—
Fusion Pharmaceuticals, Inc.	$—	$108,687	$—	$(64,272)	$—	$44,415	14,100	$—
Gamida Cell Ltd.**	$297,901	$41,338	$(229,648)	$251,459	$(299,646)	$61,404	47,600	$—
IDEAYA Biosciences, Inc.	$562,419	$145,654	$—	$(50,319)	$—	$657,754	36,200	$—
Merus N.V.	$1,326,060	$188,139	$(32,048)	$(706,214)	$(13,343)	$762,594	49,295	$—
Minerva Neurosciences, Inc.	$110,378	$—	$—	$(82,990)	$—	$27,388	17,225	$—
Orchard Therapeutics PLC**	$19,651	$—	$—	$(14,128)	$—	$5,523	14,887	$—
Orchard Therapeutics PLC, ADR	$229,775	$10,305	$—	$(167,401)	$—	$72,679	195,900	$—
Regulus Therapeutics, Inc.**	$101,521	$—	$—	$(57,367)	$—	$44,154	32,229	$—
Regulus Therapeutics, Inc.	$111,279	$—	$—	$(62,882)	$—	$48,397	35,326	$—
Rezolute, Inc.	$187,481	$170,818	$—	$(184,059)	$—	$174,240	84,174	$—
Rezolute, Inc., Warrants, Expiration Date 10/8/ 2027	$18,278	$—	$—	$(14,826)	$—	$3,452	5,696	$—
Rezolute, Inc., Warrants, Expiration Date 1/1/ 2099	$6,692	$—	$—	$(3,794)	$—	$2,898	1,400	$—
Rezolute, Inc., Warrants, Expiration Date 12/31/ 2099	$—	$170,773	$—	$(77,722)	$—	$93,051	44,952	$—
Rhythm Pharmaceuticals, Inc.	$351,765	$1,254,485	$(345,057)	$2,182,950	$(127,375)	$3,316,768	113,900	$—
Scynexis, Inc.	$245,647	$1,932	$—	$(183,753)	$—	$63,826	40,914	$—
Scynexis, Inc., Warrants, Expiration Date 3/8/ 2023	$648	$—	$—	$(648)	$—	$—	2,520	$—
Scynexis, Inc., Warrants, Expiration Date 5/21/ 2024	$57,375	$—	$—	$(56,175)	$—	$1,200	26,500	$—
Scynexis, Inc., Warrants, Expiration Date 1/1/ 2099	$323,300	$—	$—	$(240,620)	$—	$82,680	53,000	$—
Scynexis, Inc., Warrants, Expiration Date 4/26/ 2029	$—	$—	$—	$570	$—	$570	644	$—
Seres Therapeutics, Inc.	$1,303,645	$696,237	$(22,682)	$25,828	$(24,548)	$1,978,480	353,300	$—
Ultragenyx Pharmaceutical, Inc.**	$3,666,324	$251,891	$(267,486)	$(1,662,706)	$73,662	$2,061,685	44,500	$—
Information Technology:
ShotSpotter, Inc.	$—	$3,942	$—	$185	$—	$4,127	122	$—
Affiliated Issuers no longer in the portfolio at period end	$3,520,606	$907,214	$(2,791,441)	$528,112	$(2,164,491)	$—	—	$13,160
TOTAL OF AFFILIATED COMPANIES TRANSACTIONS	$22,012,726	$5,808,353	$(4,580,545)	$(3,241,682)	$(2,777,836)	$17,221,016	1,800,729	$13,160

*	A portion of the amount shown was recorded when the Fund no longer had ownership of at least 5% of the voting shares.
**	At December 31, 2022, the Fund no longer has ownership of at least 5% voting shares.

1	Non-income-producing security.
2	All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers.
3	Market quotations and price valuations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established by and under the supervision of the Fund’s Adviser acting through its Valuation Committee.
4	Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or availing of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At December 31, 2022, these restricted securities amounted to $87,100, which represented 0.1% of total net assets.
5	The cost of investments for federal tax purposes amounts to $109,373,174.
6	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Note: The categories of investments are shown as a percentage of total net assets at December 31, 2022.

Annual Shareholder Report

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

Level 1—quoted prices in active markets for identical securities.

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of December 31, 2022, in valuing the Fund’s assets carried at fair value:

Valuation Inputs
	Level 1— Quoted Prices	Level 2— Other Significant Observable Inputs	Level 3— Significant Unobservable Inputs	Total
Equity Securities:
Common Stocks
Domestic	$95,739,537	$—	$138,012	$95,877,549
International	8,922,547	11,960,457	—	20,883,004
Preferred Stocks
International	—	—	297,410	297,410
Domestic	44,154	—	—	44,154
Debt Securities:
U.S. Treasuries	—	3,868,565	—	3,868,565
Warrants	95,949	91,289	—	187,238
Repurchase Agreements	—	23,556,239	—	23,556,239
TOTAL SECURITIES	$104,802,187	$39,476,550	$435,422	$144,714,159

The following acronym(s) are used throughout this portfolio:
ADR	—American Depositary Receipt

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Primary Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended December 31,
	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$24.31	$25.46	$22.63	$18.55	$19.16
Income From Investment Operations:
Net investment income (loss)1	(0.08)	(0.24)	(0.22)	(0.10)	(0.11)
Net realized and unrealized gain (loss)	(6.87)	0.83	5.27	6.15	0.95
Total From Investment Operations	(6.95)	0.59	5.05	6.05	0.84
Less Distributions:
Distributions from net realized gain	(2.26)	(1.74)	(2.22)	(1.97)	(1.45)
Net Asset Value, End of Period	$15.10	$24.31	$25.46	$22.63	$18.55
Total Return2	(30.09)%	2.51%	28.79%	33.82%	3.84%
Ratios to Average Net Assets:
Net expenses3	1.54%	1.50%	1.50%	1.51%	1.52%
Net investment loss	(0.51)%	(0.99)%	(1.01)%	(0.49)%	(0.53)%
Expense waiver/reimbursement4	0.00%5	—%	—%	—%	—%
Supplemental Data:
Net assets, end of period (000 omitted)	$34,430	$55,366	$63,502	$57,988	$46,160
Portfolio turnover6	41%	34%	45%	43%	41%

1	Per share numbers have been calculated using the average shares method.
2	Based on net asset value. Total returns do not reflect any additional fees or expenses that may be imposed by separate accounts of insurance companies or in connection with any variable annuity or variable life insurance contract.
3	Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
4	This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/ reimbursement recorded by investment companies in which the Fund may invest.
5	Represents less than 0.01%.
6	Securities that mature are considered sales for purposes of this calculation.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Service Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended December 31,
	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$22.40	$23.65	$21.27	$17.57	$18.26
Income From Investment Operations:
Net investment income (loss)1	(0.11)	(0.28)	(0.26)	(0.15)	(0.15)
Net realized and unrealized gain (loss)	(6.30)	0.77	4.86	5.82	0.91
Total From Investment Operations	(6.41)	0.49	4.60	5.67	0.76
Less Distributions:
Distributions from net realized gain	(2.26)	(1.74)	(2.22)	(1.97)	(1.45)
Net Asset Value, End of Period	$13.73	$22.40	$23.65	$21.27	$17.57
Total Return2	(30.26)%	2.26%	28.48%	33.52%	3.58%
Ratios to Average Net Assets:
Net expenses3	1.79%	1.75%	1.75%	1.76%	1.77%
Net investment loss	(0.73)%	(1.24)%	(1.26)%	(0.74)%	(0.77)%
Expense waiver/reimbursement4	0.00%5	—%	—%	—%	—%
Supplemental Data:
Net assets, end of period (000 omitted)	$108,981	$150,983	$169,061	$129,327	$105,132
Portfolio turnover6	41%	34%	45%	43%	41%

1	Per share numbers have been calculated using the average shares method.
2	Based on net asset value. Total returns do not reflect any additional fees or expenses that may be imposed by separate accounts of insurance companies or in connection with any variable annuity or variable life insurance contract.
3	Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
4	This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/ reimbursement recorded by investment companies in which the Fund may invest.
5	Represents less than 0.01%.
6	Securities that mature are considered sales for purposes of this calculation.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Assets and Liabilities
December 31, 2022

Assets:
Investment in repurchase agreements	$23,556,239
Investment in securities	121,157,920
Investment in securities, at value including $368,981 of securities loaned and $17,221,016 of investments in affiliated companies* (identified cost $108,927,975)	144,714,159
Income receivable	96,280
Receivable for investments sold	45,947
Receivable for shares sold	17,711
Total Assets	144,874,097
Liabilities:
Payable for investments purchased	866,084
Payable for shares redeemed	68,896
Payable to bank	19,128
Payable for collateral due to broker for securities lending (Note 2)	388,239
Payable for investment adviser fee (Note 5)	26,852
Payable for administrative fee (Note 5)	617
Payable for auditing fees	29,038
Payable for distribution services fee (Note 5)	23,596
Accrued expenses (Note 5)	41,148
Total Liabilities	1,463,598
Net assets for 10,218,596 shares outstanding	$143,410,499
Net Assets Consist of:
Paid-in capital	$108,790,767
Total distributable earnings (loss)	34,619,732
Total Net Assets	$143,410,499
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Primary Shares:
$34,429,703 ÷ 2,279,713 shares outstanding, no par value, unlimited shares authorized	$15.10
Service Shares:
$108,980,796 ÷ 7,938,883 shares outstanding, no par value, unlimited shares authorized	$13.73

*	See information listed after the Fund’s Portfolio of Investments.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Operations
Year Ended December 31, 2022

Investment Income:
Dividends (including $13,160 received from affiliated companies* and net of foreign taxes withheld of $23,587)	$1,195,759
Interest	418,796
Net income on securities loaned (Note 2)	26,288
TOTAL INCOME	1,640,843
Expenses:
Investment adviser fee (Note 5)	2,023,216
Administrative fee (Note 5)	123,658
Custodian fees	42,008
Transfer agent fees	14,475
Directors’/Trustees’ fees (Note 5)	2,211
Auditing fees	36,298
Legal fees	11,568
Portfolio accounting fees	67,087
Distribution services fee (Note 5)	289,503
Printing and postage	45,941
Miscellaneous (Note 5)	39,477
TOTAL EXPENSES	2,695,442
Waiver of investment adviser fee (Note 5)	(1,648)
Net expenses	2,693,794
Net investment income (loss)	(1,052,951)
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions:
Net realized loss on investments (including net realized loss of $(2,777,836) on sales of investments in affiliated companies*)	(655,016)
Net realized loss on foreign currency transactions	(7,458)
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $(3,241,682) on investments in affiliated companies*)	(60,249,715)
Net change in unrealized appreciation/depreciation of translation of assets and liabilities in foreign currency	(91)
Net realized and unrealized gain (loss) on investments and foreign currency transactions	(60,912,280)
Change in net assets resulting from operations	$(61,965,231)

*	See information listed after the Fund’s Portfolio of Investments.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Changes in Net Assets

Year Ended December 31	2022	2021
Increase (Decrease) in Net Assets
Operations:
Net investment loss	$(1,052,951)	$(2,635,104)
Net realized gain (loss)	(662,474)	21,835,489
Net change in unrealized appreciation/depreciation	(60,249,806)	(13,043,996)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS	(61,965,231)	6,156,389
Distributions to Shareholders:
Primary Shares	(5,000,707)	(4,188,149)
Service Shares	(15,209,394)	(12,290,249)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS	(20,210,101)	(16,478,398)
Share Transactions:
Proceeds from sale of shares	30,701,378	31,737,876
Net asset value of shares issued to shareholders in payment of distributions declared	20,210,085	16,478,386
Cost of shares redeemed	(31,674,352)	(64,108,774)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS	19,237,111	(15,892,512)
Change in net assets	(62,938,221)	(26,214,521)
Net Assets:
Beginning of period	206,348,720	232,563,241
End of period	$143,410,499	$206,348,720

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Notes to Financial Statements

December 31, 2022

1. ORGANIZATION

Federated Hermes Insurance Series (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of six portfolios. The financial statements included herein are only those of Federated Hermes Kaufmann Fund II (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers two classes of shares: Primary Shares and Service Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. Fund shares are available exclusively as a funding vehicle for life insurance companies writing variable life insurance policies and variable annuity contracts. The investment objective of the Fund is capital appreciation.

2. SIGNIFICANT ACCOUNTING POLICIES

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

◾

Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.

◾

Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by Federated Equity Management Company of Pennsylvania (the “Adviser”).

◾

Shares of other mutual funds or non-exchange traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.

◾

Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and ask quotations.

◾

Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser.

◾

Fair Valuation and Significant Events Procedures

Annual Shareholder Report

◾

With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;

◾

Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;

◾

Repurchase Agreements

Repurchase agreements are subject to Master Netting Agreements (MNA) which are agreements between the Fund and its counterparties that provide for the net settlement of all transactions and collateral with the Fund, through a single payment, in the event of default or termination. Amounts presented on the Portfolio of Investments and Statement of Assets and Liabilities are not net settlement amounts but gross. As indicated above, the cash or securities to be repurchased, as shown on the Portfolio of Investments, exceeds the repurchase price to be paid under the agreement reducing the net settlement amount to zero.

Investment Income, Gains and Losses, Expenses and Distributions

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Amortization/accretion of premium and discount is included in investment income. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses. The detail of the total fund expense waiver of $1,648 is disclosed in Note 5.

Federal Taxes

Annual Shareholder Report

The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or gains are earned.

When-Issued and Delayed-Delivery Transactions

Futures Contracts

The Fund purchases and sells financial futures contracts to manage currency risk and market risks. Upon entering into a financial futures contract with a broker. the Fund is required to deposit with a broker, either U.S. government securities or a specified amount of cash, which is shown as due from broker in the Statement of Assets and Liabilities. Futures contracts are valued daily and unrealized gains or losses are recorded in a “variation margin” account. The Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. There is minimal counterparty risk to the Fund since futures contracts are exchange traded and the exchange’s clearing house, as counterparty to all exchange traded futures contracts, guarantees the futures contracts against default.

During the year ended December 31, 2022, the Fund held no futures contracts.

Foreign Exchange Contracts

The Fund enters into foreign exchange contracts for the delayed-delivery of securities or foreign currency exchange transactions. The Fund also enters into foreign exchange contracts to protect assets against adverse changes in foreign currency exchange rates or exchange control regulations. Purchased contracts are used to acquire exposure to foreign currencies, whereas, contracts to sell are used to hedge the Fund’s securities against currency fluctuations. Risks may arise upon entering into these transactions from the potential inability of counterparties to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the settlement date.

During the year ended December 31, 2022, the Fund held no foreign exchange contracts.

Foreign Currency Translation

The accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the rates of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net 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, the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at period end, resulting from changes in the exchange rate.

Securities Lending

The Fund participates in a securities lending program providing for the lending of equity securities to qualified brokers. The term of the loans within the program is one year or less. The Fund normally receives cash collateral for securities loaned that is invested in affiliated money market funds, other money market instruments and/or repurchase agreements. Investments in money market funds may include funds with a “floating” NAV that can impose redemption fees and liquidity gates, impose certain operational impediments to investing cash collateral, and, if the investee fund’s NAV decreases, result in the Fund recognizing losses and being required to cover the decrease in the value of the cash collateral. Collateral is maintained at a minimum level of 100% of the market value of investments loaned, plus interest, if applicable. In accordance with the Fund’s securities lending agreement, the market value of securities on loan is determined each day at the close of business and any additional collateral required to cover the value of securities on loan is delivered to the Fund on the next business day. Earnings on collateral are allocated between the borrower of the security, the securities lending agent, as a fee for its services under the program and the Fund, according to agreed-upon rates. The Fund will not have the right to vote on securities while they are on loan. However, the Fund will attempt to terminate a loan in an effort to reacquire the securities in time to vote on matters that are deemed to be material by the Adviser. There can be no assurance that the Fund will have sufficient notice of such matters to be able to terminate the loan in time to vote thereon.

Securities lending transactions are subject to MNA. Amounts presented on the Portfolio of Investments and Statement of Assets and Liabilities are not net settlement amounts but gross. As indicated below, the cash collateral received by the Fund exceeds the market value of the securities loaned reducing the net settlement amount to zero. The chart below identifies the amount of collateral received as well as the market value of securities on loan. Additionally, the securities lending agreement executed by the Fund includes an indemnification clause. This clause stipulates that the borrower will reimburse the Fund for any losses as a result of any failure of the borrower to return equivalent securities to the Fund.

Annual Shareholder Report

As of December 31, 2022, securities subject to this type of arrangement and related collateral were as follows:

Fair Value of Securities Loaned	Collateral Received
$368,981	$388,239

Restricted Securities

Additional information on restricted securities, held at December 31, 2022, is as follows:

Security	Acquisition Date	Cost	Value
Immatics N.V.	6/30/2020	$100,000	$87,100

Other

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Year Ended 12/31/2022		Year Ended 12/31/2021
Primary Shares:	Shares	Amount	Shares	Amount
Shares sold	126,871	$2,146,304	79,728	$1,955,393
Shares issued to shareholders in payment of distributions declared	277,971	5,000,705	177,614	4,188,147
Shares redeemed	(402,248)	(6,715,513)	(474,074)	(11,765,919)
NET CHANGE RESULTING FROM PRIMARY SHARE TRANSACTIONS	2,594	$431,496	(216,732)	$(5,622,379)
	Year Ended 12/31/2022		Year Ended 12/31/2021
Service Shares:	Shares	Amount	Shares	Amount
Shares sold	1,893,686	$28,555,074	1,311,017	$29,782,483
Shares issued to shareholders in payment of distributions declared	928,534	15,209,380	564,549	12,290,239
Shares redeemed	(1,623,969)	(24,958,839)	(2,283,278)	(52,342,855)
NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS	1,198,251	$18,805,615	(407,712)	$(10,270,133)
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS	1,200,845	$19,237,111	(624,444)	$(15,892,512)

4. FEDERAL TAX INFORMATION

The accounting treatment of certain items in accordance with income tax regulations may differ from the accounting treatment in accordance with GAAP which may result in permanent differences. In the case of the Fund, such differences primarily result from net operating losses.

For the year ended December 31, 2022, permanent differences identified and reclassified among the components of net assets were as follows:

Increase (Decrease)
Paid-In Capital	Total Distributable Earnings (Loss)
$(1,236,369)	$1,236,369

Annual Shareholder Report

The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended December 31, 2022 and 2021, was as follows:

	2022	2021
Long-term capital gains	$20,210,101	$16,478,398

As of December 31, 2022, the components of distributable earnings on a tax-basis were as follows:

Net unrealized appreciation	$35,340,771
Capital loss carryforwards	$(721,039)
TOTAL	$34,619,732

At December 31, 2022, the cost of investments for federal tax purposes was $109,373,174. The net unrealized appreciation of investments for federal tax purposes was $35,340,985. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $45,537,742 and net unrealized depreciation from investments for those securities having an excess of cost over value of $10,196,757. The difference between book-basis and tax-basis net unrealized appreciation is attributable to differing treatments for deferral of losses on wash sales, passive foreign investment company adjustments and discount accretion/premium amortization on debt securities.

As of December 31, 2022, the Fund had a capital loss carryforward of $721,039 which will reduce the Fund’s taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, thereby reducing the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, these net capital losses retain their character as either short-term or long-term and do not expire.

The following schedule summarizes the Fund’s capital loss carryforwards:

Short-Term	Long-Term	Total
$721,039	$—	$721,039

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 1.30% of the Fund’s average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund for competitive reasons such as to maintain the Fund’s expense ratio, or as and when appropriate, to maintain positive or zero net yields. For the year ended December 31, 2022, the Adviser voluntarily waived $1,648 of its fee.

Certain of the Fund’s assets are managed by Federated Global Investment Management Corp. (the “Sub-Adviser”). Under the terms of a sub-advisory agreement between the Adviser and the Sub-Adviser, the Sub-Adviser receives an allocable portion of the Fund’s adviser fee. The fee is paid by the Adviser out of its resources and is not an incremental Fund expense. For the year ended December 31, 2022, the Sub-Adviser earned a fee of $1,659,037.

Administrative Fee

Administrative Fee	Average Daily Net Assets of the Investment Complex
0.100%	on assets up to $50 billion
0.075%	on assets over $50 billion

FAS may voluntarily choose to waive any portion of its fee. For the year ended December 31, 2022, the annualized fee paid to FAS was 0.079% of average daily net assets of the Fund.

In addition, FAS may charge certain out-of-pocket expenses to the Fund.

Annual Shareholder Report

Distribution Services Fee

The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund’s Primary Shares and Service Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at the following percentages of average daily net assets annually, to compensate FSC:

	Percentage of Average Daily Net Assets of Class
Primary Shares	0.25%
Service Shares	0.25%

FSC may voluntarily choose to waive any portion of its fee. For the year ended December 31, 2022, distribution services fees for the Fund were as follows:

	Distribution Services Fees Incurred
Service Shares	$289,503

When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the year ended December 31, 2022, FSC retained $268 of fees paid by the Fund. For the year ended December 31, 2022, the Fund’s Primary Shares did not incur a distribution services fee; however, it may begin to incur this fee upon approval of the Trustees.

Interfund Transactions

During the year ended December 31, 2022, the Fund engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and amounted to $445,707 and $567,897, respectively. Net realized loss recognized on these transactions was $133,139.

Directors’/Trustees’ and Miscellaneous Fees

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended December 31, 2022, were as follows:

Purchases	$49,034,759
Sales	$71,871,112

7. CONCENTRATION OF RISK

The Fund may invest a portion of its assets in securities of companies that are deemed by the Fund’s management to be classified in similar business sectors. Economic developments may have an effect on the liquidity and volatility of the portfolio securities. A substantial portion of the Fund’s portfolio may be comprised of entities in the Health Care sector. As a result, the Fund may be more susceptible to any economic, business, political or other developments which generally affect these entities.

8. LINE OF CREDIT

Annual Shareholder Report

9. Interfund Lending

10. INDEMNIFICATIONS

11. OTHER MATTERS

12. FEDERAL TAX INFORMATION (UNAUDITED)

For the year ended December 31, 2022, the amount of long-term capital gains designated by the Fund was $20,210,101.

Annual Shareholder Report

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Federated Hermes Insurance Series and the Shareholders of Federated Hermes Kaufmann Fund II:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of Federated Hermes Kaufmann Fund II (the Fund), a portfolio of Federated Hermes Insurance Series, including the portfolio of investments, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights 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 years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

We have served as the auditor for one or more of Federated Hermes’ investment companies since 2006.

Boston, Massachusetts
February 15, 2023

Annual Shareholder Report

Shareholder Expense Example (unaudited)

ACTUAL EXPENSES

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

	Beginning Account Value 7/1/2022	Ending Account Value 12/31/2022	Expenses Paid During Period1
Actual:
Primary Shares	$1,000	$1,020.30	$7.79
Service Shares	$1,000	$1,019.30	$9.06
Hypothetical (assuming a 5% return before expenses):
Primary Shares	$1,000	$1,017.49	$7.78
Service Shares	$1,000	$1,016.23	$9.05

Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the

one-half-year period). The expenses shown in the table do not include the charges and expenses imposed by the insurance company under the variable insurance

product contract. Please refer to the variable insurance product prospectus for a complete listing of these expenses. The annualized net expense ratios are as

follows:

Primary Shares	1.53%
Service Shares	1.78%

Annual Shareholder Report

Board of Trustees and Trust Officers

Interested Trustees Background

Name Birth Date Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s)
J. Christopher Donahue* Birth Date: April 11, 1949 Trustee Indefinite Term Began serving: September 1993	Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd.
Thomas R. Donahue* Birth Date: October 20, 1958 Trustee Indefinite Term Began serving: May 2016	Principal Occupations: Director or Trustee of certain of the funds in the Federated Hermes Fund Family; Chief Financial Officer, Treasurer, Vice President and Assistant Secretary, Federated Hermes, Inc.; Chairman and Trustee, Federated Administrative Services; Chairman and Director, Federated Administrative Services, Inc.; Trustee and Treasurer, Federated Advisory Services Company; Director or Trustee and Treasurer, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, and Federated Investment Management Company; Director, MDTA LLC; Director, Executive Vice President and Assistant Secretary, Federated Securities Corp.; Director or Trustee and Chairman, Federated Services Company and Federated Shareholder Services Company; and Director and President, FII Holdings, Inc. Previous Positions: Director, Federated Hermes, Inc.; Assistant Secretary, Federated Investment Management Company, Federated Global Investment Management Company and Passport Research, LTD; Treasurer, Passport Research, LTD; Executive Vice President, Federated Securities Corp.; and Treasurer, FII Holdings, Inc.

INDEPENDENT Trustees Background

Name

Birth Date

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held, Previous Position(s) and Qualifications

John T. Collins

Birth Date: January 24, 1947

Trustee

Indefinite Term

Began serving: October 2013

Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund

Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired).

Other Directorships Held: Director, KLX Energy Services Holdings, Inc. (oilfield services); former Director of

KLX Corp. (aerospace).

Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions

throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm)

and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as

Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth

Israel Deaconess Medical Center (Harvard University Affiliate Hospital).

Annual Shareholder Report

Name Birth Date Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015	Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Lead Director, Member of the Audit and Nominating and Corporate Governance Committees, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association.
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor Emerita of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (natural gas). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as Associate General Secretary of the Diocese of Pittsburgh, a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green was appointed by the Supreme Court of Pennsylvania to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); Director, Catholic Charities, Pittsburgh; and Director CNX Resources Corporation (natural gas). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint Francis University.
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber); and Director, The Golisano Children’s Museum of Naples, Florida.
Madelyn A. Reilly Birth Date: February 2, 1956 Trustee Indefinite Term Began serving: November 2020	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors, Duquesne University (Retired). Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors and Director of Risk Management and Associate General Counsel, Duquesne University. Prior to her work at Duquesne University, Ms. Reilly served as Assistant General Counsel of Compliance and Enterprise Risk as well as Senior Counsel of Environment, Health and Safety, PPG Industries. Ms. Reilly currently serves as a member of the Board of Directors of UPMC Mercy Hospital.
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CONSOL Energy Inc. (now split into two separate publicly traded companies known as CONSOL Energy Inc. and CNX Resources Corp.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and CNX Gas Company; and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm).

Annual Shareholder Report

Name

Birth Date

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held, Previous Position(s) and Qualifications

John S. Walsh

Birth Date:

November 28, 1957

Trustee

Indefinite Term

Began serving: January 1999

Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc.

(manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of

portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc.

Other Directorships Held: None.

Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career.

Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors).

OFFICERS

Name Birth Date Address Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years and Previous Position(s)
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013	Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc.
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: January 2005	Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, Inc. in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc.
John B. Fisher Birth Date: May 16, 1956 PRESIDENT Officer since: November 2004	Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Director and Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, and Federated MDTA LLC; Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and CEO of Passport Research, Ltd.; Director and President, Technology, Federated Services Company.
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015	Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement.
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: November 2002	Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments.
Robert J. Ostrowski Birth Date: April 26, 1963 Chief Investment Officer Officer since: May 2004	Principal Occupations: Robert J. Ostrowski joined Federated Hermes, Inc. in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated Hermes’ taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund’s Adviser in 2009 and served as a Senior Vice President of the Fund’s Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University.

Annual Shareholder Report

Name

Birth Date

Address

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years

and Previous Position(s)

Deborah A. Cunningham

Birth Date:

September 15, 1959

Chief Investment Officer

Officer since: June 2012

Principal Occupations: Deborah A. Cunningham was named Chief Investment Officer of Federated Hermes’ money market

products in 2004. She joined Federated Hermes in 1981 and has been a Senior Portfolio Manager since 1997

and an Executive Vice President of the Fund’s Adviser since 2009. Ms. Cunningham has received the Chartered Financial

Analyst designation and holds an M.S.B.A. in Finance from Robert Morris College.

Annual Shareholder Report

Evaluation and Approval of Advisory Contract–May 2022

Federated Hermes Kaufmann Fund II (the “Fund”)

At its meetings in May 2022 (the “May Meetings”), the Fund’s Board of Trustees (the “Board”), including those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the investment advisory contract between the Fund and Federated Equity Management Company of Pennsylvania (the “Adviser”) and the investment subadvisory contract between the Adviser and Federated Global Investment Management Corp. (the “Sub-Adviser” and together with the Adviser, the “Advisers”) with respect to the Fund (together, the “Contracts”) for an additional one-year term. The Board’s determination to approve the continuation of the Contracts reflects the exercise of its business judgment after considering all of the information and factors believed to be relevant and appropriate on whether to approve the continuation of the existing arrangements. The information, factors and conclusions that formed the basis for the Board’s approval are summarized below.

Information Received and Review Process

At the request of the Independent Trustees, the Fund’s Chief Compliance Officer (the “CCO”) furnished to the Board in advance of its May Meetings an independent written evaluation presenting on the topics discussed below. The Board considered the CCO’s independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund’s management fee and in determining to approve the continuation of the Contracts. The CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees. At the request of the Independent Trustees, the CCO Fee Evaluation Report followed the same general approach and covered the same topics as that of the report that had previously been delivered by the CCO in his capacity as “Senior Officer” prior to the elimination of the Senior Officer position in December 2017.

In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board considered information specifically prepared in connection with the approval of the continuation of the Contracts that was presented at the May Meetings. In this regard, in the months preceding the May Meetings, the Board requested and reviewed written responses and supporting materials prepared by the Advisers and their affiliates (collectively, “Federated Hermes”) in response to requests posed to Federated Hermes by independent legal counsel on behalf of the Independent Trustees encompassing a wide variety of topics, including those summarized below. The Board also considered such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the Contracts, which included detailed information about the Fund and Federated Hermes furnished to the Board at its meetings throughout the year and in between regularly scheduled meetings on particular matters as the need arose.

The Board’s consideration of the Contracts included review of materials and information covering the following matters, among others: the nature, quality and extent of the advisory and other services provided to the Fund by the Advisers and their affiliates; Federated Hermes’ business and operations; the Advisers’ investment philosophy, personnel and processes; the Fund’s investment objectives and strategies; the Fund’s short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, and relative to the Fund’s particular investment program and a group of its peer funds and/or its benchmark, as appropriate); the Fund’s fees and expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to a group of its peer funds), with due regard for contractual or voluntary expense limitations (if any); the financial condition of Federated Hermes; the Adviser’s profitability with respect to the Fund; distribution and sales activity for the Fund; and the use and allocation of brokerage commissions derived from trading the Fund’s portfolio securities (if any).

The Board also considered judicial decisions concerning allegedly excessive investment advisory fees charged to other registered funds in determining to approve the Contracts. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser’s fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by the adviser to the fund and its shareholders, including the performance of the fund, its benchmark and comparable funds; (2) the adviser’s cost of providing the services and the profitability to the adviser of providing advisory services to the fund; (3) the extent to which the adviser may realize “economies of scale” as the fund grows larger and, if such economies of scale exist, whether they have been appropriately shared with the fund and its shareholders or the family of funds; (4) any “fall-out” benefits that accrue to the adviser because of its relationship with the fund, including research services received from brokers that execute fund trades and any fees paid to affiliates of the adviser for services rendered to the fund; (5) comparative fee and expense structures, including a comparison of management fees paid to the adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the adviser for what might be viewed as like services; and (6) the extent of care, conscientiousness and independence with which the fund’s board

Annual Shareholder Report

members perform their duties and their expertise, including whether they are fully informed about all facts the board deems relevant to its consideration of the adviser’s services and fees. The Board noted that the Securities and Exchange Commission (“SEC”) disclosure requirements regarding the basis for a fund board’s approval of the fund’s investment advisory contract generally align with the factors listed above. The Board was guided by these factors in its review of the Contracts to the extent it considered them to be appropriate and relevant, as discussed further below. The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated Hermes on matters relating to the oversight of the other funds advised by Federated Hermes (each, a “Federated Hermes Fund” and, collectively, the “Federated Hermes Funds”).

In addition to considering the above-referenced factors, the Board was mindful of the preferences and expectations of Fund shareholders and the potential disruptions of the Fund’s operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew the Contracts. In particular, the Board recognized that many shareholders likely have invested in the Fund on the strength of Federated Hermes’ industry standing and reputation and with the expectation that Federated Hermes will have a continuing role in providing advisory services to the Fund. Thus, the Board observed that in the marketplace there are a range of investment options available to the Fund’s shareholders and such shareholders, having had the opportunity to consider other investment options, have effectively selected Federated Hermes by virtue of investing in the Fund.

In determining to approve the continuation of the Contracts, the members of the Board reviewed and evaluated information and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment. While individual members of the Board may have weighed certain factors differently, the Board’s determination to approve the continuation of the Contracts was based on a comprehensive consideration of all information provided to the Board throughout the year and specifically with respect to the continuation of the Contracts. The Board recognized that its evaluation process is evolutionary and that the factors considered and emphasis placed on relevant factors may change in recognition of changing circumstances in the registered fund marketplace. The Independent Trustees were assisted throughout the evaluation process by independent legal counsel. In connection with their deliberations at the May Meetings, the Independent Trustees met separately in executive session with their independent legal counsel and without management present to review the relevant materials and consider their responsibilities under applicable laws. In addition, senior management representatives of Federated Hermes also met with the Independent Trustees and their independent legal counsel to discuss the materials and presentations furnished to the Board at the May Meetings. The Board considered the approval of the Contracts for the Fund as part of its consideration of agreements for funds across the family of Federated Hermes Funds, but its approvals were made on a fund-by-fund basis.

Nature, Extent and Quality of Services

The Board considered the nature, extent and quality of the services provided to the Fund by the Advisers and the resources of Federated Hermes dedicated to the Fund. In this regard, the Board evaluated, among other things, the terms of the Contracts and the range of services provided to the Fund by Federated Hermes. The Board considered the Advisers’ personnel, investment philosophy and process, investment research capabilities and resources, trade operations capabilities, experience and performance track record. The Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and Federated Hermes’ ability and experience in attracting and retaining qualified personnel to service the Fund. The Board also considered the Advisers’ ability to deliver competitive investment performance for the Fund when compared to the Fund’s Performance Peer Group (as defined below), which was deemed by the Board to be a useful indicator of how the Advisers are executing the Fund’s investment program.

In addition, the Board considered the financial resources and overall reputation of Federated Hermes and its willingness to consider and make investments in personnel, infrastructure, technology, cybersecurity, business continuity planning and operational enhancements that are designed to benefit the Federated Hermes Funds. The Board noted the significant acquisition of Hermes Fund Managers Limited by Federated Hermes, which has deepened the organization’s investment management expertise and capabilities and expanded the investment process for all of the Federated Hermes Funds to have access to analytical resources related to environmental, social and governance (“ESG”) factors and issuer engagement on ESG matters. The Board considered Federated Hermes’ oversight of the securities lending program for the Federated Hermes Funds that engage in securities lending and noted the income earned by the Federated Hermes Funds that participate in such program. In addition, the Board considered the quality of Federated Hermes’ communications with the Board and responsiveness to Board inquiries and requests made from time to time with respect to the Fund and other Federated Hermes Funds. In this regard, the Board took into account Federated Hermes’ communications with the Board in light of the pandemic. The Board also considered that Federated Hermes is responsible for providing the Federated Hermes Funds’ officers.

Annual Shareholder Report

Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided by the Advisers to the Fund.

Fund Investment Performance

The Board considered the investment performance of the Fund. In evaluating the Fund’s investment performance, the Board considered performance results in light of the Fund’s investment objective, strategies and risks. The Board considered detailed investment reports on, and the Advisers’ analysis of, the Fund’s performance over different time periods that were provided to the Board throughout the year and in connection with the May Meetings. These reports include, among other items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to one or more relevant categories or groups of peer funds and the Fund’s benchmark index, performance attribution information and commentary on the effect of market conditions.

The Board also reviewed comparative information regarding the performance of other registered funds in the category of peer funds selected by Morningstar, Inc. (the “Morningstar”), an independent fund ranking organization (the “Performance Peer Group”). The Board noted the CCO’s view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Advisers in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases there may be differences in the funds’ objectives or investment management techniques, or the costs to implement the funds, even within the same Performance Peer Group. In this connection, the Board considered that the longevity and experience of the Fund’s portfolio management team and its extensive bottom-up approach to investing may limit the utility of comparisons to other equity mutual funds.

The Fund’s performance fell below the median of the Performance Peer Group for the one-year, three-year and five-year periods ended December 31, 2021. The Board discussed the Fund’s performance with the Advisers and recognized the efforts being taken by the Advisers in the context of other factors considered relevant by the Board.

Based on these considerations, the Board concluded that it had continued confidence in the Advisers’ overall capabilities to manage the Fund.

Fund Expenses

The Board considered the advisory fee, sub-advisory fee, and overall expense structure of the Fund and the comparative fee and expense information that had been provided in connection with the May Meetings. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, total expense ratios and each element of the Fund’s total expense ratio (i.e., gross and net advisory fees, administrative fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated Hermes

Annual Shareholder Report

from the category of peer funds selected by Morningstar (the “Expense Peer Group”). The Board received a description of the methodology used to select the Expense Peer Group from the overall Morningstar category. The Board also reviewed comparative information regarding the fees and expenses of the broader group of funds in the overall Morningstar category.

The Board reviewed the contractual advisory fee rate, and other expenses of the Fund and noted the position of the Fund’s contractual advisory fee rate and other expenses relative to its Expense Peer Group. In this regard, the Board noted that the contractual advisory fee rate was above the median of the Expense Peer Group, but the Board noted the applicable waivers and reimbursements, and that the overall expense structure of the Fund remained competitive in the context of other factors considered by the Board.

The Board also received and considered information about the fees charged by Federated Hermes for providing advisory services to other types of clients with investment strategies similar to those of the Federated Hermes Funds, including non-registered fund clients (such as institutional separate accounts) and third-party unaffiliated registered funds for which any of the Advisers or their affiliates serve as sub-adviser. The Board noted the CCO’s conclusion that non-registered fund clients are inherently different products due to the following differences, among others: (i) different types of targeted investors; (ii) different applicable laws and regulations; (iii) different legal structures; (iv) different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; (v) the time spent by portfolio managers and their teams (among other personnel across various departments, including legal, compliance and risk management) in reviewing securities pricing and fund liquidity; (vi) different administrative responsibilities; (vii) different degrees of risk associated with management; and (viii) a variety of different costs. The Board also considered information regarding the differences in the nature of the services required for Federated Hermes to manage its proprietary registered fund business versus managing a discrete pool of assets as a sub-adviser to another institution’s registered fund, noting the CCO’s view that Federated Hermes generally performs significant additional services and assumes substantially greater risks in managing the Fund and other Federated Hermes Funds than in its role as sub-adviser to an unaffiliated third-party registered fund. The Board noted that the CCO did not consider the fees for providing advisory services to other types of clients to be determinative in judging the appropriateness of the Federated Hermes Funds’ advisory fees.

Profitability

The Board received and considered profitability information furnished by Federated Hermes, as requested by the CCO. Such profitability information included revenues reported on a fund-by-fund basis and estimates of the allocation of expenses made on a fund-by-fund basis, using allocation methodologies specified by the CCO and described to the Board. The Board considered the CCO’s view that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs on a fund-by-fund basis continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable because a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated Hermes Fund and may produce unintended consequences. In addition, the Board considered the CCO’s view that the allocation methodologies used by Federated Hermes in estimating profitability for purposes of reporting to the Board in connection with the continuation of the Contracts are consistent with the methodologies previously reviewed by an independent consultant. The Board noted that the independent consultant had previously conducted a review of the allocation methodologies and reported that, although there is no single best method to allocate expenses, the methodologies used by Federated Hermes are reasonable.

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Economies of Scale

Other Benefits

Conclusions

The Board considered: (i) the CCO’s conclusion that his observations and the information accompanying the CCO Fee Evaluation Report show that the management fee for the Fund is reasonable; and (ii) the CCO’s recommendation that the Board approve the management fee. The Board noted that, under these circumstances, no changes were recommended to, and no objection was raised to the continuation of, the Contracts by the CCO. The CCO also recognized that the Board’s evaluation of the Federated Hermes Funds’ advisory and sub-advisory arrangements is a continuing and ongoing process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its ongoing oversight of the Federated Hermes Funds.

On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Board, and the evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the continuation of the Contracts. The Board based its determination to approve the Contracts on the totality of the circumstances and relevant factors and with a view of past and future long-term considerations. Not all of the factors and considerations identified above were necessarily deemed to be relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were deemed to be relevant, the Board’s determination to approve the continuation of the Contracts reflects its view that Federated Hermes’ performance and actions provided a satisfactory basis to support the determination to approve the continuation of the existing arrangements.

Annual Shareholder Report

Liquidity Risk Management Program–
Annual Evaluation of Adequacy and Effectiveness

In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Federated Hermes Insurance Series (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) for Federated Hermes Kaufmann Fund II (the “Fund” and, collectively with the other non-money market open-end funds advised by Federated Hermes, the “Federated Hermes Funds”). The Program seeks to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Board of Trustees of the Trust (the “Board”) has approved the designation of each Federated Hermes Fund’s investment adviser as the administrator for the Program (the “Administrator”) with respect to that Fund. The Administrator, in turn, has delegated day-to-day responsibility for the administration of the Program to multiple Liquidity Risk Management Committees, which are comprised of representatives from certain divisions within Federated Hermes.

◾ confirmation that it was not necessary for the Fund to utilize, and the Fund did not utilize, alternative funding sources during the Period;

◾ the fact that the Fund invested no more than 15% of its assets in illiquid investments during the Period and the procedures for monitoring this limit;

◾ the fact that there were no liquidity events during the Period, that materially affected the Fund’s liquidity risk;

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Voting Proxies on Fund Portfolio Securities

Quarterly Portfolio Schedule

Annual Shareholder Report

Federated Hermes Kaufmann Fund II

Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561

Federated Securities Corp., Distributor

CUSIP 313916827
CUSIP 313916777

28136 (2/23)

Annual Shareholder Report

December 31, 2022

Share Class

Primary

Service

Federated Hermes Managed Volatility Fund II

A Portfolio of Federated Hermes Insurance Series

Dear Valued Shareholder,

Thank you for investing with us. We hope you find this information useful and look forward to keeping you informed.

Sincerely,

John B. Fisher, President

Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee

CONTENTS

Management’s Discussion of Fund Performance	1
Portfolio of Investments Summary Tables	6
Portfolio of Investments	7
Financial Highlights	22
Statement of Assets and Liabilities	24
Statement of Operations	25
Statement of Changes in Net Assets	26
Notes to Financial Statements	27
Report of Independent Registered Public Accounting Firm	34
Shareholder Expense Example	35
Board of Trustees and Trust Officers	36
Evaluation and Approval of Advisory Contract	40
Liquidity Risk Management Program– Annual Evaluation of Adequacy and Effectiveness	46
Voting Proxies on Fund Portfolio Securities	47
Quarterly Portfolio Schedule	47

Management’s Discussion of Fund Performance (unaudited)

The total return of Federated Hermes Managed Volatility Fund II (the “Fund”), based on net asset value for the 12-month reporting period ended December 31, 2022, was -13.75% for the Primary Shares and -14.00% for the Service Shares. For the same period, the Standard & Poor’s 500 Index (S&P 500)1 returned -18.11%, the Russell 1000® Value Index (R1000V) returned -7.54%, and the Bloomberg U.S. Aggregate Bond Index (BAB) returned -13.01%. Weighting these benchmarks (40% R1000V, 60% BAB) with daily rebalancing, the Fund’s custom benchmark (the “Blended Index”)2 return for the period was -10.57%. The total return of the Morningstar US Insurance Tactical Allocation Funds Average (MUITA)3, a peer group average for the Fund, was -13.81% during the same period. The Fund’s and the MUITA’s total returns for the most recently completed fiscal year reflected actual cash flows, transaction costs and expenses, which are not reflected in the total return of the Blended Index.

The Fund’s investment strategy focused on income-earning investments, specifically equity and fixed-income4 securities that have high income potential, and managing the realized volatility of the overall portfolio through: (1) derivatives; (2) sector and security selection for bonds, and; (3) sector and security selection for equities. These are the factors that most affected Fund performance relative to the Blended Index in the period. These factors were used in pursuit of the Fund objectives of high current income and moderate capital appreciation, while managing the volatility of the overall portfolio.

The following discussion will focus on the performance of the Fund’s Primary Shares relative to the Blended Index.

MARKET OVERVIEW

The reporting period was defined by global central bankers raising interest rates, which pushed the prices of most asset classes, including stocks and bonds, lower. The first three quarters of 2022 were characterized by negative returns for both stocks and bonds as well as heightened volatility of both asset classes. There was some relief in the fourth quarter of 2022 as some market participants perceived that the central banks’ work in raising rates was nearing an end. In the fourth quarter, stocks and bonds produced their first positive return quarter of the year, and volatility was somewhat reduced, particularly for stocks.

Large amounts of fiscal stimulus in the U.S. and large amounts of fiscal and monetary stimulus in China drove solid credit growth in the world’s two largest countries. In the U.S., the labor market was very strong in terms of both low unemployment and wage gains. The services side of the U.S. economy was resilient to the Federal Reserve (the “Fed”) monetary tightening, whereas the manufacturing side of the economy decelerated notably during the period.

On the bond side, the total return of -13.01% for 2022 was the worst total return in BAB history, far worse than the previous record low of -2.92% in 1994. Significantly higher U.S. Treasury rates across the curve and wider credit spreads drove the negative returns in the year. Despite the Consumer Price Index ending 2021 at a decade high 6.8%, the Fed was slow to recognize the persistency of inflation in the U.S. Once the Fed acknowledged the increase in inflation was no longer transitory, the Fed accelerated the taper of its asset purchase program to end in March and began an aggressive Fed Funds hiking cycle. Specifically, the Fed initially raised the Fed Funds target rate by 25 basis points (bps) in March, but quickly accelerated rate hikes to include four successive 75 bps hikes. In 2022, the Fed Funds target rate increased by 425 bps from 0% - 0.25% at the start of the reporting period to 4.25% - 4.50% at the end of the reporting period. In addition, the Fed began reducing the size of its balance sheet by $47.5 billion a month in June and increased to the monthly reduction cap to $95 billion in September. The Fed was not the only central bank fighting inflation in 2022, and higher global rates also put upward pressure on U.S. rates. Against this backdrop of higher inflation and tighter monetary policy, U.S. Treasury rates were up materially across the curve. The yield-to-maturity on the Bloomberg U.S. Treasury Index5 began the year at 1.23% and ended the year at 4.18%. The U.S. Treasury curve “bear flattened” in 2022 with short-term rates up more than longer-term rates and ended the year “inverted” with short-term rates higher than longer-term rates. The increase in U.S. Treasury rates led to negative total returns for all major U.S. fixed income markets in 2022. The Bloomberg U.S. Treasury Index 2022 total return was -12.46%, compared to the Bloomberg High Yield Index total return of -11.18%, the Bloomberg Emerging Markets USD Aggregate Index6 total return of -15.26%, the Bloomberg U.S. Corporate Investment Grade Index7 of -15.76% and the Bloomberg MBS Index8 of -11.81%.

On the equity side, 2022 was the largest down year since 2008, with the Russell 1000® Index9 total return of -19.13%. Perhaps the most notable skew to U.S. equities in 2022 was the relative outperformance of value versus growth as interest rates surged higher. The total returns of the R1000V and Russell 1000 Growth indices for the year were -7.54% and -29.14%, respectively. In terms of sectors, the top performing equity sectors were Energy, Utilities and Health Care, while the worst performing sectors were Information Technology and Communications Services.

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DERIVATIVES10

During the reporting period, the Fund invested in S&P 500 futures contracts (SP5FUT) for volatility risk management purposes. The goal of all SP5FUT trades was to attempt to achieve a realized Fund annualized volatility of returns of 10%. The actual realized volatility of daily returns for the Fund for the reporting period was 10.35%, near the middle of the target range of 8% to 12%. To achieve this, the Fund was long SP5FUT for most of the reporting period, with an average, minimum and maximum weight of 7%, -16% and 44%, respectively. The decrease in the 2022 Fund return relative to the Blended Index due to the SP5FUT holdings was -8.21% (gross of fees). This was the largest factor affecting Fund performance relative to the Blended Index.

Also, during the reporting period, the Fund invested in S&P 500 equity put options (SP5EPO) for volatility risk management purposes. Fund management deemed the market environment for most of the reporting period to be favorable for being long (owning) SP5EPO securities, and these securities served as a partial hedge/offset against the SP5FUT holdings mentioned above. Fund management was active in trading the SP5EPO holdings, attempting to buy when the implied volatilities were relatively low and sell after the SP5EPO holdings went into the money. This strategy was generally successful during the reporting period. The increase in the 2022 Fund return relative to the Blended Index due to the SP5EPO holdings was 3.10% (gross of fees). This was the second largest factor affecting Fund performance relative to the Blended Index.

Also, during the reporting period, the Fund invested in U.S. Treasury Note Futures (USTFUT). The primary usage of the USTFUT holdings was to express Fund management’s duration11 view in relation to the Blended Index. In the reporting period, fund management expressed the view that interest rates would shift up, which turned out to be correct. The secondary usage category of the USTFUT holdings was to express yield curve twist bets relative to the Blended Index. Yield curve12 twists pertains to changes over time in the shape of the U.S. Treasury yield curve, either “flatter” or “steeper.” The USTFUT active strategies were generally successful during the reporting period. The increase in the 2022 Fund return relative to its benchmark due to the USTFUT duration views was 2.40% (gross of fees), a portion of which is discussed in the Sector and Security Selection—Bonds section below. This was the third largest factor affecting Fund performance relative to its benchmark. The impact to fund performance relative to the benchmark for the USTFUT yield curve views was not material in the reporting period.

SECTOR AND SECURITY SELECTION–bonds

For the 12 months ended December 31, 2022, the fixed income component of the Fund outperformed the return of its benchmark, the BAB. The fixed income portfolio’s duration during the year averaged 92% of its benchmark, resulting in the largest positive contribution to performance in a rising rate environment. Security selection in investment-grade13 corporates, agency mortgage-backed securities (MBS) and emerging market credits were negative contributors to performance. Sector allocation was a negative contributor to the fund’s fixed income performance in 2022 due primarily to the allocations to high yield,14 bank loans and trade finance loans which more than offset the positive contribution from tactical over-weights during the year to the agency MBS sector.

SECTOR SELECTION–equitieS

The equity component of the Fund contributed to the Fund’s current income objective and outperformed the R1000V during the reporting period. Fund management focused on realization of the Fund’s income and total return objectives by purchasing and holding benchmark securities with favorable forward return prospects based on our quantitative framework. Relative to the equity component of the blended index, the main positive contributor to Fund performance was stock selection. This stock selection was helped by holdings in the Health Care, Information Technology and Financials sectors and hindered by holdings in the Communications Services sector.

Please see the footnotes to the line graph under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the S&P 500 Index.

Please see the footnotes to the line graph under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the Blended Index.

Please see the footnotes to the line graphs below for definitions of, and further information about, the Morningstar peer group average.

Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices.

The Bloomberg U.S. Treasury Index measures U.S dollar-denominated, fixed-rate, nominal debt issued by the U.S. Treasury.*

The Bloomberg Emerging Markets USD Aggregate Index tracks total returns for external-currency-denominated debt instruments of the emerging markets.*

The Bloomberg U.S. Corporate Investment Grade Index measures the investment-grade, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by U.S. and non-U.S. industrial, utility and financial issuers.*

The Bloomberg MBS Index covers agency mortgage-backed pass-through securities (both fixed-rate and hybrid ARM) issued by Ginnie Mae, Fannie Mae and Freddie Mac.*

Annual Shareholder Report

10 The Fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities or other traditional instruments.

11 Duration is a measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.

12 The yield curve is a graph showing the comparative yields of securities in a particular class according to maturity. Securities on the long end of the yield curve have longer maturities.

13 Investment-grade securities are securities that are rated at least “BBB- (minus)” or unrated securities of a comparable quality. Noninvestment-grade securities are securities that are not rated at least “BBB- (minus)” or unrated securities of a comparable quality. Credit ratings are an indication of the risk that a security will default. They do not protect a security from credit risk. Lower-rated bonds typically offer higher yields to help compensate investors for the increased risk associated with them. Among these risks are lower credit-worthiness, greater price volatility, more risk to principal and income than with higher-rated securities and increased possibilities of default.

14 High-yield, lower-rated securities generally entail greater market, credit and liquidity risks than investment-grade securities and may include higher volatility and a higher risk of default.

The index is unmanaged, and it is not possible to invest directly in an index.

Annual Shareholder Report

FUND PERFORMANCE AND GROWTH OF A $10,000 INVESTMENT

The graph below illustrates the hypothetical investment of $10,0001 in the Federated Hermes Managed Volatility Fund II (the “Fund”) from December 31, 2012 to December 31, 2022, compared to the Standard & Poor’s 500 Index (S&P 500),2,3 the Russell 1000® Value Index (R1000V),3,4 both broad-based securities market indexes, a blend of indexes comprised of 40% R1000V/60% Bloomberg U.S. Aggregate Bond Index (BAB) (“Blended Index”),3,4 and the Morningstar US Insurance Tactical Allocation Funds Average (MUITA).5 The Average Annual Total Return table below shows returns averaged over the stated periods.

GROWTH of a $10,000 Investment

Growth of $10,000 as of December 31, 2022

The performance of the Primary Shares and Service Shares is substantially similar for the time period shown and, therefore, only one line appears in the graph.

Average Annual Total Returns for the Period Ended 12/31/2022

	1 Year	5 Years	10 Years
Primary Shares	-13.75%	2.56%	5.38%
Service Shares6	-14.00%	2.34%	5.26%
S&P 500	-18.11%	9.43%	12.56%
R1000V	-7.54%	6.67%	10.29%
Blended Index	-10.57%	3.05%	4.95%
MUITA	-13.81%	1.78%	3.45%

Annual Shareholder Report

The Fund’s performance assumes the reinvestment of all dividends and distributions. The S&P 500, R1000V and the Blended Index have been adjusted to reflect reinvestment of dividends on securities in the indexes.

The S&P 500, R1000V and the Blended Index are not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission (SEC) requires to be reflected in the Fund’s performance. The indexes are unmanaged and, unlike the Fund, are not affected by cash flows. It is not possible to invest directly in an index.

The R1000V measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000® Index companies with lower price-to-book ratios and lower expected growth values. The R1000V is constructed to provide a comprehensive and unbiased barometer for the large-cap value segment. The R1000V is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect value characteristics. The Bloomberg U.S. Aggregate Bond Index measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid ARM pass-throughs), asset-backed securities and commercial mortgage-backed securities.

The Fund’s Service (S) Class commenced operations on April 26, 2018. For the periods prior to the commencement of operations of the Fund’s S class, the performance information shown is for the Fund’s Primary (P) class. The performance of the P class has not been adjusted to reflect the expenses applicable to the S class. The total returns of the S class would have been substantially similar to the annual returns for the P class over the same period because the classes are invested in the same portfolio of securities and would differ only to the extent the classes do not have the same expenses. The expenses of the S class are higher than those of the P class; accordingly, the performance of the S class is anticipated to be lower than the performance of the P class.

Annual Shareholder Report

Portfolio of Investments Summary Tables (unaudited)

At December 31, 2022, the Fund’s portfolio composition1 was as follows:

Portfolio Composition	Percentage of Total Net Assets
Domestic Fixed-Income Securities	45.8%
Domestic Equity Securities	36.6%
International Equity Securities	2.4%
Other2	0.1%
Project and Trade Finance Core Fund	2.0%
Federated Hermes High Income Bond Fund II, Class P	1.6%
Emerging Markets Core Fund	1.4%
Bank Loan Core Fund3	0.0%
Federated Hermes Short-Intermediate Government Fund, Institutional Shares3	0.0%
Cash Equivalents4	9.9%
Derivative Contracts5	0.3%
Other Assets and Liabilities—Net6	(0.1)%
TOTAL	100%

At December 31, 2022, the Fund’s sector composition7 of the Fund’s equity holdings was as follows:

Sector Composition of Equity Holdings	Percentage of Equity Securities
Financials	20.0%
Health Care	17.5%
Industrials	10.7%
Energy	8.6%
Information Technology	8.1%
Consumer Staples	7.4%
Communication Services	7.3%
Consumer Discretionary	6.0%
Utilities	5.8%
Real Estate	4.3%
Materials	4.3%
TOTAL	100%

1	See the Fund’s Prospectus and Statement of Additional Information for a description of the types of securities in which the Fund invests. As of the date specified above, the Fund owned shares of one or more affiliated investment companies. For purposes of this table, affiliated investment companies (other than an affiliated money market mutual fund) in which the Fund invested greater than 10% of its net assets are not treated as a single portfolio security, but rather the Fund is treated as owning a pro rata portion of each security and each other asset and liability owned by the affiliated investment company. Accordingly, the percentages of total net assets shown in the table will differ from those presented on the Portfolio of Investments. Affiliated investment companies (other than an affiliated money market mutual fund) in which the Fund invested less than 10% of its net assets are listed individually in the table.
2	Other Security Type consists of purchased put options.
3	Represents less than 0.1%.
4	Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements.
5	Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund’s performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract’s significance to the portfolio. More complete information regarding the Fund’s direct investments in derivative contracts, including unrealized appreciation (depreciation), value and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report.
6	Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities.
7	Sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Co-Advisers assign a classification to securities not classified by the GICS and to securities for which the Co-Advisers do not have access to the classification made by the GICS.

Annual Shareholder Report

Portfolio of Investments

December 31, 2022

Shares, Principal Amount or Contracts			Value
		COMMON STOCKS—39.0%
		Communication Services—2.8%
5,438	1	Alphabet, Inc., Class A	$ 479,795
3,673	1	Alphabet, Inc., Class C	325,905
1,320	1	AMC Entertainment Holdings, Inc.	5,372
14,447		AT&T, Inc.	265,969
6		Cable One, Inc.	4,271
19,877		Comcast Corp., Class A	695,099
2,386		Electronic Arts, Inc.	291,522
1,169		Fox Corp	33,258
854		Interpublic Group of Cos., Inc.	28,447
332	1	Live Nation Entertainment, Inc.	23,154
28,432		Lumen Technologies, Inc.	148,415
456	1	Madison Square Garden Sports Corp.	83,598
6,888	1	Meta Platforms, Inc.	828,902
393		Nexstar Media Group, Inc., Class A	68,787
621	1	Pinterest, Inc.	15,078
3,124	1	Playtika Holding Corp.	26,585
2,489	1	T-Mobile USA, Inc.	348,460
6,546	1	TripAdvisor, Inc.	117,697
16,268		Verizon Communications, Inc.	640,959
6,046		Walt Disney Co.	525,277
		TOTAL	4,956,550
		Consumer Discretionary—2.3%
30		ADT, Inc.	272
2,565	1	Aptiv PLC	238,878
108	1	AutoZone, Inc.	266,347
366		Best Buy Co., Inc.	29,357
868	1	Bright Horizons Family Solutions, Inc.	54,771
275		Domino’s Pizza, Inc.	95,260
44	1	DoorDash, Inc.	2,148
6,824		eBay, Inc.	282,991
10,133		Ford Motor Co.	117,847
41		General Motors Co.	1,379
1,334		Genuine Parts Co.	231,462
2,199	1	Grand Canyon Education, Inc.	232,346
559		Home Depot, Inc.	176,566
316		Lear Corp.	39,190
1,155		LKQ Corp.	61,689
548		Lowe’s Cos., Inc.	109,183
3,764		Macy’s, Inc.	77,727
2,675		McDonald’s Corp.	704,943
255	1	O’Reilly Automotive, Inc.	215,228
1,788		PVH Corp.	126,215
7,685	1	Rivian Automotive, Inc.	141,634
90	1	Royal Caribbean Cruises, Ltd.	4,449
170		Starbucks Corp.	16,864
7,107		Tapestry, Inc.	270,635
668		Target Corp.	99,559
452		Toll Brothers, Inc.	22,564
7,945	1	Under Armour, Inc., Class A	80,721
1,734	1	Under Armour, Inc., Class C	15,467

Annual Shareholder Report

Shares, Principal Amount or Contracts			Value
		COMMON STOCKS—continued
		Consumer Discretionary—continued
95		Vail Resorts, Inc.	$ 22,643
660		Whirlpool Corp.	93,364
1,518		Wyndham Hotels & Resorts, Inc.	108,249
1,018		Yum! Brands, Inc.	130,385
		TOTAL	4,070,333
		Consumer Staples—2.9%
13		Albertsons Cos., Inc.	269
13,883		Altria Group, Inc.	634,592
3,242		Archer-Daniels-Midland Co.	301,020
864		Casey’s General Stores, Inc.	193,838
1,520		Hershey Foods Corp.	351,986
9		Kimberly-Clark Corp.	1,222
260		Kraft Heinz Co./The	10,584
9,602		Kroger Co.	428,057
3,661		Mondelez International, Inc.	244,006
2,059		PepsiCo, Inc.	371,979
4,943		Philip Morris International, Inc.	500,281
6,819		Procter & Gamble Co.	1,033,488
8,644		The Coca-Cola Co.	549,845
75		Tyson Foods, Inc., Class A	4,669
2,992		WalMart, Inc.	424,236
		TOTAL	5,050,072
		Energy—3.4%
5,252		APA Corp.	245,163
2,501		Cheniere Energy, Inc.	375,050
5,959		Chevron Corp.	1,069,581
7,350		ConocoPhillips	867,300
3,503		EQT Corp.	118,507
16,031		Exxon Mobil Corp.	1,768,219
80,769	1	Ithaca Energy PLC	178,594
5,427		Kinder Morgan, Inc.	98,120
14,083		Marathon Oil Corp.	381,227
2,121		Marathon Petroleum Corp.	246,863
1,116		Occidental Petroleum Corp.	70,297
1,952		ONEOK, Inc.	128,246
3,895		Schlumberger Ltd.	208,227
965		Valero Energy Corp.	122,420
		TOTAL	5,877,814
		Financials—7.8%
2,335		Affiliated Managers Group	369,934
352		Allstate Corp.	47,731
9,742		Ally Financial, Inc.	238,192
687		American Express Co.	101,504
1,023		American Financial Group, Inc.	140,438
8,248		American International Group, Inc.	521,604
839		Ameriprise Financial, Inc.	261,239
5,790		Annaly Capital Management, Inc.	122,053
5,130		Axis Capital Holdings Ltd.	277,892
21,409		Bank of America Corp.	709,066
7,861		Bank of New York Mellon Corp.	357,833
5,678	1	Berkshire Hathaway, Inc., Class B	1,753,934
267		BlackRock, Inc.	189,204
827	1	Brighthouse Financial, Inc.	42,400

Annual Shareholder Report

Shares, Principal Amount or Contracts			Value
		COMMON STOCKS—continued
		Financials—continued
516		Capital One Financial Corp.	$ 47,967
1,358		Charles Schwab Corp.	113,067
3,067		Chubb Ltd.	676,580
12,732		Citigroup, Inc.	575,868
1,269		CME Group, Inc.	213,395
1,984		Discover Financial Services	194,095
618		East West Bancorp, Inc.	40,726
12,989		Equitable Holdings, Inc.	372,784
1,268		Goldman Sachs Group, Inc.	435,406
3,516		Hartford Financial Services Group, Inc.	266,618
10,311		JPMorgan Chase & Co.	1,382,705
9,050		KeyCorp	157,651
3,434		Lincoln National Corp.	105,493
1,180		MetLife, Inc.	85,397
7,402		MGIC Investment Corp.	96,226
2,234		Morgan Stanley	189,935
4,794		OneMain Holdings, Inc.	159,688
5,627		Popular, Inc.	373,183
18,310		Regions Financial Corp.	394,764
240		S&P Global, Inc.	80,386
1,232		Signature Bank	141,951
17,712		SLM Corp.	294,019
2,184		State Street Corp.	169,413
5,942		Synchrony Financial	195,254
1,951		The Travelers Cos., Inc.	365,793
7,077		Truist Financial Corp.	304,523
1,345		U.S. Bancorp	58,656
16,256		Virtu Financial, Inc.	331,785
7,080		Wells Fargo & Co.	292,333
6,086		Western Alliance Bancorp	362,482
404		Zions Bancorporation, N.A.	19,861
		TOTAL	13,631,028
		Health Care—6.8%
4,644		Abbott Laboratories	509,865
428		Agilent Technologies, Inc.	64,050
641	1	Biogen, Inc.	177,506
439	1	Bio-Rad Laboratories, Inc., Class A	184,595
11,982		Bristol-Myers Squibb Co.	862,105
4,024		Cardinal Health, Inc.	309,325
1,092	1	Centene Corp.	89,555
112		CIGNA Corp.	37,110
3,753		CVS Health Corp.	349,742
2,089		Danaher Corp.	554,462
289		Dentsply Sirona, Inc.	9,202
1,283		Elevance Health, Inc.	658,141
423		Eli Lilly & Co.	154,750
8,532		Gilead Sciences, Inc.	732,472
791		HCA Healthcare, Inc.	189,808
5,426	1	Hologic, Inc.	405,919
450		Humana, Inc.	230,486
796	1	Illumina, Inc.	160,951
9,720		Johnson & Johnson	1,717,038
636		Laboratory Corp. of America Holdings	149,765

Annual Shareholder Report

Shares, Principal Amount or Contracts			Value
		COMMON STOCKS—continued
		Health Care—continued
1,172		McKesson Corp.	$ 439,641
2,017		Medtronic PLC	156,761
8,496		Merck & Co., Inc.	942,631
232	1	Moderna, Inc.	41,672
59	1	Molina Healthcare, Inc.	19,483
16,484		Pfizer, Inc.	844,640
9,478		Premier, Inc.	331,540
255		Quest Diagnostics, Inc.	39,892
216	1	Regeneron Pharmaceuticals, Inc.	155,842
8,870	1	Teladoc Health, Inc.	209,776
896		Thermo Fisher Scientific, Inc.	493,418
26,600	1	TMS Co., Ltd.	125,663
716		UnitedHealth Group, Inc.	379,609
641	1	Vertex Pharmaceuticals, Inc.	185,108
		TOTAL	11,912,523
		Industrials—4.2%
2,530		3M Co.	303,398
2,707		AECOM	229,906
2,784		Allison Transmission Holdings, Inc.	115,814
167	1	Avis Budget Group, Inc.	27,376
1,599	1	Boeing Co.	304,593
5,536	1	Builders Firstsource, Inc.	359,176
529	1	CACI International, Inc., Class A	159,012
319		Caterpillar, Inc.	76,420
3,374		CSX Corp.	104,527
1,245		Eaton Corp. PLC	195,403
424		Emerson Electric Co.	40,729
439		Expeditors International Washington, Inc.	45,621
2,278		General Dynamics Corp.	565,195
2,271		General Electric Co.	190,287
3,359		Honeywell International, Inc.	719,834
1,589		Ingersoll-Rand, Inc.	83,025
6,439		Johnson Controls International PLC	412,096
2,097		L3Harris Technologies, Inc.	436,616
104		Leidos Holdings, Inc.	10,940
1,153		Manpower, Inc.	95,941
47		Masco Corp.	2,193
2,161		Norfolk Southern Corp.	532,514
3,468		OshKosh Truck Corp.	305,843
1,689		Otis Worldwide Corp.	132,266
236		Owens Corning, Inc.	20,131
692		Parker-Hannifin Corp.	201,372
4,296		Raytheon Technologies Corp.	433,552
266		Republic Services, Inc.	34,311
13,800	1	Skymark Airlines, Inc.	151,207
1,013		Textron, Inc.	71,720
944		Trane Technologies PLC	158,677
11,439	1	Uber Technologies, Inc.	282,886
566	1	United Rentals, Inc.	201,168
1,865		Waste Management, Inc.	292,581
		TOTAL	7,296,330
		Information Technology—3.2%
1,486	1	Advanced Micro Devices, Inc.	96,248

Annual Shareholder Report

Shares, Principal Amount or Contracts			Value
		COMMON STOCKS—continued
		Information Technology—continued
263		Automatic Data Processing, Inc.	$ 62,820
15,724		Cisco Systems, Inc.	749,091
2,597		Cognizant Technology Solutions Corp.	148,522
2,353	1	Coupa Software, Inc.	186,287
3,056		Dell Technologies, Inc.	122,912
6,234	1	Dropbox, Inc.	139,517
3,669	1	DXC Technology Co.	97,229
3,132		Fidelity National Information Services, Inc.	212,506
897	1	Fiserv, Inc.	90,660
157	1	GoDaddy, Inc.	11,747
26,297		Hewlett Packard Enterprise Co.	419,700
1,546		HP, Inc.	41,541
16,634		Intel Corp.	439,637
4,106		Juniper Networks, Inc.	131,228
1,784	1	Kyndryl Holdings, Inc.	19,838
826	1	Manhattan Associates, Inc.	100,276
6,758		Marvell Technology, Inc.	250,316
978		Microchip Technology, Inc.	68,705
9,131		Micron Technology, Inc.	456,367
8,275	1	Nutanix, Inc.	215,564
312	1	Okta, Inc.	21,319
1,608	1	ON Semiconductor Corp.	100,291
754		Oracle Corp.	61,632
2,534	1	PayPal Holdings, Inc.	180,472
271		Roper Technologies, Inc.	117,096
2,505	1	Salesforce, Inc.	332,138
682	1	Snowflake, Inc.	97,894
3,373	1	Teradata Corp.	113,535
1,092	1	Unity Software, Inc.	31,220
482	1	Verisign, Inc.	99,022
5,310	1	Western Digital Corp.	167,531
830	1	WEX, Inc.	135,830
187	1	Wolfspeed, Inc.	12,911
		TOTAL	5,531,602
		Materials—1.7%
129		Air Products & Chemicals, Inc.	39,765
578		Alcoa Corp.	26,282
1,079		Avery Dennison Corp.	195,299
1,326	1	Axalta Coating Systems Ltd.	33,773
548	1	Cleveland-Cliffs, Inc.	8,828
1,109		Corteva, Inc.	65,187
5,374		Dow, Inc.	270,796
1,663		Ecolab, Inc.	242,066
6,327		Freeport-McMoRan, Inc.	240,426
1,497		Huntsman Corp.	41,138
2,484		Linde PLC	810,231
1,791		LyondellBasell Industries N.V.	148,707
3,113		Newmont Corp.	146,934
1,027		Nucor Corp.	135,369
2,687		Olin Corp.	142,250
670		Steel Dynamics, Inc.	65,459
1,425		United States Steel Corp.	35,696

Annual Shareholder Report

Shares, Principal Amount or Contracts			Value
		COMMON STOCKS—continued
		Materials—continued
7,612		WestRock Co.	$ 267,638
		TOTAL	2,915,844
		Real Estate—1.7%
293		American Tower Corp.	62,075
8,635		Apartment Income REIT Corp.	296,267
4,644	1	CBRE Group, Inc.	357,402
1,776		Extra Space Storage, Inc.	261,392
1,277		First Industrial Realty Trust	61,628
6,139		Host Hotels & Resorts, Inc.	98,531
896		Jones Lang LaSalle, Inc.	142,795
6,244		ProLogis, Inc.	703,886
1,254		Public Storage	351,358
262		SBA Communications Corp.	73,441
4,246		UDR, Inc.	164,448
12,373		Weyerhaeuser Co.	383,563
		TOTAL	2,956,786
		Utilities—2.2%
13,826		AES Corp.	397,636
5		Brookfield Renewable Corp.	138
856		Consolidated Edison Co.	81,585
2,801		DTE Energy Co.	329,201
5,909		Duke Energy Corp.	608,568
161		FirstEnergy Corp.	6,752
11,021		NextEra Energy, Inc.	921,355
13,980		PPL Corp.	408,496
3,409		Public Service Enterprises Group, Inc.	208,869
5,431		Southern Co.	387,828
5,448		Vistra Corp.	126,394
6,807		Xcel Energy, Inc.	477,239
		TOTAL	3,954,061
		TOTAL COMMON STOCKS (IDENTIFIED COST $56,321,859)	68,152,943
		U.S. TREASURIES—22.7%
		Treasury Inflation-Indexed Note—0.0%
$ 12,576		U.S. Treasury Inflation-Protected Notes, 1.000%, 2/15/2046	10,646
		U.S. Treasury Bond—3.3%
150,000		United States Treasury Bond, 1.375%, 11/15/2040	97,565
760,000		United States Treasury Bond, 1.625%, 11/15/2050	454,682
860,000		United States Treasury Bond, 2.375%, 2/15/2042	656,921
20,000		United States Treasury Bond, 2.750%, 11/15/2047	15,685
3,450,000		United States Treasury Bond, 2.875%, 5/15/2052	2,776,710
1,000		United States Treasury Bond, 3.000%, 11/15/2044	828
900,000		United States Treasury Bond, 3.000%, 2/15/2049	744,895
1,100,000		United States Treasury Bond, 3.125%, 5/15/2048	928,349
		TOTAL	5,675,635
		U.S. Treasury Note—19.4%
500,000		United States Treasury Note, 0.125%, 4/30/2023	493,012
1,900,000		United States Treasury Note, 0.125%, 6/30/2023	1,858,304
2,000,000		United States Treasury Note, 0.250%, 9/30/2023	1,934,633
5,200,000		United States Treasury Note, 0.500%, 3/15/2023	5,161,139
330,000		United States Treasury Note, 0.625%, 7/31/2026	291,479
900,000		United States Treasury Note, 0.625%, 8/15/2030	708,222
400,000		United States Treasury Note, 0.875%, 11/15/2030	319,704

Annual Shareholder Report

Shares, Principal Amount or Contracts		Value
	U.S. TREASURIES—continued
	U.S. Treasury Note—continued
$ 675,000	United States Treasury Note, 1.250%, 12/31/2026	$ 604,373
300,000	United States Treasury Note, 1.375%, 11/15/2031	244,271
400,000	United States Treasury Note, 1.500%, 1/31/2027	361,160
400,000	United States Treasury Note, 1.625%, 5/15/2031	336,615
900,000	United States Treasury Note, 1.750%, 12/31/2024	854,267
775,000	United States Treasury Note, 1.750%, 3/15/2025	732,295
900,000	United States Treasury Note, 2.125%, 11/30/2024	861,471
1,150,000	United States Treasury Note, 2.250%, 3/31/2024	1,115,654
50,000	United States Treasury Note, 2.250%, 11/15/2027	46,070
3,500,000	United States Treasury Note, 2.500%, 4/30/2024	3,400,075
500,000	United States Treasury Note, 2.500%, 5/31/2024	484,980
3,800,000	United States Treasury Note, 2.625%, 5/31/2027	3,581,668
500,000	United States Treasury Note, 2.750%, 4/30/2027	473,928
5,700,000	United States Treasury Note, 2.750%, 7/31/2027	5,392,970
40,000	United States Treasury Note, 2.875%, 5/31/2025	38,669
300,000	United States Treasury Note, 2.875%, 5/15/2028	283,174
780,000	United States Treasury Note, 3.000%, 6/30/2024	761,185
110,000	United States Treasury Note, 3.125%, 8/31/2027	105,819
3,500,000	United States Treasury Note, 3.875%, 11/30/2027	3,480,734
	TOTAL	33,925,871
	TOTAL U.S. TREASURIES (IDENTIFIED COST $42,507,621)	39,612,152
	CORPORATE BONDS—10.3%
	Basic Industry - Chemicals—0.1%
50,000	Albemarle Corp., Sr. Unsecd. Note, 5.450%, 12/1/2044	45,431
75,000	RPM International, Inc., Sr. Unsecd. Note, 4.550%, 3/1/2029	69,592
	TOTAL	115,023
	Basic Industry - Metals & Mining—0.2%
50,000	Glencore Funding LLC, Sr. Unsecd. Note, 144A, 1.625%, 4/27/2026	44,113
20,000	Glencore Funding LLC, Sr. Unsecd. Note, 144A, 3.375%, 9/23/2051	13,057
225,000	Reliance Steel & Aluminum Co., Sr. Unsecd. Note, 4.500%, 4/15/2023	224,962
	TOTAL	282,132
	Capital Goods - Aerospace & Defense—0.2%
100,000	Boeing Co., Sr. Unsecd. Note, 2.700%, 2/1/2027	90,409
20,000	Boeing Co., Sr. Unsecd. Note, 3.950%, 8/1/2059	13,518
75,000	Boeing Co., Sr. Unsecd. Note, 4.875%, 5/1/2025	74,493
60,000	Huntington Ingalls Industries, Inc., Sr. Unsecd. Note, 3.483%, 12/1/2027	54,556
25,000	Leidos, Inc., Sr. Unsecd. Note, Series WI, 3.625%, 5/15/2025	24,033
100,000	Leidos, Inc., Sr. Unsecd. Note, Series WI, 4.375%, 5/15/2030	90,407
100,000	Textron, Inc., Sr. Unsecd. Note, 3.650%, 3/15/2027	93,394
	TOTAL	440,810
	Capital Goods - Building Materials—0.1%
10,000	Allegion PLC, Sr. Unsecd. Note, 3.500%, 10/1/2029	8,638
20,000	Allegion US Holdings Co., Inc., Sr. Unsecd. Note, 3.200%, 10/1/2024	19,246
90,000	Allegion US Holdings Co., Inc., Sr. Unsecd. Note, 3.550%, 10/1/2027	81,376
	TOTAL	109,260
	Capital Goods - Construction Machinery—0.1%
100,000	CNH Industrial NV, Sr. Unsecd. Note, Series MTN, 3.850%, 11/15/2027	93,835
150,000	John Deere Capital Corp., Sr. Unsecd. Note, Series MTN, 3.450%, 3/7/2029	139,469
	TOTAL	233,304
	Capital Goods - Diversified Manufacturing—0.1%
35,000	Honeywell International, Inc., Sr. Unsecd. Note, 1.350%, 6/1/2025	32,387
35,000	Honeywell International, Inc., Sr. Unsecd. Note, 2.800%, 6/1/2050	25,052

Annual Shareholder Report

Shares, Principal Amount or Contracts		Value
	CORPORATE BONDS—continued
	Capital Goods - Diversified Manufacturing—continued
$ 55,000	Valmont Industries, Inc., Sr. Unsecd. Note, 5.000%, 10/1/2044	$ 47,522
60,000	Vontier Corp., Sr. Unsecd. Note, Series WI, 1.800%, 4/1/2026	50,827
45,000	Xylem, Inc., Sr. Unsecd. Note, 2.250%, 1/30/2031	36,613
	TOTAL	192,401
	Capital Goods - Packaging—0.1%
125,000	Packaging Corp., of America, Sr. Unsecd. Note, 3.650%, 9/15/2024	121,864
	Communications - Cable & Satellite—0.2%
50,000	CCO Safari II LLC, 6.484%, 10/23/2045	45,301
25,000	Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., Sec. Fac. Bond, 3.850%, 4/1/2061	14,547
225,000	Comcast Corp., Sr. Unsecd. Note, 3.300%, 2/1/2027	212,362
100,000	Comcast Corp., Sr. Unsecd. Note, 3.950%, 10/15/2025	98,037
75,000	Time Warner Cable, Inc., Company Guarantee, 5.500%, 9/1/2041	62,522
	TOTAL	432,769
	Communications - Media & Entertainment—0.4%
115,000	Alphabet, Inc., Sr. Unsecd. Note, 2.050%, 8/15/2050	67,730
200,000	British Sky Broadcasting Group PLC, Sr. Unsecd. Note, 144A, 3.750%, 9/16/2024	195,357
75,000	Meta Platforms, Inc., Sr. Unsecd. Note, 3.500%, 8/15/2027	70,027
75,000	Meta Platforms, Inc., Sr. Unsecd. Note, 3.850%, 8/15/2032	66,210
75,000	Netflix, Inc., Sr. Unsecd. Note, 4.875%, 4/15/2028	72,588
50,000	Paramount Global, Sr. Unsecd. Note, 4.200%, 6/1/2029	44,619
40,000	S&P Global, Inc., Sr. Unsecd. Note, 144A, 2.900%, 3/1/2032	34,230
40,000	Walt Disney Co., Sr. Unsecd. Note, 3.600%, 1/13/2051	30,660
45,000	Walt Disney Co., Sr. Unsecd. Note, 3.800%, 5/13/2060	34,527
	TOTAL	615,948
	Communications - Telecom Wireless—0.2%
50,000	American Tower Corp., Sr. Unsecd. Note, 2.700%, 4/15/2031	40,820
50,000	American Tower Corp., Sr. Unsecd. Note, 3.100%, 6/15/2050	31,668
75,000	American Tower Corp., Sr. Unsecd. Note, 5.000%, 2/15/2024	74,757
75,000	Crown Castle International Corp., Sr. Unsecd. Note, 3.250%, 1/15/2051	49,083
90,000	T-Mobile USA, Inc., Series WI, 3.000%, 2/15/2041	63,847
75,000	T-Mobile USA, Inc., Sr. Unsecd. Note, 5.200%, 1/15/2033	74,564
50,000	Vodafone Group PLC, Sr. Unsecd. Note, 4.125%, 5/30/2025	49,250
60,000	Vodafone Group PLC, Sr. Unsecd. Note, 5.250%, 5/30/2048	53,135
	TOTAL	437,124
	Communications - Telecom Wirelines—0.2%
100,000	AT&T, Inc., Sr. Unsecd. Note, 1.700%, 3/25/2026	90,235
153,000	AT&T, Inc., Sr. Unsecd. Note, 3.800%, 12/1/2057	106,269
45,000	Rogers Communications, Inc., Sr. Unsecd. Note, 144A, 4.500%, 3/15/2042	36,862
55,000	Verizon Communications, Inc., Sr. Unsecd. Note, 3.400%, 3/22/2041	41,572
100,000	Verizon Communications, Inc., Sr. Unsecd. Note, 4.125%, 8/15/2046	79,908
	TOTAL	354,846
	Consumer Cyclical - Automotive—0.2%
150,000	Daimler Trucks Financial NA, Sr. Unsecd. Note, 144A, 2.375%, 12/14/2028	126,331
100,000	General Motors Co., Sr. Unsecd. Note, 6.125%, 10/1/2025	101,874
75,000	General Motors Financial Co., Inc., Sr. Unsecd. Note, 2.400%, 4/10/2028	63,207
150,000	Mercedes-Benz Finance NA LLC, Sr. Unsecd. Note, 144A, 3.350%, 2/22/2023	149,452
	TOTAL	440,864
	Consumer Cyclical - Leisure—0.1%
75,000	Warnermedia Holdings, Inc., Sr. Unsecd. Note, 144A, 4.279%, 3/15/2032	61,970
75,000	Warnermedia Holdings, Inc., Sr. Unsecd. Note, 144A, 5.050%, 3/15/2042	57,647
	TOTAL	119,617
	Consumer Cyclical - Retailers—0.2%
45,000	Advance Auto Parts, Inc., Sr. Unsecd. Note, 1.750%, 10/1/2027	37,846

Annual Shareholder Report

Shares, Principal Amount or Contracts		Value
	CORPORATE BONDS—continued
	Consumer Cyclical - Retailers—continued
$ 75,000	Advance Auto Parts, Inc., Sr. Unsecd. Note, Series WI, 3.900%, 4/15/2030	$ 65,904
50,000	AutoNation, Inc., Sr. Unsecd. Note, 3.850%, 3/1/2032	40,032
15,000	AutoZone, Inc., Sr. Unsecd. Note, 3.625%, 4/15/2025	14,527
75,000	CVS Health Corp., Sr. Unsecd. Note, 4.250%, 4/1/2050	60,059
30,000	Home Depot, Inc., Sr. Unsecd. Note, 2.950%, 6/15/2029	27,205
150,000	Home Depot, Inc., Sr. Unsecd. Note, 3.300%, 4/15/2040	120,051
	TOTAL	365,624
	Consumer Cyclical - Services—0.1%
65,000	Amazon.com, Inc., Sr. Unsecd. Note, 2.500%, 6/3/2050	41,261
125,000	Amazon.com, Inc., Sr. Unsecd. Note, 3.875%, 8/22/2037	111,240
	TOTAL	152,501
	Consumer Non-Cyclical - Food/Beverage—0.3%
30,000	Anheuser-Busch InBev Finance, Inc., Sr. Unsecd. Note, 4.900%, 2/1/2046	27,424
75,000	Constellation Brands, Inc., Sr. Unsecd. Note, 3.750%, 5/1/2050	56,485
25,000	Flowers Foods, Inc., Sr. Unsecd. Note, 2.400%, 3/15/2031	20,188
100,000	Flowers Foods, Inc., Sr. Unsecd. Note, 3.500%, 10/1/2026	93,740
145,000	International Flavors & Fragrances, Inc., Sr. Unsecd. Note, 144A, 2.300%, 11/1/2030	115,372
70,000	Kraft Heinz Foods Co., Sr. Unsecd. Note, 4.375%, 6/1/2046	57,204
70,000	PepsiCo, Inc., Sr. Unsecd. Note, 2.750%, 10/21/2051	48,765
75,000	Sysco Corp., Sr. Unsecd. Note, 4.450%, 3/15/2048	61,908
	TOTAL	481,086
	Consumer Non-Cyclical - Health Care—0.1%
27,000	Becton Dickinson & Co., Sr. Unsecd. Note, 3.794%, 5/20/2050	20,852
17,000	Becton Dickinson & Co., Sr. Unsecd. Note, 4.685%, 12/15/2044	15,277
65,000	Danaher Corp., Sr. Unsecd. Note, 2.600%, 10/1/2050	41,751
30,000	DH Europe Finance II S.a.r.l., Sr. Unsecd. Note, 2.600%, 11/15/2029	26,348
55,000	HCA, Inc., Sec. Fac. Bond, 3.500%, 7/15/2051	35,509
10,000	Stryker Corp., Sr. Unsecd. Note, 3.500%, 3/15/2026	9,610
100,000	Thermo Fisher Scientific, Inc., Sr. Unsecd. Note, 1.215%, 10/18/2024	93,919
	TOTAL	243,266
	Consumer Non-Cyclical - Pharmaceuticals—0.3%
83,000	Abbott Laboratories, Sr. Unsecd. Note, 3.750%, 11/30/2026	80,924
75,000	AstraZeneca PLC, Sr. Unsecd. Note, 1.375%, 8/6/2030	59,426
200,000	Bayer US Finance LLC, Sr. Unsecd. Note, 144A, 3.375%, 10/8/2024	193,398
70,000	Biogen, Inc., Sr. Unsecd. Note, 2.250%, 5/1/2030	57,184
75,000	Biogen, Inc., Sr. Unsecd. Note, 3.150%, 5/1/2050	49,074
40,000	Bristol-Myers Squibb Co., Sr. Unsecd. Note, Series WI, 4.250%, 10/26/2049	34,589
91,000	Regeneron Pharmaceuticals, Inc., Sr. Unsecd. Note, 2.800%, 9/15/2050	56,828
100,000	Zoetis, Inc., Sr. Unsecd. Note, 3.000%, 5/15/2050	68,033
	TOTAL	599,456
	Consumer Non-Cyclical - Tobacco—0.1%
75,000	Altria Group, Inc., Sr. Unsecd. Note, 3.700%, 2/4/2051	47,255
50,000	BAT Capital Corp., Sr. Unsecd. Note, Series WI, 4.540%, 8/15/2047	35,517
115,000	Philip Morris International, Inc., Sr. Unsecd. Note, 2.100%, 5/1/2030	93,257
25,000	Philip Morris International, Inc., Sr. Unsecd. Note, 5.750%, 11/17/2032	25,564
55,000	Reynolds American, Inc., Sr. Unsecd. Note, 7.000%, 8/4/2041	54,616
	TOTAL	256,209
	Energy - Independent—0.1%
40,000	Diamondback Energy, Inc., Sr. Unsecd. Note, 6.250%, 3/15/2033	40,723
70,000	Hess Corp., Sr. Unsecd. Note, 5.600%, 2/15/2041	66,476
75,000	Marathon Oil Corp., Sr. Unsecd. Note, 4.400%, 7/15/2027	71,744
	TOTAL	178,943

Annual Shareholder Report

Shares, Principal Amount or Contracts		Value
	CORPORATE BONDS—continued
	Energy - Integrated—0.2%
$ 35,000	BP Capital Markets America, Inc., Sr. Unsecd. Note, 3.119%, 5/4/2026	$ 33,219
80,000	Chevron Corp., Sr. Unsecd. Note, 3.078%, 5/11/2050	57,810
185,000	ConocoPhillips Co., Sr. Unsecd. Note, 2.400%, 3/7/2025	175,983
	TOTAL	267,012
	Energy - Midstream—0.4%
25,000	Boardwalk Pipeline Partners LP, Sr. Unsecd. Note, 3.600%, 9/1/2032	20,756
20,000	Boardwalk Pipeline Partners LP, Sr. Unsecd. Note, 4.800%, 5/3/2029	18,867
35,000	Eastern Gas Transmission & Storage, Inc., Sr. Unsecd. Note, 3.000%, 11/15/2029	30,291
115,000	Eastern Gas Transmission & Storage, Inc., Sr. Unsecd. Note, 3.900%, 11/15/2049	81,756
50,000	Energy Transfer LP, Sr. Unsecd. Note, 5.750%, 2/15/2033	49,014
15,000	Energy Transfer Partners LP, Sr. Unsecd. Note, 4.900%, 2/1/2024	14,921
85,000	Energy Transfer LP, Sr. Unsecd. Note, Series 10Y, 4.950%, 6/15/2028	82,355
50,000	Kinder Morgan Energy Partners LP, Sr. Unsecd. Note, 6.375%, 3/1/2041	49,677
100,000	MPLX LP, Sr. Unsecd. Note, 4.950%, 9/1/2032	94,063
65,000	ONEOK, Inc., Sr. Unsecd. Note, 4.950%, 7/13/2047	52,650
20,000	ONEOK, Inc., Sr. Unsecd. Note, 6.100%, 11/15/2032	20,061
80,000	Targa Resources, Inc., Sr. Unsecd. Note, 4.200%, 2/1/2033	69,057
90,000	Williams Partners LP, Sr. Unsecd. Note, 4.900%, 1/15/2045	76,964
	TOTAL	660,432
	Energy - Oil Field Services—0.1%
75,000	Halliburton Co., Sr. Unsecd. Note, 5.000%, 11/15/2045	66,768
100,000	Schlumberger Investment SA, Sr. Unsecd. Note, 2.650%, 6/26/2030	86,018
	TOTAL	152,786
	Energy - Refining—0.1%
50,000	Marathon Petroleum Corp., Sr. Unsecd. Note, 4.750%, 9/15/2044	41,970
50,000	Phillips 66, Sr. Unsecd. Note, 4.875%, 11/15/2044	45,931
50,000	Valero Energy Corp., Sr. Unsecd. Note, 2.800%, 12/1/2031	40,882
	TOTAL	128,783
	Financial Institution - Banking—2.2%
115,000	Associated Banc-Corp., Sub. Note, 4.250%, 1/15/2025	111,934
235,000	Bank of America Corp., Sr. Unsecd. Note, 2.299%, 7/21/2032	181,540
325,000	Bank of America Corp., Sr. Unsecd. Note, 3.419%, 12/20/2028	294,846
75,000	Bank of America Corp., Sub. Note, Series MTN, 4.000%, 1/22/2025	73,466
200,000	Bank of New York Mellon Corp., Sr. Unsecd. Note, Series MTN, 2.200%, 8/16/2023	196,957
50,000	Bank of New York Mellon Corp., Sr. Unsecd. Note, Series MTN, 3.992%, 6/13/2028	47,911
75,000	Capital One Financial Corp., Sr. Unsecd. Note, 3.273%, 3/1/2030	64,268
70,000	Citigroup, Inc., Sr. Unsecd. Note, 3.057%, 1/25/2033	56,671
180,000	Citigroup, Inc., Sr. Unsecd. Note, 3.352%, 4/24/2025	174,634
170,000	Citigroup, Inc., Sr. Unsecd. Note, 3.400%, 5/1/2026	161,336
90,000	Citigroup, Inc., Sr. Unsecd. Note, 3.668%, 7/24/2028	82,797
100,000	Fifth Third Bancorp, Sr. Unsecd. Note, 6.361%, 10/27/2028	103,066
40,000	FNB Corp. (PA), Sr. Unsecd. Note, 2.200%, 2/24/2023	39,802
50,000	FNB Corp. (PA), Sr. Unsecd. Note, 5.150%, 8/25/2025	49,455
100,000	Goldman Sachs Group, Inc., Sr. Unsecd. Note, 1.948%, 10/21/2027	87,569
275,000	Goldman Sachs Group, Inc., Sr. Unsecd. Note, 1.992%, 1/27/2032	210,128
275,000	HSBC Holdings PLC, Sr. Unsecd. Note, 3.900%, 5/25/2026	262,256
100,000	Huntington Bancshares, Inc., Sr. Unsecd. Note, 4.443%, 8/4/2028	95,414
120,000	JPMorgan Chase & Co., Sr. Unsecd. Note, 1.953%, 2/4/2032	92,068
100,000	JPMorgan Chase & Co., Sr. Unsecd. Note, 2.963%, 1/25/2033	81,651
325,000	JPMorgan Chase & Co., Sr. Unsecd. Note, 3.509%, 1/23/2029	295,505
275,000	Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 3.772%, 1/24/2029	252,306
40,000	Morgan Stanley, Sr. Unsecd. Note, Series MTN, 1.794%, 2/13/2032	30,154
55,000	Morgan Stanley, Sr. Unsecd. Note, Series MTN, 1.928%, 4/28/2032	41,627

Annual Shareholder Report

Shares, Principal Amount or Contracts		Value
	CORPORATE BONDS—continued
	Financial Institution - Banking—continued
$ 80,000	Northern Trust Corp., Sub. Note, 6.125%, 11/2/2032	$ 84,611
100,000	PNC Financial Services Group, Sub., 4.626%, 6/6/2033	92,670
75,000	Truist Financial Corp., Sr. Unsecd. Note, Series MTN, 3.750%, 12/6/2023	74,230
100,000	US Bancorp, 4.967%, 7/22/2033	95,174
450,000	Wells Fargo & Co., Sr. Unsecd. Note, Series MTN, 3.584%, 5/22/2028	418,517
	TOTAL	3,852,563
	Financial Institution - Broker/Asset Mgr/Exchange—0.1%
65,000	Jefferies Group LLC, Sr. Unsecd. Note, 2.750%, 10/15/2032	49,048
75,000	Raymond James Financial, Inc., Sr. Unsecd. Note, 4.650%, 4/1/2030	72,395
	TOTAL	121,443
	Financial Institution - Finance Companies—0.0%
60,000	Air Lease Corp., Sr. Unsecd. Note, 5.850%, 12/15/2027	60,038
	Financial Institution - Insurance - Health—0.1%
130,000	UnitedHealth Group, Inc., Sr. Unsecd. Note, 3.050%, 5/15/2041	98,221
	Financial Institution - Insurance - Life—0.2%
100,000	Lincoln National Corp., Sr. Unsecd. Note, 3.625%, 12/12/2026	93,814
100,000	Massachusetts Mutual Life Insurance Co., Sub. Note, 144A, 4.900%, 4/1/2077	82,268
70,000	Pacific Life Insurance Co., Sub. Note, 144A, 4.300%, 10/24/2067	53,418
100,000	Principal Financial Group, Inc., Sr. Unsecd. Note, 2.125%, 6/15/2030	82,164
75,000	Prudential Financial, Inc., Sr. Unsecd. Note, Series MTN, 4.600%, 5/15/2044	67,044
	TOTAL	378,708
	Financial Institution - Insurance - P&C—0.2%
30,000	Chubb INA Holdings, Inc., Sr. Unsecd. Note, 3.350%, 5/3/2026	28,755
100,000	Chubb INA Holdings, Inc., Sr. Unsecd. Note, 1.375%, 9/15/2030	77,855
200,000	Nationwide Mutual Insurance Co., Sub. Note, 144A, 9.375%, 8/15/2039	258,313
	TOTAL	364,923
	Financial Institution - REIT - Apartment—0.2%
125,000	Avalonbay Communities, Inc., Sr. Unsecd. Note, Series MTN, 3.350%, 5/15/2027	116,314
125,000	Mid-America Apartment Communities LP, 4.000%, 11/15/2025	121,572
100,000	UDR, Inc., Sr. Unsecd. Note, Series GMTN, 3.500%, 1/15/2028	91,049
	TOTAL	328,935
	Financial Institution - REIT - Healthcare—0.2%
100,000	Healthcare Trust of America, Sr. Unsecd. Note, 2.000%, 3/15/2031	75,934
125,000	Physicians Realty Trust, Sr. Unsecd. Note, 3.950%, 1/15/2028	114,394
75,000	Welltower, Inc., Sr. Unsecd. Note, 2.800%, 6/1/2031	59,808
100,000	Welltower, Inc., Sr. Unsecd. Note, 4.250%, 4/1/2026	96,820
	TOTAL	346,956
	Financial Institution - REIT - Office—0.1%
130,000	Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 1.875%, 2/1/2033	97,018
100,000	Boston Properties LP, Sr. Unsecd. Note, 3.650%, 2/1/2026	94,902
40,000	Piedmont Operating Partnership, LP, Sr. Unsecd. Note, 2.750%, 4/1/2032	28,096
	TOTAL	220,016
	Financial Institution - REIT - Other—0.1%
60,000	WP Carey, Inc., Sr. Unsecd. Note, 3.850%, 7/15/2029	54,038
50,000	WP Carey, Inc., Sr. Unsecd. Note, 4.600%, 4/1/2024	49,549
	TOTAL	103,587
	Financial Institution - REIT - Retail—0.1%
125,000	Regency Centers LP, Sr. Unsecd. Note, 4.125%, 3/15/2028	116,271
	Technology—0.7%
150,000	Apple, Inc., Sr. Unsecd. Note, 2.375%, 2/8/2041	106,614
65,000	Apple, Inc., Sr. Unsecd. Note, 2.400%, 8/20/2050	40,727
92,000	Broadcom, Inc., Sr. Unsecd. Note, 4.110%, 9/15/2028	85,737
20,000	Broadcom, Inc., Sr. Unsecd. Note, 4.150%, 11/15/2030	17,972

Annual Shareholder Report

Shares, Principal Amount or Contracts		Value
	CORPORATE BONDS—continued
	Technology—continued
$ 5,000	Broadcom, Inc., Sr. Unsecd. Note, 144A, 3.187%, 11/15/2036	$ 3,607
50,000	CDW LLC / CDW Finance, Sr. Unsecd. Note, 2.670%, 12/1/2026	44,485
100,000	Equifax, Inc., Sr. Unsecd. Note, 2.600%, 12/1/2024	95,392
30,000	Fidelity National Information Services, Inc., Sr. Unsecd. Note, 4.700%, 7/15/2027	29,317
10,000	Fidelity National Information Services, Inc., Sr. Unsecd. Note, 5.625%, 7/15/2052	9,227
85,000	Fiserv, Inc., Sr. Unsecd. Note, 3.500%, 7/1/2029	76,760
80,000	Fiserv, Inc., Sr. Unsecd. Note, 3.800%, 10/1/2023	79,171
100,000	Lam Research Corp., Sr. Unsecd. Note, 4.000%, 3/15/2029	95,436
65,000	Microsoft Corp., Sr. Unsecd. Note, 2.525%, 6/1/2050	43,087
200,000	Microsoft Corp., Sr. Unsecd. Note, 3.125%, 11/3/2025	193,420
100,000	Oracle Corp., Sr. Unsecd. Note, 3.600%, 4/1/2050	67,745
100,000	Oracle Corp., Sr. Unsecd. Note, 6.250%, 11/9/2032	104,978
100,000	Verisk Analytics, Inc., Sr. Unsecd. Note, 4.125%, 3/15/2029	93,823
25,000	Verisk Analytics, Inc., Sr. Unsecd. Note, 5.500%, 6/15/2045	23,605
40,000	VMware, Inc., Sr. Unsecd. Note, 1.400%, 8/15/2026	34,921
35,000	VMware, Inc., Sr. Unsecd. Note, 2.200%, 8/15/2031	26,644
	TOTAL	1,272,668
	Technology Services—0.1%
100,000	Fortinet, Inc., Sr. Unsecd. Note, 1.000%, 3/15/2026	87,650
75,000	Global Payments, Inc., Sr. Unsecd. Note, 4.950%, 8/15/2027	72,873
80,000	Verisign, Inc., Sr. Unsecd. Note, 2.700%, 6/15/2031	65,354
	TOTAL	225,877
	Transportation - Railroads—0.2%
75,000	Burlington Northern Santa Fe Corp., Sr. Unsecd. Note, 3.000%, 4/1/2025	72,194
110,000	Kansas City Southern Industries, Inc., Sr. Unsecd. Note, 3.500%, 5/1/2050	78,814
65,000	Union Pacific Corp., Sr. Unsecd. Note, 2.375%, 5/20/2031	54,893
100,000	Union Pacific Corp., Sr. Unsecd. Note, 2.400%, 2/5/2030	85,775
	TOTAL	291,676
	Transportation - Services—0.2%
65,000	FedEx Corp., Sr. Unsecd. Note, 3.250%, 5/15/2041	46,524
80,000	GXO Logistics, Inc., Sr. Unsecd. Note, Series WI, 1.650%, 7/15/2026	68,593
80,000	GXO Logistics, Inc., Sr. Unsecd. Note, Series WI, 2.650%, 7/15/2031	59,253
200,000	Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 2.700%, 3/14/2023	198,951
50,000	Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 2.850%, 3/1/2027	45,208
	TOTAL	418,529
	Utility - Electric—1.1%
165,000	Ameren Corp., Sr. Unsecd. Note, 1.750%, 3/15/2028	139,632
50,000	American Electric Power Co., Inc., Jr. Sub. Note, 2.031%, 3/15/2024	48,233
100,000	Black Hills Corp., Sr. Unsecd. Note, 2.500%, 6/15/2030	80,509
65,000	Dominion Energy, Inc., Jr. Sub. Note, 3.071%, 8/15/2024	62,673
200,000	Duke Energy Corp., Sr. Unsecd. Note, 2.650%, 9/1/2026	184,987
125,000	Duke Energy Corp., Sr. Unsecd. Note, 3.750%, 9/1/2046	93,293
75,000	Emera US Finance LP, Sr. Unsecd. Note, 3.550%, 6/15/2026	70,346
50,000	Emera US Finance LP, Sr. Unsecd. Note, 4.750%, 6/15/2046	38,782
100,000	Enel Finance International SA, Company Guarantee, 144A, 6.000%, 10/7/2039	91,432
100,000	Exelon Corp., Sr. Unsecd. Note, 4.700%, 4/15/2050	87,632
25,000	Exelon Corp., Sr. Unsecd. Note, 144A, 4.100%, 3/15/2052	20,110
100,000	FirstEnergy Transmission LLC, Sr. Unsecd. Note, 144A, 4.550%, 4/1/2049	81,387
93,000	Fortis, Inc./Canada, Sr. Unsecd. Note, 3.055%, 10/4/2026	86,391
190,000	Kansas City Power and Light Co., Sr. Unsecd. Note, 4.200%, 3/15/2048	155,100
50,000	National Rural Utilities Cooperative Finance Corp., Sr. Sub. Note, 5.250%, 4/20/2046	45,066
200,000	NextEra Energy Capital Holdings, Inc., Sr. Unsecd. Note, 2.250%, 6/1/2030	164,925
65,000	NiSource Finance Corp., Sr. Unsecd. Note, 4.375%, 5/15/2047	54,665

Annual Shareholder Report

Shares, Principal Amount or Contracts			Value
		CORPORATE BONDS—continued
		Utility - Electric—continued
$ 300,000		PPL Capital Funding, Inc., Sr. Unsecd. Note, 3.100%, 5/15/2026	$ 280,740
125,000		Puget Energy, Inc., Sec. Fac. Bond, 2.379%, 6/15/2028	106,580
100,000		Southern Co., Jr. Sub. Note, Series B, 4.000%, 1/15/2051	91,250
20,000		WEC Energy Group, Inc., Sr. Unsecd. Note, 5.150%, 10/1/2027	20,250
		TOTAL	2,003,983
		Utility - Natural Gas—0.3%
100,000		Enbridge Energy Partners LP, Sr. Unsecd. Note, 5.500%, 9/15/2040	93,942
40,000		National Fuel Gas Co., Sr. Unsecd. Note, 2.950%, 3/1/2031	31,438
70,000		National Fuel Gas Co., Sr. Unsecd. Note, 5.500%, 1/15/2026	69,720
130,000		Sempra Energy, Sr. Unsecd. Note, 3.700%, 4/1/2029	118,762
120,000		Southern Natural Gas, Sr. Unsecd. Note, 144A, 4.800%, 3/15/2047	97,934
90,000		TransCanada PipeLines Ltd., Sr. Secd. Note, 5.100%, 3/15/2049	82,064
		TOTAL	493,860
		TOTAL CORPORATE BONDS (IDENTIFIED COST $20,468,312)	18,080,314
		COMMERCIAL MORTGAGE-BACKED SECURITIES—0.6%
		Agency Commercial Mortgage-Backed Securities—0.1%
290,000		FREMF Mortgage Trust 2015-K49 REMIC, Class B, 3.724%, 10/25/2048	274,971
		Commercial Mortgage—0.4%
85,000		Bank, Class A4, 3.488%, 11/15/2050	78,335
110,000		Bank, Class A4, 3.507%, 3/15/2064	97,067
200,000		Benchmark Mortgage Trust 2020-B19, Class A5, 1.850%, 9/15/2053	161,198
50,000		Commercial Mortgage Trust 2015-DC1, Class AM, 3.724%, 2/10/2048	47,168
200,000		Fontainebleau Miami Beach Trust, Class B, 3.447%, 12/10/2036	185,437
100,000		JPMDB Commercial Mortgage Securities Trust 2016-C4, Class A3, 3.141%, 12/15/2049	91,632
		TOTAL	660,837
		Federal Home Loan Mortgage Corporation REMIC—0.1%
230,338		Federal Home Loan Mortgage Corp. REMIC, Series K105, Class A1, 1.536%, 9/25/2029	202,939
		TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $1,296,524)	1,138,747
		FOREIGN GOVERNMENTS/AGENCIES—0.2%
		Sovereign—0.2%
200,000		Mexico, Government of, 3.750%, 1/11/2028	188,756
100,000		Poland, Government of, Sr. Unsecd. Note, 4.000%, 1/22/2024	98,610
		TOTAL FOREIGN GOVERNMENTS/AGENCIES (IDENTIFIED COST $301,950)	287,366
		MORTGAGE-BACKED SECURITIES—0.0%
		Government National Mortgage Association—0.0%
3,435		Government National Mortgage Association, Pool 2796, 7.000%, 8/20/2029	3,557
2,128		Government National Mortgage Association, Pool 3040, 7.000%, 2/20/2031	2,220
6,008		Government National Mortgage Association, Pool 3188, 6.500%, 1/20/2032	6,252
7,067		Government National Mortgage Association, Pool 3239, 6.500%, 5/20/2032	7,370
		TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $18,624)	19,399
		ADJUSTABLE RATE MORTGAGE—0.0%
		Federal National Mortgage Association—0.0%
1,591	2	Federal National Mortgage Association ARM, 4.094%, 9/1/2037 (IDENTIFIED COST $1,603)	1,608
		PURCHASED PUT OPTIONS—0.1%
30,000		SPDR S&P 500 ETF Trust (PUT-Option), Notional Amount $38,243,000, Exercise Price $370, Expiration Date 1/11/2023	43,200
30,000		SPDR S&P 500 ETF Trust (PUT-Option), Notional Amount $38,243,000, Exercise Price $380, Expiration Date 1/5/2023	60,300
		TOTAL PURCHASED PUT OPTIONS (IDENTIFIED COST $126,923)	103,500
		INVESTMENT COMPANIES—17.4%
1,582		Bank Loan Core Fund	13,706

Annual Shareholder Report

Shares, Principal Amount or Contracts		Value
	INVESTMENT COMPANIES—continued
300,979	Emerging Markets Core Fund	$ 2,389,776
515,669	Federated Hermes High Income Bond Fund II	2,753,671
1,084	Federated Hermes Short-Intermediate Government Fund, Institutional Shares	10,633
2,582,585	Mortgage Core Fund	21,642,062
411,979	Project and Trade Finance Core Fund	3,567,737
	TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $32,499,547)	30,377,585
	REPURCHASE AGREEMENT—9.4%
$16,454,000	Interest in $1,350,000,000 joint repurchase agreement 4.30%, dated 12/30/2022 under which Bank of Montreal will repurchase securities provided as collateral for $1,350,645,000 on 1/3/2023. The securities provided as collateral at the end of the period held with BNY Mellon as tri-party agent, were U.S. Government Agency securities with various maturities to 5/20/2072 and the market value of those underlying securities was $1,379,047,631. (IDENTIFIED COST $16,454,000)	16,454,000
	TOTAL INVESTMENT IN SECURITIES—99.7% (IDENTIFIED COST $169,996,963)3	174,227,614
	OTHER ASSETS AND LIABILITIES - NET—0.3%4	542,069
	TOTAL NET ASSETS—100%	$174,769,683

At December 31, 2022, the Fund had the following outstanding futures contracts:

Description	Number of Contracts	Notional Value	Expiration Date	Value and Unrealized Appreciation (Depreciation)
Long Futures:
United States Treasury Notes 10-Year Ultra Long Futures	50	$5,914,063	March 2023	$(8,670)
S&P 500 E-Mini Long Futures	54	$10,424,700	March 2023	$(38,146)
United States Treasury Notes 2-Year Long Futures	50	$10,253,906	March 2023	$9,313
Short Futures:
United States Treasury Notes 5-Year Short Futures	30	$3,237,891	March 2023	$3,501
United States Treasury Notes 10-Year Short Futures	221	$24,817,609	March 2023	$517,181
NET UNREALIZED APPRECIATION ON FUTURES CONTRACTS				$483,179

Net Unrealized Appreciation on Futures Contracts is included in “Other Assets and Liabilities—Net.”

Affiliated fund holdings are investment companies which are managed by Federated Global Investment Management Corp., Federated Investment Management Company and Federated Equity Management Company of Pennsylvania (collectively, the “Co-Advisers”) or an affiliate of the Co-Advisers. Transactions with affiliated fund holdings during the period ended December 31, 2022, were as follows:

Affiliates	Value as of 12/31/2021	Purchases at Cost	Proceeds from Sales	Change in Unrealized Appreciation/ Depreciation	Net Realized Gain/ (Loss)	Value as of 12/31/2022	Shares Held as of 12/31/2022	Dividend Income
Bank Loan Core Fund	$4,642,689	$113,990	$(4,400,000)	$(121,381)	$(221,592)	$13,706	1,582	$113,989
Emerging Markets Core Fund	$3,587,549	$1,029,520	$(1,700,000)	$(295,262)	$(232,031)	$2,389,776	300,979	$179,521
Federated Hermes High Income Bond Fund II, Class P	$6,958,443	$282,542	$(3,600,000)	$(1,373,969)	$486,655	$2,753,671	515,669	$282,542
Federated Hermes Short-Intermediate Government Fund, Institutional Shares	$11,649	$221	N/A	$(1,237)	N/A	$10,633	1,084	$221
Mortgage Core Fund	$25,374,632	$10,898,834	$(10,925,000)	$(2,664,453)	$(1,041,951)	$21,642,062	2,582,585	$773,834
Project and Trade Finance Core Fund	$3,423,115	$195,468	N/A	$(50,846)	N/A	$3,567,737	411,979	$195,405
TOTAL OF AFFILIATED TRANSACTIONS	$43,998,077	$12,520,575	$(20,625,000)	$(4,507,148)	$(1,008,919)	$30,377,585	3,813,878	$1,545,512

1	Non-income-producing security.
2	Floating/adjustable note with current rate and current maturity or next reset date shown. Adjustable rate mortgage security coupons are based on the weighted average note rates of the underlying mortgages less the guarantee and servicing fees. These securities do not indicate an index and spread in their description above.
3	The cost of investments for federal tax purposes amounts to $173,005,443.
4	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Note: The categories of investments are shown as a percentage of total net assets at December 31, 2022.

Annual Shareholder Report

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

Level 1—quoted prices in active markets for identical securities.

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of December 31, 2022, in valuing the Fund’s assets carried at fair value:

Valuation Inputs
	Level 1— Quoted Prices	Level 2— Other Significant Observable Inputs	Level 3— Significant Unobservable Inputs	Total
Equity Securities:
Common Stocks
Domestic	$64,375,667	$—	$—	$64,375,667
International	3,777,276	—	—	3,777,276
Debt Securities:
U.S. Treasuries	—	39,612,152	—	39,612,152
Corporate Bonds	—	18,080,314	—	18,080,314
Commercial Mortgage-Backed Securities	—	1,138,747	—	1,138,747
Foreign Governments/Agencies	—	287,366	—	287,366
Mortgage-Backed Securities	—	19,399	—	19,399
Adjustable Rate Mortgage	—	1,608	—	1,608
Purchased Put Options	103,500	—	—	103,500
Investment Companies1	26,809,848	—	—	30,377,585
Repurchase Agreement	—	16,454,000	—	16,454,000
TOTAL SECURITIES	$95,066,291	$75,593,586	$—	$174,227,614
Other Financial Instruments:2
Assets	$529,995	$—	$—	$529,995
Liabilities	(46,816)	—	—	(46,816)
TOTAL OTHER FINANCIAL INSTRUMENTS	$483,179	$—	$—	$483,179

As permitted by U.S. generally accepted accounting principles (GAAP), an Investment Company valued at $3,567,737 is measured at fair value using the net asset

value (NAV) per share practical expedient and has not been categorized in the chart above but is included in the Total column. The price of shares redeemed of

Project and Trade Finance Core Fund may be determined as of the closing NAV of the fund up to twenty-four days after receipt of a shareholder redemption

request.

Other financial instruments are futures contracts.

The following acronym(s) are used throughout this portfolio:
ARM	—Adjustable Rate Mortgage
ETF	—Exchange-Traded Fund
FREMF	—Freddie Mac Multifamily K-Deals
GMTN	—Global Medium Term Note
MTN	—Medium Term Note
REIT	—Real Estate Investment Trust
REMIC	—Real Estate Mortgage Investment Conduit
SPDR	—Standard & Poor’s Depositary Receipt

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Primary Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended December 31,
	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$12.90	$11.09	$11.30	$9.60	$10.80
Income From Investment Operations:
Net investment income (loss)1	0.16	0.19	0.19	0.24	0.23
Net realized and unrealized gain (loss)	(1.72)	1.83	(0.13)	1.68	(1.13)
Total From Investment Operations	(1.56)	2.02	0.06	1.92	(0.90)
Less Distributions:
Distributions from net investment income	(0.21)	(0.21)	(0.27)	(0.22)	(0.30)
Distributions from net realized gain	(2.67)	—	—	—	—
Total Distributions	(2.88)	(0.21)	(0.27)	(0.22)	(0.30)
Net Asset Value, End of Period	$8.46	$12.90	$11.09	$11.30	$9.60
Total Return2	(13.75)%	18.51%	0.93%	20.23%	(8.49)%
Ratios to Average Net Assets:
Net expenses3	0.95%	0.93%	0.92%	0.91%	0.89%
Net investment income	1.72%	1.58%	1.82%	2.28%	2.26%
Expense waiver/reimbursement4	0.11%	0.02%	0.01%	0.02%	0.03%
Supplemental Data:
Net assets, end of period (000 omitted)	$173,194	$217,682	$586,281	$651,498	$632,957
Portfolio turnover5	51%	60%	61%	47%	96%

1	Per share numbers have been calculated using the average shares method.
2	Based on net asset value. Total returns do not reflect any additional fees or expenses that may be imposed by separate accounts of insurance companies or in connection with any variable annuity or variable life insurance contract.
3	Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
4	This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/ reimbursement recorded by investment companies in which the Fund may invest.
5	Securities that mature are considered sales for purposes of this calculation.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Service Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended December 31,				Period Ended 12/31/20181
	2022	2021	2020	2019	Period Ended 12/31/20181
Net Asset Value, Beginning of Period	$12.90	$11.09	$11.27	$9.59	$10.08
Income From Investment Operations:
Net investment income (loss)2	0.14	0.16	0.16	0.21	0.13
Net realized and unrealized gain (loss)	(1.74)	1.84	(0.12)	1.68	(0.62)
Total From Investment Operations	(1.60)	2.00	0.04	1.89	(0.49)
Less Distributions:
Distributions from net investment income	—	(0.19)	(0.22)	(0.21)	—
Distributions from net realized gain	(2.67)	—	—	—	—
Total Distributions	(2.67)	(0.19)	(0.22)	(0.21)	—
Net Asset Value, End of Period	$8.63	$12.90	$11.09	$11.27	$9.59
Total Return3	(14.00)%	18.25%	0.71%	19.92%	(4.86)%
Ratios to Average Net Assets:
Net expenses4	1.20%	1.16%	1.17%	1.16%	1.15%5
Net investment income	1.47%	1.38%	1.57%	2.03%	1.91%5
Expense waiver/reimbursement6	0.11%	0.02%	0.01%	0.02%	0.02%5
Supplemental Data:
Net assets, end of period (000 omitted)	$1,576	$1,949	$39,680	$44,161	$44,037
Portfolio turnover7	51%	60%	61%	47%	96%8

1	Reflects operations for the period from April 26, 2018 (commencement of operations) to December 31, 2018.
2	Per share numbers have been calculated using the average shares method.
3	Based on net asset value. Total returns do not reflect any additional fees or expenses that may be imposed by separate accounts of insurance companies or in connection with any variable annuity or variable life insurance contract. Total returns for periods of less than one year are not annualized.
4	Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
5	Computed on an annualized basis.
6	This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/ reimbursement recorded by investment companies in which the Fund may invest.
7	Securities that mature are considered sales for purposes of this calculation.
8	Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended December 31, 2018.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Assets and Liabilities
December 31, 2022

Assets:
Investment in securities, at value including $30,377,585 of investments in affiliated holdings* (identified cost $169,996,963)	$174,227,614
Cash	302
Cash denominated in foreign currencies (identified cost $1,146)	1,221
Due from broker (Note 2)	2,000
Income receivable	509,383
Income receivable from affiliated holdings	118,607
Receivable for investments sold	267,956
Receivable for shares sold	15,157
Total Assets	175,142,240
Liabilities:
Payable for investments purchased	245,592
Payable for shares redeemed	23,169
Payable for variation margin on futures contracts	6,279
Payable for investment adviser fee (Note 5)	6,054
Payable for administrative fee (Note 5)	1,436
Payable for auditing fees	29,038
Payable for custodian fees	10,358
Payable for portfolio accounting fees	32,510
Payable for distribution services fee (Note 5)	339
Accrued expenses (Note 5)	17,782
Total Liabilities	372,557
Net assets for 20,644,425 shares outstanding	$174,769,683
Net Assets Consist of:
Paid-in capital	$191,811,506
Total distributable earnings (loss)	(17,041,823)
Total Net Assets	$174,769,683
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Primary Shares:
$173,193,588 ÷ 20,461,863 shares outstanding, no par value, unlimited shares authorized	$8.46
Service Shares:
$1,576,095 ÷ 182,562 shares outstanding, no par value, unlimited shares authorized	$8.63

*	See information listed after the Fund’s Portfolio of Investments.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Operations
Year Ended December 31, 2022

Investment Income:
Dividends (including $1,545,512 received from affiliated holdings* and net of foreign taxes withheld of $1,497)	$3,234,881
Interest	1,803,529
TOTAL INCOME	5,038,410
Expenses:
Investment adviser fee (Note 5)	1,411,707
Administrative fee (Note 5)	277,337
Custodian fees	38,248
Transfer agent fees	18,339
Directors’/Trustees’ fees (Note 5)	2,343
Auditing fees	36,298
Legal fees	12,659
Portfolio accounting fees	129,648
Distribution services fee (Note 5)	4,185
Printing and postage	38,363
Miscellaneous (Note 5)	33,549
TOTAL EXPENSES	2,002,676
Waiver/reimbursement of investment adviser fee (Note 5)	(197,998)
Net expenses	1,804,678
Net investment income	3,233,732
Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions, Futures Contracts and Written Options:
Net realized gain on investments (including net realized loss of $(1,008,919) on sales of investments in affiliated holdings*)	4,641,786
Net realized loss on foreign currency transactions	(666)
Net realized loss on futures contracts	(13,879,501)
Net realized gain on written options	84,036
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $(4,507,148) on investments in affiliated holdings*)	(23,109,172)
Net change in unrealized appreciation of translation of assets and liabilities in foreign currency	75
Net change in unrealized appreciation of futures contracts	(628,851)
Net change in unrealized appreciation of written options	(41,826)
Net realized and unrealized gain (loss) on investments, foreign currency transactions, futures contracts and written options	(32,934,119)
Change in net assets resulting from operations	$(29,700,387)

*	See information listed after the Fund’s Portfolio of Investments.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Changes in Net Assets

Year Ended December 31	2022	2021
Increase (Decrease) in Net Assets
Operations:
Net investment income	$3,233,732	$6,554,594
Net realized gain (loss)	(9,154,345)	127,552,982
Net change in unrealized appreciation/depreciation	(23,779,774)	(56,776,535)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS	(29,700,387)	77,331,041
Distributions to Shareholders:
Primary Shares	(47,808,168)	(10,815,186)
Service Shares	(400,234)	(645,526)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS	(48,208,402)	(11,460,712)
Share Transactions:
Proceeds from sale of shares	5,130,009	8,889,313
Net asset value of shares issued to shareholders in payment of distributions declared	48,208,376	11,460,710
Cost of shares redeemed	(20,291,100)	(492,550,413)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS	33,047,285	(472,200,390)
Change in net assets	(44,861,504)	(406,330,061)
Net Assets:
Beginning of period	219,631,187	625,961,248
End of period	$174,769,683	$219,631,187

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Notes to Financial Statements

December 31, 2022

1. ORGANIZATION

Federated Hermes Insurance Series (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of six portfolios. The financial statements included herein are only those of Federated Hermes Managed Volatility Fund II (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers two classes of shares: Primary Shares and Service Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. Fund shares are available exclusively as a funding vehicle for life insurance companies writing variable life insurance policies and variable annuity contracts. The investment objective of the Fund is to achieve high current income and moderate capital appreciation. The Co-Advisers each are registered as a “commodity pool operator” with respect to operation of the Fund.

2. SIGNIFICANT ACCOUNTING POLICIES

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

◾

Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Co-Advisers.

◾

Shares of other mutual funds or non-exchange traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.

◾

Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.

◾

Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and ask quotations.

◾

Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Co-Advisers.

◾

For securities that are fair valued in accordance with procedures established by and under the general supervision of the Co-Advisers, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.

If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Co-Advisers’ valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion of the Co-Advisers’ valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.

Fair Valuation and Significant Events Procedures

Pursuant to Rule 2a-5 under the Act, the Fund’s Board of Trustees (the “Trustees”) has designated the Co-Advisers as the Fund’s valuation designee to perform any fair value determinations for securities and other assets held by the Fund. The Co-Advisers are subject to the Trustees oversight and certain reporting and other requirements intended to provide the Trustees the information needed to oversee the Co-Advisers’ fair value determinations.

The Co-Advisers acting through their Valuation Committee, are responsible for determining the fair value of investments for which market quotations are not readily available. The Valuation Committee is comprised of officers of the Co-Advisers and certain of the Co-Advisers’ affiliated companies and determines fair value and oversees the calculation of the NAV. The Valuation Committee is also authorized to use pricing services to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Co-Advisers based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Co-Advisers. The Trustees periodically review the fair valuations made by the Valuation Committee. The Trustees have also approved the Co-Advisers’ fair valuation and significant events procedures as part of the Fund’s compliance program and will review any changes made to the procedures.

Annual Shareholder Report

The Co-Advisers have also adopted procedures requiring an investment to be priced at its fair value whenever the Valuation Committee determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

◾

With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;

◾

Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;

◾

The Co-Advisers have adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Valuation Committee will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Co-Advisers. The Trustees periodically review fair valuations made in response to significant events.

Repurchase Agreements

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund’s Co-Advisers and their affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Positive or negative inflation adjustments on Treasury Inflation-Protected Securities are included in interest income. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Amortization/accretion of premium and discount is included in investment income. Gains and losses realized on principal payment of mortgage-backed securities (paydown gains and losses) are classified as part of investment income. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses. The detail of the total fund expense reimbursement of $197,998 is disclosed in Note 5.

Federal Taxes

Annual Shareholder Report

When-Issued and Delayed-Delivery Transactions

Futures Contracts

The Fund purchases and sells financial futures contracts to manage duration, market and yield curve risks. Upon entering into a financial futures contract with a broker, the Fund is required to deposit with a broker, either U.S. government securities or a specified amount of cash, which is shown as due from broker in the Statement of Assets and Liabilities. Futures contracts are valued daily and unrealized gains or losses are recorded in a “variation margin” account. The Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. There is minimal counterparty risk to the Fund since futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures contracts, guarantees the futures contracts against default.

Futures contracts outstanding at period end are listed after the Fund’s Portfolio of Investments.

The average notional value of long and short futures contracts held by the Fund throughout the period was $37,082,741 and $21,434,500, respectively. This is based on amounts held as of each month-end throughout the fiscal period.

Foreign Exchange Contracts

The Fund enters into foreign exchange contracts to manage currency risk. Purchased contracts are used to acquire exposure to foreign currencies, whereas, contracts to sell are used to hedge the Fund’s securities against currency fluctuations. Risks may arise upon entering into these transactions from the potential inability of counterparties to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the settlement date.

At December 31, 2022, the Fund had no outstanding foreign exchange contracts and no activity during the fiscal year.

Foreign Currency Translation

Reported net 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, the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate.

Option Contracts

The Fund buys or sells put and call options to manage market risk. The seller (“writer”) of an option receives a payment or premium, from the buyer, which the writer keeps regardless of whether the buyer exercises the option. When the Fund writes a put or call option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options which expire are treated as realized gains. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the underlying reference instrument. When the Fund purchases a put or call option, an amount equal to the premium paid is recorded as an increase to the cost of the investment and subsequently marked to market to reflect the current value of the option purchased. Premiums paid for purchasing options which expire are treated as realized losses. Premiums received/paid for writing/purchasing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying reference instrument to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. Options can trade on securities or commodities exchanges. In this case, the exchange sets all the terms of the contract except for the price. Most exchanges require investors to maintain margin accounts through their brokers to cover their potential obligations to the exchange. This protects investors against potential defaults by the counterparty.

Purchased option contracts outstanding at period-end are listed in the Fund’s Portfolio of Investments.

At December 31, 2022, the Fund had no outstanding written option contracts.

The average market value of purchased put options held by the Fund throughout the period was $291,865. This is based on amounts held as of each month-end throughout the fiscal period.

The average market value of written put options held by the Fund throughout the period was $4,569. This is based on amounts held as of each month-end throughout the fiscal period.

Annual Shareholder Report

Restricted Securities

Additional Disclosure Related to Derivative Instruments

Fair Value of Derivative Instruments
	Assets		Liabilities
	Statement of Assets and Liabilities Location	Fair Value	Statement of Assets and Liabilities Location	Fair Value
Derivatives not accounted for as hedging instruments under ASC Topic 815
Interest rate contracts		$—	Payable for variation margin on futures contracts	$(521,325)*
Equity contracts		—	Payable for variation margin on futures contracts	38,146*
Equity contracts	Purchased options, within Investment in securities at value	103,500		—
Total derivatives not accounted for as hedging instruments under ASC Topic 815		$103,500		$(483,179)

*	Includes cumulative appreciation/(depreciation) of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

The Effect of Derivative Instruments on the Statement of Operations for the Year Ended December 31, 2022

Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
	Futures Contracts	Purchased Options Contracts1	Written Options Contracts	Total
Interest rate contracts	$1,869,340	$—	$—	$1,869,340
Equity contracts	(15,748,841)	5,697,648	84,036	(9,967,157)
TOTAL	$(13,879,501)	$5,697,648	$84,036	$(8,097,817)

1	The net realized gain on Purchased Options Contracts is found within the Net realized gain on investments on the Statement of Operations.

Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
	Futures Contracts	Purchased Options Contracts1	Written Options Contracts	Total
Interest rate contracts	$756,057	$—	$—	$756,057
Equity contracts	(1,384,908)	75,001	(41,826)	(1,351,733)
TOTAL	$(628,851)	$75,001	$(41,826)	$(595,676)

1	The net change in unrealized appreciation of Purchased Options Contracts is found within the Net change in unrealized appreciation of investments on the Statement of Operations.

Other

Annual Shareholder Report

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Year Ended 12/31/2022		Year Ended 12/31/2021
Primary Shares:	Shares	Amount	Shares	Amount
Shares sold	530,991	$4,916,770	703,724	$8,356,386
Shares issued to shareholders in payment of distributions declared	5,219,233	47,808,168	954,562	10,815,186
Shares redeemed	(2,158,898)	(19,972,108)	(37,675,286)	(450,315,015)
NET CHANGE RESULTING FROM PRIMARY SHARE TRANSACTIONS	3,591,326	$32,752,830	(36,017,000)	$(431,143,443)
	Year Ended 12/31/2022		Year Ended 12/31/2021
Service Shares:	Shares	Amount	Shares	Amount
Shares sold	21,072	$213,239	43,013	$532,927
Shares issued to shareholders in payment of distributions declared	42,757	400,208	56,874	645,524
Shares redeemed	(32,386)	(318,992)	(3,527,411)	(42,235,398)
NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS	31,443	$294,455	(3,427,524)	$(41,056,947)
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS	3,622,769	$33,047,285	(39,444,524)	$(472,200,390)

4. FEDERAL TAX INFORMATION

The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended December 31, 2022 and 2021, was as follows:

	2022	2021
Ordinary income	$20,666,153	$11,460,712
Long-term capital gains	$27,542,249	$—

As of December 31, 2022, the components of distributable earnings on a tax-basis were as follows:

Undistributed ordinary income	$3,229,137
Net unrealized appreciation	$1,222,246
Capital loss carryforwards and deferrals	$(21,493,206)
TOTAL	$(17,041,823)

At December 31, 2022, the cost of investments for federal tax purposes was $173,005,443. The net unrealized appreciation of investments for federal tax purposes was $1,222,171. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $13,192,920 and net unrealized depreciation from investments for those securities having an excess of cost over value of $11,970,749. The amounts presented are inclusive of derivative contracts. The difference between book-basis and tax-basis net unrealized appreciation is attributable to differing treatments for discount accretion/premium amortization on debt securities, the deferral of losses on wash sales and mark-to-market of futures contracts.

As of December 31, 2022, the Fund had a capital loss carryforward of $21,493,206 which will reduce the Fund’s taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code of 1986, thereby reducing the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, these net capital losses retain their character as either short-term or long-term and do not expire.

The following schedule summarizes the Fund’s capital loss carryforwards:

Short-Term	Long-Term	Total
$4,527,589	$16,965,617	$21,493,206

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

The co-advisory agreement between the Fund and the Co-Advisers provides for an annual fee equal to 0.75% of the Fund’s average daily net assets. The Co-Advisers may voluntarily choose to waive any portion of their fee for competitive reasons such as to maintain the Fund’s expense ratio, or as and when appropriate, to maintain positive or zero net yields. For the year ended December 31, 2022, the Co-Advisers voluntarily waived $175,930 of their fee.

The Co-Advisers have agreed to reimburse the Fund for certain investment adviser fees as a result of transactions in other affiliated investment companies. For the year ended December 31, 2022, the Co-Advisers reimbursed $22,068.

Annual Shareholder Report

Administrative Fee

Administrative Fee	Average Daily Net Assets of the Investment Complex
0.100%	on assets up to $50 billion
0.075%	on assets over $50 billion

In addition to the fees described above, the Fund agrees to pay FAS an annual Administrative Service Charge of $125,000 for administrative and compliance services related to commodities Futures Trading Commission Rule 4.5. For the year ended December 31, 2022, the annualized fee paid to FAS was 0.147% of average daily net assets of the Fund.

In addition, FAS may charge certain out-of-pocket expenses to the Fund.

Distribution Services Fee

	Distribution Services Fees Incurred
Service Shares	$4,185

When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the year ended December 31, 2022, FSC did not retain any fees paid by the Fund.

Directors’/Trustees’ and Miscellaneous Fees

Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Independent Directors’/Trustees’ fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Co-Advisers which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended December 31, 2022, were as follows:

Purchases	$53,208,503
Sales	$84,028,262

7. LINE OF CREDIT

8. INTERFUND LENDING

Annual Shareholder Report

9. INDEMNIFICATIONS

10. OTHER MATTERS

11. SUBSEQUENT EVENT

On February 14, 2023, the Trustees accepted the resignation of Federated Global Investment Management Corp. as a Co-Adviser of the Fund. On the same date, the Trustees approved the termination of a service agreement between Federated Investment Management Company (FIMCO) and Federated Hermes (UK) LLP (Federated UK) pursuant to which Federated UK provided certain non-discretionary credit research and analysis services to FIMCO. Fees, if any, paid to Federated UK for these services were paid by FIMCO and not by the Fund. These changes are effective on or about April 30, 2023.

12. FEDERAL TAX INFORMATION (UNAUDITED)

Of the ordinary income distributions made by the Fund during the year ended December 31, 2022, 7.82% qualify for the dividend received deduction available to corporate shareholders.

For the year ended December 31, 2022, the amount of long-term capital gains designated by the Fund was $27,542,249.

Annual Shareholder Report

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Federated Hermes Insurance Series and THE Shareholders of Federated Hermes Managed Volatility Fund II:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of Federated Hermes Managed Volatility Fund II (the Fund), a portfolio of Federated Hermes Insurance Series, including the portfolio of investments, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights 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 years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

We have served as the auditor for one or more of Federated Hermes’ investment companies since 2006.

Boston, Massachusetts
February 15, 2023

Annual Shareholder Report

Shareholder Expense Example (unaudited)

ACTUAL EXPENSES

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

	Beginning Account Value 7/1/2022	Ending Account Value 12/31/2022	Expenses Paid During Period1
Actual:
Primary Shares	$1,000	$995.30	$4.78
Service Shares	$1,000	$994.20	$6.03
Hypothetical (assuming a 5% return before expenses):
Primary Shares	$1,000	$1,020.42	$4.84
Service Shares	$1,000	$1,019.16	$6.11

Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the

one-half-year period). The expenses shown in the table do not include the charges and expenses imposed by the insurance company under the variable insurance

product contract. Please refer to the variable insurance product prospectus for a complete listing of these expenses. The annualized net expense ratios are as

follows:

Primary Shares	0.95%
Service Shares	1.20%

Annual Shareholder Report

Board of Trustees and Trust Officers

Interested Trustees Background

Name Birth Date Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s)
J. Christopher Donahue* Birth Date: April 11, 1949 Trustee Indefinite Term Began serving: September 1993	Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd.
Thomas R. Donahue* Birth Date: October 20, 1958 Trustee Indefinite Term Began serving: May 2016	Principal Occupations: Director or Trustee of certain of the funds in the Federated Hermes Fund Family; Chief Financial Officer, Treasurer, Vice President and Assistant Secretary, Federated Hermes, Inc.; Chairman and Trustee, Federated Administrative Services; Chairman and Director, Federated Administrative Services, Inc.; Trustee and Treasurer, Federated Advisory Services Company; Director or Trustee and Treasurer, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, and Federated Investment Management Company; Director, MDTA LLC; Director, Executive Vice President and Assistant Secretary, Federated Securities Corp.; Director or Trustee and Chairman, Federated Services Company and Federated Shareholder Services Company; and Director and President, FII Holdings, Inc. Previous Positions: Director, Federated Hermes, Inc.; Assistant Secretary, Federated Investment Management Company, Federated Global Investment Management Company and Passport Research, LTD; Treasurer, Passport Research, LTD; Executive Vice President, Federated Securities Corp.; and Treasurer, FII Holdings, Inc.

INDEPENDENT Trustees Background

Name

Birth Date

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held, Previous Position(s) and Qualifications

John T. Collins

Birth Date: January 24, 1947

Trustee

Indefinite Term

Began serving: October 2013

Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund

Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired).

Other Directorships Held: Director, KLX Energy Services Holdings, Inc. (oilfield services); former Director of

KLX Corp. (aerospace).

Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions

throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm)

and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as

Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth

Israel Deaconess Medical Center (Harvard University Affiliate Hospital).

Annual Shareholder Report

Name Birth Date Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015	Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Lead Director, Member of the Audit and Nominating and Corporate Governance Committees, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association.
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor Emerita of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (natural gas). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as Associate General Secretary of the Diocese of Pittsburgh, a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green was appointed by the Supreme Court of Pennsylvania to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); Director, Catholic Charities, Pittsburgh; and Director CNX Resources Corporation (natural gas). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint Francis University.
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber); and Director, The Golisano Children’s Museum of Naples, Florida.
Madelyn A. Reilly Birth Date: February 2, 1956 Trustee Indefinite Term Began serving: November 2020	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors, Duquesne University (Retired). Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors and Director of Risk Management and Associate General Counsel, Duquesne University. Prior to her work at Duquesne University, Ms. Reilly served as Assistant General Counsel of Compliance and Enterprise Risk as well as Senior Counsel of Environment, Health and Safety, PPG Industries. Ms. Reilly currently serves as a member of the Board of Directors of UPMC Mercy Hospital.
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CONSOL Energy Inc. (now split into two separate publicly traded companies known as CONSOL Energy Inc. and CNX Resources Corp.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and CNX Gas Company; and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm).

Annual Shareholder Report

Name

Birth Date

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held, Previous Position(s) and Qualifications

John S. Walsh

Birth Date:

November 28, 1957

Trustee

Indefinite Term

Began serving: January 1999

Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc.

(manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of

portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc.

Other Directorships Held: None.

Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career.

Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors).

OFFICERS

Name Birth Date Address Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years and Previous Position(s)
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013	Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc.
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: January 2005	Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, Inc. in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc.
John B. Fisher Birth Date: May 16, 1956 President Officer since: November 2004	Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Director and Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, and Federated MDTA LLC; Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and CEO of Passport Research, Ltd.; Director and President, Technology, Federated Services Company.
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015	Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement.
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: November 2002	Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments.
Robert J. Ostrowski Birth Date: April 26, 1963 Chief Investment Officer Officer since: May 2004	Principal Occupations: Robert J. Ostrowski joined Federated Hermes, Inc. in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated Hermes’ taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund’s Adviser in 2009 and served as a Senior Vice President of the Fund’s Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University.

Annual Shareholder Report

Name

Birth Date

Address

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years

and Previous Position(s)

Deborah A. Cunningham

Birth Date:

September 15, 1959

Chief Investment Officer

Officer since: June 2012

Principal Occupations: Deborah A. Cunningham was named Chief Investment Officer of Federated Hermes’ money market

products in 2004. She joined Federated Hermes in 1981 and has been a Senior Portfolio Manager since 1997

and an Executive Vice President of the Fund’s Adviser since 2009. Ms. Cunningham has received the Chartered Financial

Analyst designation and holds an M.S.B.A. in Finance from Robert Morris College.

Annual Shareholder Report

Evaluation and Approval of Advisory Contract–May 2022

Federated Hermes Managed Volatility Fund II (the “Fund”)

At its meetings in May 2022 (the “May Meetings”), the Fund’s Board of Trustees (the “Board”), including those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the investment advisory contract between the Fund and Federated Global Investment Management Corp., Federated Investment Management Company and Federated Equity Management Company of Pennsylvania (the “Adviser”), under which they will serve as co-advisers to the Fund (the “Co-Advisers”), for an additional one-year term (the “Contract”). The Board’s determination to approve the continuation of the Contract reflects the exercise of its business judgment after considering all of the information and factors believed to be relevant and appropriate on whether to approve the continuation of the existing arrangements. The information, factors and conclusions that formed the basis for the Board’s approval are summarized below.

Information Received and Review Process

In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board considered information specifically prepared in connection with the approval of the continuation of the Contract that was presented at the May Meetings. In this regard, in the months preceding the May Meetings, the Board requested and reviewed written responses and supporting materials prepared by the Co-Advisers and their affiliates (collectively, “Federated Hermes”) in response to requests posed to Federated Hermes by independent legal counsel on behalf of the Independent Trustees encompassing a wide variety of topics, including those summarized below. The Board also considered such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the Contract, which included detailed information about the Fund and Federated Hermes furnished to the Board at its meetings throughout the year and in between regularly scheduled meetings on particular matters as the need arose.

The Board’s consideration of the Contract included review of materials and information covering the following matters, among others: the nature, quality and extent of the advisory and other services provided to the Fund by the Co-Advisers and their affiliates; Federated Hermes’ business and operations; the Co-Advisers’ investment philosophy, personnel and processes; the Fund’s investment objectives and strategies; the Fund’s short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, and relative to the Fund’s particular investment program and a group of its peer funds and/or its benchmark, as appropriate); the Fund’s fees and expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to a group of its peer funds), with due regard for contractual or voluntary expense limitations (if any); the financial condition of Federated Hermes; the Co-Advisers’ profitability with respect to the Fund; distribution and sales activity for the Fund; and the use and allocation of brokerage commissions derived from trading the Fund’s portfolio securities (if any).

Annual Shareholder Report

deems relevant to its consideration of the adviser’s services and fees. The Board noted that the Securities and Exchange Commission (“SEC”) disclosure requirements regarding the basis for a fund board’s approval of the fund’s investment advisory contract generally align with the factors listed above. The Board was guided by these factors in its review of the Contract to the extent it considered them to be appropriate and relevant, as discussed further below. Also, in weighing these factors, the Board considered the aggregate advisory fee paid by the Fund for the services of all Co-Advisers in addition to considering the allocation of that aggregate fee among the Co-Advisers and the rationale for that allocation. The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated Hermes on matters relating to the oversight of the other funds advised by Federated Hermes (each, a “Federated Hermes Fund” and, collectively, the “Federated Hermes Funds”).

In determining to approve the continuation of the Contracts, the members of the Board reviewed and evaluated information and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment. While individual members of the Board may have weighed certain factors differently, the Board’s determination to approve the continuation of the Contract was based on a comprehensive consideration of all information provided to the Board throughout the year and specifically with respect to the continuation of the Contract. The Board recognized that its evaluation process is evolutionary and that the factors considered and emphasis placed on relevant factors may change in recognition of changing circumstances in the registered fund marketplace. The Independent Trustees were assisted throughout the evaluation process by independent legal counsel. In connection with their deliberations at the May Meetings, the Independent Trustees met separately in executive session with their independent legal counsel and without management present to review the relevant materials and consider their responsibilities under applicable laws. In addition, senior management representatives of Federated Hermes also met with the Independent Trustees and their independent legal counsel to discuss the materials and presentations furnished to the Board at the May Meetings. The Board considered the approval of the Contract for the Fund as part of its consideration of agreements for funds across the family of Federated Hermes Funds, but its approvals were made on a fund-by-fund basis.

Nature, Extent and Quality of Services

The Board considered the nature, extent and quality of the services provided to the Fund by the Co-Advisers and the resources of Federated Hermes dedicated to the Fund. In this regard, the Board evaluated, among other things, the terms of the Contract and the range of services provided to the Fund by Federated Hermes. In particular, the Board considered the services provided by the Co-Advisers in the aggregate, to the extent that the Co-Advisers collaborate in the implementation of the Fund’s strategy, as well as separately, to the extent to which specific services provided by a Co-Adviser are distinguishable and subject to meaningful assessment. The Board considered the Co-Advisers’ personnel, investment philosophy and process, investment research capabilities and resources, trade operations capabilities, experience and performance track record. The Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and Federated Hermes’ ability and experience in attracting and retaining qualified personnel to service the Fund. The Board also considered the Co-Advisers’ ability to deliver competitive investment performance for the Fund when compared to the Fund’s Performance Peer Group (as defined below), which was deemed by the Board to be a useful indicator of how the Co-Advisers are executing the Fund’s investment program.

In addition, the Board considered the financial resources and overall reputation of Federated Hermes and its willingness to consider and make investments in personnel, infrastructure, technology, cybersecurity, business continuity planning and operational enhancements that are designed to benefit the Federated Hermes Funds. The Board noted the significant acquisition of Hermes Fund Managers Limited by Federated Hermes, which has deepened the organization’s investment management expertise and capabilities and expanded the investment process for all of the Federated Hermes Funds to have access to analytical resources related to environmental, social and governance (“ESG”) factors and issuer engagement on ESG matters. The Board considered Federated Hermes’ oversight of the securities lending program for the Federated Hermes Funds that engage in securities lending and noted the income earned by the Federated Hermes Funds that participate in such program. In addition, the Board considered the quality of Federated Hermes’ communications with the

Annual Shareholder Report

Board and responsiveness to Board inquiries and requests made from time to time with respect to the Fund and other Federated Hermes Funds. In this regard, the Board took into account Federated Hermes’ communications with the Board in light of the pandemic. The Board also considered that Federated Hermes is responsible for providing the Federated Hermes Funds’ officers.

Based on these considerations, the Board concluded that it was satisfied with the nature, extent, and quality of the services provided by the Co-Advisers to the Fund.

Fund Investment Performance

The Board considered the investment performance of the Fund. In evaluating the Fund’s investment performance, the Board considered performance results in light of the Fund’s investment objective, strategies and risks. The Board considered detailed investment reports on, and the Co-Advisers’ analysis of, the Fund’s performance over different time periods that were provided to the Board throughout the year and in connection with the May Meetings . These reports include, among other items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to one or more relevant categories or groups of peer funds and the Fund’s benchmark index, performance attribution information and commentary on the effect of market conditions.

The Board also reviewed comparative information regarding the performance of other registered funds in the category of peer funds selected by Morningstar, Inc. (the “Morningstar”), an independent fund ranking organization (the “Performance Peer Group”). The Board noted the CCO’s view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Co-Advisers in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases there may be differences in the funds’ objectives or investment management techniques, or the costs to implement the funds, even within the same Performance Peer Group. In this connection, the Board considered that the longevity and experience of the Fund’s portfolio management team and their extensive bottom-up approach to investing may limit the utility of comparisons to other equity mutual funds.

For the one-year, three-year and five-year periods ended December 31, 2021, the Fund’s performance was above the median of the Performance Peer Group.

Based on these considerations, the Board concluded that it had continued confidence in the Co-Advisers’ overall capabilities to manage the Fund.

Annual Shareholder Report

Fund Expenses

The Board also received and considered information about the fees charged by Federated Hermes for providing advisory services to other types of clients with investment strategies similar to those of the Federated Hermes Funds, including non-registered fund clients (such as institutional separate accounts) and third-party unaffiliated registered funds for which any of the Co-Advisers or their affiliates serve as sub-adviser. The Board noted the CCO’s conclusion that non-registered fund clients are inherently different products due to the following differences, among others: (i) different types of targeted investors; (ii) different applicable laws and regulations; (iii) different legal structures; (iv) different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; (v) the time spent by portfolio managers and their teams (among other personnel across various departments, including legal, compliance and risk management) in reviewing securities pricing and fund liquidity; (vi) different administrative responsibilities; (vii) different degrees of risk associated with management; and (viii) a variety of different costs. The Board also considered information regarding the differences in the nature of the services required for Federated Hermes to manage its proprietary registered fund business versus managing a discrete pool of assets as a sub-adviser to another institution’s registered fund, noting the CCO’s view that Federated Hermes generally performs significant additional services and assumes substantially greater risks in managing the Fund and other Federated Hermes Funds than in its role as sub-adviser to an unaffiliated third-party registered fund. The Board noted that the CCO did not consider the fees for providing advisory services to other types of clients to be determinative in judging the appropriateness of the Federated Hermes Funds’ advisory fees.

Profitability

Annual Shareholder Report

The Board considered that the Contract provides for payment of a single advisory fee by the Fund for all services provided by the Co-Advisers. The Board further considered that the Contract permits the Co-Advisers to allocate the advisory fee in a manner commensurate with the services they provide to the Fund. Throughout the year, as well as in connection with its May Meetings, the Board considered the fee allocation and the Co-Advisers’ analysis as to whether the allocation of fees among the Co-Advisers continued to be a reasonable proxy for and measurement of the level of resources and services provided by each Co-Adviser toward the management of the Fund.

Economies of Scale

The Board also considered reports on adviser-paid fees (commonly referred to as “revenue sharing”) that were provided to the Board throughout the year and in connection with the May Meetings. The Board considered that Federated Hermes and the CCO believe that this information should be viewed to determine if there was an incentive to either not apply breakpoints or to apply breakpoints, at higher levels and should not be viewed to evaluate the reasonableness of advisory fees. The Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any uniform methodology or pattern with respect to structuring fund advisory fees with breakpoints that serve to reduce the fees as a fund attains a certain size.

Other Benefits

Conclusions

Annual Shareholder Report

evaluation of the Federated Hermes Funds’ advisory and sub-advisory arrangements is a continuing and ongoing process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its ongoing oversight of the Federated Hermes Funds.

Annual Shareholder Report

Liquidity Risk Management Program–
Annual Evaluation of Adequacy and Effectiveness

In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Federated Hermes Insurance Series (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) for Federated Hermes Managed Volatility Fund II (the “Fund” and, collectively with the other non-money market open-end funds advised by Federated Hermes, the “Federated Hermes Funds”). The Program seeks to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Board of Trustees of the Trust (the “Board”) has approved the designation of each Federated Hermes Fund’s investment adviser as the administrator for the Program (the “Administrator”) with respect to that Fund. The Administrator, in turn, has delegated day-to-day responsibility for the administration of the Program to multiple Liquidity Risk Management Committees, which are comprised of representatives from certain divisions within Federated Hermes.

◾ confirmation that it was not necessary for the Fund to utilize, and the Fund did not utilize, alternative funding sources during the Period;

◾ the fact that the Fund invested no more than 15% of its assets in illiquid investments during the Period and the procedures for monitoring this limit;

◾ the fact that there were no liquidity events during the Period, that materially affected the Fund’s liquidity risk;

Annual Shareholder Report

Voting Proxies on Fund Portfolio Securities

Quarterly Portfolio Schedule

Annual Shareholder Report

Federated Hermes Managed Volatility Fund II

Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561

Federated Securities Corp., Distributor

CUSIP 313916108
CUSIP 313916744

G00845-01 (2/23)

Annual Shareholder Report

December 31, 2022

Share Class

Primary

Service

Federated Hermes Quality Bond Fund II

A Portfolio of Federated Hermes Insurance Series

Dear Valued Shareholder,

Thank you for investing with us. We hope you find this information useful and look forward to keeping you informed.

Sincerely,

John B. Fisher, President

Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee

CONTENTS

Management’s Discussion of Fund Performance	1
Portfolio of Investments Summary Table	4
Portfolio of Investments	5
Financial Highlights	16
Statement of Assets and Liabilities	18
Statement of Operations	19
Statement of Changes in Net Assets	20
Notes to Financial Statements	21
Report of Independent Registered Public Accounting Firm	27
Shareholder Expense Example	28
Board of Trustees and Trust Officers	29
Evaluation and Approval of Advisory Contract	33
Liquidity Risk Management Program– Annual Evaluation of Adequacy and Effectiveness	38
Voting Proxies on Fund Portfolio Securities	39
Quarterly Portfolio Schedule	39

Management’s Discussion of Fund Performance (unaudited)

The total return of Federated Hermes Quality Bond Fund II (the “Fund”), based on net asset value for the 12-month reporting period ended December 31, 2022, was -9.28% for the Primary Shares and -9.46% for the Service Shares. The total return of the Fund’s broad-based benchmark, the Bloomberg US Intermediate Credit Index (BICI),1 was -9.10% during the same period. The -9.28% total return of the Fund’s Primary Shares consisted of 3.60% of taxable dividends and -12.88% of depreciation in the net asset value of shares. The Fund’s total return for the most recently completed fiscal year reflected actual cash flows, transaction costs and expenses, which were not reflected in the total return of the BICI.

During the reporting period, the most significant factors affecting the Fund’s performance relative to the BICI were: (a) individual security selection; (b) the selection of various industries and sectors of the corporate bond market;2 and (c) overall interest rate sensitivity of the portfolio, as measured by the effective duration3 of the Fund.

The following discussion will focus on the performance of the Fund’s Primary Shares relative to the BICI.

market overview

The reporting period began with the transitory inflation argument intensifying, waning risk of virus variants and, early in the new year, a war in Ukraine. Debate about the Federal Reserve’s (the “Fed”) use of transitory to describe rising inflation over the course of 2021 was effectively rejected by the markets in March of 2022, when February’s Consumer Price Index report showed consumer prices accelerating at their fastest pace in 40 years. The increase, and the likelihood inflation would worsen in the months ahead in part on spiking oil and commodity prices due to Russia’s invasion of Ukraine, shifted market expectations from a potential of three rate hikes in 2022 to eight or more. After an initial quarter-point hike off its 0-0.25% federal funds target range in March, Chair Powell indicated the Fed would do whatever is necessary to slow inflation, even if it means slowing demand.

Chair Powell and the Fed proved true to their word, as they went on to raise the target range by 50 basis points in May, followed by larger and rarer 75 basis point hikes in each of the subsequent four policymaking Federal Open Market Committee (FOMC) meetings. The moves pushed the policy range up by 425 basis points to 4.25-4.50% in nine months, the fastest pace and largest magnitude of increases since the Chair Paul Volcker era (1979-1987). Additional smaller hikes are expected in early 2023 before a potential pause to allow the Fed to assess the impacts of its aggressive tightening. Throughout the reporting period, market hopes that the Fed may pause and pivot, i.e., begin to cut rates, were dashed by the pace of rate hikes and the hawkish rhetoric from FOMC members, including Chair Powell, at late August’s Jackson Hole, Wyoming, symposium speech, where he said the Fed learned its lesson from inflation of the 1970s and early 1980s when tightening cycles were terminated too soon, only to be reenacted after inflation subsequently reaccelerated. The message for markets: this cycle will be higher for longer.

For much of the reporting period, the aggressive tightening coincided with an economy that, while slowing from its 2021 pace, continued to reflect strength. The labor market in particular added jobs at an elevated pace, with 2022 monthly nonfarm payroll gains averaging 375,000 through December, which was slower than 2021’s rapid pace but historically strong. Along with leftover savings from pandemic stimulus, the job and subsequent wage and income gains helped keep consumer spending robust, particularly from a nominal perspective, as higher inflation cut into real spending. But as spring gave way to summer and fall, higher rates began to cut into rate-sensitive sectors, dramatically slowing housing as a doubling in the 30-year mortgage rate, unusually low inventories and unusually high home prices kept buyers away. By period end, pending home sales were declining at a record annualized pace and except for a brief period early in the pandemic, builder sentiment was at a 10-year low. Manufacturing also began to decelerate rapidly as consumers, having bulked up on goods during the stay-at-home pandemic, shifted spending to necessities and services such as travel, leisure and restaurants.

The combination of higher inflation and an extremely hawkish Fed made for a difficult environment for all risk assets, including bonds. The Bloomberg US Aggregate Bond Index at period end had its worst year ever, with 425 basis point increases in the policy rate driving up yields on the 2-year, 10-year and 30-year Treasuries, 370, 237 and 206 basis points, respectively, over the fiscal year. Credit spreads as measured by the Bloomberg US Intermediate Credit Index Option Adjusted Spread started the fiscal year at 61 basis points and peaked at 131 basis points in early October before rallying in the final weeks of the fiscal year on slower Fed hopes to close at 103 basis points.

security and SECTOR/INDUSTRY selection

During the reporting period, individual security selection was a slightly negative driver of performance relative to the BICI. Security selection was particularly strong in the Banking sector only to be largely offset by weaker selection in the Capital Goods sector. Specific credits that contributed the most to Fund performance included: Inter-American Development Bank, HSBC Holdings, Apple and Toyota Motor Corp. Specific credits that most negatively affected Fund performance included Wells Fargo, Smithfield Foods, Advance Auto Parts and Kroger Foods.

Annual Shareholder Report

The decision to overweight or underweight positions to specific corporate sectors and/or ratings quality was a negative contributor to performance relative to the BICI. Drivers of positive sector selection were an underweight position in the Banking sector, which performed worse than the index, and an overweight position in Energy, which outperformed. The Fund’s cash position was also a benefit to performance. These results were more than offset by a negative contribution to sector from an underweight position in Supranationals, which solidly outperformed the BICI during the year.

Duration, YIELD CURVE and DeRIVATIVEs MANAGEMENT

Duration was the driver of positive performance for the reporting period. As noted above, the aggressive rate moves throughout the fiscal year had a significant impact on interest rates across the yield curve.4 The Fund was short duration relative to the BICI in the first half of the reporting period, shifting to a neutral-to-slightly long position in the latter third of the fiscal year. The magnitude of the short duration position varied throughout the first half, with the magnitude being the largest at the beginning of the period. For the year on average, the Fund was 97% of the interest rate-sensitivity of the BICI, which benefitted performance as interest rates rose.

Derivatives,5 which were U.S. Treasury futures that were used to adjust duration targets, had a positive effect on Fund performance during the reporting period.

Please see the footnotes to the line graph under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the BICI.

Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices.

The yield curve is a graph showing the comparative yields of securities in a particular class according to maturity. Securities on the long end of the yield curve have longer maturities.

The Fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments.

Annual Shareholder Report

FUND PERFORMANCE AND GROWTH OF A $10,000 INVESTMENT

The graph below illustrates the hypothetical investment of $10,0001 in the Federated Hermes Quality Bond Fund II (the “Fund”) from December 31, 2012 to December 31, 2022, compared to the Bloomberg US Intermediate Credit Index (BICI).2 The Average Annual Total Returns table below shows returns for each class averaged over the stated periods.

Growth of a $10,000 Investment

Growth of $10,000 as of December 31, 2022

The Fund offers multiple share classes whose performance may be greater than or less than its other share class(es) due to differences in sales charges and expenses.

Average Annual Total Returns for the Period Ended 12/31/2022

	1 Year	5 Years	10 Years
Primary Shares	-9.28%	1.02%	1.75%
Service Shares	-9.46%	0.79%	1.50%
BICI	-9.10%	1.08%	1.76%

Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance of a variable investment option changes over time and current performance may be lower or higher than what is stated. For current to the most recent month-end performance, contact your insurance company. The performance information presented does not include the charges and expenses imposed by the insurance company under the variable insurance product contract. The inclusion of such charges would lower performance. Please refer to the variable insurance product prospectus for a complete listing of these expenses. Fund shares are available exclusively as a funding vehicle for life insurance companies writing variable life insurance policies and variable annuity contracts. Variable investment options are not obligations of or guaranteed by any bank and are not federally insured.

The Fund’s performance assumes the reinvestment of all dividends and distributions. The BICI has been adjusted to reflect reinvestment of dividends on securities in the index.

The BICI measures the investment-grade, U.S. dollar-denominated, fixed-rate, taxable corporate and government-related bond markets. The index only includes securities with maturity between one and ten years. It is composed of the Bloomberg US Corporate Index and a non-corporate component that includes foreign agencies, sovereigns, supranationals and local authorities. The index is not adjusted to reflect sales loads, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund’s performance. The index is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.

Annual Shareholder Report

Portfolio of Investments Summary Table (unaudited)

At December 31, 2022, the Fund’s portfolio composition1 was as follows:

Security Type	Percentage of Total Net Assets
Corporate Bonds	97.3%
Mortgage-Backed Securities2,3	0.0%
Securities Lending Collateral4	1.1%
Cash Equivalents5	1.8%
Derivative Contracts3,6	0.0%
Other Assets and Liabilities—Net7	(0.2)%
TOTAL	100%

1	See the Fund’s Prospectus and Statement of Additional Information for a description of these security types.
2	For purposes of this table, mortgage-backed securities include mortgage-backed securities guaranteed by Government Sponsored Entities.
3	Represents less than 0.1%.
4	Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements.
5	Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing cash collateral for securities lending.
6	Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund’s performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract’s significance to the portfolio. More complete information regarding the Fund’s direct investments in derivative contracts, including unrealized appreciation (depreciation), value and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report.
7	Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities.

Annual Shareholder Report

Portfolio of Investments

December 31, 2022

Principal Amount			Value
		CORPORATE BONDS—97.3%
		Basic Industry - Chemicals—0.3%
$ 500,000		RPM International, Inc., Sr. Unsecd. Note, 4.550%, 3/1/2029	$ 463,947
		Basic Industry - Metals & Mining—0.5%
350,000	1	Anglo American Capital PLC, Sr. Unsecd. Note, 144A, 2.250%, 3/17/2028	294,920
200,000		Anglo American Capital PLC, Sr. Unsecd. Note, 144A, 2.875%, 3/17/2031	163,784
350,000		Glencore Funding LLC, Sr. Unsecd. Note, 144A, 1.625%, 4/27/2026	308,788
		TOTAL	767,492
		Capital Goods - Aerospace & Defense—3.3%
600,000		Airbus Group SE, Sr. Unsecd. Note, 144A, 3.150%, 4/10/2027	558,255
280,000		BAE Systems Holdings, Inc., Sr. Unsecd. Note, 144A, 3.850%, 12/15/2025	270,259
200,000		BAE Systems PLC, Sr. Unsecd. Note, 144A, 3.400%, 4/15/2030	176,946
450,000	1	Boeing Co., Sr. Unsecd. Note, 1.875%, 6/15/2023	443,246
600,000		Boeing Co., Sr. Unsecd. Note, 2.700%, 2/1/2027	542,451
275,000		General Dynamics Corp., Sr. Unsecd. Note, 3.250%, 4/1/2025	266,700
410,000		Huntington Ingalls Industries, Inc., Sr. Unsecd. Note, 3.483%, 12/1/2027	372,799
145,000		Huntington Ingalls Industries, Inc., Sr. Unsecd. Note, Series WI, 3.844%, 5/1/2025	140,228
600,000		Leidos, Inc., Sr. Unsecd. Note, Series WI, 2.300%, 2/15/2031	461,001
335,000		Leidos, Inc., Sr. Unsecd. Note, Series WI, 3.625%, 5/15/2025	322,044
800,000		Raytheon Technologies Corp., Sr. Unsecd. Note, 4.125%, 11/16/2028	767,327
460,000	2	Textron Financial Corp., Jr. Sub. Note, 144A, 6.341% (3-month USLIBOR +1.735%), 2/15/2042	330,050
295,000		Textron, Inc., Sr. Unsecd. Note, 4.300%, 3/1/2024	291,123
		TOTAL	4,942,429
		Capital Goods - Building Materials—1.1%
415,000		Allegion PLC, Sr. Unsecd. Note, 3.500%, 10/1/2029	358,482
800,000		Allegion US Holdings Co., Inc., Sr. Unsecd. Note, 3.200%, 10/1/2024	769,839
300,000		Masco Corp., Sr. Unsecd. Note, 2.000%, 10/1/2030	233,263
300,000		Masco Corp., Sr. Unsecd. Note, 3.500%, 11/15/2027	278,384
		TOTAL	1,639,968
		Capital Goods - Construction Machinery—1.7%
500,000		Ashtead Capital, Inc., Sr. Unsecd. Note, 144A, 1.500%, 8/12/2026	427,304
600,000		CNH Industrial Capital America LLC, Sr. Unsecd. Note, 1.450%, 7/15/2026	529,576
595,000		CNH Industrial NV, Sr. Unsecd. Note, Series MTN, 3.850%, 11/15/2027	558,319
500,000		John Deere Capital Corp., Sr. Unsecd. Note, 3.400%, 6/6/2025	485,523
510,000		Weir Group PLC/The, Sr. Unsecd. Note, 144A, 2.200%, 5/13/2026	452,888
		TOTAL	2,453,610
		Capital Goods - Diversified Manufacturing—3.5%
700,000		GE Capital Funding LLC, Sr. Unsecd. Note, 4.400%, 5/15/2030	645,044
205,000		Honeywell International, Inc., Sr. Unsecd. Note, 1.350%, 6/1/2025	189,694
400,000		Honeywell International, Inc., Sr. Unsecd. Note, 1.950%, 6/1/2030	330,995
555,000		Hubbell, Inc., Sr. Unsecd. Note, 2.300%, 3/15/2031	442,428
585,000		Lennox International, Inc., Sr. Unsecd. Note, 1.700%, 8/1/2027	502,453
1,000,000		Lennox International, Inc., Sr. Unsecd. Note, 3.000%, 11/15/2023	982,507
430,000		Roper Technologies, Inc., Sr. Unsecd. Note, 2.000%, 6/30/2030	345,571
250,000		Roper Technologies, Inc., Sr. Unsecd. Note, 3.650%, 9/15/2023	247,403
875,000		Roper Technologies, Inc., Sr. Unsecd. Note, 3.800%, 12/15/2026	839,383
500,000		Vontier Corp., Sr. Unsecd. Note, 2.400%, 4/1/2028	401,348
235,000		Wabtec Corp., Sr. Unsecd. Note, 3.200%, 6/15/2025	221,459
		TOTAL	5,148,285

Annual Shareholder Report

Principal Amount			Value
		CORPORATE BONDS—continued
		Capital Goods - Packaging—0.3%
$ 500,000		WestRock Co., Sr. Unsecd. Note, Series WI, 3.750%, 3/15/2025	$ 484,001
		Communications - Cable & Satellite—2.2%
1,000,000		CCO Safari II LLC, 4.908%, 7/23/2025	981,068
900,000		Comcast Corp., Sr. Unsecd. Note, 2.350%, 1/15/2027	819,026
300,000		Comcast Corp., Sr. Unsecd. Note, 3.300%, 2/1/2027	283,149
750,000		Comcast Corp., Sr. Unsecd. Note, 3.950%, 10/15/2025	735,282
400,000		Time Warner Cable, Inc., Sr. Unsecd. Note, 8.375%, 3/15/2023	402,531
		TOTAL	3,221,056
		Communications - Media & Entertainment—1.5%
300,000		British Sky Broadcasting Group PLC, Sr. Unsecd. Note, 144A, 3.750%, 9/16/2024	293,035
220,000		Meta Platforms, Inc., Sr. Unsecd. Note, 3.500%, 8/15/2027	205,412
250,000		Meta Platforms, Inc., Sr. Unsecd. Note, 3.850%, 8/15/2032	220,702
500,000		Netflix, Inc., Sr. Unsecd. Note, 4.375%, 11/15/2026	482,110
310,000		Paramount Global, Sr. Unsecd. Note, 4.200%, 5/19/2032	254,510
805,000		S&P Global, Inc., Sr. Unsecd. Note, 144A, 2.900%, 3/1/2032	688,871
		TOTAL	2,144,640
		Communications - Telecom Wireless—1.2%
500,000		American Tower Corp., Sr. Unsecd. Note, 1.450%, 9/15/2026	436,912
180,000		Crown Castle Inc., Sr. Unsecd. Note, 2.250%, 1/15/2031	144,831
450,000		T-Mobile USA, Inc., Series WI, 3.750%, 4/15/2027	424,540
450,000		T-Mobile USA, Inc., Series WI, 3.875%, 4/15/2030	408,672
395,000		Vodafone Group PLC, Sr. Unsecd. Note, 4.125%, 5/30/2025	389,077
		TOTAL	1,804,032
		Communications - Telecom Wirelines—1.6%
300,000		AT&T, Inc., Sr. Unsecd. Note, 2.300%, 6/1/2027	267,274
877,000		AT&T, Inc., Sr. Unsecd. Note, 2.550%, 12/1/2033	676,553
250,000		Telefonica SA, Company Guarantee, 7.045%, 6/20/2036	257,246
300,000		Verizon Communications, Inc., Sr. Unsecd. Note, 0.850%, 11/20/2025	267,866
800,000		Verizon Communications, Inc., Sr. Unsecd. Note, 1.750%, 1/20/2031	622,556
110,000		Verizon Communications, Inc., Sr. Unsecd. Note, 2.550%, 3/21/2031	90,731
175,000		Verizon Communications, Inc., Sr. Unsecd. Note, 3.150%, 3/22/2030	154,728
		TOTAL	2,336,954
		Consumer Cyclical - Automotive—4.1%
605,000		Daimler Trucks Financial NA, Sr. Unsecd. Note, 144A, 2.000%, 12/14/2026	533,886
250,000	1	Ford Motor Co., Sr. Unsecd. Note, 4.346%, 12/8/2026	237,635
250,000	1	General Motors Co., Sr. Unsecd. Note, 4.200%, 10/1/2027	235,496
250,000		General Motors Co., Sr. Unsecd. Note, 6.125%, 10/1/2025	254,686
500,000		General Motors Financial Co., Inc., 1.250%, 1/8/2026	440,819
500,000		General Motors Financial Co., Inc., Sr. Unsecd. Note, 2.400%, 4/10/2028	421,380
300,000		General Motors Financial Co., Inc., Sr. Unsecd. Note, 4.000%, 10/6/2026	282,781
1,000,000		Mercedes-Benz Finance NA LLC, Sr. Unsecd. Note, 144A, 3.250%, 8/1/2024	970,494
680,000		Nissan Motor Acceptance Company LLC., Sr. Unsecd. Note, 144A, 1.125%, 9/16/2024	620,042
200,000		Stellantis Finance US, Inc., Sr. Unsecd. Note, 144A, 1.711%, 1/29/2027	171,887
500,000		Toyota Motor Credit Corp., Sr. Unsecd. Note, 3.950%, 6/30/2025	489,957
650,000		Volkswagen Group of America Finance LLC, Sr. Unsecd. Note, 144A, 0.875%, 11/22/2023	625,452
500,000		Volkswagen Group of America Finance LLC, Sr. Unsecd. Note, 144A, 1.250%, 11/24/2025	446,242
300,000		Volkswagen Group of America Finance LLC, Sr. Unsecd. Note, 144A, 4.250%, 11/13/2023	297,168
		TOTAL	6,027,925
		Consumer Cyclical - Leisure—0.5%
355,000		Warnermedia Holdings, Inc., Sr. Unsecd. Note, 144A, 3.755%, 3/15/2027	320,194

Annual Shareholder Report

Principal Amount			Value
		CORPORATE BONDS—continued
		Consumer Cyclical - Leisure—continued
$ 500,000		Warnermedia Holdings, Inc., Sr. Unsecd. Note, 144A, 4.054%, 3/15/2029	$ 433,520
		TOTAL	753,714
		Consumer Cyclical - Retailers—3.8%
1,000,000		Advance Auto Parts, Inc., Sr. Unsecd. Note, Series WI, 3.900%, 4/15/2030	878,717
470,000		Alimentation Couche-Tard, Inc., Sr. Unsecd. Note, 144A, 2.950%, 1/25/2030	399,334
265,000		AutoNation, Inc., Sr. Unsecd. Note, 4.750%, 6/1/2030	237,035
275,000		Costco Wholesale Corp., Sr. Unsecd. Note, 1.375%, 6/20/2027	241,285
1,290,000		CVS Health Corp., Sr. Unsecd. Note, 4.300%, 3/25/2028	1,250,148
200,000		Dollar General Corp., Sr. Unsecd. Note, 4.150%, 11/1/2025	195,786
500,000		Dollar Tree, Inc., Sr. Unsecd. Note, 4.000%, 5/15/2025	488,587
800,000		Home Depot, Inc., Sr. Unsecd. Note, 2.125%, 9/15/2026	733,114
410,000		Home Depot, Inc., Sr. Unsecd. Note, 2.875%, 4/15/2027	383,044
320,000		O’Reilly Automotive, Inc., Sr. Unsecd. Note, 1.750%, 3/15/2031	249,156
120,000		O’Reilly Automotive, Inc., Sr. Unsecd. Note, 4.200%, 4/1/2030	113,549
580,000		Tractor Supply Co., Sr. Unsecd. Note, 1.750%, 11/1/2030	446,855
		TOTAL	5,616,610
		Consumer Cyclical - Services—2.3%
200,000	1	Alibaba Group Holding Ltd., Sr. Unsecd. Note, 2.125%, 2/9/2031	159,714
500,000		Alibaba Group Holding Ltd., Sr. Unsecd. Note, 3.400%, 12/6/2027	460,786
300,000		Amazon.com, Inc., Sr. Unsecd. Note, 3.000%, 4/13/2025	289,747
170,000		Amazon.com, Inc., Sr. Unsecd. Note, 3.150%, 8/22/2027	160,027
760,000		Amazon.com, Inc., Sr. Unsecd. Note, 3.300%, 4/13/2027	722,426
400,000		Booking Holdings, Inc., Sr. Unsecd. Note, 4.625%, 4/13/2030	387,294
750,000		Cintas Corp. No. 2, Sr. Unsecd. Note, 3.700%, 4/1/2027	724,149
54,000		Expedia Group, Inc., Sr. Unsecd. Note, Series WI, 2.950%, 3/15/2031	43,551
530,000		Visa, Inc., Sr. Unsecd. Note, 3.150%, 12/14/2025	511,550
		TOTAL	3,459,244
		Consumer Non-Cyclical - Food/Beverage—5.4%
750,000		Anheuser-Busch InBev Worldwide, Inc., Sr. Unsecd. Note, 4.750%, 1/23/2029	741,927
1,015,000		Coca-Cola Femsa S.A.B. de C.V., Sr. Unsecd. Note, 2.750%, 1/22/2030	876,554
250,000		Constellation Brands, Inc., Sr. Unsecd. Note, 4.350%, 5/9/2027	243,847
750,000		Constellation Brands, Inc., Sr. Unsecd. Note, 4.650%, 11/15/2028	726,942
380,000		Flowers Foods, Inc., Sr. Unsecd. Note, 3.500%, 10/1/2026	356,213
500,000		Grupo Bimbo S.A.B. de CV, Sr. Unsecd. Note, 144A, 3.875%, 6/27/2024	489,952
915,000		International Flavors & Fragrances, Inc., Sr. Unsecd. Note, 144A, 1.230%, 10/1/2025	809,133
450,000		Keurig Dr Pepper, Inc., Sr. Unsecd. Note, 4.417%, 5/25/2025	445,314
417,000		Kraft Heinz Foods Co., Sr. Unsecd. Note, 3.000%, 6/1/2026	390,756
900,000		Kraft Heinz Foods Co., Sr. Unsecd. Note, Series WI, 3.875%, 5/15/2027	861,277
300,000		PepsiCo, Inc., Sr. Unsecd. Note, 2.625%, 7/29/2029	265,232
300,000		Smithfield Foods, Inc., Sr. Unsecd. Note, 144A, 2.625%, 9/13/2031	215,305
510,000		Smithfield Foods, Inc., Sr. Unsecd. Note, 144A, 3.000%, 10/15/2030	389,386
60,000		Smithfield Foods, Inc., Sr. Unsecd. Note, 144A, 4.250%, 2/1/2027	55,338
450,000		Sysco Corp., Sr. Unsecd. Note, 3.250%, 7/15/2027	416,640
700,000		Sysco Corp., Sr. Unsecd. Note, 3.300%, 7/15/2026	661,199
		TOTAL	7,945,015
		Consumer Non-Cyclical - Health Care—1.5%
250,000		Becton Dickinson & Co., Sr. Unsecd. Note, 3.700%, 6/6/2027	236,602
203,000		Becton Dickinson & Co., Sr. Unsecd. Note, 3.734%, 12/15/2024	198,108
235,000		DH Europe Finance II S.a.r.l., Sr. Unsecd. Note, 2.600%, 11/15/2029	206,393
470,000		DH Europe Finance II S.a.r.l., Sr. Unsecd. Note, Series 5YR, 2.200%, 11/15/2024	448,156
300,000		GE Healthcare Holding LLC, Sr. Unsecd. Note, 144A, 5.857%, 3/15/2030	307,743

Annual Shareholder Report

Principal Amount			Value
		CORPORATE BONDS—continued
		Consumer Non-Cyclical - Health Care—continued
$ 300,000		GE Healthcare Holding LLC, Sr. Unsecd. Note, 144A, 5.905%, 11/22/2032	$ 311,812
85,000		HCA, Inc., Sec. Fac. Bond, 144A, 3.125%, 3/15/2027	77,404
450,000		PerkinElmer, Inc., Sr. Unsecd. Note, 3.300%, 9/15/2029	392,630
		TOTAL	2,178,848
		Consumer Non-Cyclical - Pharmaceuticals—3.9%
500,000		Abbott Laboratories, Sr. Unsecd. Note, 1.150%, 1/30/2028	425,808
453,000		Abbott Laboratories, Sr. Unsecd. Note, 3.750%, 11/30/2026	441,669
455,000		AbbVie, Inc., Sr. Unsecd. Note, 3.200%, 11/21/2029	411,207
300,000		AbbVie, Inc., Sr. Unsecd. Note, 3.600%, 5/14/2025	291,015
67,000		AbbVie, Inc., Sr. Unsecd. Note, 4.750%, 3/15/2045	60,499
235,000		AstraZeneca PLC, Sr. Unsecd. Note, 0.700%, 4/8/2026	206,866
600,000		AstraZeneca PLC, Sr. Unsecd. Note, 3.125%, 6/12/2027	564,348
1,000,000		Bayer US Finance II LLC, Sr. Unsecd. Note, 144A, 3.875%, 12/15/2023	985,903
200,000		Bayer US Finance II LLC, Sr. Unsecd. Note, 144A, 4.250%, 12/15/2025	194,006
235,000		Biogen, Inc., Sr. Unsecd. Note, 2.250%, 5/1/2030	191,976
600,000		Biogen, Inc., Sr. Unsecd. Note, 4.050%, 9/15/2025	583,862
152,000		Bristol-Myers Squibb Co., Sr. Unsecd. Note, Series WI, 5.000%, 8/15/2045	148,064
220,000		Gilead Sciences, Inc., Sr. Unsecd. Note, 3.650%, 3/1/2026	212,355
670,000		Regeneron Pharmaceuticals, Inc., Sr. Unsecd. Note, 1.750%, 9/15/2030	518,994
240,000		Royalty Pharma PLC, Sr. Unsecd. Note, Series WI, 1.200%, 9/2/2025	215,015
300,000		Teva Pharmaceutical Finance Netherlands III BV, Sr. Unsecd. Note, 3.150%, 10/1/2026	262,959
		TOTAL	5,714,546
		Consumer Non-Cyclical - Supermarkets—0.5%
610,000		Kroger Co., Bond, 6.900%, 4/15/2038	670,856
		Consumer Non-Cyclical - Tobacco—1.5%
350,000		Altria Group, Inc., Sr. Unsecd. Note, 4.400%, 2/14/2026	343,045
250,000		BAT Capital Corp., Sr. Unsecd. Note, 2.259%, 3/25/2028	207,895
300,000		BAT Capital Corp., Sr. Unsecd. Note, 7.750%, 10/19/2032	323,590
290,000		BAT International Finance PLC, Sr. Unsecd. Note, 144A, 3.950%, 6/15/2025	278,776
300,000		Philip Morris International, Inc., Sr. Unsecd. Note, 5.125%, 11/17/2027	302,722
140,000		Philip Morris International, Inc., Sr. Unsecd. Note, 5.625%, 11/17/2029	142,356
300,000		Reynolds American, Inc., Sr. Unsecd. Note, 4.450%, 6/12/2025	293,756
360,000		Reynolds American, Inc., Sr. Unsecd. Note, 7.000%, 8/4/2041	357,485
		TOTAL	2,249,625
		Energy - Independent—2.4%
215,000		Cimarex Energy Co., Sr. Unsecd. Note, 4.375%, 3/15/2029	167,886
500,000		Coterra Energy, Inc., Sr. Unsecd. Note, Series WI, 3.900%, 5/15/2027	467,628
160,000		Diamondback Energy, Inc., Sr. Unsecd. Note, 6.250%, 3/15/2033	162,894
700,000		Hess Corp., Sr. Unsecd. Note, 4.300%, 4/1/2027	669,602
300,000		Marathon Oil Corp., Sr. Unsecd. Note, 4.400%, 7/15/2027	286,975
100,000		Occidental Petroleum Corp., Sr. Unsecd. Note, 2.900%, 8/15/2024	95,941
1,000,000		Occidental Petroleum Corp., Sr. Unsecd. Note, 3.450%, 7/15/2024	975,435
325,000		Pioneer Natural Resources, Inc., Sr. Unsecd. Note, 1.125%, 1/15/2026	290,027
550,000		Pioneer Natural Resources, Inc., Sr. Unsecd. Note, 2.150%, 1/15/2031	436,017
		TOTAL	3,552,405
		Energy - Integrated—2.0%
500,000		BP Capital Markets America, Inc., Sr. Unsecd. Note, 3.796%, 9/21/2025	491,455
300,000	1	Cenovus Energy, Inc., Sr. Unsecd. Note, 2.650%, 1/15/2032	240,302
500,000	1	Cenovus Energy, Inc., Sr. Unsecd. Note, 4.250%, 4/15/2027	478,655
500,000		Chevron Corp., Sr. Unsecd. Note, 1.554%, 5/11/2025	465,569
530,000		CNPC Hong Kong Overseas Capital Ltd., Company Guarantee, 144A, 5.950%, 4/28/2041	546,653

Annual Shareholder Report

Principal Amount			Value
		CORPORATE BONDS—continued
		Energy - Integrated—continued
$ 240,000		Husky Energy, Inc., Sr. Unsecd. Note, 4.400%, 4/15/2029	$ 222,190
175,000		Petroleos Mexicanos, Sr. Unsecd. Note, 4.875%, 1/18/2024	171,348
325,000		Shell International Finance B.V., Sr. Unsecd. Note, 2.875%, 5/10/2026	306,454
		TOTAL	2,922,626
		Energy - Midstream—2.5%
265,000		Boardwalk Pipeline Partners LP, Sr. Unsecd. Note, 3.400%, 2/15/2031	222,289
500,000		Boardwalk Pipeline Partners LP, Sr. Unsecd. Note, 4.800%, 5/3/2029	471,680
205,000		Eastern Energy Gas Holdings, Sr. Unsecd. Note, Series A, 2.500%, 11/15/2024	195,420
150,000		Energy Transfer LP, Sr. Unsecd. Note, 5.550%, 2/15/2028	148,984
300,000		Energy Transfer Operating, Sr. Unsecd. Note, 3.750%, 5/15/2030	265,198
565,000		Energy Transfer Partners LP, Sr. Unsecd. Note, 4.900%, 2/1/2024	562,032
290,000		MPLX LP, Sr. Unsecd. Note, 1.750%, 3/1/2026	258,821
395,000		MPLX LP, Sr. Unsecd. Note, 4.125%, 3/1/2027	373,667
345,000		ONEOK, Inc., Sr. Unsecd. Note, 4.000%, 7/13/2027	325,138
120,000		ONEOK, Inc., Sr. Unsecd. Note, 6.100%, 11/15/2032	120,362
140,000		Targa Resources, Inc., Sr. Unsecd. Note, 4.200%, 2/1/2033	120,849
600,000		TC Pipelines, LP, Sr. Unsecd. Note, 3.900%, 5/25/2027	566,333
		TOTAL	3,630,773
		Energy - Oil Field Services—0.2%
300,000		Schlumberger Holdings Corp., Sr. Unsecd. Note, 144A, 4.000%, 12/21/2025	291,522
		Energy - Refining—0.9%
600,000		Marathon Petroleum Corp., Sr. Unsecd. Note, 4.700%, 5/1/2025	591,362
185,000		Phillips 66, Sr. Unsecd. Note, 1.300%, 2/15/2026	165,941
335,000		Valero Energy Corp., Sr. Unsecd. Note, 6.625%, 6/15/2037	357,888
215,000		Valero Energy Corp., Sr. Unsecd. Note, 7.500%, 4/15/2032	242,346
		TOTAL	1,357,537
		Financial Institution - Banking—22.9%
745,000		American Express Co., Sr. Unsecd. Note, 3.375%, 5/3/2024	730,222
1,085,000		Associated Banc-Corp., Sub. Note, 4.250%, 1/15/2025	1,056,076
700,000		Bank of America Corp., Sr. Unsecd. Note, 1.734%, 7/22/2027	614,142
1,900,000		Bank of America Corp., Sr. Unsecd. Note, 2.592%, 4/29/2031	1,551,601
1,250,000		Bank of America Corp., Sr. Unsecd. Note, 3.705%, 4/24/2028	1,158,625
500,000		Bank of America Corp., Sr. Unsecd. Note, Series MTN, 3.248%, 10/21/2027	462,501
500,000		Bank of America Corp., Sr. Unsecd. Note, Series MTN, 4.271%, 7/23/2029	467,194
250,000		Bank of New York Mellon Corp., Sr. Unsecd. Note, 2.050%, 1/26/2027	224,841
300,000	1	Bank of New York Mellon Corp., Sr. Unsecd. Note, 3.350%, 4/25/2025	290,682
550,000		Bank of New York Mellon Corp., Sr. Unsecd. Note, Series MTN, 3.250%, 9/11/2024	535,228
300,000		Bank of New York Mellon Corp., Sr. Unsecd. Note, Series MTN, 3.992%, 6/13/2028	287,469
500,000		Citigroup, Inc., 4.125%, 7/25/2028	466,319
250,000		Citigroup, Inc., Sr. Unsecd. Note, 1.122%, 1/28/2027	218,138
1,400,000		Citigroup, Inc., Sr. Unsecd. Note, 2.572%, 6/3/2031	1,135,395
480,000		Citigroup, Inc., Sr. Unsecd. Note, 3.400%, 5/1/2026	455,537
500,000		Citigroup, Inc., Sr. Unsecd. Note, 3.700%, 1/12/2026	481,526
500,000		Citigroup, Inc., Sr. Unsecd. Note, 4.075%, 4/23/2029	460,980
250,000		Citigroup, Inc., Sr. Unsecd. Note, 4.658%, 5/24/2028	242,335
90,000		Citizens Financial Group, Inc., Sr. Unsecd. Note, 2.500%, 2/6/2030	73,370
300,000		Comerica, Inc., 3.800%, 7/22/2026	286,825
500,000		Compass Bank, Birmingham, Sub. Note, Series BKNT, 3.875%, 4/10/2025	486,711
140,000	1	Fifth Third Bancorp, Sr. Unsecd. Note, 2.375%, 1/28/2025	132,856
500,000		Fifth Third Bancorp, Sr. Unsecd. Note, 3.650%, 1/25/2024	492,650
250,000		Fifth Third Bank, Sr. Unsecd. Note, Series BKNT, 2.250%, 2/1/2027	225,415

Annual Shareholder Report

Principal Amount		Value
	CORPORATE BONDS—continued
	Financial Institution - Banking—continued
$ 685,000	FNB Corp. (PA), Sr. Unsecd. Note, 2.200%, 2/24/2023	$ 681,601
300,000	FNB Corp. (PA), Sr. Unsecd. Note, 5.150%, 8/25/2025	296,729
200,000	Goldman Sachs Group, Inc., Sr. Unsecd. Note, 1.431%, 3/9/2027	175,604
750,000	Goldman Sachs Group, Inc., Sr. Unsecd. Note, 1.992%, 1/27/2032	573,077
250,000	Goldman Sachs Group, Inc., Sr. Unsecd. Note, 2.640%, 2/24/2028	222,953
1,250,000	Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.500%, 11/16/2026	1,173,466
500,000	Goldman Sachs Group, Inc., Sr. Unsecd. Note, 4.223%, 5/1/2029	466,719
500,000	Goldman Sachs Group, Inc., Sub. Note, 4.250%, 10/21/2025	488,503
1,000,000	HSBC USA, Inc., Sr. Unsecd. Note, 3.500%, 6/23/2024	975,437
240,000	Huntington Bancshares, Inc., Sr. Unsecd. Note, 2.550%, 2/4/2030	197,931
1,000,000	JPMorgan Chase & Co., Sr. Unsecd. Note, 1.045%, 11/19/2026	883,054
500,000	JPMorgan Chase & Co., Sr. Unsecd. Note, 2.545%, 11/8/2032	396,476
500,000	JPMorgan Chase & Co., Sr. Unsecd. Note, 2.580%, 4/22/2032	401,728
500,000	JPMorgan Chase & Co., Sr. Unsecd. Note, 3.782%, 2/1/2028	467,870
500,000	JPMorgan Chase & Co., Sr. Unsecd. Note, 3.845%, 6/14/2025	489,143
500,000	JPMorgan Chase & Co., Sr. Unsecd. Note, 4.323%, 4/26/2028	478,265
500,000	JPMorgan Chase & Co., Sr. Unsecd. Note, 4.452%, 12/5/2029	470,680
500,000	JPMorgan Chase & Co., Sub. Note, 3.875%, 9/10/2024	489,763
410,000	M&T Bank Corp., Sr. Unsecd. Note, 4.553%, 8/16/2028	400,353
1,000,000	Morgan Stanley, Sr. Unsecd. Note, 0.985%, 12/10/2026	877,248
1,000,000	Morgan Stanley, Sr. Unsecd. Note, 3.625%, 1/20/2027	944,471
500,000	Morgan Stanley, Sr. Unsecd. Note, 6.342%, 10/18/2033	525,502
500,000	Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 2.239%, 7/21/2032	384,794
165,000	Morgan Stanley, Sr. Unsecd. Note, Series GMTN, 2.699%, 1/22/2031	136,702
500,000	PNC Financial Services Group, Inc., Sr. Unsecd. Note, 3.150%, 5/19/2027	467,665
330,000	Regions Financial Corp., Sr. Unsecd. Note, 2.250%, 5/18/2025	308,680
500,000	State Street Corp., Sr. Unsecd. Note, 2.203%, 2/7/2028	449,863
700,000	State Street Corp., Sr. Unsecd. Note, 3.300%, 12/16/2024	683,689
65,000	State Street Corp., Sr. Unsecd. Note, 4.421%, 5/13/2033	61,702
300,000	Synovus Financial Corp., Sr. Unsecd. Note, 5.200%, 8/11/2025	296,250
475,000	Truist Bank, Sr. Unsecd. Note, Series BKNT, 2.150%, 12/6/2024	451,927
200,000	Truist Bank, Sub. Note, Series BKNT, 3.300%, 5/15/2026	187,321
500,000	Truist Financial Corp., Sr. Unsecd. Note, Series MTN, 1.125%, 8/3/2027	422,264
500,000	Truist Financial Corp., Sr. Unsecd. Note, Series MTN, 4.123%, 6/6/2028	479,332
750,000	US Bancorp, Sr. Unsecd. Note, Series MTN, 2.215%, 1/27/2028	675,217
750,000	Wells Fargo & Co., Sr. Unsecd. Note, 2.188%, 4/30/2026	698,639
2,120,000	Wells Fargo & Co., Sr. Unsecd. Note, 3.000%, 10/23/2026	1,962,223
250,000	Wells Fargo & Co., Sr. Unsecd. Note, Series MTN, 2.406%, 10/30/2025	236,592
1,000,000	Wells Fargo & Co., Sr. Unsecd. Note, Series MTN, 2.572%, 2/11/2031	830,245
500,000	Wells Fargo & Co., Sr. Unsecd. Note, Series MTN, 3.584%, 5/22/2028	465,019
	TOTAL	33,811,335
	Financial Institution - Broker/Asset Mgr/Exchange—1.4%
500,000	Charles Schwab Corp., Sr. Unsecd. Note, 3.625%, 4/1/2025	487,180
220,000	Invesco Finance PLC, Sr. Unsecd. Note, 3.750%, 1/15/2026	210,906
200,000	Jefferies Group LLC, Sr. Unsecd. Note, 6.500%, 1/20/2043	195,774
245,000	Nuveen LLC, Sr. Unsecd. Note, 144A, 4.000%, 11/1/2028	228,028
595,000	Raymond James Financial, Inc., Sr. Unsecd. Note, 4.650%, 4/1/2030	574,334
390,000	Stifel Financial Corp., Sr. Unsecd. Note, 4.250%, 7/18/2024	382,335
	TOTAL	2,078,557
	Financial Institution - Finance Companies—1.9%
190,000	AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 1.750%, 1/30/2026	167,362

Annual Shareholder Report

Principal Amount			Value
		CORPORATE BONDS—continued
		Financial Institution - Finance Companies—continued
$ 205,000		AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 3.000%, 10/29/2028	$ 172,115
500,000		AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 3.500%, 1/15/2025	476,571
550,000		AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 4.625%, 10/15/2027	511,715
700,000		Air Lease Corp., Sr. Unsecd. Note, 1.875%, 8/15/2026	608,840
550,000		Air Lease Corp., Sr. Unsecd. Note, 3.625%, 12/1/2027	498,407
140,000		Air Lease Corp., Sr. Unsecd. Note, 5.850%, 12/15/2027	140,089
250,000		Discover Financial Services, Sr. Unsecd. Note, 4.100%, 2/9/2027	235,612
		TOTAL	2,810,711
		Financial Institution - Insurance - Health—0.8%
645,000		Centene Corp., Sr. Unsecd. Note, 2.450%, 7/15/2028	545,651
200,000		CIGNA Corp., Sr. Unsecd. Note, 4.375%, 10/15/2028	193,292
405,000		UnitedHealth Group, Inc., Sr. Unsecd. Note, 3.750%, 7/15/2025	396,306
		TOTAL	1,135,249
		Financial Institution - Insurance - Life—1.1%
350,000		AIA Group Ltd., Sr. Unsecd. Note, 144A, 3.600%, 4/9/2029	318,682
800,000		American International Group, Inc., Sr. Unsecd. Note, 4.125%, 2/15/2024	791,782
172,000		Massachusetts Mutual Life Insurance Co., Sub. Note, 144A, 8.875%, 6/1/2039	212,016
290,000		Met Life Global Funding I, Sec. Fac. Bond, 144A, 0.550%, 6/7/2024	271,631
		TOTAL	1,594,111
		Financial Institution - Insurance - P&C—0.7%
300,000		Chubb INA Holdings, Inc., Sr. Unsecd. Note, 3.350%, 5/15/2024	293,774
250,000		CNA Financial Corp., Sr. Unsecd. Note, 3.450%, 8/15/2027	231,984
95,000		CNA Financial Corp., Sr. Unsecd. Note, 3.900%, 5/1/2029	86,669
300,000		Nationwide Mutual Insurance Co., Sub. Note, 144A, 9.375%, 8/15/2039	387,469
		TOTAL	999,896
		Financial Institution - REIT - Apartment—1.1%
395,000		Avalonbay Communities, Inc., Sr. Unsecd. Note, Series MTN, 3.350%, 5/15/2027	367,551
115,000		Camden Property Trust, Sr. Unsecd. Note, 2.800%, 5/15/2030	99,217
500,000		Mid-America Apartment Communities LP, Sr. Unsecd. Note, 3.750%, 6/15/2024	489,904
320,000		Mid-America Apartment Communities LP, Sr. Unsub. Note, 1.700%, 2/15/2031	250,259
500,000		UDR, Inc., Sr. Unsecd. Note, Series MTN, 2.950%, 9/1/2026	459,679
		TOTAL	1,666,610
		Financial Institution - REIT - Healthcare—1.2%
445,000		Healthcare Trust of America, Sr. Unsecd. Note, 2.000%, 3/15/2031	337,905
710,000		Physicians Realty Trust, Sr. Unsecd. Note, 4.300%, 3/15/2027	670,567
375,000		Welltower, Inc., Sr. Unsecd. Note, 2.750%, 1/15/2031	300,873
500,000		Welltower, Inc., Sr. Unsecd. Note, 3.100%, 1/15/2030	423,084
		TOTAL	1,732,429
		Financial Institution - REIT - Office—0.6%
250,000		Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 4.900%, 12/15/2030	244,215
480,000		Boston Properties LP, Sr. Unsecd. Note, 3.200%, 1/15/2025	459,473
80,000		Boston Properties LP, Sr. Unsecd. Note, 3.250%, 1/30/2031	66,324
120,000	1	Piedmont Operating Partnership, LP, Sr. Unsecd. Note, 2.750%, 4/1/2032	84,286
		TOTAL	854,298
		Financial Institution - REIT - Other—0.7%
320,000		ProLogis LP, Sr. Unsecd. Note, 4.375%, 2/1/2029	305,879
275,000		WP Carey, Inc., Sr. Unsecd. Note, 2.400%, 2/1/2031	219,761
450,000		WP Carey, Inc., Sr. Unsecd. Note, 4.600%, 4/1/2024	445,942
		TOTAL	971,582
		Financial Institution - REIT - Retail—0.5%
250,000		Kimco Realty Corp., Sr. Unsecd. Note, 1.900%, 3/1/2028	209,736

Annual Shareholder Report

Principal Amount			Value
		CORPORATE BONDS—continued
		Financial Institution - REIT - Retail—continued
$ 410,000		Kimco Realty Corp., Sr. Unsecd. Note, 2.700%, 3/1/2024	$ 396,997
250,000		Kimco Realty Corp., Sr. Unsecd. Note, 2.700%, 10/1/2030	204,341
		TOTAL	811,074
		Sovereign—0.4%
510,000		Inter-American Development Bank, Series MTN, 6.750%, 7/15/2027	556,665
		Technology—5.9%
315,000		Apple, Inc., Sr. Unsecd. Note, 1.125%, 5/11/2025	290,281
125,000		Apple, Inc., Sr. Unsecd. Note, 4.450%, 5/6/2044	118,458
340,000		Automatic Data Processing, Inc., Sr. Unsecd. Note, 3.375%, 9/15/2025	329,634
280,000		Broadcom Corp., Sr. Unsecd. Note, Series WI, 3.875%, 1/15/2027	265,255
666,000		Broadcom, Inc., Sr. Unsecd. Note, 4.110%, 9/15/2028	620,665
135,000		Broadcom, Inc., Sr. Unsecd. Note, 144A, 3.419%, 4/15/2033	108,606
250,000		Broadcom, Inc., Sr. Unsecd. Note, 144A, 4.000%, 4/15/2029	227,625
250,000		CDW LLC / CDW Finance, Sr. Unsecd. Note, 2.670%, 12/1/2026	222,423
750,000		Dell International LLC / EMC Corp., Sr. Unsecd. Note, 5.300%, 10/1/2029	735,214
150,000		Dell International LLC / EMC Corp., Sr. Unsecd. Note, 5.850%, 7/15/2025	151,737
480,000		Equifax, Inc., Sr. Unsecd. Note, 2.600%, 12/1/2024	457,880
250,000		Fiserv, Inc., Sr. Unsecd. Note, 2.650%, 6/1/2030	210,734
230,000		Fiserv, Inc., Sr. Unsecd. Note, 2.750%, 7/1/2024	222,319
500,000		Fiserv, Inc., Sr. Unsecd. Note, 4.200%, 10/1/2028	473,966
175,000	1	Intel Corp., Sr. Unsecd. Note, 3.400%, 3/25/2025	170,753
100,000		Keysight Technologies, Inc., Sr. Unsecd. Note, 3.000%, 10/30/2029	86,882
460,000		Keysight Technologies, Inc., Sr. Unsecd. Note, 4.550%, 10/30/2024	453,281
310,000		Lam Research Corp., Sr. Unsecd. Note, 4.000%, 3/15/2029	295,853
750,000		Microsoft Corp., Sr. Unsecd. Note, 2.400%, 8/8/2026	700,329
190,000		Molex Electronics Technologies LLC, Unsecd. Note, 144A, 3.900%, 4/15/2025	180,897
500,000		Oracle Corp., Sr. Unsecd. Note, 1.650%, 3/25/2026	448,185
750,000		Oracle Corp., Sr. Unsecd. Note, 3.400%, 7/8/2024	732,138
230,000		Oracle Corp., Sr. Unsecd. Note, 6.150%, 11/9/2029	239,276
260,000		Total System Services, Inc., Sr. Unsecd. Note, 4.450%, 6/1/2028	242,403
600,000		Verisk Analytics, Inc., Sr. Unsecd. Note, 4.125%, 3/15/2029	562,939
265,000		VMware, Inc., Sr. Unsecd. Note, 1.400%, 8/15/2026	231,350
		TOTAL	8,779,083
		Technology Services—0.8%
255,000		Fortinet, Inc., Sr. Unsecd. Note, 1.000%, 3/15/2026	223,507
320,000		Global Payments, Inc., Sr. Unsecd. Note, 1.200%, 3/1/2026	279,282
600,000		Global Payments, Inc., Sr. Unsecd. Note, 2.150%, 1/15/2027	524,234
90,000		Global Payments, Inc., Sr. Unsecd. Note, 2.900%, 5/15/2030	73,941
145,000		Verisign, Inc., Sr. Unsecd. Note, 2.700%, 6/15/2031	118,453
		TOTAL	1,219,417
		Transportation - Airlines—0.1%
215,000		Southwest Airlines Co., Sr. Unsecd. Note, 5.250%, 5/4/2025	215,989
		Transportation - Railroads—0.7%
250,000		Canadian Pacific Railway Co., Sr. Unsecd. Note, 1.750%, 12/2/2026	223,129
500,000		Canadian Pacific Railway Co., Sr. Unsecd. Note, 2.450%, 12/2/2031	415,450
500,000		Union Pacific Corp., Sr. Unsecd. Note, 2.150%, 2/5/2027	452,217
		TOTAL	1,090,796
		Transportation - Services—1.8%
735,000		GXO Logistics, Inc., Sr. Unsecd. Note, Series WI, 1.650%, 7/15/2026	630,195
315,000		GXO Logistics, Inc., Sr. Unsecd. Note, Series WI, 2.650%, 7/15/2031	233,309
215,000		Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 1.200%, 11/15/2025	189,392

Annual Shareholder Report

Principal Amount			Value
		CORPORATE BONDS—continued
		Transportation - Services—continued
$ 250,000		Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 1.700%, 6/15/2026	$ 218,995
300,000		Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 3.450%, 7/1/2024	289,868
250,000		Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 4.450%, 1/29/2026	240,911
350,000		Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 1.750%, 9/1/2026	308,088
590,000	1	United Parcel Service, Inc., Sr. Unsecd. Note, 3.900%, 4/1/2025	581,183
		TOTAL	2,691,941
		Utility - Electric—4.7%
310,000		AEP Texas, Inc., Sr. Unsecd. Note, 3.850%, 10/1/2025	298,072
185,000		Ameren Corp., Sr. Unsecd. Note, 1.950%, 3/15/2027	163,025
125,000		American Electric Power Co., Inc., Sr. Unsecd. Note, 2.300%, 3/1/2030	102,987
500,000	1	Berkshire Hathaway Energy Co., 3.500%, 2/1/2025	490,887
130,000		Berkshire Hathaway Energy Co., Sr. Unsecd. Note, Series WI, 4.050%, 4/15/2025	128,114
560,000		Dominion Energy, Inc., Jr. Sub. Note, 3.071%, 8/15/2024	539,952
400,000		EDP Finance BV, Sr. Unsecd. Note, 144A, 1.710%, 1/24/2028	330,777
500,000		EDP Finance BV, Sr. Unsecd. Note, 144A, 3.625%, 7/15/2024	482,755
190,000		Emera US Finance LP, Sr. Unsecd. Note, 0.833%, 6/15/2024	177,420
500,000		Enel Finance America LLC, Sr. Unsecd. Note, 144A, 7.100%, 10/14/2027	517,886
330,000		Enel Finance International NV, Sr. Unsecd. Note, 144A, 1.375%, 7/12/2026	284,779
385,000		Exelon Corp., Sr. Unsecd. Note, 4.050%, 4/15/2030	358,356
500,000		Exelon Corp., Sr. Unsecd. Note, 144A, 2.750%, 3/15/2027	459,287
250,000		Exelon Generation Co. LLC, Sr. Unsecd. Note, 3.250%, 6/1/2025	239,415
240,000		Fortis, Inc./Canada, Sr. Unsecd. Note, 3.055%, 10/4/2026	222,945
140,000		National Rural Utilities Cooperative Finance Corp., Sr. Unsecd. Note, 2.950%, 2/7/2024	136,863
300,000		NextEra Energy Capital Holdings, Inc., Sr. Unsecd. Note, 3.550%, 5/1/2027	283,102
260,000		NextEra Energy Capital Holdings, Inc., Sr. Unsecd. Note, 4.625%, 7/15/2027	256,077
500,000		NiSource Finance Corp., Sr. Unsecd. Note, 3.490%, 5/15/2027	471,734
245,000		Puget Energy, Inc., Sec. Fac. Bond, 2.379%, 6/15/2028	208,897
250,000		Southern Co., Sr. Unsecd. Note, 3.250%, 7/1/2026	235,393
300,000		Virginia Electric & Power Co., Sr. Unsecd. Note, Series B, 3.750%, 5/15/2027	286,772
155,000		WEC Energy Group, Inc., Sr. Unsecd. Note, 2.200%, 12/15/2028	131,514
108,000		Wisconsin Energy Corp., Sr. Unsecd. Note, 3.550%, 6/15/2025	103,616
		TOTAL	6,910,625
		Utility - Natural Gas—1.0%
280,000		National Fuel Gas Co., Sr. Unsecd. Note, 2.950%, 3/1/2031	220,063
420,000		National Fuel Gas Co., Sr. Unsecd. Note, 3.750%, 3/1/2023	418,887
395,000		National Fuel Gas Co., Sr. Unsecd. Note, 5.500%, 1/15/2026	393,418
500,000		Sempra Energy, Sr. Unsecd. Note, 3.250%, 6/15/2027	463,308
		TOTAL	1,495,676
		Utility - Natural Gas Distributor—0.3%
450,000		Southern Co. Gas Capital, Sr. Unsecd. Note, 2.450%, 10/1/2023	440,342
		TOTAL CORPORATE BONDS (IDENTIFIED COST $156,123,723)	143,644,046
		MORTGAGE-BACKED SECURITIES—0.0%
		Federal Home Loan Mortgage Corporation—0.0%
280		Federal Home Loan Mortgage Corp., Pool C01051, 8.000%, 9/1/2030	299
		Government National Mortgage Association—0.0%
178		Government National Mortgage Association, Pool 1512, 7.500%, 12/20/2023	178
971		Government National Mortgage Association, Pool 2630, 6.500%, 8/20/2028	995
1,398		Government National Mortgage Association, Pool 2631, 7.000%, 8/20/2028	1,439
1,857		Government National Mortgage Association, Pool 2658, 6.500%, 10/20/2028	1,905
2,950		Government National Mortgage Association, Pool 2701, 6.500%, 1/20/2029	3,027

Annual Shareholder Report

Principal Amount		Value
	MORTGAGE-BACKED SECURITIES—continued
	Government National Mortgage Association—continued
$ 2,290	Government National Mortgage Association, Pool 2796, 7.000%, 8/20/2029	$ 2,371
422	Government National Mortgage Association, Pool 3039, 6.500%, 2/20/2031	437
1,702	Government National Mortgage Association, Pool 3040, 7.000%, 2/20/2031	1,776
6,007	Government National Mortgage Association, Pool 3188, 6.500%, 1/20/2032	6,252
4,220	Government National Mortgage Association, Pool 3239, 6.500%, 5/20/2032	4,401
9,748	Government National Mortgage Association, Pool 3261, 6.500%, 7/20/2032	10,176
747	Government National Mortgage Association, Pool 516688, 8.000%, 8/15/2029	788
	TOTAL	33,745
	TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $32,788)	34,044
	REPURCHASE AGREEMENTS—2.9%
1,647,625	Interest in $1,350,000,000 joint repurchase agreement 4.30%, dated 12/30/2022 under which Bank of Montreal will repurchase securities provided as collateral for $1,350,645,000 on 1/3/2023. The securities provided as collateral at the end of the period held with BNY Mellon as tri-party agent, were U.S. Government Agency securities with various maturities to 5/20/2072 and the market value of those underlying securities was $1,379,047,631 (purchased with proceeds from securities lending collateral).	1,647,625
2,646,000	Interest in $1,350,000,000 joint repurchase agreement 4.30%, dated 12/30/2022 under which Bank of Montreal will repurchase securities provided as collateral for $1,350,645,000 on 1/3/2023. The securities provided as collateral at the end of the period held with BNY Mellon as tri-party agent, were U.S. Government Agency securities with various maturities to 5/20/2072 and the market value of those underlying securities was $1,379,047,631.	2,646,000
	TOTAL REPURCHASE AGREEMENTS (IDENTIFIED COST $4,293,625)	4,293,625
	TOTAL INVESTMENT IN SECURITIES—100.2% (IDENTIFIED COST $160,450,136)3	147,971,715
	OTHER ASSETS AND LIABILITIES - NET—(0.2)%4	(341,798)
	TOTAL NET ASSETS—100%	$147,629,917

At December 31, 2022, the Fund had the following outstanding futures contracts:

Description	Number of Contracts	Notional Value	Expiration Date	Value and Unrealized Appreciation (Depreciation)
Long Futures:
United States Treasury Notes 10-Year Ultra Long Futures	36	$4,258,125	March 2023	$(6,243)
United States Treasury Notes 10-Year Long Futures	25	$2,807,422	March 2023	$(14,509)
Short Futures:
United States Treasury Long Bond Short Futures	12	$1,504,125	March 2023	$5,992
United States Treasury Ultra Bond Short Futures	1	$134,313	March 2023	$303
NET UNREALIZED DEPRECIATION ON FUTURES CONTRACTS				$(14,457)

Net Unrealized Depreciation on Futures Contracts is included in “Other Assets and Liabilities—Net.”

1	All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers.
2	Floating/variable note with current rate and current maturity or next reset date shown.
3	The cost of investments for federal tax purposes amounts to $160,450,136.
4	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Note: The categories of investments are shown as a percentage of total net assets at December 31, 2022.

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

Level 1—quoted prices in active markets for identical securities.

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

Annual Shareholder Report

The following is a summary of the inputs used, as of December 31, 2022, in valuing the Fund’s assets carried at fair value:

Valuation Inputs
	Level 1— Quoted Prices	Level 2— Other Significant Observable Inputs	Level 3— Significant Unobservable Inputs	Total
Debt Securities:
Corporate Bonds	$—	$143,644,046	$—	$143,644,046
Mortgage-Backed Securities	—	34,044	—	34,044
Repurchase Agreements	—	4,293,625	—	4,293,625
TOTAL SECURITIES	$—	$147,971,715	$—	$147,971,715
Other Financial Instruments:1
Assets	$6,295	$—	$—	$6,295
Liabilities	(20,752)	—	—	(20,752)
TOTAL OTHER FINANCIAL INSTRUMENTS	$(14,457)	$—	$—	$(14,457)

1	Other financial instruments are futures contracts.

The following acronym(s) are used throughout this portfolio:
BKNT	—Bank Notes
GMTN	—Global Medium Term Note
LIBOR	—London Interbank Offered Rate
MTN	—Medium Term Note
REIT	—Real Estate Investment Trust

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Primary Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended December 31,
	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$11.26	$11.82	$11.31	$10.65	$11.05
Income From Investment Operations:
Net investment income (loss)1	0.25	0.25	0.28	0.31	0.30
Net realized and unrealized gain (loss)	(1.27)	(0.42)	0.58	0.68	(0.37)
Total From Investment Operations	(1.02)	(0.17)	0.86	0.99	(0.07)
Less Distributions:
Distributions from net investment income	(0.27)	(0.29)	(0.32)	(0.33)	(0.33)
Distributions from net realized gain	(0.16)	(0.10)	(0.03)	(0.00)2	—
Total Distributions	(0.43)	(0.39)	(0.35)	(0.33)	(0.33)
Net Asset Value, End of Period	$9.81	$11.26	$11.82	$11.31	$10.65
Total Return3	(9.28)%	(1.40)%	8.12%	9.44%	(0.59)%
Ratios to Average Net Assets:
Net expenses4	0.74%	0.74%	0.74%	0.74%	0.74%
Net investment income	2.44%	2.17%	2.50%	2.79%	2.83%
Expense waiver/reimbursement5	0.07%	0.06%	0.07%	0.08%	0.08%
Supplemental Data:
Net assets, end of period (000 omitted)	$134,757	$162,034	$170,912	$167,625	$162,812
Portfolio turnover6	15%	27%	24%	21%	19%

1	Per share numbers have been calculated using the average shares method.
2	Represents less than $0.01.
3	Based on net asset value. Total returns do not reflect any additional fees or expenses that may be imposed by separate accounts of insurance companies or in connection with any variable annuity or variable life insurance contract.
4	Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
5	This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/ reimbursement recorded by investment companies in which the Fund may invest.
6	Securities that mature are considered sales for purposes of this calculation.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Service Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended December 31,
	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$11.23	$11.79	$11.28	$10.62	$11.01
Income From Investment Operations:
Net investment income (loss)1	0.22	0.22	0.26	0.28	0.27
Net realized and unrealized gain (loss)	(1.26)	(0.42)	0.57	0.68	(0.36)
Total From Investment Operations	(1.04)	(0.20)	0.83	0.96	(0.09)
Less Distributions:
Distributions from net investment income	(0.24)	(0.26)	(0.29)	(0.30)	(0.30)
Distributions from net realized gain	(0.16)	(0.10)	(0.03)	(0.00)2	—
Total Distributions	(0.40)	(0.36)	(0.32)	(0.30)	(0.30)
Net Asset Value, End of Period	$9.79	$11.23	$11.79	$11.28	$10.62
Total Return3	(9.46)%	(1.66)%	7.86%	9.17%	(0.78)%
Ratios to Average Net Assets:
Net expenses4	0.99%	0.99%	0.99%	0.99%	0.99%
Net investment income	2.19%	1.92%	2.25%	2.54%	2.58%
Expense waiver/reimbursement5	0.07%	0.06%	0.07%	0.08%	0.07%
Supplemental Data:
Net assets, end of period (000 omitted)	$12,873	$16,287	$18,302	$18,776	$19,344
Portfolio turnover6	15%	27%	24%	21%	19%

1	Per share numbers have been calculated using the average shares method.
2	Represents less than $0.01.
3	Based on net asset value. Total returns do not reflect any additional fees or expenses that may be imposed by separate accounts of insurance companies or in connection with any variable annuity or variable life insurance contract.
4	Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
5	This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/ reimbursement recorded by investment companies in which the Fund may invest.
6	Securities that mature are considered sales for purposes of this calculation.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Assets and Liabilities
December 31, 2022

Assets:
Investment in securities, at value including $1,596,836 of securities loaned (identified cost $160,450,136)	$147,971,715
Cash	738
Due from broker (Note 2)	126,015
Income receivable	1,282,565
Receivable for shares sold	7,946
Total Assets	149,388,979
Liabilities:
Payable for shares redeemed	35,777
Payable for variation margin on futures contracts	3,347
Payable for collateral due to broker for securities lending (Note 2)	1,647,625
Payable for investment adviser fee (Note 5)	4,382
Payable for administrative fee (Note 5)	635
Payable for distribution services fee (Note 5)	2,768
Accrued expenses (Note 5)	64,528
Total Liabilities	1,759,062
Net assets for 15,052,124 shares outstanding	$147,629,917
Net Assets Consist of:
Paid-in capital	$156,956,810
Total distributable earnings (loss)	(9,326,893)
Total Net Assets	$147,629,917
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Primary Shares:
$134,756,505 ÷ 13,736,674 shares outstanding, no par value, unlimited shares authorized	$9.81
Service Shares:
$12,873,412 ÷ 1,315,450 shares outstanding, no par value, unlimited shares authorized	$9.79

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Operations
Year Ended December 31, 2022

Investment Income:
Interest	$5,034,737
Net income on securities loaned (Note 2)	9,233
TOTAL INCOME	5,043,970
Expenses:
Investment adviser fee (Note 5)	950,461
Administrative fee (Note 5)	127,811
Custodian fees	11,328
Transfer agent fees	15,238
Directors’/Trustees’ fees (Note 5)	2,159
Auditing fees	28,172
Legal fees	9,145
Portfolio accounting fees	90,026
Distribution services fee (Note 5)	35,924
Printing and postage	23,184
Miscellaneous (Note 5)	25,483
TOTAL EXPENSES	1,318,931
Waiver of investment adviser fee (Note 5)	(103,011)
Net expenses	1,215,920
Net investment income	3,828,050
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts:
Net realized loss on investments	(795,242)
Net realized gain on futures contracts	117,704
Net change in unrealized appreciation of investments	(19,481,576)
Net change in unrealized depreciation of futures contracts	1,266
Net realized and unrealized gain (loss) on investments and futures contracts	(20,157,848)
Change in net assets resulting from operations	$(16,329,798)

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Changes in Net Assets

Year Ended December 31	2022	2021
Increase (Decrease) in Net Assets
Operations:
Net investment income	$3,828,050	$4,084,958
Net realized gain (loss)	(677,538)	2,544,243
Net change in unrealized appreciation/depreciation	(19,480,310)	(9,307,128)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS	(16,329,798)	(2,677,927)
Distributions to Shareholders:
Primary Shares	(5,969,547)	(5,661,205)
Service Shares	(565,684)	(541,939)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS	(6,535,231)	(6,203,144)
Share Transactions:
Proceeds from sale of shares	6,380,104	28,426,242
Net asset value of shares issued to shareholders in payment of distributions declared	6,535,227	6,203,141
Cost of shares redeemed	(20,741,748)	(36,640,783)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS	(7,826,417)	(2,011,400)
Change in net assets	(30,691,446)	(10,892,471)
Net Assets:
Beginning of period	178,321,363	189,213,834
End of period	$147,629,917	$178,321,363

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Notes to Financial Statements

December 31, 2022

1. ORGANIZATION

Federated Hermes Insurance Series (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of six portfolios. The financial statements included herein are only those of Federated Hermes Quality Bond Fund II (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers two classes of shares: Primary Shares and Service Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. Fund shares are available exclusively as a funding vehicle for life insurance companies writing variable life insurance policies and variable annuity contracts. The investment objective of the Fund is to provide current income.

2. SIGNIFICANT ACCOUNTING POLICIES

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

◾

Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by Federated Investment Management Company (the “Adviser”).

◾

Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and ask quotations.

◾

Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser.

◾

Shares of other mutual funds or non-exchange traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.

◾

For securities that are fair valued in accordance with procedures established by and under the general supervision of the Adviser, certain factors may be considered such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.

Fair Valuation and Significant Events Procedures

Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and ask for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Adviser.

Annual Shareholder Report

◾

With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;

◾

Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;

◾

Repurchase Agreements

Investment Income, Gains and Losses, Expenses and Distributions

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Amortization/accretion of premium and discount is included in investment income. Gains and losses realized on principal payment of mortgage-backed securities (paydown gains and losses) are classified as part of investment income. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. The detail of the total fund expense waiver of $103,011 is disclosed in Note 5.

Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Federal Taxes

When-Issued and Delayed-Delivery Transactions

Annual Shareholder Report

Futures Contracts

The Fund purchases and sells financial futures contracts to manage duration risk and yield curve risk. Upon entering into a financial futures contract with a broker, the Fund is required to deposit with a broker, either U.S. government securities or a specified amount of cash, which is shown as due from broker in the Statement of Assets and Liabilities. Futures contracts are valued daily and unrealized gains or losses are recorded in a “variation margin” account. The Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. There is minimal counterparty risk to the Fund since futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures contracts, guarantees the futures contracts against default.

Futures contracts outstanding at period end are listed after the Fund’s Portfolio of Investments.

The average notional value of long and short futures contracts held by the Fund throughout the period was $6,027,981 and $3,242,195, respectively. This is based on amounts held as of each month-end throughout the fiscal period.

Securities Lending

The Fund participates in a securities lending program providing for the lending of corporate bonds to qualified brokers. The term of the loans within the program is one year or less. The Fund normally receives cash collateral for securities loaned that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. Investments in money market funds may include funds with a “floating” NAV that can impose redemption fees and liquidity gates, impose certain operational impediments to investing cash collateral, and, if the investee fund’s NAV decreases, result in the Fund recognizing losses and being required to cover the decrease in the value of the cash collateral. Collateral is maintained at a minimum level of 100% of the market value of investments loaned, plus interest, if applicable. In accordance with the Fund’s securities lending agreement, the market value of securities on loan is determined each day at the close of business and any additional collateral required to cover the value of securities on loan is delivered to the Fund on the next business day. Earnings on collateral are allocated between the borrower of the security, the securities lending agent, as a fee for its services under the program and the Fund, according to agreed-upon rates. The Fund will not have the right to vote on securities while they are on loan. However, the Fund will attempt to terminate a loan in an effort to reacquire the securities in time to vote on matters that are deemed to be material by the Adviser. There can be no assurance that the Fund will have sufficient notice of such matters to be able to terminate the loan in time to vote thereon.

As of December 31, 2022, securities subject to this type of arrangement and related collateral were as follows:

Fair Value of Securities Loaned	Collateral Received
$1,596,836	$1,647,625

Restricted Securities

Additional Disclosure Related to Derivative Instruments

Fair Value of Derivative Instruments
	Liabilities
	Statement of Assets and Liabilities Location	Fair Value
Derivatives not accounted for as hedging instruments under ASC Topic 815
Interest rate contracts	Payable for variation margin on futures contracts	$14,457*

*	Includes cumulative net depreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

Annual Shareholder Report

The Effect of Derivative Instruments on the Statement of Operations for the Year Ended December 31, 2022

Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
	Futures Contracts
Interest rate contracts	$117,704

Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
	Futures Contracts
Interest rate contracts	$1,266

Other

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Year Ended 12/31/2022		Year Ended 12/31/2021
Primary Shares:	Shares	Amount	Shares	Amount
Shares sold	602,659	$6,152,032	2,404,407	$27,396,392
Shares issued to shareholders in payment of distributions declared	581,827	5,969,547	505,917	5,661,205
Shares redeemed	(1,835,220)	(18,635,582)	(2,979,085)	(33,876,384)
NET CHANGE RESULTING FROM PRIMARY SHARE TRANSACTIONS	(650,734)	$(6,514,003)	(68,761)	$(818,787)
	Year Ended 12/31/2022		Year Ended 12/31/2021
Service Shares:	Shares	Amount	Shares	Amount
Shares sold	21,948	$228,072	89,033	$1,029,850
Shares issued to shareholders in payment of distributions declared	55,135	565,680	48,430	541,936
Shares redeemed	(211,485)	(2,106,166)	(239,734)	(2,764,399)
NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS	(134,402)	$(1,312,414)	(102,271)	$(1,192,613)
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS	(785,136)	$(7,826,417)	(171,032)	$(2,011,400)

4. FEDERAL TAX INFORMATION

The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended December 31, 2022 and 2021, was as follows:

	2022	2021
Ordinary income1	$4,304,512	$4,863,670
Long-term capital gains	$2,230,719	$1,339,474

1	For tax purposes, short-term capital gain distributions are considered ordinary income distributions.

As of December 31, 2022, the components of distributable earnings on a tax-basis were as follows:

Undistributed ordinary income2	$3,827,948
Net unrealized depreciation	$(12,478,421)
Capital loss carryforwards	$(676,420)
TOTAL	$(9,326,893)

2	For tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings.

At December 31, 2022, the cost of investments for federal tax purposes was $160,450,136. The net unrealized depreciation of investments for federal tax purposes was $12,478,421. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $210,602 and net unrealized depreciation from investments for those securities having an excess of cost over value of $12,689,023. The amounts presented are inclusive of derivative contracts. The difference between book-basis and tax-basis net unrealized appreciation is attributable to differing treatments for mark-to-market of futures contracts.

Annual Shareholder Report

As of December 31, 2022, the Fund had a capital loss carryforward of $676,420 which will reduce the Fund’s taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, thereby reducing the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, these net capital losses retain their character as either short-term or long-term and do not expire.

The following schedule summarizes the Fund’s capital loss carryforwards:

Short-Term	Long-Term	Total
$34,783	$641,637	$676,420

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Administrative Fee

Administrative Fee	Average Daily Net Assets of the Investment Complex
0.100%	on assets up to $50 billion
0.075%	on assets over $50 billion

In addition, FAS may charge certain out-of-pocket expenses to the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund’s Primary Shares and Service Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at the following percentages of average daily net assets annually, to compensate FSC:

	Percentage of Average Daily Net Assets of Class
Primary Shares	0.25%
Service Shares	0.25%

Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee. For the year ended December 31, 2022, distribution services fees for the Fund were as follows:

	Distribution Services Fees Incurred
Service Shares	$35,924

When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the year ended December 31, 2022, the Fund’s Primary Shares did not incur a distribution services fee; however, it may begin to incur this fee upon approval of the Trustees.

Expense Limitation

The Adviser and certain of its affiliates (which may include FSC and FAS) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, extraordinary expenses and proxy-related expenses paid by the Fund if any) paid by the Fund’s Primary Shares and Service Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.74% and 0.99% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) May 1, 2023; or (b) the date of the Fund’s next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.

Annual Shareholder Report

Directors’/Trustees’ and Miscellaneous Fees

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended December 31, 2022, were as follows:

Purchases	$22,405,405
Sales	$31,699,430

7. LINE OF CREDIT

8. INTERFUND LENDING

9. INDEMNIFICATIONS

10. OTHER MATTERS

11. Recent Accounting Pronouncements

12. FEDERAL TAX INFORMATION (UNAUDITED)

For the year ended December 31, 2022, the amount of long-term capital gains designated by the Fund was $2,230,719.

Annual Shareholder Report

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Federated Hermes Insurance Series and the Shareholders of Federated Hermes Quality Bond Fund II:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of Federated Hermes Quality Bond Fund II (the Fund), a portfolio of Federated Hermes Insurance Series, including the portfolio of investments, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights 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 years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

We have served as the auditor for one or more of Federated Hermes’ investment companies since 2006.

Boston, Massachusetts
February 15, 2023

Annual Shareholder Report

Shareholder Expense Example (unaudited)

ACTUAL EXPENSES

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

	Beginning Account Value 7/1/2022	Ending Account Value 12/31/2022	Expenses Paid During Period1
Actual:
Primary Shares	$1,000	$991.90	$3.72
Service Shares	$1,000	$990.90	$4.97
Hypothetical (assuming a 5% return before expenses):
Primary Shares	$1,000	$1,021.48	$3.77
Service Shares	$1,000	$1,020.21	$5.04

Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the

one-half-year period). The expenses shown in the table do not include the charges and expenses imposed by the insurance company under the variable insurance

product contract. Please refer to the variable insurance product prospectus for a complete listing of these expenses. The annualized net expense ratios are as

follows:

Primary Shares	0.74%
Service Shares	0.99%

Annual Shareholder Report

Board of Trustees and Trust Officers

Interested Trustees Background

Name Birth Date Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s)
J. Christopher Donahue* Birth Date: April 11, 1949 Trustee Indefinite Term Began serving: September 1993	Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd.
Thomas R. Donahue* Birth Date: October 20, 1958 Trustee Indefinite Term Began serving: May 2016	Principal Occupations: Director or Trustee of certain of the funds in the Federated Hermes Fund Family; Chief Financial Officer, Treasurer, Vice President and Assistant Secretary, Federated Hermes, Inc.; Chairman and Trustee, Federated Administrative Services; Chairman and Director, Federated Administrative Services, Inc.; Trustee and Treasurer, Federated Advisory Services Company; Director or Trustee and Treasurer, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, and Federated Investment Management Company; Director, MDTA LLC; Director, Executive Vice President and Assistant Secretary, Federated Securities Corp.; Director or Trustee and Chairman, Federated Services Company and Federated Shareholder Services Company; and Director and President, FII Holdings, Inc. Previous Positions: Director, Federated Hermes, Inc.; Assistant Secretary, Federated Investment Management Company, Federated Global Investment Management Company and Passport Research, LTD; Treasurer, Passport Research, LTD; Executive Vice President, Federated Securities Corp.; and Treasurer, FII Holdings, Inc.

INDEPENDENT Trustees Background

Name

Birth Date

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held, Previous Position(s) and Qualifications

John T. Collins

Birth Date: January 24, 1947

Trustee

Indefinite Term

Began serving: October 2013

Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund

Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired).

Other Directorships Held: Director, KLX Energy Services Holdings, Inc. (oilfield services); former Director of

KLX Corp. (aerospace).

Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions

throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm)

and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as

Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth

Israel Deaconess Medical Center (Harvard University Affiliate Hospital).

Annual Shareholder Report

Name Birth Date Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015	Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Lead Director, Member of the Audit and Nominating and Corporate Governance Committees, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association.
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor Emerita of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (natural gas). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as Associate General Secretary of the Diocese of Pittsburgh, a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green was appointed by the Supreme Court of Pennsylvania to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); Director, Catholic Charities, Pittsburgh; and Director CNX Resources Corporation (natural gas). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint Francis University.
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber); and Director, The Golisano Children’s Museum of Naples, Florida.
Madelyn A. Reilly Birth Date: February 2, 1956 Trustee Indefinite Term Began serving: November 2020	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors, Duquesne University (Retired). Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors and Director of Risk Management and Associate General Counsel, Duquesne University. Prior to her work at Duquesne University, Ms. Reilly served as Assistant General Counsel of Compliance and Enterprise Risk as well as Senior Counsel of Environment, Health and Safety, PPG Industries. Ms. Reilly currently serves as a member of the Board of Directors of UPMC Mercy Hospital.
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CONSOL Energy Inc. (now split into two separate publicly traded companies known as CONSOL Energy Inc. and CNX Resources Corp.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and CNX Gas Company; and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm).

Annual Shareholder Report

Name

Birth Date

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held, Previous Position(s) and Qualifications

John S. Walsh

Birth Date:

November 28, 1957

Trustee

Indefinite Term

Began serving: January 1999

Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc.

(manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of

portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc.

Other Directorships Held: None.

Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career.

Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors).

OFFICERS

Name Birth Date Address Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years and Previous Position(s)
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013	Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc.
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: January 2005	Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, Inc. in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc.
John B. Fisher Birth Date: May 16, 1956 PRESIDENT Officer since: November 2004	Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Director and Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, and Federated MDTA LLC; Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and CEO of Passport Research, Ltd.; Director and President, Technology, Federated Services Company.
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015	Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement.
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: November 2002	Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments.
Robert J. Ostrowski Birth Date: April 26, 1963 Chief Investment Officer Officer since: May 2004	Principal Occupations: Robert J. Ostrowski joined Federated Hermes, Inc. in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated Hermes’ taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund’s Adviser in 2009 and served as a Senior Vice President of the Fund’s Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University.

Annual Shareholder Report

Name

Birth Date

Address

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years

and Previous Position(s)

Deborah A. Cunningham

Birth Date:

September 15, 1959

Chief Investment Officer

Officer since: June 2012

Principal Occupations: Deborah A. Cunningham was named Chief Investment Officer of Federated Hermes’ money market

products in 2004. She joined Federated Hermes in 1981 and has been a Senior Portfolio Manager since 1997

and an Executive Vice President of the Fund’s Adviser since 2009. Ms. Cunningham has received the Chartered Financial

Analyst designation and holds an M.S.B.A. in Finance from Robert Morris College.

Annual Shareholder Report

Evaluation and Approval of Advisory Contract–May 2022

Federated Hermes Quality Bond Fund II (the “Fund”)

Information Received and Review Process

The Board’s consideration of the Contract included review of materials and information covering the following matters, among others: the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates; Federated Hermes’ business and operations; the Adviser’s investment philosophy, personnel and processes; the Fund’s investment objectives and strategies; the Fund’s short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, and relative to the Fund’s particular investment program and a group of its peer funds and/or its benchmark, as appropriate); the Fund’s fees and expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to a group of its peer funds), with due regard for contractual or voluntary expense limitations (if any); the financial condition of Federated Hermes; the Adviser’s profitability with respect to the Fund; distribution and sales activity for the Fund; and the use and allocation of brokerage commissions derived from trading the Fund’s portfolio securities (if any).

Annual Shareholder Report

Nature, Extent and Quality of Services

In addition, the Board considered the financial resources and overall reputation of Federated Hermes and its willingness to consider and make investments in personnel, infrastructure, technology, cybersecurity, business continuity planning and operational enhancements that are designed to benefit the Federated Hermes Funds. The Board noted the significant acquisition of Hermes Fund Managers Limited by Federated Hermes, which has deepened the organization’s investment management expertise and capabilities and expanded the investment process for all of the Federated Hermes Funds to have access to analytical resources related to environmental, social and governance (“ESG”) factors and issuer engagement on ESG matters. The Board considered Federated Hermes’ oversight of the securities lending program for the Federated Hermes Funds that engage in securities lending and noted the income earned by the Federated Hermes Funds that participate in such program. In addition, the Board considered the quality of Federated Hermes’ communications with the Board and responsiveness to Board inquiries and requests made from time to time with respect to the Fund and other Federated Hermes Funds. In this regard, the Board took into account Federated Hermes’ communications with the Board in light of the pandemic. The Board also considered that Federated Hermes is responsible for providing the Federated Hermes Funds’ officers.

Annual Shareholder Report

Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided by the Adviser to the Fund.

Fund Investment Performance

For the periods ended December 31, 2021, the Fund’s performance for the three-year and five-year periods was above the median of the Performance Peer Group, and the Fund’s performance fell below the median of the Performance Peer Group for the one-year period. The Board discussed the Fund’s performance with the Adviser and recognized the efforts being taken by the Adviser in the context of other factors considered relevant by the Board.

Based on these considerations, the Board concluded that it had continued confidence in the Adviser’s overall capabilities to manage the Fund.

Fund Expenses

Annual Shareholder Report

The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund’s contractual advisory fee rate and other expenses relative to its Expense Peer Group. In this regard, the Board noted that the contractual advisory fee rate was above the median of the Expense Peer Group, but the Board noted the applicable waivers and reimbursements, and that the overall expense structure of the Fund remained competitive in the context of other factors considered by the Board.

Profitability

Economies of Scale

Annual Shareholder Report

processes and tools for portfolio management, including the use of market data on which portfolio managers make investment decisions; trading operations; ESG integration and issuer engagement on ESG matters; shareholder services; compliance; business continuity; cybersecurity; internal audit and risk management functions; and technology that supports the provision of investment management services. The Board noted that Federated Hermes’ investments in these areas are extensive and are designed to provide enhanced services to the Federated Hermes Funds and their shareholders. The Board considered that the benefits of these investments are likely to be shared with the family of Federated Hermes Funds as a whole. In addition, the Board considered that fee waivers and expense reimbursements are another means for potential economies of scale to be shared with shareholders and can provide protection from an increase in expenses if a Federated Hermes Fund’s assets decline. The Board considered that, in order for the Federated Hermes Funds to remain competitive in the marketplace, Federated Hermes has frequently waived fees and/or reimbursed expenses for the Federated Hermes Funds and has disclosed to shareholders and/or reported to the Board its intention to do so (or continue to do so) in the future. The Board also considered Federated Hermes’ reductions in contractual management fees for certain Federated Hermes Funds during the prior year, including in response to the CCO’s recommendations in the prior year’s CCO Fee Evaluation Report, which have resulted in benefits being realized by shareholders.

Other Benefits

Conclusions

Annual Shareholder Report

Liquidity Risk Management Program–
Annual Evaluation of Adequacy and Effectiveness

In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Federated Hermes Insurance Series (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) for Federated Hermes Quality Bond Fund II (the “Fund” and, collectively with the other non-money market open-end funds advised by Federated Hermes, the “Federated Hermes Funds”). The Program seeks to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Board of Trustees of the Trust (the “Board”) has approved the designation of each Federated Hermes Fund’s investment adviser as the administrator for the Program (the “Administrator”) with respect to that Fund. The Administrator, in turn, has delegated day-to-day responsibility for the administration of the Program to multiple Liquidity Risk Management Committees, which are comprised of representatives from certain divisions within Federated Hermes.

◾ confirmation that it was not necessary for the Fund to utilize, and the Fund did not utilize, alternative funding sources during the Period;

◾ the fact that the Fund invested no more than 15% of its assets in illiquid investments during the Period and the procedures for monitoring this limit;

◾ the fact that there were no liquidity events during the Period, that materially affected the Fund’s liquidity risk;

Annual Shareholder Report

Voting Proxies on Fund Portfolio Securities

Quarterly Portfolio Schedule

Annual Shareholder Report

Federated Hermes Quality Bond Fund II

Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561

Federated Securities Corp., Distributor

CUSIP 313916884
CUSIP 313916785

G00433-14 (2/23)

Annual Shareholder Report

December 31, 2022

Federated Hermes Fund for U.S. Government Securities II

A Portfolio of Federated Hermes Insurance Series

Dear Valued Shareholder,

Thank you for investing with us. We hope you find this information useful and look forward to keeping you informed.

Sincerely,

John B. Fisher, President

Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee

CONTENTS

Management’s Discussion of Fund Performance	1
Portfolio of Investments Summary Table	3
Portfolio of Investments	4
Financial Highlights	10
Statement of Assets and Liabilities	11
Statement of Operations	12
Statement of Changes in Net Assets	13
Notes to Financial Statements	14
Report of Independent Registered Public Accounting Firm	19
Shareholder Expense Example	20
Board of Trustees and Trust Officers	21
Evaluation and Approval of Advisory Contract	25
Liquidity Risk Management Program– Annual Evaluation of Adequacy and Effectiveness	30
Voting Proxies on Fund Portfolio Securities	31
Quarterly Portfolio Schedule	31

Management’s Discussion of Fund Performance (unaudited)

The total return of Federated Hermes Fund for U.S. Government Securities II (the “Fund”), based on net asset value for the 12-month reporting period ended December 31, 2022, was -12.55%. The Fund’s custom benchmark (“Blended Index”),1 which consists of a 67%/33% blend of the Bloomberg US Mortgage-Backed Securities Index and the Bloomberg US Government Bond Index, returned -11.97% for the same period. The Fund’s total return for the most recently completed fiscal year reflected actual cash flows, transaction costs and expenses not reflected in the total return of the Blended Index.

During the reporting period, the most significant factors affecting the Fund’s performance relative to the Blended Index included: (a) interest rate strategy; (b) sector allocation; and (c) security selection.

The following discussion will focus on the performance of the Fund relative to the Blended Index.

MARKET OVERVIEW

Citing elevated inflation which resulted from pandemic-induced supply/demand imbalances and the Russian invasion of Ukraine, as well as low unemployment, the Federal Reserve (the “Fed”) aggressively tightened monetary policy. From accommodative monetary policy at period outset, the Fed moved at a historically rapid pace with seven rate hikes to reduce inflationary pressures. Additionally, quantitative easing policy purchases of securities reached a conclusion, and the portfolio of agency debt, mortgage-backed securities2 (MBS) and Treasury securities declined as securities matured. These steps were taken to combat inflation which reached the highest level in 40 years. Market yields spiked in response to Fed actions.

Treasury yields increased across the maturity spectrum and fixed-income investments outside of Treasury securities—the spread sectors—reeled, as slack demand produced wider yield spreads and negative excess returns. Virtually all spread sectors underperformed similar duration Treasury securities with corporate debt (both high-grade and high-yield), MBS (residential and commercial), asset-backed securities (ABS) and agency debt posting lackluster results. The mortgage sector suffered from a lack of demand as commercial bank buying decreased, and the Fed ceased portfolio purchases allowing portfolio holdings to decline as quantitative easing evolved to quantitative tightening. As Treasury yields and mortgage rates increased, mortgage refinance activity decreased and MBS securities average lives extended as homeowners’ existing mortgage rates fell below the available market rate for 30-year fixed mortgages.

During the reporting period, the 2- and 10-year U.S. Treasury yields increased 370 and 237 basis points to yield 4.43% and 3.88%, respectively.3

Interest rate strategy

The Fund decreased effective duration,4 relative to the Blended Index, to reduce the anticipated impact of higher market yields. The lower portfolio sensitivity to interest rates proved beneficial as Treasury yields climbed. Interest rate strategy made a positive contribution to Fund performance during the reporting period.

Sector ALLOCATION

Allocations to securities outside the Blended Index, notably non-agency MBS and student loan ABS, proved detrimental as yield spreads widened to a greater degree than their government-guaranteed counterparts.5 Sector allocation acted as a drag on Fund performance.

SECURITY SELECTION

As the market yields increased, securities offering varying degrees of protection against prepayments underperformed as call protection value declined. Security selection acted as a drag on Fund performance.

The Bloomberg US Mortgage-Backed Securities Index (BMBS) and the Bloomberg US Government Bond Index (BGI) returned -11.81% and -12.32%, respectively. The Blended Index is being used for comparison purposes because, although it is not the Fund’s broad-based securities market index, the Fund’s Adviser believes it more closely reflects the market sectors in which the Fund invests. The Fund’s broad-based securities market index is the BMBS. Please see the footnotes to the line graph under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the Blended Index.

The value of some mortgage-backed securities may be particularly sensitive to changes in prevailing interest rates, and although the securities are generally supported by some form of government or private insurance, there is no assurance that private guarantors or insurers will meet their obligations.

Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices.

Fund shares are not guaranteed by the U.S. government.

Federated Hermes Fund for U.S. Government Securities II

Annual Shareholder Report

FUND PERFORMANCE AND GROWTH OF A $10,000 INVESTMENT

The graph below illustrates the hypothetical investment of $10,0001 in the Federated Hermes Fund for U.S. Government Securities II (the “Fund”) from December 31, 2012 to December 31, 2022, compared to the Bloomberg US Mortgage-Backed Securities Index (BMBS),2 the Bloomberg US Government Bond Index (BGI)3 and a blended index comprised of 67% BMBS and 33% BGI (“Blended Index”).2,3 The Average Annual Total Return table below shows returns averaged over the stated periods.

GROWTH OF A $10,000 INVESTMENT

Growth of $10,000 as of December 31, 2022

Average Annual Total Returns for the Period Ended 12/31/2022

	1 Year	5 Years	10 Years
Fund	-12.55%	-0.84%	0.23%
BMBS	-11.81%	-0.53%	0.74%
BGI	-12.32%	-0.06%	0.60%
Blended Index	-11.97%	-0.37%	0.70%

The Fund’s performance assumes the reinvestment of all dividends and distributions. The BMBS, BGI and Blended Index have been adjusted to reflect reinvestment of dividends on securities in the indexes.

The BMBS covers agency mortgage-backed pass-through securities (both fixed-rate and hybrid ARM) issued by Ginnie Mae (GNMA), Fannie Mae (FNMA) and Freddie Mac (FHLMC). The index is not adjusted to reflect sales loads, expenses or other fees that the Securities and Exchange Commission (SEC) requires to be reflected in the Fund’s performance. The index is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.

The BGI is a market value weighted index of U.S. government and government agency securities (other than mortgage securities) with maturities of one year or more. The index is not adjusted to reflect sales loads, expenses or other fees that the SEC requires to be reflected in the Fund’s performance. The index is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.

Federated Hermes Fund for U.S. Government Securities II

Annual Shareholder Report

Portfolio of Investments Summary Table (unaudited)

At December 31, 2022, the Fund’s portfolio composition1 was as follows:

Type of Investments	Percentage of Total Net Assets
U.S. Government Agency Mortgage-Backed Securities	62.0%
U.S. Treasury Securities	14.9%
Non-Agency Mortgage-Backed Securities	6.5%
U.S. Government Agency Securities	5.4%
Asset-Backed Securities	4.8%
U.S. Government Agency Commercial Mortgage-Backed Securities	1.5%
Cash Equivalents2	4.6%
Other Assets and Liabilities—Net3	0.3%
TOTAL	100%

1	See the Fund’s Prospectus and Statement of Additional Information for a description of these investments.
2	Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements.
3	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Federated Hermes Fund for U.S. Government Securities II

Annual Shareholder Report

Portfolio of Investments

December 31, 2022

Principal Amount		Value
	MORTGAGE-BACKED SECURITIES—61.6%
	Federal Home Loan Mortgage Corporation—24.8%
$ 952,749	2.000%, 9/1/2050	$ 789,127
974,546	2.000%, 1/1/2052	803,526
6,227,977	2.000%, 1/1/2052	5,117,531
1,620,946	2.500%, 9/1/2050	1,387,086
918,980	2.500%, 10/1/2051	781,369
2,147,918	2.500%, 4/1/2052	1,843,734
284,987	3.000%, 11/1/2045	257,340
553,496	3.000%, 10/1/2046	497,725
366,482	3.000%, 10/1/2046	330,699
55,376	3.000%, 11/1/2046	49,796
638,564	3.500%, 7/1/2042	597,715
549,022	3.500%, 9/1/2043	513,444
154,003	3.500%, 5/1/2046	143,005
649,707	3.500%, 11/1/2047	602,091
76,375	4.000%, 1/1/2042	73,861
366,033	4.000%, 3/1/2046	352,424
124,161	4.000%, 11/1/2047	118,885
57,247	4.000%, 12/1/2047	54,778
110,625	4.000%, 4/1/2048	105,053
308,177	4.000%, 7/1/2048	293,829
2,716,349	4.000%, 3/1/2052	2,553,389
2,314,176	4.500%, 11/1/2037	2,300,948
138,028	4.500%, 8/1/2040	136,732
319,606	4.500%, 12/1/2040	316,675
404,603	4.500%, 4/1/2041	400,891
971,365	4.500%, 7/1/2052	941,012
193,363	5.000%, 1/1/2034	194,130
57,415	5.000%, 5/1/2034	57,643
42,911	5.000%, 4/1/2036	43,223
14,784	5.000%, 5/1/2036	14,883
9,775	5.000%, 6/1/2036	9,845
35,347	5.000%, 6/1/2040	35,721
324,901	5.500%, 5/1/2034	332,459
11,931	5.500%, 12/1/2035	12,267
72,887	5.500%, 2/1/2036	75,099
48,047	5.500%, 5/1/2036	49,443
3,177	5.500%, 5/1/2036	3,280
5,665	5.500%, 5/1/2036	5,836
3,497	5.500%, 6/1/2036	3,611
912	5.500%, 6/1/2036	941
46,801	5.500%, 11/1/2037	48,321
93,953	5.500%, 1/1/2038	96,983
3,809	6.000%, 1/1/2032	3,908
13,785	6.000%, 2/1/2032	14,193
53,365	6.000%, 4/1/2036	55,534
5,578	6.000%, 5/1/2036	5,804
133,000	6.000%, 6/1/2037	139,266
10,243	6.000%, 7/1/2037	10,707

Federated Hermes Fund for U.S. Government Securities II

Annual Shareholder Report

Principal Amount		Value
	MORTGAGE-BACKED SECURITIES—continued
	Federal Home Loan Mortgage Corporation—continued
$ 3,381	6.500%, 3/1/2029	$ 3,478
1,877	6.500%, 6/1/2029	1,934
1,346	6.500%, 7/1/2029	1,385
378	6.500%, 9/1/2029	386
870	7.000%, 12/1/2029	908
600	7.000%, 6/1/2030	623
130	7.000%, 11/1/2030	137
149,938	7.000%, 4/1/2032	159,614
14,403	7.500%, 12/1/2030	15,302
7,267	7.500%, 1/1/2031	7,715
1,348	8.500%, 5/1/2030	1,429
243	9.000%, 2/1/2025	248
	TOTAL	22,768,921
	Federal National Mortgage Association—22.3%
1,282,153	2.000%, 6/1/2050	1,055,549
2,254,187	2.000%, 7/1/2050	1,854,380
774,273	2.000%, 11/1/2050	636,946
950,602	2.000%, 7/1/2051	782,001
2,002,988	2.000%, 8/1/2051	1,646,482
939,754	2.000%, 2/1/2052	768,085
1,981,393	2.000%, 2/1/2052	1,626,254
408,089	3.000%, 10/1/2046	366,969
622,463	3.000%, 11/1/2046	559,742
142,337	3.000%, 11/1/2046	127,194
50,109	3.000%, 1/1/2047	45,029
453,096	3.000%, 1/1/2047	407,441
39,325	3.000%, 2/1/2047	35,449
593,255	3.000%, 2/1/2048	527,730
337,273	3.000%, 2/1/2048	300,338
870,356	3.000%, 5/1/2051	766,610
944,626	3.000%, 10/1/2051	831,289
1,627,140	3.000%, 2/1/2052	1,431,278
1,390,854	3.500%, 9/1/2042	1,300,769
600,751	3.500%, 8/1/2046	555,295
470,649	3.500%, 9/1/2046	439,686
576,382	3.500%, 12/1/2046	533,780
360,955	3.500%, 12/1/2047	335,855
265,533	3.500%, 1/1/2048	244,744
155,991	4.000%, 2/1/2041	150,949
136,665	4.000%, 2/1/2048	130,687
116,750	4.000%, 2/1/2048	111,643
296,342	4.000%, 2/1/2048	283,750
478,497	4.000%, 5/1/2052	449,791
128,573	4.500%, 10/1/2041	127,700
140,826	5.000%, 7/1/2034	141,423
16,091	5.000%, 11/1/2035	16,191
1,493,251	5.000%, 9/1/2052	1,474,180
75,077	5.500%, 9/1/2034	77,010
29,837	5.500%, 1/1/2036	30,709
40,622	5.500%, 4/1/2036	41,824
1,516	6.000%, 7/1/2029	1,543

Federated Hermes Fund for U.S. Government Securities II

Annual Shareholder Report

Principal Amount		Value
	MORTGAGE-BACKED SECURITIES—continued
	Federal National Mortgage Association—continued
$ 1,049	6.000%, 5/1/2031	$ 1,079
6,349	6.000%, 5/1/2036	6,616
98,181	6.000%, 7/1/2036	102,575
3,029	6.000%, 7/1/2036	3,157
27,403	6.000%, 9/1/2037	28,668
19,590	6.000%, 11/1/2037	20,529
12,995	6.000%, 12/1/2037	13,400
1,374	6.500%, 6/1/2029	1,421
110	6.500%, 6/1/2029	113
120	6.500%, 7/1/2029	124
166	6.500%, 7/1/2029	171
2,238	6.500%, 7/1/2029	2,301
222	6.500%, 7/1/2029	228
110	6.500%, 8/1/2029	112
3,270	6.500%, 9/1/2030	3,394
13,770	6.500%, 6/1/2031	14,361
10,450	6.500%, 4/1/2032	10,955
215	7.000%, 2/1/2024	216
1,329	7.000%, 10/1/2029	1,384
9,984	7.000%, 10/1/2029	10,476
3,458	7.000%, 11/1/2030	3,655
73,168	7.000%, 4/1/2032	77,847
449	7.500%, 8/1/2028	468
133	7.500%, 9/1/2028	139
2,896	7.500%, 2/1/2030	3,065
1,407	8.000%, 7/1/2030	1,499
	TOTAL	20,524,248
	Government National Mortgage Association—14.5%
1,947,558	2.000%, 6/20/2052	1,633,151
3,800,479	2.500%, 2/20/2051	3,270,732
638,495	3.000%, 11/20/2047	577,567
1,123,693	3.500%, 1/20/2048	1,041,109
528,024	3.500%, 2/20/2048	489,218
214,757	4.500%, 6/20/2039	212,444
168,025	4.500%, 10/15/2039	165,361
240,113	4.500%, 8/20/2040	237,673
995,665	4.500%, 10/20/2052	966,352
125,277	5.000%, 7/15/2034	125,048
995,489	5.000%, 9/20/2052	986,821
996,089	5.500%, 10/20/2052	1,001,634
7,889	6.000%, 4/15/2032	8,081
19,424	6.000%, 5/15/2032	20,064
69,384	6.000%, 4/15/2036	72,336
62,594	6.000%, 5/15/2036	65,245
19,263	6.000%, 7/20/2036	20,140
19,295	6.000%, 5/20/2037	20,230
110,877	6.000%, 7/20/2038	116,602
1,993,394	6.000%, 10/20/2052	2,026,338
414	6.500%, 12/15/2023	415
1,183	6.500%, 5/15/2024	1,186
1,475	6.500%, 6/15/2029	1,517

Federated Hermes Fund for U.S. Government Securities II

Annual Shareholder Report

Principal Amount			Value
		MORTGAGE-BACKED SECURITIES—continued
		Government National Mortgage Association—continued
$ 2,113		6.500%, 6/15/2031	$ 2,144
2,615		6.500%, 7/20/2031	2,721
2,489		6.500%, 8/20/2031	2,587
20,282		6.500%, 10/15/2031	21,111
23,565		6.500%, 12/15/2031	24,472
2,341		6.500%, 4/15/2032	2,434
16,126		6.500%, 5/15/2032	16,791
142,524		6.500%, 5/15/2032	148,688
296		7.500%, 10/15/2029	310
2,511		7.500%, 3/20/2030	2,629
798		8.000%, 4/15/2030	845
		TOTAL	13,283,996
		TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $59,399,512)	56,577,165
		U.S. TREASURIES—14.9%
		U.S. Treasury Bonds—4.7%
1,000,000		1.875%, 11/15/2051	636,245
400,000		2.250%, 5/15/2041	300,733
700,000		2.375%, 11/15/2049	509,259
1,200,000		2.875%, 8/15/2045	968,205
1,025,000		2.875%, 5/15/2049	828,264
650,000		3.125%, 8/15/2044	549,993
600,000		3.250%, 5/15/2042	526,513
		TOTAL	4,319,212
		U.S. Treasury Notes—10.2%
1,000,000		0.250%, 8/31/2025	899,420
2,500,000		0.500%, 10/31/2027	2,114,463
2,000,000		1.500%, 2/15/2025	1,882,197
750,000		1.875%, 2/28/2027	686,761
1,000,000		2.500%, 4/30/2024	971,450
250,000		2.500%, 2/28/2026	237,462
750,000		2.625%, 7/31/2029	690,644
1,500,000		2.750%, 5/31/2029	1,393,325
500,000		2.875%, 5/15/2032	460,926
		TOTAL	9,336,648
		TOTAL U.S. TREASURIES (IDENTIFIED COST $15,498,010)	13,655,860
		COLLATERALIZED MORTGAGE OBLIGATIONS—6.9%
		Government National Mortgage Association—0.4%
364,614		REMIC, Series 2015-47, Class AE, 2.900%, 11/16/2055	342,164
		Non-Agency Mortgage-Backed Securities—6.5%
58,896		Credit Suisse Mortgage Trust 2007-4, Class 4A2, 5.500%, 6/25/2037	6,130
76,221		Credit Suisse Mortgage Trust 2015-WIN1, Class A6, 3.500%, 12/25/2044	67,842
1,043,241		GS Mortgage-Backed Securities 2022-PJ3, Class A4, 2.500%, 8/25/2052	834,837
1,144,328	1	JP Morgan Mortgage Trust 2021-1, Class A11, 4.170% (30-DAY AVERAGE SOFR +0.650%), 6/25/2051	1,020,592
1,309,271		JP Morgan Mortgage Trust 2022-1, Class A2, 3.000%, 7/25/2052	1,095,083
1,413,032		JP Morgan Mortgage Trust 2022-2, Class A3, 2.500%, 8/25/2052	1,129,874
1,224,344		JP Morgan Mortgage Trust 2022-3, Class A3, 2.500%, 8/25/2052	978,997
1,114,177		Sequoia Mortgage Trust 2021-3, Class A1, 2.500%, 5/25/2051	896,477
		TOTAL	6,029,832
		TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $7,482,612)	6,371,996

Federated Hermes Fund for U.S. Government Securities II

Annual Shareholder Report

Principal Amount			Value
		GOVERNMENT AGENCIES—5.4%
		Federal Farm Credit System—1.2%
$1,000,000		5.750%, 12/7/2028	$ 1,082,169
		Tennessee Valley Authority Bonds—4.2%
1,700,000		2.875%, 2/1/2027	1,611,226
2,000,000		4.650%, 6/15/2035	1,979,686
250,000		4.875%, 1/15/2048	246,892
		TOTAL	3,837,804
		TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $4,997,619)	4,919,973
		ASSET-BACKED SECURITIES—4.8%
		Auto Receivables—1.0%
311,000		AmeriCredit Automobile Receivables Trust 2020-2, Class C, 1.480%, 2/18/2026	294,848
591,000		Chase Auto Owner Trust 2022-AA, Class A2, 4.210%, 10/27/2025	586,185
		TOTAL	881,033
		Single Family Rental Securities—0.9%
605,000		Progress Residential Trust 2022-SFR1, Class E1, 3.930%, 2/17/2041	473,193
409,212		Progress Residential Trust 2022-SFR4, Class B, 4.788%, 5/17/2041	367,806
		TOTAL	840,999
		Student Loans—2.9%
210,128		Navient Student Loan Trust 2020-FA, Class A, 1.220%, 7/15/2069	192,125
432,264		Navient Student Loan Trust 2020-GA, Class A, 1.170%, 9/16/2069	372,603
248,379		Navient Student Loan Trust 2020-HA, Class A, 1.310%, 1/15/2069	220,686
710,889		Navient Student Loan Trust 2021-FA, Class A, 1.110%, 2/18/2070	601,283
905,093		Navient Student Loan Trust 2021-GA, Class A, 1.580%, 4/15/2070	774,744
539,458	1	SMB Private Education Loan Trust 2020-BA, Class A1B, 5.417% (1-month USLIBOR +1.100%), 7/15/2053	528,037
		TOTAL	2,689,478
		TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $4,954,764)	4,411,510
		COMMERCIAL MORTGAGE-BACKED SECURITIES—1.5%
		Agency Commercial Mortgage-Backed Securities—1.5%
457,000		FHLMC REMIC, Series K151, Class A2, 3.800%, 10/25/2032	432,749
1,000,000		FHLMC REMIC, Series K750, Class A2, 3.000%, 9/25/2029	919,274
		TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $1,327,154)	1,352,023
		REPURCHASE AGREEMENT—4.6%
4,244,000		Interest in $1,350,000,000 joint repurchase agreement 4.30%, dated 12/30/2022 under which Bank of Montreal will repurchase securities provided as collateral for $1,350,645,000 on 1/3/2023. The securities provided as collateral at the end of the period held with BNY Mellon as tri-party agent, were U.S. Government Agency securities with various maturities to 5/20/2072 and the market value of those underlying securities was $1,379,047,631. (IDENTIFIED COST $4,244,000)	4,244,000
		TOTAL INVESTMENT IN SECURITIES—99.7% (IDENTIFIED COST $97,903,671)2	91,532,527
		OTHER ASSETS AND LIABILITIES - NET—0.3%3	307,938
		TOTAL NET ASSETS—100%	$91,840,465

1	Floating/variable note with current rate and current maturity or next reset date shown.
2	The cost of investments for federal tax purposes amounts to $97,870,537.
3	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Note: The categories of investments are shown as a percentage of total net assets at December 31, 2022.

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

Level 1—quoted prices in active markets for identical securities.

Federated Hermes Fund for U.S. Government Securities II

Annual Shareholder Report

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

As of December 31, 2022, all investments of the Fund utilized Level 2 inputs in valuing the Fund’s assets carried at fair value.

The following acronym(s) are used throughout this portfolio:
FHLMC	—Federal Home Loan Mortgage Corporation
LIBOR	—London Interbank Offered Rate
REMIC	—Real Estate Mortgage Investment Conduit
SOFR	—Secured Overnight Financing Rate

See Notes which are an integral part of the Financial Statements

Federated Hermes Fund for U.S. Government Securities II

Annual Shareholder Report

Financial Highlights

(For a Share Outstanding Throughout Each Period)

	Year Ended December 31,
	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$10.71	$11.16	$10.87	$10.52	$10.73
Income From Investment Operations:
Net investment income (loss)1	0.21	0.15	0.20	0.27	0.24
Net realized and unrealized gain (loss)	(1.54)	(0.38)	0.36	0.34	(0.20)
TOTAL FROM INVESTMENT OPERATIONS	(1.33)	(0.23)	0.56	0.61	0.04
Less Distributions:
Distributions from net investment income	(0.18)	(0.22)	(0.27)	(0.26)	(0.25)
Net Asset Value, End of Period	$9.20	$10.71	$11.16	$10.87	$10.52
Total Return2	(12.55)%	(2.04)%	5.21%	5.90%	0.45%
Ratios to Average Net Assets:
Net expenses3	0.78%	0.78%	0.78%	0.78%	0.78%
Net investment income	2.12%	1.34%	1.79%	2.49%	2.28%
Expense waiver/reimbursement4	0.13%	0.09%	0.08%	0.10%	0.08%
Supplemental Data:
Net assets, end of period (000 omitted)	$91,840	$114,594	$130,306	$116,935	$120,654
Portfolio turnover5	122%	166%	139%	65%	64%
Portfolio turnover (excluding purchases and sales from dollar-roll transactions)5	96%	31%	37%	61%	64%

1	Per share numbers have been calculated using the average shares method.
2	Based on net asset value. Total returns do not reflect any additional fees or expenses that may be imposed by separate accounts of insurance companies or in connection with any variable annuity or variable life insurance contract.
3	Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
4	This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/ reimbursement recorded by investment companies in which the Fund may invest.
5	Securities that mature are considered sales for purposes of this calculation.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Assets and Liabilities
December 31, 2022

Assets:
Investment in securities, at value including (identified cost $97,903,671)	$91,532,527
Income receivable	302,267
Receivable for shares sold	112,678
Total Assets	91,947,472
Liabilities:
Payable for shares redeemed	58,125
Payable to bank	2,514
Payable for investment adviser fee (Note 5)	2,258
Payable for administrative fee (Note 5)	395
Payable for portfolio accounting fees	26,996
Payable for printing and postage	11,574
Accrued expenses (Note 5)	5,145
Total Liabilities	107,007
Net assets for 9,983,260 shares outstanding	$91,840,465
Net Assets Consist of:
Paid-in capital	$103,209,818
Total distributable earnings (loss)	(11,369,353)
Total Net Assets	$91,840,465
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$91,840,465 ÷ 9,983,260 shares outstanding, no par value, unlimited shares authorized	$9.20

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Operations
Year Ended December 31, 2022

Investment Income:
Interest	$2,935,623
Net income on securities loaned (Note 2)	436
TOTAL INCOME	2,936,059
Expenses:
Investment adviser fee (Note 5)	607,156
Administrative fee (Note 5)	81,176
Custodian fees	18,314
Transfer agent fees	10,605
Directors’/Trustees’ fees (Note 5)	1,796
Auditing fees	26,250
Legal fees	9,145
Portfolio accounting fees	104,204
Printing and postage	40,525
Miscellaneous (Note 5)	22,141
TOTAL EXPENSES	921,312
Waiver of investment adviser fee (Note 5)	(127,051)
Net expenses	794,261
Net investment income	2,141,798
Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments	(6,371,670)
Net change in unrealized appreciation of investments	(9,883,732)
Net realized and unrealized gain (loss) on investments	(16,255,402)
Change in net assets resulting from operations	$(14,113,604)

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Changes in Net Assets

Year Ended December 31	2022	2021
Increase (Decrease) in Net Assets
Operations:
Net investment income	$2,141,798	$1,617,162
Net realized gain (loss)	(6,371,670)	320,515
Net change in unrealized appreciation/depreciation	(9,883,732)	(4,479,025)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS	(14,113,604)	(2,541,348)
Distributions to Shareholders	(1,919,363)	(2,510,504)
Share Transactions:
Proceeds from sale of shares	10,329,104	12,882,518
Net asset value of shares issued to shareholders in payment of distributions declared	1,919,363	2,510,504
Cost of shares redeemed	(18,969,052)	(26,052,654)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS	(6,720,585)	(10,659,632)
Change in net assets	(22,753,552)	(15,711,484)
Net Assets:
Beginning of period	114,594,017	130,305,501
End of period	$91,840,465	$114,594,017

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Notes to Financial Statements

December 31, 2022

1. ORGANIZATION

Federated Hermes Insurance Series (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of six portfolios. The financial statements included herein are only those of Federated Hermes Fund for U.S. Government Securities II (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. Fund shares are available exclusively as a funding vehicle for life insurance companies writing variable life insurance policies and variable annuity contracts. The investment objective of the Fund is to provide current income.

2. SIGNIFICANT ACCOUNTING POLICIES

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

◾

Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by Federated Investment Management Company (the “Adviser”).

◾

Shares of other mutual funds or non-exchange traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.

◾

Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and ask quotations.

◾

Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser.

◾

Fair Valuation Procedures

Annual Shareholder Report

Repurchase Agreements

Investment Income, Gains and Losses, Expenses and Distributions

Federal Taxes

When-Issued and Delayed-Delivery Transactions

The Fund may transact in To Be Announced Securities (TBAs). As with other delayed-delivery transactions, a seller agrees to issue TBAs at a future date. However, the seller does not specify the particular securities to be delivered. Instead, the Fund agrees to accept any security that meets specified terms such as issuer, interest rate and terms of underlying mortgages. The Fund records TBAs on the trade date utilizing information associated with the specified terms of the transaction as opposed to the specific mortgages. TBAs are marked to market daily and begin earning interest on the settlement date. Losses may occur due to the fact that the actual underlying mortgages received may be less favorable than those anticipated by the Fund.

Dollar-Roll Transactions

The Fund may engage in dollar-roll transactions in which the Fund sells mortgage-backed securities with a commitment to buy similar (same type, coupon and maturity), but not identical mortgage-backed securities on a future date. Both securities involved are TBA mortgage-backed securities. The Fund treats dollar-roll transactions as purchases and sales. Dollar-rolls are subject to interest rate risks and credit risks.

Securities Lending

The Fund participates in a securities lending program providing for the lending of government securities to qualified brokers. The term of the loans within the program is one year or less. The Fund normally receives cash collateral for securities loaned that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. Investments in money market funds may include funds with a “floating” NAV that can impose redemption fees and liquidity gates, impose certain operational impediments to investing cash collateral, and, if the investee fund’s NAV decreases, result in the Fund recognizing losses and being required to cover the decrease in the value of the cash collateral. Collateral is maintained at a minimum level of 100% of the market value of investments loaned, plus interest, if applicable. In accordance with the Fund’s securities lending agreement, the market value of securities on loan is

Annual Shareholder Report

determined each day at the close of business and any additional collateral required to cover the value of securities on loan is delivered to the Fund on the next business day. Earnings on collateral are allocated between the borrower of the security, the securities lending agent, as a fee for its services under the program and the Fund, according to agreed-upon rates. The Fund will not have the right to vote on securities while they are on loan. However, the Fund will attempt to terminate a loan in an effort to reacquire the securities in time to vote on matters that are deemed to be material by the Adviser. There can be no assurance that the Fund will have sufficient notice of such matters to be able to terminate the loan in time to vote thereon.

As of December 31, 2022, the Fund had no outstanding securities on loan.

Restricted Securities

Other

3. SHARES OF BENEFICIAL INTEREST

The following table summarizes share activity:

	Year Ended 12/31/2022	Year Ended 12/31/2021
Shares sold	1,043,424	1,185,531
Shares issued to shareholders in payment of distributions declared	191,744	233,971
Shares redeemed	(1,949,011)	(2,398,368)
NET CHANGE RESULTING FROM FUND SHARE TRANSACTIONS	(713,843)	(978,866)

4. FEDERAL TAX INFORMATION

The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended December 31, 2022 and 2021, was as follows:

	2022	2021
Ordinary income	$1,919,363	$2,510,504

As of December 31, 2022, the components of distributable earnings on a tax-basis were as follows:

Undistributed ordinary income	$2,190,160
Net unrealized depreciation	$(6,338,010)
Capital loss carryforwards	$(7,221,503)
TOTAL	$(11,369,353)

At December 31, 2022, the cost of investments for federal tax purposes was $97,870,537. The net unrealized depreciation of investments for federal tax purposes was $6,338,010. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $501,007 and net unrealized depreciation from investments for those securities having an excess of cost over value of $6,839,017. The difference between book-basis and tax-basis net unrealized depreciation is attributable to differing treatments for dollar-roll transactions.

As of December 31, 2022, the Fund had a capital loss carryforward of $7,221,503 which will reduce the Fund’s taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, thereby reducing the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, these net capital losses retain their character as either short-term or long-term and do not expire.

The following schedule summarizes the Fund’s capital loss carryforwards:

Short-Term	Long-Term	Total
$4,865,823	$2,355,680	$7,221,503

Annual Shareholder Report

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Administrative Fee

Administrative Fee	Average Daily Net Assets of the Investment Complex
0.100%	on assets up to $50 billion
0.075%	on assets over $50 billion

In addition, FAS may charge certain out-of-pocket expenses to the Fund.

Expense Limitation

The Adviser and certain of its affiliates (which may include FAS) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund (after the voluntary waivers and/or reimbursements) will not exceed 0.78% (the “Fee Limit”) up to but not including the later of (the “Termination Date”): (a) May 1, 2023; or (b) the date of the Fund’s next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.

Directors’/Trustees’ and Miscellaneous Fees

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended December 31, 2022, were as follows:

Purchases	$9,072,280
Sales	$8,668,781

7. LINE OF CREDIT

8. INTERFUND LENDING

Annual Shareholder Report

9. INDEMNIFICATIONS

10. OTHER MATTERS

11. Recent Accounting Pronouncements

Annual Shareholder Report

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Federated Hermes Insurance Series and the Shareholders of Federated Hermes Fund for U.S. Government Securities II:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of Federated Hermes Fund for U.S. Government Securities II (the Fund), a portfolio of Federated Hermes Insurance Series, including the portfolio of investments, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights 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 years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

We have served as the auditor for one or more of Federated Hermes’ investment companies since 2006.

Boston, Massachusetts
February 15, 2023

Annual Shareholder Report

Shareholder Expense Example (unaudited)

ACTUAL EXPENSES

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

	Beginning Account Value 7/1/2022	Ending Account Value 12/31/2022	Expenses Paid During Period1
Actual	$1,000	$960.30	$3.85
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,021.27	$3.97

Expenses are equal to the Fund’s annualized net expense ratio of 0.78%, multiplied by the average account value over the period, multiplied by 184/365 (to

reflect the one-half-year period). The expenses shown in the table do not include the charges and expenses imposed by the insurance company under the

variable insurance product contract. Please refer to the variable insurance product prospectus for a complete listing of these expenses.

Annual Shareholder Report

Board of Trustees and Trust Officers

Interested Trustees Background

Name Birth Date Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s)
J. Christopher Donahue* Birth Date: April 11, 1949 Trustee Indefinite Term Began serving: September 1993	Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of the Funds in the Federated Hermes Fund Family; President, Chief Executive Officer and Director, Federated Hermes, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd.
Thomas R. Donahue* Birth Date: October 20, 1958 Trustee Indefinite Term Began serving: May 2016	Principal Occupations: Director or Trustee of certain of the funds in the Federated Hermes Fund Family; Chief Financial Officer, Treasurer, Vice President and Assistant Secretary, Federated Hermes, Inc.; Chairman and Trustee, Federated Administrative Services; Chairman and Director, Federated Administrative Services, Inc.; Trustee and Treasurer, Federated Advisory Services Company; Director or Trustee and Treasurer, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, and Federated Investment Management Company; Director, MDTA LLC; Director, Executive Vice President and Assistant Secretary, Federated Securities Corp.; Director or Trustee and Chairman, Federated Services Company and Federated Shareholder Services Company; and Director and President, FII Holdings, Inc. Previous Positions: Director, Federated Hermes, Inc.; Assistant Secretary, Federated Investment Management Company, Federated Global Investment Management Company and Passport Research, LTD; Treasurer, Passport Research, LTD; Executive Vice President, Federated Securities Corp.; and Treasurer, FII Holdings, Inc.

INDEPENDENT Trustees Background

Name

Birth Date

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held, Previous Position(s) and Qualifications

John T. Collins

Birth Date: January 24, 1947

Trustee

Indefinite Term

Began serving: October 2013

Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Hermes Fund

Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired).

Other Directorships Held: Director, KLX Energy Services Holdings, Inc. (oilfield services); former Director of

KLX Corp. (aerospace).

Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions

throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm)

and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as

Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth

Israel Deaconess Medical Center (Harvard University Affiliate Hospital).

Annual Shareholder Report

Name Birth Date Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015	Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Hermes Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Equifax, Inc.; Lead Director, Member of the Audit and Nominating and Corporate Governance Committees, Haverty Furniture Companies, Inc.; formerly, Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President’s Cabinet and Business School Board of Visitors for the University of Alabama. Mr. Hough previously served on the Business School Board of Visitors for Wake Forest University, and he previously served as an Executive Committee member of the United States Golf Association.
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Adjunct Professor Emerita of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (natural gas). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as Associate General Secretary of the Diocese of Pittsburgh, a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green was appointed by the Supreme Court of Pennsylvania to serve on the Supreme Court’s Board of Continuing Judicial Education and the Supreme Court’s Appellate Court Procedural Rules Committee. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); Director, Catholic Charities, Pittsburgh; and Director CNX Resources Corporation (natural gas). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, St. Vincent College; Director and Chair, North Catholic High School, Inc.; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; and Director and Vice Chair, Saint Francis University.
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber); and Director, The Golisano Children’s Museum of Naples, Florida.
Madelyn A. Reilly Birth Date: February 2, 1956 Trustee Indefinite Term Began serving: November 2020	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors, Duquesne University (Retired). Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors and Director of Risk Management and Associate General Counsel, Duquesne University. Prior to her work at Duquesne University, Ms. Reilly served as Assistant General Counsel of Compliance and Enterprise Risk as well as Senior Counsel of Environment, Health and Safety, PPG Industries. Ms. Reilly currently serves as a member of the Board of Directors of UPMC Mercy Hospital.
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CONSOL Energy Inc. (now split into two separate publicly traded companies known as CONSOL Energy Inc. and CNX Resources Corp.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and CNX Gas Company; and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm).

Annual Shareholder Report

Name

Birth Date

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held, Previous Position(s) and Qualifications

John S. Walsh

Birth Date:

November 28, 1957

Trustee

Indefinite Term

Began serving: January 1999

Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc.

(manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of

portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc.

Other Directorships Held: None.

Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career.

Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors).

OFFICERS

Name Birth Date Address Positions Held with Trust Date Service Began	Principal Occupation(s) for Past Five Years and Previous Position(s)
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013	Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Hermes, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc.
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: January 2005	Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, Inc. in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc.
John B. Fisher Birth Date: May 16, 1956 PRESIDENT Officer since: November 2004	Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Hermes Fund Family; Director or Trustee of certain of the Funds in the Federated Hermes Fund Family; Director and Vice President, Federated Hermes, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, and Federated MDTA LLC; Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and CEO of Passport Research, Ltd.; Director and President, Technology, Federated Services Company.
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015	Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement.
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: November 2002	Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Hermes Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments.
Robert J. Ostrowski Birth Date: April 26, 1963 Chief Investment Officer Officer since: May 2004	Principal Occupations: Robert J. Ostrowski joined Federated Hermes, Inc. in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated Hermes’ taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund’s Adviser in 2009 and served as a Senior Vice President of the Fund’s Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University.

Annual Shareholder Report

Name

Birth Date

Address

Positions Held with Trust

Date Service Began

Principal Occupation(s) for Past Five Years

and Previous Position(s)

Deborah A. Cunningham

Birth Date:

September 15, 1959

Chief Investment Officer

Officer since: June 2012

Principal Occupations: Deborah A. Cunningham was named Chief Investment Officer of Federated Hermes’ money market

products in 2004. She joined Federated Hermes in 1981 and has been a Senior Portfolio Manager since 1997

and an Executive Vice President of the Fund’s Adviser since 2009. Ms. Cunningham has received the Chartered Financial

Analyst designation and holds an M.S.B.A. in Finance from Robert Morris College.

Annual Shareholder Report

Evaluation and Approval of Advisory Contract–May 2022

Federated Hermes Fund for U.S. Government Securities II (the “Fund”)

Information Received and Review Process

The Board’s consideration of the Contract included review of materials and information covering the following matters, among others: the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates; Federated Hermes’ business and operations; the Adviser’s investment philosophy, personnel and processes; the Fund’s investment objectives and strategies; the Fund’s short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, and relative to the Fund’s particular investment program and a group of its peer funds and/or its benchmark, as appropriate); the Fund’s fees and expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to a group of its peer funds), with due regard for contractual or voluntary expense limitations (if any); the financial condition of Federated Hermes; the Adviser’s profitability with respect to the Fund; distribution and sales activity for the Fund; and the use and allocation of brokerage commissions derived from trading the Fund’s portfolio securities (if any).

Annual Shareholder Report

Nature, Extent and Quality of Services

In addition, the Board considered the financial resources and overall reputation of Federated Hermes and its willingness to consider and make investments in personnel, infrastructure, technology, cybersecurity, business continuity planning and operational enhancements that are designed to benefit the Federated Hermes Funds. The Board noted the significant acquisition of Hermes Fund Managers Limited by Federated Hermes, which has deepened the organization’s investment management expertise and capabilities and expanded the investment process for all of the Federated Hermes Funds to have access to analytical resources related to environmental, social and governance (“ESG”) factors and issuer engagement on ESG matters. The Board considered Federated Hermes’ oversight of the securities lending program for the Federated Hermes Funds that engage in securities lending and noted the income earned by the Federated Hermes Funds that participate in such program. In addition, the Board considered the quality of Federated Hermes’ communications with the Board and responsiveness to Board inquiries and requests made from time to time with respect to the Fund and other Federated Hermes Funds. In this regard, the Board took into account Federated Hermes’ communications with the Board in light of the pandemic. The Board also considered that Federated Hermes is responsible for providing the Federated Hermes Funds’ officers.

Annual Shareholder Report

Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided by the Adviser to the Fund.

Fund Investment Performance

The Fund’s performance fell below the median of the Performance Peer Group for the one-year, three-year and five-year periods ended December 31, 2021. The Board discussed the Fund’s performance with the Adviser and recognized the efforts being taken by the Adviser in the context of other factors considered relevant by the Board.

Based on these considerations, the Board concluded that it had continued confidence in the Adviser’s overall capabilities to manage the Fund.

Fund Expenses

Annual Shareholder Report

The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund’s contractual advisory fee rate and other expenses relative to its Expense Peer Group. In this regard, the Board noted that the contractual advisory fee rate was above the median of the Expense Peer Group, but the Board noted the applicable waivers and reimbursements, and that the overall expense structure of the Fund remained competitive in the context of other factors considered by the Board.

Profitability

Economies of Scale

Annual Shareholder Report

areas are extensive and are designed to provide enhanced services to the Federated Hermes Funds and their shareholders. The Board considered that the benefits of these investments are likely to be shared with the family of Federated Hermes Funds as a whole. In addition, the Board considered that fee waivers and expense reimbursements are another means for potential economies of scale to be shared with shareholders and can provide protection from an increase in expenses if a Federated Hermes Fund’s assets decline. The Board considered that, in order for the Federated Hermes Funds to remain competitive in the marketplace, Federated Hermes has frequently waived fees and/or reimbursed expenses for the Federated Hermes Funds and has disclosed to shareholders and/or reported to the Board its intention to do so (or continue to do so) in the future. The Board also considered Federated Hermes’ reductions in contractual management fees for certain Federated Hermes Funds during the prior year, including in response to the CCO’s recommendations in the prior year’s CCO Fee Evaluation Report, which have resulted in benefits being realized by shareholders.

Other Benefits

Conclusions

Annual Shareholder Report

Liquidity Risk Management Program–
Annual Evaluation of Adequacy and Effectiveness

In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Federated Hermes Insurance Series (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) for Federated Hermes Fund for U.S. Government Securities II (the “Fund” and, collectively with the other non-money market open-end funds advised by Federated Hermes, the “Federated Hermes Funds”). The Program seeks to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Board of Trustees of the Trust (the “Board”) has approved the designation of each Federated Hermes Fund’s investment adviser as the administrator for the Program (the “Administrator”) with respect to that Fund. The Administrator, in turn, has delegated day-to-day responsibility for the administration of the Program to multiple Liquidity Risk Management Committees, which are comprised of representatives from certain divisions within Federated Hermes.

◾ confirmation that it was not necessary for the Fund to utilize, and the Fund did not utilize, alternative funding sources during the Period;

◾ the fact that the Fund invested no more than 15% of its assets in illiquid investments during the Period and the procedures for monitoring this limit;

◾ the fact that there were no liquidity events during the Period, that materially affected the Fund’s liquidity risk;

Annual Shareholder Report

Voting Proxies on Fund Portfolio Securities

Quarterly Portfolio Schedule

Annual Shareholder Report

Federated Hermes Fund for U.S. Government Securities II

Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561

Federated Securities Corp., Distributor

CUSIP 313916207

G00846-01 (2/23)

Item 2.

Code of Ethics

(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics (the "Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers") that applies to the registrant's Principal Executive Officer and Principal Financial Officer; the registrant's Principal Financial Officer also serves as the Principal Accounting Officer.

(c) There was no amendment to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.

(d) There was no waiver granted, either actual or implicit, from a provision to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.

(e) Not Applicable

(f)(3) The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.

Item 3. Audit Committee Financial Expert

The registrant's Board has determined that each of the following members of the Board's Audit Committee is an “audit committee financial expert,” and is "independent," for purposes of this Item: G. Thomas Hough and Thomas M. O'Neill.

Item 4.

Principal Accountant Fees and Services

(a) Audit Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2022 – $190,417

Fiscal year ended 2021 - $181,350

(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2022 - $0

Fiscal year ended 2021 - $0

Amount requiring approval of the registrant’s Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.

Fiscal year ended 2022 - $0

Fiscal year ended 2021 - $0

Amount requiring approval of the registrant’s Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.

(d) All Other Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2022 - $0

Fiscal year ended 2021 - $0

Amount requiring approval of the registrant’s Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.

(e)(1) Audit Committee Policies regarding Pre-approval of Services.

The Audit Committee is required to pre-approve audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor’s independence. Unless a type of service to be provided by the independent auditor has received general pre-approval, it will require specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.

Certain services have the general pre-approval of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate to management its responsibilities to pre-approve services performed by the independent auditor.

The Audit Committee has delegated pre-approval authority to its chairman (the “Chairman”) for services that do not exceed a specified dollar threshold. The Chairman or Chief Audit Executive will report any such pre-approval decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with such pre-approval authority when the Chairman is unavailable.

AUDIT SERVICES

The annual audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee will approve, if necessary, any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.

In addition to the annual audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other audit services, which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain audit services; with limited exception, all other audit services must be specifically pre-approved by the Audit Committee.

AUDIT-RELATED SERVICES

Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the RIC’s financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of audit-related services does not impair the independence of the auditor, and has pre-approved certain audit-related services; all other audit-related services must be specifically pre-approved by the Audit Committee.

TAX SERVICES

The Audit Committee believes that the independent auditor can provide tax services to the RIC such as tax compliance, tax planning and tax advice without impairing the auditor’s independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved certain tax services; with limited exception, all tax services involving large and complex transactions must be specifically pre-approved by the Audit Committee.

ALL OTHER SERVICES

With respect to the provision of permissible services other than audit, review or attest services the pre-approval requirement is waived if:

(1)

With respect to such services rendered to the Funds, the aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues paid by the audit client to its accountant during the fiscal year in which the services are provided; and,

(2)

With respect to such services rendered to the Fund’s investment adviser ( the “Adviser”)and any entity controlling, controlled by to under common control with the Adviser such as affiliated non-U.S. and U.S. funds not under the Audit Committee’s purview and which do not fall within a category of service which has been determined by the Audit Committee not to have a direct impact on the operations or financial reporting of the RIC, the aggregate amount of all services provided constitutes no more than five percent of the total amount of revenues paid to the RIC’s auditor by the RIC, its Adviser and any entity controlling, controlled by, or under common control with the Adviser during the fiscal year in which the services are provided; and

(3)

Such services were not recognized by the issuer or RIC at the time of the engagement to be non-audit services; and

(4)

Such services are promptly brought to the attention of the Audit Committee and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee who are members of the Board of Directors to whom authority to grant such approvals has been delegated by the Audit Committee.

The Audit Committee may grant general pre-approval to those permissible non-audit services which qualify for pre-approval and which it believes are routine and recurring services, and would not impair the independence of the auditor.

The Securities and Exchange Commission’s (the “SEC”) rules and relevant guidance should be consulted to determine the precise definitions of these services and applicability of exceptions to certain of the prohibitions.

PRE-APPROVAL FEE LEVELS

Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee.

PROCEDURES

Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by the Fund’s Principal Accounting Officer and/or the Chief Audit Executive of Federated Hermes, Inc., only after those individuals have determined that the request or application is consistent with the SEC’s rules on auditor independence.

(e)(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:

4(b)

Fiscal year ended 2022 – 0%

Fiscal year ended 2021 - 0%

Percentage of services provided to the registrant’s Adviser and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that were approved by the registrant’s Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.

4(c)

Fiscal year ended 2022 – 0%

Fiscal year ended 2021 – 0%

4(d)

Fiscal year ended 2022 – 0%

Fiscal year ended 2021 – 0%

(f)

(g)

Non-Audit Fees billed to the registrant, the registrant’s Adviser, and certain entities controlling, controlled by or under common control with the Adviser:

Fiscal year ended 2022 - $28,340

Fiscal year ended 2021 - $19,249

(h)

The registrant’s Audit Committee has considered that the provision of non-audit services that were rendered to the registrant’s 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 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.

Item 5.

Audit Committee of Listed Registrants

Not Applicable

Item 6.

Schedule of Investments

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.

(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not Applicable

Item 8.

Portfolio Managers of Closed-End Management Investment Companies

Not Applicable

Item 9.

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not Applicable

Item 10.

Submission of Matters to a Vote of Security Holders

No Changes to Report

Item 11.

Controls and Procedures

(a) The registrant’s President and Treasurer have concluded that the

registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12.

Disclosure of Securities Lending Activities for Closed-End Management Investment Companies

Not Applicable

Item 13.

Exhibits

(a)(1) Code of Ethics- Not Applicable to this Report.

(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.

(a)(3) Not Applicable.

(b) Certifications pursuant to 18 U.S.C. Section 1350.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant Federated Hermes Insurance Series

By /S/ Lori A. Hensler

Lori A. Hensler, Principal Financial Officer

Date February 15, 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/ John B. Fisher

John B. Fisher, Principal Executive Officer

Date February 15, 2023

By /S/ Lori A. Hensler

Lori A. Hensler, Principal Financial Officer

Date February 15, 2023